Polyethylene Terephthalate Film, Sheet, and Strip From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review, 31922-31926 [E9-15961]
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Federal Register / Vol. 74, No. 127 / Monday, July 6, 2009 / Notices
Assistant Secretary for Import
Administration, U.S. Department of
Commerce, Room 1870, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230. Parties will be notified of the
schedule for the hearing and parties
should confirm the time, date, and place
of the hearing 48 hours before the
scheduled time. Requests for a public
hearing should contain: (1) party’s
name, address, and telephone number;
(2) the number of participants; and (3)
to the extent practicable, an
identification of the arguments to be
raised at the hearing.
This determination is issued and
published pursuant to sections 703(f)
and 777(i) of the Act and 19 CFR
351.221(b)(4).
Dated: June 29, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for
Antidumping and Countervailing Duty
Operations.
[FR Doc. E9–15967 Filed 7–2–09; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–807]
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Polyethylene Terephthalate Film,
Sheet, and Strip From the Republic of
Korea: Preliminary Results of
Antidumping Duty Administrative
Review
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
is conducting an administrative review
of the antidumping duty order on
polyethylene terephthalate film, sheet
and strip (PET film) from the Republic
of Korea (Korea). This review covers one
company, Kolon Industries Inc. (Kolon)
and the period October 2, 2007, through
May 31, 2008. We preliminarily
determine that Kolon has not made sales
below normal value (NV). If these
preliminary results are adopted in the
final results of review, we will instruct
U.S. Customs and Border Protection
(CBP) to assess antidumping duties on
all appropriate entries.
Interested parties are invited to
comment on these preliminary results.
We will issue the final results no later
than 120 days from the date of
publication of this notice.
DATES: Effective Date: July 6, 2009.
FOR FURTHER INFORMATION CONTACT:
Michael J. Heaney or Robert James, AD/
CVD Operations, Office 7, Import
Administration, International Trade
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Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–4475 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 9, 2008, the Department
published in the Federal Register a
notice of ‘‘Opportunity to Request
Administrative Review’’ of the
antidumping duty order on PET film
from Korea. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
to Request Administrative Review, 73
FR 32557 (June 9, 2008).
In accordance with Section 751 (a)(1)
of the Tariff Act, as amended (the Act)
and 19 CFR 351.213(b)(2), on June 30,
2008, Kolon requested an administrative
review of the antidumping duty order
on PET film from Korea. On June 30,
2008, DuPont Teijin Films (DuPont),
Mitsubishi Polyester Film, Inc.
(Mitsubishi), and Toray Plastics
America Inc. (Toray) (collectively
‘‘Petitioners’’), also requested a review
of Kolon.
On July 30, 2008, the Department
initiated an administrative review for
Kolon covering the period October 2,
2007, through May 31, 2008. See
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews, Request for Revocation in Part,
and Deferral of Administrative Review,
73 FR 44220 (July 30, 2008).
On June 30, 2008, we issued our
antidumping questionnaire to Kolon.
We received Kolon’s response to our
questionnaire on September 10, 2008
(Section A) and October 3, 2008
(Sections B, C, and D). During the
period December 18, 2008, through
April 1, 2009, we issued supplemental
questionnaires to Kolon. We received
responses to those questionnaires from
January 23, 2009, through April 24,
2009.
On February 23, 2009, we extended
the deadline for the preliminary results
of this review until no later than June
30, 2009. See Polyethylene
Terephthalate Film, Sheet and Strip
from the Republic of Korea: Extension of
Time Limit for the Preliminary Results
of the 2007/2008 Administrative
Review, 74 FR 8054 (February 23, 2009).
On May 26, 2009, Petitioners
submitted comments concerning the
profitability of Kolon’s home market
and U.S. sales and the model match
methodology that should be employed
in this review. On June 9, 2009, Kolon
submitted rebuttal comments to
Petitioner’s May 26, 2009 letter. See the
‘‘Product Comparisons’’ section of this
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Notice, infra, for a discussion of the
Model match methodology that we have
employed in this review.
Scope of the Order
Imports covered by this review are
shipments of all gauges of raw,
pretreated, or primed polyethylene
terephthalate film, sheet, and strip,
whether extruded or coextruded. The
films excluded from this review are
metallized films and other finished
films that have had at least one of their
surfaces modified by the application of
a performance enhancing resinous or
inorganic layer of more than 0.00001
inches (0.254 micrometers) thick.
PET film is currently classifiable
under Harmonized Tariff Schedule
(HTS) subheading 3920.62.00. The HTS
subheading is provided for convenience
and for customs purposes. The written
description remains dispositive as to the
scope of the product coverage.
Period of Review
On August 20, 2008, Kolon requested
that the Department amend the time
frame covered by the review to the
period April 3, 2008, to May 31, 2008.
See Kolon’s August 20, 2008, letter.
Kolon noted that April 3, 2008, is the
date that the Department published its
final results of the changed
circumstances review in which Kolon
was formally reinstated within the
order. See Polyethylene Terephthalate
Film, Sheet, and Strip from Korea: Final
Results of Antidumping Duty Changed
Circumstances Review and
Reinstatement of the Antidumping Duty
Order, 73 FR 18259 (April 3, 2008)
(Final Results of CC Review). Kolon
asserted the Department has no basis to
review transactions prior to the date
Kolon was formally reinstated into the
order.
On August 27, 2008, Petitioners filed
a rebuttal to Kolon’s August 20, 2008
letter. See Petitioners’ August 27, 2008,
letter. Petitioners noted the Department
ordered CBP to suspend liquidation of
Kolon’s entries on October 2, 2007,
which is the date the Department issued
its Preliminary Results of the Changed
Circumstances Review. See
Polyethylene Terephthalate Film, Sheet,
and Strip from the Republic of Korea:
Preliminary Results of Changed
Circumstances Review and Intent to
Reinstate Kolon Industries, Inc. in the
Antidumping Duty Order, 72 FR 56048
(October 2, 2007). Petitioners assert that
because the Department ordered
suspension of liquidation with respect
to Kolon’s entries effective October 2,
2007, that date is the proper date for the
beginning of the review period.
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We have preliminarily defined the
period covered by this review as
October 2, 2007, through May 31, 2008.
In our Preliminary Results of CC Review,
we indicated the effective date for
suspension of liquidation would be the
date of the publication of the
Preliminary Results of CC Review. See
Preliminary Results of CC Review at
56048. Furthermore, Kolon was aware of
the possibility of reinstatement into the
order at the initiation of the changed
circumstances review, and the potential
imposition of antidumping duties if the
Department found that Kolon had
resumed dumping. See Initiation of
Antidumping Duty Changed
Circumstances Review: Polyethylene
Terpthalate Film, Sheet, and Strip from
Korea, 72 FR 527 (January 5, 2007). In
order to provide for the imposition of
duties at a later point, the Department
suspended liquidation of entries on the
date of publication of the Preliminary
Results of CC Review. This is consistent
with our practice in changed
circumstances reviews. See, e.g.,
Sebacic Acid from the People’s Republic
of China: Final Results of Antidumping
Duty Changed Circumstances Review
and Reinstatement of the Antidumping
Order, 70 FR 16218 (March 30, 2005)
and Certain Hot-Rolled Carbon Steel
Flat Products from Thailand: Final
Results of Antidumping Duty Changed
Circumstances Review and
Reinstatement in the Antidumping
Order, 74 FR 22885 (May 15, 2009).
In addition, 19 CFR 351.222(b)(2)(i)
states that in considering whether to
revoke an antidumping order, the
Secretary will, inter alia, consider
whether the respondent has agreed in
writing to an immediate reinstatement
into the order if the Secretary concludes
that the respondent sold merchandise at
less than fair value. In determining to
revoke the order as to Kolon, the
Department noted that Kolon provided
a statement agreeing to the immediate
reinstatement of the order if the
Department determines that Kolon sold
merchandise at less than fair value. See
Polyethylene Terpthalate Film, Sheet,
and Strip from the Republic of Korea;
Final Results of Antidumping Duty
Administrative Review and Notice of
Revocation in Part, 61 FR 58374, 58375
(November 14, 1996). Therefore, Kolon
was aware of the potential for
‘‘immediate’’ reinstatement in the order
if dumping resumed and the necessity
of suspending liquidation in order to
impose duties at a later point. The
inclusion in the period of review of
Kolon’s U.S. sales made beginning
October 2, 2007, through May 31, 2008,
is therefore reasonable. This is also in
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keeping with our practice in other
contexts, in which the period of review
covers entries, exports and sales during
the period beginning with the date of
suspension of liquidation. See 19 CFR
351.213(e)(1)(ii). Based on the foregoing,
we have included in this review all of
Kolon’s U.S. sales made during the
period October 2, 2007, through May 31,
2008.
Comparisons to Normal Value
To determine whether sales of PET
film from Korea to the United States
were made at less than NV, we
compared Kolon’s constructed export
price (CEP) or export price (EP) sales
made in the United States to unaffiliated
purchasers, to NV, as described in the
‘‘United States Price’’ and ‘‘Normal
Value’’ sections of this notice, below. In
accordance with section 777A(d)(2) of
the Act, we compared the CEP and EP
of individual transactions to monthly
weighted-average NVs.
In accordance with section 771(16) of
the Act we considered all products
produced by Kolon covered by the
description in the ‘‘Scope of the Order’’
section, above, and sold in the home
market during the POR, to be foreign
like products for purposes of
determining appropriate product
comparisons to U.S. sales. We first
attempted to compare contemporaneous
U.S. and comparison-market sales of
products that are identical with respect
to the following characteristics: (1)
Specification; (2) thickness; (3) surface
treatment; and (4) grade. Consistent
with the methodology employed in
Final Results of CC Review, and in the
recent investigation of PET film from
Thailand, we used the actual
thicknesses of the film rather than a
range of thicknesses for product
comparison purposes. See Final Results
of CC Review and Accompanying Issues
and Decision Memorandum at Comment
7. See also, Notice of Preliminary
Determination of Sales at Not Less Than
Fair Value: Polyethylene Terephthalate
Film, Sheet, and Strip from Thailand 73
FR 24565, 24567 (May 5, 2008)
(unchanged in final determination).
Where we were unable to compare sales
of identical merchandise, we compared
U.S. sales to home market sales of the
most similar merchandise based on the
above characteristics. Where there were
no sales of the foreign like product of
the identical merchandise in the
ordinary course of trade in the home
market to compare to a U.S. sale, we
compared the price of the U.S. sale to
constructed value (CV).
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Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we base NV on sales made
in the home market at the same level of
trade (LOT) as the CEP or EP sales in the
U.S. market. The NV LOT is defined as
the starting-price sales in the home
market or, when NV is based CV, as the
sales from which selling, general, and
administrative (SG&A) expenses and
profit are derived. See 19 CFR
351.412(b)(2)(c). The EP LOT is defined
as the starting price in the United States
to the unaffiliated U.S. customer. With
respect to CEP transactions in the U.S.
market, the CEP LOT is defined as the
level of the constructed sale from the
exporter to the importer. See
773(a)(7)(A) of the Act.
To determine whether NV sales are at
a different LOT than CEP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the unaffiliated customer. See 19 CFR
351.412(c)(2). If the home-market sales
are at different LOTs, and the difference
affects price comparability, as
manifested in a pattern of consistent
price differences between the sales on
which NV is based and comparisonmarket sales at the LOT of the export
transaction, we make a LOT adjustment
under section 773(a)(7)(A) of the Act.
For CEP sales, if the NV level is more
remote from the factory than the CEP
level and there is no basis for
determining whether the difference in
the levels between NV and CEP affects
price comparability, we adjust NV
under section 773(a)(7)(B) of the Act
(the CEP offset provision). See, e.g.,
Preliminary CC Review at 56050; see
also Certain Hot-Rolled Flat-Rolled
Carbon Quality Steel Products from
Brazil; Preliminary Results of
Antidumping Duty Administrative
Review, 70 FR 17406, 17410 (April 6,
2005); unchanged in Notice of Final
Results of Antidumping Duty
Administrative Review of Certain HotRolled Flat-Rolled Carbon Quality Steel
Products from Brazil, 70 FR 58683
(October 7, 2005). For CEP sales, we
consider only the selling activities
reflected in the price after the deduction
of expenses and CEP profit under
section 772(d) of the Tariff Act. See
Micron Technology, Inc. v. United
States, 243 F.3d 1301, 1314–1315 (Fed.
Cir. 2001). We expect that if the LOTs
claimed by the respondent are the same,
the functions and activities of the seller
should be similar. Conversely, if a party
claims that the LOTs are different for
different groups of sales, the functions
and activities of the seller should be
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dissimilar. See Porcelain-on-Steel
Cookware from Mexico: Final Results of
Administrative Review, 65 FR 30068
(May 10, 2000) and accompanying
Issues and Decisions Memorandum at
Comment 6.
We obtained information from Kolon
regarding the marketing stages involved
in making its reported foreign market
and U.S. sales to unaffiliated customers.
Kolon provided a description of all
selling activities performed, along with
a flowchart and tables comparing the
levels of trade among each channel of
distribution and customer category for
both markets. See Kolon’s September
10, 2008, questionnaire response at A–
12.
For the home market, Kolon identified
two channels of distribution described
as follows: (1) Direct shipments (i.e.,
products produced to order); and (2)
warehouse shipments from inventory.
Id. Within each of these two channels of
distribution, Kolon made sales to
unaffiliated customers. Id. We reviewed
the level at which Kolon performed
each of these selling functions with
respect to each claimed channel of
distribution and customer category. For
all of the activities listed (which
included sales forecasting, strategic and
economic planning, sales promotion,
order processing, and technical
assistance), the level of performance for
both direct shipments and warehouse
shipments was identical across all types
of customers. Based on our analysis of
all of Kolon’s home market selling
functions, we find all home market sales
were made at the same LOT, the NV
LOT. We also found that Kolon
provided a similar level of selling
functions on all of its EP sales, and that
the level of these EP selling functions
was comparable to the level of selling
functions that Kolon performed on its
home market sales. Id. Based on the
foregoing, we determine that there is
one level of trade for Kolon’s EP sales
and that the EP LOT is comparable to
the home market LOT.
Kolon also indicated it made CEP
sales through its U.S. affiliate, Kolon
USA. Id. We then compared the CEP
LOT to the NV LOT. The CEP LOT is
based on the selling activities associated
with the transaction between Kolon and
its affiliated importer, Kolon USA,
whereas the NV LOT is based on the
selling activities associated with the
transactions between Kolon and
unaffiliated customers in the home
market. Our analysis indicates the
selling functions performed for
unaffiliated home market customers are
either performed at a higher degree of
intensity or are greater in number than
the selling functions performed for
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Kolon USA. For example, in comparing
Kolon’s selling activities, we find there
are more functions performed in the
home market which are not a part of
CEP transactions (e.g., sales promotion,
inventory maintenance, sales and
marketing support). For selling activities
performed for both home market sales
and CEP sales (e.g., processing customer
orders, freight and delivery
arrangements), we find Kolon actually
performed each activity at a higher level
of intensity in the home market. We
note that CEP sales from Kolon to Kolon
USA generally occur at the beginning of
the distribution chain, representing
essentially a logistical transfer of
inventory that resembles ex-factory
sales. In contrast, all sales in the home
market occur closer to the end of the
distribution chain and involve smaller
volumes and more customer interaction
which, in turn, require the performance
of more selling functions. Id. Based on
the foregoing, we conclude that the NV
LOT is at a more advanced stage than
the CEP LOT. Because we found the
home market and U.S. sales were made
at different LOTs, we examined whether
a LOT adjustment or a CEP offset may
be appropriate in this review. As we
found only one LOT in the home
market, it was not possible to make a
LOT adjustment to home market prices,
because such an adjustment is
dependent on our ability to identify a
pattern of consistent price differences
between the home market sales on
which NV is based and home market
sales at the LOT of the export
transaction. See 19 CFR
351.412(d)(1)(ii). Furthermore, we have
no other information that provides an
appropriate basis for determining a LOT
adjustment. Because the data available
do not form an appropriate basis for
making a LOT adjustment, and because
the NV LOT is at a more advanced stage
of distribution than the CEP LOT, we
have made a CEP offset to NV in
accordance with section 773(a)(7)(B) of
the Act.
United States Price
Section 772(a) of the Act defines EP
as ‘‘the price at which the subject
merchandise is first sold (or agreed to be
sold) before the date of importation by
the producer or exporter of the subject
merchandise outside of the United
States to an unaffiliated purchaser
* * * for exportation to the United
States, as adjusted under subsection (c)
of this section.’’ Section 772(b) of the
Act defines CEP as ‘‘the price at which
the subject merchandise is first sold (or
agreed to be sold) in the United States
before or after the date of importation by
or for the account of the producer or
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exporter of the subject merchandise or
by a seller affiliated with the producer
or exporter, to a purchaser not affiliated
with the producer or exporter, as
adjusted under subsections (c) and (d).’’
For purposes of this administrative
review, Kolon classified all of its U.S.
sales shipped directly from Korea to the
United States as EP sales. Kolon
reported all sales that were invoiced
through its U.S. subsidiary Kolon USA
as CEP transactions. For these
preliminary results, we have accepted
these classifications. The merchandise
shipped directly to unaffiliated
customers in the U.S. market was not
sold through an affiliated U.S. importer,
and we find no other grounds for
treating these transactions as CEP sales.
We, therefore, preliminarily determine
that these transactions were EP sales.
We have classified as CEP transactions
the merchandise that was invoiced
through Kolon USA because these sales
were ‘‘sold in the United States’’ within
the meaning of 772(b) of the Act.
Export Price
We calculated EP in accordance with
section 772(a) of the Act. We based EP
on packed prices to customers in the
United States. We made deductions for
billing adjustments and early payment
discounts. We also made adjustments
for the following movement expenses in
accordance with section 772(c)(2)(A) of
the Act: foreign inland freight, foreign
brokerage and handling charges, ocean
freight, marine insurance, U.S. inland
freight, U.S. brokerage and handling,
and U.S. customs duties. Finally, we
made an addition to U.S. price for duty
drawback in accordance with section
772(c)(1)(B) of the Act based upon
Kolon’s demonstration that it received
duty drawback on imported materials
used in the production of PET film. See
Kolon October 3, 2008, Section C
response at C–31.
Constructed Export Price
In accordance with section 772(b) of
the Act, for those sales to the first
unaffiliated purchaser that took place
after importation into the United States,
we calculated CEP. We based CEP on
packed prices to unaffiliated purchasers
in the United States. We made
adjustments for billing adjustments and
early payment discounts. We made
deductions for movement expenses in
accordance with section 772(c)(2)(A) of
the Act; these included foreign inland
freight, foreign brokerage and handling
charges, U.S. brokerage and handling,
ocean freight, marine insurance, U.S.
inland freight, and U.S. customs duties.
As further directed by section 772(d)(1)
of the Act, we deducted those selling
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expenses associated with economic
activity in the United States including
direct selling expenses (i.e.,
commissions, warranties, warehousing,
and U.S. credit expenses), inventory
carrying costs, and other U.S. indirect
selling expenses. We also made an
adjustment for profit in accordance with
section 772(d)(3) of the Act. Finally, we
made an addition to U.S. price for duty
drawback in accordance with section
772(c)(1)(B) of the Act based upon
Kolon’s demonstration that it received
duty drawback on imported materials
used in the production of PET film. See
Kolon October 3, 2008, Section C
response at C–31.
Normal Value
A. Selection of Comparison Market
To determine whether there is a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product is greater than five
percent of the aggregate volume of U.S.
sales), we compared Kolon’s volume of
home market sales of the foreign like
product to the volume of its U.S. sales
of the subject merchandise, in
accordance with section 773(a)(1)(B) of
the Act. Because Kolon’s aggregate
volume of home market sales of the
foreign like product was greater than
five percent of its aggregate volume of
U.S. sales for subject merchandise, we
determined the home market was viable.
See Kolon’s September 10, 2008,
questionnaire response at Appendix A–
1.
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B. Cost of Production Analysis
Pursuant to 773(b)(2)(A)(ii) of the Act,
because the Department had disregarded
certain of Kolon’s sales in the Final
Results of CC Review (the most recently
completed review in which Kolon
participated), the Department had
reasonable grounds to believe or suspect
that Kolon made home market sales at
prices below Kolon’s costs of
production (COP) in this review. As a
result, the Department was directed
under section 773(b) of the Act to
determine whether Kolon made home
market sales during the POR at prices
below its COP.
In accordance with section 773(b)(3)
of the Act, we calculated COP based on
the sum of Kolon’s cost of materials and
fabrication for the foreign like product,
plus amounts for selling, general, and
administrative expenses (SG&A),
interest expenses, and home market
packing costs. We relied on the COP
information provided by Kolon.
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To determine whether Kolon’s home
market sales had been made at prices
below the COP, we computed weightedaverage COPs during the POR, and
compared the weighted-average COP
figures to home market sales prices of
the foreign like product as required
under section 773(b) of the Act. On a
product-specific basis, we compared the
COP to the home market prices net of
billing adjustments, discounts and
rebates, any applicable movement
charges, selling expenses, and packing
expenses.
In determining whether to disregard
home market sales made at prices below
the COP, we examined, in accordance
with sections 773(b)(1)(A) and (B) of the
Act, whether, within an extended
period of time, such sales were made in
substantial quantities, and whether such
sales were made at prices which did not
permit the recovery of all costs within
a reasonable period of time in the
normal course of trade. Where less than
20 percent of the respondent’s home
market sales of a given model were at
prices below the COP, we did not
disregard any below-cost sales of that
model because we determined that the
below-cost sales were not made within
an extended period of time and in
‘‘substantial quantities.’’ See section
773(b)(2)(c) of the Act. Where 20
percent or more of the respondent’s
home market sales of a given model
were at prices less than the COP, we
disregarded the below-cost sales
because: (1) They were made within an
extended period of time in ‘‘substantial
quantities,’’ in accordance with sections
773(b)(2)(B) and (C) of the Act; and (2)
based on our comparison of prices to the
weighted-average COPs for the POR,
they were at prices which would not
permit the recovery of all costs within
a reasonable period of time, in
accordance with section 773(b)(2)(D) of
the Act.
Our cost test for Kolon revealed that,
for home market sales of certain models,
less than 20 percent of the sales of those
models were at prices below the COP.
We therefore retained all such sales in
our analysis and used them as the basis
for determining NV. Our cost test also
indicated that for home market sales of
other models, more than 20 percent
were sold at prices below the COP
within an extended period of time and
were at prices which would not permit
the recovery of all costs within a
reasonable period of time. Thus, in
accordance with section 773(b)(1) of the
Act, we excluded these below-cost sales
from our analysis and used the
remaining above-cost sales as the basis
for determining NV.
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C. Constructed Value
In accordance with section 773(e) of
the Act, we calculated CV based on the
sum of Kolon’s material and fabrication
costs, SG&A expenses, profit, and U.S.
packing costs. We calculated the cost of
materials for CV as described above in
the ‘‘Cost of Production Analysis’’
section of this notice. In accordance
with section 773(e)(2)(A) of the Act, we
based SG&A expenses and profit on the
amounts incurred and realized by the
respondent in connection with the
production and sale of the foreign like
product in the ordinary course of trade,
for consumption in the foreign country.
D. Price-to-Price Comparisons
We calculated NV based on prices to
unaffiliated customers in Korea. We
used Kolon’s adjustments and
deductions as reported. We made
deductions, where appropriate, for
foreign inland freight pursuant to
section 773(a)(6)(B) of the Act. In
addition, for comparisons involving
similar merchandise, we made
adjustments for differences in cost
attributable to differences in physical
characteristics of the merchandise
compared pursuant to section
773(a)(6)(C)(ii) of the Act and 19 CFR
351.411. We also made adjustments for
differences in circumstances of sale
(COS) in accordance with section
773(a)(6)(C)(iii) of the Act and 19 CFR
351.410. We made COS adjustments for
imputed credit expenses. As noted
above in the ‘‘Level of Trade’’ section of
this notice, we also made an adjustment
for the CEP offset in accordance with
section 773(a)(7)(B) of the Act. Finally,
we deducted home market packing costs
and added U.S. packing costs in
accordance with sections 773(a)(6)(A)
and (B) of the Act.
E. Price-to-CV Comparisons
If we were unable to find a home
market match of such or similar
merchandise, in accordance with
section 773(a)(4) of the Act, we based
NV on CV. Where appropriate, we made
adjustments to CV in accordance with
section 773(a)(8) of the Act.
Currency Conversion
We made currency conversions into
U.S. dollars based on the exchange rates
in effect on the dates of the U.S. sales,
as certified by the Federal Reserve Bank,
in accordance with section 773A(a) of
the Act.
Preliminary Results of Review
We preliminarily determine the
following weighted-average dumping
margin exists for the period October 2,
2007 through May 31, 2008:
E:\FR\FM\06JYN1.SGM
06JYN1
31926
Federal Register / Vol. 74, No. 127 / Monday, July 6, 2009 / Notices
Manufacturer/exporter
Kolon Industries, Inc. ...
Weighted average
margin
(percentage)
0.15% (de minimis)
mstockstill on PROD1PC66 with NOTICES
The Department will disclose to
parties the calculations performed in
connection with these preliminary
results within five days of the date of
publication of this notice. See 19 CFR
351.224(b). Pursuant to 19 CFR 351.309,
interested parties may submit case briefs
not later than 30 days after the
publication of this notice. Rebuttal
briefs, limited to issues raised in the
case briefs, may be filed not later than
35 days after the date of publication of
this notice. Parties who submit case
briefs or rebuttal briefs in this
proceeding are requested to submit with
each argument: (1) A statement of the
issue, (2) a brief summary of the
argument; and (3) a table of authorities.
Interested parties who wish to request
a hearing or to participate if one is
requested must submit a written request
to the Assistant Secretary for Import
Administration, Room 1870, within 30
days of the date of publication of this
notice. Requests should contain: (1) The
party’s name, address and telephone
number; (2) the number of participants;
and (3) a list of the issues to be
discussed. See 19 CFR 351.310(c). Issues
raised in the hearing will be limited to
those raised in the case briefs. The
Department will issue the final results
of this administrative review, including
the results of its analysis of issues raised
in any written briefs, not later than 120
days after the publication of this notice,
pursuant to section 751(a)(3)(A) of the
Act.
Assessment
Pursuant to 19 CFR 351.212(b), the
Department will determine, and CBP
shall assess, antidumping duties on all
appropriate entries. The Department
will issue appropriate assessment
instructions directly to CBP 15 days
after the date of publication of the final
results of this review. For assessment
purposes, where possible, we calculated
importer-specific ad valorem
assessment rates for PET film from
Korea based on the ratio of the total
amount of the dumping duties
calculated for the examined sales to the
total entered value of those same sales.
See 19 CFR 351.212(b). We will instruct
CBP to assess antidumping duties on all
appropriate entries covered by this
review if any assessment rate calculated
in the final results of this review is
above de minimis. The final results of
this review shall be the basis for the
assessment of antidumping duties on
VerDate Nov<24>2008
17:22 Jul 02, 2009
Jkt 217001
entries of merchandise covered by the
final results of these reviews and for
future deposits of estimated duties,
where applicable.
DEPARTMENT OF COMMERCE
Cash Deposit Requirements
RIN 0648–XO84
The following cash deposit
requirements will be effective for all
shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
this administrative review, as provided
for by section 751(a)(2)(C) of the Act: (1)
The cash deposit rate for Kolon will be
the rate established in the final results
of review (except, if the rate is zero or
de minimis, i.e., less than 0.5 percent,
no cash deposit will be required for
Kolon); (2) if the exporter is not a firm
covered in this review or the less than
fair value (LTFV) investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the merchandise; and (3) if neither the
exporter nor the manufacturer is a firm
covered in this or any previous review,
the cash deposit rate will be the allothers rate of 4.82 percent from the
LTFV investigation. See Antidumping
Duty Order and Amendment to Final
Determination of Sales at Less Than
Fair Value: Polyethylene Terephthalate
Film, Sheet, and Strip from the Republic
of Korea, 56 FR 25669 (June 5, 1991).
Small Takes of Marine Mammals
Incidental to Specified Activities;
Taking Marine Mammals Incidental to
Construction and Operation of a
Liquefied Natural Gas Facility off
Massachusetts
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f) to file a certificate regarding
the reimbursement of antidumping
duties prior to liquidation of the
relevant entries during this review
period. Failure to comply with this
requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties. These
preliminary results of administrative
review are issued and this notice is
published in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: June 30, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for
Antidumping and Countervailing Duty
Operations.
[FR Doc. E9–15961 Filed 7–2–09; 8:45 am]
BILLING CODE 3510–DS–P
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
National Oceanic and Atmospheric
Administration
AGENCY: National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice; issuance of an
incidental harassment authorization.
SUMMARY: In accordance with the
Marine Mammal Protection Act
(MMPA) regulations, notification is
hereby given that NMFS has issued an
incidental harassment authorization
(IHA) to Neptune LNG, L.L.C. (Neptune)
to take, by harassment, small numbers
of several species of marine mammals
incidental to construction and
operations of an offshore liquefied
natural gas (LNG) facility in
Massachusetts Bay for a period of 1
year.
DATES: Effective July 1, 2009, through
June 30, 2010.
ADDRESSES: A copy of the IHA and
application are available by writing to P.
Michael Payne, Chief, Permits,
Conservation, and Education Division,
Office of Protected Resources, National
Marine Fisheries Service, 1315 EastWest Highway, Silver Spring, MD
20910–3225 or by telephoning the
contact listed here. A copy of the
application containing a list of
references used in this document may
be obtained by writing to this address,
by telephoning the contact listed here
(FOR FURTHER INFORMATION CONTACT) or
online at: https://www.nmfs.noaa.gov/pr/
permits/incidental.htm#applications.
Documents cited in this notice may be
viewed, by appointment, during regular
business hours, at the aforementioned
address.
The Maritime Administration
(MARAD) and U.S. Coast Guard (USCG)
Final Environmental Impact Statement
(Final EIS) on the Neptune LNG
Deepwater Port License Application is
available for viewing at https://
www.regulations.gov by entering the
search words ‘‘Neptune LNG.’’
FOR FURTHER INFORMATION CONTACT:
Candace Nachman, Office of Protected
Resources, NMFS, (301) 713–2289 ext.
156.
E:\FR\FM\06JYN1.SGM
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Agencies
[Federal Register Volume 74, Number 127 (Monday, July 6, 2009)]
[Notices]
[Pages 31922-31926]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-15961]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-807]
Polyethylene Terephthalate Film, Sheet, and Strip From the
Republic of Korea: Preliminary Results of Antidumping Duty
Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce is conducting an administrative
review of the antidumping duty order on polyethylene terephthalate
film, sheet and strip (PET film) from the Republic of Korea (Korea).
This review covers one company, Kolon Industries Inc. (Kolon) and the
period October 2, 2007, through May 31, 2008. We preliminarily
determine that Kolon has not made sales below normal value (NV). If
these preliminary results are adopted in the final results of review,
we will instruct U.S. Customs and Border Protection (CBP) to assess
antidumping duties on all appropriate entries.
Interested parties are invited to comment on these preliminary
results. We will issue the final results no later than 120 days from
the date of publication of this notice.
DATES: Effective Date: July 6, 2009.
FOR FURTHER INFORMATION CONTACT: Michael J. Heaney or Robert James, 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-
4475 or (202) 482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 9, 2008, the Department published in the Federal Register a
notice of ``Opportunity to Request Administrative Review'' of the
antidumping duty order on PET film from Korea. See Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation;
Opportunity to Request Administrative Review, 73 FR 32557 (June 9,
2008).
In accordance with Section 751 (a)(1) of the Tariff Act, as amended
(the Act) and 19 CFR 351.213(b)(2), on June 30, 2008, Kolon requested
an administrative review of the antidumping duty order on PET film from
Korea. On June 30, 2008, DuPont Teijin Films (DuPont), Mitsubishi
Polyester Film, Inc. (Mitsubishi), and Toray Plastics America Inc.
(Toray) (collectively ``Petitioners''), also requested a review of
Kolon.
On July 30, 2008, the Department initiated an administrative review
for Kolon covering the period October 2, 2007, through May 31, 2008.
See Initiation of Antidumping and Countervailing Duty Administrative
Reviews, Request for Revocation in Part, and Deferral of Administrative
Review, 73 FR 44220 (July 30, 2008).
On June 30, 2008, we issued our antidumping questionnaire to Kolon.
We received Kolon's response to our questionnaire on September 10, 2008
(Section A) and October 3, 2008 (Sections B, C, and D). During the
period December 18, 2008, through April 1, 2009, we issued supplemental
questionnaires to Kolon. We received responses to those questionnaires
from January 23, 2009, through April 24, 2009.
On February 23, 2009, we extended the deadline for the preliminary
results of this review until no later than June 30, 2009. See
Polyethylene Terephthalate Film, Sheet and Strip from the Republic of
Korea: Extension of Time Limit for the Preliminary Results of the 2007/
2008 Administrative Review, 74 FR 8054 (February 23, 2009).
On May 26, 2009, Petitioners submitted comments concerning the
profitability of Kolon's home market and U.S. sales and the model match
methodology that should be employed in this review. On June 9, 2009,
Kolon submitted rebuttal comments to Petitioner's May 26, 2009 letter.
See the ``Product Comparisons'' section of this Notice, infra, for a
discussion of the Model match methodology that we have employed in this
review.
Scope of the Order
Imports covered by this review are shipments of all gauges of raw,
pretreated, or primed polyethylene terephthalate film, sheet, and
strip, whether extruded or coextruded. The films excluded from this
review are metallized films and other finished films that have had at
least one of their surfaces modified by the application of a
performance enhancing resinous or inorganic layer of more than 0.00001
inches (0.254 micrometers) thick.
PET film is currently classifiable under Harmonized Tariff Schedule
(HTS) subheading 3920.62.00. The HTS subheading is provided for
convenience and for customs purposes. The written description remains
dispositive as to the scope of the product coverage.
Period of Review
On August 20, 2008, Kolon requested that the Department amend the
time frame covered by the review to the period April 3, 2008, to May
31, 2008. See Kolon's August 20, 2008, letter. Kolon noted that April
3, 2008, is the date that the Department published its final results of
the changed circumstances review in which Kolon was formally reinstated
within the order. See Polyethylene Terephthalate Film, Sheet, and Strip
from Korea: Final Results of Antidumping Duty Changed Circumstances
Review and Reinstatement of the Antidumping Duty Order, 73 FR 18259
(April 3, 2008) (Final Results of CC Review). Kolon asserted the
Department has no basis to review transactions prior to the date Kolon
was formally reinstated into the order.
On August 27, 2008, Petitioners filed a rebuttal to Kolon's August
20, 2008 letter. See Petitioners' August 27, 2008, letter. Petitioners
noted the Department ordered CBP to suspend liquidation of Kolon's
entries on October 2, 2007, which is the date the Department issued its
Preliminary Results of the Changed Circumstances Review. See
Polyethylene Terephthalate Film, Sheet, and Strip from the Republic of
Korea: Preliminary Results of Changed Circumstances Review and Intent
to Reinstate Kolon Industries, Inc. in the Antidumping Duty Order, 72
FR 56048 (October 2, 2007). Petitioners assert that because the
Department ordered suspension of liquidation with respect to Kolon's
entries effective October 2, 2007, that date is the proper date for the
beginning of the review period.
[[Page 31923]]
We have preliminarily defined the period covered by this review as
October 2, 2007, through May 31, 2008. In our Preliminary Results of CC
Review, we indicated the effective date for suspension of liquidation
would be the date of the publication of the Preliminary Results of CC
Review. See Preliminary Results of CC Review at 56048. Furthermore,
Kolon was aware of the possibility of reinstatement into the order at
the initiation of the changed circumstances review, and the potential
imposition of antidumping duties if the Department found that Kolon had
resumed dumping. See Initiation of Antidumping Duty Changed
Circumstances Review: Polyethylene Terpthalate Film, Sheet, and Strip
from Korea, 72 FR 527 (January 5, 2007). In order to provide for the
imposition of duties at a later point, the Department suspended
liquidation of entries on the date of publication of the Preliminary
Results of CC Review. This is consistent with our practice in changed
circumstances reviews. See, e.g., Sebacic Acid from the People's
Republic of China: Final Results of Antidumping Duty Changed
Circumstances Review and Reinstatement of the Antidumping Order, 70 FR
16218 (March 30, 2005) and Certain Hot-Rolled Carbon Steel Flat
Products from Thailand: Final Results of Antidumping Duty Changed
Circumstances Review and Reinstatement in the Antidumping Order, 74 FR
22885 (May 15, 2009).
In addition, 19 CFR 351.222(b)(2)(i) states that in considering
whether to revoke an antidumping order, the Secretary will, inter alia,
consider whether the respondent has agreed in writing to an immediate
reinstatement into the order if the Secretary concludes that the
respondent sold merchandise at less than fair value. In determining to
revoke the order as to Kolon, the Department noted that Kolon provided
a statement agreeing to the immediate reinstatement of the order if the
Department determines that Kolon sold merchandise at less than fair
value. See Polyethylene Terpthalate Film, Sheet, and Strip from the
Republic of Korea; Final Results of Antidumping Duty Administrative
Review and Notice of Revocation in Part, 61 FR 58374, 58375 (November
14, 1996). Therefore, Kolon was aware of the potential for
``immediate'' reinstatement in the order if dumping resumed and the
necessity of suspending liquidation in order to impose duties at a
later point. The inclusion in the period of review of Kolon's U.S.
sales made beginning October 2, 2007, through May 31, 2008, is
therefore reasonable. This is also in keeping with our practice in
other contexts, in which the period of review covers entries, exports
and sales during the period beginning with the date of suspension of
liquidation. See 19 CFR 351.213(e)(1)(ii). Based on the foregoing, we
have included in this review all of Kolon's U.S. sales made during the
period October 2, 2007, through May 31, 2008.
Comparisons to Normal Value
To determine whether sales of PET film from Korea to the United
States were made at less than NV, we compared Kolon's constructed
export price (CEP) or export price (EP) sales made in the United States
to unaffiliated purchasers, to NV, as described in the ``United States
Price'' and ``Normal Value'' sections of this notice, below. In
accordance with section 777A(d)(2) of the Act, we compared the CEP and
EP of individual transactions to monthly weighted-average NVs.
In accordance with section 771(16) of the Act we considered all
products produced by Kolon covered by the description in the ``Scope of
the Order'' section, above, and sold in the home market during the POR,
to be foreign like products for purposes of determining appropriate
product comparisons to U.S. sales. We first attempted to compare
contemporaneous U.S. and comparison-market sales of products that are
identical with respect to the following characteristics: (1)
Specification; (2) thickness; (3) surface treatment; and (4) grade.
Consistent with the methodology employed in Final Results of CC Review,
and in the recent investigation of PET film from Thailand, we used the
actual thicknesses of the film rather than a range of thicknesses for
product comparison purposes. See Final Results of CC Review and
Accompanying Issues and Decision Memorandum at Comment 7. See also,
Notice of Preliminary Determination of Sales at Not Less Than Fair
Value: Polyethylene Terephthalate Film, Sheet, and Strip from Thailand
73 FR 24565, 24567 (May 5, 2008) (unchanged in final determination).
Where we were unable to compare sales of identical merchandise, we
compared U.S. sales to home market sales of the most similar
merchandise based on the above characteristics. Where there were no
sales of the foreign like product of the identical merchandise in the
ordinary course of trade in the home market to compare to a U.S. sale,
we compared the price of the U.S. sale to constructed value (CV).
Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we base NV on sales made in the home market at the same
level of trade (LOT) as the CEP or EP sales in the U.S. market. The NV
LOT is defined as the starting-price sales in the home market or, when
NV is based CV, as the sales from which selling, general, and
administrative (SG&A) expenses and profit are derived. See 19 CFR
351.412(b)(2)(c). The EP LOT is defined as the starting price in the
United States to the unaffiliated U.S. customer. With respect to CEP
transactions in the U.S. market, the CEP LOT is defined as the level of
the constructed sale from the exporter to the importer. See
773(a)(7)(A) of the Act.
To determine whether NV sales are at a different LOT than CEP
sales, we examine stages in the marketing process and selling functions
along the chain of distribution between the producer and the
unaffiliated customer. See 19 CFR 351.412(c)(2). If the home-market
sales are at different LOTs, and the difference affects price
comparability, as manifested in a pattern of consistent price
differences between the sales on which NV is based and comparison-
market sales at the LOT of the export transaction, we make a LOT
adjustment under section 773(a)(7)(A) of the Act. For CEP sales, if the
NV level is more remote from the factory than the CEP level and there
is no basis for determining whether the difference in the levels
between NV and CEP affects price comparability, we adjust NV under
section 773(a)(7)(B) of the Act (the CEP offset provision). See, e.g.,
Preliminary CC Review at 56050; see also Certain Hot-Rolled Flat-Rolled
Carbon Quality Steel Products from Brazil; Preliminary Results of
Antidumping Duty Administrative Review, 70 FR 17406, 17410 (April 6,
2005); unchanged in Notice of Final Results of Antidumping Duty
Administrative Review of Certain Hot-Rolled Flat-Rolled Carbon Quality
Steel Products from Brazil, 70 FR 58683 (October 7, 2005). For CEP
sales, we consider only the selling activities reflected in the price
after the deduction of expenses and CEP profit under section 772(d) of
the Tariff Act. See Micron Technology, Inc. v. United States, 243 F.3d
1301, 1314-1315 (Fed. Cir. 2001). We expect that if the LOTs claimed by
the respondent are the same, the functions and activities of the seller
should be similar. Conversely, if a party claims that the LOTs are
different for different groups of sales, the functions and activities
of the seller should be
[[Page 31924]]
dissimilar. See Porcelain-on-Steel Cookware from Mexico: Final Results
of Administrative Review, 65 FR 30068 (May 10, 2000) and accompanying
Issues and Decisions Memorandum at Comment 6.
We obtained information from Kolon regarding the marketing stages
involved in making its reported foreign market and U.S. sales to
unaffiliated customers. Kolon provided a description of all selling
activities performed, along with a flowchart and tables comparing the
levels of trade among each channel of distribution and customer
category for both markets. See Kolon's September 10, 2008,
questionnaire response at A-12.
For the home market, Kolon identified two channels of distribution
described as follows: (1) Direct shipments (i.e., products produced to
order); and (2) warehouse shipments from inventory. Id. Within each of
these two channels of distribution, Kolon made sales to unaffiliated
customers. Id. We reviewed the level at which Kolon performed each of
these selling functions with respect to each claimed channel of
distribution and customer category. For all of the activities listed
(which included sales forecasting, strategic and economic planning,
sales promotion, order processing, and technical assistance), the level
of performance for both direct shipments and warehouse shipments was
identical across all types of customers. Based on our analysis of all
of Kolon's home market selling functions, we find all home market sales
were made at the same LOT, the NV LOT. We also found that Kolon
provided a similar level of selling functions on all of its EP sales,
and that the level of these EP selling functions was comparable to the
level of selling functions that Kolon performed on its home market
sales. Id. Based on the foregoing, we determine that there is one level
of trade for Kolon's EP sales and that the EP LOT is comparable to the
home market LOT.
Kolon also indicated it made CEP sales through its U.S. affiliate,
Kolon USA. Id. We then compared the CEP LOT to the NV LOT. The CEP LOT
is based on the selling activities associated with the transaction
between Kolon and its affiliated importer, Kolon USA, whereas the NV
LOT is based on the selling activities associated with the transactions
between Kolon and unaffiliated customers in the home market. Our
analysis indicates the selling functions performed for unaffiliated
home market customers are either performed at a higher degree of
intensity or are greater in number than the selling functions performed
for Kolon USA. For example, in comparing Kolon's selling activities, we
find there are more functions performed in the home market which are
not a part of CEP transactions (e.g., sales promotion, inventory
maintenance, sales and marketing support). For selling activities
performed for both home market sales and CEP sales (e.g., processing
customer orders, freight and delivery arrangements), we find Kolon
actually performed each activity at a higher level of intensity in the
home market. We note that CEP sales from Kolon to Kolon USA generally
occur at the beginning of the distribution chain, representing
essentially a logistical transfer of inventory that resembles ex-
factory sales. In contrast, all sales in the home market occur closer
to the end of the distribution chain and involve smaller volumes and
more customer interaction which, in turn, require the performance of
more selling functions. Id. Based on the foregoing, we conclude that
the NV LOT is at a more advanced stage than the CEP LOT. Because we
found the home market and U.S. sales were made at different LOTs, we
examined whether a LOT adjustment or a CEP offset may be appropriate in
this review. As we found only one LOT in the home market, it was not
possible to make a LOT adjustment to home market prices, because such
an adjustment is dependent on our ability to identify a pattern of
consistent price differences between the home market sales on which NV
is based and home market sales at the LOT of the export transaction.
See 19 CFR 351.412(d)(1)(ii). Furthermore, we have no other information
that provides an appropriate basis for determining a LOT adjustment.
Because the data available do not form an appropriate basis for making
a LOT adjustment, and because the NV LOT is at a more advanced stage of
distribution than the CEP LOT, we have made a CEP offset to NV in
accordance with section 773(a)(7)(B) of the Act.
United States Price
Section 772(a) of the Act defines EP as ``the price at which the
subject merchandise is first sold (or agreed to be sold) before the
date of importation by the producer or exporter of the subject
merchandise outside of the United States to an unaffiliated purchaser *
* * for exportation to the United States, as adjusted under subsection
(c) of this section.'' Section 772(b) of the Act defines CEP as ``the
price at which the subject merchandise is first sold (or agreed to be
sold) in the United States before or after the date of importation by
or for the account of the producer or exporter of the subject
merchandise or by a seller affiliated with the producer or exporter, to
a purchaser not affiliated with the producer or exporter, as adjusted
under subsections (c) and (d).'' For purposes of this administrative
review, Kolon classified all of its U.S. sales shipped directly from
Korea to the United States as EP sales. Kolon reported all sales that
were invoiced through its U.S. subsidiary Kolon USA as CEP
transactions. For these preliminary results, we have accepted these
classifications. The merchandise shipped directly to unaffiliated
customers in the U.S. market was not sold through an affiliated U.S.
importer, and we find no other grounds for treating these transactions
as CEP sales. We, therefore, preliminarily determine that these
transactions were EP sales. We have classified as CEP transactions the
merchandise that was invoiced through Kolon USA because these sales
were ``sold in the United States'' within the meaning of 772(b) of the
Act.
Export Price
We calculated EP in accordance with section 772(a) of the Act. We
based EP on packed prices to customers in the United States. We made
deductions for billing adjustments and early payment discounts. We also
made adjustments for the following movement expenses in accordance with
section 772(c)(2)(A) of the Act: foreign inland freight, foreign
brokerage and handling charges, ocean freight, marine insurance, U.S.
inland freight, U.S. brokerage and handling, and U.S. customs duties.
Finally, we made an addition to U.S. price for duty drawback in
accordance with section 772(c)(1)(B) of the Act based upon Kolon's
demonstration that it received duty drawback on imported materials used
in the production of PET film. See Kolon October 3, 2008, Section C
response at C-31.
Constructed Export Price
In accordance with section 772(b) of the Act, for those sales to
the first unaffiliated purchaser that took place after importation into
the United States, we calculated CEP. We based CEP on packed prices to
unaffiliated purchasers in the United States. We made adjustments for
billing adjustments and early payment discounts. We made deductions for
movement expenses in accordance with section 772(c)(2)(A) of the Act;
these included foreign inland freight, foreign brokerage and handling
charges, U.S. brokerage and handling, ocean freight, marine insurance,
U.S. inland freight, and U.S. customs duties. As further directed by
section 772(d)(1) of the Act, we deducted those selling
[[Page 31925]]
expenses associated with economic activity in the United States
including direct selling expenses (i.e., commissions, warranties,
warehousing, and U.S. credit expenses), inventory carrying costs, and
other U.S. indirect selling expenses. We also made an adjustment for
profit in accordance with section 772(d)(3) of the Act. Finally, we
made an addition to U.S. price for duty drawback in accordance with
section 772(c)(1)(B) of the Act based upon Kolon's demonstration that
it received duty drawback on imported materials used in the production
of PET film. See Kolon October 3, 2008, Section C response at C-31.
Normal Value
A. Selection of Comparison Market
To determine whether there is a sufficient volume of sales in the
home market to serve as a viable basis for calculating NV (i.e., the
aggregate volume of home market sales of the foreign like product is
greater than five percent of the aggregate volume of U.S. sales), we
compared Kolon's volume of home market sales of the foreign like
product to the volume of its U.S. sales of the subject merchandise, in
accordance with section 773(a)(1)(B) of the Act. Because Kolon's
aggregate volume of home market sales of the foreign like product was
greater than five percent of its aggregate volume of U.S. sales for
subject merchandise, we determined the home market was viable. See
Kolon's September 10, 2008, questionnaire response at Appendix A-1.
B. Cost of Production Analysis
Pursuant to 773(b)(2)(A)(ii) of the Act, because the Department had
disregarded certain of Kolon's sales in the Final Results of CC Review
(the most recently completed review in which Kolon participated), the
Department had reasonable grounds to believe or suspect that Kolon made
home market sales at prices below Kolon's costs of production (COP) in
this review. As a result, the Department was directed under section
773(b) of the Act to determine whether Kolon made home market sales
during the POR at prices below its COP.
In accordance with section 773(b)(3) of the Act, we calculated COP
based on the sum of Kolon's cost of materials and fabrication for the
foreign like product, plus amounts for selling, general, and
administrative expenses (SG&A), interest expenses, and home market
packing costs. We relied on the COP information provided by Kolon.
To determine whether Kolon's home market sales had been made at
prices below the COP, we computed weighted-average COPs during the POR,
and compared the weighted-average COP figures to home market sales
prices of the foreign like product as required under section 773(b) of
the Act. On a product-specific basis, we compared the COP to the home
market prices net of billing adjustments, discounts and rebates, any
applicable movement charges, selling expenses, and packing expenses.
In determining whether to disregard home market sales made at
prices below the COP, we examined, in accordance with sections
773(b)(1)(A) and (B) of the Act, whether, within an extended period of
time, such sales were made in substantial quantities, and whether such
sales were made at prices which did not permit the recovery of all
costs within a reasonable period of time in the normal course of trade.
Where less than 20 percent of the respondent's home market sales of a
given model were at prices below the COP, we did not disregard any
below-cost sales of that model because we determined that the below-
cost sales were not made within an extended period of time and in
``substantial quantities.'' See section 773(b)(2)(c) of the Act. Where
20 percent or more of the respondent's home market sales of a given
model were at prices less than the COP, we disregarded the below-cost
sales because: (1) They were made within an extended period of time in
``substantial quantities,'' in accordance with sections 773(b)(2)(B)
and (C) of the Act; and (2) based on our comparison of prices to the
weighted-average COPs for the POR, they were at prices which would not
permit the recovery of all costs within a reasonable period of time, in
accordance with section 773(b)(2)(D) of the Act.
Our cost test for Kolon revealed that, for home market sales of
certain models, less than 20 percent of the sales of those models were
at prices below the COP. We therefore retained all such sales in our
analysis and used them as the basis for determining NV. Our cost test
also indicated that for home market sales of other models, more than 20
percent were sold at prices below the COP within an extended period of
time and were at prices which would not permit the recovery of all
costs within a reasonable period of time. Thus, in accordance with
section 773(b)(1) of the Act, we excluded these below-cost sales from
our analysis and used the remaining above-cost sales as the basis for
determining NV.
C. Constructed Value
In accordance with section 773(e) of the Act, we calculated CV
based on the sum of Kolon's material and fabrication costs, SG&A
expenses, profit, and U.S. packing costs. We calculated the cost of
materials for CV as described above in the ``Cost of Production
Analysis'' section of this notice. In accordance with section
773(e)(2)(A) of the Act, we based SG&A expenses and profit on the
amounts incurred and realized by the respondent in connection with the
production and sale of the foreign like product in the ordinary course
of trade, for consumption in the foreign country.
D. Price-to-Price Comparisons
We calculated NV based on prices to unaffiliated customers in
Korea. We used Kolon's adjustments and deductions as reported. We made
deductions, where appropriate, for foreign inland freight pursuant to
section 773(a)(6)(B) of the Act. In addition, for comparisons involving
similar merchandise, we made adjustments for differences in cost
attributable to differences in physical characteristics of the
merchandise compared pursuant to section 773(a)(6)(C)(ii) of the Act
and 19 CFR 351.411. We also made adjustments for differences in
circumstances of sale (COS) in accordance with section
773(a)(6)(C)(iii) of the Act and 19 CFR 351.410. We made COS
adjustments for imputed credit expenses. As noted above in the ``Level
of Trade'' section of this notice, we also made an adjustment for the
CEP offset in accordance with section 773(a)(7)(B) of the Act. Finally,
we deducted home market packing costs and added U.S. packing costs in
accordance with sections 773(a)(6)(A) and (B) of the Act.
E. Price-to-CV Comparisons
If we were unable to find a home market match of such or similar
merchandise, in accordance with section 773(a)(4) of the Act, we based
NV on CV. Where appropriate, we made adjustments to CV in accordance
with section 773(a)(8) of the Act.
Currency Conversion
We made currency conversions into U.S. dollars based on the
exchange rates in effect on the dates of the U.S. sales, as certified
by the Federal Reserve Bank, in accordance with section 773A(a) of the
Act.
Preliminary Results of Review
We preliminarily determine the following weighted-average dumping
margin exists for the period October 2, 2007 through May 31, 2008:
[[Page 31926]]
------------------------------------------------------------------------
Weighted average margin
Manufacturer/exporter (percentage)
------------------------------------------------------------------------
Kolon Industries, Inc................ 0.15% (de minimis)
------------------------------------------------------------------------
The Department will disclose to parties the calculations performed
in connection with these preliminary results within five days of the
date of publication of this notice. See 19 CFR 351.224(b). Pursuant to
19 CFR 351.309, interested parties may submit case briefs not later
than 30 days after the publication of this notice. Rebuttal briefs,
limited to issues raised in the case briefs, may be filed not later
than 35 days after the date of publication of this notice. Parties who
submit case briefs or rebuttal briefs in this proceeding are requested
to submit with each argument: (1) A statement of the issue, (2) a brief
summary of the argument; and (3) a table of authorities.
Interested parties who wish to request a hearing or to participate
if one is requested must submit a written request to the Assistant
Secretary for Import Administration, Room 1870, within 30 days of the
date of publication of this notice. Requests should contain: (1) The
party's name, address and telephone number; (2) the number of
participants; and (3) a list of the issues to be discussed. See 19 CFR
351.310(c). Issues raised in the hearing will be limited to those
raised in the case briefs. The Department will issue the final results
of this administrative review, including the results of its analysis of
issues raised in any written briefs, not later than 120 days after the
publication of this notice, pursuant to section 751(a)(3)(A) of the
Act.
Assessment
Pursuant to 19 CFR 351.212(b), the Department will determine, and
CBP shall assess, antidumping duties on all appropriate entries. The
Department will issue appropriate assessment instructions directly to
CBP 15 days after the date of publication of the final results of this
review. For assessment purposes, where possible, we calculated
importer-specific ad valorem assessment rates for PET film from Korea
based on the ratio of the total amount of the dumping duties calculated
for the examined sales to the total entered value of those same sales.
See 19 CFR 351.212(b). We will instruct CBP to assess antidumping
duties on all appropriate entries covered by this review if any
assessment rate calculated in the final results of this review is above
de minimis. The final results of this review shall be the basis for the
assessment of antidumping duties on entries of merchandise covered by
the final results of these reviews and for future deposits of estimated
duties, where applicable.
Cash Deposit Requirements
The following cash deposit requirements will be effective for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided for by section
751(a)(2)(C) of the Act: (1) The cash deposit rate for Kolon will be
the rate established in the final results of review (except, if the
rate is zero or de minimis, i.e., less than 0.5 percent, no cash
deposit will be required for Kolon); (2) if the exporter is not a firm
covered in this review or the less than fair value (LTFV)
investigation, but the manufacturer is, the cash deposit rate will be
the rate established for the most recent period for the manufacturer of
the merchandise; and (3) if neither the exporter nor the manufacturer
is a firm covered in this or any previous review, the cash deposit rate
will be the all-others rate of 4.82 percent from the LTFV
investigation. See Antidumping Duty Order and Amendment to Final
Determination of Sales at Less Than Fair Value: Polyethylene
Terephthalate Film, Sheet, and Strip from the Republic of Korea, 56 FR
25669 (June 5, 1991).
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties. These preliminary results of
administrative review are issued and this notice is published in
accordance with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: June 30, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for Antidumping and Countervailing
Duty Operations.
[FR Doc. E9-15961 Filed 7-2-09; 8:45 am]
BILLING CODE 3510-DS-P