CASH DEPOSIT AND LIQUIDATION INSTRUCTIONS FOR SULFANILIC ACID FROM THE PEOPLE'S REPUBLIC OF CHINA

MESSAGE NO: 1176205 DATE: 06 25 2001 CATEGORY: ADA TYPE: ADM REFERENCE: REFERENCE DATE: CASES: A - 570 - 815 - - - - - - - - - - PERIOD COVERED: 08 01 1998 TO 07 31 1999 LIQ SUSPENSION DATE: TO: DIRECTORS OF FIELD OPERATIONS PORT DIRECTORS FROM: DIRECTOR, TRADE ENFORCEMENT & CONTROL RE: CASH DEPOSIT AND LIQUIDATION INSTRUCTIONS FOR SULFANILIC ACID FROM THE PEOPLE'S REPUBLIC OF CHINA 1. THE DEPARTMENT OF COMMERCE HAS PUBLISHED IN THE FEDERAL REGISTER (66 FR 15837) ON 03/21/2000 THE FINAL RESULTS OF ITS ADMINISTRATIVE REVIEW OF CERTAIN MANUFACTURERS/EXPORTERS SUBJECT TO THE ANTIDUMPING ORDER ON SULFANILIC ACID FROM THE PEOPLE'S REPUBLIC OF CHINA FOR THE PERIOD 08/01/1998 THROUGH 07/31/1999. 2. IMPORTS COVERED BY THE REVIEW ARE SHIPMENTS OF TECHNICAL (OR CRUDE) AND REFINED (OR PURIFIED) SULFANILIC ACID, AND SODIUM SALT OF SULFANILIC ACID. TECHNICAL AND REFINED SULFANILIC ACID ARE CLASSIFIABLE UNDER THE SUBHEADING 2921.42.22 OF THE HARMONIZED TARIFF SCHEDULE (HTS). SODIUM SALT OF SULFANILIC ACID IS CLASSIFIABLE UNDER THE HTS SUBHEADING 2921.42.90 ALTHOUGH THE HTS SUBHEADINGS ARE PROVIDED FOR CONVENIENCE, OUR WRITTEN DESCRIPTION OF THE SCOPE IS DISPOSITIVE. 3. AS A RESULT OF COMMERCE'S REVIEW, THE CASH DEPOSIT RATES HAVE BEEN REVISED FOR CERTAIN PRODUCERS/EXPORTERS. THEREFORE, FOR SHIPMENTS OF SULFANILIC ACID FROM THE PEOPLE'S REPUBLIC OF CHINA ENTERED, OR WITHDRAWN FROM WAREHOUSE, FOR CONSUMPTION ON OR AFTER 03/21/2001, THE REQUIRED CASH DEPOSIT HAS BEEN REVISED FOR THE FOLLOWING PRODUCERS/EXPORTERS: YUDE CHEMICAL INDUSTRY CO. A-570-815-002 85.20% ZHENXING CHEMICAL INDUSTRY CO. A-570-815-003 85.20% 4. IF ANY ENTRIES OF THIS MERCHANDISE ARE EXPORTED BY A FIRM OTHER THAN THE PRODUCERS/EXPORTERS, THEN THE FOLLOWING INSTRUCTIONS APPLY: A. IF THE EXPORTER OF THE SUBJECT MERCHANDISE HAS ITS OWN RATE, USE THE EXPORTER'S RATE FOR DETERMINING THE CASH DEPOSIT RATE. B. IF THE EXPORTER DOES NOT HAVE ITS OWN RATE, USE THE PRC-WIDE RATE FOR ALL SHIPMENTS OF SULFANILIC ACID FROM THE PEOPLE'S REPUBLIC OF CHINA PRODUCED OR EXPORTED BY ANY OTHER PARTY NOT MENTIONED ABOVE (A-570-815-000) AND IMPORTED, ENTERED OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION DURING THE PERIOD 08/01/1998 THROUGH 07/31/1999. ASSESS AN ANTIDUMPING LIABILITY OF 85.20 PERCENT OF THE ENTERED VALUE FOR THE PRC-WIDE RATE. 5. THESE CASH DEPOSIT REQUIREMENTS WILL REMAIN IN EFFECT UNTIL PUBLICATION OF THE FINAL RESULTS FOR THE NEXT ADMINISTRATIVE REVIEW. 6. ACCORDINGLY, YOU ARE NOW INSTRUCTED TO LIQUIDATE ALL SHIPMENTS OF SULFANILIC ACID FROM THE PEOPLE'S REPUBLIC OF CHINA EXPORTED ON OR AFTER 08/01/1998 AND ON OR BEFORE 07/31/1999, AND ASSESS AN ANTIDUMPING LIABILITY OF THE ENTERED VALUE USING THE AFOREMENTIONED RATES NOTED ABOVE. 7. THESE INSTRUCTIONS CONSTITUTE THE IMMEDIATE LIFTING OF SUSPENSION OF LIQUIDATION OF ENTRIES FOR THE MERCHANDISE AND PERIOD LISTED ABOVE. 8. THE ASSESSMENT OF ANTIDUMPING DUTIES BY THE CUSTOMS SERVICE ON ENTRIES OF THIS MERCHANDISE IS SUBJECT TO THE PROVISIONS OF SECTION 778 OF THE TARIFF ACT OF 1930. SECTION 778 REQUIRES THAT CUSTOMS PAY INTEREST ON OVERPAYMENTS OR ASSESS INTEREST ON UNDER PAYMENTS OF THE REQUIRED AMOUNTS DEPOSITED AS ESTIMATED ANTIDUMPING DUTIES. THE INTEREST PROVISIONS ARE NOT APPLICABLE TO CASH OR BONDS POSTED AS ESTIMATED ANTIDUMPING DUTIES BEFORE THE DATE OF PUBLICATION OF THE ANTIDUMPING DUTY ORDER. INTEREST SHALL BE CALCULATED FROM THE DATE PAYMENT OF ESTIMATED ANTIDUMPING DUTIES IS REQUIRED THROUGH THE DATE OF LIQUIDATION. THE RATE AT WHICH SUCH INTEREST IS PAYABLE IS THE RATE IN EFFECT UNDER SECTION 6621 OF THE INTERNAL REVENUE CODE OF 1954 FOR SUCH PERIOD. 9. UPON ASSESSMENT OF ANTIDUMPING DUTIES, CUSTOMS SHOULD REQUIRE THAT THE IMPORTER PROVIDE A REIMBURSEMENT STATEMENT AS DESCRIBED IN SECTION 351.402(F)(2) OF THE COMMERCE DEPARTMENT REGULATIONS. THE IMPORTER SHOULD PROVIDE THE REIMBURSEMENT STATEMENT PRIOR TO LIQUIDATION OF THE ENTRY. IF THE IMPORTER HAS BEEN REIMBURSED ANTIDUMPING DUTIES, CUSTOMS SHOULD DOUBLE THE ANTIDUMPING DUTIES IN ACCORDANCE WITH THE ABOVE-REFERENCED REGULATION. ADDITIONALLY, IF THE IMPORTER FAILS TO RESPOND TO YOUR FORMAL REQUEST (VIA CF 28 OR 29) FOR THE REIMBURSEMENT STATEMENT PRIOR TO LIQUIDATION, CUSTOMS SHOULD PRESUME REIMBURSEMENT AND DOUBLE THE ANTIDUMPING DUTIES DUE. 10. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CUSTOMS OFFICERS, PLEASE CONTACT VIA E-MAIL, THROUGH THE APPROPRIATE SUPERVISORY CHANNELS, OTHER GOVERNMENT AGENCY LIAISON, USING THE ATTRIBUTE "HQ OAB." THE IMPORTING PUBLIC AND OTHER INTERESTED PARTIES SHOULD CONTACT SEAN CAREY, OFFICE OF AD/CVD ENFORCEMENT, IMPORT ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE, AT (202) 482-3964. 11. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION. PAUL SCHWARTZ