Initiation of Antidumping Duty Investigation: Sodium Azide From Japan

DEPARTMENT OF COMMERCE

[A-588-839]

Initiation of Antidumping Duty Investigation: Sodium Azide From

Japan

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: February 9, 1996.

FOR FURTHER INFORMATION CONTACT: John Beck at (202) 482-3464 or

Jennifer Stagner at (202) 482-1673, Office of Antidumping

Investigations, Import Administration, International Trade

Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue, N.W., 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 January 16, 1996, the Department of Commerce (the Department)

received a petition filed in proper form by the American Azide

Corporation (the petitioner), the sole U.S. producer of sodium azide. A

supplement to the petition was filed on January 29, 1996.

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

alleges that imports of sodium azide from Japan 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, a U.S.

industry.

The petitioner states that it has standing to file the petition

because it is an interested party, as defined under section 771(9)(C)

of the Act.

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 (1) the domestic producers

or workers who support the petition account for at least 25 percent of

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

producers or workers who support the petition account for 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.

A review of the data provided in the petition and other information

readily available to the Department indicates that the petitioner is

the sole producer of sodium azide in the United States. The Department

received no expressions of opposition to the petition from any

interested party. Accordingly, the Department determines that this

petition is supported by the domestic industry.

Scope of the Investigation

The product covered by this investigation is sodium azide

(NaN3) regardless of use, and whether or not combined with silicon

oxide (SiO2) or any other inert flow assisting agent. The

merchandise under investigation is currently classifiable under item

2850.00.50.00 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

investigation is dispositive.

Export Price and Normal Value

The petitioner based export price on delivered prices in the United

States quoted by a Japanese producer. These prices were adjusted by the

petitioner for U.S. and foreign inland freight, ocean freight, U.S.

duties, and the U.S. trading company mark-up.

The petitioner based normal value on delivered prices in Japan

quoted by a Japanese producer. The unit price quotes denominated in

Japanese yen were converted by the petitioner to U.S. dollars using the

exchange rate in effect at the beginning of the third quarter of 1995.

An adjustment was made for foreign inland freight.

Based on comparisons of export price to normal value, the estimated

dumping margins for sodium azide from Japan range from 58.50 to 65.80

percent.

Fair Value Comparisons

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

believe that imports of sodium azide from Japan are being, or likely to

be, sold at less than fair value. If it becomes necessary at a later

date to consider this petition as a source of facts available under

section 776 of the Act, we may review further the calculations.

Initiation of Investigation

We have examined the petition on sodium azide and have found that

it meets the requirements of section 732 of the Act, including the

requirements concerning allegations of the material injury or threat of

material injury to the domestic producers of a domestic like product 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 sodium azide from Japan are being, or

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

Unless extended, we will make our preliminary determination by June 24,

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 Japan. We will attempt to provide copies of the

public versions of the petition to all the exporters named in the

petition.

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 March 1, 1996, whether there is a

reasonable indication that imports of sodium azide from Japan are

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

U.S. industry. A negative ITC determination will result in the

investigation being terminated; otherwise, this investigation will

proceed according to statutory and regulatory time limits.

Dated: February 5, 1996.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 96-2911 Filed 2-8-96; 8:45 am]

BILLING CODE 3510-DS-P