Notice of Preliminary Determination of Sales at Not Less Than Fair Value: Saccharin From Korea

COMMISSION ON CIVIL RIGHTS

[A-580-823]

Notice of Preliminary Determination of Sales at Not Less Than

Fair Value: Saccharin From Korea

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: June 23, 1994.

FOR FURTHER INFORMATION CONTACT: Thomas McGinty or Susan Strumbel,

Office of Countervailing Investigations, Import Administration,

International Trade Administration, U.S. Department of Commerce, 14th

Street and Constitution Avenue, NW., Washington, DC 20230; telephone

(202) 482-5055 and 482-1442, respectively.

Preliminary Determination

We have preliminarily determined that saccharin from Korea is not

being, nor is likely to be, sold in the United States at less than fair

value, as provided in section 733 of the Tariff Act of 1930, as amended

(the ``Act''). We calculated a preliminary less than fair value margin

of zero percent for Korean saccharin sold in the United States during

the period of investigation.

Case History

Since the initiation of this investigation on December 8, 1993 (58

FR 65335; December 14, 1993), the following events have occurred:

On January 3, 1994, the United States International Trade

Commission (``ITC'') issued an affirmative preliminary injury

determination (see ITC Investigation No. 731-TA-676).

On January 11, 1994, in accordance with 19 CFR 353.42(b), the

Department issued its antidumping duty questionnaire to Jeil Moolsan

Co. Inc. (``JMC''), the major Korean producer and exporter of the

subject merchandise during the period of investigation, because JMC

accounted for more than 60 percent of Korean saccharin sold in the

United States during the period of investigation.

On March 21, 1994, PMC Specialties Group (``PMC''), the petitioner

in this investigation, requested a postponement of the preliminary

determination in this investigation. We granted the postponement until

June 16, 1994 (59 FR 15705, April 4, 1994). Also, on March 21, 1994,

petitioner submitted to the Department an allegation that JMC's

reported third-country sales to the United Kingdom (``U.K.'') were made

at prices below the cost of production. On May 11, 1994, in accordance

with section 772(b) of the Act, the Department initiated an

investigation of whether those third-country sales were made at prices

below the cost of production during the period of investigation. On May

24, 1994, we issued a COP and constructed value questionnaire to JMC.

JMC's response to the questionnaire is due June 29, 1994. Therefore,

information relating to whether JMC made sales below cost in the U.K.

has not been considered in this preliminary determination, but will be

considered for purposes of the final determination.

Scope of the Investigation

The product covered by this investigation is saccharin. Saccharin

is a non-nutritive sweetener used in beverages and foods, personal care

products such as toothpaste, table-top sweeteners, animal feeds, and

metalworking fluids. Three forms of saccharin are typically available

as referenced in the American Chemical Society's Chemical Abstract

Service (``CAS''). These forms are sodium saccharin (CAS #128-44-9),

calcium saccharin (CAS #6485-34-3), and acid (or insoluble) saccharin

(CAS #81-07-2). Saccharin is classified under subheading 2925.11.00 of

the Harmonized Tariff Schedule of the United States (``HTS''). The

scope of this investigation includes all types of saccharin imported

under this HTS subheading including research and specialized grades.

The HTS subheading is provided for convenience and customs purposes.

Our written description of the scope of this investigation is

dispositive.

Period of Investigation

The period of investigation (``POI'') is June 1, 1993, through

November 30, 1993.

Product Comparisons

We have determined that the class or kind of merchandise subject to

this investigation constitutes a single such or similar category. In

making our fair value comparisons, in accordance with the Department's

standard methodology, we first compared merchandise identical in all

respects. If no identical merchandise was sold, we compared the most

similar merchandise, as determined by the model-matching criteria

contained in Appendix V of the questionnaire (``Appendix V'') (on file

in Room B-099 of the main building of the Department of Commerce

(``Public File'')).

Regarding level of trade, JMC reported that it sells only to

distributors in the United States and to both distributors and trading

companies in the U.K. However, JMC reported that there is no difference

between prices or conditions of sale made at the distributor and

trading company levels of trade. Therefore, in keeping with past

practice (see, e.g., Final Results of Administrative Review:

Antifriction Bearings and Parts Thereof from the Federal Republic of

Germany, et al. (56 FR 31692, 31709-11; July 11, 1991), and in

accordance with 19 CFR 353.58, we have compared JMC's U.S. sales to

distributors to U.K. sales to either distributors or trading companies,

without distinction, in determining whether or not JMC made sales at

less than fair value.

Fair Value Comparisons

To determine whether JMC's sales for export to the United States

were made at less than fair value, we compared the United States price

(``USP'') to the foreign market value (``FMV''), as specified in the

``United States Price'' and ``Foreign Market Value'' sections of this

notice. With the exception of one sale to the United States, all

comparisons of U.S. and third country sales involved identical

merchandise. For the U.S. sale compared to a sale of similar

merchandise, we made an adjustment, pursuant to 19 CFR 353.57, for

physical differences in merchandise.

United States Price

Because JMC's U.S. sales of saccharin were made to unrelated

purchasers prior to importation into the United States, and the

exporter's sales price methodology was not indicated by other

circumstances, in accordance with section 772(b) of the Act, we based

USP on the purchase price (``PP'') sales methodology.

We calculated JMC's PP sales based on packed and delivered prices

to unrelated customers in the United States. We made deductions to the

U.S. price, where appropriate, for foreign brokerage and handling,

containerization, marine insurance, and freight expenses and charges.

In accordance with Section 772(d)(1)(B) of the Act, we made an addition

to the U.S. price for the amount of import duties imposed on inputs

which were subsequently rebated upon exportation of the finished

merchandise to the United States.

Foreign Market Value

In order to determine whether there was a sufficient volume of

sales in the home market to serve as a viable basis for calculating

FMV, we compared the volume of home market sales of subject merchandise

to the volume of third country sales of subject merchandise, in

accordance with section 773(a)(1)(B) of the Act. As a result, we

determined that the home market was not viable. Therefore, we have

based FMV on JMC's sales to the largest third country market by volume,

the U.K., in accordance with 19 CFR 353.49(b).

We calculated FMV based on delivered prices, inclusive of packing,

to customers in the U.K. From the delivered price, we deducted third

country packing and added U.S. packing costs. Pursuant to section

773(a)(4)(B) of the Act and 19 CFR 353.56(a)(2), we made circumstance-

of-sale-adjustments for differences in movement charges between

shipments to the United States and shipments to the U.K. We also made

circumstance-of-sale-adjustments for differences in quality inspection

charges and expenses related to securing credit including: advise

charges, postage, bank charges, outside bank charges, and expenses

associated with obtaining letters of credit. For sales with unreported

shipment or payment dates, we used JMC's reported credit expense based

on the average number of days outstanding between shipment and payment

for JMC's third country sales. In addition, we added the amount of

import duties imposed on inputs which were subsequently rebated upon

exportation of the finished merchandise to the U.K.

Currency Conversion

We made currency conversions based on the official exchange rates

in effect on the dates of the U.S. sales as certified by the Federal

Reserve Bank of New York.

Preliminary Margin Calculation

Based on the calculation methodology outlined above, we

preliminarily calculate a margin of zero percent for U.S. sales of

saccharin from Korea.

Verification

As provided in section 776(b) of the Act, we will verify

information used in making our final determination.

ITC Notification

In accordance with section 733(f) of the Act, we have notified the

ITC of our determination. If our final determination is affirmative,

the ITC will determine whether these imports are materially injuring,

or threaten material injury to, the U.S. industry within 75 days after

our final determination.

Public Comment

Interested parties who wish to request a hearing must submit a

written request to the Assistant Secretary for Import Administration,

U.S. Department of Commerce, Room B-099, within ten days of the

publication of this notice. Requests should contain: (1) The party's

name, address, and telephone number; (2) the number of participants;

and (3) a list of the issues to be discussed.

In accordance with 19 CFR 353.38, case briefs or other written

comments in at least ten copies must be submitted to the Assistant

Secretary no later than August 5, 1994, and rebuttal briefs no later

than August 10, 1994. A hearing, if requested, will be held on August

12, 1994, at 1:00 pm at the U.S. Department of Commerce in Room 1815.

Parties should confirm by telephone the time, date, and place of the

hearing 48 hours prior to the scheduled time. In accordance with 19 CFR

353.38(b), oral presentations will be limited to issues raised in the

briefs.

We will make our final determination not later than 75 days after

of this preliminary determination.

This determination is published pursuant to section 733(f) of the

Act and 19 CFR 353.15(a)(4).

Date: June 16, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-15330 Filed 6-22-94; 8:45 am]

BILLING CODE 3510-DS-P