[Federal Register Volume 79, Number 79 (Thursday, April 24, 2014)]
[Notices]
[Pages 22800-22802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09365]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-870]


Chlorinated Isocyanurates From Japan: Preliminary Determination 
of Sales at Less Than Fair Value and Postponement of Final 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') preliminarily 
determines that chlorinated isocyanurates (``isos'') from Japan is 
being, or is likely to be, sold in the United States at less than fair 
value (``LTFV''), as provided in section 733(b) of the Tariff Act of 
1930, as amended (``the Act''). The period of investigation is July 1, 
2012, through June 30, 2013. The estimated weighted-average dumping 
margins of sales at LTFV are listed in the ``Preliminary 
Determination'' section of this notice. Interested Parties are invited 
to comment on this preliminary determination. Pursuant to a request 
from Shikoku Chemicals Corporation, we are postponing for 60 days the 
final determination and extending provisional measures from a four-
month period to not more than six months. Accordingly, we intend to 
make our final determination not later than 135 days after publication 
of this preliminary determination in the Federal Register.

DATES: Effective Date: April 24, 2014.

FOR FURTHER INFORMATION CONTACT: Julia Hancock or Jerry Huang, AD/CVD 
Operations, Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
1394 or (202) 482-4047, respectively.

SUPPLEMENTARY INFORMATION: 
    On September 25, 2013, the Department initiated the antidumping 
duty investigation on isos from Japan.\1\ Based on a timely request 
from Petitioners,\2\ on February 10, 2014, the Department postponed the 
deadline for the preliminary determination by 50 days to April 14, 
2014, pursuant to section 733(c)(1)(A) of the Act and 19 CFR 
351.205(e).\3\ \4\
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    \1\ See Chlorinated Isocyanurates From Japan: Initiation of 
Antidumping Duty Investigation, 78 FR 58997 (September 25, 2013).
    \2\ Petitioners are Clearon Corp. and Occidental Corporation.
    \3\ See Chlorinated Isocyanurates From Japan: Postponement of 
Preliminary Determinations of Antidumping Duty Investigation, 79 FR 
7643 (February 10, 2014).
    \4\ As explained in the memorandum from the Assistant Secretary 
for Enforcement and Compliance, the Department exercised its 
discretion to toll deadlines for the duration of the closure of the 
Federal Government from October 1, through October 16, 2013. See 
Memorandum for the Record from Paul Piquado, Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (October 18, 2013). The tolled deadline for 
the preliminary determination of this investigation was February 21, 
2014.
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Scope of the Investigation

    The products covered by this investigation are chlorinated 
isocyanurates. Chlorinated isocyanurates are derivatives of cyanuric 
acid, described as chlorinated s-triazine triones. There are three 
primary chemical compositions of chlorinated isocyanurates: (1) 
Trichloroisocyanuric acid (``TCCA'') (Cl3(NCO)3), 
(2) sodium dichloroisocyanurate (dihydrate) 
(NaCl2(NCO)3 x 2H2O), and (3) sodium 
dichloroisocyanurate (anhydrous) (NaCl2(NCO)3). 
Chlorinated

[[Page 22801]]

isocyanurates are available in powder, granular and solid (e.g., tablet 
or stick) forms.
    Chlorinated isocyanurates are currently classifiable under 
subheadings 2933.69.6015, 2933.69.6021, 2933.69.6050, 3808.50.4000, 
3808.94.5000, and 3808.99.9500 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 
isocyanurates and other compounds including an unfused triazine ring. 
The tariff classifications 3808.50.4000, 3808.94.5000 and 3808.99.9500 
cover disinfectants that include chlorinated isocyanurates. The HTSUS 
subheadings are provided for convenience and customs purposes. The 
written description of the scope of the investigation is dispositive.

Methodology

    The Department conducted this investigation in accordance with 
section 731 of the Act. Export prices have been calculated in 
accordance with section 772(a) of the Act. Constructed export prices 
have been calculated in accordance with section 772(b) of the Act. 
Normal value has been calculated in accordance with section 773 of the 
Act.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum, which is hereby 
adopted by this notice.\5\ The Preliminary Decision Memorandum is a 
public document and is made available to the public via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (``IA ACCESS''). IA ACCESS is available to registered 
users at https://iaaccess.trade.gov, and is available to all parties in 
the Department's Central Records Unit, located at room 7046 of the main 
Department of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be found at http://enforcement.trade.gov/frn/. The signed and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \5\ See Memorandum to Paul Piquado, Assistant Secretary for 
Enforcement and Compliance from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations 
``Decision Memorandum for the Preliminary Determination of the 
Antidumping Duty Investigation of Chlorinated Isocyanurates From 
Japan,'' dated concurrently this notice (``Preliminary Decision 
Memorandum'').
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Preliminary Determination

    The Department preliminarily determines that the following 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                     Exporter/Producer                          margin
                                                              (percent)
------------------------------------------------------------------------
Shikoku Chemicals Corporation..............................        54.79
Nankai Chemical Co., Ltd...................................       109.56
All Others.................................................        63.71
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    Pursuant to section 735(c)(5)(A) of the Act, the ``All Others'' 
rate shall be an amount equal to the weighted average of the estimated 
weighted-average dumping margins established for exporters and 
producers individually investigated, excluding any zero or de minimis 
margins, and any margins determined entirely under section 776 of the 
Act. Specifically, this rate of 63.71 percent is based on a weighted 
average using each company's publicly-ranged values for U.S. exports of 
subject merchandise. Because we cannot apply our normal methodology of 
calculating a weighted-average margin due to requests to protect 
business-proprietary information, we find this rate to be the best 
proxy of the actual weighted-average margin determined for these 
respondents.6 7
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    \6\ See, e.g., Certain Frozen Warmwater Shrimp From India: Final 
Results of Antidumping Duty Administrative Review, Partial 
Rescission, and Final No Shipment Determination, 76 FR 41205, 41205 
(July 13, 2011).
    \7\ See Memorandum to the File from Julia Hancock and Jerry 
Huang, Senior Case Analysts, Office V, Enforcement and Compliance, 
Subject: Chlorinated Isocyanurates From Japan: Calculation of All-
Others' Rate in Preliminary Determination (April 14, 2014).
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Disclosure and Public Comment

    The Department will disclose the calculations used in our analysis 
to parties in this investigation within five days of the date of 
publication of this notice. Case briefs or other written comments may 
be submitted to the Assistant Secretary for Enforcement and Compliance 
no later than seven days after the date on which the final verification 
report is issued in this proceeding and rebuttal briefs, limited to 
issues raised in case briefs, may be submitted no later than five days 
after the deadline date for case briefs.\8\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal 
briefs in this proceeding are encouraged to submit with each argument: 
(1) A statement of the issue; (2) a brief summary of the argument; and 
(3) a table of authorities.
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    \8\ See 19 CFR 351.309(c) and (d).
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    Pursuant to 19 CFR 351.310(c), interested parties, who wish to 
request a hearing, or to participate if one is requested, must submit a 
written request to the Assistant Secretary for Enforcement and 
Compliance, U.S. Department of Commerce, filed electronically using IA 
ACCESS. An electronically filed document must be received successfully 
in its entirety in IA ACCESS, by 5 p.m. Eastern Time within 30 days 
after the date of publication of this notice.\9\ Requests should 
contain the party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. If a request 
for a hearing is made, the Department will inform parties of the 
scheduled date for the hearing which will be held at the U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230, at a time and location to be determined. Parties 
should confirm by telephone the date, time, and location of the 
hearing. Interested parties are invited to comment on the preliminary 
determination of this investigation.
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    \9\ See 19 CFR 351.310(c).
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we will direct 
U.S. Customs and Border Protection (``CBP'') to suspend liquidation of 
all entries of isos from Japan, as described in the ``Scope of the 
Investigation'' section, entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register.
    Pursuant to 19 CFR 351.205(d), the Department will instruct CBP to 
require a cash deposit \10\ equal to the preliminary weighted-average 
amount by which normal value exceeds U.S. price, as indicated in the 
chart above. These suspension of liquidation instructions will remain 
in effect until further notice.
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    \10\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
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Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such

[[Page 22802]]

postponement is made by exporters who account for a significant 
proportion of exports of the subject merchandise. 19 CFR 351.210(e)(2) 
requires that requests by respondents for postponement of a final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to not more than six months.
    On March 21, 2014, Shikoku Chemicals Corporation requested that, in 
the event of an affirmative preliminary determination in this 
investigation, the Department postpone its final determination by 60 
days (135 days after publication of the preliminary determination), and 
agreed to extend the application of the provisional measures prescribed 
under section 733(d) of the Act and 19 CFR 351.210(e)(2), from a four-
month period to a six-month period.\11\ In accordance with section 
735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because (1) our 
preliminary determination is affirmative; (2) the requesting producer/
exporter accounts for a significant proportion of exports of the 
subject merchandise; and (3) no compelling reasons for denial exist, we 
are postponing the final determination until no later than 135 days 
after the publication of this notice in the Federal Register. 
Suspension of liquidation will be extended accordingly. We are also 
extending the application of the provisional measures prescribed under 
section 733(d) of the Act and 19 CFR 351.210(e)(2) from a four-month 
period to a six-month period.
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    \11\ See Letter to the Secretary of Commerce from Shikoku 
Chemicals Corporation, re ``Chlorinated Isocyanurates from Japan: 
Shikoku's Request to Postpone the Final Determination'', dated March 
21, 2014.
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U.S. International Trade Commission (``ITC'') Notification

    In accordance with section 733(f) of the Act, we will notify the 
ITC of our preliminary affirmative determination of sales at LTFV. 
Because the preliminary determination in this proceeding is 
affirmative, section 735(b)(2) of the Act requires that the ITC make 
its final determination as to whether the domestic industry in the 
United States is materially injured, or threatened with material 
injury, by reason of imports of isos from Japan before the later of 120 
days after the date of this preliminary determination or 45 days after 
our final determination. Because we are postponing the deadline for our 
final determination to 135 days from the date of the publication of 
this preliminary determination, as discussed above, the ITC will make 
its final determination no later than 45 days after our final 
determination.
    This determination is issued and published pursuant to sections 
733(f) and 777(i)(1) of the Act.

    Dated: April 14, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

1. Background
2. Scope of the Investigation
3. Scope Comments
4. Respondent Selection
6. Affiliation Determinations
7. Determination of the Comparison Method
    A. Differential Pricing Analysis
    B. Results of the Differential Pricing Analysis
8. Discussion of Methodology
    A. Fair Value Comparisons
    B. Product Comparisons
    C. Date of Sale
    D. Export Price (``EP'')
    E. Constructed Export Price (``CEP'')
Normal Value
    A. Home Market Viability
    B. Affiliated Party Transactions and Arm's-Length Test
    C. Level of Trade
    H. Cost of Production
    1. Calculation of COP
    2. Test of Comparison Prices
    3. Results of COP Test
    4. Constructed Value
    5. Calculation of Normal Value Based on Comparison Market Prices
9. Currency Conversion
10. Verification
11. International Trade Commission Notification

[FR Doc. 2014-09365 Filed 4-23-14; 8:45 am]
BILLING CODE 3510-DS-P