Polyethylene Terephthalate Film, Sheet, and Strip From India: Preliminary Results of Antidumping Duty Administrative Review, 47546-47550 [2011-19952]
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47546
Federal Register / Vol. 76, No. 151 / Friday, August 5, 2011 / Notices
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 1, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2011–19946 Filed 8–4–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–533–824]
Polyethylene Terephthalate Film,
Sheet, and Strip From India:
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 India. This
review covers one respondent, Ester
Industries Ltd. (Ester), a producer and
exporter of PET Film from India. The
Department preliminarily determines
that Ester did not make sales of PET
Film from India at below normal value
(NV) during the July 1, 2009, through
June 30, 2010, period of review. The
preliminary results are listed below in
the section titled ‘‘Preliminary Results
of Review.’’ Interested parties are
invited to comment on these
preliminary results.
DATES: Effective Date: August 5, 2011.
FOR FURTHER INFORMATION CONTACT: Elfi
Blum, or Toni Page, AD/CVD
Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–0197 or (202) 482–
1398, respectively.
SUPPLEMENTARY INFORMATION:
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AGENCY:
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Background
On July 1, 2002, the Department
published in the Federal Register the
antidumping duty order on PET Film
from India. See Notice of Amended
Final Antidumping Duty Determination
of Sales at Less Than Fair Value and
Antidumping Duty Order: Polyethylene
Terephthalate Film, Sheet, and Strip
from India, 67 FR 44175 (July 1, 2002)
(PET Film India Order). On July 1, 2010,
the Department published a notice of
opportunity to request an administrative
review of this order. See Antidumping
or Countervailing Duty Order, Finding,
or Suspended Investigation;
Opportunity To Request Administrative
Review, 75 FR 38074 (July 1, 2010). In
response, on July 27, 2010, and August
2, 2010, Ester and SRF Limited (SRF),
respectively, requested that the
Department conduct an administrative
review of their sales of PET Film in the
U.S. market. On July 29, 2010, Dupont
Teijin Films, Mitsubishi Polyester Film,
Inc., SKC, Inc. and Toray Plastics
(America) Inc. (collectively, the
petitioners) requested an administrative
review of Ester.
On August 31, 2010, the Department
published a notice of initiation of an
administrative review of the
antidumping duty order on PET Film
from India covering the period July 1,
2009, through June 30, 2010. See
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Deferral of Initiation of
Administrative Review, 75 FR 53274,
53276 (August 31, 2010). The
Department initiated the review with
respect to Ester and SRF.
On September 15, 2010, the
Department issued an antidumping duty
questionnaire to the respondents. On
October 1, 2010, SRF withdrew its
request for an administrative review,
and the Department rescinded the
administrative review of SRF on July 7,
2011. See Polyethylene Terephthalate
Film, Sheet and Strip From India:
Rescission, in Part, of Antidumping
Duty Administrative Review, 76 FR
39855 (July 7, 2011).
Ester timely submitted section A of
the questionnaire on October 5, 2010,
and sections B through D on November
3, 2010. On February 3, 2011, and on
February 11, 2011, the Department
issued its first supplemental
questionnaires to sections D, and A
through C, respectively. Ester timely
filed its response to section D on March
1, 2011, and to sections A through C on
April 15, 2011. The Department issued
its second supplemental questionnaire
to section D on March 18, 2011, and
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Ester filed its timely response on April
15, 2011.
On April 1, 2011, the Department
extended the time period for issuing the
preliminary results of the administrative
review. See Polyethylene Terephthalate
Film, Sheet and Strip From India:
Extension of Time Limit for Preliminary
Results of Antidumping Duty
Administrative Review, 76 FR 18155
(April 1, 2011).
The Department issued its second
supplemental questionnaire to sections
A through C on June 17, 2011, and Ester
filed its response to this questionnaire
on July 5, 2011.
Scope of the Order
The products covered by the
antidumping duty order are all gauges of
raw, pretreated, or primed PET film,
whether extruded or coextruded.
Excluded are metallized films and other
finished films that have had at least one
of their surfaces modified by the
application of a performance-enhancing
resinous or inorganic layer of more than
0.00001 inches thick. Imports of PET
film are currently classifiable in the
Harmonized Tariff Schedule of the
United States (HTSUS) under item
number 3920.62.00.90. HTSUS
subheadings are provided for
convenience and customs purposes. The
written description of the scope of the
antidumping duty order is dispositive.
Period of Review
The period of review (POR) is July 1,
2009, through June 30, 2010.
Home Market Viability
In order 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 five percent or
more of the aggregate volume of U.S.
sales), we compared the volume of
Ester’s home market sales of the foreign
like product to the volume of its U.S.
sales of subject merchandise, in
accordance with section 773(a)(1)(B)(i)
of the Tariff Act of 1930, as amended
(the Act). Based on this comparison, we
determined that Ester’s home market
was viable during the POR.
Product Comparisons
Pursuant to section 771(16)(A) of the
Act, for purposes of determining
appropriate product comparisons to the
U.S. sales, the Department considers all
products, as described in the ‘‘Scope of
the Order’’ section of this notice above,
that were sold in the comparison market
in the ordinary course of trade. In
accordance with sections 771(16)(B) and
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(C) of the Act, where there are no sales
of identical merchandise in the
comparison market made in the
ordinary course of trade, we compare
U.S. sales to sales of the most similar
foreign like product based on the
characteristics listed in sections B and
C of our antidumping questionnaire:
grade, specifications, dimensions,
thickness, and surface treatment. Where
there were no sales of identical
merchandise in the home market to
compare to U.S. sales, we compared
U.S. sales to the most similar foreign
like product on the basis of the
characteristics listed above.
Normal Value Comparisons
To determine whether sales of subject
merchandise to the United States were
made at less than fair value, we
compared the export price (EP) to NV,
as described in the United States Price
and Normal Value sections of this
notice. In accordance with section
777A(d)(2) of the Act, we calculated
monthly weighted-average prices for NV
and compared these to individual U.S.
transaction prices.
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Date of Sale
The Department will normally use
invoice date, as recorded in the
exporter’s or producer’s records kept in
the ordinary course of business, as the
date of sale, but may use a date other
than the invoice date if it better reflects
the date on which the material terms of
sale are established. See 19 CFR
351.401(i). For Ester, we preliminarily
determine that no departure from our
standard practice is warranted. Ester
reported invoice date as date of sale for
both the home market and the U.S.
market, and the record does not indicate
that material terms of sale are
established at a later date or earlier in
the sales process.
Level of Trade
In accordance with section
773(a)(1)(B)(i) of the Act, to the extent
practicable, the Department determines
NV based on sales in the comparison
market at the same level of trade as the
EP or constructed export price (CEP)
sales in the U.S. market. To determine
whether NV sales are at a different level
of trade (LOT) than U.S. sales, we
examine selling functions along the
chain of distribution between the
respondent and the unaffiliated
customer for EP sales. See 19 CFR
351.412(c)(2). If the comparison market
sales are at a different LOT, and the
difference affects price comparability, as
manifested in a pattern of consistent
price differences between the sales on
which NV is based and comparison
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market sales at the LOT of the export
transaction, then we make an LOT
adjustment pursuant to section
773(a)(7)(A) of the Act.
In implementing these principles, we
examined all the information provided
by Ester regarding the selling functions
involved in its home market and U.S.
sales. In the original questionnaire, the
Department asked Ester to provide its
selling functions for each of its levels of
trade, and to state the degree that
function was performed (i.e., rarely,
sometimes, frequently, always).
Additionally, the Department provided
a sample chart at the end of the Section
A questionnaire to use as a guideline.
In its questionnaire responses, Ester
reported three LOTs in the home
market: (1) End Users; (2) Distributors/
Traders;, and (3) Agents; and two LOTs
in the U.S. market: (1) End Users; and
(2) Distributors/Traders.1 In addition,
Ester provided a chart of its selling
functions.2 However, it did not provide
a breakout of sales activities between
the claimed LOT(s) in the home market
and in the U.S. market it claimed in its
responses. Instead, Ester reported home
market sales in two categories: made
against stock or produced after receipt
of the order. Ester later clarified in its
second supplemental response that it
occasionally made sales from stock in
the home market only.3
In its first supplemental response,
Ester revised its chart to include the
level of degree of the selling activities,
but did not break out the selling
functions between the various LOTs in
the home market and U.S. market.4 In
the second supplemental questionnaire,
the Department requested that Ester
indicate the level of selling function
which Ester provides for each type of
customer; however, Ester responded
that it ‘‘provides the individual selling
functions to all customers.’’ 5
Because Ester did not provide
complete information, we are unable to
perform an LOT analysis. Despite
explicit instructions as to how to report
its selling functions, Ester has not
provided the data needed to properly
analyze the levels of trade the company
has reported, to determine whether an
offset is warranted. We have no basis to
perform such an analysis between the
1 Ester’s First Supplemental Questionnaire
Response of March 29, 2011 (First Supplemental
Response), at 18 and 28.
2 See Ester’s Original Response, Section A, of
October 5, 2010, at Exhibit 3(b).
3 Ester’s Second Supplemental Questionnaire
Response of July 5, 2011 (Second Supplemental
Response), at 3–4.
4 Ester’s First Supplemental Response, at 28 and
Exhibit SQA–9.
5 Second Supplemental Response, at 4.
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various types of sales in the home and
U.S. markets. Therefore, we
preliminarily determine that Ester made
all home market sales at one LOT.
Moreover, we preliminarily determine
that all home market sales by Ester were
made at the same LOT as their U.S.
sales. Accordingly, an LOT adjustment
is not warranted. For a detailed analysis,
see the ‘‘Level of Trade’’ section in
Memorandum to Thomas Gilgunn,
Program Manager, from Elfi Blum,
International Trade Analyst, Analysis
Memorandum for the Preliminary
Results of the Antidumping Duty
Administrative Review of Polyethylene
Terephthalate Film, Sheet, and Strip
from India: Ester Industries Ltd.
(Preliminary Analysis Memorandum),
dated concurrently with this notice.
United States Price
We used EP methodology for Ester’s
U.S. sales, in accordance with section
772(a) of the Act, because the subject
merchandise was sold directly to the
first unaffiliated purchaser in the United
States prior to importation, and CEP
methodology was not otherwise
warranted based on the evidence on the
record. In accordance with sections
772(a) and (c) of the Act, we calculated
EP using the Cost Insurance Freight
price (up to named point of destination)
Ester charged its unaffiliated customer.
We made deductions from the starting
price, where applicable, for movement
expenses, including domestic inland
freight and insurance, domestic
brokerage and handling, and
international freight and marine
insurance, and U.S. inland freight.
Information about the specific
adjustments and our analysis of the
adjustments is business proprietary, and
is detailed in the ‘‘Adjustments’’ section
in the Preliminary Analysis
Memorandum.
Further, section 772(c)(1)(B) of the
Act states that EP should be increased
by the amount of any import duties
‘‘imposed by the country of exportation
which have been rebated, or which have
not been collected, by reason of the
exportation of the subject merchandise
to the United States. * * *’’ Ester
claimed a duty drawback adjustment
under this provision for its export
credits earned on the Government of
India (GOI) Duty Entitlement Passbook
Scheme (DEPS). In its responses to the
Department, Ester stated that it reported
all of Ester’s DEPS credits earned on
exports to all markets during the POR,
and that the credits it reported also
include metallized PET film, which is
not subject to the PET Film India
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Order.6 In addition, Ester reported the
DEPS credits earned on the free-onboard (FOB) value of its total exports
during the POR, and the DEPS credits
utilized on its imports during the POR.7
India’s DEPS scheme enables
exporting companies to earn import
duty exemptions in the form of
passbook credits rather than cash. All
exporters are eligible to earn DEPS
credits on a post-export basis, provided
that the GOI has established a standard
input-output norm (SION) for the
exported product. DEPS credits can be
used for any subsequent imports,
regardless of whether they are
consumed in the production of an
exported product. DEPS credits are
valid for twelve months and are
transferable after the foreign exchange is
realized from the export sales on which
the DEPS credits are earned. See
Polyethylene Terephthalate Film, Sheet,
and Strip from India: Final Results of
Countervailing Duty Administrative
Review, 73 FR 75672 (December 12,
2008), and accompanying Issues and
Decision Memorandum, at ‘‘Duty
Entitlement Passbook Scheme (DEPS/
DEPB).’’ The Department has
determined that the DEPS scheme for
which Ester is claiming duty drawback
to be countervailable because: (1) The
GOI provides credits for the future
payment of import duties; and (2) the
GOI does not have in place and does not
apply a system that is reasonable and
effective for the purposes intended to
confirm which inputs, and in what
amounts, are consumed in the
production of the exported product. See
id. and Notice of Final Affirmative
Countervailing Duty Determination:
Polyethylene Terephthalate Film, Sheet,
and Strip (PET Film) From India, 67 FR
34905 (May 16, 2002), and
accompanying Issues and Decision
Memorandum, at Comment 1.
In determining whether an adjustment
should be made to EP for this duty
credit, we look for a reasonable link
between the duties imposed and those
rebated or exempted. We do not require
that the imported input be traced
directly from importation through
exportation. We do require, however,
that the company meet our ‘‘twopronged’’ test in order for this increase
to be made to EP. The first element is
that the import duty and its rebate or
exemption be directly linked to, and
dependent upon, one another; the
second element is that the company
6 See Ester’s Original Response of November 3,
2010, at 86 and Exhibit Z–6, and First
Supplemental Response, at 32–33.
7 See Second Supplemental Response, at Exhibits
SQ2–ABC–8 and ABC–9.
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must demonstrate that there were
sufficient imports of the imported
material to account for the duty
drawback or exemption granted for the
export of the manufactured product.
See, e.g., Saha Thai Steel Pipe Co., Ltd.
v. United States, 635 F.3d 1335, 1340
(Fed. Cir. 2011); and Mittal Steel USA,
Inc. v. United States, 31 CIT 1395,
1412–1413 (2007).
Ester failed to establish that it met the
first prong of the two-pronged test: That
there is a necessary link between the
import duties paid on any inputs
imported and the duty credit given by
the GOI. First, Ester did not demonstrate
how it arrived at the appropriate
amounts of duty credits it allocated and
claimed from its duty credits earned on
all exports of subject and non-subject
merchandise during the POR. Second,
the Department has determined that the
GOI does not have a system in place that
is reasonable and effective for the
purposes intended to confirm which
inputs, and in what amounts, are
consumed in the production of the
exported product. While there is a SION
in place for the production of subject
merchandise, the duty credit given is
based on an assumed amount of import
content, and fails to link the amount of
duty credits to the amount of import
duties actually paid on imported inputs.
As shown in the response, Ester’s DEPS
credits for which it claims duty
drawback were earned on a predetermined percent of the FOB value of
its exports during the POR.
Furthermore, as stated in Ester’s
response, ‘‘Ester is not required to
import to avail the benefit of DEPS
benefits. The DEPS credit is based on
prefixed rates and the Company is
entitled to the DEPS credit regardless of
imports of inputs.’’ 8 For the second
prong, Ester did not demonstrate that it
imported any inputs for the production
of subject merchandise prior to, during,
or after the POR. Thus, for these
preliminary results, we determine that
Ester has not demonstrated that it meets
both prongs of the duty drawback test
pursuant to section 772(c)(1)(B) of the
Act. Accordingly, we have not made an
adjustment to EP for duty drawback.
In accordance with section
772(c)(1)(C) of the Act, we will adjust
Ester’s U.S. price to account for
countervailing duties attributable to
subject merchandise in order to offset
export subsidies in the concurrent
countervailing duty administrative
review of Ester.
8 See Second Supplemental Response, at 35–38
and Exhibit SQ2–ABC–8.
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Cost of Production Analysis
The Department disregarded Ester’s
sales below cost of production (COP) in
the investigation. See Notice of
Preliminary Determination of Sales at
Less Than Fair Value and Postponement
of Final Determination: Polyethylene
Terephthalate Film, Sheet, and Strip
From India, 66 FR 65893 (December 21,
2001), at ‘‘C. COP Analysis,’’ unchanged
in the PET Film India Order. We
therefore have reasonable grounds to
believe or suspect, pursuant to section
773(b)(2)(A)(ii) of the Act, that sales of
the foreign like product under
consideration for the determination of
NV in this review may have been made
at prices below COP. Thus, pursuant to
section 773(b)(1) of the Act, we
examined whether Ester’s sales in the
home market were made at prices below
the COP during the POR.
The Department’s normal practice is
to calculate an annual weighted-average
cost for the entire period of
investigation or POR. See, e.g., Certain
Pasta From Italy: Final Results of
Antidumping Duty Administrative
Review, 65 FR 77852 (December 13,
2000) and accompanying Issues and
Decision Memorandum at Comment 18.
However, the Department recognizes
that possible distortions may result if
our normal annual-average cost
methodology is used during a period of
significant cost changes. The
Department determines whether to
deviate from our normal methodology of
calculating an annual weighted-average
cost by evaluating two primary factors:
(1) Whether the change in the cost of
manufacturing recognized by the
respondent during the POR is deemed
significant (i.e., greater than 25 percent);
and (2) whether the record evidence
indicates that sales during the shorter
averaging periods could be reasonably
linked with the COP during the same
shorter averaging periods. See Stainless
Steel Plate in Coils From Belgium: Final
Results of Antidumping Duty
Administrative Review, 73 FR 75398,
75399 (December 11, 2008) and Certain
Welded Stainless Steel Pipes From the
Republic of Korea: Final Results of
Antidumping Duty Administrative
Review, 74 FR 31242 (June 30, 2009).
Based on the review of record evidence,
Ester did not appear to experience
significant changes in cost of
manufacturing during the POR.
Therefore, we followed our normal
methodology of calculating an annual
weighted-average cost for these
preliminary results of review.
Based on our analysis of Ester’s
questionnaire responses, we made
adjustments to Ester’s reported COP for
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selling, general and administrative
expenses (SG&A) and for interest. For
more detailed information, see
Memorandum to Neal M. Halper,
Director, Office of Accounting from
Sheikh M. Hannan, Senior Accountant,
Antidumping Duty Administrative
Review of Polyethylene Terephthalate
Film, Sheet, and Strips from India, Cost
of Production and Constructed Value
Calculation Adjustments for the
Preliminary Results—Ester Industries
Limited, dated August 1, 2011.
We compared sales of the foreign like
product in the home market with
model-specific COP figures for the POR.
In accordance with section 773(b)(3) of
the Act, we calculated COP based on the
sum of the costs of materials and
fabrication employed in producing the
foreign like product, plus SG&A and all
costs and expenses incidental to placing
the foreign like product in packed
condition and ready for shipment. In
our sales-below-cost analysis, we relied
on home market sales and COP
information provided by Ester in its
questionnaire responses.
We compared the weighted-average
COPs to home market sales of the
foreign like product, as required under
section 773(b) of the Act, in order to
determine whether these sales had been
made at prices below the COP. In
determining whether to disregard home
market sales made at prices below the
COP, we examined whether such sales
were made (1) within an extended
period of time in substantial quantities,
and (2) at prices which did not permit
recovery of all costs within a reasonable
period of time in the normal course of
trade, in accordance with section
773(b)(1)(A) and (B) of the Act. On a
product-specific basis, we compared the
COP to home market prices, less any
movement charges, discounts, and
direct and indirect selling expenses.
Pursuant to section 773(b)(2)(C) of the
Act, where less than 20 percent of the
respondent’s sales of a given product
were at prices less than COP, we did not
disregard any below-cost sales of that
product because the below-cost sales
were not made in substantial quantities
within an extended period of time.
Where 20 percent or more of the
respondent’s sales of a given product
were at prices less than COP, we
disregarded the below-cost sales
because they were made in substantial
quantities within an extended period of
time, in accordance with sections
773(b)(2)(B) and (C) of the Act. Based
upon our comparison of prices to PORaverage costs, we determined that the
below-cost prices did not permit the
recovery of costs within a reasonable
period of time, in accordance with
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section 773(b)(1)(B) of the Act.
Therefore, for purposes of this review,
we disregarded the below-cost sales and
used the remaining sales, as the basis for
NV, in accordance with section
773(b)(1) of the Act.
Normal Value
Price-to-Price Comparison
We based NV on the starting prices of
Ester’s sales to unaffiliated home market
customers, pursuant to sections
773(a)(1)(A) and 773(a)(1)(B)(i) of the
Act. Pursuant to section 773(a)(6)(B)(ii)
of the Act, we made deductions from
NV for movement expenses (i.e., inland
freight and inland insurance) where
appropriate. In accordance with section
773(a)(6)(C)(iii) of the Act and 19 CFR
351.410(c), we made, where indicated,
circumstance-of-sale adjustments for
home market direct selling expenses,
including imputed credit expenses.
Ester did not report certain payment
dates. In instances of missing pay dates
or pay dates preceding the invoice date,
we used the signature date of the
preliminary results (August 1, 2011) as
the payment date to calculate imputed
credit expenses in the home market, in
accordance with practice.9 We also
made adjustments in accordance with
19 CFR 351.410(e) for indirect selling
expenses incurred on comparisonmarket or U.S. sales where commissions
were granted on sales in one market but
not the other. Specifically, because
commissions were paid only in the
home market, we made an upward
adjustment to NV for the lesser of: (1)
The amount of commission paid in the
home market; or (2) the amount of the
indirect selling expenses incurred in the
home market on U.S. sales. See 19 CFR
351.410(e). In accordance with sections
773(a)(6)(A) and (B) of the Act, we also
deducted home market packing costs
and added U.S. packing costs. We also
made adjustments for differences in
costs attributable to differences in
physical characteristics of the
merchandise pursuant to section
773(a)(6)(C)(ii) of the Act. See
Preliminary Analysis Memorandum.
Constructed Value-to-Price
In accordance with section 773(a)(4)
of the Act, we used constructed value
(CV) as the basis for NV when there
were no above-cost contemporaneous
sales of identical or similar merchandise
in the comparison market. We
calculated CV in accordance with
section 773(e) of the Act. We included
9 Stainless Steel Bar from France: Final Results of
Antidumping Duty Administrative Review, 70 FR
46482 (August 10, 2005) and accompanying Issues
and Decision Memorandum at Comment 8.
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the cost of materials and fabrication,
SG&A, and profit. In accordance with
section 773(e)(2)(A) of the Act, we based
SG&A and profit on the amounts
incurred and realized by the respondent
in connection with the production and
sale of the foreign like product in the
ordinary course of trade for
consumption in the foreign country. For
selling expenses, we used the weightedaverage home market selling expenses.
Currency Conversions
Pursuant to section 773A(a) of the Act
and 19 CFR 351.415, we made currency
conversions for Ester’s sales based on
the daily exchange rates in effect on the
dates of the relevant U.S. sales as
certified by the Federal Reserve Bank of
New York.
Preliminary Results of Review
As a result of our review, we
preliminarily determine the following
weighted-average dumping margin
exists for the period July 1, 2009,
through June 30, 2010.
Manufacturer/Exporter
Ester Industries Ltd ......
Weighted-average
margin
0.00%
Assessment Rates
The Department shall determine, and
U.S. Customs and Border Protection
(CBP) shall assess, antidumping duties
on all appropriate entries. We will
instruct CBP to liquidate entries of
merchandise produced and/or exported
by Ester. The Department intends to
issue assessment instructions to CBP 15
days after the date of publication of the
final results of review. For assessment
purposes, where the respondent
reported the entered value for its sales,
we calculated importer-specific (or
customer-specific) ad valorem
assessment rates based on the ratio of
the total amount of the dumping duties
calculated for the examined sales to the
total entered value of those same sales.
See 19 CFR 351.212(b). However, where
the respondent did not report the
entered value for its sales, we will
calculate importer-specific (or customerspecific) per unit duty assessment rates.
We will instruct CBP to assess
antidumping duties on all appropriate
entries covered by this review if any per
unit duty assessment rate calculated in
the final results of this review is above
de minimis (i.e., at or above 0.50
percent). Pursuant to 19 CFR
351.106(c)(2), we intend to instruct CBP
to liquidate without regard to
antidumping duties any entries for
which the assessment rate is zero or de
E:\FR\FM\05AUN1.SGM
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47550
Federal Register / Vol. 76, No. 151 / Friday, August 5, 2011 / Notices
minimis (i.e., less than 0.50 percent).
See 19 CFR 351.106(c)(1).
Cash Deposit Requirements
The following deposit requirements
will be effective for all shipments of
PET Film from the India entered, or
withdrawn from warehouse, for
consumption on or after the date of
publication of the final results of this
administrative review, as provided for
by section 751(a)(2)(C) of the Act: (1)
The cash deposit rate for company
under review will be the rate
established in the final results of this
review (except, if the rate is zero or de
minimis, i.e., less than 0.5 percent, no
cash deposit will be required); (2) for
previously reviewed or investigated
companies not listed above, the cash
deposit rate will continue to be the
company-specific rate published for the
most recent period; (3) if the exporter is
not a firm covered in this review, a prior
review, or the less-than-fair-value
investigation, but the manufacturer is,
the cash deposit rate will be the rate
established for the most recent period
for the manufacturer of the
merchandise; and, (4) if neither the
exporter nor the manufacturer is a firm
covered in this or any previous review,
the cash deposit rate will be the all
others rate for this proceeding, 5.71
percent. These deposit requirements,
when imposed, shall remain in effect
until further notice.
Executive summaries should be limited
to five pages total, including footnotes.
We intend to issue the final results of
this administrative review, including
the results of our analysis of issues
raised in the written comments, within
120 days of publication of these
preliminary results in the Federal
Register, unless otherwise extended.
See section 751(a)(3)(A) of the Act.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f) to file a certificate regarding
the reimbursement of antidumping
duties prior to liquidation of the
relevant entries during this review
period. Failure to comply with this
requirement could result in the
Department’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of doubled antidumping duties.
These preliminary results of
administrative review are issued and
published in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: August 1, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2011–19952 Filed 8–4–11; 8:45 am]
BILLING CODE 3510–DS–P
erowe on DSKG8SOYB1PROD with NOTICES
Disclosure and Public Comment
DEPARTMENT OF COMMERCE
We will disclose the calculations used
in our analysis to parties in this review
within five days of the date of
publication of this notice in accordance
with 19 CFR 351.224(b). Any interested
party may request a hearing within 30
days of the publication of this notice in
the Federal Register. See 19 CFR
351.310. If a hearing is requested, the
Department will notify interested
parties of the hearing schedule.
Interested parties are invited to
comment on the preliminary results of
this review. Unless extended by the
Department, interested parties must
submit case briefs within 30 days of the
date of publication of this notice.
Rebuttal briefs, which must be limited
to issues raised in the case briefs, must
be filed not later than five days after the
time limit for filing case briefs. See 19
CFR 351.309(c) and (d) (for a further
discussion of case briefs and rebuttal
briefs, respectively). Parties who submit
case briefs or rebuttal briefs in this
review are requested to submit with
each argument: (1) A statement of the
issue, (2) a brief summary of the
argument, and (3) a table of authorities.
International Trade Administration
VerDate Mar<15>2010
15:16 Aug 04, 2011
Jkt 223001
[A–570–894]
Certain Tissue Paper Products From
the People’s Republic of China: Notice
of Rescission of the 2009–2010
Antidumping Duty Administrative
Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) is rescinding the
administrative review of the
antidumping duty order on certain
tissue paper products from the People’s
Republic of China (PRC) for the period
of review (POR) of March 1, 2009, to
February 28, 2010, with respect to Max
Fortune (Vietnam) Paper Products
Company Limited (MFVN) because
MFVN had no sales of subject
merchandise which entered the United
States during the POR.
DATES: Effective Date: August 5, 2011.
FOR FURTHER INFORMATION CONTACT:
Brian Smith or Gemal Brangman, AD/
CVD Operations, Office 2, Import
AGENCY:
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone (202) 482–1766 or (202) 482–
3773, respectively.
SUPPLEMENTARY INFORMATION:
Background
On April 6, 2011, the Department
published the preliminary results of this
administrative review. See Certain
Tissue Paper Products From the
People’s Republic of China: Notice of
Preliminary Results of Antidumping
Duty Administrative Review, 76 FR
19049 (April 6, 2011) (Preliminary
Results).
On May 20, 2011, MFVN and the
petitioner 1 submitted case briefs. On
May 27, 2011, the petitioner submitted
its rebuttal brief. MFVN did not submit
a rebuttal brief.
On May 31, 2011, MFVN withdrew its
May 6, 2011, request for a hearing. No
other party in this review requested a
hearing.
On July 8 and 13, 2011, the
Department held meetings with MFVN’s
and the petitioner’s counsels,
respectively, to discuss issues raised in
their case briefs.2
Rescission of Administrative Review
In this administrative review, MFVN
requested rescission of this review on
the basis that it made no sales/
shipments during the POR of tissue
paper products produced from Chineseorigin jumbo rolls/sheets.3 We
determined in the Preliminary Results,
as adverse facts available (AFA), that
during the POR MFVN made shipments
to the United States of tissue paper
products produced using Chinese-origin
jumbo rolls/sheets. Further, based on
AFA, we preliminarily found that no
substantial transformation is occurring
as a result of further processing by
MFVN in Vietnam and, thus, the
country of origin for antidumping duty
(AD) purposes of the tissue paper
products produced by MFVN from
Chinese-origin jumbo rolls/sheets is
China. Consequently, we assigned
MFVN a cash deposit rate of 112.64
percent.
Our Preliminary Results assumed that
MFVN was the entity making the first
sale for export to the United States of
1 The petitioner is Seaman Paper Company of
Massachusetts, Inc.
2 See the Department’s memoranda to the file
entitled, ‘‘Ex Parte Meeting with Counsel for Max
Fortune (Vietnam) Paper Products Company,
Limited,’’ dated July 11, 2011, and ‘‘Ex Parte
Meeting with the Petitioner’s Counsel,’’ dated July
14, 2011.
3 See Letter from MFVN, dated August 17, 2010.
E:\FR\FM\05AUN1.SGM
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Agencies
[Federal Register Volume 76, Number 151 (Friday, August 5, 2011)]
[Notices]
[Pages 47546-47550]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19952]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-824]
Polyethylene Terephthalate Film, Sheet, and Strip From India:
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 India. This review
covers one respondent, Ester Industries Ltd. (Ester), a producer and
exporter of PET Film from India. The Department preliminarily
determines that Ester did not make sales of PET Film from India at
below normal value (NV) during the July 1, 2009, through June 30, 2010,
period of review. The preliminary results are listed below in the
section titled ``Preliminary Results of Review.'' Interested parties
are invited to comment on these preliminary results.
DATES: Effective Date: August 5, 2011.
FOR FURTHER INFORMATION CONTACT: Elfi Blum, or Toni Page, AD/CVD
Operations, Office 6, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0197 or (202) 482-1398, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 1, 2002, the Department published in the Federal Register
the antidumping duty order on PET Film from India. See Notice of
Amended Final Antidumping Duty Determination of Sales at Less Than Fair
Value and Antidumping Duty Order: Polyethylene Terephthalate Film,
Sheet, and Strip from India, 67 FR 44175 (July 1, 2002) (PET Film India
Order). On July 1, 2010, the Department published a notice of
opportunity to request an administrative review of this order. See
Antidumping or Countervailing Duty Order, Finding, or Suspended
Investigation; Opportunity To Request Administrative Review, 75 FR
38074 (July 1, 2010). In response, on July 27, 2010, and August 2,
2010, Ester and SRF Limited (SRF), respectively, requested that the
Department conduct an administrative review of their sales of PET Film
in the U.S. market. On July 29, 2010, Dupont Teijin Films, Mitsubishi
Polyester Film, Inc., SKC, Inc. and Toray Plastics (America) Inc.
(collectively, the petitioners) requested an administrative review of
Ester.
On August 31, 2010, the Department published a notice of initiation
of an administrative review of the antidumping duty order on PET Film
from India covering the period July 1, 2009, through June 30, 2010. See
Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Deferral of Initiation of Administrative Review, 75 FR
53274, 53276 (August 31, 2010). The Department initiated the review
with respect to Ester and SRF.
On September 15, 2010, the Department issued an antidumping duty
questionnaire to the respondents. On October 1, 2010, SRF withdrew its
request for an administrative review, and the Department rescinded the
administrative review of SRF on July 7, 2011. See Polyethylene
Terephthalate Film, Sheet and Strip From India: Rescission, in Part, of
Antidumping Duty Administrative Review, 76 FR 39855 (July 7, 2011).
Ester timely submitted section A of the questionnaire on October 5,
2010, and sections B through D on November 3, 2010. On February 3,
2011, and on February 11, 2011, the Department issued its first
supplemental questionnaires to sections D, and A through C,
respectively. Ester timely filed its response to section D on March 1,
2011, and to sections A through C on April 15, 2011. The Department
issued its second supplemental questionnaire to section D on March 18,
2011, and Ester filed its timely response on April 15, 2011.
On April 1, 2011, the Department extended the time period for
issuing the preliminary results of the administrative review. See
Polyethylene Terephthalate Film, Sheet and Strip From India: Extension
of Time Limit for Preliminary Results of Antidumping Duty
Administrative Review, 76 FR 18155 (April 1, 2011).
The Department issued its second supplemental questionnaire to
sections A through C on June 17, 2011, and Ester filed its response to
this questionnaire on July 5, 2011.
Scope of the Order
The products covered by the antidumping duty order are all gauges
of raw, pretreated, or primed PET film, whether extruded or coextruded.
Excluded are metallized films and other finished films that have had at
least one of their surfaces modified by the application of a
performance-enhancing resinous or inorganic layer of more than 0.00001
inches thick. Imports of PET film are currently classifiable in the
Harmonized Tariff Schedule of the United States (HTSUS) under item
number 3920.62.00.90. HTSUS subheadings are provided for convenience
and customs purposes. The written description of the scope of the
antidumping duty order is dispositive.
Period of Review
The period of review (POR) is July 1, 2009, through June 30, 2010.
Home Market Viability
In order 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 five percent or more of the aggregate volume of U.S. sales), we
compared the volume of Ester's home market sales of the foreign like
product to the volume of its U.S. sales of subject merchandise, in
accordance with section 773(a)(1)(B)(i) of the Tariff Act of 1930, as
amended (the Act). Based on this comparison, we determined that Ester's
home market was viable during the POR.
Product Comparisons
Pursuant to section 771(16)(A) of the Act, for purposes of
determining appropriate product comparisons to the U.S. sales, the
Department considers all products, as described in the ``Scope of the
Order'' section of this notice above, that were sold in the comparison
market in the ordinary course of trade. In accordance with sections
771(16)(B) and
[[Page 47547]]
(C) of the Act, where there are no sales of identical merchandise in
the comparison market made in the ordinary course of trade, we compare
U.S. sales to sales of the most similar foreign like product based on
the characteristics listed in sections B and C of our antidumping
questionnaire: grade, specifications, dimensions, thickness, and
surface treatment. Where there were no sales of identical merchandise
in the home market to compare to U.S. sales, we compared U.S. sales to
the most similar foreign like product on the basis of the
characteristics listed above.
Normal Value Comparisons
To determine whether sales of subject merchandise to the United
States were made at less than fair value, we compared the export price
(EP) to NV, as described in the United States Price and Normal Value
sections of this notice. In accordance with section 777A(d)(2) of the
Act, we calculated monthly weighted-average prices for NV and compared
these to individual U.S. transaction prices.
Date of Sale
The Department will normally use invoice date, as recorded in the
exporter's or producer's records kept in the ordinary course of
business, as the date of sale, but may use a date other than the
invoice date if it better reflects the date on which the material terms
of sale are established. See 19 CFR 351.401(i). For Ester, we
preliminarily determine that no departure from our standard practice is
warranted. Ester reported invoice date as date of sale for both the
home market and the U.S. market, and the record does not indicate that
material terms of sale are established at a later date or earlier in
the sales process.
Level of Trade
In accordance with section 773(a)(1)(B)(i) of the Act, to the
extent practicable, the Department determines NV based on sales in the
comparison market at the same level of trade as the EP or constructed
export price (CEP) sales in the U.S. market. To determine whether NV
sales are at a different level of trade (LOT) than U.S. sales, we
examine selling functions along the chain of distribution between the
respondent and the unaffiliated customer for EP sales. See 19 CFR
351.412(c)(2). If the comparison market sales are at a different LOT,
and the difference affects price comparability, as manifested in a
pattern of consistent price differences between the sales on which NV
is based and comparison market sales at the LOT of the export
transaction, then we make an LOT adjustment pursuant to section
773(a)(7)(A) of the Act.
In implementing these principles, we examined all the information
provided by Ester regarding the selling functions involved in its home
market and U.S. sales. In the original questionnaire, the Department
asked Ester to provide its selling functions for each of its levels of
trade, and to state the degree that function was performed (i.e.,
rarely, sometimes, frequently, always). Additionally, the Department
provided a sample chart at the end of the Section A questionnaire to
use as a guideline.
In its questionnaire responses, Ester reported three LOTs in the
home market: (1) End Users; (2) Distributors/Traders;, and (3) Agents;
and two LOTs in the U.S. market: (1) End Users; and (2) Distributors/
Traders.\1\ In addition, Ester provided a chart of its selling
functions.\2\ However, it did not provide a breakout of sales
activities between the claimed LOT(s) in the home market and in the
U.S. market it claimed in its responses. Instead, Ester reported home
market sales in two categories: made against stock or produced after
receipt of the order. Ester later clarified in its second supplemental
response that it occasionally made sales from stock in the home market
only.\3\
---------------------------------------------------------------------------
\1\ Ester's First Supplemental Questionnaire Response of March
29, 2011 (First Supplemental Response), at 18 and 28.
\2\ See Ester's Original Response, Section A, of October 5,
2010, at Exhibit 3(b).
\3\ Ester's Second Supplemental Questionnaire Response of July
5, 2011 (Second Supplemental Response), at 3-4.
---------------------------------------------------------------------------
In its first supplemental response, Ester revised its chart to
include the level of degree of the selling activities, but did not
break out the selling functions between the various LOTs in the home
market and U.S. market.\4\ In the second supplemental questionnaire,
the Department requested that Ester indicate the level of selling
function which Ester provides for each type of customer; however, Ester
responded that it ``provides the individual selling functions to all
customers.'' \5\
---------------------------------------------------------------------------
\4\ Ester's First Supplemental Response, at 28 and Exhibit SQA-
9.
\5\ Second Supplemental Response, at 4.
---------------------------------------------------------------------------
Because Ester did not provide complete information, we are unable
to perform an LOT analysis. Despite explicit instructions as to how to
report its selling functions, Ester has not provided the data needed to
properly analyze the levels of trade the company has reported, to
determine whether an offset is warranted. We have no basis to perform
such an analysis between the various types of sales in the home and
U.S. markets. Therefore, we preliminarily determine that Ester made all
home market sales at one LOT. Moreover, we preliminarily determine that
all home market sales by Ester were made at the same LOT as their U.S.
sales. Accordingly, an LOT adjustment is not warranted. For a detailed
analysis, see the ``Level of Trade'' section in Memorandum to Thomas
Gilgunn, Program Manager, from Elfi Blum, International Trade Analyst,
Analysis Memorandum for the Preliminary Results of the Antidumping Duty
Administrative Review of Polyethylene Terephthalate Film, Sheet, and
Strip from India: Ester Industries Ltd. (Preliminary Analysis
Memorandum), dated concurrently with this notice.
United States Price
We used EP methodology for Ester's U.S. sales, in accordance with
section 772(a) of the Act, because the subject merchandise was sold
directly to the first unaffiliated purchaser in the United States prior
to importation, and CEP methodology was not otherwise warranted based
on the evidence on the record. In accordance with sections 772(a) and
(c) of the Act, we calculated EP using the Cost Insurance Freight price
(up to named point of destination) Ester charged its unaffiliated
customer. We made deductions from the starting price, where applicable,
for movement expenses, including domestic inland freight and insurance,
domestic brokerage and handling, and international freight and marine
insurance, and U.S. inland freight.
Information about the specific adjustments and our analysis of the
adjustments is business proprietary, and is detailed in the
``Adjustments'' section in the Preliminary Analysis Memorandum.
Further, section 772(c)(1)(B) of the Act states that EP should be
increased by the amount of any import duties ``imposed by the country
of exportation which have been rebated, or which have not been
collected, by reason of the exportation of the subject merchandise to
the United States. * * *'' Ester claimed a duty drawback adjustment
under this provision for its export credits earned on the Government of
India (GOI) Duty Entitlement Passbook Scheme (DEPS). In its responses
to the Department, Ester stated that it reported all of Ester's DEPS
credits earned on exports to all markets during the POR, and that the
credits it reported also include metallized PET film, which is not
subject to the PET Film India
[[Page 47548]]
Order.\6\ In addition, Ester reported the DEPS credits earned on the
free-on-board (FOB) value of its total exports during the POR, and the
DEPS credits utilized on its imports during the POR.\7\
---------------------------------------------------------------------------
\6\ See Ester's Original Response of November 3, 2010, at 86 and
Exhibit Z-6, and First Supplemental Response, at 32-33.
\7\ See Second Supplemental Response, at Exhibits SQ2-ABC-8 and
ABC-9.
---------------------------------------------------------------------------
India's DEPS scheme enables exporting companies to earn import duty
exemptions in the form of passbook credits rather than cash. All
exporters are eligible to earn DEPS credits on a post-export basis,
provided that the GOI has established a standard input-output norm
(SION) for the exported product. DEPS credits can be used for any
subsequent imports, regardless of whether they are consumed in the
production of an exported product. DEPS credits are valid for twelve
months and are transferable after the foreign exchange is realized from
the export sales on which the DEPS credits are earned. See Polyethylene
Terephthalate Film, Sheet, and Strip from India: Final Results of
Countervailing Duty Administrative Review, 73 FR 75672 (December 12,
2008), and accompanying Issues and Decision Memorandum, at ``Duty
Entitlement Passbook Scheme (DEPS/DEPB).'' The Department has
determined that the DEPS scheme for which Ester is claiming duty
drawback to be countervailable because: (1) The GOI provides credits
for the future payment of import duties; and (2) the GOI does not have
in place and does not apply a system that is reasonable and effective
for the purposes intended to confirm which inputs, and in what amounts,
are consumed in the production of the exported product. See id. and
Notice of Final Affirmative Countervailing Duty Determination:
Polyethylene Terephthalate Film, Sheet, and Strip (PET Film) From
India, 67 FR 34905 (May 16, 2002), and accompanying Issues and Decision
Memorandum, at Comment 1.
In determining whether an adjustment should be made to EP for this
duty credit, we look for a reasonable link between the duties imposed
and those rebated or exempted. We do not require that the imported
input be traced directly from importation through exportation. We do
require, however, that the company meet our ``two-pronged'' test in
order for this increase to be made to EP. The first element is that the
import duty and its rebate or exemption be directly linked to, and
dependent upon, one another; the second element is that the company
must demonstrate that there were sufficient imports of the imported
material to account for the duty drawback or exemption granted for the
export of the manufactured product. See, e.g., Saha Thai Steel Pipe
Co., Ltd. v. United States, 635 F.3d 1335, 1340 (Fed. Cir. 2011); and
Mittal Steel USA, Inc. v. United States, 31 CIT 1395, 1412-1413 (2007).
Ester failed to establish that it met the first prong of the two-
pronged test: That there is a necessary link between the import duties
paid on any inputs imported and the duty credit given by the GOI.
First, Ester did not demonstrate how it arrived at the appropriate
amounts of duty credits it allocated and claimed from its duty credits
earned on all exports of subject and non-subject merchandise during the
POR. Second, the Department has determined that the GOI does not have a
system in place that is reasonable and effective for the purposes
intended to confirm which inputs, and in what amounts, are consumed in
the production of the exported product. While there is a SION in place
for the production of subject merchandise, the duty credit given is
based on an assumed amount of import content, and fails to link the
amount of duty credits to the amount of import duties actually paid on
imported inputs. As shown in the response, Ester's DEPS credits for
which it claims duty drawback were earned on a pre-determined percent
of the FOB value of its exports during the POR. Furthermore, as stated
in Ester's response, ``Ester is not required to import to avail the
benefit of DEPS benefits. The DEPS credit is based on prefixed rates
and the Company is entitled to the DEPS credit regardless of imports of
inputs.'' \8\ For the second prong, Ester did not demonstrate that it
imported any inputs for the production of subject merchandise prior to,
during, or after the POR. Thus, for these preliminary results, we
determine that Ester has not demonstrated that it meets both prongs of
the duty drawback test pursuant to section 772(c)(1)(B) of the Act.
Accordingly, we have not made an adjustment to EP for duty drawback.
---------------------------------------------------------------------------
\8\ See Second Supplemental Response, at 35-38 and Exhibit SQ2-
ABC-8.
---------------------------------------------------------------------------
In accordance with section 772(c)(1)(C) of the Act, we will adjust
Ester's U.S. price to account for countervailing duties attributable to
subject merchandise in order to offset export subsidies in the
concurrent countervailing duty administrative review of Ester.
Cost of Production Analysis
The Department disregarded Ester's sales below cost of production
(COP) in the investigation. See Notice of Preliminary Determination of
Sales at Less Than Fair Value and Postponement of Final Determination:
Polyethylene Terephthalate Film, Sheet, and Strip From India, 66 FR
65893 (December 21, 2001), at ``C. COP Analysis,'' unchanged in the PET
Film India Order. We therefore have reasonable grounds to believe or
suspect, pursuant to section 773(b)(2)(A)(ii) of the Act, that sales of
the foreign like product under consideration for the determination of
NV in this review may have been made at prices below COP. Thus,
pursuant to section 773(b)(1) of the Act, we examined whether Ester's
sales in the home market were made at prices below the COP during the
POR.
The Department's normal practice is to calculate an annual
weighted-average cost for the entire period of investigation or POR.
See, e.g., Certain Pasta From Italy: Final Results of Antidumping Duty
Administrative Review, 65 FR 77852 (December 13, 2000) and accompanying
Issues and Decision Memorandum at Comment 18. However, the Department
recognizes that possible distortions may result if our normal annual-
average cost methodology is used during a period of significant cost
changes. The Department determines whether to deviate from our normal
methodology of calculating an annual weighted-average cost by
evaluating two primary factors: (1) Whether the change in the cost of
manufacturing recognized by the respondent during the POR is deemed
significant (i.e., greater than 25 percent); and (2) whether the record
evidence indicates that sales during the shorter averaging periods
could be reasonably linked with the COP during the same shorter
averaging periods. See Stainless Steel Plate in Coils From Belgium:
Final Results of Antidumping Duty Administrative Review, 73 FR 75398,
75399 (December 11, 2008) and Certain Welded Stainless Steel Pipes From
the Republic of Korea: Final Results of Antidumping Duty Administrative
Review, 74 FR 31242 (June 30, 2009). Based on the review of record
evidence, Ester did not appear to experience significant changes in
cost of manufacturing during the POR. Therefore, we followed our normal
methodology of calculating an annual weighted-average cost for these
preliminary results of review.
Based on our analysis of Ester's questionnaire responses, we made
adjustments to Ester's reported COP for
[[Page 47549]]
selling, general and administrative expenses (SG&A) and for interest.
For more detailed information, see Memorandum to Neal M. Halper,
Director, Office of Accounting from Sheikh M. Hannan, Senior
Accountant, Antidumping Duty Administrative Review of Polyethylene
Terephthalate Film, Sheet, and Strips from India, Cost of Production
and Constructed Value Calculation Adjustments for the Preliminary
Results--Ester Industries Limited, dated August 1, 2011.
We compared sales of the foreign like product in the home market
with model-specific COP figures for the POR. In accordance with section
773(b)(3) of the Act, we calculated COP based on the sum of the costs
of materials and fabrication employed in producing the foreign like
product, plus SG&A and all costs and expenses incidental to placing the
foreign like product in packed condition and ready for shipment. In our
sales-below-cost analysis, we relied on home market sales and COP
information provided by Ester in its questionnaire responses.
We compared the weighted-average COPs to home market sales of the
foreign like product, as required under section 773(b) of the Act, in
order to determine whether these sales had been made at prices below
the COP. In determining whether to disregard home market sales made at
prices below the COP, we examined whether such sales were made (1)
within an extended period of time in substantial quantities, and (2) at
prices which did not permit recovery of all costs within a reasonable
period of time in the normal course of trade, in accordance with
section 773(b)(1)(A) and (B) of the Act. On a product-specific basis,
we compared the COP to home market prices, less any movement charges,
discounts, and direct and indirect selling expenses.
Pursuant to section 773(b)(2)(C) of the Act, where less than 20
percent of the respondent's sales of a given product were at prices
less than COP, we did not disregard any below-cost sales of that
product because the below-cost sales were not made in substantial
quantities within an extended period of time. Where 20 percent or more
of the respondent's sales of a given product were at prices less than
COP, we disregarded the below-cost sales because they were made in
substantial quantities within an extended period of time, in accordance
with sections 773(b)(2)(B) and (C) of the Act. Based upon our
comparison of prices to POR-average costs, we determined that the
below-cost prices did not permit the recovery of costs within a
reasonable period of time, in accordance with section 773(b)(1)(B) of
the Act. Therefore, for purposes of this review, we disregarded the
below-cost sales and used the remaining sales, as the basis for NV, in
accordance with section 773(b)(1) of the Act.
Normal Value
Price-to-Price Comparison
We based NV on the starting prices of Ester's sales to unaffiliated
home market customers, pursuant to sections 773(a)(1)(A) and
773(a)(1)(B)(i) of the Act. Pursuant to section 773(a)(6)(B)(ii) of the
Act, we made deductions from NV for movement expenses (i.e., inland
freight and inland insurance) where appropriate. In accordance with
section 773(a)(6)(C)(iii) of the Act and 19 CFR 351.410(c), we made,
where indicated, circumstance-of-sale adjustments for home market
direct selling expenses, including imputed credit expenses. Ester did
not report certain payment dates. In instances of missing pay dates or
pay dates preceding the invoice date, we used the signature date of the
preliminary results (August 1, 2011) as the payment date to calculate
imputed credit expenses in the home market, in accordance with
practice.\9\ We also made adjustments in accordance with 19 CFR
351.410(e) for indirect selling expenses incurred on comparison-market
or U.S. sales where commissions were granted on sales in one market but
not the other. Specifically, because commissions were paid only in the
home market, we made an upward adjustment to NV for the lesser of: (1)
The amount of commission paid in the home market; or (2) the amount of
the indirect selling expenses incurred in the home market on U.S.
sales. See 19 CFR 351.410(e). In accordance with sections 773(a)(6)(A)
and (B) of the Act, we also deducted home market packing costs and
added U.S. packing costs. We also made adjustments for differences in
costs attributable to differences in physical characteristics of the
merchandise pursuant to section 773(a)(6)(C)(ii) of the Act. See
Preliminary Analysis Memorandum.
---------------------------------------------------------------------------
\9\ Stainless Steel Bar from France: Final Results of
Antidumping Duty Administrative Review, 70 FR 46482 (August 10,
2005) and accompanying Issues and Decision Memorandum at Comment 8.
---------------------------------------------------------------------------
Constructed Value-to-Price
In accordance with section 773(a)(4) of the Act, we used
constructed value (CV) as the basis for NV when there were no above-
cost contemporaneous sales of identical or similar merchandise in the
comparison market. We calculated CV in accordance with section 773(e)
of the Act. We included the cost of materials and fabrication, SG&A,
and profit. In accordance with section 773(e)(2)(A) of the Act, we
based SG&A and profit on the amounts incurred and realized by the
respondent in connection with the production and sale of the foreign
like product in the ordinary course of trade for consumption in the
foreign country. For selling expenses, we used the weighted-average
home market selling expenses.
Currency Conversions
Pursuant to section 773A(a) of the Act and 19 CFR 351.415, we made
currency conversions for Ester's sales based on the daily exchange
rates in effect on the dates of the relevant U.S. sales as certified by
the Federal Reserve Bank of New York.
Preliminary Results of Review
As a result of our review, we preliminarily determine the following
weighted-average dumping margin exists for the period July 1, 2009,
through June 30, 2010.
------------------------------------------------------------------------
Weighted-average
Manufacturer/Exporter margin
------------------------------------------------------------------------
Ester Industries Ltd................................ 0.00%
------------------------------------------------------------------------
Assessment Rates
The Department shall determine, and U.S. Customs and Border
Protection (CBP) shall assess, antidumping duties on all appropriate
entries. We will instruct CBP to liquidate entries of merchandise
produced and/or exported by Ester. The Department intends to issue
assessment instructions to CBP 15 days after the date of publication of
the final results of review. For assessment purposes, where the
respondent reported the entered value for its sales, we calculated
importer-specific (or customer-specific) ad valorem assessment rates
based on the ratio of the total amount of the dumping duties calculated
for the examined sales to the total entered value of those same sales.
See 19 CFR 351.212(b). However, where the respondent did not report the
entered value for its sales, we will calculate importer-specific (or
customer-specific) per unit duty assessment rates. We will instruct CBP
to assess antidumping duties on all appropriate entries covered by this
review if any per unit duty assessment rate calculated in the final
results of this review is above de minimis (i.e., at or above 0.50
percent). Pursuant to 19 CFR 351.106(c)(2), we intend to instruct CBP
to liquidate without regard to antidumping duties any entries for which
the assessment rate is zero or de
[[Page 47550]]
minimis (i.e., less than 0.50 percent). See 19 CFR 351.106(c)(1).
Cash Deposit Requirements
The following deposit requirements will be effective for all
shipments of PET Film from the India entered, or withdrawn from
warehouse, for consumption on or after the date of publication of the
final results of this administrative review, as provided for by section
751(a)(2)(C) of the Act: (1) The cash deposit rate for company under
review will be the rate established in the final results of this review
(except, if the rate is zero or de minimis, i.e., less than 0.5
percent, no cash deposit will be required); (2) for previously reviewed
or investigated companies not listed above, the cash deposit rate will
continue to be the company-specific rate published for the most recent
period; (3) if the exporter is not a firm covered in this review, a
prior review, or the less-than-fair-value investigation, but the
manufacturer is, the cash deposit rate will be the rate established for
the most recent period for the manufacturer of the merchandise; and,
(4) if neither the exporter nor the manufacturer is a firm covered in
this or any previous review, the cash deposit rate will be the all
others rate for this proceeding, 5.71 percent. These deposit
requirements, when imposed, shall remain in effect until further
notice.
Disclosure and Public Comment
We will disclose the calculations used in our analysis to parties
in this review within five days of the date of publication of this
notice in accordance with 19 CFR 351.224(b). Any interested party may
request a hearing within 30 days of the publication of this notice in
the Federal Register. See 19 CFR 351.310. If a hearing is requested,
the Department will notify interested parties of the hearing schedule.
Interested parties are invited to comment on the preliminary
results of this review. Unless extended by the Department, interested
parties must submit case briefs within 30 days of the date of
publication of this notice. Rebuttal briefs, which must be limited to
issues raised in the case briefs, must be filed not later than five
days after the time limit for filing case briefs. See 19 CFR 351.309(c)
and (d) (for a further discussion of case briefs and rebuttal briefs,
respectively). Parties who submit case briefs or rebuttal briefs in
this review are requested to submit with each argument: (1) A statement
of the issue, (2) a brief summary of the argument, and (3) a table of
authorities. Executive summaries should be limited to five pages total,
including footnotes.
We intend to issue the final results of this administrative review,
including the results of our analysis of issues raised in the written
comments, within 120 days of publication of these preliminary results
in the Federal Register, unless otherwise extended. See section
751(a)(3)(A) of the Act.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Department's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of doubled antidumping duties.
These preliminary results of administrative review are issued and
published in accordance with sections 751(a)(1) and 777(i)(1) of the
Act.
Dated: August 1, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-19952 Filed 8-4-11; 8:45 am]
BILLING CODE 3510-DS-P