NOTICES

                INTERNATIONAL TRADE ADMINISTRATION

                                (C-533-807)

    Final Affirmative Countervailing Duty Determination; Sulfanilic Acid From India

                            Friday, January 8, 1993

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 AGENCY: Import Administration, International Trade Administration,
 Department of Commerce.

 EFFECTIVE DATE: January 8, 1993.

 FOR FURTHER INFORMATION CONTACT:Rick Herring, Office of Countervailing
 Investigations, Import Administration, International Trade Administration, U.S.
 Department of Commerce, 14th Street and Constitution Avenue, NW., Washington DC
 20230; telephone: (202) 482-3530.

 FINAL DETERMINATION:

 Case History

 Since our preliminary determination on August 11, 1992 (57 FR 35784), the following
 events have occurred. On August 24, 1992, we received a supplemental response from the
 Government of India. On August 25, 1992, we aligned the final countervailing duty
 determination with the final determination in the companion antidumping duty 

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 investigation (57 FR 38485). On November 16, 1992, we received a submission from PMC
 Specialities, an importer of sulfanilic acid from India.

 Scope of Investigation

 The products covered by this investigation are all grades of sulfanilic acid, which include
 technical (or crude) sulfanilic acid, refined (or purified) sulfanilic acid and sodium salt of
 sulfanilic acid (sodium sulfanilate).
 Sulfanilic acid is a synthetic organic chemical produced from the direct sulfonation of
 aniline with sulfuric acid. Sulfanilic acid is used as a raw material in the production of
 optical brighteners, food colors, specialty dyes, and concrete additives. The principal
 differences between the grades are the undesirable quantities of residual aniline and alkali
 insoluble materials present in the sulfanilic acid. All grades are available as dry, free flowing
 powders.
 Technical Sulfanilic acid, currently classifiable under the subheading 2921.42.24.20 of the
 Harmonized Tariff Schedule of the United States (HTSUS), contains 96 percent minimum
 Sulfanilic acid, 1.0 percent maximum aniline, and 1.0 percent maximum alkali insoluble
 materials. Refined sulfanilic acid, also currently classifiable under the HTSUS subheading
 2921.42.24.20, contains 98 percent minimum Sulfanilic acid, 0.5 percent maximum
 aniline, and 0.25 percent maximum alkali insoluble materials. Refined sodium salt of
 sulfanilic acid (sodium sulfanilate), currently classifiable under the HTSUS subheading
 2921.42.70, is a granular or crystalline material containing 75 percent minimum
 equivalent sulfanilic acid, 0.5 percent maximum aniline, and 0.25 percent maximum alkali
 insoluble materials based on the equivalent sulfanilic acid content.
 Although the HTSUS subheadings are provided for convenience and customs purposes, our
 written description of the scope of this proceeding is dispositive.

 Analysis of the Programs

 We did not receive timely or complete responses to our questionnaire from any of the
 producers or exporters of Sulfanilic acid from India. Therefore, in accordance with section
 776(c) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 355.37 (1992), we used
 the best information available to calculate the estimated net subsidy conferred upon the
 production and exportation of sulfanilic acid from India.
 We used information provided by the petitioner as the best information available.
 Petitioner asserted that the net subsidy conferred on the production and exportation of
 Sulfanilic acid was 43.71 percent ad valorem.

 Comment

 As previously noted, we received one submission from a U.S. importer. The portion of that
 submission relevant to this proceeding can be summarized as follows. The U.S. importer
 argues that there are three different grades of sulfanilic acid and that each of these grades
 should be considered separate products. In support of its position, the importer points to
 differences in the physical characteristics of various grades of sulfanilic acid due to purity
 levels. Further, the importer maintains that the different grades of sulfanilic acid are not
 always interchangeable for reasons associated with price and use of the product.
 The U.S. importer also points out that the U.S. industry no longer manufactures the "pure"
 grade of sulfanilic acid and that the imposition of import duties would ultimately injure the
 domestic consumer. Accordingly, the importer requests that the Department promptly
 terminate the investigation.

 DOC Position

 The importer requests that the Department terminate this investigation, apparently based
 on a standing argument and on U.S. consumer's interests. To the extent that the importer is
 alleging that the petitioner does not have standing, the allegation is untimely pursuant to 19
 CFR 355.31(c)(2)(1992). With respect to the effect of countervailing duties on domestic
 prices, there is no provision in the statute which permits the Department to take into
 account the interests of consumers in reaching a determination of whether the foreign
 producers are being subsidized. For these reasons, we have no basis to terminate this
 proceeding.

 Verification

 Due to the lack of timely and complete responses from any of the Indian producers or
 exporters of sulfanilic acid, we did not conduct verification.

 Suspension of Liquidation

 In accordance with our affirmative preliminary determination, we instructed the Customs
 Service to suspend liquidation of all entries of sulfanilic acid from India which were
 entered, or withdrawn from warehouse, for consumption, on or after August 11, 1992, the
 date of publication of our preliminary determination in the Federal Register. As noted
 above, however, this final countervailing duty determination was postponed from
 December 9, 1992, to December 29, 1992, to coincide with the final determination in the
 companion antidumping investigation.
 Under Article 5, paragraph 3 of the General Agreement on Tariffs and Trade Subsidies Code,
 provisional measures cannot be imposed beyond a period of four months. Therefore, we
 have instructed the Customs Service to discontinue the suspension of liquidation of the
 subject merchandise entered on or after December 9, 1992, the date that falls four months
 after the preliminary determination in this case. We will reinstate suspension of liquidation
 under section 703(d) of the Act, if the ITC issues a final affirmative injury determination,
 and will require a cash deposit of estimated countervailing duties equal to 43.71
 percent ad valorem for all manufacturers, producers, and exporters in India of sulfanilic
 acid.

 ITC Notification

 In accordance with section 705(d) of the Act, we will notify the ITC of our determination. If
 the ITC determines that material injury, or the threat of material injury, does not exist, this
 proceeding will be terminated and all estimated duties deposited or securities posted as a
 result of the suspension of liquidation will be refunded or cancelled. If, however, the ITC
 determines that such injury does exist, we will issue a countervailing duty order,
 directing Customs officers to assess countervailing duties on all entries of sulfanilic acid
 from India entered, or withdrawn from warehouse, for consumption, as described in the
 "Suspension of Liquidation" section of this notice.

 Return or Destruction of Proprietary Information

 This notice serves as the only reminder to parties subject to an Administrative Protective
 Order (APO) of their responsibility concerning the return or destruction of proprietary
 information disclosed under APO in accordance with 19 CFR 355.34(d). Failure to comply is
 a violation of the APO.
 This determination is published pursuant to section 705(d) of the Act (19 U.S.C. 1671(d))
 and 19 CFR 355.20(a)(4) (1992).

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 Dated: December 29, 1992.

 Alan M. Dunn,

 Assistant Secretary for Import Administration.

 (FR Doc. 93-358 Filed 1-7-93; 8:45 am)

 BILLING CODE 3510-DS-M