[Federal Register: February 2, 2004 (Volume 69, Number 21)]
[Notices]               
[Page 4922-4923]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02fe04-21]                         

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-059]

 
Notice of Preliminary Results of Antidumping Duty Changed 
Circumstances Review: Pressure Sensitive Plastic Tape from Italy

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of Preliminary Results of Antidumping Duty Changed 
Circumstances Review.

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SUMMARY: On August 27, 2003, the Department of Commerce (the 
Department) published a notice of initiation of changed circumstances 
review of the antidumping duty order on pressure sensitive plastic tape 
(PSPT) from Italy to determine whether Tyco Adhesives Italia S.p.A. 
(Tyco) is a successor-in-interest company to Manuli Tapes S.p.A. 
(Manuli). See Notice of Initiation of Antidumping Duty Changed 
Circumstances Review: Pressure Sensitive Plastic Tape from Italy, 68 FR 
51557 (August 27, 2003) (Notice of Initiation). We have preliminarily 
determined that Tyco is the successor-in-interest to Manuli, for 
purposes of determining antidumping liability in this proceeding. 
Interested parties are invited to comment on these preliminary results.

EFFECTIVE DATE: February 2, 2004.

FOR FURTHER INFORMATION CONTACT: Zev Primor or Paige Rivas, AD/CVD 
Enforcement, Group II, Office 4, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-4114 
or (202) 482-0651, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 3, 2003, Tyco requested that the Department conduct a 
changed circumstances review of the antidumping duty order on PSPT from 
Italy pursuant to section 751(b)(1) of the Tariff Act of 1930, as 
amended, (the Act), and 19 CFR 351.221(c)(3)(ii)(2003). Tyco claims to 
be the successor-in-interest to Manuli Tapes, S.p.A.\1\, and, as such, 
claims that it is entitled to receive the same antidumping treatment as 
Manuli. On August 7, 2003, at the request of the Department, Tyco 
submitted additional information and documentation pertaining to its 
changed circumstances request. From November 12 through November 15, 
2003, the Department conducted a verification of information pertaining 
to this changed circumstances review at Tyco's offices in Novara and 
Tyco's plant in Formia, both located in Italy.
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    \1\ On December 31, 1999, after merging with another company, 
Manuli Autoadesivi S.p.A. changed its corporate name to Manuli Tapes 
S.p.A.
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Scope of Review

    Imports covered by the review are shipments of PSPT measuring over 
1\3/8\ inches in width and not exceeding 4 millimeters in thickness, 
currently classifiable under items 3919.90.20 and 3919.90.50 of the 
Harmonized Tariff Schedule of the United States (HTSUS). HTSUS 
subheadings are provided for convenience and customs purposes. The 
written description remains dispositive as to the scope of the product 
coverage.

Preliminary Results of Review

    In submissions to the Department dated July 3 and August 7, 2003, 
Tyco, an Italian holding company, advised the Department that on May 8, 
2001, it acquired Manuli from its owner, Manuli Packaging Group, S.p.A. 
(Manuli Packaging). Up to that point, Manuli was a wholly-owned 
subsidiary of Manuli Packaging. Prior to its purchase of Manuli, Tyco 
did not hold an ownership interest in any other company, nor did it 
produce or sell any subject or non-subject merchandise.
    In antidumping duty changed circumstances reviews involving a 
successor-in-interest determination, the Department typically examines 
several factors including, but not limited to, changes in: (1) 
management; (2) production facilities; (3) supplier relationships; and 
(4) customer base. See Brass Sheet and Strip from Canada: Notice of 
Final Results of Antidumping Administrative Review, 57 FR 20460, 20462 
(May 13, 1992) (Canadian Brass). While no single factor or combination 
of factors will necessarily be dispositive, the Department generally 
will consider the new company to be the successor to the predecessor 
company if the resulting operations are essentially the same as those 
of the predecessor company. See, e.g., Industrial Phosphoric Acid from 
Israel: Final Results of Changed Circumstances Review, 59 FR 6944, 6945 
(February 14, 1994), and Canadian Brass, 57 FR 20460. Thus, if the 
record evidence demonstrates that, with respect to the production and 
sale of the subject merchandise, the new company operates as the same 
business entity as the predecessor company, the Department may assign 
the new company the cash deposit rate of its predecessor. See, e.g., 
Fresh and Chilled Atlantic Salmon from Norway: Final

[[Page 4923]]

Results of Changes Circumstances Antidumping Duty Administrative 
Review, 64 FR 9979, 9980 (March 1, 1999).
    Our review of the evidence provided by Tyco indicates, 
preliminarily, that the change in ownership has not significantly 
changed the company's personnel, operations, supplier/customer 
relationship, or production facilities. With regard to management, at 
verification, the Department examined Tyco's payroll records and 
employment history of each of its top managers before and after the 
acquisition took place. We note, preliminarily, that no significant 
changes in management have occurred.
    Additionally, as the new corporate entity, Tyco provided a 
certified copy of the official corporate registry showing it as a 
successor to Manuli as of May 8, 2001, the effective date of the 
acquisition, as well as documents showing that since the name change, 
Tyco continued Manuli's production of PSPT in the same manner using the 
same suppliers and facilities as it did under its previous name of 
Manuli. See Memorandum to the File, Antidumping Duty Changed 
Circumstances Review of Pressure Sensitive Plastic Tape from Italy: 
Verification Report for Tyco Adhesives Italia S.p.A. (TAI) Regarding 
Successorship, (Verification Report), at Exhibit 9 and 12.
    Furthermore, Tyco provided certified statements from its President 
that all activities undertaken by Manuli prior to May 8, 2001, (i.e., 
production, sales, marketing, technical services, order receiving and 
freight forwarding of PSPT) have since been performed by Tyco. Finally, 
Tyco provided a copy of the Stock Purchase Agreement for Manuli, as 
well as a copy of corporate registry under the new name with the 
appropriate Italian authorities. See Verification Report, at Exhibit 8 
and 10.
    In sum, Tyco has presented evidence to establish a prima facie case 
of its successorship status. Manuli's acquisition by Tyco has 
precipitated minimal changes to the original Manuli corporate 
structure. Tyco's management, production facilities, supplier 
relationships, sales facilities and customer base are essentially 
unchanged from those of Manuli's. Therefore, the record evidence 
demonstrates that the new entity essentially operates in the same 
manner as the predecessor company. Consequently, we preliminarily 
determine that Tyco should be given the same antidumping duty treatment 
as Manuli, i.e., zero percent antidumping duty cash deposit rate.
    The cash deposit determination from this changed circumstances 
review will apply to all entries of the subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this changed circumstances review. 
See Granular Polytetrafluoroethylene Resin from Italy; Final Results of 
Antidumping Duty Changed Circumstances Review, 68 FR 25327 (May 12, 
2003). This deposit rate shall remain in effect until publication of 
the final results of the next administrative review in which Tyco 
participates.

Public Comment

    Any interested party may request a hearing within 30 days of 
publication of this notice. 19 CFR 351.310(c). Any hearing, if 
requested, will be held 44 days after the date of publication of this 
notice, or the first working day thereafter. Interested parties may 
submit case briefs and/or written comments not later than 30 days after 
the date of publication of this notice. 19 CFR 351.309(c)(ii). Rebuttal 
briefs, which must be limited to issues raised in such briefs or 
comments, may be filed not later than 37 days after the date of 
publication of this notice. See 19 CFR 351.309(d). Parties who submit 
arguments are requested to submit with the argument (1) a statement of 
the issue, (2) a brief summary of the argument, and (3) a table of 
authorities.
    Consistent with section 351.216(e) of the Department's regulations, 
we will issue the final results of this changed circumstances review no 
later than 270 days after the date on which this review was initiated.
    This notice is in accordance with sections 751(b) and 777(i)(1) of 
the Act, and section 351.221(c)(3)(i) of the Department's regulations.

    Dated: January 27, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 04-2060 Filed 1-30-04; 8:45 am]