Laminated Woven Sacks from the People's Republic of China: Initiation of Antidumping Duty Investigation, 40833-40838 [E7-14370]
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Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices
Dated: July 18, 2007.
Steven T. Eubanks,
Forest Supervisor.
[FR Doc. 07–3619 Filed 7–24–07; 8:45 am]
BILLING CODE 3410–11–M
DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
PUBLIC CALL IN NUMBER:
1–800–597–
7623.
Meeting Agenda
I. Approval of Agenda.
II. Approval of Minutes of July 13, Meeting.
III. Announcements.
IV. Staff Director’s Report.
V. Program Planning.
• FY 2007 Statutory Report.
VI. Future Agenda Items.
VII. Adjourn.
Notice Inviting Applications for
Biomass Research and Development;
Correction
CONTACT PERSON FOR FURTHER
INFORMATION: Manuel Alba, Press
Rural Business-Cooperative
Service, USDA.
ACTION: Notice; correction.
Dated: July 23, 2007.
David Blackwood,
General Counsel.
[FR Doc. 07–3663 Filed 7–23–07; 3:21 pm]
AGENCY:
SUMMARY: The U.S. Department of
Agriculture (USDA) published a
document in the Federal Register of
Monday, June 11, 2007, concerning the
joint solicitation of applications for
USDA and the Department of Energy
(DOE) for financial assistance
addressing research and development of
biomass based products, bioenergy,
biofuels, and related products. This
document contained information
regarding the grant amount in USDA
funding.
FOR FURTHER INFORMATION CONTACT: Lisa
Siesennop, Business Programs, Loan
and Grant Analyst, USDA Rural
Development, STOP 3225, Room 6870,
1400 Independence Avenue, SW.,
Washington, DC 20250–3225.
Telephone: (202) 690–3810, Fax: (202)
720–6561.
Correction
In the Federal Register of June 11,
2007, FR Doc. 07–2865, on page 32060,
in the first column, under Grant
Amounts, correct the first sentence to
read: Up to $4 million in DOE funding
and up to $14 million in USDA funding
is available for new awards under this
Solicitation.
Dated: July 16, 2007.
Ben Anderson,
Acting Administrator,Rural BusinessCooperative Service.
[FR Doc. E7–14383 Filed 7–24–07; 8:45 am]
BILLING CODE 3410–XY–P
COMMISSION ON CIVIL RIGHTS
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United States Commission on
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ACTION: Notice of meeting.
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AGENCY:
Thursday, August 2,
2007; 6 p.m.
PLACE: Via Teleconference.
DATE AND TIME:
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and
Communications, (202) 376–8582.
BILLING CODE 6335–01–P
DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 24–2007]
Foreign-Trade Zone 26—Atlanta, GA;
Request for Manufacturing Authority;
Perkins Shibaura Engines LLC (Diesel
Engines)
An application has been submitted to
the Foreign-Trade Zones Board (the
Board) by Georgia Foreign-Trade Zone,
Inc., grantee of FTZ 26, pursuant to
Section 400.28(a)(2) of the Board’s
regulations (15 CFR part 400),
requesting authority on behalf of
Perkins Shibaura Engines LLC (Perkins
Shibaura) to manufacture diesel engines
under FTZ procedures within FTZ 26. It
was formally filed on July 19, 2007.
The Perkins Shibaura facility (150
employees) is located at 325 Green
Valley Road within the Green Valley
Industrial Park (Site 6) in Griffin,
Georgia. Under FTZ procedures, Perkins
Shibaura would assemble up to 50,000
compact diesel engines (HTSUS
8408.90; 10–60 horsepower) for the U.S.
market and export. Foreign components
that would be used in the FTZ assembly
activity include: Fuel/water pumps,
injectors, crankshafts, camshafts,
flywheels, pulleys, filters, motors,
glowplugs, seals and o-rings, bearings
and housings, tubes/pipes/hoses of
rubber, belts, flanges, spring/lock
washers, fasteners, fittings, cylinder
heads, pumps, actuator motors,
compressors, cooling fans, holders, air
filters, gears, gearboxes, speed changers,
torque converters, ball/roller screws,
generators, ignition parts, electrical
switches and connectors, process
control instruments, paints, gaskets,
sealants, stoppers/lids, labels, decals,
articles of graphite or carbon, adaptors,
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tubes, pipes, plugs, heat exchangers,
brake rotors, governors, brackets,
solenoids and actuators, electrical
converters/transformers/inductors,
printed circuit boards, sensors, senders,
meters and gauges, instruments; and
signaling equipment (duty rates: free—
9.0%).
FTZ procedures would exempt
Perkins Shibaura from Customs duty
payments on the foreign components
used in export production. On
shipments to the U.S. market, Perkins
Shibaura could elect the finished engine
duty rate (free) for the foreign
components used in production when
the finished engines are entered for U.S.
consumption from the zone. The
application indicates that the company
would also realize duty deferral and
certain logistical/supply chain savings.
Public comment is invited from
interested parties. Submissions (original
and 3 copies) shall be addressed to the
Board’s Executive Secretary at the
following address: Office of the
Executive Secretary, Room 2111, U.S.
Department of Commerce, 1401
Constitution Avenue, NW.,Washington,
DC 20230–0002. The closing period for
receipt of comments is August 24, 2007.
A copy of the application will be
available for public inspection at the
Office of the Foreign-Trade Zones
Board’s Executive Secretary at the
address listed above. For further
information, contact Pierre Duy,
examiner, at: pierre_duy@ita.doc.gov, or
(202) 482–1378.
Dated: July 19, 2007.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E7–14369 Filed 7–24–07; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
A–570–916
Laminated Woven Sacks from the
People’s Republic of China: Initiation
of Antidumping Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: July 25, 2007.
FOR FURTHER INFORMATION CONTACT:
Catherine Bertrand, AD/CVD
Operations, Office 9, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–3207.
AGENCY:
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Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices
SUPPLEMENTARY INFORMATION:
INITIATION OF INVESTIGATION:
The Petition
On June 28, 2007, the Department of
Commerce (‘‘Department’’) received a
petition concerning imports of
laminated woven sacks (‘‘LWS’’) from
the People’s Republic of China (‘‘PRC’’)
filed in proper form by the Laminated
Woven Sacks Committee and its
individual members, Bancroft Bags, Inc.,
Coating Excellence International, LLC,
Hood Packaging Corporation, Mid–
America Packaging, LLC, and Polytex
Fibers Corporation (collectively,
(‘‘Petitioners’’). See Petition on
Laminated Woven Sacks from the
People’s Republic of China filed on June
28, 2007 (‘‘Petition’’). On July 2, and 11,
2007, the Department issued requests
for additional information and
clarification of certain areas of the
Petition. Based on the Department’s
requests, the Petitioners filed additional
information on July 9, and 12, 2007. The
period of investigation (‘‘POI’’) is
October 1, 2006, through March 31,
2007. See 19 CFR 351.204(b).
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (‘‘the
Act’’), the Petitioners allege that imports
of LWS from the PRC are being, or are
likely to be, sold in the United States at
less than fair value, within the meaning
of section 731 of the Act, and that such
imports are materially retarding the
establishment of an industry in the
United States, or that such an industry
is materially injured or threatened with
material injury by reason of such
imports.
The Department finds that the
Petitioners filed this Petition on behalf
of the domestic industry because the
Petitioners are interested parties as
defined in section 771(9)(C), (E) and (F)
of the Act, and have demonstrated
sufficient industry support with respect
to the antidumping duty investigation
(see ‘‘Determination of Industry Support
for the Petitions’’ section below).
Scope of Investigation
The merchandise covered by this
investigation is laminated woven sacks.
See Attachment I to this notice for a
complete description of the
merchandise covered by this
investigation.
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Comments on Scope of Investigation
During our review of the Petition, we
discussed the scope with the Petitioners
to ensure that it is an accurate reflection
of the products for which the domestic
industry is Seeking relief. Moreover, as
discussed in the preamble to the
regulations (Antidumping Duties;
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Countervailing Duties; Final Rule, 62 FR
27296, 27323 (May 19, 1997)), we are
setting aside a period for interested
parties to raise issues regarding product
coverage. The Department encourages
all interested parties to submit such
comments by August 7, 2007.
Comments should be addressed to
Import Administration’s Central
Records Unit, Room 1870, U.S.
Department of Commerce, 14th Street
and Constitution Avenue, NW,
Washington, DC 20230, attention
Catherine Bertrand, room 4003. The
period of scope consultations is
intended to provide the Department
with ample opportunity to consider all
comments and to consult with parties
prior to the issuance of the preliminary
determination.
Comments on Product Characteristics
for Antidumping Duty Questionnaire
We are requesting comments from
interested parties regarding the
appropriate physical characteristics of
laminated woven sacks to be reported in
response to the Department’s
antidumping questionnaire. For
example, we are considering whether
certain physical characteristics such as
width, gusset, length, fabric thickness,
coating thickness, film thickness, and
total bag weight are relevant. This
information will be used to identify the
key physical characteristics of the
subject merchandise in order for
respondents to more accurately report
the relevant factors of production.
Interested parties may provide any
information or comments that they feel
are relevant to the development of an
accurate listing of physical
characteristics. Specifically, they may
provide comments as to which
characteristics are appropriate to use 1)
as general product characteristics and 2)
as the product reporting criteria. We
note that it is not always appropriate to
use all product characteristics as
product reporting criteria. In order to
consider the suggestions of interested
parties in developing and issuing the
antidumping duty questionnaires, we
must receive non–proprietary comments
at the above–referenced address by
August 8, 2007, and rebuttal comments
must be received within 10 calendar
days of the receipt of timely filed
comments.
Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
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petition account for: (i) at least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
the Department shall: (i) poll the
industry or rely on other information in
order to determine if there is support for
the petition, as required by
subparagraph (A), or (ii) determine
industry support using a statistically
valid sampling method.
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs the Department to look to
producers and workers who produce the
domestic like product. The International
Trade Commission (ITC), which is
responsible for determining whether
‘‘the domestic industry’’ has been
injured, must also determine what
constitutes a domestic like product in
order to define the industry. While both
the Department and the ITC must apply
the same statutory definition regarding
the domestic like product (section
771(10) of the Act), they do so for
different purposes and pursuant to a
separate and distinct authority. In
addition, the Department’s
determination is subject to limitations of
time and information. Although this
may result in different definitions of the
like product, such differences do not
render the decision of either agency
contrary to law. See USEC, Inc. v.
United States, 132 F. Supp. 2d 1, 8 (CIT
2001), citing Algoma Steel Corp. Ltd. v.
United States, 688 F. Supp. 639, 644
(1988), aff’d 865 F.2d 240 (Fed. Cir.
1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this subtitle.’’ Thus,
the reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation,’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, the Petitioners do not offer a
definition of domestic like product
distinct from the scope of the
investigation. Based on our analysis of
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the information submitted on the
record, we have determined that
laminated woven sacks constitute a
single domestic like product and we
have analyzed industry support in terms
of that domestic like product. For a
discussion of the domestic like product
analysis in this case, see the
Antidumping Investigation Initiation
Checklist: Laminated Woven Sacks from
the People’s Republic of China (PRC),
Industry Support at Attachment II
(Initiation Checklist), on file in the
Central Records Unit, Room B–099 of
the main Department of Commerce
building.
Our review of the data provided in the
Petition, supplemental submissions, and
other information readily available to
the Department indicates that the
Petitioners have established industry
support. First, the Petition established
support from domestic producers (or
workers) accounting for more than 50
percent of the total production of the
domestic like product and, as such, the
Department is not required to take
further action in order to evaluate
industry support (e.g., polling). See
Section 732(c)(4)(D) of the Act. Second,
the domestic producers have met the
statutory criteria for industry support
under 732(c)(4)(A)(i) because the
domestic producers (or workers) who
support the Petition account for at least
25 percent of the total production of the
domestic like product. Finally, the
domestic producers have met the
statutory criteria for industry support
under 732(c)(4)(A)(ii) because the
domestic producers (or workers) who
support the Petition account for more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
Petition. Accordingly, the Department
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 732(b)(1) of the
Act See Initiation Checklist at
Attachment II (Industry Support).
The Department finds that the
Petitioners filed the Petition on behalf of
the domestic industry because they are
interested parties as defined in sections
771(9)(C), (E), and (F) of the Act and
they have demonstrated sufficient
industry support with respect to the
antidumping investigation that they are
requesting the Department initiate. See
Initiation Checklist at Attachment II
(Industry Support).
Allegations and Evidence of Material
Retardation and of Material Injury and
Causation
Section 733(a)(1)(B) of the Act states
that the ITC ‘‘shall determine . . .
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whether there is a reasonable indication
that the establishment of an industry in
the United States is materially retarded
by reason of imports of the subject
merchandise.’’ The Petitioners allege
that imports of subject merchandise
from the PRC have materially retarded
the establishment of the domestic
industry producing LWS. The
Petitioners argue that U.S. producers of
LWS have not stabilized their
operations and, therefore, a U.S.
industry producing LWS has not been
established. To support their argument,
the Petitioners examine the five factors
considered by the ITC to determine if an
industry is established, as set forth in
the ITC’s Antidumping and
Countervailing Duty Handbook. See
Antidumping and Countervailing Duty
Handbook (12th Ed.), USITC Pub. 3916
(April 2007). Furthermore, the
Petitioners contend that their efforts to
establish a domestic LWS industry have
been thwarted by dumped imports of
LWS from the PRC.
The Petitioners also allege that the
U.S. industry producing the domestic
like product is being materially injured,
or is threatened with material injury, by
reason of the imports of the subject
merchandise sold at less than normal
value (‘‘NV’’). The Petitioners contend
that the industry’s injured condition is
illustrated by lost sales, lost revenue,
underselling and price depression or
suppression, poor financial
performance, capacity and depressed
capacity utilization rate, and increased
import penetration.
We have assessed the allegations and
supporting evidence regarding material
retardation and material injury and
causation, and we have determined that
these allegations are properly supported
by adequate evidence and meet the
statutory requirements for initiation. See
Initiation Checklist at Attachment III
(Injury).
Allegation of Sales at Less Than Fair
Value
The following is a description of the
allegation of sales at less than fair value
upon which the Department based its
decision to initiate this investigation on
imports of LWS from the PRC. The
sources of data for the deductions and
adjustments relating to the U.S. price
and the factors of production are also
discussed in the checklist. See Initiation
Checklist. Should the need arise to use
any of this information as facts available
under section 776 of the Act in our
preliminary or final determinations, we
will reexamine the information and
revise the margin calculations, if
appropriate.
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Export Price
The Petitioners relied on two U.S.
offers for LWS manufactured in the PRC
and offered for sale in the United States.
The two price offers were for a certain
type of laminated woven sack falling
within the scope of the Petition, for sale
to the U.S. customer within the POI.
The Petitioners deducted from the
prices the costs associated with
exporting and delivering the product,
foreign inland freight costs, and foreign
brokerage and handling. See Initiation
Checklist. The Petitioners adjusted the
U.S. price for foreign inland freight
charges based on the methodology used
by the Department in Hand Trucks and
Certain Parts Thereof From the People’s
Republic of China: Final Results of
Administrative Review and Final
Results of New Shipper Review, 72 FR
27287 (May 15, 2007) (‘‘Hand Trucks’’)
See Petition at page 29. The Petitioners
adjusted the U.S. price for foreign
brokerage and handling based on Indian
surrogate value data applied in Hand
Trucks. See Petition at page 29.
Normal Value
The Petitioners stated that the PRC
remains a non–market economy
(‘‘NME’’) country and no determination
to the contrary has yet been made by the
Department. Recently, the Department
examined the PRC’s market status and
determined that NME status should
continue for the PRC. See Memorandum
from the Office of Policy to David M.
Spooner, Assistant Secretary for Import
Administration, Regarding The People’s
Republic of China Status as a Non–
Market Economy, dated May 15, 2006.
(This document is available online at
https://ia.ita.doc.gov/download /prc–
nme-status/prc–nme-status–memo.pdf.)
In addition, in two recent investigations,
the Department also determined that the
PRC is an NME country. See Final
Determination of Sales at Less Than
Fair Value: Certain Activated Carbon
from the People’s Republic of China, 72
FR 9508 (March 2, 2007), and Final
Determination of Sales at Less Than
Fair Value and Partial Affirmative
Determination of Critical
Circumstances: Certain Polyester Staple
Fiber from the People’s Republic of
China, 72 FR 19690 (April 19, 2007). In
accordance with section 771(18)(C)(i) of
the Act, the presumption of NME status
remains in effect until revoked by the
Department. The presumption of NME
status for the PRC has not been revoked
by the Department and remains in effect
for purposes of the initiation of this
investigation. Accordingly, the NV of
the product is appropriately based on
factors of production valued in a
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surrogate market–economy country in
accordance with section 773(c) of the
Act. In the course of this investigation,
all parties will have the opportunity to
provide relevant information related to
the issues of the PRC’s NME status and
the granting of separate rates to
individual exporters.
The Petitioners selected India as the
surrogate country arguing that, pursuant
to section 773(c)(4) of the Act, India is
an appropriate surrogate because it is a
market–economy country that is at a
level of economic development
comparable to that of the PRC and is a
significant producer and exporter of
LWS. See Petition at page 23. Based on
the information provided by the
Petitioners, we believe that the use of
India as a surrogate country is
appropriate for purposes of initiation.
After the initiation of the investigation,
we will solicit comments regarding
surrogate country selection.
The Petitioners provided dumping
margin calculations using the
Department’s NME methodology as
required by 19 CFR 351.202(b)(7)(i)(C)
and 19 CFR 351.408. However, because
information regarding the factors of
production consumed by Chinese
producers is not available to the
Petitioners, the Petitioners calculated
NVs for each U.S. price discussed above
based on consumption rates for
producing LWS as experienced by U.S.
producers. See Petition at page 22. The
Petitioners use a U.S. producer’s
consumption figures, as actual factors of
production for a Chinese company were
not reasonably available. The Petitioners
provide affidavits to support their NV
calculation. See July 9, 2007, response
at Exhibits B and C. Accordingly, we
found the Petitioners’ use of the
production data to be reasonable.
For the NV calculations, the
Petitioners were unable to obtain
surrogate value figures
contemporaneous with the POI for all
material inputs, and accordingly relied
upon the most recent information
available. The sources of these data
include the World Trade Atlas
compilation of Indian import statistics,
which provided data through November
2006 at the time the Petition was filed.
See Petition at page 24. Where an input
price reflected a period preceding the
POI, the Petitioners adjusted it for
inflation using the wholesale price
index for India reported by the Reserve
Bank of India. See id. To value the cost
of electricity, the Petitioners used the
identical methodology recently used by
the Department in Hand Trucks. See
Petition at page 15 and Exhibit 15. The
Petitioners excluded those values from
countries previously determined by the
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Department to be NME countries;
imports into India from Indonesia, the
Republic of Korea and Thailand,
because the Department has previously
excluded prices from these countries
because they maintain broadly
available, non–industry-specific export
subsidies, as well as imports from
unspecified countries. See Hand Trucks
accompanying Issues and Decision
Memorandum at Comment 23. The
surrogate values used by the Petitioners
for the material and packing inputs
consist of information reasonably
available to the Petitioners and are,
therefore, acceptable for purposes of
initiation.
With respect to the surrogate financial
expenses, the Petitioners relied on the
factory overhead, SG&A expenses and
profitability of two Indian LWS
producers, KG Petrochem, Ltd, and
Dhoot Compack, Ltd., taken from the
companies’ most recently available
annual reports that are closest to the
POI. See Petition at page 28 and Exhibit
18. We find that the Petitioners’ use of
these two companies’ information as the
source for the surrogate financial
expenses is appropriate for purposes of
initiation.
Fair Value Comparisons
Based on the data provided by the
Petitioners, there is reason to believe
that imports of LWS from the PRC are
being, or are likely to be, sold in the
United States at less than fair value.
Based on comparisons of export price to
NV, calculated in accordance with
section 773(c) of the Act, the estimated
dumping margins for laminated woven
sacks are 74.70 percent and 91.73
percent.
Initiation of Antidumping
Investigations
Based upon the examination of the
Petition on LWS from the PRC, the
Department finds that the Petition meets
the requirements of section 732 of the
Act. Therefore, we are initiating an
antidumping duty investigation to
determine whether imports of laminated
woven sacks from the PRC are being, or
are likely to be, sold in the United States
at less than fair value. In accordance
with section 733(b)(1)(A) of the Act,
unless postponed, we will make our
preliminary determination no later than
140 days after the date of this initiation.
Separate Rates and Quantity and Value
Questionnaire
The Department recently modified the
process by which exporters and
producers may obtain separate–rate
status in NME investigations. See Policy
Bulletin 05.1: Separate–Rates Practice
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and Application of Combination Rates
in Antidumping Investigations
involving Non–Market Economy
Countries (April 5, 2005) (Separate
Rates and Combination Rates Bulletin),
available on the Department’s Web site
at https://ia.ita.doc.gov/policy/bull05–
1.pdf. The process requires the
submission of a separate–rate status
application. Based on our experience in
processing the separate–rate
applications in the following
antidumping duty investigations, we
have modified the application for this
investigation to make it more
administrable and easier for applicants
to complete. See Initiation of
Antidumping Duty Investigations:
Certain Lined Paper Products From
India, Indonesia, and the People’s
Republic of China, 70 FR 58374, 58379
(October 6, 2005); Initiation of
Antidumping Duty Investigation:
Certain Artist Canvas From the People’s
Republic of China, 70 FR 21996, 21999
(April 28, 2005); and Initiation of
Antidumping Duty Investigations:
Diamond Sawblades and Parts Thereof
from the People’s Republic of China and
the Republic of Korea, 70 FR 35625,
35629 (June 21, 2005). The specific
requirements for submitting the
separate–rate application in this
investigation are outlined in detail in
the application itself, which will be
available on the Department’s Web site
at https://ia.ita.doc.gov/ia–highlightsand–news.html on the date of
publication of this initiation notice in
the Federal Register. The separate–rate
application is due no later than
September 17, 2007.
NME Respondent Selection and
Quantity and Value Questionnaire
For NME investigations, it is the
Department’s practice to request
quantity and value information from all
known exporters identified in the PRC
Petition. Although many NME exporters
respond to the quantity and value
information request, at times some
exporters may not have received the
quantity and value questionnaire or may
not have received it in time to respond
by the specified deadline. Therefore, the
Department typically requests the
assistance of the NME government in
transmitting the Department’s quantity
and value questionnaire to all
companies that manufacture and export
subject merchandise to the United
States, as well as to manufacturers that
produce the subject merchandise for
companies that were engaged in
exporting subject merchandise to the
United States during the POI. The
quantity and value data received from
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Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices
NME exporters is used as the basis to
select the mandatory respondents.
The Department requires that the
respondents submit a response to both
the quantity and value questionnaire
and the separate–rate application by the
respective deadlines in order to receive
consideration for separate–rate status.
Attachment II of this notice contains the
quantity and value questionnaire that
must be submitted by all NME exporters
no later than August 8, 2007. In
addition, the Department will post the
quantity and value questionnaire along
with the filing instructions on the IA
Web site: https://ia.ita.doc.gov/ia–
highlights-and–news.html. The
Department will send the quantity and
value questionnaire to those companies
identified in Exhibit 4 of Volume I of
the Petition and those identified by the
NME government.
Use of Combination Rates in an NME
Investigation
The Department will calculate
combination rates for certain
respondents that are eligible for a
separate rate in the PRC investigation.
The Separate Rates and Combination
Rates Bulletin, states:
{w}hile continuing the practice of
assigning separate rates only to
exporters, all separate rates that the
Department will now assign in its
NME investigations will be specific
to those producers that supplied the
exporter during the period of
investigation. Note, however, that
one rate is calculated for the
exporter and all of the producers
which supplied subject
merchandise to it during the period
of investigation. This practice
applies both to mandatory
respondents receiving an
individually calculated separate
rate as well as the pool of non–
investigated firms receiving the
weighted–average of the
individually calculated rates. This
practice is referred to as the
application of ‘‘combination rates’’
because such rates apply to specific
combinations of exporters and one
or more producers. The cash–
deposit rate assigned to an exporter
will apply only to merchandise
both exported by the firm in
question and produced by a firm
that supplied the exporter during
the period of investigation.
See Separate Rates and Combination
Rates Bulletin, at 6.
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act, copies of the
public version of the Petition have been
provided to the representatives of the
Government of the PRC. We will
attempt to provide a copy of the public
version of the Petition to the foreign
producers/exporters, consistent with 19
CFR 351.203(c)(2).
International Trade Commission
Notification
We have notified the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determination by the
International Trade Commission
The ITC will preliminarily determine,
no later than August 13, 2007, whether
there is a reasonable indication that
imports of laminated woven sacks from
the PRC are materially retarding the
establishment of a U.S. industry, or
whether such an industry is materially
injured or threatened with material
injury by reason of such imports. A
negative ITC determination with respect
to the investigation will result in the
investigation being terminated;
otherwise, this investigation will
proceed according to statutory and
regulatory time limits.
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: July 18, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretaryfor Import
Administration.
Attachment I
Scope of the Antidumping Duty
Investigation
Laminated Woven Sacks from the
People’s Republic of China
The merchandise covered by this
investigation is laminated woven sacks.
Laminated woven sacks are bags or
sacks consisting of one or more plies of
fabric consisting of woven
polypropylene strip and/or woven
polyethylene strip; with or without an
extrusion coating of polypropylene and/
or polyethylene on one or both sides of
rwilkins on PROD1PC63 with NOTICES
Market
Total Quantity in Pieces
40837
the fabric; laminated by any method
either to an exterior ply of plastic film
such as biaxially–oriented
polypropylene (‘‘BOPP’’) or to an
exterior ply of paper that is suitable for
high quality print graphics;1 printed
with three colors or more in register;
with or without lining; whether or not
closed on one end; whether or not in
roll form; with or without handles; with
or without special closing features; not
exceeding one kilogram in weight.
Laminated woven bags are typically
used for retail packaging of consumer
goods such as pet foods and bird Seed.
Effective July 1, 2007, laminated woven
sacks are classifiable under Harmonized
Tariff Schedule of the United States
(‘‘HTSUS’’) subheadings 6305.33.0050
and 6305.33.0080. Laminated woven
sacks were previously classifiable under
HTSUS subheading 6305.33.0020. If
entered with plastic coating on both
sides of the fabric consisting of woven
polypropylene strip and/or woven
polypropylene strip, laminated woven
sacks may be classifiable under HTSUS
subheadings 3923.21.0080,
3923.21.0095, and 3923.29.0000. If
entered not closed on one end or in roll
form, laminated woven sacks may be
classifiable under HTSUS subheading
5903.90.2500 and 3921.19.0000.
Although HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
scope of this investigation is dispositive.
Attachment II
Where it is not practicable to examine
all known producers/exporters of
subject merchandise, section 777A(c)(2)
of the Tariff Act of 1930 (as amended)
permits us to investigate 1) a sample of
exporters, producers, or types of
products that is statistically valid based
on the information available at the time
of selection, or 2) exporters and
producers accounting for the largest
volume and value of the subject
merchandise that can reasonably be
examined.
In the chart below, please provide the
total quantity and total value of all your
sales of merchandise covered by the
scope of this investigation (See scope
section of this notice), produced in the
PRC, and exported/shipped to the
United States during the period October
1, 2006, through March 31, 2007.
Terms of Sale
Total Value
United States.
.
1. Export Price Sales.
1 ‘‘Paper suitable for high quality print graphics,’’
as used herein, means paper having an ISO
VerDate Aug<31>2005
19:31 Jul 24, 2007
Jkt 211001
brightness of 82 or higher and a Sheffield
Smoothness of 250 or less. Coated free sheet is an
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
example of a paper suitable for high quality print
graphics.
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40838
Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices
Market
Total Quantity in Pieces
Terms of Sale
Total Value
2..
a. Exporter Name.
b. Address.
c. Contact.
d. Phone No..
e. Fax No..
3. Constructed Export Price Sales.
4. Further Manufactured.
Total Sales.
by your company directly to the
United States;
• Please include any sales exported
by your company to a third–country
market economy reseller where you
had knowledge that the
merchandise was destined to be
resold to the United States.
• If you are a producer of subject
merchandise, please include any
sales manufactured by your
company that were subsequently
exported by an affiliated exporter to
the United States.
• Please do not include any sales of
merchandise manufactured in Hong
Kong in your figures.
Total Quantity:
• Please report quantity on a piece
basis. If any conversions were used,
please provide the conversion
formula and source.
Terms of Sales:
• Please report all sales on the same
terms (e.g., free on board).
Total Value:
• All sales values should be
reported in U.S. dollars. Please
indicate any exchange rates used
and their respective dates and
sources.
Export Price Sales:
• Generally, a U.S. sale is classified
as an export price sale when the
first sale to an unaffiliated person
occurs before importation into the
United States.
• Please include any sales exported
by your company directly to the
United States;
• Please include any sales exported
by your company to a third–country
market economy reseller where you
had knowledge that the
merchandise was destined to be
resold to the United States.
• If you are a producer of subject
merchandise, please include any
sales manufactured by your
company that were subsequently
exported by an affiliated exporter to
the United States.
• Please do not include any sales of
merchandise manufactured in Hong
Kong in your figures.
rwilkins on PROD1PC63 with NOTICES
Constructed Export Price Sales:
• Generally, a U.S. sale is classified
as a constructed export price sale
when the first sale to an unaffiliated
person occurs after importation.
However, if the first sale to the
unaffiliated person is made by a
person in the United States
affiliated with the foreign exporter,
constructed export price applies
even if the sale occurs prior to
importation.
• Please include any sales exported
VerDate Aug<31>2005
19:31 Jul 24, 2007
Jkt 211001
Further Manufactured:
• Further manufacture or assembly
costs include amounts incurred for
direct materials, labor and
overhead, plus amounts for general
and administrative expense, interest
expense, and additional packing
expense incurred in the country of
further manufacture, as well as all
costs involved in moving the
product from the U.S. port of entry
to the further manufacturer.
[FR Doc. E7–14370 Filed 7–24–07; 8:45 am]
Billing Code: 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–806]
Silicon Metal from the People’s
Republic of China: Notice of Extension
of Time Limit for Final Results of 2005/
2006 New Shipper Reviews
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: July 25, 2007.
FOR FURTHER INFORMATION CONTACT: Scot
Fullerton or Michael Quigley, AD/CVD
Operations, Office 9, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
AGENCY:
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
telephone: (202) 482–1386 or (202) 482–
4047, respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 21, 2007, the Department of
Commerce (the Department) published
in the Federal Register the preliminary
results of these new shipper reviews.
See Silicon Metal from the People’s
Republic of China: Preliminary Results
of the 2005/2006 New Shipper Reviews,
72 FR 28467 (May 21, 2007). The final
results of these reviews are currently
due byAugust 9, 2007.
Extension of Time Limits for Final
Results
Section 751(a)(2)(B)(iv) of the Tariff
Act of 1930, as amended (the Act), and
19 CFR 351.214(i)(1) require the
Department to issue the preliminary
results of a new shipper review within
180 days after the date on which the
new shipper review was initiated and
final results of a review within 90 days
after the date on which the preliminary
results were issued. The Department
may, however, extend the deadline for
completion of the final results of a new
shipper review to 150 days if it
determines that the case is
extraordinarily complicated. See section
751(a)(2)(B)(iv) of the Act, and 19 CFR
351.214(i)(2).
The Department has determined that
these new shipper reviews are
extremely complicated because of the
numerous and complex issues raised by
interested parties in their case briefs
concerning surrogate country and
surrogate value selection. Therefore, the
Department finds that it is not
practicable to complete these new
shipper reviews within the current time
limit. Accordingly, the Department is
extending the time limit for the
completion of the final results by 60
days until October 8, 2007, in
accordance with section 751(a)(2)(B)(iv)
of the Act and 19 CFR 351.214(i)(2).
However, because October 8, 2007, is a
federal holiday, the final results will be
due on October 9, 2007, the next
business day.
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Agencies
[Federal Register Volume 72, Number 142 (Wednesday, July 25, 2007)]
[Notices]
[Pages 40833-40838]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14370]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
A-570-916
Laminated Woven Sacks from the People's Republic of China:
Initiation of Antidumping Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: July 25, 2007.
FOR FURTHER INFORMATION CONTACT: Catherine Bertrand, AD/CVD Operations,
Office 9, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202) 482-3207.
[[Page 40834]]
SUPPLEMENTARY INFORMATION:
INITIATION OF INVESTIGATION:
The Petition
On June 28, 2007, the Department of Commerce (``Department'')
received a petition concerning imports of laminated woven sacks
(``LWS'') from the People's Republic of China (``PRC'') filed in proper
form by the Laminated Woven Sacks Committee and its individual members,
Bancroft Bags, Inc., Coating Excellence International, LLC, Hood
Packaging Corporation, Mid-America Packaging, LLC, and Polytex Fibers
Corporation (collectively, (``Petitioners''). See Petition on Laminated
Woven Sacks from the People's Republic of China filed on June 28, 2007
(``Petition''). On July 2, and 11, 2007, the Department issued requests
for additional information and clarification of certain areas of the
Petition. Based on the Department's requests, the Petitioners filed
additional information on July 9, and 12, 2007. The period of
investigation (``POI'') is October 1, 2006, through March 31, 2007. See
19 CFR 351.204(b).
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (``the Act''), the Petitioners allege that imports of LWS from
the PRC are being, or are likely to be, sold in the United States at
less than fair value, within the meaning of section 731 of the Act, and
that such imports are materially retarding the establishment of an
industry in the United States, or that such an industry is materially
injured or threatened with material injury by reason of such imports.
The Department finds that the Petitioners filed this Petition on
behalf of the domestic industry because the Petitioners are interested
parties as defined in section 771(9)(C), (E) and (F) of the Act, and
have demonstrated sufficient industry support with respect to the
antidumping duty investigation (see ``Determination of Industry Support
for the Petitions'' section below).
Scope of Investigation
The merchandise covered by this investigation is laminated woven
sacks. See Attachment I to this notice for a complete description of
the merchandise covered by this investigation.
Comments on Scope of Investigation
During our review of the Petition, we discussed the scope with the
Petitioners to ensure that it is an accurate reflection of the products
for which the domestic industry is Seeking relief. Moreover, as
discussed in the preamble to the regulations (Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)),
we are setting aside a period for interested parties to raise issues
regarding product coverage. The Department encourages all interested
parties to submit such comments by August 7, 2007. Comments should be
addressed to Import Administration's Central Records Unit, Room 1870,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230, attention Catherine Bertrand, room 4003. The
period of scope consultations is intended to provide the Department
with ample opportunity to consider all comments and to consult with
parties prior to the issuance of the preliminary determination.
Comments on Product Characteristics for Antidumping Duty Questionnaire
We are requesting comments from interested parties regarding the
appropriate physical characteristics of laminated woven sacks to be
reported in response to the Department's antidumping questionnaire. For
example, we are considering whether certain physical characteristics
such as width, gusset, length, fabric thickness, coating thickness,
film thickness, and total bag weight are relevant. This information
will be used to identify the key physical characteristics of the
subject merchandise in order for respondents to more accurately report
the relevant factors of production.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate listing of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use 1) as general product
characteristics and 2) as the product reporting criteria. We note that
it is not always appropriate to use all product characteristics as
product reporting criteria. In order to consider the suggestions of
interested parties in developing and issuing the antidumping duty
questionnaires, we must receive non-proprietary comments at the above-
referenced address by August 8, 2007, and rebuttal comments must be
received within 10 calendar days of the receipt of timely filed
comments.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A), or (ii) determine industry support using a
statistically valid sampling method.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product (section 771(10) of the Act), they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law. See USEC, Inc. v. United States, 132 F.
Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United
States, 688 F. Supp. 639, 644 (1988), aff'd 865 F.2d 240 (Fed. Cir.
1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this subtitle.'' Thus, the reference point from which the
domestic like product analysis begins is ``the article subject to an
investigation,'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the Petitioners do not
offer a definition of domestic like product distinct from the scope of
the investigation. Based on our analysis of
[[Page 40835]]
the information submitted on the record, we have determined that
laminated woven sacks constitute a single domestic like product and we
have analyzed industry support in terms of that domestic like product.
For a discussion of the domestic like product analysis in this case,
see the Antidumping Investigation Initiation Checklist: Laminated Woven
Sacks from the People's Republic of China (PRC), Industry Support at
Attachment II (Initiation Checklist), on file in the Central Records
Unit, Room B-099 of the main Department of Commerce building.
Our review of the data provided in the Petition, supplemental
submissions, and other information readily available to the Department
indicates that the Petitioners have established industry support.
First, the Petition established support from domestic producers (or
workers) accounting for more than 50 percent of the total production of
the domestic like product and, as such, the Department is not required
to take further action in order to evaluate industry support (e.g.,
polling). See Section 732(c)(4)(D) of the Act. Second, the domestic
producers have met the statutory criteria for industry support under
732(c)(4)(A)(i) because the domestic producers (or workers) who support
the Petition account for at least 25 percent of the total production of
the domestic like product. Finally, the domestic producers have met the
statutory criteria for industry support under 732(c)(4)(A)(ii) because
the domestic producers (or workers) who support the Petition account
for more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the Petition. Accordingly, the Department determines
that the Petition was filed on behalf of the domestic industry within
the meaning of section 732(b)(1) of the Act See Initiation Checklist at
Attachment II (Industry Support).
The Department finds that the Petitioners filed the Petition on
behalf of the domestic industry because they are interested parties as
defined in sections 771(9)(C), (E), and (F) of the Act and they have
demonstrated sufficient industry support with respect to the
antidumping investigation that they are requesting the Department
initiate. See Initiation Checklist at Attachment II (Industry Support).
Allegations and Evidence of Material Retardation and of Material Injury
and Causation
Section 733(a)(1)(B) of the Act states that the ITC ``shall
determine . . . whether there is a reasonable indication that the
establishment of an industry in the United States is materially
retarded by reason of imports of the subject merchandise.'' The
Petitioners allege that imports of subject merchandise from the PRC
have materially retarded the establishment of the domestic industry
producing LWS. The Petitioners argue that U.S. producers of LWS have
not stabilized their operations and, therefore, a U.S. industry
producing LWS has not been established. To support their argument, the
Petitioners examine the five factors considered by the ITC to determine
if an industry is established, as set forth in the ITC's Antidumping
and Countervailing Duty Handbook. See Antidumping and Countervailing
Duty Handbook (12th Ed.), USITC Pub. 3916 (April 2007). Furthermore,
the Petitioners contend that their efforts to establish a domestic LWS
industry have been thwarted by dumped imports of LWS from the PRC.
The Petitioners also allege that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at less than normal value (``NV''). The Petitioners
contend that the industry's injured condition is illustrated by lost
sales, lost revenue, underselling and price depression or suppression,
poor financial performance, capacity and depressed capacity utilization
rate, and increased import penetration.
We have assessed the allegations and supporting evidence regarding
material retardation and material injury and causation, and we have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation. See
Initiation Checklist at Attachment III (Injury).
Allegation of Sales at Less Than Fair Value
The following is a description of the allegation of sales at less
than fair value upon which the Department based its decision to
initiate this investigation on imports of LWS from the PRC. The sources
of data for the deductions and adjustments relating to the U.S. price
and the factors of production are also discussed in the checklist. See
Initiation Checklist. Should the need arise to use any of this
information as facts available under section 776 of the Act in our
preliminary or final determinations, we will reexamine the information
and revise the margin calculations, if appropriate.
Export Price
The Petitioners relied on two U.S. offers for LWS manufactured in
the PRC and offered for sale in the United States. The two price offers
were for a certain type of laminated woven sack falling within the
scope of the Petition, for sale to the U.S. customer within the POI.
The Petitioners deducted from the prices the costs associated with
exporting and delivering the product, foreign inland freight costs, and
foreign brokerage and handling. See Initiation Checklist. The
Petitioners adjusted the U.S. price for foreign inland freight charges
based on the methodology used by the Department in Hand Trucks and
Certain Parts Thereof From the People's Republic of China: Final
Results of Administrative Review and Final Results of New Shipper
Review, 72 FR 27287 (May 15, 2007) (``Hand Trucks'') See Petition at
page 29. The Petitioners adjusted the U.S. price for foreign brokerage
and handling based on Indian surrogate value data applied in Hand
Trucks. See Petition at page 29.
Normal Value
The Petitioners stated that the PRC remains a non-market economy
(``NME'') country and no determination to the contrary has yet been
made by the Department. Recently, the Department examined the PRC's
market status and determined that NME status should continue for the
PRC. See Memorandum from the Office of Policy to David M. Spooner,
Assistant Secretary for Import Administration, Regarding The People's
Republic of China Status as a Non-Market Economy, dated May 15, 2006.
(This document is available online at https://ia.ita.doc.gov/download/
prc-nme-status/prc-nme-status-memo.pdf.) In addition, in two recent
investigations, the Department also determined that the PRC is an NME
country. See Final Determination of Sales at Less Than Fair Value:
Certain Activated Carbon from the People's Republic of China, 72 FR
9508 (March 2, 2007), and Final Determination of Sales at Less Than
Fair Value and Partial Affirmative Determination of Critical
Circumstances: Certain Polyester Staple Fiber from the People's
Republic of China, 72 FR 19690 (April 19, 2007). In accordance with
section 771(18)(C)(i) of the Act, the presumption of NME status remains
in effect until revoked by the Department. The presumption of NME
status for the PRC has not been revoked by the Department and remains
in effect for purposes of the initiation of this investigation.
Accordingly, the NV of the product is appropriately based on factors of
production valued in a
[[Page 40836]]
surrogate market-economy country in accordance with section 773(c) of
the Act. In the course of this investigation, all parties will have the
opportunity to provide relevant information related to the issues of
the PRC's NME status and the granting of separate rates to individual
exporters.
The Petitioners selected India as the surrogate country arguing
that, pursuant to section 773(c)(4) of the Act, India is an appropriate
surrogate because it is a market-economy country that is at a level of
economic development comparable to that of the PRC and is a significant
producer and exporter of LWS. See Petition at page 23. Based on the
information provided by the Petitioners, we believe that the use of
India as a surrogate country is appropriate for purposes of initiation.
After the initiation of the investigation, we will solicit comments
regarding surrogate country selection.
The Petitioners provided dumping margin calculations using the
Department's NME methodology as required by 19 CFR 351.202(b)(7)(i)(C)
and 19 CFR 351.408. However, because information regarding the factors
of production consumed by Chinese producers is not available to the
Petitioners, the Petitioners calculated NVs for each U.S. price
discussed above based on consumption rates for producing LWS as
experienced by U.S. producers. See Petition at page 22. The Petitioners
use a U.S. producer's consumption figures, as actual factors of
production for a Chinese company were not reasonably available. The
Petitioners provide affidavits to support their NV calculation. See
July 9, 2007, response at Exhibits B and C. Accordingly, we found the
Petitioners' use of the production data to be reasonable.
For the NV calculations, the Petitioners were unable to obtain
surrogate value figures contemporaneous with the POI for all material
inputs, and accordingly relied upon the most recent information
available. The sources of these data include the World Trade Atlas
compilation of Indian import statistics, which provided data through
November 2006 at the time the Petition was filed. See Petition at page
24. Where an input price reflected a period preceding the POI, the
Petitioners adjusted it for inflation using the wholesale price index
for India reported by the Reserve Bank of India. See id. To value the
cost of electricity, the Petitioners used the identical methodology
recently used by the Department in Hand Trucks. See Petition at page 15
and Exhibit 15. The Petitioners excluded those values from countries
previously determined by the Department to be NME countries; imports
into India from Indonesia, the Republic of Korea and Thailand, because
the Department has previously excluded prices from these countries
because they maintain broadly available, non-industry-specific export
subsidies, as well as imports from unspecified countries. See Hand
Trucks accompanying Issues and Decision Memorandum at Comment 23. The
surrogate values used by the Petitioners for the material and packing
inputs consist of information reasonably available to the Petitioners
and are, therefore, acceptable for purposes of initiation.
With respect to the surrogate financial expenses, the Petitioners
relied on the factory overhead, SG&A expenses and profitability of two
Indian LWS producers, KG Petrochem, Ltd, and Dhoot Compack, Ltd., taken
from the companies' most recently available annual reports that are
closest to the POI. See Petition at page 28 and Exhibit 18. We find
that the Petitioners' use of these two companies' information as the
source for the surrogate financial expenses is appropriate for purposes
of initiation.
Fair Value Comparisons
Based on the data provided by the Petitioners, there is reason to
believe that imports of LWS from the PRC are being, or are likely to
be, sold in the United States at less than fair value. Based on
comparisons of export price to NV, calculated in accordance with
section 773(c) of the Act, the estimated dumping margins for laminated
woven sacks are 74.70 percent and 91.73 percent.
Initiation of Antidumping Investigations
Based upon the examination of the Petition on LWS from the PRC, the
Department finds that the Petition meets the requirements of section
732 of the Act. Therefore, we are initiating an antidumping duty
investigation to determine whether imports of laminated woven sacks
from the PRC are being, or are likely to be, sold in the United States
at less than fair value. In accordance with section 733(b)(1)(A) of the
Act, unless postponed, we will make our preliminary determination no
later than 140 days after the date of this initiation.
Separate Rates and Quantity and Value Questionnaire
The Department recently modified the process by which exporters and
producers may obtain separate-rate status in NME investigations. See
Policy Bulletin 05.1: Separate-Rates Practice and Application of
Combination Rates in Antidumping Investigations involving Non-Market
Economy Countries (April 5, 2005) (Separate Rates and Combination Rates
Bulletin), available on the Department's Web site at https://
ia.ita.doc.gov/policy/bull05-1.pdf. The process requires the submission
of a separate-rate status application. Based on our experience in
processing the separate-rate applications in the following antidumping
duty investigations, we have modified the application for this
investigation to make it more administrable and easier for applicants
to complete. See Initiation of Antidumping Duty Investigations: Certain
Lined Paper Products From India, Indonesia, and the People's Republic
of China, 70 FR 58374, 58379 (October 6, 2005); Initiation of
Antidumping Duty Investigation: Certain Artist Canvas From the People's
Republic of China, 70 FR 21996, 21999 (April 28, 2005); and Initiation
of Antidumping Duty Investigations: Diamond Sawblades and Parts Thereof
from the People's Republic of China and the Republic of Korea, 70 FR
35625, 35629 (June 21, 2005). The specific requirements for submitting
the separate-rate application in this investigation are outlined in
detail in the application itself, which will be available on the
Department's Web site at https://ia.ita.doc.gov/ia-highlights-and-
news.html on the date of publication of this initiation notice in the
Federal Register. The separate-rate application is due no later than
September 17, 2007.
NME Respondent Selection and Quantity and Value Questionnaire
For NME investigations, it is the Department's practice to request
quantity and value information from all known exporters identified in
the PRC Petition. Although many NME exporters respond to the quantity
and value information request, at times some exporters may not have
received the quantity and value questionnaire or may not have received
it in time to respond by the specified deadline. Therefore, the
Department typically requests the assistance of the NME government in
transmitting the Department's quantity and value questionnaire to all
companies that manufacture and export subject merchandise to the United
States, as well as to manufacturers that produce the subject
merchandise for companies that were engaged in exporting subject
merchandise to the United States during the POI. The quantity and value
data received from
[[Page 40837]]
NME exporters is used as the basis to select the mandatory respondents.
The Department requires that the respondents submit a response to
both the quantity and value questionnaire and the separate-rate
application by the respective deadlines in order to receive
consideration for separate-rate status. Attachment II of this notice
contains the quantity and value questionnaire that must be submitted by
all NME exporters no later than August 8, 2007. In addition, the
Department will post the quantity and value questionnaire along with
the filing instructions on the IA Web site: https://ia.ita.doc.gov/ia-
highlights-and-news.html. The Department will send the quantity and
value questionnaire to those companies identified in Exhibit 4 of
Volume I of the Petition and those identified by the NME government.
Use of Combination Rates in an NME Investigation
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in the PRC
investigation. The Separate Rates and Combination Rates Bulletin,
states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME investigations will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period of
investigation. This practice applies both to mandatory respondents
receiving an individually calculated separate rate as well as the pool
of non-investigated firms receiving the weighted-average of the
individually calculated rates. This practice is referred to as the
application of ``combination rates'' because such rates apply to
specific combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise
both exported by the firm in question and produced by a firm that
supplied the exporter during the period of investigation.
See Separate Rates and Combination Rates Bulletin, at 6.
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act, copies of the
public version of the Petition have been provided to the
representatives of the Government of the PRC. We will attempt to
provide a copy of the public version of the Petition to the foreign
producers/exporters, consistent with 19 CFR 351.203(c)(2).
International Trade Commission Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determination by the International Trade Commission
The ITC will preliminarily determine, no later than August 13,
2007, whether there is a reasonable indication that imports of
laminated woven sacks from the PRC are materially retarding the
establishment of a U.S. industry, or whether such an industry is
materially injured or threatened with material injury by reason of such
imports. A negative ITC determination with respect to the investigation
will result in the investigation being terminated; otherwise, this
investigation will proceed according to statutory and regulatory time
limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: July 18, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretaryfor Import Administration.
Attachment I
Scope of the Antidumping Duty Investigation
Laminated Woven Sacks from the People's Republic of China
The merchandise covered by this investigation is laminated woven sacks.
Laminated woven sacks are bags or sacks consisting of one or more plies
of fabric consisting of woven polypropylene strip and/or woven
polyethylene strip; with or without an extrusion coating of
polypropylene and/or polyethylene on one or both sides of the fabric;
laminated by any method either to an exterior ply of plastic film such
as biaxially-oriented polypropylene (``BOPP'') or to an exterior ply of
paper that is suitable for high quality print graphics;\1\ printed with
three colors or more in register; with or without lining; whether or
not closed on one end; whether or not in roll form; with or without
handles; with or without special closing features; not exceeding one
kilogram in weight. Laminated woven bags are typically used for retail
packaging of consumer goods such as pet foods and bird Seed.
---------------------------------------------------------------------------
\1\ ``Paper suitable for high quality print graphics,'' as used
herein, means paper having an ISO brightness of 82 or higher and a
Sheffield Smoothness of 250 or less. Coated free sheet is an example
of a paper suitable for high quality print graphics.
---------------------------------------------------------------------------
Effective July 1, 2007, laminated woven sacks are classifiable under
Harmonized Tariff Schedule of the United States (``HTSUS'') subheadings
6305.33.0050 and 6305.33.0080. Laminated woven sacks were previously
classifiable under HTSUS subheading 6305.33.0020. If entered with
plastic coating on both sides of the fabric consisting of woven
polypropylene strip and/or woven polypropylene strip, laminated woven
sacks may be classifiable under HTSUS subheadings 3923.21.0080,
3923.21.0095, and 3923.29.0000. If entered not closed on one end or in
roll form, laminated woven sacks may be classifiable under HTSUS
subheading 5903.90.2500 and 3921.19.0000. Although HTSUS subheadings
are provided for convenience and customs purposes, the written
description of the scope of this investigation is dispositive.
Attachment II
Where it is not practicable to examine all known producers/exporters of
subject merchandise, section 777A(c)(2) of the Tariff Act of 1930 (as
amended) permits us to investigate 1) a sample of exporters, producers,
or types of products that is statistically valid based on the
information available at the time of selection, or 2) exporters and
producers accounting for the largest volume and value of the subject
merchandise that can reasonably be examined.
In the chart below, please provide the total quantity and total value
of all your sales of merchandise covered by the scope of this
investigation (See scope section of this notice), produced in the PRC,
and exported/shipped to the United States during the period October 1,
2006, through March 31, 2007.
----------------------------------------------------------------------------------------------------------------
Total Quantity in
Market Pieces Terms of Sale Total Value
----------------------------------------------------------------------------------------------------------------
United States........................
1. Export Price Sales................
[[Page 40838]]
2....................................
a. Exporter Name.............
b. Address...................
c. Contact...................
d. Phone No..................
e. Fax No....................
3. Constructed Export Price Sales....
4. Further Manufactured..............
Total Sales..........................
----------------------------------------------------------------------------------------------------------------
Total Quantity:
Please report quantity on a piece basis. If any
conversions were used, please provide the conversion formula and
source.
Terms of Sales:
Please report all sales on the same terms (e.g., free on
board).
Total Value:
All sales values should be reported in U.S. dollars.
Please indicate any exchange rates used and their respective dates and
sources.
Export Price Sales:
Generally, a U.S. sale is classified as an export price
sale when the first sale to an unaffiliated person occurs before
importation into the United States.
Please include any sales exported by your company
directly to the United States;
Please include any sales exported by your company to a
third-country market economy reseller where you had knowledge that the
merchandise was destined to be resold to the United States.
If you are a producer of subject merchandise, please
include any sales manufactured by your company that were subsequently
exported by an affiliated exporter to the United States.
Please do not include any sales of merchandise
manufactured in Hong Kong in your figures.
Constructed Export Price Sales:
Generally, a U.S. sale is classified as a constructed
export price sale when the first sale to an unaffiliated person occurs
after importation. However, if the first sale to the unaffiliated
person is made by a person in the United States affiliated with the
foreign exporter, constructed export price applies even if the sale
occurs prior to importation.
Please include any sales exported by your company
directly to the United States;
Please include any sales exported by your company to a
third-country market economy reseller where you had knowledge that the
merchandise was destined to be resold to the United States.
If you are a producer of subject merchandise, please
include any sales manufactured by your company that were subsequently
exported by an affiliated exporter to the United States.
Please do not include any sales of merchandise
manufactured in Hong Kong in your figures.
Further Manufactured:
Further manufacture or assembly costs include amounts
incurred for direct materials, labor and overhead, plus amounts for
general and administrative expense, interest expense, and additional
packing expense incurred in the country of further manufacture, as well
as all costs involved in moving the product from the U.S. port of entry
to the further manufacturer.
[FR Doc. E7-14370 Filed 7-24-07; 8:45 am]
Billing Code: 3510-DS-S