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

DEPARTMENT OF COMMERCE

[A-570-847]

Initiation of Antidumping Duty Investigation: Persulfates From

the People's Republic of China

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: August 6, 1996.

FOR FURTHER INFORMATION CONTACT: James Terpstra, Irene Darzenta, or

Howard Smith at (202) 482-3965, 482-6320, and 482-5193 respectively,

Import Administration, International Trade Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue, NW,

Washington, DC 20230.

Initiation of Investigation

The Applicable Statute

Unless otherwise indicated, all citations to the statute are

references to the provisions effective January 1, 1995, the effective

date of the amendments made to the Tariff Act of 1930 (``the Act'') by

the Uruguay Round Agreements Act (``URAA'').

The Petition

On July 11, 1996, the Department of Commerce (``the Department'')

received a petition filed in proper form by FMC Corporation (``FMC'' or

``petitioner''). On July 22 and 25, 1996, the petitioner submitted a

supplement to the petition in response to the Department's request for

additional information. The supplement contained updated normal values

and revised margin calculations.

In accordance with section 732(b) of the Act, the petitioner

alleges that imports of persulfates from the People's Republic of China

(``PRC'') are being, or are likely to be, sold in the United States at

less than fair value within the meaning of section 731 of the Act, and

that such imports are materially injuring, or threatening material

injury to, the U.S. industry.

Because the petitioner is an interested party, as defined under

section 771(9)(C) of the Act, it has standing to file the petition.

[[Page 40818]]

Determination of Industry Support for the Petition

Section 732(c)(4)(A) of the Act requires the Department to

determine, prior to the initiation of an investigation, that a minimum

percentage of the domestic industry supports an antidumping petition. A

petition meets these minimum requirements if the domestic producers or

workers who support the petition account for (1) at least 25 percent of

the total production of the domestic like product; and (2) more than 50

percent of the production of the domestic like product produced by that

portion of the industry expressing support for, or opposition to, the

petition.

The petitioner is the only known U.S. producer of persulfates.

Accordingly, the Department determines that the petition is supported

by the domestic industry.

Scope of Investigation

The products covered by this petition are persulfates, including

ammonium, potassium, and sodium persulfates. The chemical formulae for

these persulfates are, respectively, (NH4)2S2O8,

K2S2O8, and Na2S2O8. Ammonium and

potassium persulfates are currently classified under subheading

2833.40.60 of the Harmonized Tariff Schedule of the United States

(``HTSUS''). Sodium persulfate is classified under HTSUS subheading

2833.40.20. Although the HTSUS subheadings are provided for convenience

and customs purposes, our written description of the scope of this

investigation is dispositive.

Export Price

The petitioner based export prices for ammonium, potassium, and

sodium persulfates on price quotes obtained from U.S. importers.

Petitioner reduced these prices to account for estimated importer mark-

ups, and for U.S. duties and customs fees, ocean freight, insurance,

foreign inland freight and foreign handling fees.

Normal Value

In previous investigations, the Department has determined that the

PRC is a nonmarket economy (``NME'') country within the meaning of

section 771(18) of the Act. See, e.g., Final Determination of Sales at

Less Than Fair Value: Manganese Metal from the People's Republic of

China (60 FR 56045, 56047 (November 6, 1995)). In accordance with

section 771(18)(C), the presumption of NME status for the PRC shall

continue for purposes of the initiation of this investigation. In the

course of this investigation, all parties will have the opportunity to

provide relevant information related to the NME status of the PRC and

the assignment of separate rates to individual exporters. (See, e.g.,

Final Determination of Sales at Less Than Fair Value: Silicon Carbide

from the PRC (59 FR 22585 (May 2, 1994))).

In antidumping investigations in which the comparison market is not

a market economy, section 773(c) of the Act requires that the normal

value of the foreign like product be based on the producer's factors of

production valued in a surrogate market economy country or countries

that is/are a significant producer of comparable merchandise and at a

level of economic development comparable to the NME country. Publicly

available published information from India was used by the petitioner

to value the factors of production because India is the only persulfate

producer among surrogate countries that the Department typically uses

for the PRC. The petitioner based the fixed factory overhead, selling,

general and administrative, and profit elements of its normal value

calculation on data from an annual report of an Indian producer of

hydrogen peroxide. According to the petitioner, it relied on data from

a producer of hydrogen peroxide because public financial data for

Indian persulfate producers was not available, and the production

processes for hydrogen peroxide and persulfates are comparable.

The petitioner based the quantities of factors (i.e., raw

materials, labor, and energy) used in production of ammonium,

potassium, and sodium persulfates on the experience of certain PRC

producers. The petitioner relied on its own production experience where

PRC usage factors were not available. See, Initiation of Antidumping

Duty Investigation: Certain Brake Drums and Certain Brake Rotors from

the People's Republic of China (61 FR 14740 (April 3, 1996)). The

petitioner maintains that it is reasonable to use its own production

experience because the production process is the same whether the

persulfates are produced in the United States or in the PRC.

Based on comparisons of the export prices with normal values

constructed from factors of production, the calculated dumping margins

range from 15.87 percent to 182.37 percent. If it becomes necessary at

a later date to consider the petition as a source for facts available,

we may re-examine the information in the petition and, if necessary,

revise the margin calculations therein.

Normal Value Comparisons

Based on the data provided by the petitioner, there is reason to

believe that imports of persulfates from the PRC are being, or are

likely to be, sold at less than fair value.

Initiation of Investigation

We have examined the petition on persulfates from the PRC and have

found that it meets the requirements of section 732 of the Act,

including the requirements concerning allegations of material injury or

threat of material injury to the domestic producers of domestic like

products by reason of the complained-of imports, allegedly sold at less

than fair value. Therefore, we are initiating an antidumping duty

investigation to determine whether imports of persulfates from the PRC

are being, or are likely to be, sold in the United States at less than

fair value. Unless the investigation is extended, we will make our

preliminary determination by December 18, 1996.

Distribution of Copies of the Petition

In accordance with section 732(b)(3)(A) of the Act, a copy of the

public version of the petition has been provided to the representatives

of the Government of the PRC.

International Trade Commission (``ITC'') Notification

We have notified the ITC of our initiation, as required by section

732(d) of the Act.

Preliminary Determination by the ITC

The ITC will determine by August 26, 1996, whether there is a

reasonable indication that imports of persulfates from the PRC are

causing material injury, or threatening to cause material injury, to a

U.S. industry. A negative ITC determination in this investigation will

result in the investigation being terminated; otherwise, the

investigation will proceed according to statutory and regulatory time

limits.

Dated: July 31, 1996.

Robert S. LaRussa,

Acting Assistant Secretary for Import Administration.

[FR Doc. 96-19997 Filed 8-5-96; 8:45 am]

BILLING CODE 3510-DS-P