Laminated Woven Sacks from the People's Republic of China: Final Determination of Sales at Less Than Fair Value and Partial Affirmative Determination of Critical Circumstances, 35646-35649 [E8-14266]

Download as PDF 35646 Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices DEPARTMENT OF COMMERCE International Trade Administration [A–570–916] Laminated Woven Sacks from the People’s Republic of China: Final Determination of Sales at Less Than Fair Value and Partial Affirmative Determination of Critical Circumstances Import Administration, International Trade Administration, Department of Commerce. EFFECTIVE DATE: June 24, 2008. SUMMARY: On January 31, 2008, the Department of Commerce (the ‘‘Department’’) published its preliminary determination of sales at less than fair value (‘‘LTFV’’) in the antidumping investigation of laminated woven sacks (‘‘LWS’’) from the People’s Republic of China (‘‘PRC’’). The period of investigation (‘‘POI’’) is October 1, 2006, to March 31, 2007. We invited interested parties to comment on our preliminary determination of sales at LTFV. Based on our analysis of the comments we received, we have made changes to our calculations for the mandatory respondents. We determine that LWS from the PRC are being, or are likely to be, sold in the United States at LTFV as provided in section 735 of the Tariff Act of 1930, as amended (‘‘the Act’’). The estimated margins of sales at LTFV are shown in the ‘‘Final Determination Margins’’ section of this notice. FOR FURTHER INFORMATION CONTACT: Javier Barrientos, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482–2243. SUPPLEMENTARY INFORMATION: ebenthall on PRODPC60 with NOTICES AGENCY: respectively. We received Aifudi’s’s response on February 29, 2008. On February 15, 2008, SSJ submitted a letter stating that it was not responding to the questionnaire. Between March 31 and April 11, 2008, the Department conducted verifications of Aifudi and its constructed export price (CEP) entities. See the ‘‘Verification’’ section below for additional information. We invited parties to comment on the Preliminary Determination. On May 14, 2008, Petitioners and Aifudi filed case briefs. On May 19, 2008, Petitioners3 and Aifudi submitted rebuttal briefs. Analysis of Comments Received All issues raised in the case and rebuttal briefs by parties to this investigation are addressed in the ‘‘Investigation of Laminated Woven Sacks from the People’s Republic of China: Issues and Decision Memorandum,’’ dated June 16, 2008 (‘‘Issues and Decision Memorandum’’), which is hereby adopted by this notice. A list of the issues which parties raised and to which we respond in the Issues and Decision Memorandum is attached to this notice as an Appendix. The Issues and Decision Memorandum is a public document and is on file in the Central Records Unit (‘‘CRU’’), Main Commerce Building, Room 1217, and is accessible on the Web at http:// www.trade.gov/ia. The paper copy and electronic version of the memorandum are identical in content. Changes Since the Preliminary Determination and Amended Preliminary Determination Based on our analysis of information on the record of this investigation, and comments received from the interested parties, we have made changes to the margin calculations for Aifudi. For SSJ, see Use of Facts Available section below. For Aifudi, we have determined Case History that printing cylinders are not a factor The Department published its of production, and should be treated as preliminary determination of sales at factory overhead. For further details, see LTFV on January 31, 2008. See Issues and Decision Memorandum at Laminated Woven Sacks From the Comment 1. We have also revalued People’s Republic of China: Preliminary several of the surrogate values used in Determination of Sales at Less Than the Preliminary Determination. The Fair Value, Partial Affirmative values that were modified for this final Determination of Critical determination are the surrogate Circumstances, and Postponement of financial ratios and the wage rate. For Final Determination, 73 FR 5801 further details, see Issues and Decision (January 31, 2008) (‘‘Preliminary Memorandum at Comments 2 and 4, Determination’’). and Memorandum to the File from We issued Aifudi1 and SSJ2 additional Javier Barrientos, through Alex supplemental questionnaires on January 28, 2008, and January 31, 2008, 3 The Laminated Woven Sacks Committee and its 1 Zibo Aifudi Plastic Packaging Co., Ltd. (‘‘Aifudi’’). 2 Shouguang Jianyuanchun Co., Ltd. (‘‘SSJ’’). VerDate Aug<31>2005 12:39 Jun 23, 2008 Jkt 214001 individual members, Bancroft Bags, Inc., Coating Excellence International, LLC, Hood Packaging Corporation, Mid America Packaging, LLC, and Polytex Fibers Corporation. PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 Villanueva, Program Manager, AD/CVD Operations, Office 9, and James C. Doyle, Director, AD/CVD Operations, Office 9: Laminated Woven Sacks from the People’s Republic of China: Surrogate Values for the Final Determination, dated June 16, 2008 (‘‘Final Surrogate Value Memo’’). In addition, we have incorporated, where applicable, post–preliminary clarifications based on verification and made certain clerical error corrections for Aifudi. For further details on these company–specific changes, see Issues and Decision Memorandum at Comments 8 and 9; see also Memorandum to the File from Javier Barrientos, through Alex Villanueva, Program Manager, AD/CVD Operations, Office 9: Laminated Woven Sacks from the People’s Republic of China: Analysis of Zibo Aifudi Plastic packaging Co., Ltd., for the Final Determination, dated June 16, 2008 (‘‘Aifudi Final Analysis Memo’’). Scope of Investigation 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, regardless of the width of the 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;4 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 (including sheets, lay–flat tubing, and sleeves); with or without handles; with or without special closing features; not exceeding one kilogram in weight. Laminated woven sacks 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 4 ‘‘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. E:\FR\FM\24JNN1.SGM 24JNN1 Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices ebenthall on PRODPC60 with NOTICES consisting of woven polypropylene strip and/or woven polyethylene 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 (including sheets, lay–flat tubing, and sleeves), laminated woven sacks may be classifiable under other HTSUS subheadings including 3917.39.0050, 3921.90.1100, 3921.90.1500, and 5903.90.2500. If the polypropylene strips and/or polyethylene strips making up the fabric measure more than 5 millimeters in width, laminated woven sacks may be classifiable under other HTSUS subheadings including 4601.99.0500, 4601.99.9000, and 4602.90.000. Although HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive. Use of Facts Available Section 776(a)(2) of the Tariff Act of 1930, as amended (‘‘the Act’’), provides that, if an interested party: (A) withholds information that has been requested by the Department; (B) fails to provide such information in a timely manner or in the form or manner requested subject to sections 782(c)(1) and (e) of the Act; (C) significantly impedes a proceeding under the antidumping statute; or (D) provides such information but the information cannot be verified, the Department shall, subject to subsection 782(d) of the Act, use facts otherwise available in reaching the applicable determination. Section 782(c)(1) of the Act provides that if an interested party ‘‘promptly after receiving a request from {the Department} for information, notifies {the Department} that such party is unable to submit the information requested in the requested form and manner, together with a full explanation and suggested alternative form in which such party is able to submit the information,’’ the Department may modify the requirements to avoid imposing an unreasonable burden on that party. Section 782(d) of the Act provides that, if the Department determines that a response to a request for information does not comply with the request, the Department will inform the person submitting the response of the nature of the deficiency and shall, to the extent practicable, provide that person the opportunity to remedy or explain the deficiency. If that person submits further information that continues to be unsatisfactory, or this information is not submitted within the applicable time VerDate Aug<31>2005 12:39 Jun 23, 2008 Jkt 214001 limits, the Department may, subject to section 782(e), disregard all or part of the original and subsequent responses, as appropriate. Section 782(e) of the Act states that the Department shall not decline to consider information deemed ‘‘deficient’’ under section 782(d) if: (1) the information is submitted by the established deadline; (2) the information can be verified; (3) the information is not so incomplete that it cannot serve as a reliable basis for reaching the applicable determination; (4) the interested party has demonstrated that it acted to the best of its ability; and (5) the information can be used without undue difficulties. Furthermore, section 776(b) of the Act states that if the Department ‘‘finds that an interested party has failed to cooperate by not acting to the best of its ability to comply with a request for information from the administering authority or the Commission, the administering authority or the Commission ..., in reaching the applicable determination under this title, may use an inference that is adverse to the interests of that party in selecting from among the facts otherwise available.’’ See also Statement of Administrative Action (SAA) accompanying the Uruguay Round Agreements Act (URAA), H.R. Rep. No. 103–316, Vol. 1 at 870 (1994). For this final determination, in accordance with sections 776(a)(2)(A) through (D) of the Act, we have determined that the use of adverse facts available (‘‘AFA’’) is warranted for SSJ because of its refusal to answer the Department’s supplemental questionnaire. See Issues and Decision Memorandum at Comment 7. As total AFA, we are applying the petition rate to SSJ. Verification As provided in section 782(i) of the Act, we verified the information submitted by Aifudi for use in our final determination. See Aifudi Verification Report. For all verified companies, we used standard verification procedures, including examination of relevant accounting and production records, as well as original source documents provided by respondents. Surrogate Country In the Preliminary Determination, we stated that we had selected India as the appropriate surrogate country to use in this investigation for the following reasons: (1) it is a significant producer of comparable merchandise; (2) it is at a similar level of economic development pursuant to 773(c)(4) of the Act; and (3) PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 35647 we have reliable data from India that we can use to value the factors of production. See Preliminary Determination. For the final determination, we received no comments and made no changes to our findings with respect to the selection of a surrogate country. Separate Rates In proceedings involving non–marketeconomy (‘‘NME’’) countries, the Department begins with a rebuttable presumption that all companies within the country are subject to government control and, thus, should be assigned a single antidumping duty deposit rate. It is the Department’s policy to assign all exporters of merchandise subject to an investigation in an NME country this single rate unless an exporter can demonstrate that it is sufficiently independent so as to be entitled to a separate rate. See Final Determination of Sales at Less Than Fair Value: Sparklers from the People’s Republic of China, 56 FR 20588 (May 6, 1991) (‘‘Sparklers’’), as amplified by Notice of Final Determination of Sales at Less Than Fair Value: Silicon Carbide from the People’s Republic of China, 59 FR 22585 (May 2, 1994) (‘‘Silicon Carbide’’), and Section 351.107(d) of the Department’s regulations. In the Preliminary Determination, we found that Aifudi, SSJ, and the separate rate applicants who received a separate rate (‘‘Separate Rate Applicants’’) demonstrated their eligibility for separate–rate status. For all the same reasons, in the final determination, we continue to find that the evidence placed on the record of this investigation by Aifudi and the Separate Rate Applicants demonstrate both a de jure and de facto absence of government control, with respect to their respective exports of the merchandise under investigation, and, thus are eligible for separate rate status. With respect to SSJ, because SSJ refused to answer our supplemental questionnaires and stopped participating in the investigation, its responses, including its eligibility for separate status, were incomplete and could not be verified. Accordingly, we now consider SSJ part of the PRC–wide entity. Moreover, the Department’s application of facts available to SSJ contributes to the application of facts available applied against the PRC–wide entity, as described herein. The PRC–Wide Rate In the Preliminary Determination, the Department found that certain companies and the PRC–wide entity did not respond to our requests information. In the Preliminary Determination, we E:\FR\FM\24JNN1.SGM 24JNN1 35648 Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices treated these PRC producers/exporters as part of the PRC–wide entity because they did not demonstrate that they operate free of government control over their export activities. No additional information has been placed on the record with respect to these entities after the Preliminary Determination. The PRC–wide entity, including SSJ for this final determination, has not provided the Department with the requested information; therefore, pursuant to sections 776(a)(2)(A) through (D) of the Act, the Department continues to find that the use of facts available is appropriate to determine the PRC–wide rate. Section 776(b) of the Act provides that, in selecting from among the facts otherwise available, the Department may employ an adverse inference if an interested party fails to cooperate by not acting to the best of its ability to comply with requests for information. See Notice of Final Determination of Sales at Less Than Fair Value: Certain Cold–Rolled Flat– Rolled Carbon–Quality Steel Products from the Russian Federation, 65 FR 5510, 5518 (February 4, 2000). See also, SAA at 870. We determined that, because the PRC–wide entity did not respond to our requests for information, it has failed to cooperate to the best of its ability. Therefore, the Department finds that, in selecting from among the facts otherwise available, an adverse inference is appropriate for the PRC– wide entity. Because we begin with the presumption that all companies within a NME country are subject to government control and because only the companies listed under the ‘‘Final Determination Margins’’ section below have overcome that presumption, we are applying a single antidumping rate - the PRC–wide rate - to all other exporters of subject merchandise from the PRC. Such companies did not demonstrate entitlement to a separate rate. See, e.g., Synthetic Indigo from the People’s Republic of China: Notice of Final Determination of Sales at Less Than Fair Value, 65 FR 25706 (May 3, 2000). The PRC–wide rate applies to all entries of subject merchandise except for Aifudi and the Separate Rate Applicants which are listed in the ‘‘Final Determination Margins’’ section below. additional data, we continue to find that Aifudi and the Separate Rate Applicants had massive imports of LWS over a relatively short period of time. See Memorandum to the File from Javier Barrientos, Senior Case Analyst: Critical Circumstances Data for the Final Determination of Antidumping Duty Investigation of Laminated Woven Sacks from the People’s Republic of China, dated June 16, 2008, at Attachment I (‘‘CC MTF’’). In reviewing the data, we find no reason to believe that the HTS categories used in this case are overly broad for this purpose. Additionally, we find that the PRC–wide entity (including SSJ) did not have massive imports of LWS over a relatively short period of time. Id. Critical Circumstances Corroboration In the Preliminary Determination, we found that there had been massive imports of the subject merchandise over a relatively short period for Aifudi and the Separate Rate Applicants. In addition, we found that there had not been massive imports of the subject merchandise over a relatively short period for SSJ and the PRC–wide entity. In the Preliminary Determination, we relied on a comparison period of four months, which was the maximum duration for the information we had available at that time, for determining whether imports of the subject merchandise were massive. For the final determination, however, we collected an additional three months of data from Aifudi. After analyzing the Pursuant to section 776(c) of the Act, we corroborated the petition rate of 91.73 percent by comparing the petition margin to the individual CONNUM margins for Aifudi. See Aifudi Final Analysis Memorandum at Attachment I. We found that since the petition margin of 91.73 percent was within the range of CONNUM margins, we find that the margin of 91.73 percent has probative value. Accordingly, we find that the rate of 91.73 percent is corroborated to the extent practicable within the meaning of section 776(c) of the Act. Exporter ebenthall on PRODPC60 with NOTICES Disclosure We will disclose the calculations performed within five days of the date of publication of this notice to parties in this proceeding in accordance with 19 CFR 351.224(b). 12:39 Jun 23, 2008 Jkt 214001 We determine that the following percentage weighted–average margins exist for the POI: WeightlAverage Margin Producer ZIBO AIFUDI PLASTIC PACKAGING CO., LTD. ........................... POLYWELL INDUSTRIAL CO., a.k.a. FIRST WAY (H.K.) LIMITED ............................................................................................. ZIBO LINZI WORUN PACKING PRODUCT CO., LTD. ................. SHANDONG QIKAI PLASTICS PRODUCT CO., LTD. .................. CHANGLE BAODU PLASTIC CO. LTD. ......................................... ZIBO LINZI SHUAIQIANG PLASTICS CO. LTD. ............................ ZIBO LINZI QITIANLI PLASTIC FABRIC CO. LTD. ....................... SHANDONG YOULIAN CO. LTD .................................................... ZIBO LINZI LUITONG PLASTIC FABRIC CO. LTD. ...................... WENZHOU HOTSON PLASTICS CO. LTD .................................... JIANGSU HOTSON PLASTICS CO. LTD. ...................................... CANGNAN COLOR MAKE THE BAG ............................................ ZIBO QIGAO PLASTIC CEMENT CO. LTD ................................... PRC–WIDE RATE ........................................................................... VerDate Aug<31>2005 Final Determination Margins ZIBO AIFUDI PLASTIC PACKAGING CO., LTD. 64.28% POLYWELL PLASTIC PRODUCT FACTORY ZIBO LINZI WORUN PACKING PRODUCT CO., LTD. SHANDONG QIKAI PLASTICS PRODUCT CO., LTD. CHANGLE BAODU PLASTIC CO. LTD. ZIBO LINZI SHUAIQIANG PLASTICS CO. LTD. ZIBO LINZI QITIANLI PLASTIC FABRIC CO. LTD. SHANDONG YOULIAN CO. LTD ZIBO LINZI LUITONG PLASTIC FABRIC CO. LTD. WENZHOU HOTSON PLASTICS CO. LTD JIANGSU HOTSON PLASTICS CO. LTD. CANGNAN COLOR MAKE THE BAG ZIBO QIGAO PLASTIC CEMENT CO. LTD ........................................................................................ 64.28% 64.28% 64.28% 64.28% 64.28% 64.28% 64.28% 64.28% 64.28% 64.28% 64.28% 64.28% 91.73% Continuation of Suspension of Liquidation Pursuant to section 735(c)(1)(B) of the Act, we will instruct U.S. Customs and Border Protection (‘‘CBP’’) to continue to suspend liquidation of all entries of subject merchandise from the PRC–wide PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 entity entered, or withdrawn from warehouse, for consumption on or after January 31, 2008, the date of publication of the Preliminary Determination. CBP shall continue to require a cash deposit or the posting of a bond equal to the estimated amount by which the normal value exceeds the U.S. price as shown above. E:\FR\FM\24JNN1.SGM 24JNN1 Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices The Department continues to find that critical circumstances exist for Aifudi and the Separate Rate Applicants and therefore we will instruct CBP to continue to suspend liquidation of all entries of subject merchandise from Aifudi and the Separate Rate Applicants entered, or withdrawn from warehouse, for consumption on or after November 2, 2007, which is 90 days prior to the date of publication of the preliminary determination. CBP shall continue to require a cash deposit equal to the estimated amount by which the normal value exceeds the U.S. price as shown above. These instructions suspending liquidation will remain in effect until further notice. In accordance with the preliminary affirmative determination of critical circumstances, we instructed CBP to suspend liquidation of all entries of the subject merchandise for Aifudi, which were entered or withdrawn from warehouse, on or after November 2, 2007, which is 90 days prior to January 31, 2008, the date of publication of the Preliminary Determination in the Federal Register. Because we do not find critical circumstances for the PRC– wide entity, including SSJ, for this final determination, we will instruct CBP to terminate suspension of liquidation, and release any cash deposits or bonds, on imports with respect to SSJ during the 90 day period prior to the date of publication of the Preliminary Determination. Notification Regarding APO This notice also serves as a reminder to the parties subject to administrative protective order (‘‘APO’’) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely notification of return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation. This determination and notice are issued and published in accordance with sections 735(d) and 777(i)(1) of the Act. This determination and notice are issued and published in accordance with sections 735(d) and 777(i)(1) of the Act. Dated: June 16, 2008. Stephen Claeys, Acting Assistant Secretary for Import Administration. Appendix I Comment 1: Printing Cylinders Comment 2: Ink Surrogate Value Comment 3: BOPP Surrogate Value Comment 4: Labor Surrogate Value Comment 5: Boxes Surrogate Value Comment 6: Surrogate Financial Ratios Comment 7: Total AFA for SSJ Comment 8: Billing Adjustments Comment 9: Conversion Factor for Certain Inputs [FR Doc. E8–14266 Filed 6–23–08; 8:45 am] BILLING CODE 3510–DS–S ebenthall on PRODPC60 with NOTICES ITC Notification In accordance with section 735(d) of the Act, we have notified the International Trade Commission (‘‘ITC’’) of our final determination of sales at LTFV. As our final determination is affirmative, in accordance with section 735(b)(2) of the Act, within 45 days the ITC will determine whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports or sales (or the likelihood of sales) for importation of the subject merchandise. If the ITC determines that material injury or threat of material injury does not exist, the proceeding will be terminated and all securities posted will be refunded or canceled. If the ITC determines that such injury does exist, the Department will issue an antidumping duty order directing CBP to assess antidumping duties on all imports of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation. VerDate Aug<31>2005 12:39 Jun 23, 2008 Jkt 214001 DEPARTMENT OF COMMERCE International Trade Administration [A–201–836] Notice of Final Determination of Sales at Less Than Fair Value: Light–Walled Rectangular Pipe and Tube from Mexico Import Administration, International Trade Administration, Department of Commerce. EFFECTIVE DATE: (June 24, 2008. SUMMARY: On January 30, 2008, the Department of Commerce (the Department) published its preliminary determination in the investigation of sales at less than fair value in the antidumping duty investigation of light– walled rectangular pipe and tube (LWR) from Mexico. See Notice of Preliminary Determination of Sales at Less Than Fair Value: Light–Walled Rectangular Pipe and Tube from Mexico, 73 FR 5515 (January 30, 2008) (Preliminary Determination). AGENCY: PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 35649 The Department has determined that LWR from Mexico is being, or is likely to be, sold in the United States at less than fair value, as provided in section 735 of the Tariff Act of 1930, as amended (the Act). The final margins of sales at less than fair value are listed below in the section entitled ‘‘Final Determination of Investigation.’’ FOR FURTHER INFORMATION CONTACT: Patrick Edwards or Judy Lao, AD/CVD Operations, Office 7, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482–8029 or (202) 482– 7924, respectively. SUPPLEMENTARY INFORMATION: Background The preliminary determination in this investigation was published on January 30, 2008. See Preliminary Determination. Since then, we have requested that the respondents in this proceeding, Maquilacero S.A. de C.V. (Maquilacero) and Productos Laminados de Monterrey, S.A. de C.V. (PROLAMSA) (collectively, respondents), provide the downstream sales data, regarding their affiliates’ sales to the first unaffiliated customer in the comparison market (i.e., Mexico). See Letter from Angelica L. Mendoza, Program Manager, Office 7, to Maquilacero S.A. de C.V., entitled ‘‘Request for Downstream Sales Data,’’ dated January 24, 2008; see also, letter from Angelica L. Mendoza, Program Manager, Office 7, to Productos Laminados de Monterrey, S.A. de C.V., entitled ‘‘Request for Downstream Sales Data,’’ dated January 24, 2008. Maquilacero filed the downstream sales response on behalf of its affiliate on February 6, 2008. PROLAMSA filed the downstream sales response on behalf of its affiliate on February 6, 2008. We conducted sales and cost verifications of the responses (including the downstream sales responses) submitted by Maquilacero and PROLAMSA. See Memorandum to the File from Patrick Edwards and Judy Lao, Case Analysts, through Angelica L. Mendoza, Program Manager, Office 7, entitled ‘‘Verification of the Sales Responses of Maquilacero S.A. de C.V. in the Antidumping Duty Investigation of Light–Walled Rectangular Pipe and Tube from Mexico,’’ dated April 11, 2008 (Maquilacero Verification Report); see also Memorandum to the File from Patrick Edwards and Dena Crossland, Case Analysts, through Angelica L. Mendoza, Program Manager, Office 7, entitled ‘‘Verification of the Sales E:\FR\FM\24JNN1.SGM 24JNN1

Agencies

[Federal Register Volume 73, Number 122 (Tuesday, June 24, 2008)]
[Notices]
[Pages 35646-35649]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14266]



[[Page 35646]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-916]


Laminated Woven Sacks from the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value and Partial Affirmative 
Determination of Critical Circumstances

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

EFFECTIVE DATE: June 24, 2008.
SUMMARY: On January 31, 2008, the Department of Commerce (the 
``Department'') published its preliminary determination of sales at 
less than fair value (``LTFV'') in the antidumping investigation of 
laminated woven sacks (``LWS'') from the People's Republic of China 
(``PRC''). The period of investigation (``POI'') is October 1, 2006, to 
March 31, 2007. We invited interested parties to comment on our 
preliminary determination of sales at LTFV. Based on our analysis of 
the comments we received, we have made changes to our calculations for 
the mandatory respondents. We determine that LWS from the PRC are 
being, or are likely to be, sold in the United States at LTFV as 
provided in section 735 of the Tariff Act of 1930, as amended (``the 
Act''). The estimated margins of sales at LTFV are shown in the ``Final 
Determination Margins'' section of this notice.

FOR FURTHER INFORMATION CONTACT: Javier Barrientos, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230; telephone: (202) 482-2243.

SUPPLEMENTARY INFORMATION:

Case History

    The Department published its preliminary determination of sales at 
LTFV on January 31, 2008. See Laminated Woven Sacks From the People's 
Republic of China: Preliminary Determination of Sales at Less Than Fair 
Value, Partial Affirmative Determination of Critical Circumstances, and 
Postponement of Final Determination, 73 FR 5801 (January 31, 2008) 
(``Preliminary Determination'').
    We issued Aifudi\1\ and SSJ\2\ additional supplemental 
questionnaires on January 28, 2008, and January 31, 2008, respectively. 
We received Aifudi's's response on February 29, 2008. On February 15, 
2008, SSJ submitted a letter stating that it was not responding to the 
questionnaire.
---------------------------------------------------------------------------

    \1\ Zibo Aifudi Plastic Packaging Co., Ltd. (``Aifudi'').
    \2\ Shouguang Jianyuanchun Co., Ltd. (``SSJ'').
---------------------------------------------------------------------------

    Between March 31 and April 11, 2008, the Department conducted 
verifications of Aifudi and its constructed export price (CEP) 
entities. See the ``Verification'' section below for additional 
information.
    We invited parties to comment on the Preliminary Determination. On 
May 14, 2008, Petitioners and Aifudi filed case briefs. On May 19, 
2008, Petitioners\3\ and Aifudi submitted rebuttal briefs.
---------------------------------------------------------------------------

    \3\ 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.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the ``Investigation of Laminated 
Woven Sacks from the People's Republic of China: Issues and Decision 
Memorandum,'' dated June 16, 2008 (``Issues and Decision Memorandum''), 
which is hereby adopted by this notice. A list of the issues which 
parties raised and to which we respond in the Issues and Decision 
Memorandum is attached to this notice as an Appendix. The Issues and 
Decision Memorandum is a public document and is on file in the Central 
Records Unit (``CRU''), Main Commerce Building, Room 1217, and is 
accessible on the Web at http://www.trade.gov/ia. The paper copy and 
electronic version of the memorandum are identical in content.

Changes Since the Preliminary Determination and Amended Preliminary 
Determination

    Based on our analysis of information on the record of this 
investigation, and comments received from the interested parties, we 
have made changes to the margin calculations for Aifudi. For SSJ, see 
Use of Facts Available section below. For Aifudi, we have determined 
that printing cylinders are not a factor of production, and should be 
treated as factory overhead. For further details, see Issues and 
Decision Memorandum at Comment 1. We have also revalued several of the 
surrogate values used in the Preliminary Determination. The values that 
were modified for this final determination are the surrogate financial 
ratios and the wage rate. For further details, see Issues and Decision 
Memorandum at Comments 2 and 4, and Memorandum to the File from Javier 
Barrientos, through Alex Villanueva, Program Manager, AD/CVD 
Operations, Office 9, and James C. Doyle, Director, AD/CVD Operations, 
Office 9: Laminated Woven Sacks from the People's Republic of China: 
Surrogate Values for the Final Determination, dated June 16, 2008 
(``Final Surrogate Value Memo'').
    In addition, we have incorporated, where applicable, post-
preliminary clarifications based on verification and made certain 
clerical error corrections for Aifudi. For further details on these 
company-specific changes, see Issues and Decision Memorandum at 
Comments 8 and 9; see also Memorandum to the File from Javier 
Barrientos, through Alex Villanueva, Program Manager, AD/CVD 
Operations, Office 9: Laminated Woven Sacks from the People's Republic 
of China: Analysis of Zibo Aifudi Plastic packaging Co., Ltd., for the 
Final Determination, dated June 16, 2008 (``Aifudi Final Analysis 
Memo'').

Scope of Investigation

    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, regardless of the width of the 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;\4\ 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 (including sheets, lay-flat tubing, and 
sleeves); with or without handles; with or without special closing 
features; not exceeding one kilogram in weight. Laminated woven sacks 
are typically used for retail packaging of consumer goods such as pet 
foods and bird seed.
---------------------------------------------------------------------------

    \4\ ``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

[[Page 35647]]

consisting of woven polypropylene strip and/or woven polyethylene 
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 (including sheets, lay-flat 
tubing, and sleeves), laminated woven sacks may be classifiable under 
other HTSUS subheadings including 3917.39.0050, 3921.90.1100, 
3921.90.1500, and 5903.90.2500. If the polypropylene strips and/or 
polyethylene strips making up the fabric measure more than 5 
millimeters in width, laminated woven sacks may be classifiable under 
other HTSUS subheadings including 4601.99.0500, 4601.99.9000, and 
4602.90.000. Although HTSUS subheadings are provided for convenience 
and customs purposes, the written description of the scope of this 
investigation is dispositive.

Use of Facts Available

    Section 776(a)(2) of the Tariff Act of 1930, as amended (``the 
Act''), provides that, if an interested party: (A) withholds 
information that has been requested by the Department; (B) fails to 
provide such information in a timely manner or in the form or manner 
requested subject to sections 782(c)(1) and (e) of the Act; (C) 
significantly impedes a proceeding under the antidumping statute; or 
(D) provides such information but the information cannot be verified, 
the Department shall, subject to subsection 782(d) of the Act, use 
facts otherwise available in reaching the applicable determination.
    Section 782(c)(1) of the Act provides that if an interested party 
``promptly after receiving a request from {the Department{time}  for 
information, notifies {the Department{time}  that such party is unable 
to submit the information requested in the requested form and manner, 
together with a full explanation and suggested alternative form in 
which such party is able to submit the information,'' the Department 
may modify the requirements to avoid imposing an unreasonable burden on 
that party.
    Section 782(d) of the Act provides that, if the Department 
determines that a response to a request for information does not comply 
with the request, the Department will inform the person submitting the 
response of the nature of the deficiency and shall, to the extent 
practicable, provide that person the opportunity to remedy or explain 
the deficiency. If that person submits further information that 
continues to be unsatisfactory, or this information is not submitted 
within the applicable time limits, the Department may, subject to 
section 782(e), disregard all or part of the original and subsequent 
responses, as appropriate.
    Section 782(e) of the Act states that the Department shall not 
decline to consider information deemed ``deficient'' under section 
782(d) if: (1) the information is submitted by the established 
deadline; (2) the information can be verified; (3) the information is 
not so incomplete that it cannot serve as a reliable basis for reaching 
the applicable determination; (4) the interested party has demonstrated 
that it acted to the best of its ability; and (5) the information can 
be used without undue difficulties.
    Furthermore, section 776(b) of the Act states that if the 
Department ``finds that an interested party has failed to cooperate by 
not acting to the best of its ability to comply with a request for 
information from the administering authority or the Commission, the 
administering authority or the Commission ..., in reaching the 
applicable determination under this title, may use an inference that is 
adverse to the interests of that party in selecting from among the 
facts otherwise available.'' See also Statement of Administrative 
Action (SAA) accompanying the Uruguay Round Agreements Act (URAA), H.R. 
Rep. No. 103-316, Vol. 1 at 870 (1994).
    For this final determination, in accordance with sections 
776(a)(2)(A) through (D) of the Act, we have determined that the use of 
adverse facts available (``AFA'') is warranted for SSJ because of its 
refusal to answer the Department's supplemental questionnaire. See 
Issues and Decision Memorandum at Comment 7. As total AFA, we are 
applying the petition rate to SSJ.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by Aifudi for use in our final determination. See 
Aifudi Verification Report. For all verified companies, we used 
standard verification procedures, including examination of relevant 
accounting and production records, as well as original source documents 
provided by respondents.

Surrogate Country

    In the Preliminary Determination, we stated that we had selected 
India as the appropriate surrogate country to use in this investigation 
for the following reasons: (1) it is a significant producer of 
comparable merchandise; (2) it is at a similar level of economic 
development pursuant to 773(c)(4) of the Act; and (3) we have reliable 
data from India that we can use to value the factors of production. See 
Preliminary Determination. For the final determination, we received no 
comments and made no changes to our findings with respect to the 
selection of a surrogate country.

Separate Rates

    In proceedings involving non-market-economy (``NME'') countries, 
the Department begins with a rebuttable presumption that all companies 
within the country are subject to government control and, thus, should 
be assigned a single antidumping duty deposit rate. It is the 
Department's policy to assign all exporters of merchandise subject to 
an investigation in an NME country this single rate unless an exporter 
can demonstrate that it is sufficiently independent so as to be 
entitled to a separate rate. See Final Determination of Sales at Less 
Than Fair Value: Sparklers from the People's Republic of China, 56 FR 
20588 (May 6, 1991) (``Sparklers''), as amplified by Notice of Final 
Determination of Sales at Less Than Fair Value: Silicon Carbide from 
the People's Republic of China, 59 FR 22585 (May 2, 1994) (``Silicon 
Carbide''), and Section 351.107(d) of the Department's regulations. In 
the Preliminary Determination, we found that Aifudi, SSJ, and the 
separate rate applicants who received a separate rate (``Separate Rate 
Applicants'') demonstrated their eligibility for separate-rate status. 
For all the same reasons, in the final determination, we continue to 
find that the evidence placed on the record of this investigation by 
Aifudi and the Separate Rate Applicants demonstrate both a de jure and 
de facto absence of government control, with respect to their 
respective exports of the merchandise under investigation, and, thus 
are eligible for separate rate status. With respect to SSJ, because SSJ 
refused to answer our supplemental questionnaires and stopped 
participating in the investigation, its responses, including its 
eligibility for separate status, were incomplete and could not be 
verified. Accordingly, we now consider SSJ part of the PRC-wide entity. 
Moreover, the Department's application of facts available to SSJ 
contributes to the application of facts available applied against the 
PRC-wide entity, as described herein.

The PRC-Wide Rate

    In the Preliminary Determination, the Department found that certain 
companies and the PRC-wide entity did not respond to our requests 
information. In the Preliminary Determination, we

[[Page 35648]]

treated these PRC producers/exporters as part of the PRC-wide entity 
because they did not demonstrate that they operate free of government 
control over their export activities. No additional information has 
been placed on the record with respect to these entities after the 
Preliminary Determination. The PRC-wide entity, including SSJ for this 
final determination, has not provided the Department with the requested 
information; therefore, pursuant to sections 776(a)(2)(A) through (D) 
of the Act, the Department continues to find that the use of facts 
available is appropriate to determine the PRC-wide rate. Section 776(b) 
of the Act provides that, in selecting from among the facts otherwise 
available, the Department may employ an adverse inference if an 
interested party fails to cooperate by not acting to the best of its 
ability to comply with requests for information. See Notice of Final 
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled 
Flat-Rolled Carbon-Quality Steel Products from the Russian Federation, 
65 FR 5510, 5518 (February 4, 2000). See also, SAA at 870. We 
determined that, because the PRC-wide entity did not respond to our 
requests for information, it has failed to cooperate to the best of its 
ability. Therefore, the Department finds that, in selecting from among 
the facts otherwise available, an adverse inference is appropriate for 
the PRC-wide entity.
    Because we begin with the presumption that all companies within a 
NME country are subject to government control and because only the 
companies listed under the ``Final Determination Margins'' section 
below have overcome that presumption, we are applying a single 
antidumping rate - the PRC-wide rate - to all other exporters of 
subject merchandise from the PRC. Such companies did not demonstrate 
entitlement to a separate rate. See, e.g., Synthetic Indigo from the 
People's Republic of China: Notice of Final Determination of Sales at 
Less Than Fair Value, 65 FR 25706 (May 3, 2000). The PRC-wide rate 
applies to all entries of subject merchandise except for Aifudi and the 
Separate Rate Applicants which are listed in the ``Final Determination 
Margins'' section below.

Critical Circumstances

    In the Preliminary Determination, we found that there had been 
massive imports of the subject merchandise over a relatively short 
period for Aifudi and the Separate Rate Applicants. In addition, we 
found that there had not been massive imports of the subject 
merchandise over a relatively short period for SSJ and the PRC-wide 
entity. In the Preliminary Determination, we relied on a comparison 
period of four months, which was the maximum duration for the 
information we had available at that time, for determining whether 
imports of the subject merchandise were massive.
    For the final determination, however, we collected an additional 
three months of data from Aifudi. After analyzing the additional data, 
we continue to find that Aifudi and the Separate Rate Applicants had 
massive imports of LWS over a relatively short period of time. See 
Memorandum to the File from Javier Barrientos, Senior Case Analyst: 
Critical Circumstances Data for the Final Determination of Antidumping 
Duty Investigation of Laminated Woven Sacks from the People's Republic 
of China, dated June 16, 2008, at Attachment I (``CC MTF''). In 
reviewing the data, we find no reason to believe that the HTS 
categories used in this case are overly broad for this purpose. 
Additionally, we find that the PRC-wide entity (including SSJ) did not 
have massive imports of LWS over a relatively short period of time. Id.

Corroboration

    Pursuant to section 776(c) of the Act, we corroborated the petition 
rate of 91.73 percent by comparing the petition margin to the 
individual CONNUM margins for Aifudi. See Aifudi Final Analysis 
Memorandum at Attachment I. We found that since the petition margin of 
91.73 percent was within the range of CONNUM margins, we find that the 
margin of 91.73 percent has probative value. Accordingly, we find that 
the rate of 91.73 percent is corroborated to the extent practicable 
within the meaning of section 776(c) of the Act.

Final Determination Margins

    We determine that the following percentage weighted-average margins 
exist for the POI:

----------------------------------------------------------------------------------------------------------------
                                                                                                Weight--Average
                Exporter                                       Producer                             Margin
----------------------------------------------------------------------------------------------------------------
ZIBO AIFUDI PLASTIC PACKAGING CO., LTD..             ZIBO AIFUDI PLASTIC PACKAGING CO., LTD.              64.28%
POLYWELL INDUSTRIAL CO., a.k.a. FIRST                       POLYWELL PLASTIC PRODUCT FACTORY              64.28%
 WAY (H.K.) LIMITED.....................
ZIBO LINZI WORUN PACKING PRODUCT CO.,             ZIBO LINZI WORUN PACKING PRODUCT CO., LTD.              64.28%
 LTD....................................
SHANDONG QIKAI PLASTICS PRODUCT CO.,               SHANDONG QIKAI PLASTICS PRODUCT CO., LTD.              64.28%
 LTD....................................
CHANGLE BAODU PLASTIC CO. LTD...........                      CHANGLE BAODU PLASTIC CO. LTD.              64.28%
ZIBO LINZI SHUAIQIANG PLASTICS CO. LTD..             ZIBO LINZI SHUAIQIANG PLASTICS CO. LTD.              64.28%
ZIBO LINZI QITIANLI PLASTIC FABRIC CO.           ZIBO LINZI QITIANLI PLASTIC FABRIC CO. LTD.              64.28%
 LTD....................................
SHANDONG YOULIAN CO. LTD................                            SHANDONG YOULIAN CO. LTD              64.28%
ZIBO LINZI LUITONG PLASTIC FABRIC CO.             ZIBO LINZI LUITONG PLASTIC FABRIC CO. LTD.              64.28%
 LTD....................................
WENZHOU HOTSON PLASTICS CO. LTD.........                     WENZHOU HOTSON PLASTICS CO. LTD              64.28%
JIANGSU HOTSON PLASTICS CO. LTD.........                    JIANGSU HOTSON PLASTICS CO. LTD.              64.28%
CANGNAN COLOR MAKE THE BAG..............                          CANGNAN COLOR MAKE THE BAG              64.28%
ZIBO QIGAO PLASTIC CEMENT CO. LTD.......                   ZIBO QIGAO PLASTIC CEMENT CO. LTD              64.28%
PRC-WIDE RATE...........................  ..................................................              91.73%
----------------------------------------------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we will instruct U.S. 
Customs and Border
    Protection (``CBP'') to continue to suspend liquidation of all 
entries of subject merchandise from the PRC-wide entity entered, or 
withdrawn from warehouse, for consumption on or after January 31, 2008, 
the date of publication of the Preliminary Determination. CBP shall 
continue to require a cash deposit or the posting of a bond equal to 
the estimated amount by which the normal value exceeds the U.S. price 
as shown above.

[[Page 35649]]

    The Department continues to find that critical circumstances exist 
for Aifudi and the Separate Rate Applicants and therefore we will 
instruct CBP to continue to suspend liquidation of all entries of 
subject merchandise from Aifudi and the Separate Rate Applicants 
entered, or withdrawn from warehouse, for consumption on or after 
November 2, 2007, which is 90 days prior to the date of publication of 
the preliminary determination. CBP shall continue to require a cash 
deposit equal to the estimated amount by which the normal value exceeds 
the U.S. price as shown above. These instructions suspending 
liquidation will remain in effect until further notice.
    In accordance with the preliminary affirmative determination of 
critical circumstances, we instructed CBP to suspend liquidation of all 
entries of the subject merchandise for Aifudi, which were entered or 
withdrawn from warehouse, on or after November 2, 2007, which is 90 
days prior to January 31, 2008, the date of publication of the 
Preliminary Determination in the Federal Register. Because we do not 
find critical circumstances for the PRC-wide entity, including SSJ, for 
this final determination, we will instruct CBP to terminate suspension 
of liquidation, and release any cash deposits or bonds, on imports with 
respect to SSJ during the 90 day period prior to the date of 
publication of the Preliminary Determination.

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our final determination of 
sales at LTFV. As our final determination is affirmative, in accordance 
with section 735(b)(2) of the Act, within 45 days the ITC will 
determine whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports or sales (or the likelihood of sales) for importation of the 
subject merchandise. If the ITC determines that material injury or 
threat of material injury does not exist, the proceeding will be 
terminated and all securities posted will be refunded or canceled. If 
the ITC determines that such injury does exist, the Department will 
issue an antidumping duty order directing CBP to assess antidumping 
duties on all imports of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Notification Regarding APO

    This notice also serves as a reminder to the parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely notification of return or 
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and the 
terms of an APO is a sanctionable violation. This determination and 
notice are issued and published in accordance with sections 735(d) and 
777(i)(1) of the Act.
    This determination and notice are issued and published in 
accordance with sections 735(d) and 777(i)(1) of the Act.

    Dated: June 16, 2008.
Stephen Claeys,
Acting Assistant Secretary for Import Administration.

Appendix I

Comment 1: Printing Cylinders
Comment 2: Ink Surrogate Value
Comment 3: BOPP Surrogate Value
Comment 4: Labor Surrogate Value
Comment 5: Boxes Surrogate Value
Comment 6: Surrogate Financial Ratios
Comment 7: Total AFA for SSJ
Comment 8: Billing Adjustments
Comment 9: Conversion Factor for Certain Inputs
[FR Doc. E8-14266 Filed 6-23-08; 8:45 am]
BILLING CODE 3510-DS-S