[Federal Register: February 27, 2003 (Volume 68, Number 39)]
[Notices]
[Page 9055-9057]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27fe03-51]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-822-805]
Notice of Final Determination of Sales at Less Than Fair Value:
Urea Ammonium Nitrate Solutions from Belarus
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Final Determination of Sales at Less Than Fair Value.
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EFFECTIVE DATE: February 27, 2003.
FOR FURTHER INFORMATION CONTACT: Tom Martin or Tom Futtner, AD/CVD
Enforcement, Office 4, Group II, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3936, and (202) 482-3814, respectively.
SUPPLEMENTARY INFORMATION:
Final Determination
We determine that urea ammonium nitrate solutions (UANS) from
Belarus are being sold, or are likely to be sold, in the United States
at less than fair value (LTFV), as provided in section 735 of the Act.
The estimated margins of sales at LTFV are shown in the Final
Determination of Investigation section of this notice.
Case History
On October 3, 2002, the Department of Commerce (the Department)
published the preliminary determination of sales at LTFV in the
antidumping duty investigation of UANS from Belarus. See Notice of
Preliminary Determination of Sales at Less Than Fair Value: Urea
Ammonium Nitrate Solutions From Belarus, 67 FR 62015 (October 3, 2002)
(Preliminary Determination). Since the preliminary determination, the
following events have occurred.
On November 7, 2002, the Department published a postponement of the
final determination of sales at LTFV in the antidumping duty
investigation of UANS from Belarus. See Postponement of the Final
Determinations in the Less-Than-Fair-Value Investigations of Urea
Ammonium Nitrate Solutions From Belarus, the Russian Federation, and
Ukraine, 67 FR 67823 (November 7, 2002).
During November 2002, the Department conducted a verification of
Grodno Production Republican Enterprise's (Grodno) sales and factors of
production (FOP) information. See Memorandum from Tom Martin, Import
Compliance Specialist, through Tom Futtner, Program Manager, to The
File, ``Verification of Sales and Factors of Production Information
Reported by Grodno Production Republican Enterprise,'' dated December
20, 2002 (Verification Report). Both the petitioner and Grodno filed
surrogate value information and data on November 26, 2002.\1\
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\1\ The petitioner in this investigation is the Nitrogen
Solutions Fair Trade Committee. Its members consist of CF
Industries, Inc., Mississippi Chemical Corporation, and Terra
Industries, Inc.
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On November 1, 2002, the petitioner requested a hearing pursuant to
19 CFR 351.301(e). However, no hearing was held in this investigation
because the petitioner withdrew its request for a hearing.
In a memorandum filed on December 23, 2002, we altered the time
limit for submitting case briefs pursuant to 351.309(c)(1)(i) of the
Department's regulations. We received a case brief from the petitioner
on January 7, 2003. On January 14, 2003, the respondent, through the
Embassy of the Republic of Belarus, requested, and the Department
granted, an extension for Grodno to submit comments. The respondent
provided comments on January 17, 2003.
Scope of the Investigation
For purposes of this investigation, the product covered is all
mixtures of urea and ammonium nitrate in aqueous or ammoniacal
solution, regardless of nitrogen content by weight, and regardless of
the presence of additives, such as corrosion inhibitors. The
merchandise subject to this investigation is classified in the
Harmonized Tariff Schedule of the United States (HTSUS) under item
number 3102.80.00.00. Although the HTSUS item number is provided for
convenience and customs purposes, the written description of the
merchandise under investigation is dispositive.
Period of Investigation
The period of investigation (POI) is October 1, 2001, through March
31, 2002.
Analysis of Comments Received
All issues raised in the comments by parties to this proceeding and
to which we have responded are listed in the Appendix to this notice
and addressed in the Memorandum from Bernard T. Carreau, Deputy
Assistant Secretary, to Faryar Shirzad, Assistant Secretary, ``Issues
and Decision Memorandum for the Final Determination in the Antidumping
Duty Investigation of Urea Ammonium Nitrate Solutions from Belarus C
October 1, 2001, through March 31, 2002,'' dated concurrently with this
notice (Decision Memorandum), which is hereby adopted by this notice.
Parties can find a complete discussion of the issues raised in this
investigation and the corresponding recommendations in this public
memorandum which is on file in the Central Records Unit (CRU), room B-
099 of the main Department building. In addition, a complete version of
the Decision Memorandum can be accessed directly on the Web at http://
ia.ita.doc.gov.
The paper copy and
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electronic version of the Decision Memorandum are identical in content.
Non-Market Economy
The Department has treated Belarus as a nonmarket economy (NME)
country in all previous antidumping investigations. See Notice of Final
Determination of Sales at Less Than Fair Value: Steel Concrete
Reinforcing Bars From Belarus, 66 FR 33528 (June 22, 2001). In
accordance with section 771(18)(C)(i) of the Act, any determination
that a foreign country is an NME country shall remain in effect until
revoked. Therefore, pursuant to section 771(18)(C)(i) of the Act, the
Department has continued to treat Belarus as an NME country for the
purposes of this investigation.
Separate Rates
In our Preliminary Determination, we found that the only responding
company, Grodno, met the criteria for the application of separate,
company-specific antidumping duty rates. We have not received any other
information since the preliminary determination which would warrant
reconsideration of our separates rates determination with respect to
this company. For a complete discussion of the Department's
determination that the respondent is entitled to a separate rate, see
the Preliminary Determination. We have also addressed an allegation
made by the petitioner in the Decision Memorandum at Comment 4.
The Belarus-Wide Rate
In all NME cases, the Department makes a rebuttable presumption
that all exporters or producers located in the NME country comprise a
single exporter under common government control, ``the NME entity.''
The Department assigns a single NME rate to the NME entity unless an
exporter can demonstrate eligibility for a separate rate.
In the Preliminary Determination, Grodno qualified for a separate
rate. Furthermore, information on the record of this investigation
indicates that Grodno accounted for all imports of subject merchandise
during the POI. Since Grodno is the only known Belarusian exporter of
UANS to the United States during the POI, we have calculated a Belarus-
wide rate for this investigation based on the weighted-average margin
determined for Grodno.
Surrogate Country
When the Department is investigating imports from an NME country,
section 773(c)(1) of the Act directs the Department to base normal
value (NV) on the NME producer's FOP, valued in a comparable market
economy that is a significant producer of comparable merchandise. For
purposes of the final determination, we continue to find that South
Africa remains the appropriate surrogate country for Belarus. We
received comments from the respondent pertaining to our selection of
South Africa, which are discussed in the accompanying Decision
Memorandum at Comment 1.
Verification
As provided in section 782(i) of the Act, we verified the
information submitted by the respondent for use in our final
determination. We used standard verification procedures including
examination of relevant accounting and production records, and original
source documents provided by the respondents. For changes from the
Preliminary Determination as a result of verification, see the Changes
Since the Preliminary Determination section below.
Changes Since the Preliminary Determination
Based on our findings at verification and on our analysis of the
comments received, we have made adjustments to the calculation
methodologies. We are valuing the river water FOP and the steam FOPs
separately from surrogate overhead value, and we are applying truck
freight rather than rail freight to three FOPs. These adjustments are
discussed in detail in the (1) Decision Memorandum, (2) Memorandum from
the Team to the File, ``Additional Surrogate Country Values Used for
the Final Determination of the Antidumping Duty Investigation of Urea
Ammonium Nitrate Solutions from Belarus,'' dated February 18, 2003, and
(3) Memorandum from the Team to the File, ``Calculation Memorandum for
the Final Determination,'' dated February 18, 2003.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B)(ii) of the Act, we are
directing the U.S. Customs Service (Customs) to continue suspension of
liquidation of entries of subject merchandise from Belarus that are
entered, or withdrawn from warehouse, for consumption on or after
October 3, 2002 (the date of publication of the Preliminary
Determination in the Federal Register). We will instruct the Customs
Service to require a cash deposit or the posting of a bond equal to the
weighted-average amount by which the NV exceeds the U.S. price, as
indicated in the chart below. These suspension-of-liquidation
instructions will remain in effect until further notice.
Final Determination of Investigation
We determine that the following weighted-average percentage margins
exist for the period October 1, 2001, through March 31, 2002:
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Weighted-Average
Manufacturer/exporter [chyph]Margin (percent)
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Grodno Production Republican Enterprise... 226.82
Belarus-Wide Rate......................... 226.82
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The Belarus-wide rate applies to all entries of the subject
merchandise except for entries from Grodno.
U.S. International Trade Commission Notification
In accordance with section 735(d) of the Act, we have notified the
U.S. International Trade Commission (ITC) of our determination. As our
final determination is affirmative, the ITC will determine, within 45
days, whether these imports are materially injuring, or threaten
material injury to, the U.S. industry. If the ITC determines that
material injury, or threat of material injury does not exist, the
proceeding will be terminated and all securities posted will be
refunded or canceled. If the ITC determines that such injury does
exist, the Department will issue an antidumping duty order directing
Customs officials to assess antidumping duties on all imports of
subject merchandise entered for consumption on or after the effective
date of the suspension of liquidation.
Notification Regarding Administrative Protective Order (APO)
This notice also serves as a reminder to parties subject to APO of
their responsibility concerning the
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disposition of proprietary information disclosed under APO in
accordance with 19 CFR 351.305. 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 determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act.
Dated: February 19, 2003.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix--Issues in Decision Memorandum
1. Whether Lithuania Should Be Used as a Surrogate Country
2. Whether Catalysts Should Be Valued Separately
3. Whether Water and Water-based Inputs (Steam and Raw Condensate)
Should Be Valued Separately
4. Whether Grodno Should Be Issued a Separate Rate
[FR Doc. 03-4648 Filed 2-26-03; 8:45 am]
BILLING CODE 3510-DS-S