[Federal Register: June 3, 2002 (Volume 67, Number 106)]
[Notices]               
[Page 38255-38257]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03jn02-30]                         

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-806]

 
Silicon Metal from the People's Republic of China: Rescission of 
Antidumping Duty New Shipper Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On June 28, 2001, we initiated a new shipper review of 
Groupstars Chemical Company, Ltd. (Groupstars China) because the 
company submitted a timely request for a new shipper review to the 
Department of Commerce, which appeared to meet all of the requirements 
set forth in 19 CFR 351.214(b)(2). See 66 FR 41508. We have now 
determined that information contained in Groupstars China's request for 
a new shipper review was either inaccurate or incomplete. Accordingly, 
the Department is rescinding this new shipper review.

EFFECTIVE DATE: June 3, 2002.

FOR FURTHER INFORMATION CONTACT: Jacqueline Arrowsmith, AD/CVD 
Enforcement Group III, Office 7, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington DC 20230; telephone (202) 482-
5255.

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930, as amended (the 
Act). In addition, unless otherwise indicated, all citations to the 
Department's regulations are to the provisions codified at 19 CFR part 
351 (2001).

Background

    On July 31, 2001, the Department initiated a new shipper review of 
Groupstars China. See 66 FR 41508 (August 8, 2001). On August 6, 2001, 
we received comments from Globe Metallurgical, Inc. and Elkem Metals 
Company (collectively, petitioners), requesting that we not initiate, 
or rescind, the review. We issued a questionnaire to Groupstars China 
on October 5, 2001 and we received responses from Groupstars China on 
November 2, 2001 and November 14, 2001. On November 20, 2001, we 
rejected these responses for being improperly filed because Groupstars 
China failed to properly identify business proprietary and public data. 
See Letter from Barbara E. Tillman, Director, Office 7, to Spring, 
Spring & Associates, dated November 20, 2001. Groupstars China 
resubmitted its responses on November 27, 2001, and on December 4, 
2001, we again rejected these responses for being improperly filed for 
the same reason. See Letter from Barbara E. Tillman, Director, Office 
7, to Spring, Spring & Associates, dated December 4, 2001. On December 
7, 2001, we received and accepted revised responses, dated December 6, 
2001.
    On January 2, 2002, we published the Notice of Extension of Time 
Limit for Preliminary Results of Antidumping New Shipper Review: 
Silicon Metal From the People's Republic of China. See 67 FR 5901 
(January 2, 2002).
    On January 18, 2002 and January 23, 2002, we received submissions 
from petitioners providing new factual information and deficiency 
comments.

[[Page 38256]]

On January 28, 2002, we rejected petitioners' submissions for not 
adhering to the Department's filing requirements; petitioners failed to 
provide a translation of one of their exhibits. See Letter from Barbara 
E. Tillman, Director, Office 7, to petitioners. Petitioners' 
submissions were refiled and accepted on January 30, 2002 and February 
6, 2002, respectively.
    Based on our analysis of the record, including data submitted by 
petitioners and Groupstars China, we determined that there was factual 
information submitted by petitioners that contradicted information 
submitted by Groupstars China in its request for a new shipper review 
and its questionnaire responses. On February 13, 2002, we issued a 
letter to Groupstars China giving the company the opportunity to 
counter the information and documentation filed by the petitioners on 
each of three critical points: (1) Whether the initial and all 
subsequent shipments of silicon metal were reported; (2) whether 
Groupstars China was a legal entity before the date of sale of its 
first shipment of silicon metal; and (3) whether Groupstars China 
produced the merchandise that is the basis of this new shipper review. 
See Letter from Barbara E. Tillman, Director, Office 7, to Groupstars 
China, dated February 13, 2002. We stated that unless Groupstars China 
demonstrated that the requirements for a new shipper review had been 
met, we would have no choice but to rescind its new shipper review.
    On February 19, 2002, we received Groupstars China's response to 
our February 13, 2002 letter. On March 12, 2002, we received a letter 
from petitioners reiterating their view that the new shipper review 
should be rescinded. On April 1, 2002, Groupstars China filed a letter 
arguing that it deserved a new shipper review.

Rescission of Review

    Based on the Department's analysis of Groupstars China's response 
to the Department's February 13th letter, as well as the other 
submissions made by Groupstars China and petitioners, we find that 
Groupstars China did not meet the requirements set forth in section 
351.214(b)(2) of the regulations for requesting a new shipper review. 
On May 9, 2002, the Department issued a memorandum which set forth the 
Department's analysis and which recommended rescission of this new 
shipper review. (See ``Rescission of New Shipper Review for Groupstars 
Chemical Company (Groupstars China): Silicon Metal from the People's 
Republic of China'' from Barbara E. Tillman, Director, Office 7, to 
Joseph A. Spetrini, Deputy Assistant Secretary, dated May 9, 2002 
(Silicon Metal Rescission Analysis Memo), a public document which is on 
file in the Central Records Unit, Room B-099 of the Department of 
Commerce.) On May 9, 2002, we sent out the Silicon Metal Rescission 
Analysis Memo to the interested parties (See ``Memorandum to The File 
through Barbara E. Tillman, Director, Office 7, from Jacqueline 
Arrowsmith,'' also dated May 9, 2002) and asked that any new comments 
be properly filed and served on interested parties no later than 
Tuesday, May 14, 2002. On May 14, 2002, we received comments from 
petitioners stating that they agree with our decision to rescind this 
review. See ``Memorandum To Barbara E. Tillman, Director, Office VII 
from Jacqueline Arrowsmith,'' dated May 16, 2002.
    As discussed in detail in the Silicon Metal Rescission Analysis 
Memo, we find that Groupstars China provided inaccurate information 
with respect to two of the required criteria for requesting a new 
shipper review. First, as set forth in section 351.214(b)(iv)(B) of the 
regulations, new shipper requests are required to include documentation 
for the first and all subsequent shipments of the silicon metal. 
Groupstars China's request for a new shipper review only provided 
information and documentation with respect to one shipment. Petitioner 
provided documentation showing another shipment during the period of 
review (POR). A query of proprietary U.S. Customs data that the 
Department obtained as part of this proceeding confirmed this shipment. 
Even though this shipment was shipped and entered during the POR (June 
1, 2000 through May 31, 2001), Groupstars China did not provide 
information or documentation on this shipment in its original new 
shipper request as required by the regulations, nor did Groupstars 
China provide this information in its response to our questionnaire. 
Based on the information on the record, the unreported shipment was one 
of only two shipments made during the POR, and was by far the largest 
during the POR. See Silicon Metal Rescission Analysis Memo. Further, it 
was Groupstars China's responsibility to report this shipment. This 
failure to report this shipment in its request for a new shipper review 
was compounded by Groupstars China's decision not to report this sale 
in its questionnaire response.
    Second, as set forth in section 351.214(b)(2)(iii)(A) of the 
Department's regulations, a new shipper request must contain 
certifications by either the producer/exporter of the subject 
merchandise or the producer and the exporter of the subject 
merchandise. Although Groupstars China stated in its new shipper 
request that it was both the exporter and the producer of the subject 
merchandise, the record is now clear that Dayinjiang Silicon Metal 
Plant was the producer of this subject merchandise and that Groupstars 
China was only the exporter. See Silicon Metal Rescission Analysis Memo 
and Groupstars China's February 19, 2002 submission. Given that 
Groupstars China was the exporter and that Dayinjiang Silicon Metal 
Plant was the producer of the subject merchandise, Groupstars China's 
request for a new shipper review should have contained a certification 
from Dayinjiang Silicon Metal Plant indicating whether it was 
affiliated with any producer or exporter that shipped subject 
merchandise during the period of investigation, among other things. 
Therefore, Groupstars China did not provide the required certification 
from the producer of the silicon metal required under section 
351.214(b)(2)(iii)(A) of the Department's regulations.
    With respect to an additional issue of concern, whether Groupstars 
China was, in fact, a legal entity before the date of its first 
shipment of silicon metal, we have not made a conclusive finding. In 
our May 9, 2002 Silicon Metal Rescission Analysis Memo, we stated that 
after reviewing all the information on the record, we could not 
determine whether Groupstars China had the necessary documentation 
(e.g. business license and certificate of approval) demonstrating the 
date on which it became a legal entity. Thus, because Groupstars did 
not provide any documentation or other information which conclusively 
demonstrated the date on which it became a legal business entity, we 
cannot make a conclusion on this issue and cannot determine whether it 
was a legal entity prior to its first shipment.
    Hence, because Groupstars China did not report or submit 
documentation on its subsequent shipments in accordance with section 
351.214(b)(2)(iv)(B) and failed to provide the required certification 
from the producer of silicon metal as required under section 
351.214(b)(2)(iii)(A), we find that Groupstars China did not meet the 
requirements set forth in section 351.214(b) of the regulations for 
requesting a new shipper review. Thus, the Department is rescinding 
this new shipper review.

[[Page 38257]]

Administrative Protective Order Procedures

    This notice serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a sanctionable 
violation.
    This determination and notice are issued and published in 
accordance with 19 CFR 351.213(d)(4) and sections 751(a)(1), 
751(a)(2)(B) and 777(i)(1) of the Act.

    Dated: May 28, 2002.
Bernard T. Carreau,
Acting Assistant Secretary for Import Administration.
[FR Doc. 02-13844 Filed 5-31-02; 8:45 am]
BILLING CODE 3510-DS-P