Final Affirmative Countervailing Duty Determination: Bottle-Grade Polyethylene Terephthalate (PET) Resin From India, 13460-13462 [E5-1219]
Download as PDF
13460
Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 / Notices
The revised weighted-average
dumping margin for the period August
1, 2002, through July 31, 2003, are listed
below:
DEPARTMENT OF COMMERCE
International Trade Administration
[C–533–842]
Revised
margin
(percent)
Final Affirmative Countervailing Duty
Determination: Bottle-Grade
Polyethylene Terephthalate (PET)
V&M do Brasil, S.A .......................
7.96 Resin From India
AGENCY: Import Administration,
Cash Deposit Rates
International Trade Administration,
Department of Commerce.
The following antidumping duty
SUMMARY: The Department of Commerce
deposits will be required on all
(the Department) has reached a final
shipments of seamless line pipe
determination that countervailable
products from Brazil entered, or
subsidies are being provided to
withdrawn from warehouse, for
producers and exporters of Bottle-Grade
consumption, effective on or after the
(BG) Polyethylene Terephthalate (PET)
publication date of the amended final
Resin from India. For information on the
results of this administrative review, as
estimated countervailable subsidy rates,
provided by section 751(a)(1) of the Act: please see the ‘‘Final Determination’’
(1) The cash deposit rate for the
section of this notice.
reviewed company will be the rate
EFFECTIVE DATE: March 21, 2005.
listed above; (2) for previously reviewed FOR FURTHER INFORMATION CONTACT:
or investigated companies not listed
Douglas Kirby or Addilyn Chamsabove, the cash deposit rate will
Eddine, AD/CVD Operations, Office 6,
continue to be the company-specific rate Import Administration, U.S. Department
published for the most recent period; (3) of Commerce, Room 7866, 14th Street
if the exporter is not a firm covered in
and Constitution Avenue, NW.,
this review, the previous review, or the
Washington, DC 20230; telephone: (202)
original investigation, but the
482–3782 or (202) 482–0648,
manufacturer is, the cash deposit rate
respectively.
will be the rate established for the most
SUPPLEMENTARY INFORMATION:
recent period for the manufacturer of
Case History
the merchandise; and (4) if neither the
exporter nor the manufacturer is a firm
On August 30, 2004 the Department
covered in this or any previous reviews, published the Notice of Preliminary
the cash deposit rate will be 124.94
Affirmative Countervailing Duty
percent, the ‘‘All Others’’ rate
Determination and Alignment with
established in the less-than-fair-value
Final Antidumping Duty Determination:
investigation. These cash deposit
Bottle-Grade Polyethylene
requirements shall remain in effect until Terephthalate (PET) Resin from India,
publication of the final results of the
69 FR 52866 (August 30, 2004)
next administrative review.
(Preliminary Determination). Since the
issuance of the Preliminary
Assessment Rates
Determination, the following events
have occurred. Between September 9
In accordance with section 19 CFR
and November 17, 2004, the Department
356.8(a), the Department will issue
issued supplemental questionnaires to
appropriate assessment instructions
each of the respondent parties and all
directly to U.S. Customs and Border
parties submitted timely responses to
Protection (CBP) on or after 41 days
the questionnaires. On September 29,
following the publication of these
2004, the United States PET Resin
amended final results of review to effect
Producers Coalition (Petitioner)
the Final Results and these amended
requested a hearing pursuant to 19 CFR
final results.
351.310(c) and the Department’s
We are issuing and publishing these
Preliminary Determination.
amended final results and notice in
From December 2 through December
accordance with sections 751(a)(1),
17, 2004, the Department conducted
verification of the questionnaire
751(h) and 771(i) of the Act.
responses provided by the Government
Dated: March 14, 2005.
of India (GOI) and the four respondent
Joseph A. Spetrini,
parties: Reliance Industries, Ltd.
Acting Assistant Secretary for Import
(Reliance), Futura Polyesters, Ltd.
Administration.
(Futura), South Asia Pertrochem Ltd.
[FR Doc. E5–1223 Filed 3–18–05; 8:45 am]
(SAPL), and Elque Polyesters Ltd.
BILLING CODE 3510–DS–P
(Elque). The Department issued the GOI
Manufacturer/exporter
VerDate jul<14>2003
18:36 Mar 18, 2005
Jkt 205001
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
and the Reliance Industries Ltd.
(Reliance) verification reports on
January 25, 2005. See Memoranda to the
File, Countervailing Duty Investigation
of Polyethylene Terephthalate (PET)
Resin from India: Verification of the
Government of India’s (GOI)
Questionnaire Responses (GOI
Verification Report); and Countervailing
Duty Investigation of Polyethylene
Terephthalate (PET) Resin from India:
Verification of Reliance Industries Ltd.
(Reliance Verification Report). The
Department issued the Elque, Futura,
and SAPL verification reports on
January 26, 2004. See Memoranda to the
File, Countervailing Duty Investigation
of PET Resin from India: Verification of
Elque Ltd. (Elque Verification Report);
Countervailing Duty Investigation of
Polyethylene Terephthalate (PET) Resin
from India: Verification of Futura
Polyesters Ltd. (Futura Verification
Report); and Countervailing Duty
Investigation of PET Resin from India:
Verification of South Asia Petrochem
Ltd. (SAPL Verification Report). In
addition, on February 14, 2005, the
Department issued a memorandum
containing our preliminary analysis of
the Export Oriented Unit (EOU)
programs which we had noted in the
Preliminary Determination were
programs for which additional
information was needed. See
Memoranda to the File from Sean Carey,
Acting Program Manager, through Dana
S. Mermelstein, Acting Director, AD/
CVD Operations, Office 6, to Barbara E.
Tillman, Acting Deputy Assistant
Secretary, for Import Administration,
Countervailing Duty Investigation of
Polyethylene Terephthalate (PET) Resin
from India: Preliminary Analysis of the
Export Oriented Unit (EOU) Program on
Duty Drawback on Furnace Oil Procured
from Domestic Oil Companies Program
and Purchases of Materials and Other
Inputs Free of Central Excise Duty (EOU
Program Memorandum).
On February 4, 2005, case briefs were
filed by the Petitioner, the GOI,
Reliance, and SAPL. On February 9,
2005, the Petitioner, Reliance, and SAPL
filed rebuttal briefs. Neither Futura nor
Elque filed case or rebuttal briefs. On
February 11, 2005, the Petitioner
withdrew its request for a hearing.
The Department also allowed parties
a separate opportunity to file comments
and rebuttal comments on our EOU
Program Memorandum. On February 17,
2005, such comments were filed by the
Petitioner, the GOI, Reliance and SAPL.
On February 22, 2005, the Petitioner
submitted rebuttal comments. Also, on
February 17, 2005, Reliance requested
that the Department proceed with a
hearing. On February 18, and February
E:\FR\FM\21MRN1.SGM
21MRN1
Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 / Notices
22, 2005, the Petitioner requested that
the Department reject Reliance’s request
for a hearing as untimely. The
Department concurred with the
Petitioner that under section 351.310 of
the Department’s regulations, the
request for a hearing was untimely. See
Memorandum to the File from Douglas
M. Kirby, Case Analyst, Office 6, Import
Administration, to Dana S. Mermelstein,
Acting Director, AD/CVD Operations,
Office 6, Countervailing Duty
Investigation: Polyethylene
Terephthalate (PET) Resin from India;
Response to the February 17, 2005
Submission of Reliance Industries
Limited (Reliance), dated February 24,
2005.
Period of Investigation
The period of investigation (POI) for
which we are measuring subsidies is
April 1, 2003, through March 31, 2004,
which corresponds to the most recently
completed fiscal year for all of the
respondent companies. See section
351.204(b)(2) of the Department’s
regulations.
Scope of the Investigation
The merchandise covered by this
investigation is polyethylene
terephthalate (PET) bottle-grade resin,
defined as having an intrinsic viscosity
of at least .68 deciliters per gram but not
more than .86 deciliters per gram. The
scope includes bottle-grade PET resin
that contains various additives
introduced in the manufacturing
process. The scope does not include
post-consumer recycle (PCR) or postindustrial recycle (PIR) PET resin;
however, included in the scope is any
bottle-grade PET resin blend of virgin
PET bottle-grade resin and recycled PET
(RPET). Waste and scrap PET are
outside the scope of the investigation.
Fiber-grade PET resin, which has an
intrinsic viscosity of less than .68
deciliters per gram, is also outside the
scope of the investigation.
The merchandise subject to this
investigation is properly classified
under subheading 3907.60.0010 of the
Harmonized Tariff Schedule of the
United States (HTSUS); however,
merchandise classified under HTSUS
subheading 3907.60.0050 that otherwise
meets the written description of the
scope is also subject to these
investigations. Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the merchandise
under investigation is dispositive.
Analysis of Comments Received
All issues raised by the interested
parties in their case and rebuttal briefs,
VerDate jul<14>2003
18:36 Mar 18, 2005
Jkt 205001
as well as their comments on our EOU
Program Memorandum are addressed in
the ‘‘Issues and Decision Memorandum’’
(Decision Memorandum), dated March
14, 2005, which is hereby adopted by
this notice. A list of the issues which
parties have raised is attached to this
notice as Appendix I. Parties can find a
complete discussion of all issues raised
in this investigation and the
corresponding recommendations in this
public memorandum, which is on file in
the Central Records Unit (CRU) at Room
B099 of the main Commerce building. A
complete version of the Decision
Memorandum is available at https://
www.ia.ita.doc.gov under the heading
‘‘Federal Register Notices.’’ The paper
copy and the electronic version of the
Decision Memorandum are identical in
content.
Final Determination
In accordance with section
705(c)(1)(B)(i) of the Act, we have
determined individual rates for
Reliance, SAPL, Futura, and Elque. To
calculate the ‘‘all others’’ rate, we
weight-averaged the individual
company rates by each company’s
respective sales of subject merchandise
made to the United States during the
POI. These rates are summarized in the
table below:
Producer/exporter
Reliance Industries Ltd .............
South Asia Petrochem Ltd .......
Futura Polyesters Ltd ...............
Elque Polyesters Ltd ................
All Others ..................................
In accordance with our preliminary
affirmative determination, we instructed
U.S. Customs and Border Protection
(CBP) to suspend liquidation of all
entries of PET Resin from India, which
were entered or withdrawn from
warehouse, for consumption on or after
August 30, 2004, the date of the
publication of our Preliminary
Determination in the Federal Register.
In accordance with section 703(d) of the
Act, we instructed CBP to discontinue
the suspension of liquidation for
merchandise entered on or after
December 28, 2004, but to continue the
suspension of liquidation of entries
made between August 30, 2004, through
December 27, 2004.
If the International Trade Commission
(ITC) issues a final affirmative injury
determination, we will issue a
countervailing duty order, reinstate
suspension of liquidation under section
Frm 00019
Fmt 4703
Sfmt 4703
706(a) of the Act for all entries, and
require a cash deposit of estimated
countervailing duties for such entries of
merchandise at the rates indicated
above. If the ITC determines that
material injury, or 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 canceled.
ITC Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. In addition, we are
making available to the ITC all nonprivileged and non-proprietary
information related to this investigation.
We will allow the ITC access to all
privileged and business proprietary
information in our files, provided that
the ITC confirms that it will not disclose
such information, either publicly or
under an administrative protective order
(APO), without the written consent of
the Assistant Secretary for Import
Administration.
Return or Destruction of Proprietary
Information
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to APO of their
Subsidy rate responsibility concerning the
(percent
destruction of proprietary information
ad valorem) disclosed under APO in accordance
20.26 with 19 CFR 351.305(a)(3). Failure to
19.08 comply is a violation of the APO.
This determination is issued and
6.15
12.41 published pursuant to sections 705(d)
14.63 and 777(i) of the Act.
Suspension of Liquidation
PO 00000
13461
Dated: March 14, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
Appendix I: Issues and Decision
Memorandum
I. List of Comments
Comment 1: Futura’s Debonding and
Adjustment to Duty Free Exemptions
Comment 2: Futura’s Central Sales Tax
Reimbursement
Comment 3: WBIDC Investment in SAPL
Comment 4: DEPS Credit Offset
Comment 5: EOU Exemptions on Raw
Materials
Comment 6: Program-Wide Change of DEPS
Rate
Comment 7: Numerator and Denominator for
the EPCGS Subsidy Calculation
Comment 8: Benchmark Interest Rates for
EPCGS
Comment 9: EPCGS Benefits Received in the
POI
Comment 10: Allocation of EPCGS Benefits
and 0.5 Percent Test
Comment 11: Reliance’s Loan Benchmarks
E:\FR\FM\21MRN1.SGM
21MRN1
13462
Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 / Notices
for State of Maharashtra (SOM) and State
of Gujarat (SOG) Sales Tax Incentive
Programs
Comment 12: Average Useful Life (AUL) for
SAPL’s Assets
Comment 13: Effective Interest Rate of
SAPL’s Pre-Shipment Export Loans
Comment 14: Treatment of Exemptions on
Imported Capital Goods
Comment 15: SAPL’s Cash Deposit Rate
Comment 16: Central Sales Tax
Reimbursements on Raw Materials
Comment 17: EOU Duty Drawback on
Furnace Oil
II. Subsidies Valuation Information
A. Loan Benchmarks
B. Allocation Period
C. Trading Company Subsidies
III. Analysis of Programs
A. Programs Determined To Confer Subsidies
1. GOI Programs
a. Pre- and Post-Shipment Export
Financing
b. Duty Entitlement Passbook Scheme
(DEPS)
c. Income Tax Exemption Scheme, Section
80 HHC
d. Export Promotion Capital Goods Scheme
(EPCGS)
e. Export Oriented Units (EOUs) Program:
Duty Drawback on Furnace Oil Procured
From Domestic Oil Companies
f. Export Oriented Units (EOUs) Program:
Duty-Free Import of Capital Goods and
Raw Materials
g. Export Oriented Units (EOUs) Program:
Reimbursement of Central Sales Tax
(CST) Paid on Materials Procured
Domestically
2. State Programs
a. State of Gujurat (SOG) Program: Sales
Tax Incentive Scheme
b. State of Maharashtra (SOM) Program:
Sales Tax Incentive Scheme
c. State of West Bengal (SWB) Sales Tax
Incentive Scheme
B. GOI Program Determined To Be Not
Countervailable
Export Oriented Units (EOUs) Programs:
Purchase of Material and Other Inputs
Free of Central Excise Duty
C. Programs Determined To Be Not Used
GOI Programs
a. Status Certificate Program
b. Market Development Assistance
c. Income Tax Exemption Scheme
(Sections 10A and 10B)
d. Loan Guarantees from the GOI
e. Special Economic Zones (SEZs) formerly
called Export Processing Zones (EPZs)
D. Program Determined To Be Terminated
Exemption of Export Credit From Interest
Taxes GOI Programs
IV. Analysis of Comments
V. Recommendation
[FR Doc. E5–1219 Filed 3–18–05; 8:45 am]
BILLING CODE 3510–DS–P
VerDate jul<14>2003
18:36 Mar 18, 2005
Jkt 205001
DEPARTMENT OF COMMERCE
International Trade Administration
[C–549–824]
Final Negative Countervailing Duty
Determination: Bottle-Grade
Polyethylene Terephthalate (PET)
Resin From Thailand
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) has reached a final
determination that countervailable
subsidies are not being provided to
producers of bottle-grade (BG) PET
Resin from Thailand. For information
on the estimated countervailable
subsidy rates, please see the ‘‘Final
Determination’’ section of this notice.
DATES: Effective Date: March 21, 2005.
FOR FURTHER INFORMATION CONTACT: Dara
Iserson or Thomas Gilgunn, AD/CVD
Operations, Office 6, Import
Administration, U.S. Department of
Commerce, Room 7866, 14th Street and
Constitution Avenue, NW., Washington,
DC 20230; telephone: (202) 482–4052
and (202) 482–4236, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Case History
On August 30, 2004, the Department
published the Preliminary Negative
Countervailing Duty Determination and
Alignment With Final Antidumping
Duty Determination: Bottle-Grade
Polyethylene Terephthalate (PET) Resin
From Thailand, 69 FR 52862 (August
30, 2004) (Preliminary Determination).
Since the Preliminary Determination,
the Department issued additional
supplemental questionnaires to, and
conducted verification of the responses
provided by, the Royal Thai
Government (RTG), Bangkok Polyester
Company (BPC), Thai Shinkong
Industry Corporation Limited (Thai
Shinkong), Indopet Thailand Limited
(Indopet), and Asiapet Thailand Limited
(Asiapet) (collectively—
‘‘Respondents’’).
The Department issued the RTG,
Indopet, Thai Shinkong, and BPC
verification reports on January 10, 2005.
See Memoranda to the File from
Thomas Gilgunn to Dana Mermelstein,
Countervailing Duty Investigation of
Bottle Grade Polyethylene Terephthalate
(PET) Resin from Thailand: Verification
of the Questionnaire Responses
Submitted by the Royal Thai
Government (RTG); Countervailing Duty
Investigation of Bottle Grade
Polyethylene Terephthalate (PET) Resin
from Thailand: Verification of the
PO 00000
Frm 00020
Fmt 4703
Sfmt 4703
Questionnaire Responses Submitted by
Indopet (Thailand) Limited (Indopet);
Countervailing Duty Investigation of
Bottle Grade Polyethylene Terephthalate
(PET) Resin from Thailand: Verification
of the Questionnaire Responses
Submitted by Thai Shinkong Industry
Company Limited (Thai Shinkong); and
Countervailing Duty Investigation of
Bottle Grade Polyethylene Terephthalate
(PET) Resin from Thailand: Verification
of the Questionnaire Responses
Submitted by Bangkok Polyester Public
Company Limited (BPC). On January 18,
2005, the Department issued the Asiapet
verification report. see Countervailing
Duty Investigation of Bottle Grade
Polyethylene Terephthalate (PET) Resin
from Thailand: Verification of the
Questionnaire Responses Submitted by
Asiapet Thailand Limited (Asiapet).
On January 21, 2005, case briefs were
filed by Petitioner and by all
Respondents: RTG, Indopet, Asiapet,
Thai Shinkong, and BPC. On January 26,
2005, Respondents and Petitioner filed
their respective rebuttal briefs. On
February 3, 2005, Respondents filed
letter objecting to ‘‘untimely legal
information’’ filed in the Petitioner’s
January 26, 2005, rebuttal brief. On
February 7, 2005, Petitioners responded
to the arguments raised in Respondent’s
February 3, 2005, letter. On February 9,
2005, the Department notified
Petitioners that certain legal information
raised in its January 26, 2005, rebuttal
brief did not comply with section
351.309(d)(2) of the regulations. On
February 10, 2005, Petitioner refiled its
rebuttal brief.
Period of Investigation
The period of investigation (POI) for
which we are measuring subsidies is
January 1, 2003, through December 31,
2003, which corresponds to the most
recently completed fiscal year for the
respondent companies. See section
351.204(b)(2) of the Department’s
regulations.
Scope of the Investigation
The merchandise covered by this
investigation is polyethylene
terephthalate (PET) bottle-grade resin,
defined as having an intrinsic viscosity
of at least .68 deciliters per gram but not
more than .86 deciliters per gram. The
scope includes bottle-grade PET resin
that contains various additives
introduced in the manufacturing
process. The scope does not include
post-consumer recycle (PCR) or postindustrial recycle (PIR) PET resin;
however, included in the scope is any
bottle-grade PET resin blend of virgin
PET bottle-grade resin and recycled PET
(RPET). Waste and scrap PET are
E:\FR\FM\21MRN1.SGM
21MRN1
Agencies
[Federal Register Volume 70, Number 53 (Monday, March 21, 2005)]
[Notices]
[Pages 13460-13462]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1219]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-842]
Final Affirmative Countervailing Duty Determination: Bottle-Grade
Polyethylene Terephthalate (PET) Resin From India
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has reached a
final determination that countervailable subsidies are being provided
to producers and exporters of Bottle-Grade (BG) Polyethylene
Terephthalate (PET) Resin from India. For information on the estimated
countervailable subsidy rates, please see the ``Final Determination''
section of this notice.
EFFECTIVE DATE: March 21, 2005.
FOR FURTHER INFORMATION CONTACT: Douglas Kirby or Addilyn Chams-Eddine,
AD/CVD Operations, Office 6, Import Administration, U.S. Department of
Commerce, Room 7866, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-3782 or (202) 482-0648,
respectively.
SUPPLEMENTARY INFORMATION:
Case History
On August 30, 2004 the Department published the Notice of
Preliminary Affirmative Countervailing Duty Determination and Alignment
with Final Antidumping Duty Determination: Bottle-Grade Polyethylene
Terephthalate (PET) Resin from India, 69 FR 52866 (August 30, 2004)
(Preliminary Determination). Since the issuance of the Preliminary
Determination, the following events have occurred. Between September 9
and November 17, 2004, the Department issued supplemental
questionnaires to each of the respondent parties and all parties
submitted timely responses to the questionnaires. On September 29,
2004, the United States PET Resin Producers Coalition (Petitioner)
requested a hearing pursuant to 19 CFR 351.310(c) and the Department's
Preliminary Determination.
From December 2 through December 17, 2004, the Department conducted
verification of the questionnaire responses provided by the Government
of India (GOI) and the four respondent parties: Reliance Industries,
Ltd. (Reliance), Futura Polyesters, Ltd. (Futura), South Asia
Pertrochem Ltd. (SAPL), and Elque Polyesters Ltd. (Elque). The
Department issued the GOI and the Reliance Industries Ltd. (Reliance)
verification reports on January 25, 2005. See Memoranda to the File,
Countervailing Duty Investigation of Polyethylene Terephthalate (PET)
Resin from India: Verification of the Government of India's (GOI)
Questionnaire Responses (GOI Verification Report); and Countervailing
Duty Investigation of Polyethylene Terephthalate (PET) Resin from
India: Verification of Reliance Industries Ltd. (Reliance Verification
Report). The Department issued the Elque, Futura, and SAPL verification
reports on January 26, 2004. See Memoranda to the File, Countervailing
Duty Investigation of PET Resin from India: Verification of Elque Ltd.
(Elque Verification Report); Countervailing Duty Investigation of
Polyethylene Terephthalate (PET) Resin from India: Verification of
Futura Polyesters Ltd. (Futura Verification Report); and Countervailing
Duty Investigation of PET Resin from India: Verification of South Asia
Petrochem Ltd. (SAPL Verification Report). In addition, on February 14,
2005, the Department issued a memorandum containing our preliminary
analysis of the Export Oriented Unit (EOU) programs which we had noted
in the Preliminary Determination were programs for which additional
information was needed. See Memoranda to the File from Sean Carey,
Acting Program Manager, through Dana S. Mermelstein, Acting Director,
AD/CVD Operations, Office 6, to Barbara E. Tillman, Acting Deputy
Assistant Secretary, for Import Administration, Countervailing Duty
Investigation of Polyethylene Terephthalate (PET) Resin from India:
Preliminary Analysis of the Export Oriented Unit (EOU) Program on Duty
Drawback on Furnace Oil Procured from Domestic Oil Companies Program
and Purchases of Materials and Other Inputs Free of Central Excise Duty
(EOU Program Memorandum).
On February 4, 2005, case briefs were filed by the Petitioner, the
GOI, Reliance, and SAPL. On February 9, 2005, the Petitioner, Reliance,
and SAPL filed rebuttal briefs. Neither Futura nor Elque filed case or
rebuttal briefs. On February 11, 2005, the Petitioner withdrew its
request for a hearing.
The Department also allowed parties a separate opportunity to file
comments and rebuttal comments on our EOU Program Memorandum. On
February 17, 2005, such comments were filed by the Petitioner, the GOI,
Reliance and SAPL. On February 22, 2005, the Petitioner submitted
rebuttal comments. Also, on February 17, 2005, Reliance requested that
the Department proceed with a hearing. On February 18, and February
[[Page 13461]]
22, 2005, the Petitioner requested that the Department reject
Reliance's request for a hearing as untimely. The Department concurred
with the Petitioner that under section 351.310 of the Department's
regulations, the request for a hearing was untimely. See Memorandum to
the File from Douglas M. Kirby, Case Analyst, Office 6, Import
Administration, to Dana S. Mermelstein, Acting Director, AD/CVD
Operations, Office 6, Countervailing Duty Investigation: Polyethylene
Terephthalate (PET) Resin from India; Response to the February 17, 2005
Submission of Reliance Industries Limited (Reliance), dated February
24, 2005.
Period of Investigation
The period of investigation (POI) for which we are measuring
subsidies is April 1, 2003, through March 31, 2004, which corresponds
to the most recently completed fiscal year for all of the respondent
companies. See section 351.204(b)(2) of the Department's regulations.
Scope of the Investigation
The merchandise covered by this investigation is polyethylene
terephthalate (PET) bottle-grade resin, defined as having an intrinsic
viscosity of at least .68 deciliters per gram but not more than .86
deciliters per gram. The scope includes bottle-grade PET resin that
contains various additives introduced in the manufacturing process. The
scope does not include post-consumer recycle (PCR) or post-industrial
recycle (PIR) PET resin; however, included in the scope is any bottle-
grade PET resin blend of virgin PET bottle-grade resin and recycled PET
(RPET). Waste and scrap PET are outside the scope of the investigation.
Fiber-grade PET resin, which has an intrinsic viscosity of less than
.68 deciliters per gram, is also outside the scope of the
investigation.
The merchandise subject to this investigation is properly
classified under subheading 3907.60.0010 of the Harmonized Tariff
Schedule of the United States (HTSUS); however, merchandise classified
under HTSUS subheading 3907.60.0050 that otherwise meets the written
description of the scope is also subject to these investigations.
Although the HTSUS subheadings are provided for convenience and customs
purposes, the written description of the merchandise under
investigation is dispositive.
Analysis of Comments Received
All issues raised by the interested parties in their case and
rebuttal briefs, as well as their comments on our EOU Program
Memorandum are addressed in the ``Issues and Decision Memorandum''
(Decision Memorandum), dated March 14, 2005, which is hereby adopted by
this notice. A list of the issues which parties have raised is attached
to this notice as Appendix I. Parties can find a complete discussion of
all issues raised in this investigation and the corresponding
recommendations in this public memorandum, which is on file in the
Central Records Unit (CRU) at Room B099 of the main Commerce building.
A complete version of the Decision Memorandum is available at https://
www.ia.ita.doc.gov under the heading ``Federal Register Notices.'' The
paper copy and the electronic version of the Decision Memorandum are
identical in content.
Final Determination
In accordance with section 705(c)(1)(B)(i) of the Act, we have
determined individual rates for Reliance, SAPL, Futura, and Elque. To
calculate the ``all others'' rate, we weight-averaged the individual
company rates by each company's respective sales of subject merchandise
made to the United States during the POI. These rates are summarized in
the table below:
------------------------------------------------------------------------
Subsidy
rate
Producer/exporter (percent ad
valorem)
------------------------------------------------------------------------
Reliance Industries Ltd.................................... 20.26
South Asia Petrochem Ltd................................... 19.08
Futura Polyesters Ltd...................................... 6.15
Elque Polyesters Ltd....................................... 12.41
All Others................................................. 14.63
------------------------------------------------------------------------
Suspension of Liquidation
In accordance with our preliminary affirmative determination, we
instructed U.S. Customs and Border Protection (CBP) to suspend
liquidation of all entries of PET Resin from India, which were entered
or withdrawn from warehouse, for consumption on or after August 30,
2004, the date of the publication of our Preliminary Determination in
the Federal Register. In accordance with section 703(d) of the Act, we
instructed CBP to discontinue the suspension of liquidation for
merchandise entered on or after December 28, 2004, but to continue the
suspension of liquidation of entries made between August 30, 2004,
through December 27, 2004.
If the International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate suspension of liquidation under section 706(a) of the
Act for all entries, and require a cash deposit of estimated
countervailing duties for such entries of merchandise at the rates
indicated above. If the ITC determines that material injury, or 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 canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided that the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Import Administration.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Failure to comply is a violation of the APO.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: March 14, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
Appendix I: Issues and Decision Memorandum
I. List of Comments
Comment 1: Futura's Debonding and Adjustment to Duty Free Exemptions
Comment 2: Futura's Central Sales Tax Reimbursement
Comment 3: WBIDC Investment in SAPL
Comment 4: DEPS Credit Offset
Comment 5: EOU Exemptions on Raw Materials
Comment 6: Program-Wide Change of DEPS Rate
Comment 7: Numerator and Denominator for the EPCGS Subsidy
Calculation
Comment 8: Benchmark Interest Rates for EPCGS
Comment 9: EPCGS Benefits Received in the POI
Comment 10: Allocation of EPCGS Benefits and 0.5 Percent Test
Comment 11: Reliance's Loan Benchmarks
[[Page 13462]]
for State of Maharashtra (SOM) and State of Gujarat (SOG) Sales Tax
Incentive Programs
Comment 12: Average Useful Life (AUL) for SAPL's Assets
Comment 13: Effective Interest Rate of SAPL's Pre-Shipment Export
Loans
Comment 14: Treatment of Exemptions on Imported Capital Goods
Comment 15: SAPL's Cash Deposit Rate
Comment 16: Central Sales Tax Reimbursements on Raw Materials
Comment 17: EOU Duty Drawback on Furnace Oil
II. Subsidies Valuation Information
A. Loan Benchmarks
B. Allocation Period
C. Trading Company Subsidies
III. Analysis of Programs
A. Programs Determined To Confer Subsidies
1. GOI Programs
a. Pre- and Post-Shipment Export Financing
b. Duty Entitlement Passbook Scheme (DEPS)
c. Income Tax Exemption Scheme, Section 80 HHC
d. Export Promotion Capital Goods Scheme (EPCGS)
e. Export Oriented Units (EOUs) Program: Duty Drawback on
Furnace Oil Procured From Domestic Oil Companies
f. Export Oriented Units (EOUs) Program: Duty-Free Import of
Capital Goods and Raw Materials
g. Export Oriented Units (EOUs) Program: Reimbursement of
Central Sales Tax (CST) Paid on Materials Procured Domestically
2. State Programs
a. State of Gujurat (SOG) Program: Sales Tax Incentive Scheme
b. State of Maharashtra (SOM) Program: Sales Tax Incentive
Scheme
c. State of West Bengal (SWB) Sales Tax Incentive Scheme
B. GOI Program Determined To Be Not Countervailable
Export Oriented Units (EOUs) Programs: Purchase of Material and
Other Inputs Free of Central Excise Duty
C. Programs Determined To Be Not Used
GOI Programs
a. Status Certificate Program
b. Market Development Assistance
c. Income Tax Exemption Scheme (Sections 10A and 10B)
d. Loan Guarantees from the GOI
e. Special Economic Zones (SEZs) formerly called Export
Processing Zones (EPZs)
D. Program Determined To Be Terminated
Exemption of Export Credit From Interest Taxes GOI Programs
IV. Analysis of Comments
V. Recommendation
[FR Doc. E5-1219 Filed 3-18-05; 8:45 am]
BILLING CODE 3510-DS-P