Electrolytic Manganese Dioxide From the People\'s Republic of China: ...

Tag : manganese
Electrolytic Manganese Dioxide From the People's Republic of China:Final Determination of Sales at Less Than Fair Value

Released : Monday, August 18, 2008 12:06 PM
DEPARTMENT OF COMMERCE (DOC)
International Trade Administration (ITA)
Import Administration
Citation: "73 FR 48195"
Document Number: "A-570-919"
Page Number: "48195"
"Notices"
SUMMARY: On March 26, 2008, the Department of Commerce (the"Department") published its preliminary determination of sales atless than fair value ("LTFV") in the antidumping ("AD")investigation of electrolytic manganese dioxide ("EMD") from thePeople's Republic of China ("PRC"). The period of investigation("POI") is January 1, 2007, through June 30, 2007. We invitedinterested parties to comment on our preliminary determination ofsales at LTFV. Based on our analysis of the comments we received,we have made changes to our calculations for the mandatoryrespondent. We determine that EMD from the PRC is being, or islikely to be, sold in the United States at LTFV as provided insection 735 of the Tariff Act of 1930, as amended ("the Act"). Theestimated margins of sales at LTFV are shown in the "FinalDetermination Margins" section of this notice.
EFFECTIVE DATE: August 18, 2008.
FOR FURTHER INFORMATION CONTACT:
Eugene Degnan or Robert Bolling, AD/CVD Operations, Office 8,Import Administration, International Trade Administration, U.S.Department of Commerce, 14th Street and Constitution Avenue, NW,Washington, DC 20230; telephone: (202) 482-0414 or (202) 482-3434,respectively.
SUPPLEMENTARY INFORMATION: The Department published itspreliminary determination of sales at LTFV on
March 26, 2008. See Electrolytic Manganese Dioxide from thePeople's Republic of China: Preliminary Determination of Sales atLess Than Fair Value and Postponement of Final Determination, 73 FR15988 (March 26, 2008) ("Preliminary Determination "). BetweenApril 21 and April 25, 2008, the Department conducted verificationof Guizhou Redstar Developing Import and Export Company, Ltd.("Redstar"). See Verification of the Sales and Factors Response ofRedstar in the Antidumping Investigation of Electrolytic ManganeseDioxide from the People's Republic of China, dated June 24, 2008("Redstar Verification Report"). See also the "Verification"section below for additional information.
We invited interested parties to comment on the PreliminaryDetermination. On May 22, 2008, multiple interested parties filedcase briefs with respect to the scope of this AD and the concurrentcountervailing duty ("CVD") proceeding. On May 27, 2008, many ofthese same parties filed rebuttal comments regarding the scope ofthese two proceedings. In addition, on May 27, 2008, multipleinterested parties filed case briefs with respect to issuesspecific to the AD proceeding. These same parties filed rebuttalbriefs on June 2, 2008. The Department held two hearings on June12, 2008, one solely related to the scope of the AD and CVDproceedings and the second to address issues related solely to theAD investigation.
Period of Investigation
The period of investigation ("POI") is January 1, 2007, throughJune 30, 2007. This period corresponds to the two most recentfiscal quarters prior to the month of the filing of the petition,which was September 2007. /1/
FOOTNOTE 1 See 19 CFR 351.204(b)(1). END FOOTNOTE
Scope of Investigation
The merchandise covered by this investigation includes allmanganese dioxide (MnO&bds2;) that has been manufactured in anelectrolysis process, whether in powder, chip, or plate form.Excluded from the scope are natural manganese dioxide (NMD) andchemical manganese dioxide (CMD). The merchandise subject to thisinvestigation is classified in the Harmonized Tariff Schedule ofthe United States ("HTSUS") at subheading 2820.10.00.00. While theHTSUS subheading is provided for convenience and customs purposes,the written description of the scope of this investigation isdispositive.
Verification
As provided in section 782(i) of the Act, we verified theinformation submitted by Redstar for use in our finaldetermination. See the Redstar Verification Report on the record ofthis investigation in the Central Records Unit ("CRU"), Room 1117of the main Department building. We used standard verificationprocedures, including examination of relevant accounting andproduction records, as well as original source documents providedby respondents.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties tothis investigation are addressed in the Issues and DecisionMemorandum for the Antidumping Duty Investigation of ElectrolyticManganese Dioxide from the People's Republic of China, datedconcurrently with this notice and, which is hereby adopted by thisnotice ("Issues and Decision Memorandum"). A list of the issueswhich parties raised and to which we respond in the Issues andDecision Memorandum is attached to this notice as Appendix II. TheIssues and Decision Memorandum is a public document and is on filein the CRU, and is accessible on the Web at ia.ita.doc.gov/frn. Thepaper copy and electronic version of the memorandum are identicalin content.
Changes Since the Preliminary Determination
Based on our analysis of information on the record of thisinvestigation, we have made changes to the margin calculations forthe final determination for all mandatory respondents.
General Issues
Based on an analysis of comments received, and the update of thePRC wage rate, the Department has made certain changes in themargin calculations. For the final determination, the Departmenthas made the following changes with respect to Redstar:
. The Department is valuing the inputs manganese carbonate oreand manganese oxide ore using the publicly available price listfrom Manganese Ore India Ltd.'s ("MOIL") website, and adjusting thevalue to account for the percentage of manganese content. SeeElectrolytic Manganese Dioxide from the People's Republic of China:Surrogate Value Memorandum for the Final Determination (August 8,2008) ("Surrogate Value Memo"); Issues and Decisions Memo atComment 2.
. The Department is using the financial statements of MOIL tocalculate the surrogate financial ratios. The Department is basingthe overhead and profit on the EMD division of MOIL, and theselling, general and administrative expenses ratio on the entireconsolidated statements of MOIL. See Surrogate Value Memo; Issuesand Decision Memorandum at Comment 3.
. The Department is valuing all steam used in the production ofEMD, including that steam derived as a by-product from productionof merchandise not under investigation. Electrolytic ManganeseDioxide from the People's Republic of China: Analysis Memorandumfor the Final Determination (August 8, 2008) ("Analysis Memo");Issues and Decision Memorandum at Comment 4.
. The Department is using the Maharashtra IndustrialDevelopment Corporation ("MIDC") updated water tariff schedule,effective June 1, 2007, to value water. See Surrogate Value Memo;Issues and Decision Memorandum at Comment 6.
. The Department is valuing Redstar's coal using TERI data forgrade C steam coal. See Surrogate Value Memo; Issues and DecisionMemorandum at Comment 9.
. The Department is valuing labor using its revised labor ratespublished May 14, 2008. See Surrogate Value Memo; Issues andDecision Memorandum at Comment 10.
. The Department is including in its calculation of normalvalue ("NV") the electricity consumed by lighting and appliances inRedstar's workshops. See Analysis Memo; Issues and DecisionMemorandum at Comment 11.
Surrogate Country
In the Preliminary Determination, we stated that we had selectedIndia as the appropriate surrogate country to use in thisinvestigation for the following reasons: (1) it is a significantproducer of comparable merchandise; (2) it is at a similar level ofeconomic development comparable to that of the PRC; and (3) we havereliable data from India that we can use to value the factors ofproduction. See Preliminary Determination. For the finaldetermination, we received no comments and have made no changes toour findings with respect to the selection of a surrogate country.
Separate Rates
In proceedings involving non-market-economy ("NME") countries,the Department begins with a rebuttable presumption that allcompanies within the country are subject to government control and,thus, should be assigned a single antidumping duty deposit rate. Itis the Department's policy to assign all exporters of merchandisesubject to an investigation in an NME country this single rateunless an exporter can demonstrate that it is sufficientlyindependent so as to be entitled to a separate rate. See FinalDetermination of Sales at Less Than Fair Value: Sparklers from thePeople's Republic of China, 56 FR 20588 (May 6, 1991)("Sparklers"), as amplified by Notice of Final Determination ofSales at Less Than Fair Value: Silicon Carbide from the People'sRepublic of China, 59 FR 22585 (May 2, 1994) ("Silicon Carbide "),and 19 CFR 351.107(d).
In the Preliminary Determination, we found that Redstardemonstrated its eligibility for separate-rate status. For thefinal determination, we continue to find that the evidence placedon the record of this investigation by Redstar demonstrates both dejure and de facto absence of government control with respect to itsexports of the merchandise under investigation, and therefore,Redstar is eligible for separate-rate status.
Use of Facts Available
Section 776(a)(2) of the Act provides that, if an interestedparty: (A) withholds information that has been requested by theDepartment; (B) fails to provide such information in a timelymanner or in the form or manner requested subject to sections782(c)(1) and (e) of the Act; (C) significantly impedes aproceeding under the antidumping statute; or (D) provides suchinformation but the information cannot be verified, the Departmentshall, subject to subsection 782(d) of the Act, use facts otherwiseavailable in reaching the applicable determination.
Section 782(c)(1) of the Act provides that if an interestedparty "promptly after receiving a request from {the Department} forinformation, notifies {the Department} that such party is unable tosubmit the information requested in the requested form and manner,together with a full explanation and suggested alternative forms inwhich such party is able to submit the information," the Departmentmay modify the requirements to avoid imposing an unreasonableburden on that party.
Section 782(d) of the Act provides that, if the Departmentdetermines that a response to a request for information does notcomply with the request, the Department will inform the personsubmitting the response of the nature of the deficiency and shall,to the extent practicable, provide that person the opportunity toremedy or explain the deficiency. If that person submits furtherinformation that continues to be unsatisfactory, or thisinformation is not submitted within the applicable time limits, theDepartment may, subject to section 782(e), disregard all or part ofthe original and subsequent responses, as appropriate.
Section 782(e) of the Act states that the Department shall notdecline to consider information deemed "deficient" under section782(d) if: (1) the information is submitted by the establisheddeadline; (2) the information can be verified; (3) the informationis not so incomplete that it cannot serve as a reliable basis forreaching the applicable determination; (4) the interested party hasdemonstrated that it acted to the best of its ability; and (5) theinformation can be used without undue difficulties.
Furthermore, section 776(b) of the Act states that if theDepartment "finds that an interested party has failed to cooperateby not acting to the best of its ability to comply with a requestfor information from the administering authority or the Commission,the administering authority or the Commission ..., in reaching theapplicable determination under this title, may use an inferencethat is adverse to the interests of that party in selecting fromamong the facts otherwise available." See also Statement ofAdministrative Action (SAA) accompanying the Uruguay RoundAgreements Act (URAA), H.R. Rep. No. 103-316, Vol. 1 at 870 (1994).
For this final determination, in accordance with sections773(c)(3)(A) and (B) of the Act and sections 776(a)(2)(A), (B) and(D) and 776(b) of the Act, we have determined that the use ofadverse facts available ("AFA") is warranted for the PRC entity, asdiscussed below.
The PRC-Wide Rate
Because we begin with the presumption that all companies withinan NME country are subject to government control and because onlythe company listed under the "Final Determination Margin" sectionbelow has overcome that presumption, we are applying a singleantidumping rate - the PRC-wide rate - to all other exporters ofsubject merchandise from the PRC. See, e.g., Synthetic Indigo fromthe People's Republic of China: Notice of Final Determination ofSales at Less Than Fair Value, 65 FR 25706 (May 3, 2000). ThePRC-wide rate applies to all entries of subject merchandise exceptfor entries from Redstar.
In the Preliminary Determination, the Department found that thePRC-wide entity (including Xiangtan Electrochemical ScientificLtd.) failed to respond to the Department's questionnaires,withheld or failed to provide information in a timely manner or inthe form or manner requested by the Department, and otherwiseimpeded the proceeding. Therefore, in the Preliminary Determinationwe treated these PRC producers/exporters as part of the PRC-wideentity because they did not demonstrate that they operate free ofgovernment control over their export activities. No additionalinformation was placed on the record with respect to these entitiesafter the Preliminary Determination. In addition, because thePRC-wide entity did not provide the Department with the requestedinformation, pursuant to section 776(a)(2)(A) and (C) of the Act,the Department continues to find that the use of facts available isappropriate to determine the PRC-wide rate. Section 776(b) of theAct provides that, in selecting from among the facts otherwiseavailable, the Department may employ an adverse inference if aninterested party fails to cooperate by not acting to the best ofits ability to comply with requests for information. See Notice ofFinal Determination of Sales at Less Than Fair Value: CertainCold-Rolled Flat-Rolled Carbon-Quality Steel Products from theRussian Federation, 65 FR 5510, 5518 (February 4, 2000). See also,SAA at 870. We have determined that, because the PRC-wide entitydid not respond to our request for information, it has failed tocooperate to the best of its ability. Therefore, the Departmentfinds that, in selecting from among the facts otherwise available,an adverse inference is warranted.
Corroboration
Section 776(c) of the Act provides that, when the Departmentrelies on secondary information in using the facts otherwiseavailable, it must, to the extent practicable, corroborate thatinformation from independent sources that are reasonably at itsdisposal. We have interpreted "corroborate" to mean that we will,to the extent practicable, examine the reliability and relevance ofthe information submitted. See Notice of Final Determination ofSales at Less Than Fair Value: Certain Cold-Rolled Flat-RolledCarbon-Quality Steel Products From Brazil, 65 FR 5554, 5568(February 4, 2000); see, e.g., Tapered Roller Bearings and PartsThereof, Finished and Unfinished, From Japan, and Tapered RollerBearings, Four Inches or Less in Outside Diameter, and ComponentsThereof, From Japan; Preliminary Results of Antidumping DutyAdministrative Reviews and Partial Termination of AdministrativeReviews, 61 FR 57391, 57392 (November 6, 1996) (unchanged in thefinal results).
In the Preliminary Determination, we stated we used as AFA thehigher of (a) the highest margin alleged in the petition, or (b)the highest calculated rate of any respondent in the investigation.n 2 No parties commented on the selection of the PRC-wide rate. Inthe instant investigation, as AFA for the final determination, wehave assigned to the PRC-wide entity a margin of 149.92 percent,the highest calculated rate of any respondent in this proceeding,which is the calculated rate of the respondent Redstar. Wedetermined that this information is the most appropriate from theavailable sources to effectuate the purposes of AFA. Because theAFA rate for this investigation is a calculated rate from therespondent and is not based on secondary information, nocorroboration is required within the meaning of section 776(c) ofthe Act.
FOOTNOTE 2 See Final Determination of Sales at Less Than FairValue: Certain Cold-Rolled Carbon Quality Steel Products from thePeople's Republic of China, 65 FR 34660 (May 21, 2000), andaccompanying Issues and Decision Memorandum at "Facts Available."END FOOTNOTE
Final Determination Margins
We determine that the following weighted-average percentagemargin exists for the POI:






Disclosure
We will disclose the calculations performed within five days ofthe date of publication of this notice to parties in thisproceeding in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we aredirecting U.S. Customs and Border Protection ("CBP") to continue tosuspend liquidation of all imports of subject merchandise enteredor withdrawn from warehouse, for consumption on or after March 26,2008, the date of publication of the Preliminary Determination inthe Federal Register. We will instruct CBP to continue to require acash deposit or the posting of a bond for all companies based onthe estimated weighted-average dumping margins shown above. Thesuspension of liquidation instructions will remain in effect untilfurther notice.
ITC Notification
In accordance with section 735(d) of the Act, we have notifiedthe International Trade Commission ("ITC") of our finaldetermination of sales at LTFV. As our final determination isaffirmative, in accordance with section 735(b)(2) of the Act,within 45 days the ITC will determine whether the domestic industryin the United States is materially injured, or threatened withmaterial injury, by reason of imports or sales (or the likelihoodof sales) for importation of the subject merchandise. If the ITCdetermines that material injury or threat of material injury doesnot exist, the proceeding will be terminated and all securitiesposted will be refunded or canceled. If the ITC determines thatsuch injury does exist, the Department will issue an antidumpingduty order and directing CBP to assess antidumping duties on allimports of the subject merchandise entered, or withdrawn fromwarehouse, for consumption on or after the effective date of thesuspension of liquidation.
Notification Regarding APO
This notice also serves as a reminder to the parties subject toadministrative protective order ("APO") of their responsibilityconcerning the disposition of proprietary information disclosedunder APO in accordance with 19 CFR 351.305. Timely notification ofreturn or destruction of APO materials or conversion to judicialprotective order is hereby requested. Failure to comply with theregulations and the terms of an APO is a sanctionable violation.
This determination and notice are issued and published inaccordance with sections 735(d) and 777(i)(1) of the Act.
Dated: August 8, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
Appendix
Comment 1: Valuation of Manganese Ore as an Intermediate Input
Comment 2: Surrogate Value for Manganese Ore
Comment 3: Surrogate Financial Ratio Calculation
Comment 4: Steam Consumption
Comment 5: Electricity Inputs to Steam Production
Comment 6: Surrogate Value for Water
Comment 7: Surrogate Value Source for Truck Freight
Comment 8: Grinding Bars and Rings
Comment 9: Surrogate Value for Coal
Comment 10: Labor Wage Rate
Comment 11: Electricity used for Lighting and Appliances inWorkshops
[FR Doc. E8-19099 Filed 8-15-08; 8:45 am]
BILLING CODE 3510-DS-S
Copyright 2008 Federal Information & News Dispatch, Inc.
Provider:
Federal Information & News Dispatch, Inc. / Federal Register
Keywords:
Asia Pacific Business News , Asia Pacific News , Business Management , U.S. Business News , Business News , Global Econopolitics , Market Financials , Top World News , Americas , Asia , Central Asia , Eastern Asia , Far East , Indian Subcontinent , North America , Southern Asia , China , India , USA , MSNBC Business Video News , North American Business News , Company Profiles , Government , International Issues , Imports , Exports , Economics & Trade , Asia Pacific Economics & Trade , World Trade , Global Politics , U.S. News , Wall Street Corporate Reporter N