Polyethylene Terephthalate Film, Sheet, and Strip From Taiwan: Preliminary Results of Antidumping Duty Administrative Review, 49902-49907 [2010-20212]
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Department will disregard the margin
and determine an appropriate margin.
For example, in Fresh Cut Flowers From
Mexico; Final Results of Antidumping
Duty Administrative Review, 61 FR
6812, 6814 (February 22, 1996), the
Department disregarded the highest
margin in that case as best information
available (the predecessor to facts
available) because the margin was based
on another company’s uncharacteristic
business expense resulting in an
unusually high margin. Similarly, the
Department does not apply a margin
that has been discredited or judicially
invalidated. See D & L Supply Co. v.
United States, 113 F.3d 1220, 1221 (Fed.
Cir. 1997).
In this review, there are no
circumstances present to indicate that
the selected margin is not appropriate as
AFA. The margin we have selected is
the margin we determined for Terphane
in the LTFV investigation and
represents the highest margin alleged in
the petition. Moreover, because
Terphane refused to respond to the
Department’s questionnaire, there is no
information on the record of this review
that demonstrates that 44.36 percent is
not an appropriate AFA rate for
Terphane. Thus, the Department
considers this dumping margin relevant
for the use of AFA for this
administrative review because this
margin is calculated based on
information from the investigation of
this proceeding.
As the AFA rate is both reliable and
relevant, we find it has probative value.
Therefore, with the information at our
disposal for the corroboration of this
AFA rate, we find that the rate of 44.36
percent is corroborated to the greatest
extent practicable in accordance with
section 776(c) of the Act. We
preliminarily find that use of the rate of
44.36 percent as AFA is sufficiently
high to ensure that Terphane does not
benefit from failing to cooperate in our
review by choosing not to respond to
the Department’s antidumping
questionnaire and otherwise participate
in the Department’s administrative
review.
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Preliminary Results of Review
We preliminarily determine that the
following antidumping duty margin
exists for the period November 6, 2008
through October 31, 2009:
Producer/exporter
Terphane, Inc ...........................
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Disclosure and Public Comment
Interested parties may submit case
briefs no later than 30 days after the
date of publication of these preliminary
results of review. See 19 CFR
351.309(c)(1)(ii). Rebuttal briefs, limited
to issues raised in the case briefs, may
be filed no later than five days after the
time limit for filing the case briefs. See
19 CFR 351.309(d)(1). Parties who
submit case or rebuttal briefs in this
proceeding are requested to submit with
each argument a statement of the issue.
Parties are also encouraged to provide a
summary of the arguments not to exceed
five pages and a table of statutes,
regulations, and cases cited. See 19 CFR
351.309(c)(2).
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 within 30 days of
publication of these preliminary results.
See 19 CFR 351.310(c). Requests should
contain the following information:
(1) The party’s name, address, and
telephone number; (2) the number of
participants; and (3) a list of the issues
to be discussed. Issues raised in the
hearing will be limited to those raised
in the case and rebuttal briefs. Any
hearing, if requested, will be held 37
days after the date of publication, or the
first business day thereafter, unless the
Department alters the date pursuant to
19 CFR 351.310(d)(1).
The Department intends to issue the
final results of this administrative
review, which will include the results of
its analysis of issues raised in any such
comments, within 120 days of
publication of these preliminary results,
pursuant to section 751(a)(3)(A) of the
Act.
Assessment Rates
Upon issuance of the final results, the
Department will determine, and CBP
shall assess, antidumping duties on all
appropriate entries. We preliminarily
intend to instruct CBP to apply a
dumping margin of 44.36 percent ad
valorem to PET film from Brazil that
was produced and/or exported by
Terphane and entered, or withdrawn
from warehouse, for consumption
during the POR. The Department
intends to issue appropriate assessment
instructions to CBP 15 days after the
date of publication of the final results of
review.
Cash Deposit Requirements
Margin
(percent)
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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
occurred and the subsequent assessment
of double antidumping duties.
These preliminary results of
administrative review are issued and
published in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: August 9, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–20188 Filed 8–13–10; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–583–837]
Polyethylene Terephthalate Film,
Sheet, and Strip From Taiwan:
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) is conducting an
AGENCY:
The following cash-deposit
requirements will be effective upon
publication of the notice of final results
44.36
of administrative review for all
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shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results, as
provided by section 751(a)(2)(C) of the
Act: (1) The cash deposit rate for
Terphane will be the rate established in
the final results of this review; (2) for
other previously reviewed or
investigated companies, the cashdeposit rate will continue to be the
company-specific rate published for the
most recent period; (3) 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; (4) if neither the
exporter nor the manufacturer has its
own rate, the cash-deposit rate will be
28.72 percent, the all-others rate
established in the Final Determination.
These deposit requirements, when
imposed, shall remain in effect until
further notice.
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administrative review of the
antidumping duty order on
polyethylene terephthalate film, sheet,
and strip (PET Film) from Taiwan. This
review covers respondents, Nan Ya
Plastics Corporation, Ltd., (Nan Ya), as
well as Shinkong Synthetic Fibers
Corporation (SSFC) and Shinkong
Materials Technology Co. Ltd. (SMTC)
(collectively, Shinkong), producers and
exporters of PET Film from Taiwan.
The Department preliminarily
determines that sales of PET Film from
Taiwan have been made below normal
value during the period of review. The
preliminary results are listed below in
the section titled ‘‘Preliminary Results of
Review.’’ Interested parties are invited to
comment on these preliminary results.
DATES: Effective Date: August 16, 2010.
FOR FURTHER INFORMATION CONTACT:
Gene Calvert, Martha Douthit, or Jun
Jack Zhao, AD/CVD Operations, Office
6, Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW., Washington,
DC 20230; telephone: (202) 428–3586,
(202) 482–5050, or (202) 482–1396,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 1, 2002, the Department
published in the Federal Register the
antidumping duty order on PET Film
from Taiwan. See Amended Final
Antidumping Duty Determination of
Sales at Less Than Fair Value and
Antidumping Duty Order: Polyethylene
Terephthalate Film, Sheet, and Strip
(PET Film) from Taiwan, 67 FR 46566
(July 1, 2002).
On July 1, 2009, the Department
published a notice of opportunity to
request an administrative review of this
order. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation: Opportunity
to Request Administrative Review, 74
FR 31406 (July 1, 2009). In response, on
July 30, 2009, the domestic interested
parties DuPont Teijin Films, Mitsubishi
Polyester Film of America, SKC, Inc.,
and Toray Plastics (America), Inc.
requested that the Department conduct
an administrative review of Nan Ya and
Shinkong’s sales of PET Film in the U.S.
market.
On August 25, 2009, the Department
initiated an administrative review of
Nan Ya and Shinkong. See Initiation of
Antidumping and Countervailing
Administrative Reviews and Request for
Revocation in Part, 74 FR 42873 (August
25, 2009). On September 23, 2009, the
Department issued an antidumping duty
questionnaire to the respondents.
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During April and May 2010, the
Department issued two supplemental
questionnaires to Nan Ya and one to
Shinkong regarding their sales
information. Separately, the Department
issued supplemental questionnaires to
both respondents from May through July
regarding their reported cost
information. All responses were
submitted on a timely basis.
On March 25, 2010 the Department
extended the time period for issuing the
preliminary results of the administrative
review.1 See Polyethylene Terephthalate
Film, Sheet and Strip from Taiwan:
Extension of Time Limit for Preliminary
Results of Antidumping Duty
Administrative Review, 75 FR 14423
(March 25, 2010). The revised deadline
fell on Saturday, August 7, 2010. It is
the Department’s long-standing practice,
however, to issue a determination the
next business day when the statutory
deadline falls on a weekend, federal
holiday, or any other day when the
Department is closed. See Notice of
Clarification: Application of ‘‘Next
Business Day’’ Rule for Administrative
Determination Deadlines Pursuant to
the Tariff Act of 1930, As Amended, 70
FR 24533 (May 10, 2005). Accordingly,
the deadline for the completion of these
preliminary results was revised to
August 9, 2010.
On July 29, 2010, and August 4, 2010,
we received comments from Petitioners
offering suggestions for these
preliminary results of review for Nan Ya
and Shinkong, respectively. The
Department did not have adequate time
to consider these comments in their
entirety for these preliminary results.
We will, however, consider them for
any upcoming supplemental
questionnaires, for verification, if
conducted, and for the final results of
review.
Scope of the Order
For purposes of this administrative
review, the products covered are all
gauges of raw, pretreated, or primed
polyethylene terephthalate film,
whether extruded or coextruded.
Excluded 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
1 The Department had previously exercised its
discretion to toll deadlines for the duration of the
closure of the Federal Government from February
5 through February 12, 2010. Thus, all deadlines in
this segment of the proceeding, including these
preliminary results, had already been extended by
seven days. See Memorandum to the Record from
Ronald Lorentzen, DAS for Import Administration,
regarding ‘‘Tolling of Administrative Deadlines As
a Result of the Government Closure During the
Recent Snowstorm,’’ dated February 12, 2010.
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0.00001 inches thick. Imports of PET
Film are currently classifiable in the
Harmonized Tariff Schedule of the
United States (HTSUS) under item
number 3920.62.00. HTSUS
subheadings are provided for
convenience and customs purposes. The
written description of the scope of this
proceeding is dispositive.
Period of Review
The period of review (POR) is July 1,
2008, through June 30, 2009.
Collapsing of SSFC and SMTC
The Department preliminarily
determines that SSFC and SMTC should
be treated as a single entity (i.e.,
Shinkong) for purposes of calculating an
antidumping margin pursuant to 19 CFR
351.401(f). SMTC was established in
October 2004 and it is a wholly-owned
subsidiary of SSFC. SSFC and SMTC
produce similar or identical
merchandise. During the POR, all of the
subject merchandise under review
produced by SMTC was sold to SSFC
for SSFC’s re-sale in the home market,
U.S. market and third countries. The
level of common ownership between
SSFC and SMTC creates a significant
potential for manipulation of price or
production.
Affiliation of Nan Ya With U.S.
Customers
In the less-than-fair-value
investigation, and in the first
administrative review, the Department
determined that Nan Ya, through a
family grouping, was in a position of
legal and operational control of three
U.S. customers, in accordance with
section 771(33)(F) of the Tariff Act of
1930, as amended (the Act). See
Polyethylene Terephthalate Film, Sheet,
and Strip (PET Film) from Taiwan,
Notice of Final Determination of Sales
at Less Than Fair Value: 67 FR 35474,
May 20, 2002. See also, ‘‘Affiliation of
Nan Ya Plastic Corporation, Ltd., with
Certain U.S. Customers,’’ dated April 1,
2004. Members of a family involved in
the ownership and management of Nan
Ya also shared ownership and
management of these three U.S.
companies with potential to act in
concert or act out of common interest to
exert restraint or direction over a
company’s activities.
On April 6, 2010, and May 27, 2010,
the Department requested that Nan Ya
provide additional information
regarding Nan Ya’s relationship with the
U.S. customers. In this review period,
Nan Ya sold the subject merchandise to
these same U.S. companies. However,
Nan Ya states that the family links are
no longer present due to the passing of
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Nan Ya’s late chairman in October 2008.
Yet, the passing of a single member does
not establish that Nan Ya and the three
U.S. companies are no longer directly or
indirectly, legally and operationally
controlled by, or under common
control, control of the family grouping.
Based on Nan Ya’s responses to the
Department’s questionnaires regarding
ownership and management of the three
U.S. companies, in addition to evidence
placed on the record resulting from the
Department’s independent research
regarding the relationship between Nan
Ya and these U.S. customers, the
Department preliminarily determines
that Nan Ya continues to be affiliated
with these U.S. customers through a
family grouping. See Memorandum to
Barbara E. Tillman, Director, AD/CVD
Operations, Office 6, ‘‘Affiliation of Nan
Ya Plastics Corporation, Ltd. (Nan Ya)
with Certain U.S. Customers,’’ dated
August 9, 2010.2 The family grouping
still has the potential to act in concert
or act out of common interest, to exert
restraint or direction over the
companies’ activities.
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Comparisons to Normal Value
To determine whether sales of PET
Film were made at less than normal
value (NV), we compared the
respondents’ export price (EP) or
constructed export price (CEP) sales
made in the United States to unaffiliated
customers to NV, as described below in
the ‘‘United States Price’’ and ‘‘Normal
Value’’ sections of this notice. In
accordance with section 777A(d)(2) of
the Act, we compared the EP and CEP
of individual transactions to monthly
weighted-average NVs.
Product Comparisons
Pursuant to section 771(16) of the Act,
we determined that products sold by the
respondents, as described in the ‘‘Scope
of the Order’’ section, above, and sold in
Taiwan during the POR, to be foreign
like products for purposes of
determining appropriate product
comparisons to U.S. sales. We have
relied on four criteria to match U.S.
sales of subject merchandise to
comparison-market sales: specification,
thickness, thickness category, and
surface treatment. Where there were no
sales of identical merchandise in the
home market to compare to U.S. sales,
we compared U.S. sales to the most
similar foreign like product on the basis
of the characteristics listed above.
2 We
have also placed on the record our Nan Ya
affiliations analysis from the most-recent
administrative review. See Memorandum to the
File, ‘‘Nan Ya Plastics Corporation, Ltd. Affiliations
Analysis for the Period December 21, 2001 through
June 30, 2003,’’ dated concurrently with this notice.
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Nan Ya reported additional internal
codes and product model matching
characteristics to indicate the special
features of certain subject merchandise
types. However, we have determined
not to include these additional product
model matching characteristics for the
purpose of these preliminary results.
Interested parties will have the
opportunity to comment on the use of
these additional product model
matching characteristics in their case
briefs.
Level of Trade
To determine whether NV sales are at
a different level of trade (LOT) than U.S.
sales, we examine selling functions
along the chain of distribution between
the respondent and the unaffiliated
customer for EP sales and between the
respondent and the affiliated U.S.
importer for CEP sales. If the
comparison market sales are at a
different LOT, 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 pursuant to section
773(a)(7)(A) of the Act.
In implementing these principles, we
examined information provided by Nan
Ya regarding the selling functions
involved in its home market and U.S.
sales, including a description of these
selling functions, listed in Exhibit SE
A–5 of Nan Ya’s May 5, 2010
submission. Based on our analysis, we
have preliminarily determined that Nan
Ya sold at one LOT in the home market
and one LOT in the United States
(including both EP and CEP sales), as
claimed by Nan Ya in its questionnaire
responses. We have also preliminarily
determined that the home market and
U.S. LOTs are the same, and that,
therefore, a LOT adjustment is not
warranted. We note that Nan Ya did not
request a LOT adjustment.
Quarterly COP and CV
While we have analyzed the quarterly
cost of production (COP) and
constructed value (CV) information from
both Nan Ya and Shinkong, we note that
we have issued additional supplemental
questions on this issue. We intend to
fully examine all of the quarterly COP
and CV information after the
preliminary results and determine
whether it is appropriate to use shorter
cost averaging periods for COP and CV
in a post-preliminary analysis
memorandum.
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Arm’s-Length Test
The Department may calculate NV
based on a sale to an affiliated party
only if it is satisfied that the price to the
affiliated party is comparable to the
prices at which sales are made to parties
not affiliated with the exporter or
producer; i.e., sales to home market
affiliates must be at arm’s-length. See 19
CFR 351.403(c). Sales to affiliated
customers for consumption in the home
market that are determined not to be at
arm’s-length are excluded from our
analysis. To test whether sales are made
at arm’s-length prices, the Department
compares the prices of sales of
comparable merchandise to affiliated
and unaffiliated customers, net of all
movement charges, direct selling
expenses, and packing. Pursuant to 19
CFR 351.403(c), and in accordance with
the Department’s practice, when the
prices charged to an affiliated party are,
on average, between 98 and 102 percent
of the prices charged to unaffiliated
parties for merchandise comparable to
that sold to the affiliated party, we
determine that the sales to the affiliated
party are at arm’s-length. See
Antidumping Proceedings: Affiliated
Party Sales in the Ordinary Course of
Trade, 67 FR 69186, 69187 (November
15, 2002).
In this proceeding, Nan Ya did not
have sales to affiliates in the home
market. Shinkong reported sales of the
foreign like product to affiliated
customers who consumed the
purchased material. Shinkong’s sales to
these affiliated home market customers
did not pass the arm’s-length test, and
were therefore excluded from our
analysis. See section 773(b)(1) of the
Act.
Nan Ya Margin Calculation
Export Price and Constructed Export
Price
In calculating the antidumping duty
margins for Nan Ya, we used EP, as
defined in section 772(a) of the Act, for
all sales that Nan Ya made directly to
unaffiliated U.S. customers. As
discussed above, however, we have
preliminarily determined that certain
U.S. customers were affiliated with Nan
Ya during the POR. Thus, for such sales,
we used CEP in our margin calculations,
as defined in section 772(b) of the Act.
Normal Value
A. Selection of Comparison Market
To determine whether there was a
sufficient volume of sales of PET Film
in the home market to serve as a viable
basis for calculating normal value, we
compared the volume of respondent’s
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home market sales of the foreign like
product to the volume of their U.S. sales
of the subject merchandise, in
accordance with section 773(a)(1) of the
Act. In accordance with section
773(a)(1)(B) of the Act, and 19 CFR
351.404(b), because Nan Ya’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 of the subject merchandise,
we have determined that the home
market was viable for comparison
purposes.
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B. Cost of Production Analysis
Pursuant to 773(b)(2)(A)(ii) of the Act,
because the Department had disregarded
certain of Nan Ya’s sales in the most
recently completed review of this order,
the Department had reasonable grounds
to believe or suspect that Nan Ya made
home market sales at prices below COP
in this review. As a result, the
Department was directed under section
773(b) of the Act to determine whether
Nan Ya made home market sales during
the POR at prices below COP.
C. Calculation of COP
In accordance with section 773(b)(3)
of the Act, we calculated COP based on
the sum of Nan Ya’s cost of materials
and fabrication for the foreign like
product, plus amounts for selling,
general, and administrative expenses
(SG&A), interest expenses and home
market packing costs. See Memorandum
to Neal M. Halper, Director, Office of
Accounting, ‘‘Cost of Production and
Constructed Value Calculation
Adjustments for the Preliminary
Results—Nan Ya Plastics Corporation,’’
dated August 9, 2010. We applied the
major input rule under section 773(f)(3)
of the Act to Nan Ya’s purchases of
purified terephthalic acid (PTA) from an
affiliated supplier and adjusted Nan
Ya’s reported cost of manufacturing to
reflect the higher of transfer price,
market price or COP. We eliminated the
inter-divisional profit arising from
ethylene glycol transactions between
Nan Ya’s Polyester Fiber division and
one of its petrochemicals divisions. In
addition, we adjusted Nan Ya’s reported
cost of manufacturing to include
excluded pension costs and surplus
fixed costs. Finally, we adjusted Nan
Ya’s reported total general and
administrative expense to include the
cost of temporary plant shutdowns.
These calculations include revisions by
the Department to the COP information
reported by Nan Ya.
D. COP Test
On a product-specific basis, we
compared the revised COP figures to
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home market prices net of applicable
billing adjustments, discounts and
rebates, movement charges, selling
expenses, and packing to determine
whether home market sales had been
made at prices below COP. In
determining whether to disregard home
market sales made at prices below 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. In accordance
with section 773(b)(2)(C) of the Act,
where less than 20 percent of a given
product was sold at prices less than
COP, we did not disregard any belowcost sales of that product, because the
below-cost sales were not made in
‘‘substantial quantities.’’ Where 20
percent or more of a given product was
sold at prices less than COP, we
disregarded the below cost sales
because: (1) They were made within an
extended period of time in ‘‘substantial
quantities,’’ in accordance with sections
773(b)(2)(B) and (C) of the Act; and, (2)
based on our comparison of prices to
weighted-average COP figures for the
POR, they were made 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. Based on this analysis, we
found that Nan Ya did have below cost
sales that must be disregarded. We used
the remaining home market sales as the
basis for determining NV, in accordance
with section 773(b)(1) of the Act.
E. Constructed Value
After disregarding certain sales as
below cost, as described above, home
market sales of contemporaneous
identical and similar products existed
that allowed for price-to-price
comparisons for all margin calculations.
Therefore, the Department did not need
to rely on constructed value for any
calculations for this preliminary
determination.
F. Price-to-Price Comparisons
We calculated NV based on packed
prices to unaffiliated customers in the
home market. We used Nan Ya’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 cost differences
attributable to the physical differences
between the products compared,
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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. 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.
Shinkong’s Margin Calculation
Export Price
In calculating the antidumping duty
margins for Shinkong, we used EP, as
defined in section 772(a) of the Act.
Normal Value
A. Selection of Comparison Market
To determine whether there was a
sufficient volume of sales of PET Film
in the home market to serve as a viable
basis for calculating normal value, we
compared the volume of respondent’s
home market sales of the foreign like
product to the volume of their U.S. sales
of the subject merchandise, in
accordance with section 773(a)(1) of the
Act. In accordance with section
773(a)(1)(B) of the Act, and 19 CFR
351.404(b), because Shinkong’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 of the subject merchandise,
we have determined that the home
market was viable for comparison
purposes.
B. Cost of Production Analysis
Pursuant to 773(b)(2)(A)(ii) of the Act,
because the Department had disregarded
certain of Shinkong’s sales in the most
recently completed review of this order,
the Department had reasonable grounds
to believe or suspect that Shinkong
made home market sales at prices below
COP in this review. As a result, the
Department was directed under section
773(b) of the Act to determine whether
Shinkong made home market sales
during the POR at prices below COP.
C. Calculation of COP
In accordance with section 773(b)(3)
of the Act, we calculated COP based on
the sum of Shinkong’s cost of materials
and fabrication for the foreign like
product, plus amounts for SG&A,
interest expenses and home market
packing costs. These calculations
include revisions by the Department to
the COP information reported by
Shinkong. We adjusted SSFC’s total
general and administrative expenses to
include the cost of temporary plant
shut-downs for both SSFC and its
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49906
Federal Register / Vol. 75, No. 157 / Monday, August 16, 2010 / Notices
affiliated producer of merchandise
under consideration, SMTC. See
Memorandum to Neal M. Halper,
Director, Office of Accounting, ‘‘Cost of
Production and Constructed Value
Calculation Adjustments for the
Preliminary Results—Shinkong
Synthetic Fibers Corporation,’’ dated
August 9, 2010.
sroberts on DSKD5P82C1PROD with NOTICES
D. COP Test
On a product-specific basis, we
compared the revised COP figures to
home market prices net of applicable
billing adjustments, discounts and
rebates, movement charges, selling
expenses, and packing to determine
whether home market sales had been
made at prices below COP. In
determining whether to disregard home
market sales made at prices below 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. In accordance
with section 773(b)(2)(C) of the Act,
where less than 20 percent of a given
product was sold at prices less than
COP, we did not disregard any belowcost sales of that product, because the
below-cost sales were not made in
‘‘substantial quantities.’’ Where 20
percent or more of a given product was
sold at prices less than COP, we
disregarded the below-cost sales
because: (1) They were made within an
extended period of time in ‘‘substantial
quantities,’’ in accordance with sections
773(b)(2)(B) and (C) of the Act; and, (2)
based on our comparison of prices to
weighted-average COP figures for the
POR, they were made 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. Based on this analysis, we
found that Shinkong did have belowcost sales that must be disregarded. We
used the remaining home market sales
as the basis for determining NV, in
accordance with section 773(b)(1) of the
Act.
E. Constructed Value
After disregarding certain sales as
below cost, as described above, home
market sales of contemporaneous
identical and similar products existed
that allowed for price-to-price
comparisons for all margin calculations.
Therefore, the Department did not need
to rely on constructed value for any
calculations for this preliminary
determination.
VerDate Mar<15>2010
18:51 Aug 13, 2010
Jkt 220001
F. Price-to-Price Comparisons
We calculated NV based on packed
prices to unaffiliated customers in the
home market.3 We used Shinkong’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 cost differences
attributable to the physical differences
between the products compared,
pursuant to section 773(a)(6)(C)(ii) of
the Act and 19 CFR 351.411. We also
made adjustments for differences in
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. 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.
submit case briefs within 30 days of the
date of publication of this notice.
Rebuttal briefs, which must be limited
to issues raised in the case briefs, must
be filed not later than five days after the
time limit for filing case briefs. See 19
CFR 351.309(c) and (d) (for a further
discussion of case briefs and rebuttal
briefs, respectively). Parties who submit
case briefs or rebuttal briefs in this
review 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.
Executive summaries should be limited
to five pages total, including footnotes.
We intend to issue the final results of
this administrative review, including
the results of our analysis of issues
raised in the written comments, within
120 days of publication of these
preliminary results in the Federal
Register. See section 751(a)(3)(A) of the
Act.
Assessment Rates
The Department shall determine, and
U.S. Customs and Border Protection
(CBP) shall assess, antidumping duties
on all appropriate entries. We will
instruct CBP to liquidate entries of
merchandise produced and/or exported
by Nan Ya and Shinkong. The
Department intends to issue assessment
Preliminary Results of Review
instructions to CBP 15 days after the
date of publication of the final results of
As a result of our review, we
review. For assessment purposes, where
preliminarily determine the following
possible, we calculated importerweighted-average dumping margins
exist for the period July 1, 2008, through specific (or customer-specific) ad
valorem assessment rates based on the
June 30, 2009.
ratio of the total amount of the dumping
duties calculated for the examined sales
Weighted-average
Manufacturer/exporter
margin (percent)
to the total entered value of those same
sales. See 19 CFR 351.212(b). However,
Nan Ya Plastics Corwhere the respondents did not report
poration, Ltd. .............
19.78
the entered value for their sales, we will
Shinkong Synthetic Fibers Corporation .......
5.89 calculate importer-specific (or customerspecific) per unit duty assessment rates.
We will instruct CBP to assess
Disclosure and Public Comment
antidumping duties on all appropriate
We will disclose the calculations used entries covered by this review if any
in our analysis to parties in this review
assessment rate calculated in the final
within five days of the date of
results of this review is above de
publication of this notice in accordance minimis.
with 19 CFR 351.224(b). Any interested
Cash Deposit Requirements
party may request a hearing within 30
days of the publication of this notice in
The following deposit requirements
the Federal Register. See 19 CFR
will be effective for all shipments of
351.310. If a hearing is requested, the
PET Film from Taiwan entered, or
Department will notify interested
withdrawn from warehouse, for
parties of the hearing schedule.
consumption on or after the date of
Interested parties are invited to
publication of the final results of this
comment on the preliminary results of
administrative review, as provided for
this review. Interested parties must
by section 751(a)(2)(C) of the Act: (1)
The cash deposit rate for companies
3 Shinkong sold a small amount of foreign like
under review will be the rate
product to its affiliates in the home market for
established in the final results of this
consumption during the POR. These sales have
review (except, if the rate is zero or de
failed the arm’s-length test and therefore have been
excluded from the calculation of NV.
minimis, i.e., less than 0.5 percent, no
Currency Conversions
Pursuant to section 773(A) of the Act
and 19 CFR 351.415, we made currency
conversions for Nan Ya’s and
Shinkong’s sales based on the daily
exchange rates in effect on the dates of
the relevant U.S. sales as certified by the
Federal Reserve Bank of New York.
PO 00000
Frm 00021
Fmt 4703
Sfmt 4703
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16AUN1
Federal Register / Vol. 75, No. 157 / Monday, August 16, 2010 / Notices
cash deposit will be required); (2) for
previously reviewed or investigated
companies not listed above, the cash
deposit rate will continue to be the
company-specific rate published for the
most recent period; (3) if the exporter is
not a firm covered in this review, a prior
review, or the less-than-fair-value
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, (4) 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 for this proceeding, 2.40
percent. These deposit requirements,
when imposed, shall remain in effect
until further notice.
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
Department’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of doubled antidumping duties.
These preliminary results of
administrative review are issued and
published in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: August 9, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–20212 Filed 8–13–10; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–475–818]
Certain Pasta From Italy: Notice of
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests by
interested parties, the Department of
Commerce (‘‘the Department’’) is
conducting an administrative review of
the antidumping duty order on certain
pasta (‘‘pasta’’) from Italy for the period
of review (‘‘POR’’) July 1, 2008, through
June 30, 2009. This review covers two
producers/exporters of subject
sroberts on DSKD5P82C1PROD with NOTICES
AGENCY:
VerDate Mar<15>2010
18:51 Aug 13, 2010
Jkt 220001
merchandise: Pastificio Attilio
Mastromauro—Pasta Granoro S.r.L.
(‘‘Granoro’’) and Pastaficio Lucio
Garofalo S.p.A. (‘‘Garofalo’’).1 We
preliminarily determine that during the
POR, Granoro and Garofalo sold subject
merchandise at less than normal value
(‘‘NV’’). If these preliminary results are
adopted in the final results of this
administrative review, we will instruct
U.S. Customs and Border Protection
(‘‘CBP’’) to assess antidumping duties on
all appropriate entries of subject
merchandise during the POR. Interested
parties are invited to comment on these
preliminary results.
DATES: Effective Date: August 16, 2010.
FOR FURTHER INFORMATION CONTACT:
Victoria Cho or Jolanta Lawska AD/CVD
Operations, Office 3, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–5075 or (202) 482–
8362, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 24, 1996, the Department
published in the Federal Register the
antidumping duty order on pasta from
Italy. See Notice of Antidumping Duty
Order and Amended Final
Determination of Sales at Less Than
Fair Value: Certain Pasta From Italy, 61
FR 38547 (July 24, 1996).
On July 1, 2009, the Department
published a notice of opportunity to
request an administrative review of the
antidumping duty order on certain pasta
from Italy. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation: Opportunity
to Request Administrative Review, 74
FR 31406 (July 1, 2009). We received
requests for review from petitioners 2
and individual Italian exporters/
producers of pasta, in accordance with
19 CFR 351.213(b)(1) and (2). On August
26, 2008, the Department published the
notice of initiation of this antidumping
duty administrative review covering the
period July 1, 2008, through June 30,
2009, listing the following companies as
respondents: Domenico Paone fu
Erasmo, S.p.A. (‘‘Erasmo’’), Fasolino
Foods Company, Inc. and its affiliate
Euro-American Foods Group, Inc.
1 At the Initiation of the instant review, the
Department incorrectly spelled ‘‘Garofalo’’ as
‘‘Garafalo.’’ See Initiation FR of Antidumping and
Countervailing Duty Administrative Reviews and
Request for Revocation in Part, 74 FR 42873, 42875.
The Department acknowledges that the correct
spelling is ‘‘Garofalo.’’
2 New World Pasta Company, American Italian
Pasta Company, and Dakota Growers Pasta
Company, (collectively, ‘‘Petitioners’’).
PO 00000
Frm 00022
Fmt 4703
Sfmt 4703
49907
(‘‘Fasolino/Euro-American Foods’’),
Garofalo, Granoro, Industria Alimentare
Colavita, S.p.A. (‘‘Indalco’’), P.A.M.
S.p.A. (‘‘PAM’’), and Pasta Lensi S.r.L.
(‘‘Lensi’’). See Initiation of Antidumping
and Countervailing Duty Administrative
Reviews and Request for revocation in
Part, 74 FR 42873 (August 25, 2009)
(‘‘Initiation Notice’’).
As explained in the memorandum
from the Deputy Assistant Secretary for
Import Administration, the Department
has exercised its discretion to toll
deadlines for the duration of the closure
of the Federal Government from
February 5, through February 12, 2010.
Thus, all deadlines in this segment of
the proceeding have been extended by
seven days. The revised deadline for the
preliminary results of this review is now
August 9, 2010. See Memorandum to
the Record from Ronald Lorentzen, DAS
for Import Administration, regarding
‘‘Tolling of Administrative Deadlines As
a Result of the Government Closure
During the Recent Snowstorm,’’ dated
February 12, 2010.
On September 8, 2009, the
Department announced its intention to
select mandatory respondents based on
CBP Data. See Memorandum from
George McMahon to Melissa Skinner
entitled ‘‘Customs and Border Protection
Data for Selection of Respondents for
Individual Review,’’ dated September 8,
2009. On September 11, 2009, the
petitioners withdrew their request for
review with respect to Erasmo, Garofalo,
Indalco, and PAM. As a result of the
petitioner’s request to withdraw the
aforementioned companies, the
Department issued a memorandum on
October 21, 2009, which indicated that
respondent selection was no longer
necessary in the instant review because
it was practicable for the Department to
review the remaining companies, Lensi,
Granoro, Garofalo and Fasolino/EuroAmerican Foods. On October 30, 2009,
Lensi withdrew its request for a review.
On February 22, 2010, the petitioners
withdrew their request for review with
respect to Fasolino/Euro-American
Foods.
As a result of withdrawals of request
for review, we rescinded this review, in
part, with respect to Erasmo, Lensi,
Indalco, PAM, and Fasolino/EuroAmerican Foods. We did not rescind the
review with respect to Garofalo because
it self-requested a review and that
request was not withdrawn. See Certain
Pasta from Italy: Notice of Partial
Rescission of Antidumping Duty
Administrative Review and Extension of
Time Limit for the Preliminary Results
of Antidumping Duty Administrative
Review, FR 75 10464 (March 8, 2010)
E:\FR\FM\16AUN1.SGM
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Agencies
[Federal Register Volume 75, Number 157 (Monday, August 16, 2010)]
[Notices]
[Pages 49902-49907]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-20212]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-583-837]
Polyethylene Terephthalate Film, Sheet, and Strip From Taiwan:
Preliminary Results of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an
[[Page 49903]]
administrative review of the antidumping duty order on polyethylene
terephthalate film, sheet, and strip (PET Film) from Taiwan. This
review covers respondents, Nan Ya Plastics Corporation, Ltd., (Nan Ya),
as well as Shinkong Synthetic Fibers Corporation (SSFC) and Shinkong
Materials Technology Co. Ltd. (SMTC) (collectively, Shinkong),
producers and exporters of PET Film from Taiwan.
The Department preliminarily determines that sales of PET Film from
Taiwan have been made below normal value during the period of review.
The preliminary results are listed below in the section titled
``Preliminary Results of Review.'' Interested parties are invited to
comment on these preliminary results.
DATES: Effective Date: August 16, 2010.
FOR FURTHER INFORMATION CONTACT: Gene Calvert, Martha Douthit, or Jun
Jack Zhao, AD/CVD Operations, Office 6, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW., Washington, DC 20230; telephone:
(202) 428-3586, (202) 482-5050, or (202) 482-1396, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 1, 2002, the Department published in the Federal Register
the antidumping duty order on PET Film from Taiwan. See Amended Final
Antidumping Duty Determination of Sales at Less Than Fair Value and
Antidumping Duty Order: Polyethylene Terephthalate Film, Sheet, and
Strip (PET Film) from Taiwan, 67 FR 46566 (July 1, 2002).
On July 1, 2009, the Department published a notice of opportunity
to request an administrative review of this order. See Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation:
Opportunity to Request Administrative Review, 74 FR 31406 (July 1,
2009). In response, on July 30, 2009, the domestic interested parties
DuPont Teijin Films, Mitsubishi Polyester Film of America, SKC, Inc.,
and Toray Plastics (America), Inc. requested that the Department
conduct an administrative review of Nan Ya and Shinkong's sales of PET
Film in the U.S. market.
On August 25, 2009, the Department initiated an administrative
review of Nan Ya and Shinkong. See Initiation of Antidumping and
Countervailing Administrative Reviews and Request for Revocation in
Part, 74 FR 42873 (August 25, 2009). On September 23, 2009, the
Department issued an antidumping duty questionnaire to the respondents.
During April and May 2010, the Department issued two supplemental
questionnaires to Nan Ya and one to Shinkong regarding their sales
information. Separately, the Department issued supplemental
questionnaires to both respondents from May through July regarding
their reported cost information. All responses were submitted on a
timely basis.
On March 25, 2010 the Department extended the time period for
issuing the preliminary results of the administrative review.\1\ See
Polyethylene Terephthalate Film, Sheet and Strip from Taiwan: Extension
of Time Limit for Preliminary Results of Antidumping Duty
Administrative Review, 75 FR 14423 (March 25, 2010). The revised
deadline fell on Saturday, August 7, 2010. It is the Department's long-
standing practice, however, to issue a determination the next business
day when the statutory deadline falls on a weekend, federal holiday, or
any other day when the Department is closed. See Notice of
Clarification: Application of ``Next Business Day'' Rule for
Administrative Determination Deadlines Pursuant to the Tariff Act of
1930, As Amended, 70 FR 24533 (May 10, 2005). Accordingly, the deadline
for the completion of these preliminary results was revised to August
9, 2010.
---------------------------------------------------------------------------
\1\ The Department had previously exercised its discretion to
toll deadlines for the duration of the closure of the Federal
Government from February 5 through February 12, 2010. Thus, all
deadlines in this segment of the proceeding, including these
preliminary results, had already been extended by seven days. See
Memorandum to the Record from Ronald Lorentzen, DAS for Import
Administration, regarding ``Tolling of Administrative Deadlines As a
Result of the Government Closure During the Recent Snowstorm,''
dated February 12, 2010.
---------------------------------------------------------------------------
On July 29, 2010, and August 4, 2010, we received comments from
Petitioners offering suggestions for these preliminary results of
review for Nan Ya and Shinkong, respectively. The Department did not
have adequate time to consider these comments in their entirety for
these preliminary results. We will, however, consider them for any
upcoming supplemental questionnaires, for verification, if conducted,
and for the final results of review.
Scope of the Order
For purposes of this administrative review, the products covered
are all gauges of raw, pretreated, or primed polyethylene terephthalate
film, whether extruded or coextruded. Excluded 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 thick. Imports of PET Film are
currently classifiable in the Harmonized Tariff Schedule of the United
States (HTSUS) under item number 3920.62.00. HTSUS subheadings are
provided for convenience and customs purposes. The written description
of the scope of this proceeding is dispositive.
Period of Review
The period of review (POR) is July 1, 2008, through June 30, 2009.
Collapsing of SSFC and SMTC
The Department preliminarily determines that SSFC and SMTC should
be treated as a single entity (i.e., Shinkong) for purposes of
calculating an antidumping margin pursuant to 19 CFR 351.401(f). SMTC
was established in October 2004 and it is a wholly-owned subsidiary of
SSFC. SSFC and SMTC produce similar or identical merchandise. During
the POR, all of the subject merchandise under review produced by SMTC
was sold to SSFC for SSFC's re-sale in the home market, U.S. market and
third countries. The level of common ownership between SSFC and SMTC
creates a significant potential for manipulation of price or
production.
Affiliation of Nan Ya With U.S. Customers
In the less-than-fair-value investigation, and in the first
administrative review, the Department determined that Nan Ya, through a
family grouping, was in a position of legal and operational control of
three U.S. customers, in accordance with section 771(33)(F) of the
Tariff Act of 1930, as amended (the Act). See Polyethylene
Terephthalate Film, Sheet, and Strip (PET Film) from Taiwan, Notice of
Final Determination of Sales at Less Than Fair Value: 67 FR 35474, May
20, 2002. See also, ``Affiliation of Nan Ya Plastic Corporation, Ltd.,
with Certain U.S. Customers,'' dated April 1, 2004. Members of a family
involved in the ownership and management of Nan Ya also shared
ownership and management of these three U.S. companies with potential
to act in concert or act out of common interest to exert restraint or
direction over a company's activities.
On April 6, 2010, and May 27, 2010, the Department requested that
Nan Ya provide additional information regarding Nan Ya's relationship
with the U.S. customers. In this review period, Nan Ya sold the subject
merchandise to these same U.S. companies. However, Nan Ya states that
the family links are no longer present due to the passing of
[[Page 49904]]
Nan Ya's late chairman in October 2008. Yet, the passing of a single
member does not establish that Nan Ya and the three U.S. companies are
no longer directly or indirectly, legally and operationally controlled
by, or under common control, control of the family grouping.
Based on Nan Ya's responses to the Department's questionnaires
regarding ownership and management of the three U.S. companies, in
addition to evidence placed on the record resulting from the
Department's independent research regarding the relationship between
Nan Ya and these U.S. customers, the Department preliminarily
determines that Nan Ya continues to be affiliated with these U.S.
customers through a family grouping. See Memorandum to Barbara E.
Tillman, Director, AD/CVD Operations, Office 6, ``Affiliation of Nan Ya
Plastics Corporation, Ltd. (Nan Ya) with Certain U.S. Customers,''
dated August 9, 2010.\2\ The family grouping still has the potential to
act in concert or act out of common interest, to exert restraint or
direction over the companies' activities.
---------------------------------------------------------------------------
\2\ We have also placed on the record our Nan Ya affiliations
analysis from the most-recent administrative review. See Memorandum
to the File, ``Nan Ya Plastics Corporation, Ltd. Affiliations
Analysis for the Period December 21, 2001 through June 30, 2003,''
dated concurrently with this notice.
---------------------------------------------------------------------------
Comparisons to Normal Value
To determine whether sales of PET Film were made at less than
normal value (NV), we compared the respondents' export price (EP) or
constructed export price (CEP) sales made in the United States to
unaffiliated customers to NV, as described below in the ``United States
Price'' and ``Normal Value'' sections of this notice. In accordance
with section 777A(d)(2) of the Act, we compared the EP and CEP of
individual transactions to monthly weighted-average NVs.
Product Comparisons
Pursuant to section 771(16) of the Act, we determined that products
sold by the respondents, as described in the ``Scope of the Order''
section, above, and sold in Taiwan during the POR, to be foreign like
products for purposes of determining appropriate product comparisons to
U.S. sales. We have relied on four criteria to match U.S. sales of
subject merchandise to comparison-market sales: specification,
thickness, thickness category, and surface treatment. Where there were
no sales of identical merchandise in the home market to compare to U.S.
sales, we compared U.S. sales to the most similar foreign like product
on the basis of the characteristics listed above.
Nan Ya reported additional internal codes and product model
matching characteristics to indicate the special features of certain
subject merchandise types. However, we have determined not to include
these additional product model matching characteristics for the purpose
of these preliminary results. Interested parties will have the
opportunity to comment on the use of these additional product model
matching characteristics in their case briefs.
Level of Trade
To determine whether NV sales are at a different level of trade
(LOT) than U.S. sales, we examine selling functions along the chain of
distribution between the respondent and the unaffiliated customer for
EP sales and between the respondent and the affiliated U.S. importer
for CEP sales. If the comparison market sales are at a different LOT,
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 pursuant to section 773(a)(7)(A)
of the Act.
In implementing these principles, we examined information provided
by Nan Ya regarding the selling functions involved in its home market
and U.S. sales, including a description of these selling functions,
listed in Exhibit SE A-5 of Nan Ya's May 5, 2010 submission. Based on
our analysis, we have preliminarily determined that Nan Ya sold at one
LOT in the home market and one LOT in the United States (including both
EP and CEP sales), as claimed by Nan Ya in its questionnaire responses.
We have also preliminarily determined that the home market and U.S.
LOTs are the same, and that, therefore, a LOT adjustment is not
warranted. We note that Nan Ya did not request a LOT adjustment.
Quarterly COP and CV
While we have analyzed the quarterly cost of production (COP) and
constructed value (CV) information from both Nan Ya and Shinkong, we
note that we have issued additional supplemental questions on this
issue. We intend to fully examine all of the quarterly COP and CV
information after the preliminary results and determine whether it is
appropriate to use shorter cost averaging periods for COP and CV in a
post-preliminary analysis memorandum.
Arm's-Length Test
The Department may calculate NV based on a sale to an affiliated
party only if it is satisfied that the price to the affiliated party is
comparable to the prices at which sales are made to parties not
affiliated with the exporter or producer; i.e., sales to home market
affiliates must be at arm's-length. See 19 CFR 351.403(c). Sales to
affiliated customers for consumption in the home market that are
determined not to be at arm's-length are excluded from our analysis. To
test whether sales are made at arm's-length prices, the Department
compares the prices of sales of comparable merchandise to affiliated
and unaffiliated customers, net of all movement charges, direct selling
expenses, and packing. Pursuant to 19 CFR 351.403(c), and in accordance
with the Department's practice, when the prices charged to an
affiliated party are, on average, between 98 and 102 percent of the
prices charged to unaffiliated parties for merchandise comparable to
that sold to the affiliated party, we determine that the sales to the
affiliated party are at arm's-length. See Antidumping Proceedings:
Affiliated Party Sales in the Ordinary Course of Trade, 67 FR 69186,
69187 (November 15, 2002).
In this proceeding, Nan Ya did not have sales to affiliates in the
home market. Shinkong reported sales of the foreign like product to
affiliated customers who consumed the purchased material. Shinkong's
sales to these affiliated home market customers did not pass the arm's-
length test, and were therefore excluded from our analysis. See section
773(b)(1) of the Act.
Nan Ya Margin Calculation
Export Price and Constructed Export Price
In calculating the antidumping duty margins for Nan Ya, we used EP,
as defined in section 772(a) of the Act, for all sales that Nan Ya made
directly to unaffiliated U.S. customers. As discussed above, however,
we have preliminarily determined that certain U.S. customers were
affiliated with Nan Ya during the POR. Thus, for such sales, we used
CEP in our margin calculations, as defined in section 772(b) of the
Act.
Normal Value
A. Selection of Comparison Market
To determine whether there was a sufficient volume of sales of PET
Film in the home market to serve as a viable basis for calculating
normal value, we compared the volume of respondent's
[[Page 49905]]
home market sales of the foreign like product to the volume of their
U.S. sales of the subject merchandise, in accordance with section
773(a)(1) of the Act. In accordance with section 773(a)(1)(B) of the
Act, and 19 CFR 351.404(b), because Nan Ya'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 of the subject merchandise, we
have determined that the home market was viable for comparison
purposes.
B. Cost of Production Analysis
Pursuant to 773(b)(2)(A)(ii) of the Act, because the Department had
disregarded certain of Nan Ya's sales in the most recently completed
review of this order, the Department had reasonable grounds to believe
or suspect that Nan Ya made home market sales at prices below COP in
this review. As a result, the Department was directed under section
773(b) of the Act to determine whether Nan Ya made home market sales
during the POR at prices below COP.
C. Calculation of COP
In accordance with section 773(b)(3) of the Act, we calculated COP
based on the sum of Nan Ya's cost of materials and fabrication for the
foreign like product, plus amounts for selling, general, and
administrative expenses (SG&A), interest expenses and home market
packing costs. See Memorandum to Neal M. Halper, Director, Office of
Accounting, ``Cost of Production and Constructed Value Calculation
Adjustments for the Preliminary Results--Nan Ya Plastics Corporation,''
dated August 9, 2010. We applied the major input rule under section
773(f)(3) of the Act to Nan Ya's purchases of purified terephthalic
acid (PTA) from an affiliated supplier and adjusted Nan Ya's reported
cost of manufacturing to reflect the higher of transfer price, market
price or COP. We eliminated the inter-divisional profit arising from
ethylene glycol transactions between Nan Ya's Polyester Fiber division
and one of its petrochemicals divisions. In addition, we adjusted Nan
Ya's reported cost of manufacturing to include excluded pension costs
and surplus fixed costs. Finally, we adjusted Nan Ya's reported total
general and administrative expense to include the cost of temporary
plant shutdowns. These calculations include revisions by the Department
to the COP information reported by Nan Ya.
D. COP Test
On a product-specific basis, we compared the revised COP figures to
home market prices net of applicable billing adjustments, discounts and
rebates, movement charges, selling expenses, and packing to determine
whether home market sales had been made at prices below COP. In
determining whether to disregard home market sales made at prices below
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. In accordance
with section 773(b)(2)(C) of the Act, where less than 20 percent of a
given product was sold at prices less than COP, we did not disregard
any below-cost sales of that product, because the below-cost sales were
not made in ``substantial quantities.'' Where 20 percent or more of a
given product was sold at prices less than COP, we disregarded the
below cost sales because: (1) They were made within an extended period
of time in ``substantial quantities,'' in accordance with sections
773(b)(2)(B) and (C) of the Act; and, (2) based on our comparison of
prices to weighted-average COP figures for the POR, they were made 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. Based on this analysis, we found that Nan Ya did have below
cost sales that must be disregarded. We used the remaining home market
sales as the basis for determining NV, in accordance with section
773(b)(1) of the Act.
E. Constructed Value
After disregarding certain sales as below cost, as described above,
home market sales of contemporaneous identical and similar products
existed that allowed for price-to-price comparisons for all margin
calculations. Therefore, the Department did not need to rely on
constructed value for any calculations for this preliminary
determination.
F. Price-to-Price Comparisons
We calculated NV based on packed prices to unaffiliated customers
in the home market. We used Nan Ya'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 cost
differences attributable to the physical differences between the
products 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. 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.
Shinkong's Margin Calculation
Export Price
In calculating the antidumping duty margins for Shinkong, we used
EP, as defined in section 772(a) of the Act.
Normal Value
A. Selection of Comparison Market
To determine whether there was a sufficient volume of sales of PET
Film in the home market to serve as a viable basis for calculating
normal value, we compared the volume of respondent's home market sales
of the foreign like product to the volume of their U.S. sales of the
subject merchandise, in accordance with section 773(a)(1) of the Act.
In accordance with section 773(a)(1)(B) of the Act, and 19 CFR
351.404(b), because Shinkong'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 of the subject merchandise, we have determined
that the home market was viable for comparison purposes.
B. Cost of Production Analysis
Pursuant to 773(b)(2)(A)(ii) of the Act, because the Department had
disregarded certain of Shinkong's sales in the most recently completed
review of this order, the Department had reasonable grounds to believe
or suspect that Shinkong made home market sales at prices below COP in
this review. As a result, the Department was directed under section
773(b) of the Act to determine whether Shinkong made home market sales
during the POR at prices below COP.
C. Calculation of COP
In accordance with section 773(b)(3) of the Act, we calculated COP
based on the sum of Shinkong's cost of materials and fabrication for
the foreign like product, plus amounts for SG&A, interest expenses and
home market packing costs. These calculations include revisions by the
Department to the COP information reported by Shinkong. We adjusted
SSFC's total general and administrative expenses to include the cost of
temporary plant shut-downs for both SSFC and its
[[Page 49906]]
affiliated producer of merchandise under consideration, SMTC. See
Memorandum to Neal M. Halper, Director, Office of Accounting, ``Cost of
Production and Constructed Value Calculation Adjustments for the
Preliminary Results--Shinkong Synthetic Fibers Corporation,'' dated
August 9, 2010.
D. COP Test
On a product-specific basis, we compared the revised COP figures to
home market prices net of applicable billing adjustments, discounts and
rebates, movement charges, selling expenses, and packing to determine
whether home market sales had been made at prices below COP. In
determining whether to disregard home market sales made at prices below
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. In accordance
with section 773(b)(2)(C) of the Act, where less than 20 percent of a
given product was sold at prices less than COP, we did not disregard
any below-cost sales of that product, because the below-cost sales were
not made in ``substantial quantities.'' Where 20 percent or more of a
given product was sold at prices less than COP, we disregarded the
below-cost sales because: (1) They were made within an extended period
of time in ``substantial quantities,'' in accordance with sections
773(b)(2)(B) and (C) of the Act; and, (2) based on our comparison of
prices to weighted-average COP figures for the POR, they were made 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. Based on this analysis, we found that Shinkong did have below-
cost sales that must be disregarded. We used the remaining home market
sales as the basis for determining NV, in accordance with section
773(b)(1) of the Act.
E. Constructed Value
After disregarding certain sales as below cost, as described above,
home market sales of contemporaneous identical and similar products
existed that allowed for price-to-price comparisons for all margin
calculations. Therefore, the Department did not need to rely on
constructed value for any calculations for this preliminary
determination.
F. Price-to-Price Comparisons
We calculated NV based on packed prices to unaffiliated customers
in the home market.\3\ We used Shinkong'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 cost
differences attributable to the physical differences between the
products compared, pursuant to section 773(a)(6)(C)(ii) of the Act and
19 CFR 351.411. We also made adjustments for differences in 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. 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.
---------------------------------------------------------------------------
\3\ Shinkong sold a small amount of foreign like product to its
affiliates in the home market for consumption during the POR. These
sales have failed the arm's-length test and therefore have been
excluded from the calculation of NV.
---------------------------------------------------------------------------
Currency Conversions
Pursuant to section 773(A) of the Act and 19 CFR 351.415, we made
currency conversions for Nan Ya's and Shinkong's sales based on the
daily exchange rates in effect on the dates of the relevant U.S. sales
as certified by the Federal Reserve Bank of New York.
Preliminary Results of Review
As a result of our review, we preliminarily determine the following
weighted-average dumping margins exist for the period July 1, 2008,
through June 30, 2009.
------------------------------------------------------------------------
Weighted-average
Manufacturer/exporter margin (percent)
------------------------------------------------------------------------
Nan Ya Plastics Corporation, Ltd.................... 19.78
Shinkong Synthetic Fibers Corporation............... 5.89
------------------------------------------------------------------------
Disclosure and Public Comment
We will disclose the calculations used in our analysis to parties
in this review within five days of the date of publication of this
notice in accordance with 19 CFR 351.224(b). Any interested party may
request a hearing within 30 days of the publication of this notice in
the Federal Register. See 19 CFR 351.310. If a hearing is requested,
the Department will notify interested parties of the hearing schedule.
Interested parties are invited to comment on the preliminary
results of this review. Interested parties must submit case briefs
within 30 days of the date of publication of this notice. Rebuttal
briefs, which must be limited to issues raised in the case briefs, must
be filed not later than five days after the time limit for filing case
briefs. See 19 CFR 351.309(c) and (d) (for a further discussion of case
briefs and rebuttal briefs, respectively). Parties who submit case
briefs or rebuttal briefs in this review 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. Executive summaries should be
limited to five pages total, including footnotes.
We intend to issue the final results of this administrative review,
including the results of our analysis of issues raised in the written
comments, within 120 days of publication of these preliminary results
in the Federal Register. See section 751(a)(3)(A) of the Act.
Assessment Rates
The Department shall determine, and U.S. Customs and Border
Protection (CBP) shall assess, antidumping duties on all appropriate
entries. We will instruct CBP to liquidate entries of merchandise
produced and/or exported by Nan Ya and Shinkong. The Department intends
to issue assessment instructions to CBP 15 days after the date of
publication of the final results of review. For assessment purposes,
where possible, we calculated importer-specific (or customer-specific)
ad valorem assessment rates 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 the respondents did not report the entered value for their 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 deposit requirements will be effective for all
shipments of PET Film from Taiwan entered, or withdrawn from warehouse,
for consumption on or after the date of publication 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 companies under
review will be the rate 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
[[Page 49907]]
cash deposit will be required); (2) for previously reviewed or
investigated companies not listed above, the cash deposit rate will
continue to be the company-specific rate published for the most recent
period; (3) if the exporter is not a firm covered in this review, a
prior review, or the less-than-fair-value 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,
(4) 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 for this proceeding, 2.40 percent. These deposit
requirements, when imposed, shall remain in effect until further
notice.
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 Department's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of doubled antidumping duties.
These preliminary results of administrative review are issued and
published in accordance with sections 751(a)(1) and 777(i)(1) of the
Act.
Dated: August 9, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-20212 Filed 8-13-10; 8:45 am]
BILLING CODE 3510-DS-P