[Federal Register Volume 79, Number 181 (Thursday, September 18, 2014)]
[Notices]
[Pages 56059-56061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22311]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-870]


Chlorinated Iscoyanurates From Japan: Final Determination of 
Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (``the Department'') determines 
that chlorinated isocyanurates (``chlorinated 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 final weighted-average dumping 
margins are listed below in the section entitled ``Final Determination 
Margins.''

DATES: Effective Date: September 18, 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:

Background

    On April 24, 2014, the Department published in the Federal Register 
the preliminary determination of sales at LTFV in the antidumping duty 
investigation of chlorinated isos from Japan.\1\ The following events 
occurred since we issued the Preliminary Determination.
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    \1\ See Chlorinated Isocyanurates from Japan: Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination 79 FR 22800 (April 24, 2014) (``Preliminary 
Determination'').
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    We issued supplemental sales and cost questionnaires to Nankai 
Chemical Co., Ltd. (``Nankai'') between April 16 and April 30, 2014. On 
April 24, 2014, and May 6, 2014, Nankai submitted its supplemental 
questionnaire responses. On May 9, 2014, Nankai submitted a letter 
notifying the Department that it was withdrawing from further 
participation in this investigation.\2\
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    \2\ See Letter to the Secretary of Commerce from Nankai Chemical 
Co., Ltd., Re: Chlorinated Isocyanurates From Japan: Withdrawal From 
Participation in the Investigation (May 9, 2014) (``Nankai's 
Withdrawal Letter'').
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    We issued supplemental sales and cost questionnaires to Shikoku 
Chemicals Corporation (``Shikoku'') and its U.S. affiliate, Shikoku 
International

[[Page 56060]]

Corporation (``SIC''), between April 16 through May 14, 2014. On April 
17, 2014, May 8, 2014, and May 14, 2014, Shikoku submitted its 
supplemental questionnaire responses. On May 23, 2014, Shikoku 
requested that the Department hold a public hearing. On July 30, 2014, 
Shikoku withdrew its request.
    On May 15, 2014, Clearon Corp. and Occidental Chemical Corporation 
(collectively ``Petitioners'') submitted pre-verification comments on 
Shikoku. The Department conducted the cost verification of Shikoku from 
May 19-23, 2014. Additionally, the Department conducted the home market 
sales verification of Shikoku from May 26-29, 2014, and the U.S. sales 
verification of SIC from June 9-10, 2014.
    On June 20, 2014, the Department issued the cost verification 
report of Shikoku.\3\ On June 30, 2014, the Department requested 
Shikoku to submit revised home market and U.S. sales databases based on 
the minor corrections submitted at verification. On July 9, 2014, 
Shikoku submitted revised home market and U.S. sales databases. On July 
11, 2014, the Department issued the home market sales verification 
report for Shikoku and the U.S. sales verification report for SIC.\4\
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    \3\ See Memorandum to the File, through Neal Halper, Director, 
Office of Accounting, from Ernest Z. Gziryan and Peter Scholl, 
Accountants, Subject: Verification of the Cost of Production and 
Constructed Value Data Submitted by Shikoku Chemicals Corporation in 
the Antidumping Duty Investigation of Chlorinated Isocyanurates 
(Chlorinated Isos) from Japan, (June 20, 2014) (``Shikoku Cost 
Verification Report'').
    \4\ See Memorandum to the File, through Scot T. Fullerton, 
Program Manager, Office V, from Julia Hancock, Jerry Huang, and 
Justin Becker, Analysts, Subject: Verification of Home Market Sales 
of Shikoku Chemicals Corporation (``Shikoku''), (July 11, 2014) 
(``Shikoku Home Market Verification Report''); See Memorandum to the 
File, through Scot T. Fullerton, Program Manager, Office V, from 
Julia Hancock and Jerry Huang, Analysts, Subject: Verification of 
Shikoku International Corporation in the Antidumping Duty 
Investigation of Chlorinated Isocyanurates from Japan, (July 11, 
2014) (``SIC Verification Report'').
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    On July 11, 2014, the Department notified interested parties of the 
case brief and rebuttal brief schedule. On July 18, 2014, Petitioners 
and Shikoku submitted case briefs. On July 23, 2014, Petitioners and 
Shikoku submitted rebuttal briefs.

Period of Investigation

    The period of investigation is July 1, 2012, through June 30, 2013.

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 
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.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum 
\5\ which is hereby adopted by this notice. A list of the issues raised 
is attached to this notice as an Appendix. The Issues and Decision 
Memorandum is a public document and is on file electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (IA ACCESS). IA ACCESS is 
available to registered users at http://iaaccess.trade.gov and it is 
available to all parties in the Central Records Unit, room 7046 of the 
main Department of Commerce building. In addition, a complete version 
of the Issues and Decision Memorandum can be accessed directly at 
http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \5\ See ``Memorandum from Gary Taverman to Paul Piquado, Issues 
and Decision Memorandum for the Antidumping Duty Investigation of 
Chlorinated Isocyanurates from Japan,'' dated concurrently with this 
notice (``Issues and Decision Memorandum'').
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations. For a 
discussion of these changes, see the ``Margin Calculations'' section of 
the Issues and Decision Memorandum.

Verification

    As provided in section 782(i) of the Act, in May and June 2014, we 
verified the cost and sales information submitted by Shikoku for use in 
our final determination. We used standard verification procedures 
including an examination of relevant accounting and production records, 
and original source documents provided by Shikoku and its U.S. 
affiliate, SIC.\6\
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    \6\ See Shikoku Cost Verification, Shikoku Home Market 
Verification Report; and SIC Verification Report.
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Facts Available

    As noted above, on May 9, 2014, Nankai informed the Department that 
it would no longer participate in the investigation. Pursuant to 
sections 776(a)-(b) of the Act, because Nankai failed to cooperate to 
the best of its ability in participating in the investigation, the 
application of facts otherwise available with adverse inferences is 
warranted in calculating the antidumping duty margin for Nankai. 
Because Nankai's withdrawal from participation prevented the Department 
from fully investigating and verifying Nankai's cost and sales 
information, Nankai failed to cooperate to the best of its ability.
    It is the Department's practice to select, as adverse facts 
available (``AFA''), the higher of the (a) highest margin alleged in 
the petition, or (b) the highest calculated rate for any respondent in 
the investigation.\7\ Accordingly, to ensure that the non-cooperative 
party, Nankai, does not benefit from its lack of participation, and to 
select a sufficiently adverse rate to induce cooperation in the future, 
for the final determination, we selected the higher of either (a) the 
highest margin alleged in the petition that we could corroborate or (b) 
the highest weighted-average calculated rate for any respondent in the 
investigation, subject to the corroboration requirement for

[[Page 56061]]

secondary information.\8\ The calculated weighted-average margin for 
the other mandatory respondent, Shikoku, in this final determination is 
less than the 151.80 percent margin from the petition, i.e., the 
highest corroborated margin alleged in the petition.\9\ Therefore, as 
AFA, we have assigned to Nankai a margin of 151.80 percent. For a full 
description of the methodology and rationale underlying our 
conclusions, see the Issues and Decision Memorandum. A list of the 
topics included in the Issues and Decision Memorandum appears in the 
Appendix of this notice.
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    \7\ See Notice of Final Determination of Sales at Less Than Fair 
Value: Certain Orange Juice from Brazil, 71 FR 2183, 2185 (January 
13, 2006).
    \8\ See Welded Stainless Pressure Pipe from Thailand: Final 
Determination of Sales at Less Than Fair Value, 79 FR 31093 (May 30, 
2014) and accompanying Issues and Decision Memorandum at Comment 2.
    \9\ See Memorandum to the File, from Jerry Huang, Senior Case 
Analyst, through Scot T. Fullerton, Program Manager, Office V, 
Subject: Corroboration of the Total AFA Rate for Nankai in the Final 
Determination of the Antidumping Duty Investigation of Chlorinated 
Isocyanurates from Japan, (September 8, 2014) (``Corroboration 
Memo'').
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``All Others'' Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 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 and margins based entirely under section 776 of the Act. 
Pursuant to section 735(c)(5)(B) of the Act, if the estimated weighted-
average dumping margins established for all exporters and producers 
individually examined are zero, de minimis or determined based entirely 
under section 776 of the Act, the Department may use any reasonable 
method to establish the estimated weighted-average dumping margin for 
all other producers or exporters. Accordingly, because Shikoku is the 
only respondent in this investigation for which the Department 
calculated a company-specific rate which is not zero, de minimis or 
based entirely on facts available, pursuant to section 735(c)(5)(A) of 
the Act, we are using the weighted-average dumping margin calculated 
for Shikoku as the estimated weighted-average dumping margin assigned 
to all other producers and exporters of the merchandise under 
consideration.

Final Determination

    The weighted-average dumping margin is as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Producer or exporter                        margin
                                                               (percent)
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Nankai Chemical Co., Ltd....................................      151.80
Shikoku Chemicals Corporation...............................       60.65
All Others Rate.............................................       60.65
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Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (``CBP'') to continue 
to suspend liquidation of all appropriate entries of chlorinated isos 
from Japan, as described in the ``Scope of the Investigation'' section, 
which were entered, or withdrawn from warehouse, for consumption on or 
after April 24, 2014, the date of publication of the Preliminary 
Determination in the Federal Register. CBP shall require a cash deposit 
equal to the estimated amount by which the normal value exceeds the 
U.S. price as follows: (1) The rates for Nankai and Shikoku will be the 
rates we have determined in this final determination; (2) if the 
exporter is not a firm identified in this investigation but the 
producer is, the rate will be the rate established for the producer of 
the subject merchandise; (3) the rate for all other producers or 
exporters will be 60.65 percent, as discussed in the ``All Others 
Rate'' section, above. These instructions suspending liquidation will 
remain in effect until further notice.

U.S. International Trade Commission (``ITC'') Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of our final affirmative determination of sales at LTFV. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2) of the Act, the ITC will 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 or sales for importation of chlorinated isos from 
Japan no later than 45 days after our final determination. If the ITC 
determines that material injury or threat of material injury does not 
exist, the proceeding will be terminated and all securities posted will 
be refunded or canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order directing 
CBP to assess, upon further instruction by the Department, antidumping 
duties on all imports of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Return or Destruction of Proprietary Information

    This notice will serve as the only reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    We are issuing and publishing this determination and notice in 
accordance with sections 735(d) and 777(i) of the Act.

    Dated: September 8, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix--Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Facts Available
V. Margin Calculations
VI. Discussion of the Issues
    1. Treatment of Shikoku's Claimed Direct Selling Expenses
    2. Treatment of Shikoku's Technical Service Expenses
    3. Treatment for Input X \10\ Between Shikoku and Shikoku Kosan 
Corporation (``SKC'')
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    \10\ Because Input X is business proprietary information, for 
further information, please see Shikoku Cost Verification Report at 
20-21; and Shikoku's Case Brief at 21-24.
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    4. Application of ``Transactions Disregarded'' Rule for 
Shikoku's Purchases of Product X \11\
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    \11\ Because Product X is business proprietary information, for 
further information, please see Shikoku's Case Brief at 26-28.
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    5. Whether Packaging Should Be Included as a Physical 
Characteristic
    6. Inclusion of Packaging Costs in Shikoku's Variable Cost of 
Manufacturing

[FR Doc. 2014-22311 Filed 9-17-14; 8:45 am]
BILLING CODE 3510-DS-P