[Federal Register: September 24, 2008 (Volume 73, Number 186)]
[Notices]
[Page 55036-55039]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24se08-41]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-520-803]
Polyethylene Terephthalate Film, Sheet, and Strip from the United
Arab Emirates: Final Determination of Sales at Less Than Fair Value
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On May 5, 2008, the Department of Commerce (Department)
published its preliminary determination of sales at less than fair
value (LTFV) in the antidumping investigation of polyethylene
terephthalate film, sheet and strip (PET film) from the United Arab
Emirates (UAE). On August 4, 2008, the Department issued a decision
memorandum concerning the targeted dumping allegation by petitioners.
See Memorandum to Stephen Claeys,
[[Page 55037]]
Deputy Assistant Secretary for Import Administration, from Barbara E.
Tillman, Director, AD/CVD Operations, Office 6, Antidumping Duty
Investigation of Polyethylene Terephthalate Film, Sheet, and Strip (PET
Film) from the United Arab Emirates: Analysis of Petitioners'
Allegation of Targeting Dumping, dated August 4, 2008 (Targeted Dumping
Memorandum). In that memorandum, we found that petitioners had not
provided sufficient information to warrant a targeted dumping analysis.
We invited interested parties to comment on our preliminary
determination of sales at LTFV and on our targeted dumping decision.
Based on our analysis of the comments received, we have made changes to
our calculations for the sole respondent. See ``Changes Since the
Preliminary Determination'' section below. We determine that PET film
from the UAE is being, or is likely to be, sold in the United States at
LTFV as provided in section 735 of the Tariff Act of 1930, as amended
(the Act). The final dumping margins for this investigation are listed
in the ``Final Determination Margins'' section below.
EFFECTIVE DATE: September 24, 2008.
FOR FURTHER INFORMATION CONTACT: Douglas Kirby or Myrna Lobo, 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-
3782 or (202) 482-2371, respectively.
SUPPLEMENTARY INFORMATION: The Department published its preliminary
determination of sales at LTFV on May 5, 2008. See Polyethylene
Terephthalate Film, Sheet, and Strip from the United Arab Emirates:
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination, 73 FR 24547 (May 5, 2008)
(Preliminary Determination). Additionally, the Department postponed the
deadline for the final determination to the 135\th\ day following
publication of the Preliminary Determination. See id. at 24548. As a
result, the deadline for this final determination is September 17,
2008. See id. The petitioners are DuPont Teijin Films, Mitsubishi
Polyester Film of America, Inc., SKC, Inc. and Toray Plastics
(America), Inc. (collectively, the petitioners). The respondent for
this investigation is Flex Middle East FZE (Flex UAE).
On March 21, 2008, the petitioners submitted a timely allegation
that Flex UAE engaged in targeted dumping during the POI in accordance
with 19 CFR 351.301(d)(5). On March 31, 2008, Flex UAE submitted
comments in response to the petitioners' targeted dumping allegation.
On April 11, 2008, the Department requested additional information from
the petitioners regarding their targeted dumping allegation, which was
submitted on April 21, 2008. Since there was not sufficient time to
analyze the information and fully consider the petitioners' allegation
before the preliminary determination, the Department stated in the
Preliminary Determination that it would issue a decision regarding
targeted dumping following the issuance of the preliminary
determination, and would allow parties to comment on it prior to the
final determination. After reviewing petitioners' April 21, 2008
supplemental information, the Department determined that additional
information was needed from petitioners and issued a second request for
information on June 6, 2008. Petitioners filed their submission on June
9, 2008. On August 4, 2008 the Department issued the Targeted Dumping
Memorandum in which we determined that petitioners had not provided
sufficient information to warrant a targeted dumping analysis. See
``Targeted Dumping'' section below for additional information.
Cost and sales verifications of Flex UAE were conducted by the
Department in May 2008, and a sales verification of Flex UAE's U.S.
affiliate, Flex America Inc. (Flex America) was conducted in July 2008.
See the ``Verification'' section below for additional information.
Upon the release of the last verification report on August 11,
2008, we invited parties to comment on the Preliminary Determination,
the targeted dumping decision, and the verification reports. On August
18, 2008, petitioners and respondents filed timely case briefs. On
August 22, 2008, both parties filed rebuttal briefs. No parties
requested a hearing.
Period of Investigation
The period of investigation (POI) is July 1, 2006 through June 30,
2007.
Scope of the Investigation
The products covered by this investigation are all gauges of raw,
pre-treated, or primed PET film, whether extruded or co-extruded.
Excluded are metallized films and other finished films that have had at
least one of their surfaces modified by the application of a
performance-enhancing resinous or inorganic layer more than 0.00001
inches thick. Also excluded is Roller transport cleaning film which has
at least one of its surfaces modified by application of 0.5 micrometers
of SBR latex. Tracing and drafting film is also excluded. PET film is
classifiable under subheading 3920.62.00.90 of the Harmonized Tariff
Schedule of the United States (HTSUS). While HTSUS subheadings are
provided for convenience and U.S. Customs and Border Protection (CBP)
purposes, our written description of the scope of this investigation is
dispositive.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the memorandum from Stephen J.
Claeys, Deputy Assistant Secretary for Import Administration, to David
M. Spooner, Assistant Secretary for Import Administration, Issues and
Decision Memorandum for the Final Determination of Sales at Less Than
Fair Value: Polyethylene Terephthalate Film, Sheet, and Strip from the
United Arab Emirates (UAE) (Issues and Decision Memorandum), dated
concurrently with this notice and which is hereby adopted by this
notice. A list of the issues which parties raised and to which we
respond in the Issues and Decision Memorandum is attached to this
notice as an appendix. The Issues and Decision Memorandum is a public
document and is on file in the Central Records Unit (CRU), Main
Commerce Building, Room 1117, and is accessible on the World Wide Web
at http://ia.ita.doc.gov/frn . The paper copy and electronic version of
the memorandum are identical in content.
Targeted Dumping
On August 4, 2008, the Department issued its Targeted Dumping
Memorandum, finding that the petitioners' allegation did not provide
sufficient information and analysis to warrant the conduct of a
targeted dumping analysis. The Department therein recommended applying
the standard methodology of comparing weighted-average normal values to
weighted-average export prices (or constructed export prices) for
purposes of calculating the dumping margin for the final determination.
After considering comments received in the case and rebuttal briefs,
the Department continues to find that petitioners' allegations of
targeted dumping do not provide a reasonable basis to find a pattern of
export prices for comparable merchandise that differ significantly
among purchasers. We determine further that petitioners did not
demonstrate that any such differences could not be taken into account
using the average-to-average methodology,
[[Page 55038]]
pursuant to section 777A(d)(1)(B) of the Act. We therefore conclude
that, for this final determination, we will continue to utilize the
average-to-average methodology in calculating the final margin for
respondent. For further discussion, see Comment 12 in the Issues and
Decision Memorandum.
Changes Since the Preliminary Determination
Based on our analysis of information on the record of this
investigation, and comments received from the interested parties, we
have made changes to the margin calculations for Flex UAE. We have also
considered information received in response to our April 25, 2008
questionnaire and information obtained at verification. As a result, we
have reclassified certain channel 2 and channel 3 sales as channel 1
(direct) sales. Further, we have revised the date of sale for Flex
UAE's channel 1 sales and recalculated credit expenses and inventory
carrying costs for the different channels as necessary. We have also
made adjustments to normal value (NV) for customs clearance fees and
export credit insurance, and to CEP for bank charges, sample sales
expenses and cash discounts as required. In addition, we have made
corrections to Flex UAE's cost of production. All of these changes are
fully discussed in the Issues and Decision Memorandum, the Analysis
Memorandum for the Final Determination of Sales at Less Than Fair
Value: Polyethylene Terephthalate Film, Sheet, and Strip from the
United Arab Emirates, dated September 17, 2008, and the Memorandum to
Neal M. Halper, Director, Office of Accounting, Cost of Production and
Constructed Value Calculation Adjustments for the Final Determination -
Flex Middle East FZE, dated September 17, 2008.
Verification
As provided in section 782(i) of the Act, we verified the sales and
cost information submitted by Flex UAE for use in our final
determination. We also conducted a sales verification of Flex UAE's
U.S. affiliate Flex America. We used standard verification procedures
including an examination of relevant accounting and production records,
and original source documents provided by Flex UAE and Flex America.
See Memorandum to the File, Verification of the Sales Response of Flex
Middle East (FZE) in the Antidumping Investigation of Polyethylene
Terephthalate Film, Sheet and Strip (PET film) from the United Arab
Emirates (UAE), dated July 23, 2008; Memorandum to Neal M. Halper,
Director, Office of Accounting, Verification of the Cost of Production
and Constructed Value Data Submitted by Flex Middle East FZE in the
Antidumping Duty Investigation of Polyethylene Terephthalate (PET)
Film, Sheet, and Strip from United Arab Emirates, dated July 8, 2008;
and Memorandum to the File, Verification of the Sales Response of Flex
America Inc. in the Antidumping Investigation of Polyethylene
Terephthalate Film, Sheet and Strip (PET Film) from the United Arab
Emirates (UAE), dated August 11, 2008.
All-Others Rate
Pursuant to section 735(c)(5)(A) of the Act, the all-others rate is
equal to the weighted average of the dumping margins of each respondent
investigated, excluding zero or de minimis margins and any margins
determined exclusively under section 776 of the Act. Flex UAE is the
only respondent in this investigation for which the Department has
calculated a rate. Therefore, for purposes of determining the all-
others rate and pursuant to section 735(c)(5)(A) of the Act, we are
using the rate calculated for Flex UAE as the all-others rate, as
referenced in the ``Final Determination Margins'' section below.
Final Determination Margins
We determine that the weighted-average dumping margins are as
follows:
------------------------------------------------------------------------
Weighted-Average
Producer/Exporter Margin
------------------------------------------------------------------------
Flex Middle East FZE................................ 4.80[percnt]
All Others.......................................... 4.80[percnt]
------------------------------------------------------------------------
Disclosure
We will disclose the calculations performed in reaching this final
determination within five days of the date of public announcement of
this determination to parties in this proceeding in accordance with 19
CFR 351.224(b).
Continuation of Suspension of Liquidation
Pursuant to section 735(c)(1)(B) of the Act, we will instruct CBP
to continue to suspend liquidation of all entries of subject
merchandise from the UAE entered, or withdrawn from warehouse, for
consumption on or after May 5, 2008, the date of publication of the
Preliminary Determination. We will instruct CBP to require a cash
deposit or the posting of a bond equal to the weighted-average dumping
margins, as indicated in the chart above, as follows: (1) the rate for
the firm listed above will be the rate we have determined in this final
determination; (2) if the exporter is not a firm identified in this
investigation, but the producer is, the rate will be the rate
established for the producer of the subject merchandise; (3) the rate
for all other producers or exporters will be 4.80 percent. The
suspension of liquidation will remain in effect until further notice.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (ITC) of our final determination. As our
final determination is affirmative, and in accordance with section
735(b)(2) of the Act, the ITC will determine, within 45 days, whether
the domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports, or sales (or the
likelihood of sales) for importation, of the subject merchandise. If
the ITC determines that such injury does exist, the Department will
issue an antidumping duty order directing CBP to assess antidumping
duties on all imports of the subject merchandise entered, or withdrawn
from warehouse, for consumption on or after the effective date of the
suspension of liquidation.
Return or Destruction of Proprietary Information
This notice will serve as the only reminder to parties subject to
administrative protective order (``APO'') of their responsibility
concerning the destruction of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return/destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
We are issuing and publishing this determination and notice in
accordance with sections 735(d) and 777(i) of the Act.
Dated: September 17, 2008.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
Appendix - Issues in Decision Memorandum
Comment 1: Date of Sale/Credit Expenses for U.S. Channel 1 Sales
Comment 2: Calculation of Inventory Carrying Costs for U.S. Sales
Comment 3: Reclassification of Direct Sales Reported as Channel 3 Sales
Comment 4: Correction to Erroneous Calculation for a U.S. Credit
Expense
Comment 5: Treatment of Bank Charges Incurred on U.S. Sales
[[Page 55039]]
Comment 6: Unreported Cash Discounts for a U.S. Sale
Comment 7: Treatment of U.S. Sample Sales
Comment 8: Whether to Adjust Normal Value for Customs Clearance Fees
Incurred on Home Market Sales
Comment 9: Whether to Adjust Normal Value for Export Credit Insurance
Incurred on Home Market Sales
Comment 10: Whether to Include the Surrogate Cost for a Domestic
Product Sold but Not Produced During the POI
Comment 11: Corrections to Flex UAE's Reported Cost of Production
Comment 12: Targeted Dumping
[FR Doc. E8-22453 Filed 9-23-08; 8:45 am]
BILLING CODE 3510-DS-S