Polyethylene Terephthalate Film, Sheet, and Strip From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review, 40325-40329 [2011-17210]
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Federal Register / Vol. 76, No. 131 / Friday, July 8, 2011 / Notices
Background
DEPARTMENT OF COMMERCE
On December 28, 2010, the U.S.
Department of Commerce
(‘‘Department’’) published a notice of
initiation of administrative review of the
antidumping duty order on diamond
sawblades and parts thereof from the
Republic of Korea, covering the period
January 23, 2009, through October 31,
2010. See Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Request for Revocation In
Part, 75 FR 81565 (December 28, 2010).
The preliminary results of this
administrative review are currently due
no later than August 2, 2011.
International Trade Administration
Statutory Time Limits
Section 751(a)(3)(A) of the Tariff Act
of 1930, as amended (‘‘the Act’’),
requires the Department to issue the
preliminary results of an administrative
review within 245 days after the last day
of the anniversary month of an order for
which a review is requested and issue
the final results within 120 days after
the date on which the preliminary
results are published. However, if it is
not practicable to complete the review
within the time period, section
751(a)(3)(A) of the Act allows the
Department to extend these deadlines to
a maximum of 365 days and 180 days,
respectively.
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Extension of Time Limit for Preliminary
Results
The Department devoted substantial
time to resolving model-matching issues
earlier in this proceeding and requires
additional time to analyze the complex
issues in this case, such as the further
manufacturing performed by some of
the respondents. Therefore, it is not
practicable to complete the preliminary
results of this review within the original
time limit, and the Department is
extending the time limit for completion
of the preliminary results by 120 days.
The preliminary results will now be due
no later than November 30, 2011, which
is 120 days from the current deadline.
The final results continue to be due 120
days after the publication of the
preliminary results.
This notice is issued and published in
accordance with sections 751(a)(3)(A)
and 777(i)(1) of the Act.
Dated: July 1, 2011.
Gary Taverman,
Acting Deputy Assistant Secretary for
Antidumping and Antidumping Duty
Operations.
[FR Doc. 2011–17211 Filed 7–7–11; 8:45 am]
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Polyethylene Terephthalate Film,
Sheet, and Strip From the Republic of
Korea: 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
administrative review of the
antidumping duty order on
polyethylene terephthalate film, sheet
and strip (PET film) from the Republic
of Korea (Korea). This review covers one
company, Kolon Industries Inc. (Kolon)
for the period of review (POR) of June
1, 2009, through May 31, 2010. We
preliminarily determine that Kolon has
made sales below normal value (NV).
The final results of this review shall be
the basis for the assessment of
antidumping duties on entries of
merchandise covered by the final results
of this review and for future deposits of
estimated duties, where applicable.
Interested parties are invited to
comment on these preliminary results.
We will issue the final results no later
than 120 days from the date of
publication of this notice.
DATES: Effective Date: July 8, 2011.
FOR FURTHER INFORMATION CONTACT:
Tyler Weinhold or Robert James, AD/
CVD Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–1121 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On, June 1, 2010, the Department
published in the Federal Register notice
of opportunity to request an
administrative review of the
antidumping duty order on PET film
from Korea. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
To Request Administrative Review, 75
FR 30383 (June 1, 2010).
In accordance with section 751(a)(1)
of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.213(b)(2), on
June 30, 2010, Kolon requested an
administrative review of the
antidumping duty order on PET film
from Korea, and requested that the
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40325
Department revoke the antidumping
duty order with regard to Kolon.
On July 28, 2010, the Department
initiated an administrative review for
Kolon for the POR. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Requests
for Revocations in Part, 75 FR 44224
(July 28, 2010).
On August 9, 2010, we issued our
antidumping questionnaire to Kolon.
We received Kolon’s response to section
A of our questionnaire on September 14,
2010 (Kolon’s section A response). We
received Kolon’s response to sections B,
C, and D of our questionnaire on
October 4, 2010 (Kolon’s section B, C,
and D response). On January 14, 2011,
we issued a supplemental questionnaire
to Kolon which covered sections A
through C. Kolon responded to this
supplemental questionnaire on February
22, 2011 (Kolon’s February 22, 2011
response). On June 21, 2011, we issued
a supplemental questionnaire to Kolon
which covered elements of section B.
Kolon responded to this supplemental
questionnaire on June 27, 2011
On January 25, 2011, we extended the
deadline for the preliminary results of
this review until no later than June 30,
2011. See Polyethylene Terephthalate
Film, Sheet, and Strip From the
Republic of Korea: Extension of Time
Limit for Preliminary Results of
Antidumping Duty Administrative
Review, 76 FR 4288 (January 25, 2011).
Verification
Between March 23, 2011 and March
25, 2011, the Department verified
Kolon’s questionnaire responses at
Kolon’s U.S. reseller, Kolon USA, at
Kolon USA’s headquarters in Fairfield,
New Jersey. See Memorandum from
Tyler Weinhold and Scott Hoefke to
Richard Weible Regarding ‘‘Verification
of the Cost of Production and
constructed Value Data Submitted by
Kolon industries, Inc. in the Review of
Polyethylene Terephalate (PET) Film
from South Korea,’’ which will soon be
released. Between April 4, 2011, and
April 8, 2011, the Department verified
Kolon’s questionnaire responses at
Kolon’s headquarters in Kwachon,
Kyonggi-Do, Korea. See Memorandum
from Tyler Weinhold and Scott Hoefke
to Richard Weible Regarding
‘‘Verification of the Cost of Production
and constructed Value Data Submitted
by Kolon industries, Inc. in the Review
of Polyethylene Terephalate (PET) Film
from South Korea,’’ which will soon be
released. Between April 25, 2011, and
April 29, 2011, the Department also
verified Kolon’s questionnaire responses
regarding its costs of production and
constructed value data at Kolon’s
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headquarters in Kwachon, Kyonggi-Do,
Korea. See Memorandum from
Christopher Zimpo and Theresa Deeley
to Neal Halper, regarding ‘‘Verification
of the Cost of Production and
constructed Value Data Submitted by
Kolon industries, Inc. in the Review of
Polyethylene Terephalate (PET) Film
from South Korea,’’ dated June 30, 2011
(Cost Calculation Memorandum).
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Requests for Revocation, In Part
In its request for this review, Kolon
requested that the order be partially
revoked with respect to Kolon. Kolon
argued that assuming that it had
maintained three consecutive years of
sales at not less than NV, the company
would be eligible for revocation under
section 751(d) of the Act and 19 CFR
351.222(b)(2). We preliminarily
determine not to revoke the order with
respect to Kolon. 19 CFR 351.222(b)(2)
sets out rules and procedures for
possible partial revocation of a dumping
order under section 751(d) of the Act if
a respondent has maintained three
consecutive years of sales at not less
than NV. In its request for revocation,
Kolon argued that with the completion
of this review, it would have maintained
three consecutive years of sales at not
less than NV and would, therefore, be
eligible for revocation under section
751(d)(1) of the Act and 19 CFR
351.222(b)(2). Kolon was found to have
had de minimus margins of dumping
(below 0.5 percent) in the two
administrative reviews immediately
prior to the instant administrative
review. However, for these preliminary
results, based on sales and production
data provided by Kolon, and as adjusted
by the Department, we have calculated
a non-de minimis margin for Kolon, i.e.,
0.81 percent. Therefore, under section
751(d)(1) of the Act and 19 CFR
351.222(b)(2), we have preliminarily
determined not to revoke the order with
respect to Kolon.
Scope of the Order
Imports covered by this order are
shipments of all gauges of raw,
pretreated, or primed polyethylene
terephthalate film, sheet, and strip,
whether extruded or coextruded. The
films excluded from this review are
metallized films and other finished
films that have had at least one of their
surfaces modified by the application of
a performance-enhancing resinous or
inorganic layer more than 0.00001
inches (0.254 micrometers) thick.
PET film is currently classifiable
under Harmonized Tariff Schedule of
the United States (HTSUS) subheading
3920.62.00. The HTSUS subheading is
provided for convenience and for
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customs purposes. The written
description remains dispositive as to the
scope of the product coverage.
market to compare to a U.S. sale, we
compared the price of the U.S. sale to
constructed value (CV).
Period of Review
The POR is June 1, 2009, to May 31,
2010.
Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we base NV on sales made
in the home market at the same level of
trade (LOT) as the CEP or EP sales in the
U.S. market. The NV LOT is defined as
the starting-price sales in the home
market or, when NV is based on CV, as
the sales from which selling, general,
and administrative (SG&A) expenses
and profit are derived. See 19 CFR
351.412(c)(1). The EP LOT is defined as
the starting price in the United States to
the unaffiliated U.S. customer. See id.
With respect to CEP transactions in the
U.S. market, the CEP LOT is defined as
the level of the constructed sale from
the exporter to the importer. See 19 CFR
351.412(c)(1)(ii).
To determine whether home market
sales are at a different LOT than CEP
sales, we examine stages in the
marketing process and selling functions
along the chain of distribution between
the producer and the unaffiliated
customer. See 19 CFR 351.412(c)(2). If
the home-market sales are at different
LOTs, and the difference affects price
comparability, as manifested in a
pattern of consistent price differences
between the sales on which NV is based
and comparison-market sales at the LOT
of the export transaction, we make a
LOT adjustment under section
773(a)(7)(A) of the Act. For CEP sales, if
the NV level is more remote from the
factory than the CEP level and there is
no basis for determining whether the
difference in the levels between NV and
CEP affects price comparability, we
adjust NV under section 773(a)(7)(B) of
the Act (the CEP offset provision). See,
e.g., Certain Hot-Rolled Flat-Rolled
Carbon Quality Steel Products from
Brazil; Preliminary Results of
Antidumping Duty Administrative
Review, 70 FR 17406, 17410 (April 6,
2005); unchanged in Notice of Final
Results of Antidumping Duty
Administrative Review: Certain HotRolled Flat-Rolled Carbon Quality Steel
Products from Brazil, 70 FR 58683
(October 7, 2005). For CEP sales, we
consider only the selling activities
reflected in the price after the deduction
of expenses and CEP profit under
section 772(d) of the Act. See Micron
Technology, Inc. v. United States, 243
F.3d 1301, 1314–1315 (Fed. Cir. 2001).
We expect that if the LOTs claimed by
the respondent are the same, the
functions and activities of the seller
should be similar. Conversely, if a party
claims that the LOTs are different for
Comparisons to Normal Value
To determine whether sales of PET
film from Korea to the United States
were made at less than normal value
(NV), we compared Kolon’s constructed
export price (CEP) or export price (EP)
sales made in the United States to
unaffiliated purchasers to NV, as
described in the ‘‘United States Price’’
and ‘‘Normal Value’’ sections of this
notice, below. In accordance with
section 777A(d)(2) of the Act, we
compared the CEP and EP of individual
transactions to monthly weightedaverage NVs.
Product Comparisons
In accordance with section 771(16) of
the Act we considered all products
produced by Kolon covered by the
description in the ‘‘Scope of the Order’’
section, above, and sold in the home
market during the POR, to be foreign
like products for purposes of
determining appropriate product
comparisons to U.S. sales. We first
attempted to compare contemporaneous
U.S. and comparison-market sales of
products that are identical with respect
to the following characteristics: (1)
Specification; (2) thickness; (3) surface
treatment; and (4) grade. Consistent
with the methodology employed in the
2008 to 2009 administrative review of
this order, and in the less than fair value
(LTFV) investigation of PET film from
Thailand, we used the actual
thicknesses of the film rather than a
range of thicknesses for product
comparison purposes. See Polyethylene
Terephthalate Film, Sheet, and Strip
from the Republic of Korea: Preliminary
Results of Antidumping Duty
Administrative Review, 75 FR 40784
(July 14, 2010) (unchanged in the Final
Results, 75 FR 70901 (November 19,
2010)) and Notice of Preliminary
Determination of Sales at Not Less Than
Fair Value: Polyethylene Terephthalate
Film, Sheet, and Strip from Thailand,
73 FR 24565, 24567 (May 5, 2008)
(unchanged in the Final Determination,
73 FR 64912 (October 31, 2008)). Where
we were unable to compare sales of
identical merchandise, we compared
U.S. sales to home market sales of the
most similar merchandise based on the
above characteristics. Where there were
no sales of the foreign like product of
the identical merchandise in the
ordinary course of trade in the home
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different groups of sales, the functions
and activities of the seller should be
dissimilar. See Porcelain-on-Steel
Cookware from Mexico: Final Results of
Administrative Review, 65 FR 30068
(May 10, 2000) and accompanying
Issues and Decisions Memorandum at
Comment 6.
We obtained information from Kolon
regarding the marketing stages involved
in making its reported foreign market
and U.S. sales to unaffiliated customers.
Kolon provided a description of all
selling activities performed, along with
a flowchart and tables comparing the
LOTs among each channel of
distribution and customer category for
both markets. See Kolon’s section A
response at Exhibit A–12.
For the home market, Kolon identified
two channels of distribution described
as follows: (1) Direct shipments (i.e.,
products produced to order); and (2)
warehouse shipments from inventory.
Id. Within each of these two channels of
distribution, Kolon made sales to
unaffiliated customers. Id. We reviewed
the level at which Kolon performed
each of these selling functions with
respect to each claimed channel of
distribution and customer category. For
all of the activities listed (which
included sales forecasting, strategic/
economic planning, sales promotion,
packing, inventory maintenance, order
input/processing, direct sales personnel,
sales/marketing support, market
research, technical assistance, warranty
service, and freight and delivery), the
level of performance for both direct
shipments and warehouse shipments
was identical across all types of
customers. Based on our analysis of all
of Kolon’s home market selling
functions, we find all home market sales
were made at a single LOT, the home
market LOT. We also found that Kolon
provided a similar level of selling
functions on all of its EP sales, and that
the level of these EP selling functions
was comparable to the level of selling
functions Kolon performed on its home
market sales. Based on the foregoing, we
determine there is one LOT for Kolon’s
EP sales and that the EP LOT is
comparable to the home market LOT.
Kolon also indicated it made CEP
sales through its U.S. affiliate, Kolon
USA. Id. We then compared the CEP
LOT to the NV LOT. The CEP LOT is
based on the selling activities associated
with the transaction between Kolon and
its affiliated importer, Kolon USA,
whereas the NV LOT is based on the
selling activities associated with the
transactions between Kolon and
unaffiliated customers in the home
market. Our analysis indicates the
selling functions performed for sales to
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unaffiliated home market customers are
either performed at a higher degree of
intensity or are greater in number than
the selling functions performed for sales
to Kolon USA. For example, in
comparing Kolon’s selling activities, we
find there are several functions
performed in the home market which
are a performed to a lesser degree for
CEP transactions. For selling activities
performed for both home market sales
and CEP sales (which included sales
forecasting, strategic/economic
planning, sales promotion, packing,
inventory maintenance, order input/
processing, direct sales personnel, sales/
marketing support, market research,
technical assistance, warranty service,
and freight and delivery), we find Kolon
performed each activity except packing,
order input/processing, and freight and
delivery at a higher level of intensity in
the home market.
We note that CEP sales from Kolon to
Kolon USA generally occur at the
beginning of the distribution chain,
representing essentially a logistical
transfer of inventory that resembles exfactory sales. In contrast, all sales in the
home market occur closer to the end of
the distribution chain and involve
smaller volumes and more customer
interaction which, in turn, require the
performance of more selling functions.
Id. Based on the foregoing, we conclude
that the NV LOT is at a more advanced
stage than the CEP LOT. Because we
found the home market and CEP sales
were made at different LOTs, we
examined whether a LOT adjustment or
a CEP offset may be appropriate in this
review. As we found only one LOT in
the home market, it was not possible to
make a LOT adjustment to home market
prices, because such an adjustment is
dependent on our ability to identify a
pattern of consistent price differences
between the home market sales on
which NV is based and home market
sales at the LOT of the export
transaction. See 19 CFR 351.412(d)(1).
Furthermore, we have no other
information that provides an
appropriate basis for determining a LOT
adjustment. Because the data available
do not form an appropriate basis for
making a LOT adjustment, and because
the NV LOT is at a more advanced stage
of distribution than the CEP LOT, we
have made a CEP offset to NV in
accordance with section 773(a)(7)(B) of
the Act.
United States Price
Section 772(a) of the Act defines EP
as ‘‘the price at which the subject
merchandise is first sold (or agreed to be
sold) before the date of importation by
the producer or exporter of the subject
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merchandise outside of the United
States to an unaffiliated purchaser in the
United States or to an unaffiliated
purchaser for exportation to the United
States, as adjusted under subsection (c)
of this section.’’ Section 772(b) of the
Act defines CEP as ‘‘the price at which
the subject merchandise is first sold (or
agreed to be sold) in the United States
before or after the date of importation by
or for the account of the producer or
exporter of the subject merchandise or
by a seller affiliated with the producer
or exporter, to a purchaser not affiliated
with the producer or exporter, as
adjusted under subsections (c) and (d).’’
For purposes of this administrative
review, Kolon classified all of its U.S.
sales invoiced by Kolon and shipped
directly from Korea to the unaffiliated
U.S. customer as EP sales. Kolon
reported all sales that were invoiced
through its U.S. subsidiary Kolon USA
as CEP transactions. For these
preliminary results, we have accepted
these classifications. The merchandise
shipped directly to unaffiliated
customers in the U.S. market was not
sold through an affiliated U.S. importer,
and we find no other grounds for
treating these transactions as CEP sales.
We, therefore, preliminarily determine
that these transactions were EP sales.
We have classified as CEP transactions
the merchandise invoiced through
Kolon USA because these sales were
‘‘sold in the United States’’ within the
meaning of section 772(b) of the Act.
Export Price
We calculated EP in accordance with
section 772(a) of the Act. We based EP
on packed prices to customers in the
United States. We made adjustments for
the following movement expenses in
accordance with section 772(c)(2)(A) of
the Act: foreign inland freight from
plant to port of exportation, brokerage
and handling incurred in the country of
manufacture, and international freight.
Finally, we made an addition to U.S.
price for duty drawback in accordance
with section 772(c)(1)(B) of the Act
based upon Kolon’s demonstration that
it received duty drawback on imported
materials used in the production of PET
film. See Kolon’s sections B and D
responses, and section C response at
C–34 to C–35 and Exhibit C–16.
Constructed Export Price
In accordance with section 772(b) of
the Act, for those sales to the first
unaffiliated purchaser that took place
after importation into the United States,
we calculated CEP. We based CEP on
packed prices to unaffiliated purchasers
in the United States. We made
adjustments for billing adjustments. We
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made deductions for movement
expenses in accordance with section
772(c)(2)(A) of the Act; these included
foreign inland freight from plant to port
of exportation, brokerage and handling
incurred in the country of manufacture,
international freight, marine insurance,
brokerage and handling incurred in the
United States, U.S. customs duties,
other U.S. transportation port storage
charges, U.S. warehousing expense, and
U.S. inland freight from port or
warehouse to customer. As further
directed by section 772(d)(1) of the Act,
we deducted those selling expenses
associated with economic activity in the
United States including direct selling
expenses (i.e., commissions, U.S. credit
expenses, and bank charges), inventory
carrying costs, and other U.S. indirect
selling expenses. We also made an
adjustment for profit in accordance with
section 772(d)(3) of the Act. Finally, we
made an addition to U.S. price for duty
drawback in accordance with section
772(c)(1)(B) of the Act based upon
Kolon’s demonstration that it received
duty drawback on imported materials
used in the production of PET film. See
Kolon’s section B, C, and D response at
C–34 to C–35 and Exhibit C–16 and
Kolon’s February 22, 2011, response at
SC–37.
Normal Value
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A. Selection of Comparison Market
To determine whether there is a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product is greater than five
percent of the aggregate volume of U.S.
sales), we compared Kolon’s volume of
home market sales of the foreign like
product to the volume of its U.S. sales
of the subject merchandise, in
accordance with section 773(a)(1)(B) of
the Act. Because Kolon’s aggregate
volume of home market sales of the
foreign like product was greater than
five percent of its aggregate volume of
U.S. sales for subject merchandise, we
determined the home market was viable.
See Kolon’s section A response at
Exhibit A–1.
B. Cost of Production Analysis
Pursuant to 773(b)(2)(A)(ii) of the Act,
because the Department had disregarded
certain of Kolon’s sales in the most
recently completed review in which
Kolon participated, the Department had
reasonable grounds to believe or suspect
that Kolon made home market sales at
prices below Kolon’s costs of
production (COP) in this review. See
Polyethylene Terephthalate Film, Sheet,
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and Strip From the Republic of Korea:
Final Results of Antidumping Duty
Administrative Review, 74 FR 57993
(November 10, 2009). As a result, the
Department was directed under section
773(b) of the Act to determine whether
Kolon made home market sales during
the POR at prices below its COP.
In accordance with section 773(b)(3)
of the Act, we calculated COP based on
the sum of Kolon’s cost of materials and
fabrication for the foreign like product,
plus amounts for selling, general, and
administrative expenses (SG&A),
interest expenses, and home market
packing costs. We relied on the COP
information provided by Kolon, except
for an adjustment to cost of
manufacturing (COM) related to losses
sustained by its affiliate for processing
PET film, and for an adjustment to the
financial expense ratio. See Cost
Calculation Memorandum.
To determine whether Kolon’s home
market sales had been made at prices
below the COP, we computed weightedaverage COPs during the POR, and
compared the weighted-average COP
figures to home market sales prices of
the foreign like product as required
under section 773(b) of the Act. On a
product-specific basis, we compared the
COP to the home market prices net of
billing adjustments, discounts and
rebates, any applicable movement
charges, selling expenses, and packing
expenses.
In determining whether to disregard
home market sales made at prices below
the COP, we examined, in accordance
with sections 773(b)(1)(A) and (B) of the
Act, whether, within an extended
period of time, such sales were made in
substantial quantities, and whether such
sales were made at prices which did not
permit the recovery of all costs within
a reasonable period of time in the
normal course of trade. Where less than
20 percent of the respondent’s home
market sales of a given model were at
prices below the COP, we did not
disregard any below-cost sales of that
model because we determined that the
below-cost sales were not made within
an extended period of time and in
‘‘substantial quantities.’’ See section
773(b)(2)(C) of the Act. Where 20
percent or more of the respondent’s
home market sales of a given model
were at prices less than the COP, we
normally disregard the below-cost sales
because: (1) They were made within an
extended period of time in ‘‘substantial
quantities,’’ in accordance with sections
773(b)(2)(B) and (C) of the Act; and (2)
based on our comparison of prices to the
weighted-average COPs for the POR,
they were at prices which would not
permit the recovery of all costs within
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a reasonable period of time, in
accordance with section 773(b)(2)(D) of
the Act.
We examined the cost data and
determined that our quarterly cost
methodology is not warranted and,
therefore, we have applied our standard
methodology of using annual costs
based on the data Kolon reported,
adjusted as described in the ‘‘Cost of
Production’’ section above. 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.
Our cost test for Kolon revealed that,
for home market sales of certain models,
less than 20 percent of the sales of those
models were at prices below the COP.
We therefore retained all such sales in
our analysis and used them as the basis
for determining NV. Our cost test also
indicated that for home market sales of
other models, more than 20 percent
were sold at prices below the COP
within an extended period of time and
were at prices which would not permit
the recovery of all costs within a
reasonable period of time. Thus, in
accordance with section 773(b)(1) of the
Act, we excluded these below-cost sales
from our analysis and used the
remaining above-cost sales as the basis
for determining NV.
C. Price-to-Price Comparisons
We calculated NV based on prices to
unaffiliated customers in Korea. We
used Kolon’s adjustments and
deductions as reported. We made
deductions, where appropriate, for
foreign inland freight from plant to
distribution warehouse, warehousing
expense, and foreign inland freight from
plant or distribution warehouse to
customer. Kolon incurred commission
expenses in the United States but not in
Korea. Accordingly, pursuant to 19 CFR
section 351.410(e) of the Department’s
regulations, we made an offset to normal
value for selling expenses that Kolon
incurred in Korea. As directed by 19
CFR section 351.410(e), we limited the
offset to the amount of the commissions
that Kolon incurred in the United
States. In addition, for comparisons
involving similar merchandise, we
made adjustments for differences in cost
attributable to differences in physical
characteristics of the merchandise
compared pursuant to section
773(a)(6)(C)(ii) of the Act and 19 CFR
351.411. We also made adjustments for
differences in circumstances of sale
(COS) in accordance with section
773(a)(6)(C)(iii) of the Act and 19 CFR
351.410. We made COS adjustments for
imputed credit expenses. As noted
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08JYN1
Federal Register / Vol. 76, No. 131 / Friday, July 8, 2011 / Notices
above in the ‘‘Level of Trade’’ section of
this notice, we also made an adjustment
for the CEP offset in accordance with
section 773(a)(7)(B) of the Act. Finally,
we deducted home market packing costs
and added U.S. packing costs in
accordance with sections 773(a)(6)(A)
and (B) of the Act.
Currency Conversion
We made currency conversions into
U.S. dollars based on the exchange rates
in effect on the dates of the U.S. sales,
as certified by the Federal Reserve Bank,
in accordance with section 773A(a) of
the Act.
Preliminary Results of Review
Assessment
Pursuant to 19 CFR 351.212(b), the
Department will determine, and CBP
shall assess, antidumping duties on all
appropriate entries. The Department
will issue appropriate assessment
instructions directly to CBP 15 days
after the date of publication of the final
results of this review. For assessment
purposes, we calculated importerspecific ad valorem assessment rates for
PET film from Korea based on the ratio
of the total amount of the dumping
duties calculated for the examined sales
to the total entered value of those same
sales. See 19 CFR 351.212(b).
Cash Deposit Requirements
mstockstill on DSK4VPTVN1PROD with NOTICES
We preliminarily determine the
following weighted-average dumping
margin exists for the period June 1, 2009
through May 31, 2010:
The following cash deposit
requirements will be effective for all
shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the
Weighted
average
publication date of the final results of
Manufacturer/exporter
margin
this administrative review, as provided
(percentage)
for by section 751(a)(2)(C) of the Act: (1)
Kolon Industries, Inc. ............
0.81 The cash deposit rate for Kolon will be
the rate established in the final results
of review; (2) if the exporter is not a firm
The Department will disclose to
covered in this review or the LTFV
parties the calculations performed in
investigation, but the manufacturer is,
connection with these preliminary
the cash deposit rate will be the rate
results within five days of the date of
established for the most recent period
publication of this notice. See 19 CFR
351.224(b). Pursuant to 19 CFR 351.309, for the manufacturer of the
interested parties may submit case briefs merchandise; and (3) if neither the
exporter nor the manufacturer is a firm
not later than 30 days after the
covered in this or any previous review,
publication of this notice. Rebuttal
the cash deposit rate will be the allbriefs, limited to issues raised in the
others rate of 21.50 percent from the
case briefs, may be filed not later than
LTFV investigation. See Polyethylene
35 days after the date of publication of
Terephthalate Film, Sheet, and Strip
this notice. Parties who submit case
From the Republic of Korea; Notice of
briefs or rebuttal briefs in this
proceeding are requested to submit with Final Court Decision and Amended
Final Determination of Antidumping
each argument: (1) A statement of the
Duty Investigation, 62 FR 50557
issue, (2) a brief summary of the
(September 26, 1997).
argument; and (3) a table of authorities.
Interested parties who wish to request Notification to Importers
a hearing or to participate if one is
This notice also serves as a
requested must submit a written request
preliminary reminder to importers of
to the Assistant Secretary for Import
their responsibility under 19 CFR
Administration, Room 1870, within 30
351.402(f) to file a certificate regarding
days of the date of publication of this
notice. Requests should contain: (1) The the reimbursement of antidumping
duties prior to liquidation of the
party’s name, address and telephone
relevant entries during this review
number; (2) the number of participants;
period. Failure to comply with this
and (3) a list of the issues to be
discussed. See 19 CFR 351.310(c). Issues requirement could result in the
Secretary’s presumption that
raised in the hearing will be limited to
reimbursement of antidumping duties
those raised in the case briefs.
occurred and the subsequent assessment
The Department will issue the final
of double antidumping duties.
results of this administrative review,
including the results of its analysis of
These preliminary results of
issues raised in any written briefs, not
administrative review are issued and
later than 120 days after the publication this notice is published in accordance
of this notice, pursuant to section
with sections 751(a)(1) and 777(i)(1) of
751(a)(3)(A) of the Act.
the Act.
VerDate Mar<15>2010
17:52 Jul 07, 2011
Jkt 223001
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Frm 00008
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40329
Dated: June 30, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2011–17210 Filed 7–7–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–905]
Certain Polyester Staple Fiber From
the People’s Republic of China: Notice
of Preliminary Results of the
Antidumping Duty Administrative
Review, and Intent To Revoke Order in
Part
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(‘‘Department’’) is conducting the third
administrative review of the
antidumping duty order on certain
polyester staple fiber from the People’s
Republic of China (‘‘PRC’’) for the
period of review (‘‘POR’’) June 1, 2009,
through May 31, 2010. The Department
has preliminarily determined that sales
have not been made below normal value
(‘‘NV’’) with respect to Ningbo Dafa
Chemical Fiber Co., Ltd. (‘‘Ningbo
Dafa’’) and Cixi Santai Chemical Fiber
Co., Ltd. (‘‘Cixi Santai’’) during the POR.
If these preliminary results are adopted
in our final results of review, we will
instruct U.S. Customs and Border
Protection (‘‘CBP’’) to assess
antidumping duties on entries of subject
merchandise during the POR for which
the importer-specific assessment rates
are above de minimis.
We invite interested parties to
comment on these preliminary results.
We intend to issue the final results no
later than 120 days from the date of
publication of this notice, pursuant to
section 751(a)(3)(A) of the Tariff Act of
1930, as amended (‘‘the Act’’).
DATES: Effective Date: July 8, 2011.
FOR FURTHER INFORMATION CONTACT: Jerry
Huang or Steven Hampton, AD/CVD
Operations, Office 9, Import
Administration, International Trade
Administration, Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–4047 or (202) 482–
0116, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On June 1, 2007, the Department
published in the Federal Register an
antidumping duty order on certain
E:\FR\FM\08JYN1.SGM
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Agencies
[Federal Register Volume 76, Number 131 (Friday, July 8, 2011)]
[Notices]
[Pages 40325-40329]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17210]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-807]
Polyethylene Terephthalate Film, Sheet, and Strip From the
Republic of Korea: Preliminary Results of Antidumping Duty
Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an
administrative review of the antidumping duty order on polyethylene
terephthalate film, sheet and strip (PET film) from the Republic of
Korea (Korea). This review covers one company, Kolon Industries Inc.
(Kolon) for the period of review (POR) of June 1, 2009, through May 31,
2010. We preliminarily determine that Kolon has made sales below normal
value (NV). The final results of this review shall be the basis for the
assessment of antidumping duties on entries of merchandise covered by
the final results of this review and for future deposits of estimated
duties, where applicable.
Interested parties are invited to comment on these preliminary
results. We will issue the final results no later than 120 days from
the date of publication of this notice.
DATES: Effective Date: July 8, 2011.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold or Robert James, AD/CVD
Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
1121 or (202) 482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On, June 1, 2010, the Department published in the Federal Register
notice of opportunity to request an administrative review of the
antidumping duty order on PET film from Korea. See Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation;
Opportunity To Request Administrative Review, 75 FR 30383 (June 1,
2010).
In accordance with section 751(a)(1) of the Tariff Act of 1930, as
amended (the Act), and 19 CFR 351.213(b)(2), on June 30, 2010, Kolon
requested an administrative review of the antidumping duty order on PET
film from Korea, and requested that the Department revoke the
antidumping duty order with regard to Kolon.
On July 28, 2010, the Department initiated an administrative review
for Kolon for the POR. See Initiation of Antidumping and Countervailing
Duty Administrative Reviews and Requests for Revocations in Part, 75 FR
44224 (July 28, 2010).
On August 9, 2010, we issued our antidumping questionnaire to
Kolon. We received Kolon's response to section A of our questionnaire
on September 14, 2010 (Kolon's section A response). We received Kolon's
response to sections B, C, and D of our questionnaire on October 4,
2010 (Kolon's section B, C, and D response). On January 14, 2011, we
issued a supplemental questionnaire to Kolon which covered sections A
through C. Kolon responded to this supplemental questionnaire on
February 22, 2011 (Kolon's February 22, 2011 response). On June 21,
2011, we issued a supplemental questionnaire to Kolon which covered
elements of section B. Kolon responded to this supplemental
questionnaire on June 27, 2011
On January 25, 2011, we extended the deadline for the preliminary
results of this review until no later than June 30, 2011. See
Polyethylene Terephthalate Film, Sheet, and Strip From the Republic of
Korea: Extension of Time Limit for Preliminary Results of Antidumping
Duty Administrative Review, 76 FR 4288 (January 25, 2011).
Verification
Between March 23, 2011 and March 25, 2011, the Department verified
Kolon's questionnaire responses at Kolon's U.S. reseller, Kolon USA, at
Kolon USA's headquarters in Fairfield, New Jersey. See Memorandum from
Tyler Weinhold and Scott Hoefke to Richard Weible Regarding
``Verification of the Cost of Production and constructed Value Data
Submitted by Kolon industries, Inc. in the Review of Polyethylene
Terephalate (PET) Film from South Korea,'' which will soon be released.
Between April 4, 2011, and April 8, 2011, the Department verified
Kolon's questionnaire responses at Kolon's headquarters in Kwachon,
Kyonggi-Do, Korea. See Memorandum from Tyler Weinhold and Scott Hoefke
to Richard Weible Regarding ``Verification of the Cost of Production
and constructed Value Data Submitted by Kolon industries, Inc. in the
Review of Polyethylene Terephalate (PET) Film from South Korea,'' which
will soon be released. Between April 25, 2011, and April 29, 2011, the
Department also verified Kolon's questionnaire responses regarding its
costs of production and constructed value data at Kolon's
[[Page 40326]]
headquarters in Kwachon, Kyonggi-Do, Korea. See Memorandum from
Christopher Zimpo and Theresa Deeley to Neal Halper, regarding
``Verification of the Cost of Production and constructed Value Data
Submitted by Kolon industries, Inc. in the Review of Polyethylene
Terephalate (PET) Film from South Korea,'' dated June 30, 2011 (Cost
Calculation Memorandum).
Requests for Revocation, In Part
In its request for this review, Kolon requested that the order be
partially revoked with respect to Kolon. Kolon argued that assuming
that it had maintained three consecutive years of sales at not less
than NV, the company would be eligible for revocation under section
751(d) of the Act and 19 CFR 351.222(b)(2). We preliminarily determine
not to revoke the order with respect to Kolon. 19 CFR 351.222(b)(2)
sets out rules and procedures for possible partial revocation of a
dumping order under section 751(d) of the Act if a respondent has
maintained three consecutive years of sales at not less than NV. In its
request for revocation, Kolon argued that with the completion of this
review, it would have maintained three consecutive years of sales at
not less than NV and would, therefore, be eligible for revocation under
section 751(d)(1) of the Act and 19 CFR 351.222(b)(2). Kolon was found
to have had de minimus margins of dumping (below 0.5 percent) in the
two administrative reviews immediately prior to the instant
administrative review. However, for these preliminary results, based on
sales and production data provided by Kolon, and as adjusted by the
Department, we have calculated a non-de minimis margin for Kolon, i.e.,
0.81 percent. Therefore, under section 751(d)(1) of the Act and 19 CFR
351.222(b)(2), we have preliminarily determined not to revoke the order
with respect to Kolon.
Scope of the Order
Imports covered by this order are shipments of all gauges of raw,
pretreated, or primed polyethylene terephthalate film, sheet, and
strip, whether extruded or coextruded. The films excluded from this
review are metallized films and other finished films that have had at
least one of their surfaces modified by the application of a
performance-enhancing resinous or inorganic layer more than 0.00001
inches (0.254 micrometers) thick.
PET film is currently classifiable under Harmonized Tariff Schedule
of the United States (HTSUS) subheading 3920.62.00. The HTSUS
subheading is provided for convenience and for customs purposes. The
written description remains dispositive as to the scope of the product
coverage.
Period of Review
The POR is June 1, 2009, to May 31, 2010.
Comparisons to Normal Value
To determine whether sales of PET film from Korea to the United
States were made at less than normal value (NV), we compared Kolon's
constructed export price (CEP) or export price (EP) sales made in the
United States to unaffiliated purchasers to NV, as described in the
``United States Price'' and ``Normal Value'' sections of this notice,
below. In accordance with section 777A(d)(2) of the Act, we compared
the CEP and EP of individual transactions to monthly weighted-average
NVs.
Product Comparisons
In accordance with section 771(16) of the Act we considered all
products produced by Kolon covered by the description in the ``Scope of
the Order'' section, above, and sold in the home market during the POR,
to be foreign like products for purposes of determining appropriate
product comparisons to U.S. sales. We first attempted to compare
contemporaneous U.S. and comparison-market sales of products that are
identical with respect to the following characteristics: (1)
Specification; (2) thickness; (3) surface treatment; and (4) grade.
Consistent with the methodology employed in the 2008 to 2009
administrative review of this order, and in the less than fair value
(LTFV) investigation of PET film from Thailand, we used the actual
thicknesses of the film rather than a range of thicknesses for product
comparison purposes. See Polyethylene Terephthalate Film, Sheet, and
Strip from the Republic of Korea: Preliminary Results of Antidumping
Duty Administrative Review, 75 FR 40784 (July 14, 2010) (unchanged in
the Final Results, 75 FR 70901 (November 19, 2010)) and Notice of
Preliminary Determination of Sales at Not Less Than Fair Value:
Polyethylene Terephthalate Film, Sheet, and Strip from Thailand, 73 FR
24565, 24567 (May 5, 2008) (unchanged in the Final Determination, 73 FR
64912 (October 31, 2008)). Where we were unable to compare sales of
identical merchandise, we compared U.S. sales to home market sales of
the most similar merchandise based on the above characteristics. Where
there were no sales of the foreign like product of the identical
merchandise in the ordinary course of trade in the home market to
compare to a U.S. sale, we compared the price of the U.S. sale to
constructed value (CV).
Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we base NV on sales made in the home market at the same
level of trade (LOT) as the CEP or EP sales in the U.S. market. The NV
LOT is defined as the starting-price sales in the home market or, when
NV is based on CV, as the sales from which selling, general, and
administrative (SG&A) expenses and profit are derived. See 19 CFR
351.412(c)(1). The EP LOT is defined as the starting price in the
United States to the unaffiliated U.S. customer. See id. With respect
to CEP transactions in the U.S. market, the CEP LOT is defined as the
level of the constructed sale from the exporter to the importer. See 19
CFR 351.412(c)(1)(ii).
To determine whether home market sales are at a different LOT than
CEP sales, we examine stages in the marketing process and selling
functions along the chain of distribution between the producer and the
unaffiliated customer. See 19 CFR 351.412(c)(2). If the home-market
sales are at different LOTs, and the difference affects price
comparability, as manifested in a pattern of consistent price
differences between the sales on which NV is based and comparison-
market sales at the LOT of the export transaction, we make a LOT
adjustment under section 773(a)(7)(A) of the Act. For CEP sales, if the
NV level is more remote from the factory than the CEP level and there
is no basis for determining whether the difference in the levels
between NV and CEP affects price comparability, we adjust NV under
section 773(a)(7)(B) of the Act (the CEP offset provision). See, e.g.,
Certain Hot-Rolled Flat-Rolled Carbon Quality Steel Products from
Brazil; Preliminary Results of Antidumping Duty Administrative Review,
70 FR 17406, 17410 (April 6, 2005); unchanged in Notice of Final
Results of Antidumping Duty Administrative Review: Certain Hot-Rolled
Flat-Rolled Carbon Quality Steel Products from Brazil, 70 FR 58683
(October 7, 2005). For CEP sales, we consider only the selling
activities reflected in the price after the deduction of expenses and
CEP profit under section 772(d) of the Act. See Micron Technology, Inc.
v. United States, 243 F.3d 1301, 1314-1315 (Fed. Cir. 2001). We expect
that if the LOTs claimed by the respondent are the same, the functions
and activities of the seller should be similar. Conversely, if a party
claims that the LOTs are different for
[[Page 40327]]
different groups of sales, the functions and activities of the seller
should be dissimilar. See Porcelain-on-Steel Cookware from Mexico:
Final Results of Administrative Review, 65 FR 30068 (May 10, 2000) and
accompanying Issues and Decisions Memorandum at Comment 6.
We obtained information from Kolon regarding the marketing stages
involved in making its reported foreign market and U.S. sales to
unaffiliated customers. Kolon provided a description of all selling
activities performed, along with a flowchart and tables comparing the
LOTs among each channel of distribution and customer category for both
markets. See Kolon's section A response at Exhibit A-12.
For the home market, Kolon identified two channels of distribution
described as follows: (1) Direct shipments (i.e., products produced to
order); and (2) warehouse shipments from inventory. Id. Within each of
these two channels of distribution, Kolon made sales to unaffiliated
customers. Id. We reviewed the level at which Kolon performed each of
these selling functions with respect to each claimed channel of
distribution and customer category. For all of the activities listed
(which included sales forecasting, strategic/economic planning, sales
promotion, packing, inventory maintenance, order input/processing,
direct sales personnel, sales/marketing support, market research,
technical assistance, warranty service, and freight and delivery), the
level of performance for both direct shipments and warehouse shipments
was identical across all types of customers. Based on our analysis of
all of Kolon's home market selling functions, we find all home market
sales were made at a single LOT, the home market LOT. We also found
that Kolon provided a similar level of selling functions on all of its
EP sales, and that the level of these EP selling functions was
comparable to the level of selling functions Kolon performed on its
home market sales. Based on the foregoing, we determine there is one
LOT for Kolon's EP sales and that the EP LOT is comparable to the home
market LOT.
Kolon also indicated it made CEP sales through its U.S. affiliate,
Kolon USA. Id. We then compared the CEP LOT to the NV LOT. The CEP LOT
is based on the selling activities associated with the transaction
between Kolon and its affiliated importer, Kolon USA, whereas the NV
LOT is based on the selling activities associated with the transactions
between Kolon and unaffiliated customers in the home market. Our
analysis indicates the selling functions performed for sales to
unaffiliated home market customers are either performed at a higher
degree of intensity or are greater in number than the selling functions
performed for sales to Kolon USA. For example, in comparing Kolon's
selling activities, we find there are several functions performed in
the home market which are a performed to a lesser degree for CEP
transactions. For selling activities performed for both home market
sales and CEP sales (which included sales forecasting, strategic/
economic planning, sales promotion, packing, inventory maintenance,
order input/processing, direct sales personnel, sales/marketing
support, market research, technical assistance, warranty service, and
freight and delivery), we find Kolon performed each activity except
packing, order input/processing, and freight and delivery at a higher
level of intensity in the home market.
We note that CEP sales from Kolon to Kolon USA generally occur at
the beginning of the distribution chain, representing essentially a
logistical transfer of inventory that resembles ex-factory sales. In
contrast, all sales in the home market occur closer to the end of the
distribution chain and involve smaller volumes and more customer
interaction which, in turn, require the performance of more selling
functions. Id. Based on the foregoing, we conclude that the NV LOT is
at a more advanced stage than the CEP LOT. Because we found the home
market and CEP sales were made at different LOTs, we examined whether a
LOT adjustment or a CEP offset may be appropriate in this review. As we
found only one LOT in the home market, it was not possible to make a
LOT adjustment to home market prices, because such an adjustment is
dependent on our ability to identify a pattern of consistent price
differences between the home market sales on which NV is based and home
market sales at the LOT of the export transaction. See 19 CFR
351.412(d)(1). Furthermore, we have no other information that provides
an appropriate basis for determining a LOT adjustment. Because the data
available do not form an appropriate basis for making a LOT adjustment,
and because the NV LOT is at a more advanced stage of distribution than
the CEP LOT, we have made a CEP offset to NV in accordance with section
773(a)(7)(B) of the Act.
United States Price
Section 772(a) of the Act defines EP as ``the price at which the
subject merchandise is first sold (or agreed to be sold) before the
date of importation by the producer or exporter of the subject
merchandise outside of the United States to an unaffiliated purchaser
in the United States or to an unaffiliated purchaser for exportation to
the United States, as adjusted under subsection (c) of this section.''
Section 772(b) of the Act defines CEP as ``the price at which the
subject merchandise is first sold (or agreed to be sold) in the United
States before or after the date of importation by or for the account of
the producer or exporter of the subject merchandise or by a seller
affiliated with the producer or exporter, to a purchaser not affiliated
with the producer or exporter, as adjusted under subsections (c) and
(d).'' For purposes of this administrative review, Kolon classified all
of its U.S. sales invoiced by Kolon and shipped directly from Korea to
the unaffiliated U.S. customer as EP sales. Kolon reported all sales
that were invoiced through its U.S. subsidiary Kolon USA as CEP
transactions. For these preliminary results, we have accepted these
classifications. The merchandise shipped directly to unaffiliated
customers in the U.S. market was not sold through an affiliated U.S.
importer, and we find no other grounds for treating these transactions
as CEP sales. We, therefore, preliminarily determine that these
transactions were EP sales. We have classified as CEP transactions the
merchandise invoiced through Kolon USA because these sales were ``sold
in the United States'' within the meaning of section 772(b) of the Act.
Export Price
We calculated EP in accordance with section 772(a) of the Act. We
based EP on packed prices to customers in the United States. We made
adjustments for the following movement expenses in accordance with
section 772(c)(2)(A) of the Act: foreign inland freight from plant to
port of exportation, brokerage and handling incurred in the country of
manufacture, and international freight. Finally, we made an addition to
U.S. price for duty drawback in accordance with section 772(c)(1)(B) of
the Act based upon Kolon's demonstration that it received duty drawback
on imported materials used in the production of PET film. See Kolon's
sections B and D responses, and section C response at C-34 to C-35 and
Exhibit C-16.
Constructed Export Price
In accordance with section 772(b) of the Act, for those sales to
the first unaffiliated purchaser that took place after importation into
the United States, we calculated CEP. We based CEP on packed prices to
unaffiliated purchasers in the United States. We made adjustments for
billing adjustments. We
[[Page 40328]]
made deductions for movement expenses in accordance with section
772(c)(2)(A) of the Act; these included foreign inland freight from
plant to port of exportation, brokerage and handling incurred in the
country of manufacture, international freight, marine insurance,
brokerage and handling incurred in the United States, U.S. customs
duties, other U.S. transportation port storage charges, U.S.
warehousing expense, and U.S. inland freight from port or warehouse to
customer. As further directed by section 772(d)(1) of the Act, we
deducted those selling expenses associated with economic activity in
the United States including direct selling expenses (i.e., commissions,
U.S. credit expenses, and bank charges), inventory carrying costs, and
other U.S. indirect selling expenses. We also made an adjustment for
profit in accordance with section 772(d)(3) of the Act. Finally, we
made an addition to U.S. price for duty drawback in accordance with
section 772(c)(1)(B) of the Act based upon Kolon's demonstration that
it received duty drawback on imported materials used in the production
of PET film. See Kolon's section B, C, and D response at C-34 to C-35
and Exhibit C-16 and Kolon's February 22, 2011, response at SC-37.
Normal Value
A. Selection of Comparison Market
To determine whether there is a sufficient volume of sales in the
home market to serve as a viable basis for calculating NV (i.e., the
aggregate volume of home market sales of the foreign like product is
greater than five percent of the aggregate volume of U.S. sales), we
compared Kolon's volume of home market sales of the foreign like
product to the volume of its U.S. sales of the subject merchandise, in
accordance with section 773(a)(1)(B) of the Act. Because Kolon's
aggregate volume of home market sales of the foreign like product was
greater than five percent of its aggregate volume of U.S. sales for
subject merchandise, we determined the home market was viable. See
Kolon's section A response at Exhibit A-1.
B. Cost of Production Analysis
Pursuant to 773(b)(2)(A)(ii) of the Act, because the Department had
disregarded certain of Kolon's sales in the most recently completed
review in which Kolon participated, the Department had reasonable
grounds to believe or suspect that Kolon made home market sales at
prices below Kolon's costs of production (COP) in this review. See
Polyethylene Terephthalate Film, Sheet, and Strip From the Republic of
Korea: Final Results of Antidumping Duty Administrative Review, 74 FR
57993 (November 10, 2009). As a result, the Department was directed
under section 773(b) of the Act to determine whether Kolon made home
market sales during the POR at prices below its COP.
In accordance with section 773(b)(3) of the Act, we calculated COP
based on the sum of Kolon's cost of materials and fabrication for the
foreign like product, plus amounts for selling, general, and
administrative expenses (SG&A), interest expenses, and home market
packing costs. We relied on the COP information provided by Kolon,
except for an adjustment to cost of manufacturing (COM) related to
losses sustained by its affiliate for processing PET film, and for an
adjustment to the financial expense ratio. See Cost Calculation
Memorandum.
To determine whether Kolon's home market sales had been made at
prices below the COP, we computed weighted-average COPs during the POR,
and compared the weighted-average COP figures to home market sales
prices of the foreign like product as required under section 773(b) of
the Act. On a product-specific basis, we compared the COP to the home
market prices net of billing adjustments, discounts and rebates, any
applicable movement charges, selling expenses, and packing expenses.
In determining whether to disregard home market sales made at
prices below the COP, we examined, in accordance with sections
773(b)(1)(A) and (B) of the Act, whether, within an extended period of
time, such sales were made in substantial quantities, and whether such
sales were made at prices which did not permit the recovery of all
costs within a reasonable period of time in the normal course of trade.
Where less than 20 percent of the respondent's home market sales of a
given model were at prices below the COP, we did not disregard any
below-cost sales of that model because we determined that the below-
cost sales were not made within an extended period of time and in
``substantial quantities.'' See section 773(b)(2)(C) of the Act. Where
20 percent or more of the respondent's home market sales of a given
model were at prices less than the COP, we normally disregard the
below-cost sales because: (1) They were made within an extended period
of time in ``substantial quantities,'' in accordance with sections
773(b)(2)(B) and (C) of the Act; and (2) based on our comparison of
prices to the weighted-average COPs for the POR, they were at prices
which would not permit the recovery of all costs within a reasonable
period of time, in accordance with section 773(b)(2)(D) of the Act.
We examined the cost data and determined that our quarterly cost
methodology is not warranted and, therefore, we have applied our
standard methodology of using annual costs based on the data Kolon
reported, adjusted as described in the ``Cost of Production'' section
above. 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.
Our cost test for Kolon revealed that, for home market sales of
certain models, less than 20 percent of the sales of those models were
at prices below the COP. We therefore retained all such sales in our
analysis and used them as the basis for determining NV. Our cost test
also indicated that for home market sales of other models, more than 20
percent were sold at prices below the COP within an extended period of
time and were at prices which would not permit the recovery of all
costs within a reasonable period of time. Thus, in accordance with
section 773(b)(1) of the Act, we excluded these below-cost sales from
our analysis and used the remaining above-cost sales as the basis for
determining NV.
C. Price-to-Price Comparisons
We calculated NV based on prices to unaffiliated customers in
Korea. We used Kolon's adjustments and deductions as reported. We made
deductions, where appropriate, for foreign inland freight from plant to
distribution warehouse, warehousing expense, and foreign inland freight
from plant or distribution warehouse to customer. Kolon incurred
commission expenses in the United States but not in Korea. Accordingly,
pursuant to 19 CFR section 351.410(e) of the Department's regulations,
we made an offset to normal value for selling expenses that Kolon
incurred in Korea. As directed by 19 CFR section 351.410(e), we limited
the offset to the amount of the commissions that Kolon incurred in the
United States. In addition, for comparisons involving similar
merchandise, we made adjustments for differences in cost attributable
to differences in physical characteristics of the merchandise compared
pursuant to section 773(a)(6)(C)(ii) of the Act and 19 CFR 351.411. We
also made adjustments for differences in circumstances of sale (COS) in
accordance with section 773(a)(6)(C)(iii) of the Act and 19 CFR
351.410. We made COS adjustments for imputed credit expenses. As noted
[[Page 40329]]
above in the ``Level of Trade'' section of this notice, we also made an
adjustment for the CEP offset in accordance with section 773(a)(7)(B)
of the Act. Finally, we deducted home market packing costs and added
U.S. packing costs in accordance with sections 773(a)(6)(A) and (B) of
the Act.
Currency Conversion
We made currency conversions into U.S. dollars based on the
exchange rates in effect on the dates of the U.S. sales, as certified
by the Federal Reserve Bank, in accordance with section 773A(a) of the
Act.
Preliminary Results of Review
We preliminarily determine the following weighted-average dumping
margin exists for the period June 1, 2009 through May 31, 2010:
------------------------------------------------------------------------
Weighted
average
Manufacturer/exporter margin
(percentage)
------------------------------------------------------------------------
Kolon Industries, Inc................................... 0.81
------------------------------------------------------------------------
The Department will disclose to parties the calculations performed
in connection with these preliminary results within five days of the
date of publication of this notice. See 19 CFR 351.224(b). Pursuant to
19 CFR 351.309, interested parties may submit case briefs not later
than 30 days after the publication of this notice. Rebuttal briefs,
limited to issues raised in the case briefs, may be filed not later
than 35 days after the date of publication of this notice. Parties who
submit case briefs or rebuttal briefs in this proceeding are requested
to submit with each argument: (1) A statement of the issue, (2) a brief
summary of the argument; and (3) a table of authorities.
Interested parties who wish to request a hearing or to participate
if one is requested must submit a written request to the Assistant
Secretary for Import Administration, Room 1870, within 30 days of the
date of publication of this notice. Requests should contain: (1) The
party's name, address and telephone number; (2) the number of
participants; and (3) a list of the issues to be discussed. See 19 CFR
351.310(c). Issues raised in the hearing will be limited to those
raised in the case briefs.
The Department will issue the final results of this administrative
review, including the results of its analysis of issues raised in any
written briefs, not later than 120 days after the publication of this
notice, pursuant to section 751(a)(3)(A) of the Act.
Assessment
Pursuant to 19 CFR 351.212(b), the Department will determine, and
CBP shall assess, antidumping duties on all appropriate entries. The
Department will issue appropriate assessment instructions directly to
CBP 15 days after the date of publication of the final results of this
review. For assessment purposes, we calculated importer-specific ad
valorem assessment rates for PET film from Korea based on the ratio of
the total amount of the dumping duties calculated for the examined
sales to the total entered value of those same sales. See 19 CFR
351.212(b).
Cash Deposit Requirements
The following cash deposit requirements will be effective for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided for by section
751(a)(2)(C) of the Act: (1) The cash deposit rate for Kolon will be
the rate established in the final results of review; (2) if the
exporter is not a firm covered in this review or the LTFV
investigation, but the manufacturer is, the cash deposit rate will be
the rate established for the most recent period for the manufacturer of
the merchandise; and (3) if neither the exporter nor the manufacturer
is a firm covered in this or any previous review, the cash deposit rate
will be the all-others rate of 21.50 percent from the LTFV
investigation. See Polyethylene Terephthalate Film, Sheet, and Strip
From the Republic of Korea; Notice of Final Court Decision and Amended
Final Determination of Antidumping Duty Investigation, 62 FR 50557
(September 26, 1997).
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
These preliminary results of administrative review are issued and
this notice is published in accordance with sections 751(a)(1) and
777(i)(1) of the Act.
Dated: June 30, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-17210 Filed 7-7-11; 8:45 am]
BILLING CODE 3510-DS-P