Polyethylene Terephthalate Film, Sheet, and Strip from the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review, 40784-40788 [2010-17170]
Download as PDF
40784
Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices
rates are de minimis, in accordance with
the requirement set forth in 19 CFR
351.106(c)(2), we calculated importer
(or customer)-specific ad valorem ratios
based on the estimated entered value.
Where an importer (or customer)specific ad valorem rate is zero or de
minimis, we will instruct CBP to
liquidate appropriate entries without
regard to antidumping duties. See 19
CFR 351.106(c)(2).
For the companies receiving a
separate rate that were not selected for
individual review, the assessment rate
will be based on the rate from the
investigation or, if appropriate, a simple
average of the cash deposit rates
calculated for the companies selected
for individual review pursuant to
section 735(c)(5)(B) of the Act.
Cash Deposit Requirements
The following cash deposit
requirements will be effective upon
publication of the final results of this
administrative review for all shipments
of the subject merchandise entered, or
withdrawn from warehouse, for
consumption on or after the publication
date, as provided for by section
751(a)(2)(C) of the Act: (1) For the
exporters listed above, the cash deposit
rate will be established in the final
results of this review (except, if the rate
is zero or de minimis, i.e., less than 0.5
percent, no cash deposit will be
required for that company); (2) for
previously investigated or reviewed PRC
and non-PRC exporters not listed above
that have separate rates, the cash
deposit rate will continue to be the
exporter-specific rate published for the
most recent period; (3) for all PRC
exporters of subject merchandise which
have not been found to be entitled to a
separate rate, the cash deposit rate will
be the PRC-wide rate of 44.3 percent;
and (4) for all non-PRC exporters of
subject merchandise which have not
received their own rate, the cash deposit
rate will be the rate applicable to the
PRC exporters that supplied that nonPRC exporter. These deposit
requirements, when imposed, shall
remain in effect until further notice.
emcdonald on DSK2BSOYB1PROD with NOTICES
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f)(2) 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
VerDate Mar<15>2010
16:07 Jul 13, 2010
Jkt 220001
occurred and the subsequent assessment
of double antidumping duties.
This determination is issued and
published in accordance with sections
751(a)(1) and 777(i)(1) of the Act and 19
CFR 351.221(b)(4).
Dated: July 7, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–17180 Filed 7–13–10; 8:45 am]
BILLING CODE 3510–DS–P
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 June 1, 2008, through
May 31, 2009. We preliminarily
determine that Kolon has not made sales
below normal value (NV). 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 this
review and for future deposits of
estimated duties, where applicable.
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 14, 2010.
FOR FURTHER INFORMATION CONTACT:
Maryanne Burke 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) 482–5604 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 1, 2009, the Department
published in the Federal Register a
notice of ‘‘Opportunity to Request
Administrative Review’’ of the
antidumping duty order on PET film
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
from Korea. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
to Request Administrative Review, 74
FR 26202 (June 1, 2009).
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,
2009, Kolon requested an administrative
review of the antidumping duty order
on PET film from Korea. On June 30,
2009, 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 29, 2009, the Department
initiated an administrative review for
Kolon covering the period June 1, 2008,
through May 31, 2009. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Deferral of
Administrative Review, 74 FR 37690
(July 29, 2009).
On August 6, 2009, we issued our
antidumping questionnaire to Kolon.
We received Kolon’s response to our
questionnaire on September 16, 2009
(Section A) and October 13, 2009
(Sections B, C, and D). On February 1,
2010, we issued a supplemental
questionnaire to Kolon which covered
sections A through D. Kolon responded
to this supplemental questionnaire on
March 1, 2010. Then, on June 15, 2010
we issued a second supplemental
questionnaire to Kolon which covered
sections B through D. Kolon filed its
response to this questionnaire on June
29, 2010.
On March 3, 2010, we extended the
deadline for the preliminary results of
this review until no later than July 7,
2010. See Polyethylene Terephthalate
Film, Sheet and Strip from the Republic
of Korea: Extension of Time Limit for
Preliminary Results of the Antidumping
Duty Administrative Review, 75 FR 9579
(March 3, 2010).
Scope of the Order
Imports covered by this order 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 more than 0.00001
inches (0.254 micrometers) thick.
PET film is currently classifiable
under Harmonized Tariff Schedule of
the United States (HTSUS) subheading
3920.62.00. The HTSUS subheading is
provided for convenience and for
E:\FR\FM\14JYN1.SGM
14JYN1
Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices
customs purposes. The written
description remains dispositive as to the
scope of the product coverage.
Period of Review
The period of review (POR) is June 1,
2008, to May 31, 2009.
Comparisons to Normal Value
To determine whether sales of PET
film from Korea to the United States
were made at less than normal value
(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.
emcdonald on DSK2BSOYB1PROD with NOTICES
Product Comparisons
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 the 2007–
2008 administrative review of this
order, and in the less than fair value
(LTFV) 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 Polyethylene
Terephthalate Film, Sheet, and Strip
from the Republic of Korea: Preliminary
Results of Antidumping Duty
Administrative Review, 74 FR 31922,
31923 (July 6, 2009) (unchanged in final
results.) 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
VerDate Mar<15>2010
16:07 Jul 13, 2010
Jkt 220001
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 on CV, as
the sales from which selling, general,
and administrative (SG&A) expenses
and profit are derived. See 19 CFR
351.412(c)(1). 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 19 CFR
351.412(c)(1)(ii) 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.,
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: 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 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
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
40785
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
LOTs among each channel of
distribution and customer category for
both markets. See Kolon’s September
16, 2009, questionnaire response at
Exhibit 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 a single 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 Kolon
performed on its home market sales.
Based on the foregoing, we determine
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 sales to
unaffiliated home market customers are
either performed at a higher degree of
intensity or are greater in number than
the selling functions performed for sales
to Kolon USA. For example, in
E:\FR\FM\14JYN1.SGM
14JYN1
40786
Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
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).
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 in the
United States or 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
VerDate Mar<15>2010
16:07 Jul 13, 2010
Jkt 220001
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 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 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, bank
charges and ocean freight. 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’s October 13, 2009, Section C
response at C–34 to C–35 and Exhibit C–
16.
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
expenses associated with economic
activity in the United States including
PO 00000
Frm 00017
Fmt 4703
Sfmt 4703
direct selling expenses (i.e.,
commissions, 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’s October 13, 2009, Section C
response at C–34 to C–35 and Exhibit C–
16.
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 16, 2009,
questionnaire response at Exhibit 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
Polyethlylene Terephthalate Film,
Sheet, and Strip from the Republic of
Korea: Final Results of Antidumping
Duty Changed Circumstances Review
and Reinstatement of the Antidumping
Duty Order 73 FR 18259 (April 3, 2008)
(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
E:\FR\FM\14JYN1.SGM
14JYN1
emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices
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
normally disregard 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
VerDate Mar<15>2010
16:07 Jul 13, 2010
Jkt 220001
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.
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
40787
Preliminary Results of Review
We preliminarily determine the
following weighted–average dumping
margin exists for the period June 1, 2008
through May 31, 2009:
Manufacturer / Exporter
Weighted Average
Margin (percentage)
Kolon Industries, Inc .....
0.30% (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 (or customer–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). However, where
Kolon did not report the entered value
E:\FR\FM\14JYN1.SGM
14JYN1
40788
Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices
for its sales, we will calculate importer–
specific (or customer–specific) per unit
duty assessment rates. 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 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 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 21.50 percent from the
LTFV investigation. See Polyethylene
Terephthalate Film, Sheet, and Strip
From the Republic of Korea; Notice of
Final Court Decision and Amended
Final Determination of Antidumping
Duty Investigation, 62 FR 50557
(September 26, 1997).
emcdonald on DSK2BSOYB1PROD with NOTICES
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.
[FR Doc. 2010–17170 Filed 7–13–10; 8:45 am]
BILLING CODE 3510–DS–S
VerDate Mar<15>2010
16:07 Jul 13, 2010
Jkt 220001
SUPPLEMENTARY INFORMATION:
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(‘‘the Department’’) is conducting an
administrative review of the
antidumping duty order on folding
metal tables and chairs (‘‘FMTCs’’) from
the People’s Republic of China (‘‘PRC’’)
covering the period June 1, 2008,
through May 31, 2009, and a deferred
administrative review for Feili Group
(Fujian) Co., Ltd. and Feili Furniture
Development Limited Quanzhou City
(collectively, ‘‘Feili’’) 1 covering the
period June 1, 2007, through May 31,
2008. The 2008–2009 administrative
review covers Feili and New-Tec
Integration (Xiamen) Co., Ltd. (‘‘NewTec’’) and the 2007–2008 deferred
administrative review covers Feili. We
have preliminarily determined that Feili
and New-Tec did not make sales in the
United States at prices below normal
value (‘‘NV’’) during the periods of
review (‘‘POR’’) pertinent to each
company. If these preliminary results
are adopted in our final results of these
reviews, we will instruct U.S. Customs
and Border Protection (‘‘CBP’’) to
liquidate entries of merchandise
exported by Feili and New-Tec during
the PORs without regard to antidumping
duties.
We invite interested parties to
comment on these preliminary results.
We intend to issue the final results no
later than 120 days from the date of
publication of this notice, pursuant to
section 751(a)(3)(A) of the Tariff Act of
1930, as amended (‘‘the Act’’).
DATES: Effective Date: July 14, 2010.
FOR FURTHER INFORMATION CONTACT: Lilit
Astvatsatrian or Charles Riggle, AD/CVD
Operations, Office 8, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–6412 and (202)
482–0650, respectively.
Background
On June 27, 2002, the Department
published the antidumping duty order
on FMTCs from the PRC. See
Antidumping Duty Order: Folding Metal
Tables and Chairs From the People’s
Republic of China, 67 FR 43277 (June
27, 2002). On July 30, 2008, the
Department granted Feili’s request for
deferral of the June 1, 2007, through
May 31, 2008 review, to which no
parties objected.2 On June 1, 2009, the
Department published a notice of
opportunity to request an administrative
review of this order for the June 1, 2008,
through, May 31, 2009 POR. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity to Request
Administrative Review, 74 FR 26202
(June 1, 2009). In accordance with 19
CFR 351.213(b), interested parties made
the following requests for review: (1) On
June 23, 2009, New-Tec, a producer and
exporter of subject merchandise to the
United States, requested that the
Department conduct an administrative
review of its sales; (2) on June 25, 2009,
Cosco Home & Office Products
(‘‘Cosco’’), a U.S. importer of subject
merchandise, requested that the
Department conduct administrative
reviews of Feili and New-Tec for the
2008–2009 POR . On July 29, 2009, the
Department initiated the 2007–2008 and
2008–2009 reviews for Feili, and the
2008–2009 review for New-Tec.3 The
Department issued an antidumping duty
questionnaire to Feili and New-Tec on
August 7, 2009. On September 1, 2009
and September 10, 2009, New-Tec and
Feili, respectively, submitted a section
A questionnaire response (‘‘AQR’’), and
on September 15, 2009 and September
25, 2009, New-Tec and Feili,
respectively, submitted section C and D
questionnaire responses (‘‘CQR’’ and
‘‘DQR,’’ respectively). On January 5,
2010, the Department requested the
Office of Policy to provide a list of
surrogate countries for this review. See
Memorandum to Carole Showers,
Director, Office of Policy, ‘‘2007–2008
Administrative Review of the
Antidumping Duty Order on Folding
Metal Tables and Chairs from the
People’s Republic of China: Request for
Surrogate Country Selection’’ (January 5,
2010) and Memorandum to Carole
1 The Department initiated both reviews for Feili
using the following names: Feili Furniture
Development Ltd. Quanzhou City, Feili Furniture
Development Co., Ltd., Feili Group (Fujian) Co.,
Ltd., and Feili (Fujian) Co., Ltd. However, Feili has
informed the Department that its name includes
only Feili Group (Fujian) Co., Ltd. and Feili
Furniture Development Limited Quanzhou City.
Cash Deposit Requirements
Dated: July 7, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
DEPARTMENT OF COMMERCE
2 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).
3 See Initiation of Antidumping and
Countervailing Duty Administrative Reviews and
Deferral of Administrative Review, 74 FR 37690
(July 29, 2009).
International Trade Administration
[A–570–868]
Folding Metal Tables and Chairs From
the People’s Republic of China:
Preliminary Results of Antidumping
Duty Administrative Review
PO 00000
Frm 00019
Fmt 4703
Sfmt 4703
E:\FR\FM\14JYN1.SGM
14JYN1
Agencies
[Federal Register Volume 75, Number 134 (Wednesday, July 14, 2010)]
[Notices]
[Pages 40784-40788]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17170]
-----------------------------------------------------------------------
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 June 1, 2008, through May 31, 2009. We preliminarily determine
that Kolon has not made sales below normal value (NV). 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 this review and for future deposits of estimated duties,
where applicable.
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 14, 2010.
FOR FURTHER INFORMATION CONTACT: Maryanne Burke 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-
5604 or (202) 482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 1, 2009, 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, 74 FR 26202 (June 1,
2009).
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, 2009, Kolon requested
an administrative review of the antidumping duty order on PET film from
Korea. On June 30, 2009, 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 29, 2009, the Department initiated an administrative review
for Kolon covering the period June 1, 2008, through May 31, 2009. See
Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Deferral of Administrative Review, 74 FR 37690 (July 29,
2009).
On August 6, 2009, we issued our antidumping questionnaire to
Kolon. We received Kolon's response to our questionnaire on September
16, 2009 (Section A) and October 13, 2009 (Sections B, C, and D). On
February 1, 2010, we issued a supplemental questionnaire to Kolon which
covered sections A through D. Kolon responded to this supplemental
questionnaire on March 1, 2010. Then, on June 15, 2010 we issued a
second supplemental questionnaire to Kolon which covered sections B
through D. Kolon filed its response to this questionnaire on June 29,
2010.
On March 3, 2010, we extended the deadline for the preliminary
results of this review until no later than July 7, 2010. See
Polyethylene Terephthalate Film, Sheet and Strip from the Republic of
Korea: Extension of Time Limit for Preliminary Results of the
Antidumping Duty Administrative Review, 75 FR 9579 (March 3, 2010).
Scope of the Order
Imports covered by this order 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 more than 0.00001
inches (0.254 micrometers) thick.
PET film is currently classifiable under Harmonized Tariff Schedule
of the United States (HTSUS) subheading 3920.62.00. The HTSUS
subheading is provided for convenience and for
[[Page 40785]]
customs purposes. The written description remains dispositive as to the
scope of the product coverage.
Period of Review
The period of review (POR) is June 1, 2008, to May 31, 2009.
Comparisons to Normal Value
To determine whether sales of PET film from Korea to the United
States were made at less than normal value (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.
Product Comparisons
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 the 2007-2008
administrative review of this order, and in the less than fair value
(LTFV) 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 Polyethylene Terephthalate Film, Sheet, and
Strip from the Republic of Korea: Preliminary Results of Antidumping
Duty Administrative Review, 74 FR 31922, 31923 (July 6, 2009)
(unchanged in final results.) 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 on CV, as the sales from which selling, general, and
administrative (SG&A) expenses and profit are derived. See 19 CFR
351.412(c)(1). 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 19 CFR
351.412(c)(1)(ii) 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.,
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: 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 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 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
LOTs among each channel of distribution and customer category for both
markets. See Kolon's September 16, 2009, questionnaire response at
Exhibit 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 a single 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 Kolon performed on its home market sales.
Based on the foregoing, we determine 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 sales to
unaffiliated home market customers are either performed at a higher
degree of intensity or are greater in number than the selling functions
performed for sales to Kolon USA. For example, in
[[Page 40786]]
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). 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
in the United States or 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 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
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, bank charges and ocean freight.
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's October 13, 2009, Section C
response at C-34 to C-35 and Exhibit C-16.
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 expenses
associated with economic activity in the United States including direct
selling expenses (i.e., commissions, 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's
October 13, 2009, Section C response at C-34 to C-35 and Exhibit C-16.
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 16, 2009, questionnaire response at Exhibit 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 Polyethlylene Terephthalate
Film, Sheet, and Strip from the Republic of Korea: Final Results of
Antidumping Duty Changed Circumstances Review and Reinstatement of the
Antidumping Duty Order 73 FR 18259 (April 3, 2008) (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
[[Page 40787]]
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 normally disregard 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 June 1, 2008 through May 31, 2009:
------------------------------------------------------------------------
Weighted Average
Manufacturer / Exporter Margin
(percentage)
------------------------------------------------------------------------
Kolon Industries, Inc............................... 0.30% (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 (or customer-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). However, where Kolon
did not report the entered value
[[Page 40788]]
for its sales, we will calculate importer-specific (or customer-
specific) per unit duty assessment rates. 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.
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 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 21.50 percent from the LTFV investigation. See Polyethylene
Terephthalate Film, Sheet, and Strip From the Republic of Korea; Notice
of Final Court Decision and Amended Final Determination of Antidumping
Duty Investigation, 62 FR 50557 (September 26, 1997).
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: July 7, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-17170 Filed 7-13-10; 8:45 am]
BILLING CODE 3510-DS-S