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

DEPARTMENT OF COMMERCE

[A-570-841]

Initiation of Antidumping Duty Investigation: Manganese Sulfate

From the People's Republic of China

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: December 28, 1994.

FOR FURTHER INFORMATION CONTACT:

Mark Wells or Louis Apple, 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) 482-3003 or (202) 482-1769, respectively.

Initiation of Investigation

The Petition

On November 30, 1994, we received a petition filed in proper form

by American MicroTrace Corporation (the petitioner). On December 1 and

14, 1994, the petitioner submitted additional information supporting

their allegation. In accordance with 19 CFR 353.12, the petitioner

alleges that manganese sulfate from the People's Republic of China

(PRC) is being, or is 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 these imports materially injure,

or threaten material injury to, a United States industry.

The petitioner also alleges that critical circumstances, as defined

under 19 CFR 353.16, exist with respect to manganese sulfate from the

PRC.

The petitioner has 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 because 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 manganese sulfate,

including manganese sulfate monohydrate (MnSO4H2O), and any

other forms whether or not hydrated, without regard to form, shape, or

size, the addition of other elements, the presence of other elements as

impurities, and/or the method of manufacture. The subject merchandise

is currently classifiable under subheading 2833.29.50 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.

United States Price and Foreign Market Value

United States Price

The petitioner based United States price (USP) on f.o.b, c.i.f, and

c.f.r. price quotes from Chinese exporters of the subject merchandise.

In calculating USP, petitioner deducted: foreign inland freight, ocean

freight, and marine insurance. The petitioner based inland freight on

the distance from the PRC producers of the subject merchandise to the

PRC port of export and valued freight transportation using Indian

surrogate data.

Foreign Market Value

A. Non-Market Economy Determination

The petitioner contends that the PRC is a non-market economy (NME)

country within the meaning of section 771(18)(A) of the Act. The

Department has determined in previous investigations that the PRC is an

NME, and the presumption of NME status continues for purposes of

initiation of this investigation. See e.g., Final Determination of

Sales at Less than Fair Value: Certain Paper Clips from the PRC, 59 FR

51168 (October 7, 1994).

In accordance with section 773(c) of the Act, foreign market value

(FMV) in NME cases is based on NME producers' factors of production,

valued in a market economy country. Consistent with Department practice

(see Initiation of Antidumping Duty Investigation: Glycine from the

PRC, 59 FR 38435 (July 28, 1994)) absent evidence that a particular NME

country government determines which of its factories shall produce for

export to the United States, we intend, for purposes of this

investigation, to base FMV only on those factories that produced

manganese sulfate sold to the United States during the period of

investigation (POI).

In the course of this investigation, parties will have the

opportunity to address this NME determination and provide relevant

information and argument related to the issues of the PRC's NME status

and granting of separates rates to individual exporters.

B. FMV Calculations

The petitioner based the factors of production on the production

process used by PRC producers of the subject merchandise and valued

these factors with publicly available published information from the

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

accepted India as a surrogate country because in past cases the

Department has determined that its economy is at a level of development

comparable to the PRC and petitioner has provided evidence that, in

this case, it is a significant producer of comparable merchandise, as

required by section 773(c)(4) of the Act.

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

material costs, energy, labor and a percentage for factory overhead,

all based on published information from India. Petitioner then added a

percentage for selling, general and administrative expenses also based

on published information from India, as well as an amount for packing.

Finally, petitioner added the statutory minimum of eight percent for

profit.

Petitioner has alleged, based on information submitted in the

petition, dumping margins ranging from 142.25 percent to 801.26

percent. We will carefully reexamine these margins if the use of best

information available becomes an issue in this investigation.

Initiation of Investigation

We have examined the petition on manganese sulfate 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 manganese sulfate from the PRC are being, or are

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

Additionally, we have examined petitioner's allegation that

critical circumstances exist with respect to manganese sulfate from the

PRC and have determined they have met the requirements of 19 CFR

353.16. Therefore, we are also initiating an investigation as to

whether critical circumstances exist with respect to imports of

manganese sulfate from the PRC.

International Trade Commission (ITC) Notification

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

action and we have done so.

Preliminary Determination by the ITC

The ITC will determine by January 17, 1995, whether there is a

reasonable indication that an industry in the United States is

materially injured, or is threatened with material injury, by reason of

imports of manganese sulfate from the PRC. A negative ITC determination

will result in a termination of the investigation; otherwise, the

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: December 20, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-31961 Filed 12-27-94; 8:45 am]

BILLING CODE 3510-DS-M