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NEWS RELEASE 02-100; OCTOBER 22, 2002 October 22, 2002
News Release 02-100
Invs. Nos. 701-TA-426 and 731-TA-984-985 (F)

SULFANILIC ACID FROM HUNGARY AND PORTUGAL INJURES U.S. INDUSTRY, SAYS ITC

The United States International Trade Commission (ITC) today determined that an industry in the United States is materially injured by reason of imports of sulfanilic acid from Hungary that the Department of Commerce has determined are subsidized and those from Hungary and Portugal that the Department of Commerce also has determined are sold in the United States at less than fair value.

Chairman Deanna Tanner Okun, Vice Chairman Jennifer A. Hillman, and Commissioners Lynn M. Bragg, Marcia E. Miller, and Stephen Koplan voted in the affirmative.

As a result of the Commission's affirmative determinations, the Department of Commerce will issue countervailing duty and antidumping duty orders on imports of this product from Hungary and an antidumping duty order on imports of this product from Portugal.

The Commission's public report Sulfanilic Acid from Hungary and Portugal (Invs. Nos. 701-TA- 426 and 731-TA-984-985 (Final), USITC Publication 3554, November 2002) will contain the views of the Commission and information developed during the investigations.

Copies may be obtained after November 22, 2002, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.


FACTUAL HIGHLIGHTS

Sulfanilic Acid from Hungary and Portugal
Investigations No. 701-TA-426 and 731-TA-984-985 (Final)

Product Description: For purposes of this investigation, the product covered is all grades and forms of sulfanilic acid. The three generally available types of sulfanilic acid are technical grade sulfanilic acid, refined grade sulfanilic acid, and acid grade sulfanilic acid (which also is considered to be a refined grade). The principal difference between the grades involve the undesirable quantities of residual aniline and alkali insoluble materials (as contaminants) present in the sulfanilic acid. All grades are available as free-flowing powders. Sulfanilic acid is a synthetic organic chemical produced from the direct sulfonation of aniline and sulfuric acid. Sulfanilic acid is used to produce optical brightening agents, food colorants, and other synthetic organic dyes, and certain concrete additives. The merchandise subject to these investigations is provided for in subheading 2921.42.22 of the Harmonized Tariff Schedule of the United States.

Status of Proceedings:
1.      Type of investigations: Final countervailing duty and antidumping.
2.      Petitioner: Nation Ford Chemical Co., Fort Mill, SC.
3.      Investigations instituted by USITC: September 28, 2001.
4.      Hearing: September 18, 2002.
5.      USITC vote: October 22, 2002.
6.      USITC notification of determination to the Department of Commerce: November 1, 2002.

U.S. Industry:
1.      Number of U.S. firms in 2001: One.
2.      Production: 1/
3.      Employment of production and related workers: 1/
4.      U.S. producer's U.S. shipments: 1/
5.      U.S. apparent consumption: 1/
6.      Ratio of quantity of total imports to U.S. apparent consumption: 1/  

U.S. Imports:
1.        Quantity of subject imports during 2001 (1,000 pounds): 1/  
2.        Value of subject imports during 2001 ($1,000): 1/  
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1/ Withheld to avoid disclosure of business proprietary information.
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