Sparklers From the People's Republic of China; Preliminary Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

[A-570-804]

Sparklers From the People's Republic of China; 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 by the petitioners, the Elkton

Sparkler Company and the Diamond Sparkler Company, the Department of

Commerce (the Department) is conducting an administrative review of the

antidumping duty order on sparklers from the People's Republic of China

(PRC). This review covers one manufacturer, Guangxi Native Produce

Import and Export Corporation, Beihai Fireworks and Firecrackers Branch

(Guangxi), of the subject merchandise, and the review period June 1,

1994, through May 31, 1995.

Guangxi failed to submit a response to our questionnaire. As a

result, we have preliminarily determined to use facts otherwise

available for cash deposit and appraisement purposes.

Interested parties are invited to comment on these preliminary

results.

Parties who submit argument in this proceeding are requested to

submit with the argument (1) a statement of the issue and (2) a brief

summary of the argument.

EFFECTIVE DATE: April 8, 1996.

FOR FURTHER INFORMATION CONTACT: Matthew Blaskovich or Zev Primor,

Office of Antidumping Compliance, Import Administration, International

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

Constitution Avenue, N.W., Washington, DC 20230; telephone: (202) 482-

5831/4114.

SUPPLEMENTARY INFORMATION:

Background

On June 6, 1995, the Department published in the Federal Register

(60 FR 29821) a notice of ``Opportunity to Request an Administrative

Review'' of the antidumping duty order on sparklers from the PRC. On

June 20, 1995, the petitioners requested, in accordance with 19 CFR

353.22 (a), that we conduct an administrative review of Guangxi for the

period June 1, 1994, through May 31, 1995. We initiated the review on

August 16, 1995 (60 FR 42501).

The initiation notice indicated that the review would cover Guangxi

and conditionally all other exporters of this merchandise. The

Department is now conducting this review in accordance with section 751

of the Tariff Act of 1930, as amended by the Uruguay Round Agreements

Act (the Tariff Act).

Scope of the Review

The products covered by this administrative review are sparklers

from the PRC. Sparklers are fireworks, each comprising a cut-to-length

wire, one end of which is coated with a chemical mix that emits bright

sparks while burning. Sparklers are currently classifiable under

subheading 3604.10.00 of the Harmonized Tariff Schedules (HTS). The HTS

subheadings are provided for convenience and customs purposes. The

written description remains dispositive as to the scope of this

proceeding.

The review covers Guangxi and the period June 1, 1994, through May

31, 1995.

Use of Facts Available

On September 7, 1995, we mailed Guangxi and the Chinese Chamber of

Commerce, Guangxi Province (CCC), a questionnaire seeking information

necessary to conduct a review of any shipments of the subject

merchandise made to the United States during the period of review

(POR). While Guangxi was required to respond to this questionnaire, we

requested that the CCC forward the questionnaire to any PRC

manufacturers which, according to our criteria, should be entitled to

receive a separate antidumping duty rate. In addition, a short

questionnaire was sent to the CCC (which forwarded our questionnaires

to the China Chamber of Commerce of Importers & Exporters of Food

Stuffs, Native Produce & Animal by Products), the Embassy of the

People's Republic of China, and the (Chinese) Ministry of Foreign Trade

and Economic Cooperation. This questionnaire sought to ascertain

whether Guangxi or any other PRC manufacturer shall be entitled to a

separate rate by demonstrating both de jure and de facto absence of

central government control with respect to exports.

The questionnaires were due on November 7, 1995. We did not receive

a response from any party. As a result of Guangxi failing to submit a

response to our questionnaire, the necessary information to issue

preliminary results for the POR is not on the record. The Department

finds that, in not responding to the questionnaire, Guangxi failed to

cooperate by not acting to the best of its ability to comply with a

request for information from the Department. Therefore, we must base

our preliminary results on facts otherwise available (section 776(a) of

the Tariff Act).

Where the Department must base the entire dumping margin for a

respondent in an administrative review on the facts available because

that respondent failed to cooperate, section 776(b) authorizes the

Department to use an inference adverse to the interests of that

respondent in choosing the facts available. Section 776(b) also

authorizes the Department to use as adverse facts available information

derived from the petition, the final determination, a previous

administrative review, or other information placed on the record.

Accordingly, in this case, we preliminarily assign to Guangxi a margin

of 93.54 percent, the margin calculated in the remand of the less-than-

fair-value (LTFV) final determination (See Sparklers from the People's

Republic of China: Adverse Decision and Amendment to Final

Determination of Sales at Less Than Fair Value and Antidumping Duty

Order in Accordance with Decision Upon Remand, 58 FR 40624 (July 29,

1993)).

Because information from prior segments of the proceeding

constitutes secondary information, section 776(c) provides that the

Department shall, to the extent practicable, corroborate that secondary

information from independent sources reasonable at its disposal. The

Statement of

[[Page 15465]]

Administrative Action (SAA) provides that ``corroborate'' means simply

that the Department will satisfy itself that the secondary information

it uses has probative value.

To corroborate secondary information, the Department will, to the

extent practicable, examine the reliability and relevance of the

information to be used. However, unlike other types of information,

such as input costs or selling expenses, there are no independent

sources for calculated dumping margins. The only source for margins is

administrative determinations. Thus, in an administrative review, if

the Department chooses as total adverse facts available a calculated

dumping margin from a prior segment of the proceeding, it is not

necessary to question the reliability of the margin for that time

period. With respect to the relevance aspect of corroboration, however,

the Department will consider information reasonably at its disposal as

to whether there are circumstances that would render a margin not

relevant.

Where circumstances indicate that the selected margin is not

appropriate as adverse facts available, the Department will disregard

the margin and determine an appropriate margin (see e.g., Fresh Cut

Flowers from Mexico; Preliminary Results of Antidumping Duty

Administrative Review, (60 FR 49567) where the Department disregarded

the highest margin in that case as adverse BIA because the margin was

based on another company's uncharacteristic business expense resulting

in an unusually high margin). In this case, we have used the highest

rate from any prior segment of the proceeding, 93.54 percent rate.

Preliminary Results of the Review

As a result of our review, we preliminarily determine that a margin

of 93.54 percent exists for Guangxi for the period June 1, 1994,

through May 31, 1995.

Parties to the proceeding may request disclosure within five days

of the date of publication of this notice. Any interested party may

request a hearing within 10 days of publication. 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 issues raised in the case

briefs and comments, may be filed not later than 37 days after the date

of publication. Any hearing, if requested, will be held 44 days after

the date of publication, or the first workday thereafter. The

Department will publish the final results of the administrative review,

including the results of its analysis of issues raised in any such

written comments or at a hearing. Upon completion of this

administrative review, the Department will issue appraisement

instructions directly to the Customs Service.

Furthermore, the following deposit requirements will be effective

upon publication of the final results of administrative review for all

shipments of sparklers from the PRC, entered, or withdrawn from

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

provided by section 751(a)(1) of the Tariff Act: (1) the cash deposit

rate for Guangxi will be the PRC country-wide rate of 93.54 percent;

(2) for previously reviewed or investigated companies that received

separate rates not listed above, the cash deposit rate will continue to

be the company-specific rate published for the most recent period; (3)

the cash deposit rate for any non-PRC exporter will be the rate

established for that firm; and (4) the cash deposit rate for all other

PRC manufacturers or exporters will be 93.54 percent. These

requirements, when imposed, shall remain in effect until publication of

the final results of the next administrative review.

This notice 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 Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR

353.22.

Dated: March 28, 1996.

Susan G. Esserman,

Assistant Secretary for Import Administration

[FR Doc. 96-8511 Filed 4-5-96; 8:45 am]

BILLING CODE 3510-DS-P