Polyethylene Retail Carrier Bags From Thailand: Preliminary Results of Antidumping Duty Administrative Review, 53953-53957 [2010-21985]
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Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XX66
The National Saltwater Angler Registry
Program; Designation of Exempted
States for Anglers, Spear Fishers, and
For-Hire Fishing Vessels
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice.
AGENCY:
NMFS has designated the
states of Alaska, Oregon, California,
New York, Connecticut, Delaware,
American Samoa and Commonwealth of
the Northern Mariana Islands as
exempted states for anglers, spear
fishers and for-hire fishing vessels.
NMFS has designated the states of
Virginia and Massachusetts as exempted
states for for-hire fishing vessels.
DATES: Effective on September 2, 2010.
ADDRESSES: Gordon C. Colvin, Fishery
Biologist, NMFS ST–12453, 1315 EastWest Highway, Silver Spring, MD
20910.
FOR FURTHER INFORMATION CONTACT:
Gordon C. Colvin, Fishery Biologist;
(301) 713–2367 x175; e-mail:
Gordon.Colvin@noaa.gov
SUPPLEMENTARY INFORMATION: The final
rule implementing the National
Saltwater Angler Registry Program, 50
CFR subpart P, was published in the
Federal Register on December 30, 2008.
The final rule requires persons who are
angling, spear fishing or operating a forhire fishing vessel in the U.S. Exclusive
Economic Zone or for anadromous
species to register annually with NOAA,
beginning January 1, 2009. However,
persons who are licensed or registered
by, or state residents who are not
required to register or hold a license
issued by, a state that is designated as
an exempted state are not required to
register with NOAA. The final rule sets
forth the requirements for states to be
designated as exempted states.
Generally, exempted states must agree
to provide to NMFS names, addresses,
dates of birth and telephone numbers of
the persons licensed or registered under
a qualifying state license and/or registry
program, or to provide catch and effort
data from a qualifying regional survey of
recreational fishing, and enter into a
Memorandum of Agreement with NMFS
to formalize the data reporting
agreement.
NMFS has received proposals for
providing license/registry and/or
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SUMMARY:
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regional survey catch and effort data
from the states listed below, has
determined that the states’ programs
qualify for exempted state designation
under the provisions of the final rule,
and has entered into Memoranda of
Agreement with each of the states.
Therefore, pursuant to 50 CFR
600.1415(b)(3), notice is hereby given
that the following states are designated
as exempted states under 50 CFR
subpart P: Alaska, Oregon, California,
New York, Delaware, Connecticut,
American Samoa, Commonwealth of the
Northern Mariana Islands. Persons who
hold a valid fishing license or
registration issued by these exempted
states for angling, spear fishing or
operating a for-hire fishing vessel in
tidal waters are not required to register
with NOAA under 50 CFR 600.1405(b).
Persons who are residents of these
exempted states who are not required to
hold a fishing license, or to be registered
to fish under the laws of these exempted
states, also are not required to register
with NOAA. Further, pursuant to 50
CFR 600.1415(b)(3), notice is hereby
given that the following states are
designated as exempted states only for
for-hire fishing vessels: Virginia,
Massachusetts. Persons who hold a
valid license or registration issued by
these exempted states for operating a
for-hire fishing vessel in tidal waters are
not required to register with NOAA
under 50 CFR 600.1405(b).
Dated: August 26, 2010.
Eric C. Schwaab,
Assistant Administrator for Fisheries,
National Marine Fisheries Service.
[FR Doc. 2010–21987 Filed 9–1–10; 8:45 am]
BILLING CODE 3510–22–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–549–821]
Polyethylene Retail Carrier Bags From
Thailand: Preliminary Results of
Antidumping Duty Administrative
Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from
interested parties, the Department of
Commerce (the Department) is
conducting an administrative review of
the antidumping duty order on
polyethylene retail carrier bags (PRCBs)
from Thailand. The review covers five
exporters/producers. The period of
review (POR) is August 1, 2008, through
July 31, 2009. We have preliminarily
AGENCY:
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53953
determined that sales have been made
below normal value by companies
subject to this review.
We invite interested parties to
comment on these preliminary results.
Parties who submit comments in this
review are requested to submit with
each argument (1) a statement of the
issue and (2) a brief summary of the
argument.
DATES: Effective Date: September 2,
2010.
FOR FURTHER INFORMATION CONTACT:
Thomas Schauer or Richard Rimlinger,
AD/CVD Operations, Office 5, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–0410 or (202) 482–
4477, respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 9, 2004, the Department
published in the Federal Register the
antidumping duty order on PRCBs from
Thailand. See Antidumping Duty Order:
Polyethylene Retail Carrier Bags From
Thailand, 69 FR 48204 (August 9, 2004).
On September 22, 2009, we published a
notice of initiation of an administrative
review of six companies. See Initiation
of Antidumping and Countervailing
Duty Administrative Reviews and
Request for Revocation in Part, 74 FR
48224 (September 22, 2009).1 Since
initiation of the review, we selected
Landblue and TPBI for individual
examination. See Memorandum to
Laurie Parkhill dated October 15, 2009.
In addition, we extended the due date
for completion of these preliminary
results. See Polyethylene Retail Carrier
Bags from Thailand: Extension of Time
Limit for Preliminary Results of
Antidumping Duty Administrative
Review, 75 FR 23673 (May 4, 2010), and
Polyethylene Retail Carrier Bags From
Thailand: Extension of Time Limit for
Preliminary Results of Antidumping
Duty Administrative Review, 75 FR
36359 (June 25, 2010). Finally, we
rescinded the review with respect to
Landblue. See Polyethylene Retail
Carrier Bags from Thailand: Rescission
of Antidumping Duty Administrative
1 We stated that the review covers the following
companies: C.P. Packaging Co., Ltd., Giant Pack Co.,
Ltd., Landblue (Thailand) Co., Ltd. (Landblue),
Sahachit Watana Plastics Ind. Co., Ltd., Thai Plastic
Bags Industries Co., Ltd. (TPBI), and Thantawan
Industry Public Co., Ltd. Id., 74 FR at 48226. The
Department has determined previously that TPBI,
APEC Film Ltd., and Winner’s Pack Co., Ltd.,
comprise the Thai Plastic Bags Group. See Notice
of Final Determination of Sales at Less than Fair
Value: Polyethylene Retail Carrier Bags From
Thailand, 69 FR 34122, 34123 (June 18, 2004).
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Review in Part, 75 FR 34699 (June 18,
2010).
The POR is August 1, 2008, through
July 31, 2009. We are conducting this
review in accordance with section
751(a) of the Tariff Act of 1930, as
amended (the Act).
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Scope of the Order
The merchandise subject to the
antidumping duty order is PRCBs,
which may be referred to as t-shirt
sacks, merchandise bags, grocery bags,
or checkout bags. The subject
merchandise is defined as non-sealable
sacks and bags with handles (including
drawstrings), without zippers or integral
extruded closures, with or without
gussets, with or without printing, of
polyethylene film having a thickness no
greater than 0.035 inch (0.889 mm) and
no less than 0.00035 inch (0.00889 mm),
and with no length or width shorter
than 6 inches (15.24 cm) or longer than
40 inches (101.6 cm). The depth of the
bag may be shorter than 6 inches but not
longer than 40 inches (101.6 cm).
PRCBs are typically provided without
any consumer packaging and free of
charge by retail establishments, e.g.,
grocery, drug, convenience, department,
specialty retail, discount stores, and
restaurants, to their customers to
package and carry their purchased
products. The scope of the order
excludes (1) polyethylene bags that are
not printed with logos or store names
and that are closeable with drawstrings
made of polyethylene film and (2)
polyethylene bags that are packed in
consumer packaging with printing that
refers to specific end-uses other than
packaging and carrying merchandise
from retail establishments, e.g., garbage
bags, lawn bags, trash-can liners.
As a result of changes to the
Harmonized Tariff Schedule of the
United States (HTSUS), imports of the
subject merchandise are currently
classifiable under statistical category
3923.21.0085 of the HTSUS.
Furthermore, although the HTSUS
subheading is provided for convenience
and customs purposes, the written
description of the scope of the order is
dispositive.
Selection of Respondents
Due to the large number of companies
in the review and the resulting
administrative burden to examine each
company for which a request had been
made and not withdrawn, the
Department exercised its authority to
limit the number of respondents
selected for examination. Where it is not
practicable to examine all known
exporters/producers of subject
merchandise because of the large
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number of such companies, section
777A(c)(2) of the Act allows the
Department to limit its examination to
either a sample of exporters, producers,
or types of products that is statistically
valid, based on the information
available at the time of selection, or
exporters and producers accounting for
the largest volume of subject
merchandise from the exporting country
that can be reasonably examined.
Accordingly, based on our analysis of
U.S. Customs and Border Protection
(CBP) import data on the record of this
review (see letters from Laurie Parkhill
to Daniel L. Schneiderman and to Victor
S. Mroczka dated September 28, 2009)
and our available resources, we decided
to examine the sales of Landblue and
TPBI. See Memorandum to Laurie
Parkhill regarding respondent selection,
dated October 15, 2009.
Because we rescinded the review with
respect to Landblue, for the companies
which remain under review and which
we did not select for individual
examination, we have determined the
margin based on the weighted-average
margin of TPBI, the sole remaining
respondent selected for individual
examination in this review.
Affiliation
TPBI has argued that a certain
company (Company A) is not affiliated
with TPBI although TPBI and Company
A mutually own a company in Vietnam
that produces PRCBs. See TPBI’s
Section A response dated December 9,
2009, at page A–6. We have
preliminarily determined that Company
A is ‘‘operationally in a position to
exercise restraint or direction’’ over
TPBI, pursuant to section 771(33)(F) of
the Act. Accordingly, we have
preliminarily determined that Company
A is affiliated with TPBI. Because of the
proprietary nature of this analysis, see
the Memorandum to Laurie Parkhill
entitled ‘‘Polyethylene Retail Carrier
Bags from Thailand—Affiliation’’ dated
August 26, 2010, for a complete
discussion of this determination.
Export Price
For the price to the United States for
TPBI, we used export price (EP) as
defined in section 772(a) of the Act. We
calculated EP based on the packed freeon-board or delivered price to
unaffiliated purchasers in, or for
exportation to, the United States. See
section 772(c) of the Act. We made
deductions for any movement expenses
in accordance with section 772(c)(2)(A)
of the Act. We made adjustments for
duty drawback under the Investment
Promotion Act and under Section 19
BIS of the Customs Act claimed by TPBI
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in accordance with section 772(c)(1)(B)
of the Act. For a detailed explanation of
these adjustments, see Memorandum
entitled ‘‘Polyethylene Retail Carrier
Bags from Thailand—Thai Plastic Bags
Industries Group Preliminary Results
Analysis Memorandum 8/1/08—7/31/
09,’’ dated August 26, 2010 (Analysis
Memo).
Comparison-Market Sales
Based on a comparison of the
aggregate quantity of home-market and
U.S. sales and absent any information
that a particular market situation in the
exporting country did not permit a
proper comparison, we determined that
the quantity of foreign like product sold
by TPBI in Thailand was sufficient to
permit a proper comparison with the
sales of the subject merchandise to the
United States, pursuant to section 773(a)
of the Act. TPBI’s quantity of sales in
Thailand was greater than five percent
of its quantity of sales to the U.S.
market. See section 773(a)(1) of the Act.
Therefore, in accordance with section
773(a)(1)(B)(i) of the Act, we based
normal value on the prices at which the
foreign like product was first sold for
consumption in Thailand in the usual
commercial quantities, in the ordinary
course of trade, and at the same level of
trade as the U.S. sales.
Cost of Production
In accordance with section 773(b) of
the Act, we disregarded the below-cost
sales of TPBI in the most recent
administrative review of this company
completed before the initiation of this
review. See Polyethylene Retail Carrier
Bags from Thailand: Final Results of
Antidumping Duty Administrative
Review and Partial Rescission of
Antidumping Duty Administrative
Review, 72 FR 64580, 64581 (November
16, 2007). Therefore, we have
reasonable grounds to believe or suspect
that TPBI’s sales of the foreign like
product under consideration for the
determination of normal value in this
review may have been made at prices
below the cost of production (COP) as
provided by section 773(b)(2)(A)(ii) of
the Act. Accordingly, pursuant to
section 773(b)(1) of the Act, we have
conducted a COP analysis of TPBI’s
sales in Thailand in this review.
In accordance with section 773(b)(3)
of the Act, we calculated the COP based
on the sum of the costs of materials and
fabrication employed in producing the
foreign like product, the selling, general,
and administrative (SG&A) expenses,
and all costs and expenses incidental to
packing the merchandise. In our COP
analysis, we used the home-market sales
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and COP information TPBI provided in
its questionnaire responses.
We relied on the COP data submitted
by TPBI except as follows:
1. In accordance with the
transactions-disregarded rule (section
773(f)(2) of the Act), we adjusted TPBI’s
cost of manufacturing (COM) to reflect
the market value of printing plates that
were purchased from an affiliate.
2. In accordance with the major-input
rule (section 773(f)(3) of the Act), we
adjusted TPBI’s COM to reflect the
market value of certain resin that was
purchased from an affiliate.
3. With respect to the allocation of
direct labor, variable overhead, and
fixed overhead costs, we have
preliminarily determined that the
methodology reported by TPBI
unreasonably distorts the COM for the
subject merchandise and the foreign like
product. This reported methodology is
not only inconsistent with the
methodology applied by TPBI in its
books and records, it also results in a
large variability in costs that have
nothing to do with physical differences
in the merchandise. Accordingly,
pursuant to section 776(a) of the Act, as
facts otherwise available, we have
weight-averaged these costs on a perunit basis in order to prevent such
significant differences in costs between
physically similar merchandise. See
Statement of Administrative Action,
URAA, H. Doc. 316, Vol. 1, 103rd Cong.
(1994), at 834–5 (stating that, if the
Department determines that costs
reported by a respondent ‘‘shifted away
costs from the production of the subject
merchandise, or the foreign like
product,’’ the Department has the
authority to ‘‘adjust costs appropriately
to ensure that they (the costs) are not
artificially reduced’’).
3. We adjusted TPBI’s reported COM
to remove an offset claimed by TPBI for
revenue associated with the
Government of Thailand’s Blue Corner
Rebate program.
For additional details on these
adjustments, see Memorandum to Neal
M. Halper entitled ‘‘Cost of Production
and Constructed Value Calculation
Adjustments for the Preliminary
Results’’ dated August 26, 2010 (Cost
Memo).
Alternative Cost Methodology
The Department’s normal practice is
to calculate an annual weighted-average
cost for the entire period of
investigation (POI) or POR. See, e.g.,
Certain Pasta from Italy: Final Results of
Antidumping Duty Administrative
Review, 65 FR 77852 (December 13,
2000), and the accompanying Issues and
Decision Memorandum at Comment 18.
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We recognize that possible distortions
may result if we use our normal annualaverage cost methodology during a
period of significant cost changes. In
determining whether to deviate from
our normal methodology of calculating
an annual weighted-average cost, we
evaluate the case-specific record
evidence using two primary factors: (1)
The change in the COM recognized by
the respondent during the POI or POR
must be deemed significant; (2) the
record evidence must indicate that sales
prices during the shorter averaging
periods (e.g., quarters rather than the
POR) could be reasonably linked with
the COP during the same shorter
averaging periods. See, e.g., Stainless
Steel Plate in Coils From Belgium: Final
Results of Antidumping Duty
Administrative Review, 73 FR 75398
(December 11, 2008), and the
accompanying Issues and Decision
Memorandum at Comment 4 and
Stainless Steel Sheet and Strip in Coils
From Mexico; Final Results of
Antidumping Duty Administrative
Review, 75 FR 6627 (February 10, 2010),
and the accompanying Issues and
Decision Memorandum at Comment 6.
This methodology was recently upheld
by the Court of International Trade in
SeAH Steel Corporation v. United
States, Slip. Op. 10–60 (CIT May 19,
2010), as supported by substantial
evidence and otherwise in accordance
with law.
1. Significance of Cost Changes
Record evidence shows that TPBI
experienced significant changes in its
total COM during the POR and that
these changes were primarily
attributable to the price volatility of its
raw-material inputs used to produce the
merchandise under consideration.
Because of the proprietary nature of this
analysis, see the Cost Memo for a more
complete discussion of this
determination.
2. Linkage Between Cost and Sales
Information
If the Department finds cost changes
to be significant in a given investigation
or administrative review, the
Department evaluates whether there is
evidence of linkage between the cost
changes and the sales prices for the POI
or POR. Our definition of linkage does
not require direct traceability between
specific sales and their specific
production cost but, rather, relies on
whether there are elements which
would demonstrate a reasonable
correlation between the underlying
costs and the final sales prices charged
by the company.
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Because we received the data
necessary for a determination with
respect to the linkage between the cost
changes and the sales prices for the POR
shortly before the statutory due date for
the issuance of these preliminary
results, we have not yet reached a
conclusion as to whether there is
evidence of such linkage in this review.
After these preliminary results are
published, we will issue our analysis
regarding quarterly costs as well as any
margin recalculations, if appropriate.
Thus, for these preliminary results, we
have not applied our quarterly cost
methodology but, rather, have applied
our standard methodology of using
annual costs based on the data TPBI
reported, adjusted as described in the
‘‘Cost of Production’’ section above.
Results of Cost Test and Cost-Recovery
Test
After calculating the COP in
accordance with section 773(b)(1) of the
Act, we tested whether home-market
sales of the foreign like product were
made at prices below the COP within an
extended period of time in substantial
quantities and whether such prices
permitted the recovery of all costs
within a reasonable period of time. See
section 773(b)(2) of the Act. We
compared model-specific COPs to the
reported home-market prices less any
applicable movement charges,
discounts, and rebates.
Pursuant to section 773(b)(2)(C) of the
Act, when less than 20 percent of TPBI’s
sales of a given product were made at
prices less than the COP, we did not
disregard any below-cost sales of that
product because the below-cost sales
were not made in substantial quantities
within an extended period of time.
When 20 percent or more of TPBI’s sales
of a given product during the POR were
made at prices less than the COP, we
disregarded the below-cost sales
because they were made in substantial
quantities within an extended period of
time pursuant to sections 773(b)(2)(B)
and (C) of the Act.
Further, in accordance with section
773(b)(2)(D) of the Act, we compared
prices to weighted-average per-unit
COPs for the POR and determined that
these sales were at prices which would
not permit recovery of all costs within
a reasonable period of time. Because we
are applying our standard annualaverage cost test in these preliminary
results, we have also applied our
standard cost-recovery test with no
adjustments. Based on both of these
tests, we disregarded certain sales made
by TBPI in the home market which were
made at below-cost prices.
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Model-Matching Methodology
In making our comparisons of U.S.
sales with sales of the foreign like
product in the home market, we used
the following methodology. If an
identical comparison-market model
with identical physical characteristics
as listed below was reported, we made
comparisons to weighted-average homemarket prices that were based on all
sales which passed the COP test of the
identical product during a
contemporaneous month. If there were
no contemporaneous sales of an
identical model, we identified the most
similar home-market model. To
determine the most similar model, we
matched the foreign like product based
on physical characteristics reported by
the respondent in the following order of
importance: (1) Quality, (2) bag type, (3)
length, (4) width, (5) gusset, (6)
thickness, (7) percentage of high-density
polyethylene resin, (8) percentage of
low-density polyethylene resin, (9)
percentage of low linear-density
polyethylene resin, (10) percentage of
color concentrate, (11) percentage of ink
coverage, (12) number of ink colors, and
(13) number of sides printed.
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Normal Value
We based home-market prices on the
packed, ex-factory, or delivered prices
to unaffiliated purchasers. When
applicable, we made adjustments for
differences in packing and for
movement expenses in accordance with
sections 773(a)(6)(A) and (B) of the Act.
We also made adjustments for
differences in cost attributable to
differences in physical characteristics of
the merchandise pursuant to section
773(a)(6)(C)(ii) of the Act and 19 CFR
351.411, adjusted as described in the
‘‘Cost of Production’’ section above, and
for differences in circumstances of sale
in accordance with section
773(a)(6)(C)(iii) of the Act and 19 CFR
351.410. We made circumstance-of-sale
adjustments by deducting home-market
direct selling expenses from and adding
U.S. direct selling expenses to normal
value.
In accordance with section
773(a)(1)(B)(i) of the Act, we based
normal value at the same level of trade
as the EP sales. See the ‘‘Level of Trade’’
section below.
Constructed Value
In accordance with section 773(a)(4)
of the Act, we used constructed value as
the basis for normal value when there
were no contemporaneous comparable
sales of the foreign like product in the
comparison market. We calculated
constructed value in accordance with
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section 773(e) of the Act. We included
the cost of materials and fabrication,
adjusted as described in the ‘‘Cost of
Production’’ section above, SG&A
expenses, U.S. packing expenses, and
profit in the calculation of constructed
value. In accordance with section
773(e)(2)(A) of the Act, we based SG&A
expenses and profit on the amounts
incurred and realized by TPBI in
connection with the production and sale
of the foreign like product in the
ordinary course of trade for
consumption in the home market.
When appropriate, we made
adjustments to constructed value in
accordance with section 773(a)(8) of the
Act, 19 CFR 351.410, and 19 CFR
351.412 for circumstance-of-sale
differences and level-of-trade
differences. We made circumstance-ofsale adjustments by deducting homemarket direct selling expenses from and
adding U.S. direct selling expenses to
constructed value. We also made
adjustments, when applicable, for
home-market indirect selling expenses
to offset U.S. commissions. We
calculated constructed value at the same
level of trade as the EP. For a detailed
explanation of the calculations, see
Analysis Memo.
TPBI argued that the Department
should not exclude home-market sales
that fail the cost test from its calculation
of profit for constructed value (CV
profit). Citing Atar, S.r.l. v. United
States, 637 F. Supp. 2d 1068, 1092 (CIT
2009) (Atar), TPBI asserts that the Court
of International Trade has found the
Department’s practice of excluding
home-market sales that fail the cost test
from its calculation of CV profit to be
contrary to law. TPBI misunderstands
the Court’s analysis in Atar. That
decision does not apply to the facts of
this case because the Atar decision was
made with regard to a statutory
provision not at issue here.
Section 773(e)(2)(A) of the Act
provides that, in calculating CV profit,
the Department will only use ‘‘actual
amounts’’ incurred ‘‘in the ordinary
course of trade’’ in the home market.
Section 771(15)(A) of the Act makes
clear that home-market sales that failed
the cost test are outside the ordinary
course of trade. Section 773(e)(2)(B) of
the Act, on the other hand, applies if
those actual amounts are not available.
In the administrative review challenged
in Atar, Notice of Preliminary Results
and Partial Rescission of Antidumping
Duty Administrative Review: Ninth
Administrative Review of the
Antidumping Duty Order on Certain
Pasta from Italy, 71 FR 45017 (August
8, 2006) (unchanged in final; 72 FR
7011, February 14, 2007) (Pasta from
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Italy), the respondent did not have a
viable home market so the Department
calculated CV profit pursuant to section
773(e)(2)(B) of the Act.
At issue in Atar was the fact that there
is no ‘‘ordinary course of trade’’ language
in section 773(e)(2)(B) of the Act yet the
Department nonetheless excluded sales
that failed the cost test from its
calculation of CV profit. The plaintiff,
Atar, argued that the Department must
calculate these respondent companies’
profit rates based on all sales, above and
below cost, for purposes of calculating
CV profit pursuant to section
773(e)(2)(B) of the Act. The Court agreed
with Atar, finding that the Department
erred in excluding below-cost sales in
its calculation of CV profit because such
a requirement only applies when a
viable home market exists, pursuant to
section 773(e)(2)(A) of the Act. See Atar,
637 F. Supp. 2d 1068, 1092 (CIT 2009).2
In this review, by contrast, TPBI does
have a viable home market and,
therefore, we can determine selling
expenses and profit under section
773(e)(2)(A) of the Act. Accordingly,
consistent with that provision, we have
used only sales made within the
ordinary course of trade in calculating
CV profit.
Level of Trade
To the extent practicable, we
determined normal value for sales at the
same level of trade as the U.S. sales. The
normal-value level of trade is that of the
starting-price sales in the home market.
When normal value is based on
constructed value, the level of trade is
that of the sales from which we derived
SG&A and profit.
To determine whether home-market
sales are at a different level of trade than
U.S. sales, we examined stages in the
marketing process and selling functions
along the chain of distribution between
the producer and the unaffiliated
customer. This analysis revealed that
there were not any significant
differences in selling functions between
different channels of distribution or
customer type in either the home or U.S.
markets. Therefore, we determined that
TPBI made all home-market sales at one
level of trade. Moreover, we determined
that all home-market sales by TPBI were
made at the same level of trade as its
U.S. sales. For a more detailed
discussion, see Analysis Memo.
Accordingly, we compared TPBI’s U.S.
sales to its home-market sales, all of
2 A similar decision to reject the Department’s
interpretation under section 773(e)(2)(B) of the Act
was reversed in Thai I–Mei Frozen Foods Co., Ltd.,
v. United States, 2010 U.S. App. LEXIS 16677 (Fed.
Cir. 2010).
E:\FR\FM\02SEN1.SGM
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Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices
which were made at the same level of
trade.
Preliminary Results of Review
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
As a result of our review, we
preliminarily determine that the
following percentage weighted-average
dumping margins on PRCBs from
Thailand exist for the period August 1,
2008, through July 31, 2009:
the results of its analysis of issues raised
in any such written briefs or at the
hearing, if held, not later than 120 days
after the date of publication of this
notice. See section 751(a)(3)(A) of the
Act.
Assessment Rates
The Department shall determine, and
CBP shall assess, antidumping duties on
all appropriate entries. In accordance
with 19 CFR 351.212(b)(1), we have
Percent
Producer/exporter
margin
calculated for TPBI an importer (or
customer)-specific assessment value for
TPBI ..........................................
20.41 merchandise subject to this review by
C.P. Packaging Co., Ltd. ..........
20.41
dividing the total dumping margin
Giant Pack Co., Ltd. .................
20.41
(calculated as the difference between
Sahachit Watana Plastics Ind.
Co., Ltd. ................................
20.41 normal value and EP) for each importer
or customer by the total kilograms the
Thantawan Industry Public Co.,
Ltd. ........................................
20.41 exporter sold to that importer or
customer. We will instruct CBP to assess
the resulting per-kilogram amount
Comments
against each kilogram of merchandise in
We will disclose the calculations used
each of that importer’s/customer’s
in our analysis to interested parties to
entries during the POR.
this review within five days of the date
The Department clarified its
of publication of this notice. See 19 CFR ‘‘automatic assessment’’ regulation on
351.224(b). Any interested party may
May 6, 2003. This clarification applies
request a hearing within 30 days of the
to entries of subject merchandise during
date of publication of this notice. See 19 the POR produced by TPBI for which it
CFR 351.310. Interested parties who
did not know its merchandise was
wish to request a hearing or to
destined for the United States. In such
participate in a hearing if a hearing is
instances, we will instruct CBP to
requested must submit a written request liquidate unreviewed entries at the allto the Assistant Secretary for Import
others rate if there is no rate for the
Administration within 30 days of the
intermediate company(ies) involved in
date of publication of this notice.
the transaction. For a full discussion of
Requests should contain the following
this clarification, see Antidumping and
information: (1) The party’s name,
Countervailing Duty Proceedings:
address, and telephone number; (2) the
Assessment of Antidumping Duties, 68
number of participants; (3) a list of
FR 23954 (May 6, 2003).
issues to be discussed. See 19 CFR
For the companies which were not
351.310(c).
selected for individual examination, we
Issues raised in the hearing will be
will instruct CBP to apply the rates
limited to those raised in the case briefs. listed above to all entries of subject
See 19 CFR 351.310(c). Case briefs from merchandise produced and/or exported
interested parties may be submitted not
by such firms.
later than seven (7) days after the date
We intend to issue liquidation
on which we issue our determination
instructions to CBP 15 days after
regarding quarterly costs. See 19 CFR
publication of the final results of
351.309(c)(1)(ii). Rebuttal briefs from
review.
interested parties, limited to the issues
Cash-Deposit Requirements
raised in the case briefs, may be
submitted not later than five days after
The following deposit requirements
the time limit for filing the case briefs
will be effective upon publication of the
or comments. See 19 CFR 351.309(d)(1). notice of final results of administrative
If requested, any hearing will be held
review for all shipments of PRCBs from
two days after the scheduled date for
Thailand entered, or withdrawn from
submission of rebuttal briefs. See 19
warehouse, for consumption on or after
CFR 351.310(d). Parties who submit
the date of publication, as provided by
case briefs or rebuttal briefs in this
section 751(a)(2) of the Act: (1) The
review are requested to submit with
cash-deposit rates for the reviewed
each argument a statement of the issue,
companies will be the rates established
a summary of the arguments not
in the final results of review; (2) for
exceeding five pages, and a table of
previously reviewed or investigated
statutes, regulations, and cases cited.
companies not listed above, the cashSee 19 CFR 351.309(c)(2). The
deposit rate will continue to be the
Department will issue the final results
company-specific rate published for the
of this administrative review, including most recent period; (3) if the exporter is
VerDate Mar<15>2010
15:22 Sep 01, 2010
Jkt 220001
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
53957
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; (4) if neither the exporter
nor the manufacturer has its own rate,
the cash-deposit rate will be 2.80
percent, the all-others rate for this
proceeding. These deposit requirements,
when imposed, shall remain in effect
until further notice.
Notification to Importer
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 26, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–21985 Filed 9–1–10; 8:45 am]
BILLING CODE 3510–DS–P
COMMISSION OF FINE ARTS
Notice of Meeting
The next meeting of the U.S.
Commission of Fine Arts is scheduled
for 16 September 2010, at 10 a.m. in the
Commission offices at the National
Building Museum, Suite 312, Judiciary
Square, 401 F Street, NW., Washington,
DC 20001–2728. Items of discussion
may include buildings, parks and
memorials.
Draft agendas and additional
information regarding the Commission
are available on our Web site: https://
www.cfa.gov. Inquiries regarding the
agenda and requests to submit written
or oral statements should be addressed
to Thomas Luebke, Secretary, U.S.
Commission of Fine Arts, at the above
address; by e-mailing staff@cfa.gov; or
by calling 202–504–2200. Individuals
requiring sign language interpretation
for the hearing impaired should contact
the Secretary at least 10 days before the
meeting date.
E:\FR\FM\02SEN1.SGM
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Agencies
[Federal Register Volume 75, Number 170 (Thursday, September 2, 2010)]
[Notices]
[Pages 53953-53957]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21985]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-549-821]
Polyethylene Retail Carrier Bags From Thailand: Preliminary
Results of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from interested parties, the
Department of Commerce (the Department) is conducting an administrative
review of the antidumping duty order on polyethylene retail carrier
bags (PRCBs) from Thailand. The review covers five exporters/producers.
The period of review (POR) is August 1, 2008, through July 31, 2009. We
have preliminarily determined that sales have been made below normal
value by companies subject to this review.
We invite interested parties to comment on these preliminary
results. Parties who submit comments in this review are requested to
submit with each argument (1) a statement of the issue and (2) a brief
summary of the argument.
DATES: Effective Date: September 2, 2010.
FOR FURTHER INFORMATION CONTACT: Thomas Schauer or Richard Rimlinger,
AD/CVD Operations, Office 5, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0410 or (202) 482-4477, respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 9, 2004, the Department published in the Federal Register
the antidumping duty order on PRCBs from Thailand. See Antidumping Duty
Order: Polyethylene Retail Carrier Bags From Thailand, 69 FR 48204
(August 9, 2004). On September 22, 2009, we published a notice of
initiation of an administrative review of six companies. See Initiation
of Antidumping and Countervailing Duty Administrative Reviews and
Request for Revocation in Part, 74 FR 48224 (September 22, 2009).\1\
Since initiation of the review, we selected Landblue and TPBI for
individual examination. See Memorandum to Laurie Parkhill dated October
15, 2009. In addition, we extended the due date for completion of these
preliminary results. See Polyethylene Retail Carrier Bags from
Thailand: Extension of Time Limit for Preliminary Results of
Antidumping Duty Administrative Review, 75 FR 23673 (May 4, 2010), and
Polyethylene Retail Carrier Bags From Thailand: Extension of Time Limit
for Preliminary Results of Antidumping Duty Administrative Review, 75
FR 36359 (June 25, 2010). Finally, we rescinded the review with respect
to Landblue. See Polyethylene Retail Carrier Bags from Thailand:
Rescission of Antidumping Duty Administrative
[[Page 53954]]
Review in Part, 75 FR 34699 (June 18, 2010).
---------------------------------------------------------------------------
\1\ We stated that the review covers the following companies:
C.P. Packaging Co., Ltd., Giant Pack Co., Ltd., Landblue (Thailand)
Co., Ltd. (Landblue), Sahachit Watana Plastics Ind. Co., Ltd., Thai
Plastic Bags Industries Co., Ltd. (TPBI), and Thantawan Industry
Public Co., Ltd. Id., 74 FR at 48226. The Department has determined
previously that TPBI, APEC Film Ltd., and Winner's Pack Co., Ltd.,
comprise the Thai Plastic Bags Group. See Notice of Final
Determination of Sales at Less than Fair Value: Polyethylene Retail
Carrier Bags From Thailand, 69 FR 34122, 34123 (June 18, 2004).
---------------------------------------------------------------------------
The POR is August 1, 2008, through July 31, 2009. We are conducting
this review in accordance with section 751(a) of the Tariff Act of
1930, as amended (the Act).
Scope of the Order
The merchandise subject to the antidumping duty order is PRCBs,
which may be referred to as t-shirt sacks, merchandise bags, grocery
bags, or checkout bags. The subject merchandise is defined as non-
sealable sacks and bags with handles (including drawstrings), without
zippers or integral extruded closures, with or without gussets, with or
without printing, of polyethylene film having a thickness no greater
than 0.035 inch (0.889 mm) and no less than 0.00035 inch (0.00889 mm),
and with no length or width shorter than 6 inches (15.24 cm) or longer
than 40 inches (101.6 cm). The depth of the bag may be shorter than 6
inches but not longer than 40 inches (101.6 cm).
PRCBs are typically provided without any consumer packaging and
free of charge by retail establishments, e.g., grocery, drug,
convenience, department, specialty retail, discount stores, and
restaurants, to their customers to package and carry their purchased
products. The scope of the order excludes (1) polyethylene bags that
are not printed with logos or store names and that are closeable with
drawstrings made of polyethylene film and (2) polyethylene bags that
are packed in consumer packaging with printing that refers to specific
end-uses other than packaging and carrying merchandise from retail
establishments, e.g., garbage bags, lawn bags, trash-can liners.
As a result of changes to the Harmonized Tariff Schedule of the
United States (HTSUS), imports of the subject merchandise are currently
classifiable under statistical category 3923.21.0085 of the HTSUS.
Furthermore, although the HTSUS subheading is provided for convenience
and customs purposes, the written description of the scope of the order
is dispositive.
Selection of Respondents
Due to the large number of companies in the review and the
resulting administrative burden to examine each company for which a
request had been made and not withdrawn, the Department exercised its
authority to limit the number of respondents selected for examination.
Where it is not practicable to examine all known exporters/producers of
subject merchandise because of the large number of such companies,
section 777A(c)(2) of the Act allows the Department to limit its
examination to either a sample of exporters, producers, or types of
products that is statistically valid, based on the information
available at the time of selection, or exporters and producers
accounting for the largest volume of subject merchandise from the
exporting country that can be reasonably examined.
Accordingly, based on our analysis of U.S. Customs and Border
Protection (CBP) import data on the record of this review (see letters
from Laurie Parkhill to Daniel L. Schneiderman and to Victor S. Mroczka
dated September 28, 2009) and our available resources, we decided to
examine the sales of Landblue and TPBI. See Memorandum to Laurie
Parkhill regarding respondent selection, dated October 15, 2009.
Because we rescinded the review with respect to Landblue, for the
companies which remain under review and which we did not select for
individual examination, we have determined the margin based on the
weighted-average margin of TPBI, the sole remaining respondent selected
for individual examination in this review.
Affiliation
TPBI has argued that a certain company (Company A) is not
affiliated with TPBI although TPBI and Company A mutually own a company
in Vietnam that produces PRCBs. See TPBI's Section A response dated
December 9, 2009, at page A-6. We have preliminarily determined that
Company A is ``operationally in a position to exercise restraint or
direction'' over TPBI, pursuant to section 771(33)(F) of the Act.
Accordingly, we have preliminarily determined that Company A is
affiliated with TPBI. Because of the proprietary nature of this
analysis, see the Memorandum to Laurie Parkhill entitled ``Polyethylene
Retail Carrier Bags from Thailand--Affiliation'' dated August 26, 2010,
for a complete discussion of this determination.
Export Price
For the price to the United States for TPBI, we used export price
(EP) as defined in section 772(a) of the Act. We calculated EP based on
the packed free-on-board or delivered price to unaffiliated purchasers
in, or for exportation to, the United States. See section 772(c) of the
Act. We made deductions for any movement expenses in accordance with
section 772(c)(2)(A) of the Act. We made adjustments for duty drawback
under the Investment Promotion Act and under Section 19 BIS of the
Customs Act claimed by TPBI in accordance with section 772(c)(1)(B) of
the Act. For a detailed explanation of these adjustments, see
Memorandum entitled ``Polyethylene Retail Carrier Bags from Thailand--
Thai Plastic Bags Industries Group Preliminary Results Analysis
Memorandum 8/1/08--7/31/09,'' dated August 26, 2010 (Analysis Memo).
Comparison-Market Sales
Based on a comparison of the aggregate quantity of home-market and
U.S. sales and absent any information that a particular market
situation in the exporting country did not permit a proper comparison,
we determined that the quantity of foreign like product sold by TPBI in
Thailand was sufficient to permit a proper comparison with the sales of
the subject merchandise to the United States, pursuant to section
773(a) of the Act. TPBI's quantity of sales in Thailand was greater
than five percent of its quantity of sales to the U.S. market. See
section 773(a)(1) of the Act. Therefore, in accordance with section
773(a)(1)(B)(i) of the Act, we based normal value on the prices at
which the foreign like product was first sold for consumption in
Thailand in the usual commercial quantities, in the ordinary course of
trade, and at the same level of trade as the U.S. sales.
Cost of Production
In accordance with section 773(b) of the Act, we disregarded the
below-cost sales of TPBI in the most recent administrative review of
this company completed before the initiation of this review. See
Polyethylene Retail Carrier Bags from Thailand: Final Results of
Antidumping Duty Administrative Review and Partial Rescission of
Antidumping Duty Administrative Review, 72 FR 64580, 64581 (November
16, 2007). Therefore, we have reasonable grounds to believe or suspect
that TPBI's sales of the foreign like product under consideration for
the determination of normal value in this review may have been made at
prices below the cost of production (COP) as provided by section
773(b)(2)(A)(ii) of the Act. Accordingly, pursuant to section 773(b)(1)
of the Act, we have conducted a COP analysis of TPBI's sales in
Thailand in this review.
In accordance with section 773(b)(3) of the Act, we calculated the
COP based on the sum of the costs of materials and fabrication employed
in producing the foreign like product, the selling, general, and
administrative (SG&A) expenses, and all costs and expenses incidental
to packing the merchandise. In our COP analysis, we used the home-
market sales
[[Page 53955]]
and COP information TPBI provided in its questionnaire responses.
We relied on the COP data submitted by TPBI except as follows:
1. In accordance with the transactions-disregarded rule (section
773(f)(2) of the Act), we adjusted TPBI's cost of manufacturing (COM)
to reflect the market value of printing plates that were purchased from
an affiliate.
2. In accordance with the major-input rule (section 773(f)(3) of
the Act), we adjusted TPBI's COM to reflect the market value of certain
resin that was purchased from an affiliate.
3. With respect to the allocation of direct labor, variable
overhead, and fixed overhead costs, we have preliminarily determined
that the methodology reported by TPBI unreasonably distorts the COM for
the subject merchandise and the foreign like product. This reported
methodology is not only inconsistent with the methodology applied by
TPBI in its books and records, it also results in a large variability
in costs that have nothing to do with physical differences in the
merchandise. Accordingly, pursuant to section 776(a) of the Act, as
facts otherwise available, we have weight-averaged these costs on a
per-unit basis in order to prevent such significant differences in
costs between physically similar merchandise. See Statement of
Administrative Action, URAA, H. Doc. 316, Vol. 1, 103rd Cong. (1994),
at 834-5 (stating that, if the Department determines that costs
reported by a respondent ``shifted away costs from the production of
the subject merchandise, or the foreign like product,'' the Department
has the authority to ``adjust costs appropriately to ensure that they
(the costs) are not artificially reduced'').
3. We adjusted TPBI's reported COM to remove an offset claimed by
TPBI for revenue associated with the Government of Thailand's Blue
Corner Rebate program.
For additional details on these adjustments, see Memorandum to Neal
M. Halper entitled ``Cost of Production and Constructed Value
Calculation Adjustments for the Preliminary Results'' dated August 26,
2010 (Cost Memo).
Alternative Cost Methodology
The Department's normal practice is to calculate an annual
weighted-average cost for the entire period of investigation (POI) or
POR. See, e.g., Certain Pasta from Italy: Final Results of Antidumping
Duty Administrative Review, 65 FR 77852 (December 13, 2000), and the
accompanying Issues and Decision Memorandum at Comment 18. We recognize
that possible distortions may result if we use our normal annual-
average cost methodology during a period of significant cost changes.
In determining whether to deviate from our normal methodology of
calculating an annual weighted-average cost, we evaluate the case-
specific record evidence using two primary factors: (1) The change in
the COM recognized by the respondent during the POI or POR must be
deemed significant; (2) the record evidence must indicate that sales
prices during the shorter averaging periods (e.g., quarters rather than
the POR) could be reasonably linked with the COP during the same
shorter averaging periods. See, e.g., Stainless Steel Plate in Coils
From Belgium: Final Results of Antidumping Duty Administrative Review,
73 FR 75398 (December 11, 2008), and the accompanying Issues and
Decision Memorandum at Comment 4 and Stainless Steel Sheet and Strip in
Coils From Mexico; Final Results of Antidumping Duty Administrative
Review, 75 FR 6627 (February 10, 2010), and the accompanying Issues and
Decision Memorandum at Comment 6. This methodology was recently upheld
by the Court of International Trade in SeAH Steel Corporation v. United
States, Slip. Op. 10-60 (CIT May 19, 2010), as supported by substantial
evidence and otherwise in accordance with law.
1. Significance of Cost Changes
Record evidence shows that TPBI experienced significant changes in
its total COM during the POR and that these changes were primarily
attributable to the price volatility of its raw-material inputs used to
produce the merchandise under consideration. Because of the proprietary
nature of this analysis, see the Cost Memo for a more complete
discussion of this determination.
2. Linkage Between Cost and Sales Information
If the Department finds cost changes to be significant in a given
investigation or administrative review, the Department evaluates
whether there is evidence of linkage between the cost changes and the
sales prices for the POI or POR. Our definition of linkage does not
require direct traceability between specific sales and their specific
production cost but, rather, relies on whether there are elements which
would demonstrate a reasonable correlation between the underlying costs
and the final sales prices charged by the company.
Because we received the data necessary for a determination with
respect to the linkage between the cost changes and the sales prices
for the POR shortly before the statutory due date for the issuance of
these preliminary results, we have not yet reached a conclusion as to
whether there is evidence of such linkage in this review. After these
preliminary results are published, we will issue our analysis regarding
quarterly costs as well as any margin recalculations, if appropriate.
Thus, for these preliminary results, we have not applied our quarterly
cost methodology but, rather, have applied our standard methodology of
using annual costs based on the data TPBI reported, adjusted as
described in the ``Cost of Production'' section above.
Results of Cost Test and Cost-Recovery Test
After calculating the COP in accordance with section 773(b)(1) of
the Act, we tested whether home-market sales of the foreign like
product were made at prices below the COP within an extended period of
time in substantial quantities and whether such prices permitted the
recovery of all costs within a reasonable period of time. See section
773(b)(2) of the Act. We compared model-specific COPs to the reported
home-market prices less any applicable movement charges, discounts, and
rebates.
Pursuant to section 773(b)(2)(C) of the Act, when less than 20
percent of TPBI's sales of a given product were made at prices less
than the COP, we did not disregard any below-cost sales of that product
because the below-cost sales were not made in substantial quantities
within an extended period of time. When 20 percent or more of TPBI's
sales of a given product during the POR were made at prices less than
the COP, we disregarded the below-cost sales because they were made in
substantial quantities within an extended period of time pursuant to
sections 773(b)(2)(B) and (C) of the Act.
Further, in accordance with section 773(b)(2)(D) of the Act, we
compared prices to weighted-average per-unit COPs for the POR and
determined that these sales were at prices which would not permit
recovery of all costs within a reasonable period of time. Because we
are applying our standard annual-average cost test in these preliminary
results, we have also applied our standard cost-recovery test with no
adjustments. Based on both of these tests, we disregarded certain sales
made by TBPI in the home market which were made at below-cost prices.
[[Page 53956]]
Model-Matching Methodology
In making our comparisons of U.S. sales with sales of the foreign
like product in the home market, we used the following methodology. If
an identical comparison-market model with identical physical
characteristics as listed below was reported, we made comparisons to
weighted-average home-market prices that were based on all sales which
passed the COP test of the identical product during a contemporaneous
month. If there were no contemporaneous sales of an identical model, we
identified the most similar home-market model. To determine the most
similar model, we matched the foreign like product based on physical
characteristics reported by the respondent in the following order of
importance: (1) Quality, (2) bag type, (3) length, (4) width, (5)
gusset, (6) thickness, (7) percentage of high-density polyethylene
resin, (8) percentage of low-density polyethylene resin, (9) percentage
of low linear-density polyethylene resin, (10) percentage of color
concentrate, (11) percentage of ink coverage, (12) number of ink
colors, and (13) number of sides printed.
Normal Value
We based home-market prices on the packed, ex-factory, or delivered
prices to unaffiliated purchasers. When applicable, we made adjustments
for differences in packing and for movement expenses in accordance with
sections 773(a)(6)(A) and (B) of the Act. We also made adjustments for
differences in cost attributable to differences in physical
characteristics of the merchandise pursuant to section 773(a)(6)(C)(ii)
of the Act and 19 CFR 351.411, adjusted as described in the ``Cost of
Production'' section above, and for differences in circumstances of
sale in accordance with section 773(a)(6)(C)(iii) of the Act and 19 CFR
351.410. We made circumstance-of-sale adjustments by deducting home-
market direct selling expenses from and adding U.S. direct selling
expenses to normal value.
In accordance with section 773(a)(1)(B)(i) of the Act, we based
normal value at the same level of trade as the EP sales. See the
``Level of Trade'' section below.
Constructed Value
In accordance with section 773(a)(4) of the Act, we used
constructed value as the basis for normal value when there were no
contemporaneous comparable sales of the foreign like product in the
comparison market. We calculated constructed value in accordance with
section 773(e) of the Act. We included the cost of materials and
fabrication, adjusted as described in the ``Cost of Production''
section above, SG&A expenses, U.S. packing expenses, and profit in the
calculation of constructed value. In accordance with section
773(e)(2)(A) of the Act, we based SG&A expenses and profit on the
amounts incurred and realized by TPBI in connection with the production
and sale of the foreign like product in the ordinary course of trade
for consumption in the home market.
When appropriate, we made adjustments to constructed value in
accordance with section 773(a)(8) of the Act, 19 CFR 351.410, and 19
CFR 351.412 for circumstance-of-sale differences and level-of-trade
differences. We made circumstance-of-sale adjustments by deducting
home-market direct selling expenses from and adding U.S. direct selling
expenses to constructed value. We also made adjustments, when
applicable, for home-market indirect selling expenses to offset U.S.
commissions. We calculated constructed value at the same level of trade
as the EP. For a detailed explanation of the calculations, see Analysis
Memo.
TPBI argued that the Department should not exclude home-market
sales that fail the cost test from its calculation of profit for
constructed value (CV profit). Citing Atar, S.r.l. v. United States,
637 F. Supp. 2d 1068, 1092 (CIT 2009) (Atar), TPBI asserts that the
Court of International Trade has found the Department's practice of
excluding home-market sales that fail the cost test from its
calculation of CV profit to be contrary to law. TPBI misunderstands the
Court's analysis in Atar. That decision does not apply to the facts of
this case because the Atar decision was made with regard to a statutory
provision not at issue here.
Section 773(e)(2)(A) of the Act provides that, in calculating CV
profit, the Department will only use ``actual amounts'' incurred ``in
the ordinary course of trade'' in the home market. Section 771(15)(A)
of the Act makes clear that home-market sales that failed the cost test
are outside the ordinary course of trade. Section 773(e)(2)(B) of the
Act, on the other hand, applies if those actual amounts are not
available. In the administrative review challenged in Atar, Notice of
Preliminary Results and Partial Rescission of Antidumping Duty
Administrative Review: Ninth Administrative Review of the Antidumping
Duty Order on Certain Pasta from Italy, 71 FR 45017 (August 8, 2006)
(unchanged in final; 72 FR 7011, February 14, 2007) (Pasta from Italy),
the respondent did not have a viable home market so the Department
calculated CV profit pursuant to section 773(e)(2)(B) of the Act.
At issue in Atar was the fact that there is no ``ordinary course of
trade'' language in section 773(e)(2)(B) of the Act yet the Department
nonetheless excluded sales that failed the cost test from its
calculation of CV profit. The plaintiff, Atar, argued that the
Department must calculate these respondent companies' profit rates
based on all sales, above and below cost, for purposes of calculating
CV profit pursuant to section 773(e)(2)(B) of the Act. The Court agreed
with Atar, finding that the Department erred in excluding below-cost
sales in its calculation of CV profit because such a requirement only
applies when a viable home market exists, pursuant to section
773(e)(2)(A) of the Act. See Atar, 637 F. Supp. 2d 1068, 1092 (CIT
2009).\2\
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\2\ A similar decision to reject the Department's interpretation
under section 773(e)(2)(B) of the Act was reversed in Thai I-Mei
Frozen Foods Co., Ltd., v. United States, 2010 U.S. App. LEXIS 16677
(Fed. Cir. 2010).
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In this review, by contrast, TPBI does have a viable home market
and, therefore, we can determine selling expenses and profit under
section 773(e)(2)(A) of the Act. Accordingly, consistent with that
provision, we have used only sales made within the ordinary course of
trade in calculating CV profit.
Level of Trade
To the extent practicable, we determined normal value for sales at
the same level of trade as the U.S. sales. The normal-value level of
trade is that of the starting-price sales in the home market. When
normal value is based on constructed value, the level of trade is that
of the sales from which we derived SG&A and profit.
To determine whether home-market sales are at a different level of
trade than U.S. sales, we examined stages in the marketing process and
selling functions along the chain of distribution between the producer
and the unaffiliated customer. This analysis revealed that there were
not any significant differences in selling functions between different
channels of distribution or customer type in either the home or U.S.
markets. Therefore, we determined that TPBI made all home-market sales
at one level of trade. Moreover, we determined that all home-market
sales by TPBI were made at the same level of trade as its U.S. sales.
For a more detailed discussion, see Analysis Memo. Accordingly, we
compared TPBI's U.S. sales to its home-market sales, all of
[[Page 53957]]
which were made at the same level of trade.
Preliminary Results of Review
As a result of our review, we preliminarily determine that the
following percentage weighted-average dumping margins on PRCBs from
Thailand exist for the period August 1, 2008, through July 31, 2009:
------------------------------------------------------------------------
Percent
Producer/exporter margin
------------------------------------------------------------------------
TPBI....................................................... 20.41
C.P. Packaging Co., Ltd.................................... 20.41
Giant Pack Co., Ltd........................................ 20.41
Sahachit Watana Plastics Ind. Co., Ltd..................... 20.41
Thantawan Industry Public Co., Ltd......................... 20.41
------------------------------------------------------------------------
Comments
We will disclose the calculations used in our analysis to
interested parties to this review within five days of the date of
publication of this notice. See 19 CFR 351.224(b). Any interested party
may request a hearing within 30 days of the date of publication of this
notice. See 19 CFR 351.310. Interested parties who wish to request a
hearing or to participate in a hearing if a hearing is requested must
submit a written request to the Assistant Secretary for Import
Administration within 30 days of the date of publication of this
notice. Requests should contain the following information: (1) The
party's name, address, and telephone number; (2) the number of
participants; (3) a list of issues to be discussed. See 19 CFR
351.310(c).
Issues raised in the hearing will be limited to those raised in the
case briefs. See 19 CFR 351.310(c). Case briefs from interested parties
may be submitted not later than seven (7) days after the date on which
we issue our determination regarding quarterly costs. See 19 CFR
351.309(c)(1)(ii). Rebuttal briefs from interested parties, limited to
the issues raised in the case briefs, may be submitted not later than
five days after the time limit for filing the case briefs or comments.
See 19 CFR 351.309(d)(1). If requested, any hearing will be held two
days after the scheduled date for submission of rebuttal briefs. See 19
CFR 351.310(d). Parties who submit case briefs or rebuttal briefs in
this review are requested to submit with each argument a statement of
the issue, a summary of the arguments not exceeding five pages, and a
table of statutes, regulations, and cases cited. See 19 CFR
351.309(c)(2). The Department will issue the final results of this
administrative review, including the results of its analysis of issues
raised in any such written briefs or at the hearing, if held, not later
than 120 days after the date of publication of this notice. See section
751(a)(3)(A) of the Act.
Assessment Rates
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. In accordance with 19 CFR
351.212(b)(1), we have calculated for TPBI an importer (or customer)-
specific assessment value for merchandise subject to this review by
dividing the total dumping margin (calculated as the difference between
normal value and EP) for each importer or customer by the total
kilograms the exporter sold to that importer or customer. We will
instruct CBP to assess the resulting per-kilogram amount against each
kilogram of merchandise in each of that importer's/customer's entries
during the POR.
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003. This clarification applies to entries of subject
merchandise during the POR produced by TPBI for which it did not know
its merchandise was destined for the United States. In such instances,
we will instruct CBP to liquidate unreviewed entries at the all-others
rate if there is no rate for the intermediate company(ies) involved in
the transaction. For a full discussion of this clarification, see
Antidumping and Countervailing Duty Proceedings: Assessment of
Antidumping Duties, 68 FR 23954 (May 6, 2003).
For the companies which were not selected for individual
examination, we will instruct CBP to apply the rates listed above to
all entries of subject merchandise produced and/or exported by such
firms.
We intend to issue liquidation instructions to CBP 15 days after
publication of the final results of review.
Cash-Deposit Requirements
The following deposit requirements will be effective upon
publication of the notice of final results of administrative review for
all shipments of PRCBs from Thailand entered, or withdrawn from
warehouse, for consumption on or after the date of publication, as
provided by section 751(a)(2) of the Act: (1) The cash-deposit rates
for the reviewed companies will be the rates established in the final
results of review; (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; (4) if neither the
exporter nor the manufacturer has its own rate, the cash-deposit rate
will be 2.80 percent, the all-others rate for this proceeding. These
deposit requirements, when imposed, shall remain in effect until
further notice.
Notification to Importer
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 26, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-21985 Filed 9-1-10; 8:45 am]
BILLING CODE 3510-DS-P