Industrial Nitrocellulose From the Republic of Korea; Notice of Final Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-805]

Industrial Nitrocellulose From the Republic of Korea; Notice of

Final Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Final Results of Antidumping Duty Administrative

Review.

-----------------------------------------------------------------------

SUMMARY: On July 10, 1998, the Department of Commerce (the Department)

published the preliminary results of its administrative review of the

antidumping duty order on industrial nitrocellulose (INC) from the

Republic of Korea (Korea). This review covers one manufacturer/exporter

of the subject merchandise to the United States during the period July

1, 1996, through June 30, 1997.

We gave interested parties an opportunity to comment on our

preliminary results. Based on our analysis of the comments received, we

have changed the final results from those presented in the preliminary

results.

EFFECTIVE DATE: November 9, 1998.

FOR FURTHER INFORMATION CONTACT:

Todd Peterson or Thomas Futtner, Import Administration, International

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

Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-

4195 or 482-3814, respectively.

Applicable Statute and Regulations

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). In addition, unless otherwise

indicated, all citations to the Department's regulations are to 19 CFR

Part 351 (62 FR 27296, May 19, 1997).

SUPPLEMENTARY INFORMATION:

Background

On July 10, 1998, the Department published in the Federal Register

(63 FR 37329) the preliminary results of the administrative review of

the antidumping order on industrial nitrocellulose (INC) from Korea, 55

FR 28267 (July 10, 1990). On August 10, 1998, we received a case brief

from Daesang Corporation (respondent) as well as comments from Hercules

Incorporated (petitioner). Based on our analysis of the comments

received, we changed the final results from those presented in the

preliminary results.

Scope of Review

Imports covered by this review are shipments of INC from Korea. INC

is a dry, white amorphous synthetic chemical with a nitrogen content

between 10.8 and 12.2 percent, and is produced from the reaction of

cellulose with nitric acid. INC is used as a film-former in coatings,

lacquers, furniture finishes, and printing inks. The scope of this

order does not include explosive grade nitrocellulose, which has a

nitrogen content of greater than 12.2 percent.

INC is currently classified under Harmonized Tariff System (HTS)

subheading 3912.20.00. While the HTS item number is provided for

convenience and Customs purposes, the written description remains

dispositive as to the scope of the product coverage. This review covers

one manufacturer/exporter of industrial nitrocellulose, Daesang

Corporation, and period July 1, 1996, through June 30, 1997.

Analysis of Comments Received

Comment 1

Daesang states that the Department made a clerical error in its

preliminary results computer programming by erroneously adding both the

commission offset (OFFSETU) and U.S. indirect selling expenses

(INDEXUS) in its calculation of foreign net price expressed in dollars

(FUPDOL). Daesang states that OFFSETU correctly accounted for home

market commissions on two of the three matching control numbers

(CONNUMs) for the U.S. sales, which had no commissions. Adding the

variable INDEXUS in the calculation of FUPDOL would lead to a double

counting of the commission offset. While petitioner did not comment on

this specific issue, petitioner supports the Department's Preliminary

Determination.

Department's Position

We agree with Daesang Corporation that home market commissions or

U.S. indirect selling expenses, whichever is less, have been accounted

for in U.S. offsets (OFFSETU) applied to FUPDOL, and have revised our

programming language accordingly for these final results.

Final Results of the Review

As a result of our review, we determine that the following margin

exists:

[[Page 60303]]

Daesang Corporation.......................................... 2.1

The Department shall determine, and the Customs Services shall

assess, antidumping duties on all appropriate entires. Individual

differences between export price and normal value may vary from the

percentage stated above. We have calculated an importer-specific duty

assessment rate based on the ratio of the total amount of antidumping

duties calculated for the examined sales to the total entered value of

the same sales. The rates will be assessed uniformly on all entries of

that particular company made during the POR. The Department will issue

appraisement instructions directly to the Customs Service.

The following deposit requirements will be effective upon

publication of this notice of final results of review for all shipments

of industrial nitrocellulose from Korea entered, or withdrawn from

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

provided for by section 751(a)(2)(C) of the Act: (1) The cash deposit

rate for the reviewed company will be the rate listed above; (2) for

previously reviewed or investigated companies not listed above, the

cash deposit rate will continue to be the company-specific rate

published for the most recent period; (3) if the exporter is not a firm

covered in this review, a prior review, or the original less-than fair-

value (LTFV) investigation, but the manufacturer is, the cash deposit

rate will be the rate established for the most recent period for the

manufacturer of the merchandise; and (4) for all other producers and/or

exporters of this merchandise, the cash deposit rate shall be 66.30

percent, the ``all others'' rate established in the LTFV investigation

(55 FR 21055, May 22, 1990). These deposit requirements shall remain in

effect until publication of the final results of the next

administrative review.

This notice serves as a final reminder to importers of their

reponsibility under 19 CFR 351.402(f) 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 doubled antidumping duties.

This notice also serves as the only reminder to parties subject to

administrative protective order (APO) of their responsibility

concerning the disposition of proprietary information disclosed under

APO in accordance with 19 CFR 353.32 of the Department's regulations.

Timely notification of return/destruction of APO materials or

conversion to judicial protective order is hereby requested. Failure to

comply with the regulations and the terms of an APO is a sanctionable

violation.

This administrative review and notice are in accordance with

sections 751(a)(1) and 777(i)(1) of the Act.

Dated: October 30, 1998.

Robert S. LaRussa,

Assistant Secretary, Import Administration.

[FR Doc. 98-29851 Filed 11-6-98; 8:45 am]

BILLING CODE 3510-DS-M