Initiation of Antidumping Duty Investigation: Coumarin From the People's Republic of China

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-830]

Initiation of Antidumping Duty Investigation: Coumarin From the

People's Republic of China

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: January 27, 1994.

FOR FURTHER INFORMATION CONTACT: David J. Goldberger or Michelle

Frederick, Office of Antidumping Investigations, Import Administration,

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

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

(202) 482-4136 or 482-0186, respectively.

INITIATION OF INVESTIGATION:

The Petition

On December 30, 1993, we received a petition filed in proper form

by Rhone-Poulenc Specialty Chemicals Co. (petitioner). Petitioner

submitted amendments to the petition on January 13 and 14, 1994. In

accordance with 19 CFR 353.12, petitioner alleges that imports of

coumarin from the People's Republic of China (PRC) are being, or are

likely to be, sold in the United States at less than fair value within

the meaning of section 731 of the Tariff Act of 1930, as amended (the

Act), and that such imports are materially injuring, or threatening

material injury to, a U.S. industry.

Petitioner stated that it has standing to file the petition because

it is an interested party, as defined under section 771(9)(C) of the

Act, and the petition is filed on behalf of the U.S. industry producing

the product subject to this investigation. If any interested party, as

described under paragraphs (C), (D), (E), or (F) of section 771(9) of

the Act, wishes to register support for, or opposition to, this

petition, it should file a written notification with the Assistant

Secretary for Import Administration.

Scope of Investigation

The product covered by this investigation is coumarin. Coumarin is

an aroma chemical with the chemical formula C9H6O2 that

is also known by other names, including 2H-1-benzopyran-2-one, 1,2-

benzopyrone, cis-o-coumaric acid lactone, coumarinic anhydride, 2-Oxo-

1,2-benzopyran, 5,6-benzo-alpha-pyrone, ortho-hydroxyc innamic acid

lactone, cis-ortho-coumaric acid anhydride, and tonka bean camphor.

All forms and variations of coumarin are included within the scope

of the petition, such as coumarin in crystal, flake, or powder form,

and ``crude'' or unrefined coumarin (i.e. prior to purification or

crystallization). Excluded from the scope are ethylcoumarins

(C11H10O2) and methylcoumarins (C10H8O2).

Coumarin is classifiable under subheading 2932.21.0000 of the

Harmonized Tariff Schedule of the United States (HTSUS). Although the

HTSUS subheading is provided for convenience and customs purposes, our

written description of the scope of this investigation is dispositive.

United States Price and Foreign Market Value

Petitioner based United States price (USP) on average unit prices

derived from U.S. Census import statistics, and on price lists from

U.S. importers of coumarin.

Petitioner contends that the foreign market value (FMV) of PRC-

produced imports subject to this investigation must be determined in

accordance with section 773(c) of the Act, which concerns non-market

economy (NME) countries. The PRC is presumed to be an NME within the

meaning of section 771(18)(C) of the Act, and the Department has

treated it as such in previous investigations (see, e.g., Final

Determination of Sales at Less Than Fair Value: Certain Compact Ductile

Iron Waterworks Fittings and Accessories Thereof from the PRC, 58 FR

37908 (July 14, 1993)). In the course of this investigation, parties

will have the opportunity to address this NME presumption and provide

relevant information and argument on this issue. In addition, parties

will have the opportunity in this investigation to submit comments on

whether FMV should be based on prices or costs in the NME (see

Amendment to Final Determination of Sales at Less Than Fair Value and

Amendment to Antidumping Duty Order: Chrome-Plated Lug Nuts from the

People's Republic of China, 57 FR 15052 (April 24, 1992)).

Because of the extent of central control in an NME, the Department

further considers that a single antidumping margin, should there be

one, is appropriate for all exporters from the NME. Only if individual

NME exporters are free of central government ownership and can

demonstrate an absence of central governmental control with respect to

the pricing of exports, both in law and in fact, will they be

considered eligible for separate, owner-specific deposit rates. (See

Final Determination of Sales at Less Than Fair Value: Helical Spring

Lock Washers from the People's Republic of China, September 20, 1993,

(58 FR 48833) for a discussion of the information the Department

considers appropriate to warrant calculation of separate rates.)

In accordance with section 773(c) of the Act, FMV in NME cases is

based on NME producers' factors of production (valued in a market

economy country). Absent evidence that the PRC government determines

which factories shall produce for export to the United States, we

intend, for purposes of this investigation, to base FMV only on those

factories in the PRC which are known to produce coumarin for export to

the United States.

Petitioner calculated FMV on the basis of the valuation of the

factors of production. The factors of production used by petitioner

were based on petitioner's experience at its manufacturing facility,

which it states is comparable to the PRC production process.

In valuing the factors of production, petitioner used India as the

surrogate country. For purposes of this initiation, we have, pursuant

to section 773(c)(4) of the Act, accepted India as an appropriate

surrogate country because its economy is comparable to the PRC's.

Petitioner's FMV consisted of the sum of materials, labor, energy,

utilities, overhead, general expenses, profit, and packing. In

accordance with the hierarchy preferred for valuing factors (set forth

in the notice of Final Determination of Sales at Less Than Fair Value:

Certain Carbon Steel Butt-Weld Pipe Fittings From the People's Republic

of China, 57 FR 21058 (May 18, 1992) (Comment 4)), petitioner relied

where possible on publicly available information. Where such

information was unavailable, petitioner relied on its own cost or

experience.

Pursuant to section 773(c)(1) of the Act, petitioner added to the

labor and material costs the statutory minima of 10 percent for general

expenses and eight percent for profit, as well as an amount for packing

based on import statistics from India.

Fair Value Comparisons

Based on the data provided by the petitioner, there is reason to

believe that the merchandise is being, or is likely to be, sold at less

than fair value. Based on our analysis of information submitted in the

petition amendment, we found it necessary to conduct further research

regarding the pricing of certain factors of production upon which FMV

was based. Subsequent to that research, petitioners submitted

amendments to the petition including additional price information. The

comparison of USP and FMV in the petition, as amended, indicates

margins of 33.59% to 444.37%. If it becomes necessary at a later date

to consider the petition as a source of best information available

(BIA), we may review all of the bases for USP and FMV in determining

BIA.

Initiation of Investigation

We have examined the petition on coumarin and have found that it

meets the requirements of section 732(b) of the Act. Therefore, we are

initiating an antidumping duty investigation to determine whether

imports of coumarin from the PRC are being, or are likely to be, sold

in the United States at less than fair value.

ITC Notification

Section 732(d) of the Act requires us to notify the International

Trade Commission (ITC) of this action, and we have done so.

Preliminary Determination by the ITC

The ITC will determine by February 14, 1994, whether there is a

reasonable indication that imports of coumarin from the PRC are

materially injuring, or threaten material injury to, a U.S. industry.

Any ITC determination which is negative will result in this

investigation being terminated; otherwise, this investigation will

proceed according to statutory and regulatory time limits.

This notice is published pursuant to section 732(c)(2) of the Act

and 19 CFR 353.13(b).

Dated: January 19, 1994.

Joseph A. Spetrini,

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-1780 Filed 1-26-94; 8:45 am]

BILLING CODE 3510-DS-P