Saccharin from China - USITC

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Fourth, the Commission found that PMC was the only domestic saccharin producer and thatPMC’s capacity for producing saccharin had *** throughout the period of investigation at *** pounds. 88However, the Commission noted that PMC’s production fell throughout the period of investigation. 89Fifth, in addition to aspartame, the Commission found that other sweeteners may be substitutedfor saccharin including sugar, acesulfame-K, tagatose, alitame, and sucralose. Since these sweetenersare much more expensive than saccharin, the Commission noted that their substitution is often notconsidered economically feasible in many applications. 90Sixth, the Commission also noted that, during the 1993-94 antidumping duty investigation,there were questions concerning the quality of the Chinese product. 91 However, the Commission foundthat evidence on the record indicated that Chinese producers had corrected any quality problems thatmay have existed and met the qualification requirements of U.S. customers. 92Seventh and finally, in its conditions of competition analysis, the Commission found that nonsubjectimports had accounted for *** percent of apparent consumption in 2000, *** percent in 2001,and *** percent in 2002. 932. Current ReviewIn this five-year review, we have considered a number of likely conditions of competition in theevent the antidumping duty order regarding imports of saccharin from China were revoked.a. Demand in the U.S. MarketAs in the original investigation, because saccharin is an intermediate product that is used invarious consumer products and agricultural and industrial applications, overall U.S. demand forsaccharin is derived from the demand for the products that use it as an input. 94 These products includesoft drinks, table top sweeteners, certain foods, toothpaste, mouthwash, pharmaceuticals, animal feed,herbicides, and metal-working fluids. 95During the review period, apparent U.S. consumption of saccharin fluctuated from year to yearbut was higher in 2008 (*** pounds) than in 2003 (*** pounds). 96 PMC notes that between 2003 and2007, apparent U.S. consumption was below its level in 2002, the last full year of the original period ofinvestigation. 97 We note that although apparent U.S. consumption of saccharin did increasesignificantly in 2008, the degree of the increase is overstated because there were significant increases inimporter inventories during that year. 9888Id.89Id.90Id.91Id. at 10.92Id.93Id.94CR at II-3; PR at II-2.95CR at II-3 to II-4; PR at II-2.96CR/PR at Table C-1.97PMC Prehearing Br. at 16.98PMC Prehearing Br. at 16-17.14
. Supply in the U.S. MarketAs in the original investigation, PMC is the only domestic saccharin producer. PMC’s capacitydeclined by *** percent overall during the review period, falling from *** pounds in 2003 through 2005to *** pounds in 2006, declining to *** pounds in 2007, and then increasing to *** pounds in 2008. 99PMC’s production fell by *** percent overall during the review period, steadily declining from ***pounds in 2003 to *** pounds in 2007, and barely increasing to *** pounds in 2008. 100These very substantial declines in PMC’s capacity and production during the review period(especially since 2006) were the result of PMC’s ***. PMC claims that it was necessary for thecompany to *** 101 As discussed above, PMC now uses a reengineered Maumee process for producingsaccharin ***; 102 PMC ***. 103During the review period, PMC made capital investments in terms of retooling its Cincinnatifacility and purchasing small amounts of new equipment for its reengineered Maumee productionprocess. As noted above, these capital expenditures were small and included *** and bringing itsreengineered Maumee production process on-line. 104After its July 2006 shutdown, PMC did not produce for the remainder of 2006 nor for the entireyear of 2007. 105 In 2008, PMC resumed saccharin production using its modified process, but was onlyable to use a ***. 106 Production occurred for only three months of 2008 (June-August) and at verymodest levels (*** pounds). 107 Moreover, PMC encountered unacceptable levels of impurities in itsoutput that necessitated further changes to the production process to remove the impurities from the***. 108 In addition, PMC claims that *** experienced difficulty producing the quantity of *** neededfor it to reach projected saccharin production. 109 Production resumed in 2009 but first quarterproduction was only *** pounds. 110 PMC claims that it has now resolved the problems relating toimpurities and that it has once again resumed saccharin production, albeit still via limited batch111 112production.99CR/PR at Table C-1.100CR/PR at Table C-1.101PMC Prehearing Br. at 13-15.102CR at I-15; PR at I-11.103PMC reported that it decided ***. CR at III-5; PR at III-2. In addition to saccharin, ***. See e.g.,Telephone/Meeting/Trip Notes, Industry Analyst Telephone Notes, March 6 and April 28, 2009. PMC also hasidentified two other Chinese producers of ***. Hearing Tr. at 80 (Bouligaraki).104CR/PR at Table C-1; OINV Trip Notes, PMC Responses to Plant Trip Questions at 2 (Feb. 3, 2009) (CynthiaTrainor).105CR/PR at Table III-1 n.1.106CR at III-9; PR at III-3; PMC Responses to Staff Questions of April 20, 2009, pp. 1-2.107CR/PR at Table III-4.108CR at III-9; PR at III-3; PMC Responses to Staff Questions of April 20, 2009, pp. 1-2.109CR at III-9 n.25; PR at III-3 n.25.110CR/PR at Table III-4.111PMC Responses to Staff Questions of April 20, 2009, pp. 1-2.112PMC initially projected that it would produce *** of saccharin in 2009 and incrementally increase that outputin each year through 2013. PMC Prehearing Br. at 20. Subsequently, however, PMC revised downward itsprojection for 2009 production to ***. PMC Posthearing Br., Exh. 1 at 22. PMC also reports that it has producedjust *** of saccharin in the first quarter of 2009, and projects that it will produce *** of saccharin in April 2009.(continued...)15
Page 1 and 2: Saccharin from ChinaInvestigation N
Page 3: U.S. International Trade Commission
Page 6 and 7: CONTENTSPagePart III: Condition of
Page 9 and 10: VIEWS OF THE COMMISSIONBased on the
Page 11 and 12: mouthwash. 14 By weight, it is abou
Page 13 and 14: statement challenging PMC’s statu
Page 15 and 16: Quantity and Type of Parts Sourced
Page 17 and 18: IV.LIKELIHOOD OF CONTINUATION OR RE
Page 19: B. Conditions of Competition and th
Page 23 and 24: In the original determination, the
Page 25 and 26: significant volumes of saccharin to
Page 27 and 28: the domestic like product. 160 All
Page 29: period, increasing from *** percent
Page 32 and 33: injured or likely to be injured by
Page 34 and 35: Table I-1--ContinuedSaccharin: Summ
Page 36 and 37: Table I-2Saccharin: Administrative
Page 38 and 39: U.S. Tariff TreatmentImports of thi
Page 40 and 41: and monkeys, evidence strongly supp
Page 42 and 43: Channels of DistributionDuring the
Page 44 and 45: Table I-8Saccharin: U.S. shipments
Page 46 and 47: PMC sells saccharin ***, while mark
Page 48 and 49: The combined quantity of purchases
Page 50 and 51: Table II-5Saccharin: Interchangeabi
Page 52 and 53: adjusting supply in response to pri
Page 54 and 55: Changes in Character of Operations
Page 56 and 57: PMC further described its reenginee
Page 58 and 59: 2008, both of these forms of saccha
Page 61 and 62: PART IV: U.S. IMPORTS, THE INDUSTRY
Page 63 and 64: Table IV-2Saccharin: U.S. importers
Page 65 and 66: The capacity, production, exports,
Page 67 and 68: In order to protect the sugar indus
Page 69 and 70: Table IV-7Saccharin: Global exports
Page 71 and 72:
Trade BalancesTable IV-9 contains G
Page 73:
Information concerning exports of s
Page 76 and 77:
Figure V-1Exchange rates: Index of
Page 78 and 79:
Table V-3Saccharin: Weighted-averag
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31504 Federal Register / Vol. 73, N
Page 83 and 84:
Page 85 and 86:
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wilkins on PROD1PC63 with NOTICES72
Page 89:
APPENDIX BCALENDAR OF PUBLIC HEARIN
Page 92 and 93:
In Opposition to Continuation of th
Page 95:
Table C-1Saccharin: Summary data co
Page 99 and 100:
U.S. PRODUCERS COMMENTSThe Commissi
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***“***.”***“No.”***“No.
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DOC/ITC regulations. Their own prod
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***“*** could lower inventories b
Page 107 and 108:
***“*** cannot comment on this, n
Page 109:
The Commission requested foreign pr
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Saccharin from China - USITC

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