Preliminary Determination of Sales at Less than Fair Value: Glycine from the People's Republic of China

DEPARTMENT OF COMMERCE

[A-570-836]

Preliminary Determination of Sales at Less than Fair Value:

Glycine from the People's Republic of China

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: November 16, 1994.

FOR FURTHER INFORMATION CONTACT: Susan Strumbel, Office of

Countervailing Investigations, Import Administration, U.S. Department

of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC

20230; telephone (202) 482-1442.

PRELIMINARY DETERMINATION: We preliminarily determine that imports of

glycine from the PRC are being, or are 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). The estimated margins are

shown in the ``Suspension of Liquidation'' section of this notice.

Case History

Since the initiation of this investigation on July 28, 1994 (59 FR

38435), the following events have occurred.

On August 15, 1994, the U.S. International Trade Commission (ITC)

issued an affirmative preliminary injury determination in this case.

On August 18, 1994, the China Chamber of Commerce for Metals,

Minerals, and Chemicals (CCCMMC) was given a questionnaire

presentation. At this time, the DOC requested CCCMMC to provide a list

of the producers and exporters of glycine in the PRC.

On September 7, 1994, the CCCMMC requested an extension of the

questionnaire responses until September 23, 1994. Counsel on behalf of

Sinochem Shanghai Pudong Trading Corporation (Sinochem) and Dastech

Inc. (Dastech) requested a further extension until October 3, 1994. On

October 3, 1994, the Department once again requested that CCCMMC

identify the universe of glycine producers and exporters in the PRC.

On October 5, 1994, the Department contacted counsel for Sinochem

and Dastech and was informed that these companies no longer intended to

participate. On October 6, 1994, counsel for the petitioners requested

that the Department issue an expedited preliminary determination. On

October 17, 1994, the Department sent a letter to the CCCMMC requesting

confirmation of the glycine producers' and exporters' intention not to

participate in this investigation. On October 18, 1994, we received a

letter in response to the Department's October 3, 1994 letter, stating

that ``until now nobody wanted to defend the case.'' The letter did not

provide any information with regard to the universe of glycine

producers and exporters in the PRC. We have received no response to our

October 17, 1994, letter.

Scope of Investigation

The product covered by this investigation is glycine which is a

free-flowing crystalline material, like salt or sugar. Glycine is

produced at varying levels of purity and is used as a sweetnener/taste

enhancer, a buffering agent, reabsorbable amino acid, chemical

intermediate, and a metal complexing agent. Glycine is currently

classified under subheading 2922.49.4020 of the Harmonized Tariff

schedule of the United States (``HTSUS''). The scope of this

investigation includes glycine of all purity levels.

Although the HTSUS subheading is provided for convenience and

Customs purposes, our written description of the scope of this

proceeding is dispositive.

Period of Investigation

The period of investigation is February 1994, through July 1994.

Best Information Available

Because no producers or exporters of glycine responded to our

questionnaire, we are basing our determination on best information

available (BIA) pursuant to section 776(c) of the Act, which provides

that the Department shall use BIA when a company identified by the

Department as a respondent refuses to provide requested information.

In determining what rate to use as BIA, the Department follows a

two-tiered methodology, whereby the Department normally assigns lower

margins to those respondents who cooperated in an investigation and

margins based on more adverse assumptions for those respondents who did

not cooperate in an investigation. According to this methodology, as

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

Certain Hot-Rolled Carbon Steel Flat Products, Certain Cold-Rolled

Carbon Steel Flat Products, and Certain Cut-to-Length Carbon Steel

Plate from Belgium, 58 FR 37083 (July 9, 1993), when a company refuses

to provide the information requested in the form required, or otherwise

significantly impedes the Department's investigation, it is appropriate

for the Department to assign to that company the higher of 1) the

highest margin alleged in the petition, or 2) the highest calculated

rate of any respondent in the investigation. (See Allied Signal

Aerospace Co. v. United States, 996 F. 2d 1185, 1191-92 (Fed. Cir.

1993).) Because there were no cooperative respondents in this

investigation, we are assigning to all exporters, as BIA, a margin of

155.89 percent, the highest margin calculated in the petition, adjusted

for methodological errors as explained in the Department's initiation

notice.

Suspension of Liquidation

In accordance with section 733(d)(1) of the Act, we are directing

the Customs Service to suspend liquidation of all entries of glycine

from the PRC 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 estimated preliminary dumping margin, as

shown below. The suspension of liquidation will remain in effect until

further notice.

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

Margin

Manufacturer/producer/exporter percentage

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

All Companies.............................................. 155.89

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

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 before the later of

120 days after the date of this preliminary determination or 45 days

after our final determination.

Public Comment

In accordance with 19 CFR 353.38(b), we will hold a public hearing,

if requested, to afford interested parties an opportunity to comment on

arguments raised in case or rebuttal briefs. Interested parties who

wish to request a hearing, or to participate if one is requested, 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. If this

investigation proceeds normally, we will make our final determination

within 75 days of the signing of this preliminary determination.

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

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

Dated: November 8, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-28306 Filed 11-15-94; 8:45 am]

BILLING CODE 3510-DS-P