Preliminary Determination of Sales at Not Less Than Fair Value: Furfuryl Alcohol From Thailand

DEPARTMENT OF COMMERCE

[A-549-812]

Preliminary Determination of Sales at Not Less Than Fair Value:

Furfuryl Alcohol From Thailand

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: December 16, 1994.

FOR FURTHER INFORMATION CONTACT: Edward Easton or Greg Thompson, Office

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

of Commerce, 14th Street and Constitution Avenue, N.W., Washington,

D.C. 20230; telephone (202) 482-1777 or 482-2336, respectively.

Preliminary Determination

We preliminarily determine that imports of furfuryl alcohol from

Thailand are not being, nor 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). We have calculated a preliminary less

than fair value margin of zero percent for Thai furfuryl alcohol sold

in the United States during the period of investigation.

Case History

Since the initiation of this investigation on June 20, 1994, (59 FR

32953, June 27, 1994), the following events have occurred.

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

issued an affirmative preliminary injury determination in this case (59

FR 38201, July 27, 1994).

On July 19, 1994, officials of the Department of Commerce (the

Department) visited the petitioner's facilities to observe the furfuryl

alcohol production process for purposes of developing the

questionnaire.

On August 3, 1994, we issued the antidumping questionnaire to Indo-

Rama Chemicals (Thailand) Ltd. (IRCT), which accounted for at least 60

percent of the exports of the subject merchandise to the United States

during the period of investigation (POI). In August 1994, the

Department conducted a questionnaire presentation in Thailand.

IRCT submitted responses to the relevant sections of the

Department's questionnaire on September 6, 1994, and September 21,

1994. On September 16, and October 3, 1994, the petitioner submitted

comments regarding deficiencies in IRCT's questionnaire responses. A

supplemental questionnaire was issued on October 6, 1994. On October

14, 1994, the respondent submitted its response to this supplemental

questionnaire.

At the request of the petitioner, on October 18, 1994, the

Department postponed its preliminary determination until no later than

December 9, 1994 (59 FR 53634, October 25, 1994).

On October 14, 1994, the petitioner alleged that the respondent was

selling furfuryl alcohol in the home market at prices below the cost of

production (COP). On November 21, 1994, based on the petitioner's

allegation, the Department initiated an investigation of sales below

the COP (see decision memorandum from Richard Moreland to Barbara

Stafford dated November 21, 1994). The Department issued IRCT Section D

of our questionnaire on November 28, 1994.

The respondent had originally submitted purchase price (PP) data in

response to Section C of our questionnaire. However, as more

information was put on the record, it became unclear whether prices to

the United States should have been reported on a PP or an exporter's

sales price (ESP) basis. Accordingly, on December 2, 1994, the

Department requested that the respondent submit ESP data. (On several

occasions prior to December 2, we had suggested that respondent submit

this ESP data if respondent thought it was necessary (see memo to file

from Greg Thompson dated December 2, 1994).) On December 7, 1994, the

respondent submitted the ESP data. Based upon the information that is

now on the record, we are treating IRCT's U.S. sales as ESP

transactions.

Scope of Investigation

The product covered by this investigation is furfuryl alcohol

(C4H3OCH2OH). furfuryl alcohol is a primary alcohol, and

is colorless or pale yellow in appearance. It is used in the

manufacture of resins and as a wetting agent and solvent for coating

resins, nitrocellulose, cellulose acetate, and other soluble dyes.

The product subject to this investigation is classifiable under

subheading 2932.13.00 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 proceeding is dispositive.

Period of Investigation

The period of investigation (POI) is December 1, 1993, through May

31, 1994.

Such or Similar Comparisons

We have determined that the products covered by this investigation

constitute a single category of such or similar merchandise. IRCT

reported that it sold merchandise in the home market identical to that

sold in the United States. Accordingly, no difference in merchandise

information was reported in IRCT's sales listings. In accordance with

19 CFR 353.58, we made comparisons at the same level of trade.

Fair Value Comparisons

To determine whether sales by IRCT of furfuryl alcohol 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.

United States Price

For the purpose of this preliminary determination, we have found

that all of IRCT's U.S. sales to the first unrelated purchaser took

place after importation into the United States. Therefore, we based USP

on ESP prices, in accordance with section 772(c) of the Act.

We calculated IRCT's ESP sales based on FOB U.S. storage or

delivered prices to unrelated customers in the United States. In

accordance with section 772(e) of the Act, we made deductions, where

appropriate, for the following movement charges: foreign brokerage,

foreign inland freight, ocean freight, marine insurance, U.S. brokerage

and handling, and U.S. inland freight. We also made deductions, where

appropriate, for credit and warehousing expenses, and indirect selling

expenses incurred in the United States and in Thailand. Finally, we

added duty drawback to the USP calculations in accordance with section

772(d) of the Act.

We adjusted USP for taxes in accordance with our practice, pursuant

to the U.S. Court of International Trade (CIT) decision in Federal-

Mogul Corp. v. United States, 834 F. Supp. 1991 (CIT 1993). (See Notice

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

Aluminate Cement, Cement Clinker and Flux from France, 59 FR 14136

(March 25, 1994).)

In those cases where the respondent failed to provide information

on a given expense, we relied upon the highest charge listed in the

U.S. database for that expense as the best information available (BIA),

in accordance with section 776(c) of the Act. In those cases where the

respondent failed to provide any information on duty drawback, we made

no addition to USP as BIA.

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 the subject

merchandise to the volume of third country sales of subject

merchandise, in accordance with section 773(a)(1)(B) of the Act. Since

the total volume of subject merchandise sold by IRCT in Thailand during

the POI was greater than five percent of the aggregate volume of third

country sales for such or similar merchandise, we determined that the

home market was viable within the meaning of 19 CFR 353.48(a).

Therefore, we based FMV on home market sales.

In accordance with 19 CFR 353.58, we compared U.S. sales to home

market sales made at the same level of trade.

In accordance with 19 CFR 353.46, we calculated FMV based on FOB

storage or delivered prices to unrelated customers. We made deductions,

where appropriate, for inland freight and insurance, and unloading

charges. We also deducted direct selling expenses including technical

services, credit, and commissions in accordance with 19 CFR 353.56(a).

Finally, we deducted the weighted-average home market indirect selling

expenses. The deduction for home market indirect selling expenses was

capped by U.S. indirect selling expenses, in accordance with 19 CFR

353.56(b) (1) and (2).

We deducted home market packing and added U.S. packing costs, in

accordance with section 773(a)(1) of the Act.

We adjusted for value-added taxes in accordance with our practice.

(See the ``United States Price'' section of this notice, above.)

Cost of Production

Based on our analysis of the petitioner's allegation, we found

``reasonable grounds to believe or suspect'' that IRCT made home market

sales below its COP within the meaning of section 773(b) of the Act.

The Department initiated an investigation to determine whether IRCT

made home market sales at prices below its COP over an extended period

of time. Because IRCT's COP questionnaire response is not due until

December 27, 1994, it is not possible to consider this information for

the preliminary determination. This information will be considered in

our final determination.

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 in accordance with 19 CRR 353.60.

Preliminary Margin Calculation

Based on the calculation methodology outlined above, we

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

furfuryl alcohol from Thailand.

Verification

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

information that we determine is acceptable for use 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 before the later of

120 days after the date of this preliminary determination or 45 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(b), case briefs or other written

comments in at least 10 copies must be submitted to the Assistant

Secretary no later than February 3, 1995, and rebuttal briefs no later

than February 7, 1995. A public hearing, if requested, will be held on

February 9, 1995, at 1:00 p.m. at the U.S. Department of Commerce, Room

1851, 14th Street and Constitution Avenue, N.W., Washington, D.C.

20230. Parties should confirm by telephone the time, date, and place of

the hearing 48 hours before the scheduled time. In accordance with 19

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

the briefs.

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: December 9, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-30984 Filed 12-15-94; 8:45 am]

BILLING CODE 3510-DS-P