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Federal Register / Vol. 72, No.

215 / Wednesday, November 7, 2007 / Notices 62827

Weighted-average
Manufacturer/exporter margin (percent)

Nutracare International/Salvi Chemical Industries .................................................................................................................... 121.62


Sisco Research Laboratories Pvt. Ltd. ...................................................................................................................................... 121.62
Sealink International, Inc. .......................................................................................................................................................... 121.62
All Others ................................................................................................................................................................................... 45.82

Suspension of Liquidation deadline for the submission of case DATES: Effective Dates: November 7,
In accordance with section 733(d) of briefs. Executive summaries should be 2007.
limited to five pages total, including SUMMARY: We preliminarily determine
the Act, we will instruct U.S. Customs
and Border Protection (CBP) to suspend footnotes. Further, we request that that imports of glycine from India are
liquidation of all entries of glycine from parties submitting briefs and rebuttal being, or are likely to be, sold in the
India that are entered, or withdrawn briefs provide us with a copy of the United States at less than fair value, as
from warehouse, for consumption on or public version of such briefs on diskette. provided in section 733(b) of the Tariff
after the date of publication of this Section 774 of the Act provides that Act of 1930, as amended (the Act).
notice in the Federal Register. We will the Department will hold a hearing to Interested parties are invited to
instruct CBP to require a cash deposit or afford interested parties an opportunity comment on this preliminary
the posting of a bond equal to the to comment on arguments raised in case determination. We will make our final
weighted-average margin, as indicated or rebuttal briefs, provided that such a determination within 75 days after the
in the chart above, as follows: (1) The hearing is requested by an interested date of this preliminary determination.
rates for the mandatory respondents party. If a request for a hearing is made FOR FURTHER INFORMATION CONTACT:
except Paras will be the rates we have in this investigation, the hearing George Callen or Kristin Case, AD/CVD
determined in this preliminary normally will be held two days after the Operations, Office 5, Import
determination; (2) if the exporter is not deadline for submission of the rebuttal Administration, International Trade
a firm identified in this investigation briefs at the U.S. Department of Administration, U.S. Department of
but the producer is, the rate will be the Commerce, 14th Street and Constitution Commerce, 14th Street and Constitution
rate established for the producer of the Avenue, NW., Washington, DC 20230. Avenue, NW., Washington, DC 20230;
subject merchandise; (3) the rate for all Parties should confirm by telephone the telephone: (202) 482–0180 and (202)
other producers or exporters will be time, date, and place of the hearing 48 482–3174, respectively.
45.82 percent. These suspension-of- hours before the scheduled time. SUPPLEMENTARY INFORMATION:
liquidation instructions will remain in Interested parties who wish to request a
Background
effect until further notice. hearing, or to participate if one is
In accordance with 19 CFR requested, must submit a written On April 26, 2007, the Department of
351.204(e)(2), because the weighted- request within 30 days of the Commerce (the Department) published
average margin for Paras is zero, we will publication of this notice. Requests in the Federal Register the initiation of
not instruct CBP to suspend liquidation should specify the number of an antidumping investigation on glycine
of merchandise produced and exported participants and provide a list of the from India. See Glycine from India,
by Paras. issues to be discussed. Oral Japan, and the Republic of Korea:
presentations will be limited to issues Initiation of Antidumping Duty
International Trade Commission Investigations, 72 FR 20816 (April 26,
Notification raised in the briefs. We will make our
final determination within 75 days after 2007) (Initiation Notice). The
In accordance with section 733(f) of the date of the preliminary Department set aside a period for all
the Act, we have notified the ITC of our determination. interested parties to raise issues
amended preliminary determination of This determination is issued and regarding product coverage. See
sales at less than fair value. If our final published pursuant to sections 733(f) Initiation Notice, 72 FR at 20817. We
antidumping determination is and 777(i)(1) of the Act. did not receive comments regarding
affirmative, the ITC will determine product coverage from any interested
whether the imports covered by that Dated: November 1, 2007. party.
determination are materially injuring, or David M. Spooner, On May 17, 2007, we issued the
threatening material injury to, the U.S. Assistant Secretary for Import quantity-and-value (Q&V) questionnaire
industry. The deadline for the ITC’s Administration. to all companies identified in the
determination would be the later of 120 [FR Doc. E7–21872 Filed 11–6–07; 8:45 am] petition. In addition, we issued the Q&V
days after the date of the preliminary BILLING CODE 3510–DS–P questionnaire to companies in India for
determination or 45 days after the date which we obtained public information
of our final determination. indicating that the companies produced
DEPARTMENT OF COMMERCE and/or exported glycine or
Public Comment pharmaceuticals. See the June 22, 2007,
Interested parties are invited to International Trade Administration Memorandum to the File entitled
comment on the amended preliminary ‘‘Issuance of Quantity and Value
determination. Interested parties may [A–533–845] Questionnaires to Potential Indian
submit case briefs to the Department no Notice of Preliminary Determination of Respondents.’’ We received responses
later than seven days after the date of from seven companies. Based on an
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Sales at Less Than Fair Value: Glycine


the issuance of the final verification From India analysis of U.S. Customs and Border
report in this proceeding. Rebuttal Protection (CBP) import statistics of
briefs, the content of which is limited to AGENCY: Import Administration, Indian glycine under the Harmonized
the issues raised in the case briefs, must International Trade Administration, Tariff Schedule of the United States
be filed within five days from the Department of Commerce. (HTSUS) number 2922.49.4020,

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Advanced Exports/Aico Laboratories questionnaire to AICO and Paras. informing it that failure to respond
(AICO), Nutracare International/Salvi Although we received timely responses might result in the application of facts
Chemical Industries (Salvi), and Paras from Paras, we did not receive timely available, including an adverse
Intermediates (Paras) account for more responses from AICO, as described in inference, in accordance with section
than 75 percent of imports. AICO and detail below, despite granting several 776 of the Act and pursuant to 19 CFR
Paras responded to our Q&V extensions of the applicable deadlines. 351.308. Salvi still did not respond to
questionnaire; Salvi did not respond. our Q&V questionnaire and, thus,
Use of Facts Otherwise Available
We selected AICO and Paras as withheld requested information and
mandatory respondents. For the reasons discussed below, we significantly impeded this proceeding.
On May 25, 2007, the International determine that the use of facts otherwise Pursuant to section 776(a) of the Act, in
Trade Commission (ITC) published its available with an adverse inference is reaching our preliminary determination,
affirmative preliminary determination appropriate for the preliminary we have used total facts available for
that there is a reasonable indication that determination with respect to Salvi and Salvi because it did not provide the data
an industry in the United States is AICO. we needed to decide whether it should
materially injured by reason of imports A. Use of Facts Available be selected as a mandatory respondent.
of glycine from India. See Glycine from AICO—In this case, AICO did not
Section 776(a)(2) of the Act provides provide pertinent information we
India, Japan, and Korea, 72 FR 29352
that, if an interested party withholds requested that is necessary to calculate
(May 25, 2007).
information requested by the an antidumping margin for the
Period of Investigation administering authority, fails to provide preliminary determination. The
The period of investigation is January such information by the deadlines for following is a summary of our attempts
1, 2006, through December 31, 2006. submission of the information and in to receive a complete response from
the form or manner requested, subject to AICO. On April 19, 2007, we initiated
Scope of Investigation sections 782(c)(1) and (e) of the Act, the less-than-fair value (LTFV)
The merchandise covered by this significantly impedes a proceeding investigation of glycine from India. In
investigation is glycine, which in its under this title, or provides such that initiation, we also initiated an
solid, i.e., crystallized, form is a free- information but the information cannot investigation of sales at prices below the
flowing crystalline material. Glycine is be verified as provided in section 782(i) cost of production in the comparison
used as a sweetener/taste enhancer, of the Act, the administering authority market. The statutory date of the
buffering agent, reabsorbable amino shall use, subject to section 782(d) of the preliminary determination at this time
acid, chemical intermediate, metal Act, facts otherwise available in was September 6, 2007. On June 26,
complexing agent, dietary supplement, reaching the applicable determination. 2007, we issued our standard
and is used in certain pharmaceuticals. Section 782(d) of the Act provides that, questionnaire. The section A response
The scope of this investigation covers if the administering authority was due on July 16, 2007, 21 days from
glycine in any form and purity level. determines that a response to a request the issuance of the questionnaire, and
Although glycine blended with other for information does not comply with the section B, C, and D responses were
materials is not covered by the scope of the request, the administering authority due on August 2, 2007, 39 days from the
this investigation, glycine to which shall promptly inform the responding issuance of the questionnaire.
relatively small quantities of other party and provide an opportunity to On July 10, 2007, AICO requested an
materials have been added is covered by remedy the deficient submission. extension of 45–60 days to submit its
the scope. Glycine’s chemical Section 782(e) of the Act states further section A response. We granted AICO an
composition is C2H5NO2 and is that the Department shall not decline to additional 14 days, and the revised due
normally classified under subheading consider submitted information if all of date for its section A response was July
the following requirements are met: (1) 30, 2007. Four days after the extended
2922.49.4020 of the HTSUS.
The scope of this investigation also The information is submitted by the deadline for its section A response and
covers precursors of dried crystalline established deadline; (2) the information one day after the due date for AICO’s
can be verified; (3) the information is sections B, C, and D responses, on
glycine, including, but not limited to,
not so incomplete that it cannot serve as August 3, 2007, we received from AICO
glycine slurry, i.e., glycine in a non-
a reliable basis for reaching the an incomplete, two-page section A
crystallized form, and sodium glycinate.
applicable determination; (4) the response and a request for a ‘‘4–5 week’’
Glycine slurry is classified under the
interested party has demonstrated that it extension of the deadline to submit
same HTSUS subheading as crystallized
acted to the best of its ability; and (5) section B, C, and D responses. We
glycine (2922.49.4020) and sodium
the information can be used without granted AICO a two-week extension
glycinate is classified under subheading
undue difficulties. until August 16, 2007, for its sections B,
HTSUS 2922.49.8000. Salvi—Salvi did not respond to our
While HTSUS subheadings are C, and D responses and also requested
Q&V questionnaire and, therefore, did that it file a complete section A
provided for convenience and CBP not provide any information necessary
purposes, our written description of the response at the same time it submitted
to calculate an antidumping margin for its section B, C, and D responses.
scope of this investigation is dispositive. the preliminary determination. On June On August 16, 2007, we received
Issuance of Questionnaire 1, 2007, we sent Salvi a follow-up letter AICO’s revised section A response and
On June 26, 2007, we issued sections a request from AICO for a one-month
market sales of the foreign like product or, if the extension for the submission of its
A, B, C, D, and E 1 of the antidumping home market is not viable, of sales of the foreign
like product in the most appropriate third-country
section B, C, and D responses. We gave
AICO a two-week extension for its
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1 Section A of the antidumping duty market. Section C requests a complete listing of the
questionnaire requests general information company’s U.S. sales of subject merchandise. section B, C, and D responses until
concerning a company’s corporate structure and Section D requests information about the cost of August 30, 2007. On September 5, 2007,
business practices, the merchandise under production of the foreign like product and the
investigation, and the manner in which it sells that constructed value of the merchandise under
six days after the deadline, we received
merchandise in all of its markets. Section B requests investigation. Section E requests information on AICO’s section B and C responses and
a complete listing of all of the company’s home- further-manufacturing activities. a request for a two-week extension for

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its submission of its section D response, 103–316, vol. 1 (1994) at 870 (SAA). ‘‘(Initiation Checklist) on file in Import
i.e., until September 15, 2007. Further, ‘‘affirmative evidence of bad Administration’s Central Records Unit,
On September 14, 2007, we informed faith on the part of a respondent is not Room 1870, U.S. Department of
AICO that, despite the fact that we had required before the Department may Commerce, 14th Street and Constitution
given it several extensions and a total of make an adverse inference.’’ See Avenue, NW., Washington, DC 20230.
66 days to respond to our original Antidumping Duties; Countervailing When using facts otherwise available,
questionnaire, we had received AICO’s Duties, 62 FR 27296, 27340 (May 19, section 776(c) of the Act provides that,
section B and C responses six days after 1997). Pursuant to section 782(d) of the when the Department relies on
the due date. We also informed it that Act, the Department provided Salvi and secondary information (such as
we had received its request for an AICO with notice informing them of the information contained in the petition)
additional extension of time to respond consequences of their failure to respond rather than on information obtained in
to section D of our questionnaire six adequately to the Department’s request the course of an investigation, it must
days after the already-extended due date for information. Nevertheless, Salvi did corroborate, to the extent practicable,
for the section D response. We declined not respond to the Q&V questionnaire information from independent sources
to give AICO any further extensions and and AICO did not respond adequately, that are reasonably available at its
returned its sections B and C responses completely, or in a timely manner to the disposal.
as untimely. standard questionnaire. This constitutes The SAA clarifies that ‘‘corroborate’’
AICO did not file its sections B and a failure on the part of Salvi and AICO means the Department will satisfy itself
C responses in a timely matter despite to cooperate to the best of their ability that the secondary information to be
having been granted multiple extensions to comply with requests for information used has probative value. See SAA at
of time. Therefore, AICO failed to by the Department within the meaning 870. As stated in Tapered Roller
provide information requested by the of section 776(b) of the Act. Because Bearings and Parts Thereof, Finished
established deadlines. See section Salvi and AICO did not provide and Unfinished, from Japan, and
776(a)(2)(B) of the Act. Also, AICO did information we requested, section Tapered Roller Bearings, Four Inches or
not respond at all to section D of our 782(e) of the Act is not applicable. Less in Outside Diameter, and
questionnaire, thereby withholding, Based on the above, the Department has Components Thereof, from Japan;
among other things, cost-of-production preliminarily determined that Salvi and Preliminary Results of Antidumping
information that is necessary for AICO failed to cooperate to the best of Duty Administrative Reviews and
reaching the applicable determination. their ability and, therefore, in selecting Partial Termination of Administrative
See section 776(a)(2)(A) of the Act. In from among the facts otherwise Reviews, 61 FR 57391, 57392 (November
granting extensions, we informed AICO available, an adverse inference is 6, 1996) (unchanged in Tapered Roller
repeatedly that, if we did not receive warranted. See, e.g., Notice of Final Bearings and Parts Thereof, Finished
submissions by the stated deadline, we Determination of Sales at Less than Fair and Unfinished, From Japan, and
may reject the submission and use facts Value: Circular Seamless Stainless Steel Tapered Roller Bearings, Four Inches or
available in the preliminary Hollow Products from Japan, 65 FR Less in Outside Diameter, and
determination. 42985 (July 12, 2000). Components Thereof, From Japan; Final
By not providing its submissions by Results of Antidumping Duty
the applicable deadlines, AICO did not C. Selection and Corroboration of Administrative Reviews and
provide information we need to Information Used as Facts Available Termination in Part, 62 FR 11825
calculate an antidumping margin for the Where the Department applies (March 13, 1997)), to corroborate
preliminary determination. Thus, in adverse facts available because a secondary information, the Department
reaching our preliminary determination, respondent failed to cooperate by not will examine, to the extent practicable,
pursuant to sections 776(a)(2)(A) and (B) acting to the best of its ability to comply the reliability and relevance of the
of the Act, we have based the dumping with a request for information, section information used. The Department’s
margin on facts otherwise available for 776(b) of the Act authorizes the regulations state that independent
AICO. Department to rely on information sources used to corroborate such
derived from the petition, a final evidence may include, for example,
B. Application of Adverse Inferences for determination, a previous published price lists, official import
Facts Available administrative review, or other statistics and customs data, and
In applying the facts otherwise information placed on the record. See information obtained from interested
available, section 776(b) of the Act also 19 CFR 351.308(c) and the SAA at parties during the particular
provides that, if the administering 870. In this case, because we are unable investigation. See 19 CFR 351.308(d)
authority finds that an interested party to calculate a margin for Salvi and AICO and the SAA at 870.
has failed to cooperate by not acting to and because an adverse inference is For the purposes of this investigation,
the best of its ability to comply with a warranted, we have assigned to Salvi to the extent appropriate information
request for information from the and AICO a margin of 121.62 percent, was available, we reviewed the
administering authority, in reaching the the highest margin alleged in the adequacy and accuracy of the
applicable determination under this petition. See Petition for the Imposition information in the Petition during our
title, the administering authority may of Antidumping Duties on Imports of pre-initiation analysis and for purposes
use an inference adverse to the interests Glycine from India, Japan, and the of this preliminary determination. See
of that party in selecting from among the Republic of Korea dated March 30, 2007 Initiation Checklist. We examined
facts otherwise available. (Petition), and the supplements to the evidence supporting the calculations in
Adverse inferences are appropriate Petition filed on behalf of Geo Specialty the Petition to determine the probative
‘‘to ensure that the party does not obtain Chemicals, Inc. (the petitioner), and value of the margins alleged in the
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a more favorable result by failing to dated April 3, 12, 13, 17, and 18, 2007, Petition for use as adverse facts
cooperate than if it had cooperated as recalculated in the April 19, 2007, available for purposes of this
fully.’’ See Statement of Administrative ‘‘Office of AD/CVD Operations Initiation preliminary determination. During our
Action accompanying the Uruguay Checklist for the Antidumping Duty pre-initiation analysis, we examined the
Round Agreements Act, H.R. Doc. No. Petition on Glycine from the India key elements of the export-price and

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normal-value calculations used in the market and the cost of production (COP) 5, Exhibit I, and Volume II of the
Petition to derive margins. Also, during based on market research of Indian Petition at Exhibits DOC–17 and DOC–
our pre-initiation analysis, we examined manufactures of glycine. The petitioner 18.
information from various independent was able to determine domestic Indian Further, section 773(b)(1) of the Act
sources provided either in the Petition prices based on price quotes, obtained requires that the Department have
or, based on our requests, in by a market researcher, from two Indian ‘‘reasonable grounds to believe or
supplements to the Petition, that manufacturers of glycine. See the suspect’’ that below-cost sales have
corroborates key elements of the export- Memorandum to the File entitled occurred before initiating such an
price and normal-value calculations ‘‘Telephone Call to Market Research investigation. Reasonable grounds exist
used in the Petition to derive estimated Firm Regarding the Antidumping when an interested party provides
margins. Petition on Glycine from India,’’ dated specific factual information on costs and
The petitioner calculated export April 19, 2007. These price quotations prices, observed or constructed,
prices using lost sales reports from sales identified specific terms of sale and indicating that sales in the foreign
staff. See the Petition at 27–29. The payment terms. See Volume II of the market in question are at below-cost
Petitioner adjusted U.S. prices for Petition, at Exhibits DOC–17, DOC–18, prices. See section 773(b)(2)(A) of the
foreign inland freight, international DOC–22, and DOC–23. These per pound Act.
freight, U.S. inland freight, distributor price quotes were for technical grade Pursuant to section 773(b)(3) of the
mark-up, and credit charges using glycine, USP grade glycine (food grade), Act, COP consists of the cost of
publicly available data. See Petition at and pharmaceutical grade glycine. manufacturing (COM), selling, general,
Exhibits 1–4 and 6. The petitioner Based on our review of the and administrative (SG&A) expenses,
arrived at adjusted, per pound, U.S. information contained in the Petition, and packing expenses. To calculate the
dollar figures per pound for technical we recalculated normal value for Indian COM, the petitioner multiplied the
grade glycine, food grade glycine, and glycine (when based on price usage quantity of each input needed to
pharmaceutical grade glycine, the same quotations) by excluding the adjustment produce one metric ton (MT) of glycine
unit and currency on which normal for home-market and U.S. credit by the value of that input. The
value was calculated. See Volume I of expenses. See Initiation Checklist. petitioner obtained all of the quantity
the Petition at pages 27–29, Volume II Based on the petitioner’s initial cost and value data it used to calculate the
of the Petition at DOC Exhibits 1–7, the model, all of the domestic Indian prices COM from public sources. The
April 12, 2007, supplement to the of glycine were found to be above cost, petitioner obtained the input-usage
Petition, at Exhibit A, and the April 13, and, therefore, there was no allegation factors from the public record of the
2007, supplement to the Petition, at of sales at prices below COP. See, e.g., 1997–1998 administrative review of
Exhibit L. Volume I of the Petition, at page 33, glycine from the People’s Republic of
Based on our review of the Volume II of the Petition, at Exhibits China (PRC). See Initiation Notice, 72
information contained in the Petition, DOC–17—DOC–20, and the April 13, FR 20819. The petitioner asserted that
we recalculated net export prices (based 2007, supplement to the Petition, at the producer in the PRC 1997–1998
on price quotes) by excluding an pages 2–3 and Exhibits B, F, and I, and review produced glycine by the same
adjustment to export price for U.S. the discussion of export price above. In production method that producers in
credit expenses. Because the petitioner its April 13, 2007, supplement to the India use. The petitioner obtained the
did not provide supporting Petition, in response to questions by the values for the inputs from various
documentation for its home-market Department regarding cost methodology, public sources. The petitioner
interest rate, we did not make an however, the petitioner revised its cost- calculated factory overhead, SG&A, and
adjustment to normal value for home- calculation methodology and calculated the financial-expense ratios based on
market credit expenses. We also Indian COP based on publicly available the Indian surrogate ratios that the
recalculated the net export prices based cost information. Based on the new cost Department used in the preliminary
on price quotes by revising the reported methodology, the petitioner re- results of the 2005–2006 administrative
value associated with a distributor’s calculated the cost of USP grade glycine review of the antidumping duty order
mark-up. See Volume II of the Petition, and this resulted in the Indian market on glycine from the PRC. Where the
at Exhibits DOC–1, DOC–27 through prices of USP grade glycine being Department used constructed value to
DOC–29, and the April 13, 2007, significantly below the COP for that determine normal value in that review,
supplement to the Petition, at Exhibits specific product. The petitioner alleged the petitioner added an amount for
L, M, and N. In addition, we that these sales in the Indian market did profit from the same financial
recalculated the distributor’s mark-up not form an adequate basis for statements the Department used.
value using a reseller’s average mark-up comparison to the U.S. prices and that We adjusted petitioner’s calculation
percentage based on the industry normal value in those instances should of SG&A expenses to apply the SG&A
practice of glycine sales in the United be based on the constructed value of the rate to COM inclusive of factory
States. See Initiation Checklist, merchandise. See the April 13, 2007, overhead. We did not include a separate
Attachment VI. Based on our supplement to the Petition, at 5 and financial-expense amount as the
examination of the aforementioned Exhibit I, and Volume II of the Petition, petitioner did because the SG&A ratio
information, we consider the at Exhibits DOC–17 and DOC–18. already included financial expense. See
petitioner’s calculation of net U.S. Further, because this methodology the Initiation Checklist for a full
prices corroborated. provided information demonstrating description of the petitioner’s
With respect to normal value, the reasonable grounds to believe or suspect methodology and the adjustments the
petitioner stated that, because it does that sales of glycine in India were made Department made to the petitioner’s
not sell glycine in the Indian market, it at prices below the fully absorbed COP calculations.
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does not have specific knowledge of within the meaning of section 773(b) of Because it alleged sales below cost,
how glycine is sold, marketed, or the Act, the petitioner requested that the pursuant to sections 773(a)(4), (b) and
packaged in the Indian market. Department conduct a cost investigation (e) of the Act, the petitioner also based
Therefore, the petitioner determined the for respondents in India. See the April normal value for Indian sales of a
price of glycine sold in the Indian 13, 2007, supplement to the Petition, at certain grade glycine on constructed

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value. The petitioner calculated In making a determination as to the ‘‘pursuant to the ‘to the extent
constructed value using the same COM, relevance aspect of corroboration, the practicable’ language * * * the
SG&A, and financial-expense figures it Department will consider information corroboration requirement itself is not
used to compute the COP. Consistent reasonably at its disposal as to whether mandatory when not feasible.’’
with section 773(e)(2) of the Act, the there are circumstances that would Therefore, we find that the estimated
petitioner included an amount for profit render a margin not relevant. Where margin of 121.62 percent in the
in constructed value. See the April 13, circumstances indicate that the selected Initiation Notice has probative value.
2007, supplement to the Petition, pages margin is not appropriate as adverse Consequently, in selecting a rate to
1–5, Exhibit I. facts available, the Department will apply as adverse facts available, with
The petitioner obtained the values for disregard the margin and determine an respect to Salvi and AICO, we have
the inputs from various public sources. appropriate margin. For example, in applied the margin rate of 121.62
Specifically, the petitioner valued raw Fresh Cut Flowers from Mexico: Final percent, the highest estimated dumping
materials using import statistics in the Results of Antidumping Duty margin set forth in the notice of
World Trade Atlas for the year 2006, Administrative Review, 61 FR 6812 initiation. See Initiation Notice, 72 FR
exclusive of imports from non-market (February 22, 1996), the Department 20820.
and heavily subsidized economies, disregarded the highest margin as ‘‘best
Fair-Value Comparision
which is the latest Indian import data information available’’ (the predecessor
available. See Initiation Checklist at 9. to ‘‘facts available’’) because the margin Paras was the sole selected
was based on another company’s respondent which provided timely
The petitioner valued labor costs using
uncharacteristic business expense that responses to all sections of our
the average per-hour wages for India for
resulted in an unusually high dumping questionnaire and supplemental
2004 using the International Labour
margin. questionnaires. We have calculated a
Organization’s Yearbook of Labour
In Am. Silicon Techs. v. United margin for Paras using the information
Statistics and per-capita gross national
States, 273 F. Supp. 2d 1342, 1346 (CIT and methodology we describe below.
income obtained from the World Bank.
The petitioner did not adjust the labor 2003), the court found that the adverse Comparison-Market Sales
data for wage inflation. See Initiation facts-available rate bore a ‘‘rational
relationship’’ to the respondent’s In order to determine whether there
Checklist at 10. The petitioner valued was a sufficient volume of sales of
electricity and water consumption using ‘‘commercial practices’’ and was,
therefore, relevant. In the pre-initiation glycine in the comparison market to
data from page 43 of the Key World serve as a viable basis for calculating the
stage of this investigation, we confirmed
Energy Statistics 2003, published by the normal value, we compared the volume
that the calculation of margins in the
International Energy Agency, which of Paras’s home-market sales of the
Petition reflects commercial practices of
were attached to the 2005–2006 foreign like product to its volume of the
the particular industry during the
Preliminary Results of Antidumping U.S. sales of the subject merchandise in
period of investigation. Further, no
Duty Administrative Review and accordance with section 773(a)(1) of the
information has been presented in the
Preliminary Rescission of Glycine from Act. Paras’s quantity of sales in the
investigation that calls into question the
the People’s Republic of China, home market was greater than five
relevance of this information. As such,
Surrogate Value Memo, at Exhibit 6, percent of its sales to the U.S. market.
we preliminarily determine that the
dated April 2, 2007. The petitioner did highest margin in the Petition, which we Based on this comparison of the
not adjust the electricity data for determined during our pre-initiation aggregate quantities of the sales in
inflation. See Initiation Checklist at 10. analysis was based on adequate and comparison market (India) and the
Because the petitioner demonstrated, accurate information and which we United States and absent any
and we confirmed, the validity of the have corroborated for purposes of this information that a particular market
input-usage quantities it used in its preliminary determination, is relevant situation in the exporting country did
COP/constructed-value build-up, used as the adverse facts-available rate for not permit a proper comparison, we
public sources of information, such as Salvi and AICO in this investigation. determined that the quantity of the
official import statistics, that we Similar to our position in foreign like product sold by the
confirmed were accurate to value inputs Polyethylene Retail Carrier Bags from respondent in the exporting country was
of production, and used documents that Thailand: Preliminary Results of sufficient to permit a proper comparison
were used in the Department’s prior Antidumping Duty Administrative with the sales of the subject
decisions and that we consider to be Review, 71 FR 53405 (September 11, merchandise to the United States,
accurate to compute factory overhead, 2006) (unchanged in Polyethylene Retail pursuant to section 773(a)(1) of the Act.
SG&A, financial expense, and profit, we Carrier Bags from Thailand: Final Thus, we determined that Paras’s home
consider the petitioner’s calculation of Results of Antidumping Duty market was viable during the period of
normal value corroborated. Further, we Administrative Review, 72 FR 1982 investigation. Therefore, in accordance
consider the petitioner’s calculation of (January 17, 2007)), because this is the with section 773(a)(1)(B)(i) of the Act,
normal value corroborated because the first proceeding involving Salvi and we based normal value for the
bulk of the calculations relied on AICO, there are no probative respondent on the prices at which the
publicly available information or import alternatives. Accordingly, by using foreign like product was first sold for
statistics which do not require further information that was corroborated in the consumption in the exporting country
corroboration. Therefore, because we pre-initiation stage of this investigation in the usual commercial quantities and
confirmed the accuracy and validity of and preliminarily determined to be in the ordinary course of trade and, to
the information underlying the relevant to Salvi and AICO in this the extent practicable, at the same level
derivation of margins in the Petition by investigation, we have corroborated the of trade as the U.S. sales.
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examining source documents as well as adverse facts-available rate ‘‘to the


publically available information, we extent practicable.’’ See section 776(c) Export Price
preliminarily determine that the of the Act, 19 CFR 351.308(d), and NSK We calculated export price in
margins in the Petition are reliable for Ltd. v. United States, 346 F. Supp. 2d accordance with section 772(a) of the
the purposes of this investigation. 1312, 1336 (CIT 2004), which states, Act because Paras sold the merchandise

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62832 Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Notices

to unaffiliated purchasers in the United packing the merchandise. In our COP determining normal value, in
States prior to importation. We based analysis, we used the home-market sales accordance with section 773(b)(1) of the
export price on the packed, delivered, and COP information Paras provided in Act.
duty-unpaid price to the unaffiliated its questionnaire responses, including
Normal Value
purchasers in the United States. We its home-market and COP databases.
made deductions from the starting price The Department issued a detailed We based normal value for Paras on
for movement expenses in accordance supplemental section D questionnaire the prices of the foreign like products
with section 772(c)(2)(A) of the Act. We on October 9, 2007, to Paras to address sold to its comparison-market
added duty drawback to the gross unit various questions and fundamental customers. When applicable, we made
price. See section 772(c)(1)(B) of the issues, including transactions with adjustments for differences in packing
Act. affiliated parties and further processing and for movement expenses in
of imported materials, after reviewing accordance with sections 773(a)(6)(A)
Product Comparisons and (B) of the Act. In addition, we made
the original section D response dated
In accordance with section 771(16) of August 27, 2007. The due date for the adjustments for differences in
the Act, we considered all products response to the supplemental circumstances of sale in accordance
covered by the scope of the order which questionnaire is October 30, 2007, with section 773(a)(6)(C)(iii) of the Act
were produced and sold by Paras in the which is later than the statutory and 19 CFR 351.410. For comparisons to
home market during the period of deadline for this preliminary export price, we made circumstance-of-
investigation to be foreign like products determination. Upon receipt of a sale adjustments by deducting home-
for the purpose of determining response from Paras, we will analyze market direct selling expenses incurred
appropriate product comparisons to these issues, provide a memorandum on home-market sales from, and adding
glycine sold in the United States. We discussing the results of our analysis to U.S. direct selling expenses to, normal
compared U.S. sales to sales made in the the respondents and the petitioner, and value.
comparison market during the period of allow the parties to comment prior to Level of Trade
investigation. the final determination.
We found there were sales of identical In accordance with section
merchandise in the comparison market After calculating the COP and in 773(a)(1)(B)(i) of the Act, to the extent
made in the ordinary course of trade to accordance with section 773(b)(1) of the practicable, we determined normal
compare to Paras’s U.S. sales. In making Act, we tested home-market sales of the value based on sales in the home market
product comparisons, we defined foreign like product to determine at the same level of trade as the export-
identical foreign like products based on whether they were made at prices below price sales. Pursuant to 19 CFR
the physical characteristics reported by the COP within an extended period of 351.412(c)(1), the normal-value level of
Paras in the following order of time in substantial quantities and trade is based on the starting price of the
importance: type, grade, specification, whether such prices permitted the sales in the home market or, when
and nominal grade. For more recovery of all costs within a reasonable normal value is based on constructed
information, see ‘‘Analysis period of time. The home-market prices value, the starting price of the sales from
Memorandum of Paras Intermediates, were exclusive of any applicable which we derive SG&A expenses and
Pvt. Ltd., for the Preliminary movement charges, billing adjustments, profit. For export-price sales, the U.S.
Determination of the Less-Than-Fair- discounts, and indirect selling expenses. level of trade is based on the starting
Value Investigation on Glycine from Pursuant to section 773(b)(2)(C) of the price of the sales to the U.S. market.
India’’ dated October 26, 2007 (Prelim Act, where less than 20 percent of To determine whether normal-value
Memo). Paras’s sales of a given product were at sales are at a different level of trade than
prices less than the COP, we did not the export-price sales, the Department
Cost of Production disregard any below-cost sales of that examines stages in the marketing
Based on allegations contained in the product because the below-cost sales process and selling functions along the
petition and in accordance with section were not made in substantial quantities chain of distribution between the
773(b)(2)(A)(i) of the Act, we found within an extended period of time. producer and the customer. If the
reasonable grounds to believe or suspect Where 20 percent or more of Paras’s comparison-market sales are at a
that glycine sales were made in India at sales of a given product were at prices different level of trade than the export-
prices below the COP. See Initiation less than the COP, we disregarded the price sales and the difference affects
Notice, 72 FR at 20818. As a result, the below-cost sales of that product because price comparability, as manifested by a
Department has conducted an we determined that the below-cost sales pattern of consistent price differences
investigation to determine whether were made in substantial quantities between comparison-market sales at the
Paras made home-market sales at prices within an extended period of time, normal-value level of trade and
below its COP during the period of pursuant to sections 773(b)(2)(B) and (C) comparison-market sales at the level of
investigation within the meaning of of the Act and because, based on trade of the export transaction, the
section 773(b) of the Act. For Paras, we comparisons of prices to weighted- Department makes a level-of-trade
conducted the COP analysis as average COPs for the period of adjustment under section 773(a)(7)(A) of
described below. We were unable to investigation, we determined that these the Act. See Notice of Final
conduct a cost investigation of Salve below-cost sales were made at prices Determination of Sales at Less Than
and AICO because of their failure to which would not permit recovery of all Fair Value: Certain Cut-to-Length
respond to our questionnaire in a timely costs within a reasonable period of time Carbon Steel Plate from South Africa,
manner. in accordance with section 773(b)(2)(D) 62 FR 61731, 61732 (November 19,
In accordance with section 773(b)(3) of the Act. See Prelim Memo. 1997).
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of the Act, we calculated the COP based Consequently, we disregarded Paras’s In determining whether Paras made
on the sum of the costs of materials and below-cost sales of products where 20 sales at different levels of trade, we
labor employed in producing the foreign percent or more of the product were at obtained information from Paras
like product, the SG&A expenses, and prices less than the COP and used the regarding the marketing stages for the
all costs and expenses incidental to remaining sales as the basis for reported U.S. and home-market sales,

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Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Notices 62833

including a description of the selling Home-Market Sales match all export-price sales to identical
activities it performed for each channel sales in the home-market but not always
Sales Process and Marketing Support
of distribution. Generally, if the at the same level of trade. For those
reported levels of trade are the same, the Paras reported home-market sales comparison-market sales for which we
selling functions and activities of the during the period of investigation matched export-price sales at a different
seller at each level of distribution through two channels of distribution, level of trade, we found that there was
should be similar. Conversely, if a party end-users and traders. We examined the a pattern of price difference and we
reports that levels of trade are different chain of distribution and the selling made a level-of-trade adjustment.
for different groups of sales, the selling activities associated with sales reported
by Paras to these two channels of All-Others Rate
functions and activities of the seller for
each distribution group should be distribution in the home market. Based
Section 735(c)(5)(B) of the Act
dissimilar. on Paras’s response, we determine that
provides that, where the estimated
it provided relatively equal levels of
Export-Price Sales weighted-averaged dumping margins
support for most sales-process and
marketing-support functions. These established for all exporters and
Sales Process and Marketing Support producers individually investigated are
functions include, among other
Paras reported export-price sales to functions, sales forecasting, advertising, zero or de minimis or are determined
the United States through two channels and sales promotion. It provided less entirely under section 776 of the Act,
of distribution, end-users and traders. training for end-users than it did for the Department may use any reasonable
We examined the chain of distribution traders, however, as well as less method to establish the estimated all-
and the selling activities associated with technical assistance and market research others rate for exporters and producers
sales reported by Paras to these two for end-users than traders. With respect not individually investigated. In this
channels of distribution in the United to inventory maintenance, Paras case, the only individually investigated
States. Based on Paras’s response, we provided slightly less inventory companies have margins which are zero
determined that it provided relatively maintenance for end-users. or determined entirely under section
equal levels of support for most sales- Based on the limited information we 776. Under these circumstances, we
process and marketing-support received from Paras, we determine that have assigned, as the all-others rate, the
functions. These functions include, the degree of sales process and simple average of the margins in the
among other functions, sales forecasting, marketing support provided is medium Petition. See Notice of Final
advertising, and sales promotion. It although it is slightly higher for traders. Determinations of Sales at Less Than
provided less training for end-users than Fair Value: Certain Cold-Rolled Flat-
Freight and Delivery Rolled Carbon-Quality Steel Products
it did for traders and slightly less
inventory maintenance for end-users. Paras provided less freight and From Argentina, Japan and Thailand,
Paras did not report any billing delivery for end-users. For traders, Paras 65 FR 5520, 5527–28 (February 4, 2000);
adjustments, early-payment discounts, may ship, at the trader’s request, the see also Notice of Final Determination
quantity discounts, or rebates for its order directly to the trader’s customers. of Sales at Less Than Fair Value:
sales to the United States. Based on the We determine that the degree of freight Stainless Steel Plate in Coil from
limited information we received from and delivery services provided is higher Canada, 64 FR 15457 (March 31, 1999).
Paras, we determine that the degree of for traders than for end-users. Consistent with our practice, we
sales process and marketing support Warehousing calculated a simple average of the rates
provided is medium. in the Petition, as recalculated in the
Paras reported that none of the subject Initiation Checklist at Attachment VI
Freight and Delivery merchandise sold in the home market and ranged in the Initiation Notice, and
during the period of investigation was assigned this rate to all other
Paras provided less freight and shipped to a warehouse or other
delivery for end-users. For traders, Paras manufacturers/exporters. See Initiation
intermediate location. Notice, 72 FR at 20820. For details of
may ship, at the trader’s request, the We found that both distribution
order directly to the trader’s customers. these calculations, see the memorandum
channels in the home market were from George Callen to the File entitled
We determine that the degree of freight similar with respect to sales process and
and delivery services provided is higher ‘‘Antidumping Duty Investigation on
warehousing services but different with Glycine from India—Analysis Memo for
for traders than for end-users. respect to freight services. Therefore, we All-Others Rate,’’ dated October 26,
Warehousing find that these two channels constitute 2007.
two distinct levels of trade.
Paras reported that none of the subject Paras reported export-price sales Currency Conversion
merchandise sold in United States through two channels of distribution. To
during the period of investigation was the extent practicable, we compare Pursuant to section 773A(a) of the
shipped to a warehouse or other normal value at the same level of trade Act, we converted amounts expressed in
intermediate location to either channel as the U.S. price. The export-price level foreign currencies into U.S. dollar
of distribution. of trade for end-users is similar to the amounts based on the exchange rates in
We found that both distribution home-market level of trade for end-users effect on the date of the U.S. sale, as
channels for sales to the U.S. market with respect to sales process, freight reported by the Federal Reserve Bank.
were similar with respect to sales services, and warehousing services. The Preliminary Determination
process and marketing support but export-price level of trade for traders
different with respect to freight services. differed from end-users with respect to We preliminarily determine that the
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Consequently we find that these freight and delivery and warehousing following weighted-average dumping
channels constituted two distinct levels but was similar to the level of trade for margins exist for the period January 1,
of trade. home-market traders. We were able to 2006, through December 31, 2006:

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62834 Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Notices

Weighted-average
Manufacturer/Exporter margin (percent)

Paras Intermediates Ltd ............................................................................................................................................................ 0.00


Nutracare International/Salvi Chemical Industries .................................................................................................................... 121.62
Advanced Exports/Aico Laboratories ........................................................................................................................................ 121.62
All Others ................................................................................................................................................................................... 45.82

Suspension of Liquidation briefs. Executive summaries should be SUMMARY: On August 22, 2007, the
In accordance with section 733(d) of limited to five pages total, including Department of Commerce
the Act, we will instruct CBP to suspend footnotes. Further, we request that (‘‘Department’’) published in the
liquidation of all entries of glycine from parties submitting briefs and rebuttal Federal Register the amended final
India that are entered, or withdrawn briefs provide us with a copy of the results of the first administrative review
from warehouse, for consumption on or public version of such briefs on diskette. and concurrent new shipper reviews of
after the date of publication of this Section 774 of the Act provides that the the antidumping duty order on wooden
notice in the Federal Register. We will Department will hold a hearing to afford bedroom furniture from the People’s
instruct CBP to require a cash deposit or interested parties an opportunity to Republic of China (‘‘PRC’’). See
the posting of a bond equal to the comment on arguments raised in case or Amended Final Results of the
weighted-average margin, as indicated rebuttal briefs, provided that such a Antidumping Duty Administrative
in the chart above, as follows: (1) The hearing is requested by an interested Review and New Shipper Reviews:
rates for the mandatory respondents party. If a request for a hearing is made Wooden Bedroom Furniture from the
except Paras (see below) will be the in this investigation, the hearing People’s Republic of China, 72 FR 46957
rates we have determined in this normally will be held two days after the (August 22, 2007) (‘‘Final Results’’) 1
preliminary determination; (2) if the deadline for submission of the rebuttal and accompanying Issues and Decision
exporter is not a firm identified in this briefs at the U.S. Department of Memorandum (August 8, 2007) (‘‘Issues
investigation but the producer is, the Commerce, 14th Street and Constitution and Decision Memo’’). The period of
rate will be the rate established for the Avenue, NW., Washington, DC 20230. review (‘‘POR’’) covered June 24, 2004,
producer of the subject merchandise; (3) Parties should confirm by telephone the through December 31, 2005. We are
the rate for all other producers or time, date, and place of the hearing 48 amending our Final Results to correct
exporters will be 45.82 percent. These hours before the scheduled time. ministerial errors made in the
suspension-of-liquidation instructions Interested parties who wish to request a calculation of the antidumping duty
will remain in effect until further notice. hearing, or to participate if one is margin for Fujian Lianfu Forestry Co./
In accordance with 19 CFR requested, must submit a written Fujian Wonder Pacific Inc./Fuzhou
351.204(e)(2), because the weighted- request within 30 days of the Huan Mei Furniture Co., Ltd./Jiangsu
average margin for Paras is zero, we will publication of this notice. Requests Dare Furniture Co., Ltd. (collectively,
not instruct CBP to suspend liquidation should specify the number of ‘‘Dare Group’’), Shanghai Aosen
of merchandise produced and exported participants and provide a list of the Furniture Co., Ltd. (‘‘Shanghai Aosen’’),
by Paras. issues to be discussed. Oral and Kunwa Enterprise Company
presentations will be limited to issues (‘‘Kunwa’’), pursuant to section 751(h)
International Trade Commission
Notification raised in the briefs. We will make our of the Tariff Act of 1930, as amended
final determination within 75 days after (‘‘Act’’).
In accordance with section 733(f) of the date of this preliminary EFFECTIVE DATE: November 7, 2007.
the Act, we have notified the ITC of our determination. FOR FURTHER INFORMATION CONTACT: Lilit
preliminary determination of sales at This determination is issued and
less than fair value. If our final Astvatsatrian, AD/CVD Operations,
published pursuant to sections 733(f) Office 8, Import Administration,
antidumping determination is and 777(i)(1) of the Act.
affirmative, the ITC will determine International Trade Administration,
whether the imports covered by that Dated: October 26, 2007. U.S. Department of Commerce, 14th
determination are materially injuring, or David M. Spooner, Street and Constitution Avenue, NW.,
threatening material injury to, the U.S. Assistant Secretary for Import Washington, DC 20230; telephone: (202)
industry. The deadline for the ITC’s Administration. 482–6412.
determination would be the later of 120 [FR Doc. E7–21873 Filed 11–6–07; 8:45 am] SUPPLEMENTARY INFORMATION:
days after the date of this preliminary BILLING CODE 3510–DS–P
Background
determination or 45 days after the date
of our final determination. On August 21, 2007, Petitioners,2
DEPARTMENT OF COMMERCE Dare Group, Shanghai Aosen, and
Public Comment Kunwa filed timely ministerial error
Interested parties are invited to International Trade Administration allegations with respect to the
comment on the preliminary
determination. Interested parties may [A–570–890] 1 As a result of an inadvertent error by the

submit case briefs to the Department no Department in the final results, an incorrect
Second Amended Final Results of appendix was attached to the notice released on
later than seven days after the date of Antidumping Duty Administrative August 8, 2007. The amended final results correct
the issuance of the final verification this error and were published in place if the
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Review: Wooden Bedroom Furniture


report in this proceeding. Rebuttal From the People’s Republic of China
original version released on August, 2007. The
briefs, the content of which is limited to original notice was never published in the Federal
Register.
the issues raised in the case briefs, must AGENCY: Import Administration, 2 American Furniture Manufacturers Committee
be filed within five days from the International Trade Administration, for Legal Trade and Vaughan-Bassett Furniture
deadline for the submission of case Department of Commerce. Company.

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