Titanium Sponge From Russia; Preliminary Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

[A-821-803]

Titanium Sponge From Russia; Preliminary Results of Antidumping

Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty

administrative review.

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SUMMARY: In response to a request from Titanium Metals Corporation

(TIMET), Berezniki Titanium-Magnesium Works (AVISMA), Interlink Metals

and Chemicals, Inc. (Interlink), and RMI Titanium Company (RMI), a U.S.

producer of titanium sponge, a Russian Producer of titanium sponge, an

unrelated third-country reseller of titanium sponge, and a U.S.

importer of titanium sponge, respectively, the Department of Commerce

(the Department) is conducting an administrative review of the

antidumping finding on titanium sponge from Russia. The review covers

AVISMA and exports of the subject merchandise to the United States for

the period August 1, 1993 through July 31, 1994.

We have preliminarily determined that AVISMA is a non-shipper for

the purposes of this review because it did not have sufficient

knowledge at the time of sale that subject merchandise was destined for

the United States. If these preliminary results are adopted in our

final results of review we will instruct the U.S. Customs service

(Customs) to maintain the cash deposit rate of 83.96 percent, which is

the rate established in the final results of the most recent

administrative review of the antidumping finding on titanium sponge

from Russia.

Interested parties are invited to comment on these preliminary

results.

EFFECTIVE DATE: September 26, 1995.

FOR FURTHER INFORMATION CONTACT: David Genovese or Zev Primor, Office

of Antidumping Compliance, International Trade Administration, U.S.

Department of Commerce, Washington, D.C. 20230, telephone: (202) 482-

5254.

SUPPLEMENTARY INFORMATION:

Background

On August 28, 1968, the Department of the Treasury published an

antidumping finding on titanium sponge from the Union of Soviet

Socialist Republics (USSR) (33 FR 12138). In December 1991, the USSR

divided into fifteen independent states. To conform to these changes,

the Department changed the original antidumping finding into fifteen

findings applicable to the Baltic states and the former Republics of

the USSR (57 FR 36070, August 12, 1992).

On August 3, 1994, the Department published a notice of

``Opportunity to Request an Administrative Review'' (59 FR 39545) of

the antidumping finding on titanium sponge from Russia. On August 31,

1994, TIMET, AVISMA, Interlink, and RMI, requested an administrative

review. The Department initiated the review on September 16, 1994 (59

FR 47609), covering the period August 1, 1993, through July 31, 1994.

[[Page 49577]]

Applicable Statute and Regulations

The Department is conducting this review in accordance with section

751 of the Tariff Act of 1930, as amended (the Act). Unless otherwise

indicated, all citations to the statute and to the Department's

regulations are in reference to the provisions as they existed on

December 31, 1994.

Scope of the Review

The merchandise covered by this review is titanium sponge from

Russia. Titanium sponge is chiefly used for aerospace vehicles,

specifically, in the construction of compressor blades and wheels,

stator blades, rotors, and other parts in aircraft gas turbine engines.

Imports of titanium sponge are currently classifiable under the

harmonized tariff schedule (HTS) subheading 8108.10.50.10. The HTS

subheading is provided for convenience and Customs purposes; our

written description of the scope of this finding is dispositive.

Preliminary Results of Review

In response to the Department's request for U.S. sales information,

AVISMA reported that it did not export titanium sponge to the United

States during the period of review. AVISMA reported that it produced

and sold titanium sponge during the period of review but that it sold

to unrelated intermediaries without knowledge of the ultimate

destination of the merchandise.

In a subsequent submission dated May 16, 1995, AVISMA argued that,

while as a general matter it did not know the ultimate destination of

merchandise purchased by intermediaries, it was aware at the time of

sale that at least a portion of its sales to an unrelated third-country

reseller was to be resold to a customer in the United States.

Therefore, AVISMA argued that the Department should conduct a review of

AVISMA's sales for the 1993/94 period of review.

Also in the May 16, 1995, submission, Interlink requested that the

Department continue the review regardless of the degree of knowledge

possessed by AVISMA, because Interlink's request for a review of

AVISMA's U.S. sales should be construed by the Department as a request

for a review of Interlink's shipments of AVISMA titanium sponge to RMI.

We determined, (1) that AVISMA had insufficient knowledge at the

time of sale that the merchandise was destined for the United States,

and, therefore, such sales cannot be used as the basis of U.S. price;

and, (2) that sales by Interlink are not covered by this review because

a review of Interlink's sales was not requested. Based on the preceding

determinations, the Department concluded that AVISMA was a non-shipper

during the period of review, and, since AVISMA was the only company for

which a review was requested, it was appropriate to proceed with

preliminary results of review based on no shipments to the United

States.

Accordingly, the effective cash deposit rate for Russian titanium

sponge that entered the United States during the period of review will

continue to be the rate from the most recent review, which is 83.96

percent.

Parties to the proceeding may request a hearing within 10 days of

publication of this notice. Any hearing, if requested, will be held 44

days after the date of publication of this notice, or the first workday

thereafter and will be limited to those issues raised in the case

briefs and/or written comments. Case briefs and/or written comments

from interested parties may be submitted not later than 30 days after

the date of publication. Rebuttal briefs and rebuttals to written

comments, limited to the issues raised in the case briefs and comments,

may be filed not later than 37 days after the date of publication. The

Department will publish the final results of this administrative

review, including the results of its analysis of any written comments

or case briefs.

Furthermore, the following deposit requirement will be effective

for all shipments of the subject merchandise, entered or withdrawn from

warehouse, for consumption on or after the publication date of the

final results of this administrative review, as provided by section

751(a)(1) of the Act: The cash deposit rate for entries of titanium

sponge from Russia will be that rate established in the final results

of this administrative review. These deposit requirements, when

imposed, shall remain in effect until publication of the final results

of the next administrative review.

This notice also serves as a preliminary reminder to importers of

their responsibility under 19 CFR 353.26 to file a certificate

regarding the reimbursement of antidumping duties prior to liquidation

of the relevant entries during this review period. Failure to comply

with this requirement could result in the Secretary's presumption that

reimbursement of antidumping duties occurred and the subsequent

assessment of double antidumping duties.

This administrative review and notice are in accordance with

section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22.

Dated: September 15, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 95-23791 Filed 9-25-95; 8:45 am]

BILLING CODE 3510-DS-P