April 28, 2005
News Release 05-045
Inv. No. 731-TA-653 (Second Review)
Contact: Peg O'Laughlin, 202-205-1819

ITC MAKES NEGATIVE DETERMINATION IN FIVE-YEAR (SUNSET) REVIEW CONCERNING SEBACIC ACID FROM CHINA

The U.S. International Trade Commission (ITC) today determined that revoking the existing antidumping duty order on sebacic acid from China would not be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

As a result of the Commission's negative determination, the existing order on imports of sebacic acid from China will be revoked.

All six Commissioners found that revoking the existing order would not be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

Today's action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. See the attached page for background on this five-year (sunset) review.

The Commission's public report Sebacic Acid from China (Inv. No. 731-TA-653 (Second Review), USITC Publication 3775, May 2005) will contain the views of the Commission and information developed during the review.

Copies may be requested after June 1, 2005, by calling 202-205-1809 or by contacting the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by fax at 202-205-2104.


BACKGROUND

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (ITC) within a reasonably foreseeable time.

The Commission's institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the ITC's notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews. Commissioners base their injury determination in expedited reviews on the facts available, including the Commission's prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.

The five-year (sunset) review concerning Sebacic Acid from China was instituted on April 1, 2004.

On July 6, 2004, the Commission voted to conduct a full review. Chairman Stephen Koplan, Vice Chairman Deanna Tanner Okun, and Commissioners Marcia E. Miller, Jennifer A. Hillman, and Daniel R. Pearson concluded that the domestic group response was adequate and the respondent group response was inadequate, but that circumstances warranted a full review. Commissioner Charlotte R. Lane concluded that both the domestic group response and the respondent group response were adequate and voted for a full review.

Information concerning the reasons for the Commission's vote to conduct a full review and a schedule for the review were published in the Federal Register on July 28, 2004. The schedule provided for the Commission to vote and transmit its views to the Department of Commerce by February 8, 2005, 48 days prior to the 360 day statutory deadline of March 28, 2005; pursuant to that schedule, the record in the review was closed on January 14, 2005. On November 26, 2004, the Department of Commerce published the preliminary results of a changed circumstances review that determined that Tianjin, a Chinese exporter of sebacic acid previously excluded from the antidumping duty order, had resumed dumping in the United States. Commerce provisionally reinstated the order with respect to Tianjin.

At that time, the Commission rescheduled its five-year (sunset) review to utilize the remaining 48 days and exercised its authority to extend the review period by up to 90 days. The Commission reopened the record in the review to allow for comments on the final results of Commerce's changed circumstances review.

Information concerning this review is posted on the ITC's Internet site at www.usitc.gov (under "Five-Year (Sunset) Reviews"/"Sebacic Acid - China (2nd Review)").

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