[Federal Register Volume 76, Number 221 (Wednesday, November 16, 2011)]
[Notices]
[Pages 70957-70960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29621]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-898]


Chlorinated Isocyanurates From the People's Republic of China: 
Final Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on chlorinated 
isocyanurates (chlorinated isos) from the People's Republic of China 
(PRC). The period of review (POR) for this administrative review is 
June 1, 2009, through May 31, 2010. We invited interested parties to 
comment on our Preliminary Results.\1\ Based on our analysis of the 
comments received, we have made changes to the margin calculations. 
Therefore, the final results differ from the preliminary results. The 
final dumping margin for this review is listed in the ``Final Results 
of Review'' section below.
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    \1\ See Chlorinated Isocyanurates From the People's Republic of 
China: Preliminary Results of Antidumping Duty Administrative 
Review, 76 FR 40689 (July 11, 2011) (Preliminary Results).

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DATES: Effective Date: November 16, 2011.

FOR FURTHER INFORMATION CONTACT: Emily Halle, AD/CVD Operations, Office 
6, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-0176.

SUPPLEMENTARY INFORMATION:

Background

    On July 11, 2011, the Department published its Preliminary Results. 
On August 1, 2011, Clearon Corporation and Occidental Chemical 
Corporation (Petitioners) timely filed surrogate value information.\2\ 
The Department notified parties that it had clarified its separate rate 
methodology for non-reviewed companies on August 30, 2011.\3\ On 
September 9, 2011, Hebei Jiheng Chemical Company, Ltd. (Jiheng), 
Juancheng Kangtai Chemical Co., Ltd. (Kangtai), Zhucheng Taisheng 
Chemical Co., Ltd. (Zhucheng), and Petitioners filed case briefs. 
Kangtai also filed new factual information on September 9, 2011,\4\ 
which the Department rejected as untimely on September 16, 2011.\5\ On

[[Page 70958]]

September 15, 2011, rebuttal case brief deadlines were extended to 
September 19, 2011. Arch Chemicals (China) Co., Ltd. (Arch China), 
Zhucheng, Kangtai and Petitioners timely filed rebuttal briefs on 
September 19, 2011. On August 10, 2011, and September 19, 2011, the 
Department received requests for a public hearing from Zhucheng and 
Kangtai, respectively.\6\ The Department conducted a public hearing on 
October 14, 2011.\7\
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    \2\ See Letter from Petitioners regarding ``Chlorinated 
Isocyanurates from The People's Republic of China: Fifth 
Administrative Review: Information Regarding Surrogate Values for 
Factors of Production,'' dated August 1, 2011 (Petitioners Surrogate 
Value Letter).
    \3\ See Memorandum to Barbara E. Tillman, Director, AD/CVD 
Operations, Office 6, regarding ``Rate for Non-Selected Companies,'' 
dated August 30, 2011 (Separate Rate Memorandum).
    \4\ See Letter from Juancheng Kangtai Chemical Co., Ltd. 
regarding ``Certain Chlorinated Isocyanurates from the People's 
Republic of China Rebuttal of New Facts by Juancheng Kangtai,'' 
dated September 9, 2011.
    \5\ See Letter to Juancheng Kangtai Chemical Co., Ltd. regarding 
``2009-2010 Administrative Review of the Antidumping Duty Order on 
Chlorinated Isocyanurates from the People's Republic of China,'' 
dated September 16, 2011.
    \6\ See Letter from Zhucheng Taisheng Chemical Co., Ltd., 
regarding ``Request for Hearing: Chlorinated Isocyanurates from the 
People's Republic of China, June 1, 2009-May 31, 2010 Period of 
Review,'' dated August 10, 2011. See also Letter from Juancheng 
Kangtai Chemical Co., Ltd., regarding ``Certain Chlorinated 
Isocyanurates from the People's Republic of China Request for 
Hearing,'' dated September 19, 2011.
    \7\ See Public Hearing in the matter ``Chlorinated Isocyanurates 
from the People's Republic of China,'' dated October 14, 2011.
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Scope of the Order

    The products covered by the order are chlorinated isocyanurates 
(chlorinated isos), which are derivatives of cyanuric acid, described 
as chlorinated s-triazine triones. There are three primary chemical 
compositions of chlorinated isos: (1) Trichloroisocyanuric acid 
(Cl3(NCO)3), (2) sodium dichloroisocyanurate 
(dihydrate) (NaCl2(NCO)3(2H2O), and 
(3) sodium dichloroisocyanurate (anhydrous) 
(NaCl2(NCO)3). Chlorinated isos are available in 
powder, granular, and tableted forms. The order covers all chlorinated 
isos.
    Chlorinated isos are currently classifiable under subheadings 
2933.69.6015, 2933.69.6021, 2933.69.6050, 3808.40.50, 3808.50.40 and 
3808.94.5000 of the Harmonized Tariff Schedule of the United States 
(HTSUS). The tariff classification 2933.69.6015 covers sodium 
dichloroisocyanurates (anhydrous and dihydrate forms) and 
trichloroisocyanuric acid. The tariff classifications 2933.69.6021 and 
2933.69.6050 represent basket categories that include chlorinated isos 
and other compounds including an unfused triazine ring. Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of the order is dispositive.

Analysis of Comments Received

    All issues raised in the post-preliminary comments by parties in 
this review are addressed in the memorandum from Christian Marsh, 
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Assistant Secretary for Import 
Administration, entitled ``Issues and Decision Memorandum for the Final 
Results of the Administrative Review of Chlorinated Isocyanurates from 
the People's Republic of China,'' dated concurrently with this notice 
(Decision Memorandum), which is hereby adopted by this notice. A list 
of the issues that parties raised and to which we responded in the 
Decision Memorandum is attached to this notice as an appendix. Parties 
can find a complete discussion of all issues raised in this review and 
the corresponding recommendations in the public memorandum, which is on 
file electronically via Import Administration's Antidumping and 
Countervailing Duty Centralized Electronic Services System (IA ACCESS). 
Access to IA ACCESS is available in the Central Records Unit (CRU), 
main Commerce Building, Room 7046, and is also accessible on the Web at 
http://ia.ita.doc.gov/frn. The paper copy and electronic versions of 
the Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    The Department has made several programming adjustments.\8\ First, 
we corrected the constructed entered value amount to include materials 
for which Jiheng was reimbursed by the U.S. customer and materials 
provided free of charge. Next, by applying the inland freight surrogate 
value, measured in U.S. dollars per metric ton per kilometer, to 
certain packing and packaging materials that were reported in 
kilograms, we overstated the values for these materials. We adjusted 
the inland freight value by dividing it by 1,000 and applying this 
adjusted value to all packing and packaging materials that were 
reported in kilograms. Finally, in the Petitioners Surrogate Value 
Letter, Petitioners provided two additional financial statements to 
value chlorine and hydrogen factors of production along with the 
financial statements used in the Preliminary Results.\9\ No parties 
objected to the use of the cholorine and hydrogen values in these 
additional financial statements. After reviewing these financial 
statements, the Department adjusted the surrogate values for chlorine 
and hydrogen to include the sales values of chlorine and hydrogen 
reported in these financial statements. See Decision Memorandum.
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    \8\ See Memorandum to Mark Hoadley, Program Manager, AD/CVD 
Operations, Office 6, regarding ``Analysis for the Final Results of 
the 2009-2010 Administrative Review of the Antidumping Duty Order on 
Chlorinated Isocyanurates from the People's Republic of China: Hebei 
Jiheng Chemical Company Ltd.,'' dated November 8, 2011 (Analysis 
Memorandum) for a detailed discussion of these changes.
    \9\ See Preliminary Results, 76 FR at 40695.
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Separate Rates

    In proceedings involving non-market economy (NME) countries, the 
Department begins with a rebuttable presumption that all companies 
within the country are subject to government control and, thus, should 
be assigned a single antidumping duty deposit rate. It is the 
Department's policy to assign all exporters of subject merchandise in 
an NME country this single rate unless an exporter can demonstrate that 
it is sufficiently independent so as to be eligible for a separate 
rate.\10\ In the Preliminary Results, the Department found that Arch 
China, Kangtai, and Zhucheng demonstrated their eligibility for 
separate rate status.\11\
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    \10\ See Final Determination of Sales at Less Than Fair Value: 
Sparklers From the People's Republic of China, 56 FR 20588 (May 6, 
1991), as further developed in Notice of Final Determination of 
Sales at Less Than Fair Value: Silicon Carbide From the People's 
Republic of China, 59 FR 22585 (May 2, 1994).
    \11\ See Preliminary Results, 76 FR at 40693.
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    For these final results, we continue to find that the evidence 
placed on the record of this review by Arch China, Kangtai and Zhucheng 
demonstrates both a de jure and de facto absence of government control, 
with respect to their exports of the merchandise under review, and, 
thus, these companies are eligible for separate rate status.

Margin for the Separate Rate Companies

    The rate for the individually examined respondent, Jiheng, 
continues to be de minimis and, accordingly, the Department must 
determine a reasonable alternative method for assigning a rate to Arch 
China, Kangtai and Zhucheng. In the Separate Rate Memorandum, the 
Department announced that the method used to determine the rate for the 
non-selected companies in the Preliminary Results was not consistent 
with current practice, as recently clarified.\12\ In previous cases, 
the Department has determined that a ``reasonable method'' to use when, 
as here, the rates of the mandatory respondents are zero and de 
minimis, is to apply to those companies not selected for individual 
review (but

[[Page 70959]]

eligible for a separate rate in NME cases) the average of the most 
recently determined rates that are not zero, de minimis or based 
entirely on facts available (which may be from a prior administrative 
review or a new shipper review).\13\ However, if any such non-selected 
company had its own calculated rate that is contemporaneous with or 
more recent than such prior determined rates, the Department has 
applied such an individual rate to the non-selected company in the 
review in question, including when that rate is zero or de minimis.\14\
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    \12\ See Administrative Review of Certain Frozen Warmwater 
Shrimp From the People's Republic of China: Final Results and 
Partial Rescission of Antidumping Duty Administrative Review, 76 FR 
51940, 51942 (August 19, 2011).
    \13\ See id.; see also Amanda Foods (Vietnam) Ltd. v. United 
States, Slip Op. 2011-39, 2011 Ct. Intl. Trade LEXIS 37 at 12 (CIT 
April 14, 2011).
    \14\ Certain Frozen Fish Fillets From the Socialist Republic of 
Vietnam: Notice of Preliminary Results of the New Shipper Review and 
Fourth Antidumping Duty Administrative Review and Partial Rescission 
of the Fourth Administrative Review, 73 FR 52015 (September 8, 2008) 
(changed in the final results as the final calculated rate for the 
mandatory respondent was above de minimis, which remained unchanged 
in the amended final results). See also Certain Frozen Warmwater 
Shrimp From the Socialist Republic of Vietnam: Final Results and 
Final Partial Rescission of Antidumping Duty Administrative Review, 
74 FR 47191, 47195 (September 15, 2009) and accompanying Issues and 
Decision Memorandum.
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    The most recently published rate on the record of these proceedings 
for other companies that is not zero, de minimis or based entirely on 
facts available is the 2.66 percent rate calculated for Jiheng in the 
2008-2009 administrative review.\15\ Therefore, the Department is now 
assigning Arch China, Kangtai, and Zhucheng a weighted-average margin 
of 2.66 percent as their separate rate.\16\
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    \15\ See Chlorinated Isocyanurates From the People's Republic of 
China: Final Results of 2008-2009 Antidumping Administrative Review, 
75 FR 70212, 70213 (November 17, 2010).
    \16\ See Decision Memorandum at Comments 2, 3 and 4 (which 
further explain the use of this rate as the separate rate).
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Final Results of Review

    We determine that the following weighted-average dumping margins 
exist for the period June 1, 2009, through May 31, 2010.

------------------------------------------------------------------------
                                                       Weighted-average
                      Exporter                        margin percentage
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Hebei Jiheng Chemical Co., Ltd.....................             \1\ 0.03
Juancheng Kangtai Chemical Co., Ltd................                 2.66
Arch Chemicals (China) Co., Ltd....................                 2.66
Zhucheng Taisheng Chemical Co., Ltd................                 2.66
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\1\ (de minimis).

Assessment Rates

    Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b), 
the Department will determine, and U.S. Customs and Border Protection 
(CBP) shall assess, antidumping duties on all appropriate entries of 
subject merchandise in accordance with the final results of this 
review. The Department will direct CBP to assess importer-specific 
assessment rates based on the resulting per-unit (i.e., per metric ton) 
amount (for Jiheng) or ad valorem rate (for separate rate respondents) 
on each entry of the subject merchandise during the POR. The Department 
intends to issue assessment instructions directly to CBP 15 days after 
the publication of this notice.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(2)(C) of the Act: (1) For the exporter's 
listed above, the cash deposit rate will be the rate established in the 
final results of this review (except, if the rate is zero or de 
minimis, i.e., less than 0.5 percent, a zero cash deposit rate will be 
required for that company); (2) for previously investigated or reviewed 
PRC and non-PRC exporters not listed above that have separate rates, 
the cash deposit rate will continue to be the exporter-specific rate 
published for the most recent period; (3) for all PRC exporters of 
subject merchandise that have not been found to be entitled to a 
separate rate, the cash deposit rate will be the PRC-wide rate of 
285.63 percent; \17\ and (4) for all non-PRC exporters of subject 
merchandise which have not received their own rate, the cash deposit 
rate will be the rate applicable to the PRC exporter(s) that supplied 
that non-PRC exporter. These deposit requirements, when imposed, shall 
remain in effect until further notice.
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    \17\ For an explanation on the derivation of the PRC-wide rate, 
see Notice of Final Determination of Sales at Less Than Fair Value: 
Chlorinated Isocyanurates From the People's Republic of China, 70 FR 
24502, 24505 (May 10, 2005).
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Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3), which 
continues to govern business proprietary information in this segment of 
the proceeding. Timely written notification of the return/destruction 
of APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with regulations and terms of an APO is a 
violation which is subject to sanction.

Disclosure

    In accordance with 19 CFR 351.224(b), we will disclose the 
calculations performed for these final results to parties in this 
proceeding within five days of the date of publication of this notice.
    We are issuing and publishing these final results of review in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: November 8, 2011.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Issues and Decision Memorandum

    Comment 1: Respondent Selection.
    Comment 2: Kangtai's New Shipper Review Rate is not 
Representative of its Current Behavior.

[[Page 70960]]

    Comment 3: Jiheng's Prior Administrative Review Rate is not 
Representative of the Current Behavior of Arch China and Zhucheng.
    Comment 4: Exclusion of De Minimis Rates from Consideration as 
Separate Rates for Non-Reviewed Companies.
    Comment 5: Use of Multiple Separate Rates.
    Comment 6: Calculation of Entered Value.
    Comment 7: Calculation of Inland Freight.
    Comment 8: Per-Unit Assessment Rate in Draft Liquidation 
Instructions.
    Comment 9: Zeroing Methodology in Reviews.
    Comment 10: Kangtai's New Factual Submission Should Not Have 
Been Rejected.

[FR Doc. 2011-29621 Filed 11-15-11; 8:45 am]
BILLING CODE 3510-DS-P