Narrow Woven Ribbons with Woven Selvedge from the People's Republic of China and Taiwan: Initiation of Antidumping Duty Investigations, 39291-39298 [E9-18732]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 74, Number 150 (Thursday, August 6, 2009)]
[Notices]
[Pages 39291-39298]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-18732]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-952, A-583-844)]


Narrow Woven Ribbons with Woven Selvedge from the People's 
Republic of China and Taiwan: Initiation of Antidumping Duty 
Investigations

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

EFFECTIVE DATE: August 6, 2009.

FOR FURTHER INFORMATION CONTACT: Elizabeth Eastwood at (202) 482-3874 
or Miriam Eqab at (202) 482-3693 (Taiwan), AD/CVD Operations, Office 2; 
Maisha Cryor at (202) 482-5831 or Zhulieta Willbrand at (202) 482-3147 
(the People's Republic of China (the ``PRC'')), AD/CVD Operations, 
Office 4, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petitions

    On July 9, 2009, the Department of Commerce (the ``Department'') 
received petitions concerning imports of narrow woven ribbons with 
woven selvedge (``narrow woven ribbon'') from the PRC and Taiwan filed 
in proper form by Berwick Offray LLC and its wholly-owned subsidiary 
Lion Ribbon Company, Inc. (collectively, the ``Petitioner''). See 
Petitions for the Imposition of Antidumping and Countervailing Duties 
on Narrow Woven Ribbons with Woven Selvedge from the People's Republic 
of China and Taiwan dated July 9, 2009 (the ``Petitions''). On July 14, 
2009, the Department contacted the Petitioner by telephone seeking 
additional information and clarification regarding the Petition. See 
Memo to the File from Matthew Glass, ``Scope Call with the 
Petitioner,'' dated July 14, 2009. On July 15, 2009, and July 22, 2009, 
the Department issued a request for additional information and 
clarification of certain areas of the Petitions. Also, on July 23, 
2009, the Department contacted the Petitioner by telephone seeking 
additional information and clarification

[[Page 39292]]

regarding the Petitions. See Memo to the File from Meredith A.W. 
Rutherford, ``General Issues Discussion with the Petitioner,'' dated 
July 23, 2009. Based on the Department's requests, the Petitioner filed 
additional information on July 21, 2009 (hereinafter, Supplement to the 
AD/CVD Petitions, dated July 21, 2009) and July 27, 2009 (hereinafter, 
Second Supplement to the AD/CVD Petitions, dated July 27, 2009). On 
July 28, 2009, the Department again contacted the Petitioner by 
telephone seeking additional information and clarification regarding 
certain general issues of the Petitions. See Memo to the File from 
Meredith A.W. Rutherford, ``Phone Call with the Petitioner,'' dated 
July 28, 2009, and Memo to the File from Elizabeth Eastwood, ``Scope 
Calls with the Petitioner,'' dated July 29, 2009. Based on the 
Department's requests, the Petitioner timely filed additional 
information pertaining to the Petition on July 29, 2009 (hereinafter, 
Third Supplement to the AD/CVD Petitions, dated July 29, 2009). The 
period of investigation (``POI'') for the PRC is January 1, 2009, 
through June 30, 2009. The POI for Taiwan is July 1, 2008, through June 
30, 2009. See 19 CFR 351.204(b)(1).
    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the ``Act''), the Petitioner alleges that imports of narrow 
woven ribbon from the PRC and Taiwan are being, or are likely to be, 
sold in the United States at less than fair value, within the meaning 
of section 731 of the Act, and that such imports are materially 
injuring, or threatening material injury to, an industry in the United 
States.
    The Department finds that the Petitioner filed the Petitions on 
behalf of the domestic industry because the Petitioner is an interested 
party as defined in section 771(9)(C) of the Act and has demonstrated 
sufficient industry support with respect to the antidumping duty 
investigations that the Petitioner is requesting that the Department 
initiate (see ``Determination of Industry Support for the Petitions'' 
section below).

Scope of Investigations

    The products covered by these investigations are narrow woven 
ribbons with woven selvedge from the PRC and Taiwan. For a full 
description of the scope of the investigations, please see the ``Scope 
of Investigations,'' in Appendix I of this notice.

Comments on Scope of Investigations

    During our review of the Petitions, we discussed the scope with the 
Petitioner to ensure that it is an accurate reflection of the products 
for which the domestic industry is seeking relief. Moreover, as 
discussed in the preamble to the regulations (Antidumping Duties; 
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)), 
we are setting aside a period for interested parties to raise issues 
regarding product coverage. The Department encourages all interested 
parties to submit such comments by August 18, 2009, twenty calendar 
days from the signature date of this notice. Comments should be 
addressed to Import Administration's APO/Dockets Unit, Room 1870, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230. The period of scope consultations is intended to 
provide the Department with ample opportunity to consider all comments 
and to consult with parties prior to the issuance of the preliminary 
determinations.

Comments on Product Characteristics for Antidumping Duty Questionnaires

    We are requesting comments from interested parties regarding the 
appropriate physical characteristics of narrow woven ribbon to be 
reported in response to the Department's antidumping questionnaires. 
This information will be used to identify the key physical 
characteristics of the subject merchandise in order to more accurately 
report the relevant factors and costs of production, as well as to 
develop appropriate product comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate listing of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as 1) general product 
characteristics and 2) the product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, while there may 
be some physical product characteristics utilized by manufacturers to 
describe narrow woven ribbon, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in product 
matching. Generally, the Department attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the antidumping duty questionnaires, we must 
receive comments at the above-referenced address by August 18, 2009. 
Additionally, rebuttal comments must be received by August 25, 2009.

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method to poll the industry.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (``ITC''), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product (see section 771(10) of the Act), they do so for different 
purposes and pursuant to a separate and distinct authority. In 
addition, the Department's determination is subject to limitations of 
time and information. Although this may result in different definitions 
of the like product, such differences do not render the decision of 
either agency contrary to law. See USEC, Inc. v. United States, 132 F. 
Supp. 2d 1, 8 (Ct. Int'l Trade 2001), citing Algoma Steel

[[Page 39293]]

Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (Ct. Int'l Trade 
1988), aff'd 865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 U.S. 919 
(1989).
    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the Petitioner does not 
offer a definition of domestic like product distinct from the scope of 
the investigations. Based on our analysis of the information submitted 
on the record, we have determined that narrow woven ribbon constitutes 
a single domestic like product and we have analyzed industry support in 
terms of that domestic like product. For a discussion of the domestic 
like product analysis in this case, see Antidumping Duty Investigation 
Initiation Checklist: Narrow woven ribbon from the PRC (``PRC 
Initiation Checklist'') at Attachment II, Industry Support, and 
Antidumping Duty Investigation Initiation Checklist: Narrow woven 
ribbon from Taiwan (``Taiwan Initiation Checklist'') at Attachment II, 
Industry Support, dated concurrently with this notice and on file in 
the Central Records Unit (``CRU''), Room 1117 of the main Department of 
Commerce building.
    In determining whether the Petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of Investigations'' section above. To 
establish industry support, the Petitioner provided its production of 
the domestic like product for the year 2008, and compared this to the 
estimated total production of the domestic like product for the entire 
domestic industry. See Volume I of the Petition, at 7, and Exhibits 2, 
4, and 5, Supplement to the AD/CVD Petitions, dated July 21, 2009, at 
A-9-11, Second Supplement to the AD/CVD Petitions, dated July 27, 2009, 
at A-1-2 and Exhibit 117, and Third Supplement to the AD/CVD Petitions, 
dated July 29, 2009, at Attachment II. To estimate 2008 production of 
the domestic like product, the Petitioner used its own data and 
industry specific knowledge. The Petitioner calculated total domestic 
production based on its own production plus estimates from the nine 
other producers of the domestic like product in the United States. See 
id.; see also PRC Initiation Checklist at Attachment II, and Taiwan 
Initiation Checklist at Attachment II.
    Our review of the data provided in the Petitions, supplemental 
submissions, and other information readily available to the Department 
indicates that the Petitioner has established industry support. First, 
the Petitions established support from domestic producers (or workers) 
accounting for more than 50 percent of the total production of the 
domestic like product and, as such, the Department is not required to 
take further action in order to evaluate industry support (e.g., 
polling). See section 732(c)(4)(D) of the Act; see also PRC Initiation 
Checklist at Attachment II, and Taiwan Initiation Checklist at 
Attachment II. Second, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 732(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
Petitions account for at least 25 percent of the total production of 
the domestic like product. See PRC Initiation Checklist at Attachment 
II, and Taiwan Initiation Checklist at Attachment II. Finally, the 
domestic producers (or workers) have met the statutory criteria for 
industry support under section 732(c)(4)(A)(ii) of the Act because the 
domestic producers (or workers) who support the Petitions account for 
more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the Petitions. Accordingly, the Department determines 
that the Petitions were filed on behalf of the domestic industry within 
the meaning of section 732(b)(1) of the Act. See id.
    The Department finds that the Petitioner filed the Petitions on 
behalf of the domestic industry because it is an interested party as 
defined in section 771(9)(C) of the Act and it has demonstrated 
sufficient industry support with respect to the antidumping duty 
investigations that it is requesting the Department initiate. See id.

Allegations and Evidence of Material Injury and Causation

    The Petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (``NV''). In addition, the 
Petitioner alleges that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.
    The Petitioner contends that the industry's injured condition is 
illustrated by reduced market share, underselling and price depressing 
and suppressing effects, increased import penetration, lost sales and 
revenue, reduced production, reduced capacity, reduced capacity 
utilization, reduced shipments, reduced employment, and an overall 
decline in financial performance. We have assessed the allegations and 
supporting evidence regarding material injury, threat of material 
injury, and causation, and we have determined that these allegations 
are properly supported by adequate evidence and meet the statutory 
requirements for initiation. See PRC Initiation Checklist at Attachment 
III, Injury, and Taiwan Initiation Checklist at Attachment III, Injury.

Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value upon which the Department based its decision to 
initiate these investigations of imports of narrow woven ribbon from 
the PRC and Taiwan. The sources of data for the deductions and 
adjustments relating to the U.S. price, the factors of production (for 
the PRC) and constructed value (``CV'') (for Taiwan) are also discussed 
in the country-specific initiation checklists. See PRC Initiation 
Checklist and Taiwan Initiation Checklist. Should the need arise to use 
any of this information as facts available under section 776 of the Act 
in our preliminary or final determinations, we will reexamine the 
information and revise the margin calculations, if appropriate.

Export Price

The PRC

    For the PRC, the Petitioner calculated export price (``EP'') based 
on a price quote made during the POI for narrow woven ribbon products 
by a Chinese producer, sale term free on board (``FOB''). See PRC 
Initiation Checklist; see also Volume I of the Petitions at 24. To be 
conservative, the Petitioner did not make specific adjustments to the 
EP for domestic inland freight from the plant to the Chinese port. Id. 
However, the Petitioner did make an adjustment for foreign brokerage 
and handling. Id. Specifically, the Petitioner calculated PRC brokerage 
and handling by using the brokerage and handling surrogate value from 
Certain Steel Grating from the People's Republic of China: Initiation 
of Antidumping Duty Investigation, 74 FR 30273 (June 25, 2009) (``Steel 
Grating From China''), and adjusted it for inflation for the POI. See 
Steel Grating From China, 74 FR at

[[Page 39294]]

30276; see also Supplement to the AD/CVD Petitions, dated July 21, 
2009, at 4 and Exhibit 93; and PRC Initiation Checklist. In addition, 
the Petitioner converted brokerage and handling expenses into U.S. 
dollars based on the POI-average rupee/U.S. dollar exchange rate, as 
reported on the Department's website. See Volume II of the Petitions, 
at Exhibit 42, and Supplement to the AD/CVD Petitions, dated July 21, 
2009, at Exhibit 98.

Taiwan

    For Taiwan, the Petitioner calculated EP based on price quotes made 
during the POI for narrow woven ribbon products from a Taiwan producer/
exporter, sale term FOB. See Taiwan Initiation Checklist; see also 
Volume I of the Petitions at 28-29 and Volume II of the Petitions at 
Exhibits 58, 59, and 60. To be conservative, the Petitioner did not 
make specific adjustments to the EP for domestic inland freight from 
the plant to the Taiwanese port. See id. However, the Petitioner did 
make an adjustment for foreign brokerage and handling. See id. 
Specifically, the Petitioner calculated Taiwanese brokerage and 
handling using Taiwan-specific brokerage and handling expenses. See 
Volume II of the Petitions, at Exhibit 59; see also Supplement to the 
AD/CVD Petitions, dated July 21, 2009, at Exhibit 108 and Taiwan 
Initiation Checklist.

Normal Value

The PRC

    The Petitioner states that the PRC is a non-market economy 
(``NME'') country and no determination to the contrary has been made by 
the Department. See Volume I of the Petitions, at 19. The Petitioner 
states that the Department has treated the PRC as an NME country in 
every administrative proceeding in which the PRC has been involved, and 
has continued to do so in recent months. See id.; see also Citric Acid 
and Certain Citrate Salts From the People's Republic of China: Final 
Affirmative Determination of Sales at Less Than Fair Value, 74 FR 16838 
(April 13, 2009); see also Certain Circular Welded Carbon Quality Steel 
Line Pipe from the People's Republic of China: Final Determination of 
Sales at Less Than Fair Value, 74 FR 14514 (March 31, 2009).
    In accordance with section 771(18)(C)(i) of the Act, the 
presumption of NME status remains in effect until revoked by the 
Department. The presumption of NME status for the PRC has not been 
revoked by the Department and, therefore, remains in effect for 
purposes of the initiation of this investigation. Accordingly, the NV 
of the product for the PRC investigation is appropriately based on 
factors of production valued in a surrogate market-economy country in 
accordance with section 773(c) of the Act. In the course of the PRC 
investigation, all parties, including the public, will have the 
opportunity to provide relevant information related to the issue of the 
PRC's NME status and the granting of separate rates to individual 
exporters.
    Citing section 773(c)(4) of the Act, the Petitioner contends that 
India is the appropriate surrogate country for the PRC because: 1) it 
is at a level of economic development comparable to that of the PRC; 
and 2) it is a significant producer of narrow woven ribbon. See Volume 
I of the Petitions at 19-21, and Volume II of the Petitions, at Exhibit 
32. Based on the information provided by the Petitioner, we believe 
that it is appropriate to use India as a surrogate country for 
initiation purposes. After initiation of the investigation, interested 
parties will have the opportunity to submit comments regarding 
surrogate-country selection and, pursuant to 19 CFR 351.301(c)(3)(i), 
will be provided an opportunity to submit publicly available 
information to value factors of production within 40 days after the 
date of publication of the preliminary determination.
    The Petitioner calculated the NV and dumping margins for the U.S. 
price, discussed above, using the Department's NME methodology as 
required by 19 CFR 351.202(b)(7)(i)(C) and 19 CFR 351.408. The 
Petitioner calculated NV based on its own consumption rates for 
producing narrow woven ribbon in 2009. See Volume I of the Petitions at 
18, and Volume II of the Petitions, at Exhibit 29, and Supplement to 
the AD/CVD Petitions, dated July 21, 2009, at Exhibit 95. In 
calculating NV, the Petitioner based the quantity of each of the inputs 
used to manufacture and pack narrow woven ribbon in the PRC based on an 
analysis of Chinese narrow woven ribbon samples obtained by the 
Petitioner, as well as on its own production experience during the POI. 
See id. The Petitioner states that the actual usage rates of the 
foreign manufacturers of narrow woven ribbon are not reasonably 
available to it; however, the Petitioner notes that the production of 
narrow woven ribbon relies on the same basic technology worldwide. See 
Volume I of the Petitions at 18. The Petitioner asserts that the 
Chinese producers of narrow woven ribbon use largely the same 
production equipment, material inputs, and production processes as the 
Petitioner itself. See Volume I of the Petitions at 18, and Exhibit 27, 
and Volume II of the Petitions, at Exhibit 29.
    Raw materials (e.g., yarn) are significant inputs used in the 
production of narrow woven ribbon. The Petitioner determined the 
consumption of all raw materials and packing materials based on 
examination and analysis of samples of white single face satin narrow 
woven ribbon and black single face satin narrow woven ribbon from the 
PRC as well as its own production experience. See Volume I of the 
Petitions at 18, and Volume II of the Petitions at Exhibit 29, and 
Supplement to the AD/CVD Petitions, dated July 21, 2009, at Exhibit 95. 
The Petitioner valued the factors of production based on reasonably 
available, public surrogate-country data, including Indian import 
statistics from the World Trade Atlas (``WTA''). See Volume I of the 
Petitions, at 21, and Volume II of the Petitions, at Exhibit 34. The 
Petitioner excluded from these import statistics imports from countries 
previously determined by the Department to be NME countries and from 
Indonesia, the Republic of Korea, and Thailand as the Department has 
previously excluded prices from these countries because they maintain 
broadly available, non-industry-specific export subsidies. See Volume I 
of the Petition at 22. In addition, the Petitioner made currency 
conversions, where necessary, based on the POI-average rupee/U.S. 
dollar exchange rate, as reported on the Department's website. See 
Volume I of the Petitions, at 23, and Volume II of the Petitions, at 
Exhibit 42. Further, the Petitioner inflated certain factors of 
production, where necessary, on a POI basis. See Volume I of the 
Petitions, at 23, and Volume II of the Petitions, at Exhibit 41. The 
Petitioner determined labor costs using the labor consumption, in 
hours, derived from its own experience. See Volume II of the Petitions, 
at Exhibit 29, and Supplement to the AD/CVD Petitions, dated July 21, 
2009, at Exhibit 95. The Petitioner valued labor costs using the 
Department's NME Wage Rate for the PRC at https://ia.ita.doc.gov/wages/05wages/05wages-051608.html. See Volume I of the Petitions, at 22, and 
Volume II of the Petitions, at Exhibit 35. For purposes of initiation, 
the Department determines that the surrogate values used by the 
Petitioner are reasonably available and, thus, acceptable for purposes 
of initiation.
    The Petitioner determined electricity costs using the electricity 
consumption, in kilowatt hours, derived from its own experience. See 
Volume I of the

[[Page 39295]]

Petitions, at 22, and Volume II of the Petitions, at Exhibits 29 and 
43, and Supplement to the AD/CVD Petitions, dated July 21, 2009, at 
Exhibit 95. The Petitioner valued electricity using the Indian 
electricity rate reported by the Central Electric Authority of the 
Government of India. See Volume I of the Petitions, at 22, and Volume 
II of the Petitions, at Exhibit 36.
    The Petitioner determined natural gas costs using the natural gas 
consumption derived from its own experience. See Volume I of the 
Petitions, at 22, and Volume II of the Petitions, at Exhibit 29. The 
Petitioner valued natural gas using the Indian rate reported by the Gas 
Authority of India, Ltd. See Volume I of the Petitions, at 22, and 
Volume II of the Petitions, at Exhibit 38. The Petitioner adjusted the 
Indian natural gas rates to make them contemporaneous with the POI 
using Indian wholesale price indices as published by the International 
Monitory Fund. See Supplement to the AD/CVD Petitions, dated July 21, 
2009, at Exhibit 97.
    The Petitioner determined water costs using the water consumption 
derived from its own experience. See Volume I of the Petitions, at 22, 
and Volume II of the Petitions, at Exhibit 29. The Petitioner valued 
water based on information from the Maharastra Industrial Development 
Corporation, which is contemporaneous with the POI. See Volume I of the 
Petitions, at 22, and Volume II of the Petitions at 22, and Exhibit 37.
    The Petitioner based factory overhead, selling, general and 
administrative (``SG&A''), and profit on data from Ratan Glitter 
Industries Ltd. (``Ratan''), a ribbon producer, for the fiscal year 
April 2007 through March 2008. See Volume I of the Petitions, at 23, 
and Volume II of the Petitions, at Exhibit 39. The Petitioner states 
that Ratan is an Indian producer of in-scope ribbon. See Volume I of 
the Petitions at 23. Therefore, for purposes of the initiation, the 
Department finds the Petitioner's use of Ratan's financial ratios 
appropriate.

Taiwan

    With respect to NV for the Taiwan investigation, the Petitioner 
states that neither home-market prices nor third-country POI prices of 
narrow woven ribbon produced in Taiwan were reasonably available. 
According to the Petitioner, it was unsuccessful in obtaining Taiwanese 
POI pricing information despite its best efforts. See Volume I of the 
Petitions at 16-17, and Exhibit 2. Further, the Petitioner claims it 
was unable to base NV on publicly available information covering 
Taiwanese third-country export prices because exports of narrow woven 
ribbon from Taiwan are classified in Taiwan's export schedule under 
Harmonized Tariff Schedule (``HTS'') number 5806.32.1000. According to 
the Petitioner, this HTS category includes both in-scope and out-of-
scope ribbons including typewriter ribbons, ribbons exceeding 12 
centimeters in width, and ribbons without woven selvedge. Therefore, 
the Petitioner based NV on CV.
    Pursuant to section 773(e) of the Act, CV consists of the cost of 
manufacturing (``COM''), SG&A expenses, packing expenses, and profit. 
In calculating COM and packing, the Petitioner based the quantity of 
each of the inputs used to manufacture and pack narrow woven ribbon in 
Taiwan based on an analysis of Taiwanese narrow woven ribbon samples 
obtained by the Petitioner, as well as on its own production experience 
during the POI. See Volume I of the Petitions, at 18, Volume II of the 
Petitions, at Exhibit 29, and Supplement to the AD/CVD Petitions, dated 
July 21, 2009, at Exhibit 95. The Petitioner states that the actual 
usage rates of the foreign manufacturers of narrow woven ribbon are not 
reasonably available to it; however, the Petitioner notes that the 
production of narrow woven ribbon relies on the same basic technology 
worldwide. The Petitioner asserts that the Taiwanese producers of 
narrow woven ribbon use largely the same production equipment, material 
inputs, and production processes as the Petitioner itself. See Volume I 
of the Petitions at 18 and Exhibit 27.
    The Petitioner multiplied the usage quantities of the inputs used 
to manufacture and pack narrow woven ribbon by the Taiwanese values 
based on publicly available data. See Volume I of the Petitions, at 25-
28 and Supplement to the AD/CVD Petitions, dated July 21, 2009, at 
Exhibits 105, 106, and 107.
    Raw materials (e.g., yarn) are significant inputs used in the 
production of narrow woven ribbon. The Petitioner determined the 
consumption of all raw materials and packing materials based on 
examination and analysis of samples of white single face satin narrow 
woven ribbon and black single face satin narrow woven ribbon from 
Taiwan, as well as its own production experience. See Volume I of the 
Petitions at 18, Volume II of the Petitions, at Exhibit 29, and 
Supplement to the AD/CVD Petitions, dated July 21, 2009, at Exhibit 95. 
The Petitioner valued all raw materials and packing materials using 
Taiwanese import statistics as reflected in the WTA data for the POI. 
The Petitioner excluded from these import statistics imports from 
countries previously determined by the Department to be NME countries 
and from India, Indonesia, the Republic of Korea, and Thailand as the 
Department has previously excluded prices from these countries because 
they maintain broadly available, non-industry-specific export 
subsidies. See Volume I of the Petitions at 26 and Volume II of the 
Petitions, at Exhibit 48. Because Taiwanese import statistics report 
import values in Taiwanese dollars, the Petitioner converted the import 
values into U.S. dollars using the Department's POI exchange rates. See 
Volume I of the Petitions at 28 and Volume II of the Petitions, at 
Exhibit 56.
    The Petitioner determined labor costs using the labor consumption 
in hours derived from its own experience. As the Petitioner did not 
have access to the cost of labor inputs in the production of narrow 
woven ribbon in Taiwan, it relied on data available from the 
International Labour Organization's database at https://laborsta.ilo.org 
to determine the average wage rate in Taiwan. See Volume I of the 
Petitions at 34 and Volume II of the Petitions, at Exhibit 49. The 
Petitioner adjusted Taiwanese labor rates to make them contemporaneous 
with the POI using Taiwanese wholesale price indices as published by 
the Directorate General of Budget, Accounting and Statistics, Republic 
of China. The Petitioner converted the Taiwanese labor rates into U.S. 
dollars using the Department's POI exchange rates. See Volume I of the 
Petitions at 26, Volume II of the Petitions, at Exhibit 49, and 
Supplement to the AD/CVD Petitions, dated July 21, 2009, at Exhibit 
106.
    The Petitioner determined the costs of electricity, water, and 
natural gas using consumption amounts derived from its own experience. 
The Petitioner valued electricity and natural gas using the Taiwanese 
electricity and natural gas rates for the industry reported by the 
Energy Information Administration at https://www.eia.doe.gov/emeu/international/. Because Taiwanese electricity and natural gas rates are 
reported in U.S. dollars, the Petitioner did not make currency 
conversions. The Petitioner adjusted the Taiwanese electricity and 
natural gas rates to make them contemporaneous with the POI using 
Taiwanese wholesale price indices as published by the Directorate 
General of Budget, Accounting and Statistics, Republic of China. See 
Volume I of the Petitions at 26; Volume II of the Petitions, at 
Exhibits 50, 52, and 55, and Supplement to the AD/CVD Petitions, dated 
July 21, 2009, at Exhibit

[[Page 39296]]

106. The Petitioner valued water using the Taiwanese rates published by 
Taiwan Water Corporation, which are contemporaneous with the POI. The 
Petitioner converted the Taiwanese water rates into U.S. dollars using 
the Department's POI exchange rates. See Volume I of the Petitions at 
26; Volume II of the Petitions at Exhibit 51, and Supplement to the AD/
CVD Petitions, dated July 21, 2009, at C 2.
    To calculate factory overhead, SG&A, interest expenses, and a 
profit rate, the Petitioner relied on financial statements of a 
Taiwanese producer of textile products, Far Eastern Textile Ltd. See 
Supplement to the AD/CVD Petitions, dated July 21, 2009, at C 3, and 
Exhibits 103 and 104. See also Taiwan Initiation Checklist.

Fair-Value Comparisons

    Based on the data provided by the Petitioner, there is reason to 
believe that imports of narrow woven ribbon from the PRC and Taiwan are 
being, or are likely to be, sold in the United States at less than fair 
value. Based on a comparison of EPs and NV calculated in accordance 
with section 773(c) of the Act, the estimated dumping margins for 
narrow woven ribbon from the PRC range from 208.80 percent to 231.40 
percent. See PRC Initiation Checklist. Based on a comparison of EPs and 
CV calculated in accordance with section 773(a)(4) of the Act, the 
estimated dumping margins for narrow woven ribbon from Taiwan range 
from 116.60 percent to 137.20 percent. See Taiwan Initiation Checklist.

Initiation of Antidumping Investigations

    Based upon the examination of the Petitions on narrow woven ribbon 
from the PRC and Taiwan, the Department finds that the Petitions meet 
the requirements of section 732 of the Act. Therefore, we are 
initiating antidumping duty investigations to determine whether imports 
of narrow woven ribbon from the PRC and Taiwan are being, or are likely 
to be, sold in the United States at less than fair value. In accordance 
with section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless 
postponed, we will make our preliminary determinations no later than 
140 days after the date of this initiation.

Targeted-Dumping Allegations

    On December 10, 2008, the Department issued an interim final rule 
for the purpose of withdrawing 19 CFR 351.414(f) and (g), the 
regulatory provisions governing the targeted- dumping analysis in 
antidumping duty investigations, and the corresponding regulation 
governing the deadline for targeted-dumping allegations, 19 CFR 
351.301(d)(5). See Withdrawal of the Regulatory Provisions Governing 
Targeted Dumping in Antidumping Duty Investigations, 73 FR 74930 
(December 10, 2008). The Department stated that ``{w{time} ithdrawal 
will allow the Department to exercise the discretion intended by the 
statute and, thereby, develop a practice that will allow interested 
parties to pursue all statutory avenues of relief in this area.'' See 
id. at 74931.
    In order to accomplish this objective, if any interested party 
wishes to make a targeted- dumping allegation in any of these 
investigations pursuant to section 777A(d)(1)(B) of the Act, such 
allegations are due no later than 45 days before the scheduled date of 
the country-specific preliminary determination.

Respondent Selection

The PRC

    For this investigation, the Department will request quantity and 
value information from all known exporters and producers identified 
with complete contact information in the Petitions. The quantity and 
value data received from NME exporters/producers will be used as the 
basis to select the mandatory respondents.
    The Department requires that the respondents submit a response to 
both the quantity and value questionnaire and the separate-rate 
application by the respective deadlines in order to receive 
consideration for separate-rate status. See Circular Welded Austenitic 
Stainless Pressure Pipe from the People's Republic of China: Initiation 
of Antidumping Duty Investigation, 73 FR 10221, 10225 (February 26, 
2008); Initiation of Antidumping Duty Investigation: Certain Artist 
Canvas From the People's Republic of China, 70 FR 21996, 21999 (April 
28, 2005). The Department will post the quantity and value 
questionnaire along with the filing instructions on the Import 
Administration website at https://ia.ita.doc.gov/ia-highlights-and-news.html and a response to the quantity and value questionnaire is due 
no later than August 19, 2009. Also, the Department will send the 
quantity and value questionnaire to those PRC companies identified in 
the Supplement to the AD/CVD Petitions, dated July 21, 2009, at Exhibit 
116, and Second Supplemental to the AD/CVD Petitions, dated July 27, 
2009, at B1-B4.

Taiwan

    For this investigation, the Department intends to select 
respondents based on U.S. Customs and Border Protection (``CBP'') data 
for U.S. imports under the Harmonized Tariff Schedule of the United 
States (``HTSUS'') numbers 5806.32.1020, 5806.32.1030, 5806.32.1050, 
and 5806.32.1060, the four HTSUS categories most specific to the 
subject merchandise, during the POI. We intend to release the CBP data 
under Administrative Protective Order (``APO'') to all parties with 
access to information protected by APO within five days of publication 
of this Federal Register notice and make our decision regarding 
respondent selection within 20 days of publication of this notice. The 
Department invites comments regarding the CBP data and respondent 
selection within ten days of publication of this Federal Register 
notice.
    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Instructions for filing such 
applications may be found on the Department's website at https://ia.ita.doc.gov/apo.

Separate Rates

    In order to obtain separate-rate status in NME investigations, 
exporters and producers must submit a separate-rate status application. 
See Policy Bulletin 05.1: Separate-Rates Practice and Application of 
Combination Rates in Antidumping Investigations involving Non-Market 
Economy Countries (April 5, 2005) (Separate Rates and Combination Rates 
Bulletin), available on the Department's website at https://ia.ita.doc.gov/policy/bull05-1.pdf. Based on our experience in 
processing the separate-rate applications in previous antidumping duty 
investigations, we have modified the application for this investigation 
to make it more administrable and easier for applicants to complete. 
See, e.g., Initiation of Antidumping Duty Investigation: Certain New 
Pneumatic Off-the-Road Tires From the People's Republic of China, 72 FR 
43591, 43594-95 (August 6, 2007). The specific requirements for 
submitting the separate-rate application in this investigation are 
outlined in detail in the application itself, which will be available 
on the Department's website at <https://ia.ita.doc.gov/ia-highlights-and-news.html> on the date of publication of this initiation notice in 
the Federal Register. The separate-rate application will be due 60 days 
after publication of this initiation notice. For exporters and 
producers who submit a separate-rate status application and 
subsequently are

[[Page 39297]]

selected as mandatory respondents, these exporters and producers will 
no longer be eligible for consideration for separate rate status unless 
they respond to all parts of the questionnaire as mandatory 
respondents. As noted in the ``Respondent Selection'' section above, 
the Department requires that respondents submit a response to both the 
quantity and value questionnaire and the separate-rate application by 
the respective deadlines in order to receive consideration for 
separate-rate status. The quantity and value questionnaire will be 
available on the Department's website at <https://ia.ita.doc.gov/ia-highlights-and-news.html> on the date of the publication of this 
initiation notice in the Federal Register.

Use of Combination Rates in an NME Investigation

    The Department will calculate combination rates for certain 
respondents that are eligible for a separate rate in this 
investigation. The Separate Rates and Combination Rates Bulletin 
states:
    {w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME investigations will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period of 
investigation. This practice applies both to mandatory respondents 
receiving an individually calculated separate rate as well as the pool 
of non-investigated firms receiving the weighted-average of the 
individually calculated rates. This practice is referred to as the 
application of ``combination rates'' because such rates apply to 
specific combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise 
both exported by the firm in question and produced by a firm that 
supplied the exporter during the period of investigation.
See Separate Rates and Combination Rates Bulletin at 6 (emphasis 
added).

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public versions of the Petitions have been 
provided to the representatives of the Governments of the PRC and 
Taiwan. Because of the large number of producers/exporters identified 
in the Petition, the Department considers the service of the public 
version of the Petition to the foreign producers/exporters satisfied by 
the delivery of the public version to the Government of the PRC, 
consistent with 19 CFR 351.203(c)(2).

ITC Notification

    We have notified the ITC of our initiations, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, no later than August 24, 
2009, whether there is a reasonable indication that imports of narrow 
woven ribbon from the PRC and Taiwan are materially injuring, or 
threatening material injury to a U.S. industry. A negative ITC 
determination with respect to any country will result in the 
investigation being terminated for that country; otherwise, these 
investigations will proceed according to statutory and regulatory time 
limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: July 29, 2009.
Ronald K. Lorentzen,
Assistant Secretary for Import Administration.

Appendix I

Scope of the Investigations

The merchandise subject to the investigations is narrow woven ribbons 
with woven selvedge, in any length, but with a width (measured at the 
narrowest span of the ribbon) less than or equal to 12 centimeters, 
composed of, in whole or in part, man-made fibers (whether artificial 
or synthetic, including but not limited to nylon, polyester, rayon, 
polypropylene, and polyethylene teraphthalate), metal threads and/or 
metalized yarns, or any combination thereof. Narrow woven ribbons 
subject to the investigations may:
     also include natural or other non-man-made fibers;
     be of any color, style, pattern, or weave construction, 
including but not limited to single-faced satin, double-faced satin, 
grosgrain, sheer, taffeta, twill, jacquard, or a combination of two or 
more colors, styles, patterns, and/or weave constructions;
     have been subjected to, or composed of materials that have 
been subjected to, various treatments, including but not limited to 
dyeing, printing, foil stamping, embossing, flocking, coating, and/or 
sizing;
     have embellishments, including but not limited to 
appliqu[eacute], fringes, embroidery, buttons, glitter, sequins, 
laminates, and/or adhesive backing;
     have wire and/or monofilament in, on, or along the 
longitudinal edges of the ribbon;
     have ends of any shape or dimension, including but not 
limited to straight ends that are perpendicular to the longitudinal 
edges of the ribbon, tapered ends, flared ends or shaped ends, and the 
ends of such woven ribbons may or may not be hemmed;
     have longitudinal edges that are straight or of any shape, 
and the longitudinal edges of such woven ribbon may or may not be 
parallel to each other;
     consist of such ribbons affixed to like ribbon and/or cut-
edge woven ribbon, a configuration also known as an ``ornamental 
trimming;''
     be wound on spools; attached to a card; hanked (i.e., 
coiled or bundled); packaged in boxes, trays or bags; or configured as 
skeins, balls, bateaus or folds; and/or
     be included within a kit or set such as when packaged with 
other products, including but not limited to gift bags, gift boxes and/
or other types of ribbon.
Narrow woven ribbons subject to the investigations include all narrow 
woven fabrics, tapes, and labels that fall within this written 
description of the scope of the investigations.
Excluded from the scope of the investigations are the following:
(1) formed bows composed of narrow woven ribbons with woven selvedge;
(2) ``pull-bows'' (i.e., an assemblage of ribbons connected to one 
another, folded flat and equipped with a means to form such ribbons 
into the shape of a bow by pulling on a length of material affixed to 
such assemblage) composed of narrow woven ribbons;
(3) narrow woven ribbons comprised at least 20 percent by weight of 
elastomeric yarn (i.e., filament yarn, including monofilament, of 
synthetic textile material, other than textured yarn, which does not 
break on being extended to three times its original length and which 
returns, after being extended to twice its original length, within a 
period of five minutes, to a length not greater than one and a half 
times its original length as defined in the Harmonized Tariff Schedule 
of the United States (HTSUS), Section XI, Note 13) or rubber thread;
(4) narrow woven ribbons of a kind used for the manufacture of 
typewriter or printer ribbons;

[[Page 39298]]

(5) narrow woven labels and apparel tapes, cut-to-length or cut-to-
shape, having a length (when measured across the longest edge-to-edge 
span) not exceeding 8 centimeters;
(6) narrow woven ribbons with woven selvedge attached to and forming 
the handle of a gift bag;
(7) cut-edge narrow woven ribbons formed by cutting broad woven fabric 
into strips of ribbon, with or without treatments to prevent the 
longitudinal edges of the ribbon from fraying (such as by merrowing, 
lamination, sono-bonding, fusing, gumming or waxing), and with or 
without wire running lengthwise along the longitudinal edges of the 
ribbon;
(8) narrow woven ribbons comprised at least 85 percent by weight of 
threads having a denier of 225 or higher;
(9) narrow woven ribbons constructed from pile fabrics (i.e., fabrics 
with a surface effect formed by tufts or loops of yarn that stand up 
from the body of the fabric) ;
(10) narrow woven ribbon affixed (including by tying) as a decorative 
detail to non-subject merchandise, such as a gift bag, gift box, gift 
tin, greeting card or plush toy, or affixed (including by tying) as a 
decorative detail to packaging containing non-subject merchandise;
(11) narrow woven ribbon affixed to non-subject merchandise as a 
working component of such non-subject merchandise, such as where narrow 
woven ribbon comprises an apparel trimming, book marker, bag cinch, or 
part of an identity card holder; and
(12) narrow woven ribbon(s) comprising a belt attached to and imported 
with an item of wearing apparel, whether or not such belt is removable 
from such item of wearing apparel.
The merchandise subject to the investigations is classifiable under the 
HTSUS statistical categories 5806.32.1020; 5806.32.1030; 5806.32.1050 
and 5806.32.1060. Subject merchandise also may enter under subheadings 
5806.31.00; 5806.32.20; 5806.39.20; 5806.39.30; 5808.90.00; 5810.91.00; 
5810.99.90; 5903.90.10; 5903.90.25; 5907.00.60; and 5907.00.80 and 
under statistical categories 5806.32.1080; 5810.92.9080; 5903.90.3090; 
and 6307.90.9889. The HTSUS statistical categories and subheadings are 
provided for convenience and customs purposes; however, the written 
description of the merchandise under investigation is dispositive.
[FR Doc. E9-18732 Filed 8-5-09; 8:45 am]
BILLING CODE 3510-DS-S