Notice of Final Determination of Sales at Less Than Fair Value: Narrow Woven Ribbons with Woven Selvedge from Taiwan, 41804-41808 [2010-17538]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 75, Number 137 (Monday, July 19, 2010)]
[Notices]
[Pages 41804-41808]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17538]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-583-844


Notice of Final Determination of Sales at Less Than Fair Value: 
Narrow Woven Ribbons with Woven Selvedge from Taiwan

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: We determine that imports of narrow woven ribbons with woven 
selvedge (NWR) from Taiwan are being, or are likely to be, sold in the 
United States at less than fair value (LTFV), as provided in section 
735 of the Tariff Act of 1930, as amended (the Act).
    Based on our analysis of the comments received, we have made 
changes in the margin calculations. Therefore, the final determination 
differs from the preliminary determination. The final weighted-average 
dumping margins for the investigated companies are listed below in the 
section entitled ``Final Determination Margins.''

EFFECTIVE DATE: July 19, 2010.

FOR FURTHER INFORMATION CONTACT: Hector Rodriguez or Holly Phelps, AD/
CVD Operations, Office 2, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
0629 and (202) 482-0656, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 18, 2010, the Department published in the Federal 
Register the preliminary determination of sales at LTFV in the 
antidumping duty investigation of NWR from Taiwan. See Narrow Woven 
Ribbons with Woven Selvedge from Taiwan: Preliminary Determination of 
Sales at Less Than Fair Value and Postponement of Final Determination, 
75 FR 7236 (Feb. 18, 2010) (Preliminary Determination). Since the 
preliminary determination, the following events have occurred.
    In February 2010, the Department selected certain unaffiliated 
companies which supplied ribbon to Dear Year Brothers Mfg. Co., Ltd. 
(Dear Year) and Shienq Houng Group (i.e., Hsien Chan Enterprise Co., 
Ltd., Novelty Handicrafts Co., Ltd., and Shienq Huong Enterprise Co., 
Ltd. (collectively ``Shienq Huong'')), and we requested that these 
unaffiliated suppliers respond to section D of the questionnaire (i.e., 
the section relating to cost of production (COP) and

[[Page 41805]]

constructed value) with respect to the merchandise supplied to Dear 
Year and Shienq Huong. In February and March 2010, Dear Year's 
unaffiliated supplier informed the Department that it did not produce 
NWR but merely purchased and resold it, while Shienq Houng's 
unaffiliated ribbon suppliers provided responses to section D of the 
questionnaire.
    In March 2010, we verified the questionnaire responses of three 
respondents in this case, Dear Year, Roung Shu Industry Corporation 
(Roung Shu), and Shienq Houng, in accordance with section 782(i) of the 
Act. Also in this month, we received additional comments on the scope 
of this investigation from the petitioner.\1\ Finally in March 2010, we 
issued supplemental questionnaires to Shienq Huong's unaffiliated 
suppliers, and we received responses to these supplemental 
questionnaires in April 2010.
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    \1\ The petitioner in this investigation is Berwick Offray LLC 
and its wholly-owned subsidiary Lion Ribbon Company, Inc.
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    Also in April 2010, Dear Year, Roung Shu, and the petitioner 
submitted their main case briefs (i.e., related to all issues except 
those associated with the responses received from the unaffiliated 
suppliers noted above). We also received rebuttal briefs in April 2010 
from the petitioner and the three respondents. In April 2010, we issued 
additional supplemental questionnaires to Shienq Huong's unaffiliated 
suppliers. We received responses to these supplemental questionnaires 
in April and May 2010.
    In May and June 2010, the petitioner, Dear Year, and Shienq Huong 
submitted supplemental case and rebuttal briefs specifically raising 
issues with regards Dear Year's and Shienq Huong's unaffiliated 
suppliers of NWR.
    In June 2010, the petitioner provided revised scope exclusion 
language relating to NWR included in kits. For further discussion, see 
the ``Scope Comments'' section, below. Also in June 2010, the 
Department held a public hearing at the request of the petitioner, Dear 
Year, and Shienq Huong.

Period of Investigation

    The period of investigation (POI) is July 1, 2008, through June 30, 
2009.

Scope of Investigation

    The merchandise subject to the investigation 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 investigation 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 investigation include all 
narrow woven fabrics, tapes, and labels that fall within this written 
description of the scope of this investigation.
    Excluded from the scope of the investigation 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;
    (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 that is (a) affixed to non-subject 
merchandise as a working component of such

[[Page 41806]]

non-subject merchandise, such as where narrow woven ribbon comprises an 
apparel trimming, book marker, bag cinch, or part of an identity card 
holder, or (b) affixed (including by tying) to non-subject merchandise 
as a working component that holds or packages such non-subject 
merchandise or attaches packaging or labeling to such non-subject 
merchandise, such as a ``belly band'' around a pair of pajamas, a pair 
of socks or a blanket;
    (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; and
    (13) narrow woven ribbon(s) included with non-subject merchandise 
in kits, such as a holiday ornament craft kit or a scrapbook kit, in 
which the individual lengths of narrow woven ribbon(s) included in the 
kit are each no greater than eight inches, the aggregate amount of 
marrow woven ribbon(s) included in the kit does not exceed 48 linear 
inches, none of the narrow woven ribbon(s) included in the kit is on a 
spool, and the narrow woven ribbon(s) is only one of multiple items 
included in the kit.
    The merchandise subject to this investigation 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.

Scope Comments

    Prior to the preliminary determination in this case, we received a 
request from certain retailers of NWR that the Department modify the 
scope of the investigation to exclude NWR included in kits or sets in 
``de minimis'' amounts. Because of concerns over whether the proposed 
scope exclusion language would be administrable, we declined to modify 
the scope in the Preliminary Determination, and we did not use the 
language suggested by these retailers or the alternative language 
proposed by the petitioner. See Preliminary Determination, 75 FR at 
7240.
    Following the preliminary determination, on March 24, 2010, and 
June 3, 2010, the petitioner submitted additional language for this 
scope exclusion. Having determined that the language contained in the 
petitioner's June 3, 2010, submission is administrable, we have 
incorporated this language in exclusion 13. See the ``Scope of 
Investigation'' section, above.

Unaffiliated Supplier Costs

    In our Preliminary Determination, we determined that the companies 
weaving the ribbon are the producers of the NWR subject to this 
investigation. See Preliminary Determination, 75 FR at 7242. After 
analyzing the information on the record with respect to this issue, as 
well as the comments received from interested parties, we continue to 
find that the weaver is the producer of NWR. See the ``Issues and 
Decision Memorandum'' (Decision Memorandum) from Edward C. Yang, Acting 
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, Import Administration, to Ronald K. Lorentzen, Deputy 
Secretary for Import Administration, dated July 12, 2010, at Comments 
19 and 20 for further discussion regarding this determination.
    As noted above, from February through May 2010, we received 
responses to our requests for cost information from certain of Dear 
Year and Shienq Huong's unaffiliated suppliers of purchased ribbon. 
With respect to Dear Year, the response from Dear Year's supplier 
revealed that the supplier did not weave the merchandise under 
consideration, but rather it merely purchased the ribbon from another 
company and then resold it to Dear Year. Because insufficient time 
existed to request additional information from the upstream supplier 
prior to the final determination, as facts available for purposes of 
the final determination, we are relying on Dear Year's costs of 
acquisition for the purchased NWR in lieu of actual production costs 
from the weavers as such information is not contained in the record of 
this proceeding. For further discussion, see Comment 19 in the Decision 
Memorandum.
    With respect to Shienq Huong's unaffiliated suppliers, these 
companies provided certain cost information but informed the Department 
that they did not maintain records at a sufficient level of detail to 
provide POI product-specific costs. Because the submitted costs are not 
POI product-specific costs, we are unable to use them in our analysis 
for the final determination. Therefore, as with Dear Year, as facts 
available for purposes of the final determination, we are relying on 
Shienq Huong's costs of acquisition for the purchased NWR ribbon costs 
in lieu of actual costs of production from the weaver, as the weaver is 
unable to provide such costs on a sufficiently specific basis for use 
in the Department's calculations. For further discussion, see Comment 
20 in the Decision Memorandum.
    Section 776(a) of the Act provides that the Department shall apply 
``facts otherwise available'' if (1) necessary information is not on 
the record, or (2) an interested party or any other person (A) 
withholds information that has been requested, (B) fails to provide 
information within the deadlines established, or in the form and manner 
requested by the Department, subject to subsections (c)(1) and (e) of 
section 782 of the Act, (C) significantly impedes a proceeding, or (D) 
provides information that cannot be verified as provided by section 
782(i) of the Act. Here, we lack information necessary to determine the 
unaffiliated suppliers' actual costs and must, therefore, rely upon 
facts available. Although we appropriately requested the unaffiliated 
suppliers' costs, the suppliers did not maintain records at a 
sufficient level of detail to provide such costs in a manner 
sufficiently detailed for use in the Department's margin calculations; 
therefore, we are relying on the acquisition prices for purchased 
ribbon as facts available because they are product-specific and 
constitute the only useable data available with respect to purchased 
ribbon. However, if an antidumping duty order is issued in this 
proceeding, we will require product-specific costs from unaffiliated 
suppliers, if requested. This constitutes notice to the weavers of NWR 
that information must be maintained to allow the reporting of costs on 
a product-specific basis.

Cost of Production

    As discussed in the preliminary determination, we conducted an 
investigation to determine whether the respondents made comparison 
market sales of the foreign like product during the POI at prices below 
their COP within the meaning of section 773(b) of the Act. See 
Preliminary Determination, 75 FR 7236 (Feb. 18, 2010). For this final 
determination, we performed the cost test following the same 
methodology as in the Preliminary Determination.
    We found that 20 percent or more of each respondent's sales of a 
given product during the POI were at prices

[[Page 41807]]

less than the weighted-average COP for this period. Thus, we determined 
that these below-cost sales were made in ``substantial quantities'' 
within an extended period of time and at prices which did not permit 
the recovery of all costs within a reasonable period of time in the 
normal course of trade. See sections 773(b)(1)-(2) of the Act.
    Therefore, for purposes of this final determination, we found that 
each respondent made below-cost sales not in the ordinary course of 
trade. Consequently, we disregarded these sales and used the remaining 
sales as the basis for determining normal value for each respondent 
pursuant to section 773(b)(1) of the Act.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Decision Memorandum, which is 
adopted by this notice. Parties can find a complete discussion of the 
issues raised in this investigation and the corresponding 
recommendations in this public memorandum, which is on file in the 
Central Records Unit, room 1117 of the main Department building.
    In addition, a complete version of the Decision Memorandum can be 
accessed directly on the Web at https://ia.ita.doc.gov/frn/. 
The paper copy and electronic version of the Decision Memorandum are 
identical in content.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we have made certain changes to the margin calculations. 
For a discussion of these changes, see the ``Margin Calculations'' 
section of the Decision Memorandum.

Verification

    As provided in section 782(i) of the Act, we verified the sales and 
cost information submitted by the respondents for use in our final 
determination. We used standard verification procedures including an 
examination of relevant accounting and production records, and original 
source documents provided by the respondents.

Continuation of Suspension of Liquidation

    Pursuant to 735(c)(1)(B) of the Act, we will instruct U.S. Customs 
and Border Protection (CBP) to continue to suspend liquidation of all 
entries of subject merchandise from Taiwan, entered, or withdrawn from 
warehouse, for consumption on or after February 18, 2010, the date of 
publication of the preliminary determination in the Federal Register. 
CBP shall require a cash deposit or the posting of a bond equal to the 
estimated amount by which the normal value exceeds the U.S. price as 
shown below. These instructions suspending liquidation will remain in 
effect until further notice. For Dear Year and Shienq Huong, because 
their estimated weighted-average final dumping margins are zero, we are 
not directing CBP to suspend liquidation of entries of NWR produced and 
exported by these companies.
    Finally, we note that neither Dear Year nor Shienq Huong has 
disclosed for the public record the names of their unaffiliated 
suppliers. Therefore, upon public disclosure of this information to the 
Department, we will notify CBP that Dear Year's and Shienq Huong's 
exports of merchandise produced by these unaffiliated suppliers have 
LTFV investigation margins of zero and thus are excluded from any order 
resulting from this investigation. Until and unless such public 
disclosure is made, we will notify CBP that all entries of merchandise 
produced by Dear Year's and Shienq Huong's unaffiliated suppliers will 
be subject to the ``all others'' rate established in this proceeding.

Final Determination Margins

    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                       Weighted-Average
                Manufacturer/Exporter                  Margin (percent)
------------------------------------------------------------------------
Dear Year Brothers Mfg. Co., Ltd....................                0.00
Roung Shu Industry Corporation......................                4.37
Shienq Huong Enterprise Co., Ltd./Hsien Chan                        0.00
 Enterprise Co., Ltd./Novelty Handicrafts Co., Ltd..
All Others..........................................                4.37
------------------------------------------------------------------------

``All Others'' Rate

    In accordance with section 735(c)(5)(A) of the Act, we have based 
the ``All Others'' rate on the weighted average of the dumping margins 
calculated for the exporters/manufacturers investigated in this 
proceeding. The ``All Others'' rate is calculated exclusive of all de 
minimis margins and margins based entirely on AFA.

Disclosure

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

ITC Notification

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

Return or Destruction of Proprietary Information

    This notice will serve as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    We are issuing and publishing this determination and notice in 
accordance with sections 735(d) and 777(i) of the Act.

    Dated: July 12, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix Issues in Decision Memorandum

General Issues

1. Targeted Dumping
2. The Appropriate Unit of Measure On Which to Base Sales and Cost Data
3. How to Define the Product Characteristic ``Color''
4. Display Unit Costs

Company-Specific Issues

5. Date of Shipment for Dear Year
6. Dear Year's Sales of Traded Goods
7. The Treatment of a Relabeling Billing Adjustment for Dear Year
8. The Treatment of Dear Year's ``Combination'' Ribbons

[[Page 41808]]

9. Clerical Error in Dear Year's Preliminary Dumping Margin
10. Dear Year's Sample Sales
11. Reallocation of Variable Overhead for Dear Year
12. Variables Names in Dear Year's Cost Database
13. The Treatment of the Product Characteristic ``Width'' for Roung Shu
14. Warranty Expenses for Roung Shu
15. Roung Shu's Reporting of the Costs Associated with Different Colors 
of NWR
16. Financial Expenses for Roung Shu
17. Financial Expenses for Shienq Huong
18. Depreciation Expense for Shienq Huong

Issues Related to Unaffiliated Suppliers

19. Dear Year's Unaffiliated Suppliers' Cost of Production (COP)
20. Shienq Huong's Unaffiliated Suppliers' COP
21. Assigning Combination Rates to Dear Year and Shienq Huong
[FR Doc. 2010-17538 Filed 7-16-10; 8:45 am]
BILLING CODE 3510-DS-S