Notice of Final Determination of Sales at Less Than Fair Value: Phthalic Anhydride From Venezuela

DEPARTMENT OF COMMERCE

[A-307-809]

Notice of Final Determination of Sales at Less Than Fair Value:

Phthalic Anhydride From Venezuela

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: August 10, 1994.

FOR FURTHER INFORMATION CONTACT: Kimberly Hardin, Office of Antidumping

Investigations, Import Administration, U.S. Department of Commerce,

14th Street and Constitution Avenue, N.W., Washington, D.C. 20230;

telephone (202) 482-0371.

Final Determination

The Department of Commerce (the Department) determines that

phthalic anhydride (PA) from Venezuela is being, or is likely to be,

sold in the United States at less than fair value, as provided in

section 735 of the Tariff Act of 1930, as amended (the Act). The

estimated margins are shown in the ``Suspension of Liquidation''

section of this notice.

Case History

Since the publication of our affirmative preliminary determination

on May 27, 1994 (58 FR 27532), the following events have occurred.

On May 27, 1994, we issued a deficiency letter to Oxidaciones

Organicas, C.A. (Oxidor), respondent in this investigation, regarding

its response to Section D of the antidumping questionnaire. (Section D

requests information on cost of production and constructed value.)

On June 6, 1994, Oxidor informed the Department that it would no

longer be participating in the investigation due to the cost and time

required to fully respond to the supplemental cost questionnaire and

participate in the verification.

Scope of Investigation

The product covered by this investigation is PA, an aromatic

synthetic organic chemical usually produced from a primary

petrochemical called orthoxylene, although it is sometimes produced

from naphthalene. PA is predominately used in the production of

plasticizers, unsaturated polyester resins, and alkyd resins, which in

turn are generally used to produce plastics and paints. This

investigation covers PA sold in either flaked or molten form.

PA is classifiable under subheading 2917.35.00 of the Harmonized

Tariff Schedule of the United States (HTSUS). The HTSUS 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 is May 1, 1993, to October 31, 1993.

Best Information Available

As noted in the ``Case History'' section of this notice, Oxidor

informed the Department that it would not reply to the Department's

Section D deficiency letter and that it would not participate in

verification. Section 776(c) of the Act provides that whenever a party

refuses or is unable to produce information requested in a timely

manner and in the form required, or otherwise significantly impedes an

investigation, the Department shall use the best information otherwise

available (BIA). We have done so in this investigation.

In assigning BIA, the Department applies a two-tiered methodology

based on the degree of a respondent's cooperation. Under this

methodology, the Department imposes the most adverse rate upon those

respondents who refuse to cooperate or otherwise significantly impede

the proceeding. See Final Determination: Antifriction Bearings (other

than Tapered Roller Bearings) and Parts thereof from the Federal

Republic of Germany, 54 FR 18992, 19033 (1989). The Department's two-

tiered methodology for assigning BIA has been upheld by the U.S. Court

of Appeals for the Federal Circuit. (See Allied-Signal v. U.S., 996

F.2d 1185 (Fed. Cir. 1993) (CAFC) (June 22, 1993); see also Krupp Stahl

AG et al. v. U.S., 822 F. Supp. 789 (CIT 1993).)

Because Oxidor refused to reply to the Department's deficiency

questionnaire and refused verification, we find it has been

uncooperative in this investigation. As BIA for Oxidor, we are

assigning the highest margin alleged in the petition because that

margin is higher than the only calculated rate in this investigation.

The highest margin in the petition is 52.00 percent. (See Initiation of

Antidumping Duty Investigations: Phthalic Anhydride from Brazil,

Hungary, Israel, Mexico and Venezuela (58 FR 60847, November 18, 1993),

for a description of the United States price and foreign market value

used to calculate the above-mentioned margin.)

Continuation of Suspension of Liquidation

In accordance with section 735(c)(4) of the Act, we are directing

the Customs Service to continue to suspend liquidation of all entries

of PA from Venezuela, as defined in the ``Scope of Investigation''

section of this notice, that are entered, or withdrawn from warehouse,

for consumption on or after the date of publication of this notice in

the Federal Register. The Customs Service shall require a cash deposit

or posting of a bond equal to the margins below on all entries of PA

from Venezuela. The suspension of liquidation will remain in effect

until further notice. The estimated dumping margins are as follows:

------------------------------------------------------------------------

Margin

Manufacturer/producer/exporter percent

------------------------------------------------------------------------

Oxidaciones Organicas, C.A.................................... 52.00

All Others.................................................... 52.00

------------------------------------------------------------------------

International Trade Commission Notification

In accordance with section 735(d) of the Act, we have notified the

International Trade Commission (ITC) of our determination. As 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 45 days.

If the ITC determines that material injury or threat of material

injury does not exist, the proceeding will be terminated and all

securities posted as a result of the suspension of liquidation will be

refunded or cancelled. However, if the ITC determines that such injury

does exist, we will issue an antidumping duty order directing Customs

officers to assess antidumping duties on PA from Venezuela entered or

withdrawn from warehouse, for consumption on or after the date of

suspension of liquidation.

Notification to Interested Parties

This notice also serves as the only reminder to parties subject to

administrative protective order (APO) of their responsibility covering

the return or destruction of proprietary information disclosed under

APO in accordance with 19 CFR 353.34(d). Failure to comply is a

violation of the APO.

This determination is published pursuant to section 735(d) of the

Act (19 U.S.C. 1673d(d)), and 19 CFR 353.20(a)(4).

Dated: August 3, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-19540 Filed 8-9-94; 8:45 am]

BILLING CODE 3510-DS-P