[Federal Register Volume 75, Number 135 (Thursday, July 15, 2010)]
[Notices]
[Pages 41143-41148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17299]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-806]
Silicon Metal from the People's Republic of China: Preliminary
Results and Preliminary Rescission, in Part, of Antidumping Duty
Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from interested parties, the
Department of Commerce (``Department'') is conducting an administrative
review of the antidumping duty order on silicon metal from the People's
Republic of China (``PRC''). The period of review (``POR'') is June 1,
2008, through May 31, 2009. This administrative review covers one
mandatory respondent and two respondents that claim they did not ship
or sell subject merchandise to the United States during the POR.
We found no margin for the U.S. sales subject to this
administrative review. If these preliminary results are adopted in our
final results of review, we will instruct U.S. Customs and Border
Patrol (``CBP'') to liquidate the appropriate entries without regard to
antidumping duties.
We invite interested parties to comment on these preliminary
results. Parties who submit comments are requested to submit with each
argument a statement of the issue and a brief summary of the argument.
We intend to issue the final results of this review no later than 120
days from the date of publication of this notice.
FOR FURTHER INFORMATION CONTACT: Melissa Blackledge or Howard Smith,
AD/CVD Operations, Office 4, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
3518, and (202) 482-5193, respectively.
SUPPLEMENTARY INFORMATION: The Department received a timely request
from Petitioner, Globe Metallurgical Inc. (``Petitioner''), in
accordance with 19 CFR 351.213(b), for an administrative review of the
antidumping duty order on silicon metal from the PRC of three
companies: Datong Jinneng Industrial Silicon Co., Ltd. (``Datong
Jinneng''),\1\ Jiangxi Gangyuan Silicon Industry Co., Ltd. (``Jiangxi
Gangyuan''),\2\ and Shanghai Jinneng International Trade Co., Ltd.
(``Shanghai Jinneng''). The Department also received a timely request
from Shanghai Jinneng and Datong Jinneng (Shanghai Jinneng's affiliated
supplier and producer of subject merchandise) for an administrative
review of Shanghai Jinneng. On July 29, 2009, the Department published
a notice of initiation of an antidumping duty administrative review on
silicon metal from the PRC, in which it initiated a review of Datong
Jinneng, Jiangxi Gangyuan, and Shanghai Jinneng. See Initiation of
Antidumping and Countervailing Duty Administrative Reviews and Deferral
of Administrative Review, 74 FR 37690 (July 29, 2009) (``Initiation
Notice'').
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\1\ The abbreviation ``Inc.'' incorrectly appeared after
``Datong Jinneng Industrial Silicon Co.'' in the Initiation Notice.
The abbreviation ``Ltd.'' should have been used.
\2\ We have used the abbreviation ``Co.'' rather than
``Company'', which was used in the Initiation Notice, because
``Co.'' is used in the Automated Customs System Module.
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On September 11, 2009, the Department issued the antidumping
questionnaire to Shanghai Jinneng based on the results of a CBP import
data query placed on the record on August 17, 2009, which indicated
that only Shanghai Jinneng made sales of subject merchandise during the
POR. Both Jiangxi Gangyuan, and Datong Jinneng reported that they had
no entries of subject merchandise during the POR. Between October 2009
and May 2010, Shanghai Jinneng responded to the Department's
questionnaire and supplemental questionnaires and Petitioner commented
on Shanghai Jinneng's responses.
In response to the Department's December 9, 2009, letter providing
parties with an opportunity to submit comments regarding surrogate
country and surrogate value selection,\3\ Shanghai Jinneng and
Petitioner filed surrogate country and surrogate value comments from
January 2010 through June 2010.
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\3\ See Letter from Howard Smith, Program Manager, Office 4, to
All Interested Parties, ``Antidumping Duty Administrative Review of
Silicon Metal from the People's Republic of China (PRC),'' dated
December 9, 2009.
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On March 4, 2010, the Department extended the deadline for the
issuance of the preliminary results of the administrative review until
July 7, 2010. See Silicon Metal From the People's Republic of China:
Extension of Time Limit for the Preliminary Results of Antidumping Duty
Administrative Review, 75 FR 9869 (March 4, 2010).
Scope of the Order
The product covered by the order is silicon metal containing at
least 96.00 but less than 99.99 percent of silicon by weight, and
silicon metal with a higher aluminum content containing between 89 and
96 percent silicon by weight. The subject merchandise is currently
classifiable under item numbers 2804.69.10 and 2804.69.50 of the
Harmonized Tariff Schedule of the United States (``HTSUS'') as a
chemical product, but is commonly referred to as a metal.
Semiconductor-grade silicon (silicon metal containing by weight not
less than 99.99 percent of silicon and provided for in subheading
2804.61.00 of the HTSUS) is not subject to this order. This order is
not limited to silicon metal used only as an alloy agent or in the
chemical industry. Although the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
merchandise is dispositive.
Intent To Rescind the Administrative Review, in Part
As noted above, Jiangxi Gangyuan and Datong Jinneng reported that
they did not have any entries of subject merchandise during the POR. To
test these claims, the Department ran a CBP data query and issued a no-
shipment inquiry to CBP asking it to provide any
[[Page 41144]]
information that contradicted the companies' claims. The Department has
not obtained any evidence contradicting Jiangxi Gangyuan's and Datong
Jinneng's claims and, thus, has preliminarily rescinded this
administrative review with respect to these companies pursuant to 19
CFR 351.213(d)(3):
Non-Market Economy Country Status
In every case conducted by the Department involving the PRC, the
PRC has been treated as a non-market economy (``NME'') country. In
accordance with section 771(18)(C)(i) of the Tariff Act of 1930, as
amended (the ``Act''), any determination that a foreign country is an
NME country shall remain in effect until revoked by the administering
authority. None of the parties to this proceeding have contested such
treatment. Accordingly, the Department calculated normal value (``NV'')
in accordance with section 773(c) of the Act, which applies to NME
countries.
Separate Rates
In proceedings involving NME countries, the Department has a
rebuttable presumption that all companies within the country are
subject to government control and, thus, should be assessed a single
antidumping duty rate. It is the Department's policy to assign all
exporters of merchandise subject in an NME country this single rate
unless an exporter can demonstrate that it is sufficiently independent
so as to be entitled to a separate rate. Exporters can demonstrate this
independence through the absence of both de jure and de facto
governmental control over export activities. The Department analyzes
each entity exporting the subject merchandise under a test set out in
the Notice of Final Determination of Sales at Less Than Fair Value:
Sparklers from the People's Republic of China, 56 FR 20588 (May 6,
1991) (``Sparklers''), as further developed in Notice of Final
Determination of Sales at Less Than Fair Value: Silicon Carbide from
the People's Republic of China, 59 FR 22585 (May 2, 1994) (``Silicon
Carbide'' ). However, if the Department determines that a company is
wholly foreign-owned or located in a market economy, then a separate
rate analysis is not necessary to determine whether it is independent
from government control. See Notice of Final Determination of Sales at
Less Than Fair Value: Creatine Monohydrate from the People's Republic
of China, 64 FR 71104, 71105 (December 20, 1999) (where the respondent
was wholly foreign-owned, and thus, qualified for a separate rate).
Wholly Chinese-Owned
Shanghai Jinneng stated that it is a wholly Chinese-owned
company.\4\ Therefore, the Department must analyze whether this
respondent can demonstrate the absence of both de jure and de facto
governmental control over export activities.
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\4\ See Shanghai Jinneng's Section A Response (``SAR''), at 2.
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1. Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) an absence of restrictive stipulations associated with an
individual exporter's business and export licenses; (2) any legislative
enactments decentralizing control of companies; and (3) other formal
measures by the government decentralizing control of companies. See
Sparklers, 56 FR at 20589.
The evidence provided by Shanghai Jinneng supports a preliminary
finding of de jure absence of governmental control based on the
following: (1) there is an absence of restrictive stipulations
associated with the company's business and export licenses; (2) there
are applicable legislative enactments decentralizing control of PRC
companies; and (3) there are formal measures by the government
decentralizing control of PRC companies.\5\
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\5\ See Shanghai Jinneng's SAR, at 4-9.
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2. Absence of De Facto Control
The Department considers four factors in evaluating whether each
respondent is subject to de facto governmental control of its export
functions: (1) whether the export prices are set by or are subject to
the approval of a governmental agency; (2) whether the respondent has
authority to negotiate and sign contracts and other agreements; (3)
whether the respondent has autonomy from the government in making
decisions regarding the selection of management; and (4) whether the
respondent retains the proceeds of its export sales and makes
independent decisions regarding disposition of profits or financing of
losses. See Silicon Carbide, 59 FR at 22586-87; see also Notice of
Final Determination of Sales at Less Than Fair Value: Furfuryl Alcohol
From the People's Republic of China, 60 FR 22544, 22545 (May 8, 1995).
The Department has determined that an analysis of de facto control is
critical in determining whether respondents are, in fact, subject to a
degree of governmental control which would preclude the Department from
assigning separate rates.
We determine that the evidence on the record supports a preliminary
finding of de facto absence of governmental control with respect to
Shanghai Jinneng based on record statements and supporting
documentation showing that the company: 1) sets its own export prices
independent of the government and without the approval of a government
authority; 2) has the authority to negotiate and sign contracts and
other agreements; 3) has autonomy from the government regarding the
selection of management; and 4) retains the proceeds from its sales and
makes independent decisions regarding disposition of profits or
financing of losses.\6\
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\6\ See Shanghai Jinneng's SAR, at 10-13.
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The evidence placed on the record of this administrative review by
Shanghai Jinneng demonstrates an absence of de jure and de facto
government control with respect to the company's exports of the
merchandise under review, in accordance with the criteria identified in
Sparklers and Silicon Carbide. Therefore, we have preliminary granted
Shanghai Jinneng separate rate status.
Selection of a Surrogate Country
When the Department conducts an antidumping duty administrative
review of imports from a NME country, section 773(c)(1) of the Act
directs the Department to base NV, in most cases, on the NME producer's
factors of production (``FOP'') valued in a surrogate market-economy
country or countries considered appropriate by the Department. In
accordance with section 773(c)(4) of the Act, the Department will value
FOP using ``to the extent possible, the prices or costs of factors of
production in one or more market-economy countries that are - (A) at a
level of economic development comparable to that of the NME country,
and (B) significant producers of comparable merchandise.'' Further,
pursuant to 19 CFR 351.408(c)(2), the Department will normally value
FOP in a single country.
In the instant review, the Department identified India, Indonesia,
the Philippines, Colombia, Thailand, and Peru as a non-exhaustive list
of countries that are at a level of economic development comparable to
the PRC and for which good quality data is most
[[Page 41145]]
likely available.\7\ On January 13, 2010, the Petitioner and Shanghai
Jinneng proposed selecting India as the surrogate country because it is
at a level of economic development comparable to the PRC and the U.S.
Geological Survey, Minerals Yearbook (``USGS'') and Metal Bulletin,
Inc. indicate that India is a significant producer of comparable
merchandise.\8\ With respect to data considerations, in selecting a
surrogate country, it is the Department's practice that, ''. . . if
more than one country has survived the selection process to this point,
the country with the best factors data is selected as the primary
surrogate country.'' See Policy Bulletin 04.1: Non-Market Economy
Surrogate Country Selection Process, (March 1, 2004) (``Policy Bulletin
04.1'') available at http://ia.ita.doc.gov. Currently, the record
contains surrogate value information, including possible surrogate
financial statements, only from India. Thus, the Department is
preliminarily selecting India as the surrogate country on the basis
that: (1) it is at a comparable level of economic development to the
PRC, pursuant to 773(c)(4) of the Act; (2) it is a significant producer
of comparable merchandise; and (3) we have reliable data from India
that we can use to value the FOP. Therefore, we have calculated NV
using Indian prices, when available and appropriate, to value Shanghai
Jinneng's FOP. See Memorandum to the File through Howard Smith, Program
Manager, AD/CVD Operations, Office 4, from Melissa Blackledge, Senior
International Trade Analyst, regarding ``Antidumping Duty
Administrative Review of Silicon Metal from the People's Republic of
China: Selection of Factor Values,'' dated July 7, 2010 (``Surrogate
Value Memorandum''). In accordance with 19 CFR 351.301(c)(3)(ii),
interested parties may submit publicly-available information to value
FOP until 20 days after the date of publication of the preliminary
results.\9\
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\7\ See memorandum entitled, ``Request for a List of Surrogate
Countries for an Administrative Review of the Antidumping Duty Order
on Silicon Metal (``Silicon Metal'') from the People's Republic of
China (``PRC''),'' dated October 28, 2009.
\8\ See Shanghai Jinneng's January 13, 2010, and Respondent's
January 13, 2010 submissions at 6 and 2, respectively.
\9\ In accordance with 19 CFR 351.301(c)(1), for the final
results of this administrative review, interested parties may submit
factual information to rebut, clarify, or correct factual
information submitted by an interested party less than ten days
before, on, or after, the applicable deadline for submission of such
factual information. However, the Department notes that 19 CFR
351.301(c)(1) permits new information only insofar as it rebuts,
clarifies, or corrects information placed on the record. The
Department generally will not accept the submission of additional,
previously absent-from-the-record alternative surrogate value
information pursuant to 19 CFR 351.301(c)(1). See Glycine from the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review and Final Rescission, in Part, 72 FR 58809
(October 17, 2007), and accompanying Issues and Decision Memorandum
at Comment 2.
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Fair Value Comparisons
In accordance with section 777A(d)(2) of the Act, to determine
whether Shanghai Jinneng sold silicon metal to the United States at
less than NV, we compared the weighted-average export of the silicon
metal to the NV of the silicon metal, as described in the ``U.S.
Price,'' and ``Normal Value'' sections of this notice.
Export Price
The Department considered the U.S. prices of sales by Shanghai
Jinneng to be export prices (``EPs'') in accordance with section 772(a)
of the Act, because these were the prices at which the subject
merchandise was first sold before the date of importation by the
producer/exporter of the subject merchandise outside of the United
States to an unaffiliated purchaser in the United States. We calculated
EPs based on prices to unaffiliated purchaser(s) in the United States.
Shanghai Jinneng reported that it incurred value added tax
(``VAT'') and an export tax on subject merchandise. Petitioner argues
that the Department should deduct the export tax from U.S. price,
which, according to petitioner, is in accordance with the statute and
the Department's practice of calculating a tax-neutral dumping margin.
Shanghai Jinneng contends that in the 2007-2008 administrative review,
the Department concluded that its practice, which had been upheld by
the Court of International Trade (``CIT'') and Court of Appeals for the
Federal Circuit, is not to reduce U.S. price for tax payments by NME
respondents to NME governments. Shanghai Jinneng claims that the facts
related to export taxes in this administrative review are the same as
in the 2007-2008 administrative review. In the 2007-2008 administrative
review, the Department determined not to reduce U.S. price by the
amount of Chinese export tax and VAT on silicon metal exports. In this
instant review, consistent with Magnesium Corp. and the 2007-2008
administrative review, the Department is not reducing U.S. price for
export taxes or VAT in China. See Silicon Metal from the People's
Republic China: Final Results and Partial Rescission of Antidumping
Duty Administrative Review, 75 FR 1592 (Jan. 12, 2010), and
accompanying Issues and Decision Memorandum at Comment 1; Magnesium
Corp. of America, et. al. v. United States, et. al.,166 F.3d 1364,
1370-71 (Fed. Cir.1999) (``Magnesium Corp.'').
Normal Value
Section 773(c)(1) of the Act provides that the Department shall
determine NV using an FOP methodology if the merchandise is exported
from an NME country and the available information does not permit the
calculation of NV using home-market prices, third-country prices, or
constructed value under section 773(a) of the Act. When determining NV
in an NME context, the Department uses an FOP methodology because the
presence of government controls on various aspects of NMEs renders
price comparisons and the calculation of production costs invalid under
its normal methodologies. See Tapered Roller Bearings and Parts
Thereof, Finished or Unfinished, From the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative Review and
Notice of Intent to Rescind in Part, 70 FR 39744, 39754 (July 11,
2005), unchanged in Tapered Roller Bearings and Parts Thereof, Finished
and Unfinished, from the People's Republic of China: Final Results of
2003-2004 Administrative Review and Partial Rescission of Review, 71 FR
2517, 2521 (January 17, 2006). Under section 773(c)(3) of the Act, FOP
include, but are not limited to: (1) hours of labor required; (2)
quantities of raw materials employed; (3) amounts of energy and other
utilities consumed; and (4) representative capital costs. The
Department based NV on FOP reported by the respondent for materials,
energy, labor and packing.
Thus, in accordance with section 773(c) of the Act, we calculated
NV by adding together the values of the FOPs, general expenses, profit,
and packing costs.\10\ We calculated FOP values by multiplying the
reported per-unit factor-consumption rates by publicly available
surrogate values (except as discussed below). Specifically, we valued
material, labor, energy, and packing by multiplying the amount of the
factor consumed in producing subject merchandise by the average unit
surrogate value of the factor. In addition, we added freight costs to
the surrogate costs that we calculated for material inputs. We
calculated freight costs by multiplying surrogate freight rates by the
shorter of the reported distance from the domestic supplier to the
factory that produced the subject
[[Page 41146]]
merchandise or the distance from the nearest seaport to the factory
that produced the subject merchandise, as appropriate. This adjustment
is in accordance with the U.S. Court of Appeals for the Federal
Circuit's decision in Sigma Corp. v. United States, 117 F.3d 1401,
1407-08 (Fed. Cir. 1997). We increased the calculated costs of the FOPs
for surrogate general expenses and profit. See Analysis Memorandum at
4.
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\10\ We based the values of the FOPs on surrogate values (see
``Selected Surrogate Values'' section below).
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With respect to the application of the by-product offset to NV,
consistent with the Department's determination in the antidumping duty
investigation of diamond sawblades from the PRC, because our surrogate
financial statements contain no references to the treatment of by-
products and because Shanghai Jinneng reported that it sold silica
fume, a by-product, we will deduct the surrogate value of silica fume
from NV. This is consistent with accounting principles based on a
reasonable assumption that if a company sells a by-product, the by-
product necessarily incurs expenses for overhead, selling, general &
administrative expenses (``SG&A''), and profit. See, e.g., Final
Determination of Sales at Less Than Fair Value and Final Partial
Affirmative Determination of Critical Circumstances: Diamond Sawblades
and Parts Thereof from the People's Republic of China, 71 FR 29303 (May
22, 2006), and accompanying Issues and Decisions Memorandum at Comment
9, unchanged in Notice of Amended Final Determination of Sales at Less
Than Fair Value: Diamond Sawblades and Parts Thereof from the People's
Republic of China, 71 FR 35864 (June 22, 2006).
Selected Surrogate Values
In selecting the surrogate values, we considered the quality,
specificity, and contemporaneity of the data.
In selecting the best available information for valuing FOPs in
accordance with section 773(c)(1) of the Act, the Department's practice
is to select, to the extent practicable, surrogate values which are
non-export average values, most contemporaneous with the POR, product-
specific, and tax-exclusive. See, e.g., Pure Magnesium from the
People's Republic of China: Preliminary Results of 2007-2008
Antidumping Duty Administrative Review, 74 FR 27090 (June 8, 2009),
unchanged in Pure Magnesium from the People's Republic of China: Final
Results of Antidumping Duty Administrative Review, 74 FR 66089
(December 14, 2009). The record shows that the Indian import statistics
represent import data that are contemporaneous with the POR, product-
specific, and tax-exclusive. Thus, for these preliminary results, in
accordance with the Department's practice, the Department used data
from Indian Import Statistics in the Global Trade Atlas (``GTA'') and
other publicly available Indian sources in order to calculate surrogate
values for Shanghai Jinneng's FOPs (i.e., packing and raw material
inputs) except where listed below.
In past cases, it has been the Department's practice to value
various factors of production (``FOPs'') using import statistics of the
primary selected surrogate country from World Trade Atlas (``WTA''), as
published by Global Trade Information Services (``GTIS''). See Certain
Preserved Mushrooms from the People's Republic of China: Preliminary
Results of Antidumping Duty New Shipper Review, 74 FR 50946, 50950
(October 2, 2009), unchanged in Certain Preserved Mushrooms from the
People's Republic of China: Final Results of Antidumping Duty New
Shipper Review, 74 FR 65520 (Dec. 10, 2009).
However, in October 2009, the Department learned that Indian import
data obtained from the WTA, as published by GTIS, began identifying the
original reporting currency for India as the U.S. Dollar. The
Department then contacted GTIS about the change in the original
reporting currency for India from the Indian Rupee to the U.S. Dollar.
Officials at GTIS explained that while GTIS obtains data on imports
into India directly from the Ministry of Commerce, Government of India,
as denominated and published in Indian Rupees, the WTA software is
limited with regard to the number of significant digits it can manage.
Therefore, GTIS made a decision to change the original reporting
currency for Indian data from the Indian Rupee to the U.S. Dollar in
order to reduce the loss of significant digits when obtaining data
through the WTA software. GTIS explained that it converts the Indian
Rupee to the U.S. Dollar using the monthly Federal Reserve exchange
rate applicable to the relevant month of the data being downloaded and
converted. See Certain Oil Country Tubular Goods from the People's
Republic of China: Final Determination of Sales at Less Than Fair
Value, Affirmative Final Determination of Critical Circumstances, and
Final Determination of Targeted Dumping, 75 FR 20335 (April 19, 2010),
and accompanying Issues and Decision Memorandum at Comment 4.
However, the data reported in the Global Trade Atlas (``GTA'')
software, published by GTIS, reports import statistics, such as from
India, in the original reporting currency and thus these data
correspond to the original currency value reported by each country.
Additionally, the data reported in the GTA software are reported to the
nearest digit and thus there is not a loss of data by rounding, as
there is with the data reported by the WTA software. Consequently, the
Department will now obtain import statistics from GTA for valuing
various FOPs because the GTA import statistics are in the original
reporting currency of the country from which the data are obtained and
have the same level of accuracy as the original data released.
In accordance with the OTCA 1988 legislative history, the
Department continues to apply its long-standing practice of
disregarding surrogate values if it has a reason to believe or suspect
the source data may be subsidized.\11\ In this regard, the Department
has previously found that it is appropriate to disregard such prices
from India, Indonesia, South Korea and Thailand because we have
determined that these countries maintain broadly available, non-
industry specific export subsidies.\12\ Based on the existence of these
subsidy programs that were generally available to all exporters and
producers in these countries at the time of the POR, the Department
finds that it is reasonable to infer that all exporters from India,
Indonesia, South Korea and Thailand may have benefitted from these
subsidies. Additionally, we excluded from our calculations imports that
were labeled as originating from an unspecified country because we
could not determine whether they were from an NME country. Where we
could only obtain surrogate values that were not contemporaneous with
the POR, we inflated (or deflated) the surrogate values using the
Indian Wholesale Price
[[Page 41147]]
Index (``WPI'') as published in the International Financial Statistics
of the International Monetary Fund.
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\11\ Omnibus Trade and Competitiveness Act of 1988, Conf. Report
to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd Sess.
(1988) (``OTCA 1988'') at 590.
\12\ See e.g., Expedited Sunset Review of the Countervailing
Duty Order on Carbazole Violet Pigment 23 from India, 75 FR 13257
(March 19, 2010) and accompanying Issues and Decision Memorandum at
pages 4-5; Expedited Sunset Review of the Countervailing Duty Order
on Certain Cut-to-Length Carbon Quality Steel Plate from Indonesia,
70 FR 45692 (August 8, 2005) and accompanying Issues and Decision
Memorandum at page 4; See Corrosion-Resistant Carbon Steel Flat
Products from the Republic of Korea: Final Results of Countervailing
Duty Administrative Review, 74 FR 2512 (January 15, 2009) and
accompanying Issues and Decision Memorandum at pages 17, 19-20; See
Certain Hot-Rolled Carbon Steel Flat Products from Thailand: Final
Results of Countervailing Duty Determination, 66 FR 50410 (October
3, 2001) and accompanying Issues and Decision Memorandum at page 23.
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We used the following surrogate values in our preliminary results
of review (see Surrogate Value Memorandum for details). We valued
charcoal, petroleum coke, wood, carbon electrodes, aluminum scrap, and
polyethylene/polypropylene bags using June 2008 through May 2009
weighted-average Indian import values derived from the ``GTA.'' See
http://www.gtis.com/gta.htm. The Indian import statistics that we
obtained from the GTA were published by the Directorate General of
Commercial Intelligence and Statistics of the Ministry of Commerce and
Industry, Government of India, and are contemporaneous with the POR.
See Surrogate Value Memorandum at 1.
We valued quartz using the price of Grade I quartz with a silicon
dioxide content of 98 percent or higher from the Indian Bureau of
Mines' publication: 2007 edition of the Indian Minerals Yearbook (``IBM
Yearbook''). We inflated the value for quartz using the POR average WPI
rate. Id at 3.
We valued coal using Grade A coal prices obtained from the IBM
Yearbook. We inflated the value for coal using the POR average WPI
rate. Id.
We valued electricity using rates for large industries at 33KV, as
published by the Central Electricity Authority of the Government of
India in ``Electricity Tariff & Duty and Average Rates of Electricity
Supply in India'', dated March 2008. These electricity rates represent
actual country-wide, publicly available information on tax-exclusive
electricity rates charged to industries in India. As the rates listed
in this source became effective on a variety of different dates, we are
not adjusting the average value for inflation. For additional details,
see id.
We valued truck freight using a per-unit average rate calculated
from POR data on the following web site: http://www.infobanc.com/logistics/logtruck.htm. The logistics section of this website contains
inland freight truck rates between many large Indian cities. Id. at 8.
We valued rail freight using a per-unit average rate from http://www.indianrailways.gov.in, the Indian Ministry of Railways website. Id.
We inflated the value for rail freight using the POR average WPI rate.
Id.
Shanghai Jinneng claimed silica fume as a by-product offset since
it produced silica fume and sold a portion of this production during
the POR. We valued silica fume using GTA data for entries under HTS
2811.22 (silicon dioxide) from countries identified as silicon metal or
ferrosilicon producers by the USGS for ferroalloys published by the
U.S. Department of the Interior, dated September 2009. For a more
detailed discussion, see id. at 4.
For direct labor, indirect labor, and packing labor, pursuant to a
recent decision by the Court of Appeals for the Federal Circuit, we
have calculated an hourly wage rate to value the reported labor input
by averaging earnings and/or wages in countries that are economically
comparable to the PRC and that are significant producers of comparable
merchandise. For a more detailed discussion, see id.
Lastly, we valued selling, general and administrative expenses,
factory overhead costs, and profit using the contemporaneous 2008-2009
financial statements of FACOR Alloys Ltd., VBC Ferro Alloys Ltd., Sova
Ispat Alloys (Mega Projects) Ltd., and Saturn Ferro Alloys Private
Ltd., Indian producers of merchandise that is comparable to subject
merchandise. Id. at 9. We did not use the 2008-2009 financial statement
of Centom Steels and Ferro Alloys Ltd. placed on the record by Shanghai
Jinneng, because it contained evidence of subsidies.
In accordance with 19 CFR 351.301(c)(3)(ii), interested parties may
submit publicly available information with which to value FOPs in the
final results of review within 20 days after the date of publication of
the preliminary results of review.
Currency Conversion
We made currency conversions into U.S. dollars, in accordance with
section 773A(a) of the Act, based on the exchange rates in effect on
the dates of the U.S. sales as certified by the Federal Reserve Bank.
Preliminary Results of Review
We preliminarily determine that no dumping margin exists for
Shanghai Jinneng for the period June 1, 2008 through July 31, 2009.
Disclosure
The Department will disclose calculations performed for these
preliminary results to the parties within 10 days of the date of the
public announcement of the results of this review in accordance with 19
CFR 351.224(b).
Comments
Interested parties may submit written comments no later than 30
days after the date of publication of these preliminary results of
review. See 19 CFR 351.309(c)(1)(ii). Rebuttal comments must be limited
to the issues raised in the written comments and may be filed no later
than five days after the time limit for filing the case briefs. See 19
CFR 351.309(d). Parties submitting written comments or rebuttal
comments are requested to provide the Department with an additional
copy of those comments on diskette. Any interested party may request a
hearing within 30 days of publication of these preliminary results. See
19 CFR 351.310(c). Any hearing, if requested, ordinarily will be held
two days after the scheduled date for submission of rebuttal briefs.
See 19 CFR 351.310(d). Parties should confirm by telephone the date,
time, and location of the hearing two days before the scheduled date.
The Department will issue the final results of the administrative
review, which will include the results of its analysis of issues raised
in the briefs, within 120 days of publication of these preliminary
results, in accordance with section 751(a)(3)(A) of the Act, unless the
time limit is extended.
Assessment Rates
Pursuant to 19 CFR 351.212, the Department will determine, and CBP
shall assess, antidumping duties on all appropriate entries of subject
merchandise in accordance with the final results of this review. For
assessment purposes, the Department calculated exporter/importer- (or
customer) -specific assessment rates for merchandise subject to this
review. Where appropriate, the Department calculated an ad valorem rate
for each importer (or customer) by dividing the total dumping margins
for reviewed sales to that party by the total entered values associated
with those transactions. For duty-assessment rates calculated on this
basis, the Department will direct CBP to assess the resulting ad
valorem rate against the entered customs values for the subject
merchandise. Where appropriate, the Department calculated a per-unit
rate for each importer (or customer) by dividing the total dumping
margins for reviewed sales to that party by the total sales quantity
associated with those transactions. For duty-assessment rates
calculated on this basis, the Department will direct CBP to assess the
resulting per-unit rate against the entered quantity of the subject
merchandise. Where an importer- (or customer) -specific assessment rate
is de minimis (i.e., less than 0.50 percent), the Department will
instruct CBP to assess that importer (or customer's) entries of subject
merchandise without regard to antidumping duties. The Department
intends to instruct CBP to liquidate
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entries containing subject merchandise exported by the PRC-wide entity
at the PRC-wide rate in the final results of this review. The
Department intends to issue appropriate assessment instructions
directly to CBP 15 days after publication of the final results of this
review.
Cash Deposit Requirements
The following cash deposit requirements will be effective for
shipments of subject merchandise from the PRC entered, or withdrawn
from warehouse, for consumption on or after the publication date of the
final results of the review, as provided by sections 751(a)(1) and
(a)(2)(C) of the Act: (1) for all respondents receiving a separate
rate, the cash deposit rate will be that established in the final
results of the review; (2) for previously investigated or reviewed PRC
and non-PRC exporters not listed above that have separate rates, the
cash deposit rate will continue to be the exporter-specific rate
published for the most recent period; (3) for all PRC exporters of
subject merchandise that have not been found to be entitled to a
separate rate, the cash deposit rate will be the PRC-wide rate of
139.49 percent; and (4) for all non-PRC exporters of subject
merchandise which have not received their own rate, the cash deposit
rate will be the rate applicable to the PRC exporters that supplied
that non-PRC exporter. These deposit requirements, when imposed, shall
remain in effect until further notice.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility 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 double antidumping duties.
The Department is issuing and publishing these preliminary results
of administrative review in accordance with section 777(i)(1) of the
Act, and 19 CFR 351.221(b)(4).
Dated: July 7, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-17299 Filed 7-14-10; 8:45 am]
BILLING CODE 3510-DS-S