[Federal Register Volume 59, Number 194 (Friday, October 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24937]


[[Page Unknown]]

[Federal Register: October 7, 1994]


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DEPARTMENT OF COMMERCE
[A-475-703]

 

Granular Polytetrafluoroethylene Resin From Italy; Preliminary 
Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Commerce.

ACTION: Notice of Preliminary Results of Antidumping Duty 
Administrative Review.

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SUMMARY: In response to requests by petitioner, respondents, and a 
domestic interested party, the Department of Commerce (the Department) 
is conducting an administrative review of the antidumping duty order on 
granular polytetrafluoroethylene (PTFE) resin from Italy. The review 
period is August 1, 1992, through July 31, 1993. The review covers one 
manufacturer/exporter of this merchandise to the United States, 
Ausimont S.p.A. As a result of this review, the Department preliminary 
has determined that dumping margins exist for this firm.
    We preliminarily have determined that sales have been made below 
the foreign market value (FMV). If these preliminary results are 
adopted in our final results of administrative review, we will instruct 
U.S. Customs to assess antidumping duties equal to the difference 
between the United States price (USP) and the FMV.
    We invite interested parties to comment on these preliminary 
results.

EFFECTIVE DATE: October 7, 1994.

FOR FURTHER INFORMATION CONTACT: Charles Riggle or Michael Rill, Office 
of Antidumping Compliance, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C., telephone: (202) 482-4733.

SUPPLEMENTARY INFORMATION:

Background

    On August 3, 1993, the Department published in the Federal Register 
a notice of ``Opportunity to Request Administrative Review'' (58 FR 
41239) of the antidumping duty order on granular PTFE resin from Italy 
(53 FR 33163; August 30, 1988). On August 27, 1993, E.I. DuPont de 
Nemours & Company, petitioner in this case, requested an administrative 
review of this order in accordance with 19 CFR 353.22(a)(1993). On 
August 31, 1993, Ausimont S.p.A. and Ausimont U.S.A., respondents in 
this review, and ICI Americas Inc., a domestic interested party, also 
requested an administrative review of this order. On September 30, 
1993, the Department published in the Federal Register a notice of 
initiation of this review (58 FR 51053), which covers the period August 
1, 1992, through July 31, 1993. The Department is conducting this 
administrative review in accordance with section 751 of the Tariff Act 
of 1930, as amended (the Act). The final results of the last 
administrative review of this order were published in the Federal 
Register on November 15, 1991 (56 FR 58031).

Scope of the Review

    Imports covered by the order under review are shipments of granular 
PTFE resin. This order also covers PTFE wet raw polymer exported from 
Italy to the United States (see Granular Polytetrafluoroethylene Resin 
from Italy; Final Determination of Circumvention of Antidumping Duty 
Order (58 FR 26100). This merchandise is classifiable under item number 
3904.61.00 of the Harmonized Tariff Schedule (HTS). 
Polytetrafluoroethylene dispersions in water and fine powders are not 
covered by this order. The HTS item number is provided for convenience 
and Customs purposes. The written description remains dispositive.
    The review covers one manufacturer/exporter of Italian granular 
PTFE resin to the United States, Ausimont S.p.A. The review period is 
August 1, 1992, through July 31, 1993.

United States Price

    The Department based United States price (USP) on exporter's sales 
price (ESP), in accordance with section 772(c) of the Act, because all 
sales to unrelated parties were made after importation of the subject 
merchandise into the United States. We calculated ESP based on the 
packed, delivered prices to unrelated purchasers in the United States. 
We adjusted these prices for billing adjustments and rebates. We made 
deductions, where appropriate, for foreign inland freight and ocean 
freight, marine insurance, brokerage and handling charges, U.S. duty, 
U.S. inland freight from port to warehouse, and U.S. inland freight to 
customers, in accordance with section 772(d)(2)(A) of the Act. We made 
further deductions, where appropriate, for credit expenses, warranties, 
technical services, and indirect selling expenses pursuant to section 
772(e)(2) of the Act. For sales of granular PTFE resin finished in the 
United States from PTFE wet raw polymer imported from Italy, we also 
deducted, pursuant to section 772(e)(3) of the Act, the value added in 
the United States, which consisted of the costs of further processing 
in the United States and that portion of the profit on sales of further 
processed merchandise attributable to the additional processing.
    When comparisons were made to home market sales to which a value-
added tax (VAT) was added or in which a VAT was included, we made an 
addition to USP for the VAT not collected or rebated on export in 
accordance with section 772(d)(1)(C) of the Act and our practice as set 
forth in Silicomanganese from Venezuela; Preliminary Determination of 
Sales at Less Than Fair Value, 59 FR 31204 (June 17, 1994) 
(Silicomanganese).

Foreign Market Value

    Based on a comparison of the volume of home market and third-
country sales, we determined that the home market was viable. 
Therefore, in accordance with section 773(a)(1)(A) of the Act, we based 
foreign market value (FMV) on the packed, delivered prices to unrelated 
customers in Italy or, where appropriate, on constructed value (CV).
    We calculated FMV on a monthly, weighted-average basis. Where 
possible, we compared sales of identical merchandise in the two 
markets. For each instance in which identical merchandise was not sold 
in Italy during the relevant contemporaneous period, we used as FMV 
contemporaneous home market sales of the product that was the most 
similar to the merchandise involved in the U.S. sale, in accordance 
with section 771(16) of the Act. Because filled and unfilled resins 
generally are not similar in terms of their physical characteristics, 
we compared, whenever possible, home market sales of filled resins to 
U.S. sales of filled resins, and home market sales of unfilled resins 
to U.S. sales of unfilled resins. We matched filled resins in the U.S. 
and home markets according to the amounts and types of fillers in the 
products sold and the percentages of those fillers. See Antidumping 
Duty Order on Granular Polytetrafluoroethylene Resin from Italy--
Analysis Memorandum for Preliminary Results of Fifth Review, August 5, 
1994.
    We made adjustments to home market prices for rebates. To adjust 
for differences in circumstances of sale between the home market and 
the United States in accordance with 19 CFR 353.56(a), we deducted 
post-sale inland freight, inland insurance, and credit expenses from 
FMV. Where applicable, we made adjustments for differences in the 
physical characteristics of the merchandise. We also deducted from FMV 
indirect selling expenses, in an amount not exceeding the amount of 
indirect selling expenses incurred in the United States, in accordance 
with 19 CFR 353.56(b)(2).
    In order to adjust for differences in packing between the two 
markets, we deducted home market packing from FMV and added U.S. 
packing to FMV. We also adjusted the amount of the Italian VAT included 
in FMV in accordance with our decision in Silicomanganese. No other 
adjustments were claimed or allowed.
    In accordance with section 773(a)(2) of the Act, we used CV as the 
basis for FMV when there were no usable sales of such or similar 
merchandise in the home market.
    We calculated CV in accordance with section 773(e) of the Act. We 
included the cost of materials, fabrication, general expenses, profit, 
and packing. To calculate CV we used: (1) actual general expenses, or 
the statutory minimum of 10 percent of materials and fabrication, 
whichever was greater; (2) actual profit or the statutory minimum of 8 
percent of materials, fabrication, and general expenses, whichever was 
greater; and (3) packing costs for merchandise exported to the United 
States. Where appropriate, we made adjustments to CV, in accordance 
with 19 CFR 353.56, for differences in circumstances of sale. We 
deducted home market direct selling expenses, and home market indirect 
selling expenses not exceeding the amount of U.S. indirect selling 
expenses in accordance with 19 CFR 353.56(b)(2).

Preliminary Results of the Review

    As a result of our comparison of USP with FMV, we preliminarily 
determine that the following weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                                 Margin 
         Manufacturer/exporter                  Period         (percent)
------------------------------------------------------------------------
Ausimont S.p.A..........................    08/01/92-07/31/93       2.26
------------------------------------------------------------------------

    Parties to the proceeding may request disclosure within five days 
of the date of publication of this notice. Interested parties may 
submit a written request for a hearing not later than 10 days after 
publication of this notice. In accordance with 19 CFR 353.38(c)(1)(ii), 
interested parties may submit written comments or arguments in case 
briefs on these preliminary results within 30 days of the date of 
publication. Rebuttal comments, or rebuttal briefs, limited to 
arguments raised in written comments or case briefs, may be submitted 
not later than 37 days after the date of publication. Any hearing, if 
requested, will be held approximately 44 days after the date of 
publication. Copies of written comments (case briefs) and rebuttal 
comments (rebuttal briefs) must be served on interested parties in 
accordance with 19 CFR 353.38(e).
    The Department will publish the final results of this 
administrative review including the results of its analysis of issues 
raised in any case or rebuttal brief or at a hearing.
    The Department shall determine, and the Customs Service shall 
assess, antidumping duties on all appropriate entries. Individual 
differences between USP and FMV may vary from the percentage stated 
above. Upon completion of this review, the Department will issue 
appraisement instructions directly to the Customs Service.
    Furthermore, the following deposit requirements will be effective 
for all shipments of the subject merchandise 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)(1) of the Act: (1) the cash deposit rate for the reviewed 
company will be the rate established in the final results of this 
administrative review; (2) for previously reviewed or investigated 
companies not listed above, the cash deposit rate will continue to be 
the company-specific rate published for the most recent period; (3) if 
the exporter is not a firm covered in this review, a prior review, or 
the original less-than-fair-value (LTFV) investigation, but the 
manufacturer is, the cash deposit rate will be the rate established for 
the most recent period for the manufacturer of the merchandise; and (4) 
if neither the exporter nor the manufacturer is a firm covered in this 
or any previous review conducted by the Department, the cash deposit 
rate will be the ``all others'' rate, as set forth below.
    On March 25, 1993, the Court of International Trade (CIT), in 
Floral Trade Council v. United States, 822 F. Supp. 766 (CIT 1993), and 
Federal-Mogul Corporation v. United States, 822 F. Supp. 782 (CIT 
1993), decided that once an ``all others'' rate is established for a 
company, it can only be changed through an administrative review. The 
Department has determined that in order to implement this decision, it 
is appropriate to reinstate the original ``all others'' rate from the 
LTFV investigation (or that rate as amended for correction of clerical 
errors or as a result of litigation) in proceedings governed by 
antidumping duty orders. In proceedings governed by antidumping 
findings, unless we are able to ascertain the ``all others'' rate from 
the original LTFV investigation, the Department has determined that it 
is appropriate to adopt the ``new shipper'' rate established in the 
first final results of administrative review published by the 
Department (or that rate as amended for correction of clerical errors 
or as a result of litigation) as the ``all others'' rate for the 
purposes of establishing cash deposits in all current and future 
administrative reviews. Because this proceeding is governed by an 
antidumping duty order, the ``all others'' rate for the purposes of 
this review will be 46.46 percent, the ``all others'' rate established 
in the LTFV investigation (50 FR 26019; June 24, 1985).
    These deposit requirements, when imposed, shall remain in effect 
until publication of the final results of the next administrative 
review.
    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 353.26 to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This administrative review and notice are in accordance with 
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22.

    Dated: September 12, 1994.
Paul L. Joffe,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 94-24937 Filed 10-6-94; 8:45 am]
BILLING CODE 3510-DS-P