[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31796]


[Federal Register: December 28, 1994]


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DEPARTMENT OF COMMERCE
[A-538-802]


Shop Towels from Bangladesh; Preliminary Results of Antidumping 
Duty Administrative Review

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

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

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SUMMARY: In response to a request from the petitioner, Milliken & 
Company, the Department of Commerce is conducting an administrative 
review of the antidumping duty order on shop towels from Bangladesh. 
The review period is September 12, 1991 through February 28, 1993. This 
review covers six manufacturers/exporters. The preliminary results of 
this review indicate the existence of dumping margins for two 
manufacturers/exporters during the period.
    Interested parties are invited to comment on these preliminary 
results.

EFFECTIVE DATE: December 28, 1994.

FOR FURTHER INFORMATION CONTACT: Jacqueline Arrowsmith, Matthew 
Rosenbaum, or Michael Rill, Office of Antidumping Compliance, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, Washington, D.C. 20230; 
telephone (202) 482-4733.

SUPPLEMENTARY INFORMATION:

Background

    On March 12, 1993, the Department of Commerce (the Department) 
published a notice of ``Opportunity to Request an Administrative 
Review'' (58 FR 13583) of the antidumping duty order on shop towels 
from Bangladesh (57 FR 9688, March 20, 1992) for the period September 
12, 1991 through February 28, 1993. On March 29, 1993, the petitioner, 
Milliken & Company (Milliken), requested an administrative review of 
six companies subject to the antidumping order, Eagle Star Mills, Ltd. 
(Eagle Star); Greyfab (Bangladesh) Ltd. (Greyfab); Hashem International 
(Hashem); Khaled Textile Mills, Ltd. (Khaled); Shabnam Textiles 
(Shabnam); and Sonar Cotton Mills (BD), Ltd. (Sonar). We published a 
notice of initiation of the review on May 6, 1993 (58 FR 26960). The 
Department is now conducting a review of these respondents pursuant to 
section 751 of the Tariff Act of 1930, as amended (the Tariff Act).

Scope of the Review

    The product covered by this administrative review is shop towels. 
Shop towels are absorbent industrial wiping cloths made from a loosely 
woven fabric. The fabric may be either 100 percent cotton or a blend of 
materials. Shop towels are currently classifiable under item numbers 
6307.10.2005 and 6307.10.2015 of the Harmonized Tariff Schedules (HTS). 
Although HTS subheadings are provided for convenience and customs 
purposes, our written description of the scope of this proceeding 
remains dispositive.

United States Price

    The Department used purchase price (PP) for Greyfab, Hashem, 
Khaled, Shabnam, and Sonar, as defined in section 772(b) of the Tariff 
Act, in calculating U.S. price (USP) because the subject merchandise 
was sold by the manufacturer, prior to importation, to unrelated 
purchasers for exportation to the United States. For Greyfab, Hashem, 
and Shabnam, we calculated PP based on packed and delivered C&F prices. 
We made deductions where appropriate for forwarding charges and ocean 
freight. For Khaled and Sonar, we calculated PP based on packed and 
delivered C&F or CIF prices. We made deductions where appropriate for 
forwarding charges, ocean freight, and insurance expenses.

Foreign Market Value

    We calculated foreign market value (FMV) based on constructed value 
(CV) in accordance with section 773(e) of the Tariff Act, because none 
of the respondents sold such or similar merchandise in the home market 
or in any third-country market during the period of review (POR). The 
CV includes the cost of materials and fabrication of the merchandise 
exported to the United States, plus 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 costs and general expenses, whichever was 
greater; and (3) packing costs for merchandise exported to the United 
States. Because the only general expenses incurred were those incurred 
for U.S. sales, we used these general expenses in our calculation of 
CV. We made no adjustments.

Currency Conversion

    In our analysis, we normally make currency conversions in 
accordance with 19 CFR 353.60 using the exchange rates certified by the 
Federal Reserve Bank of New York. Since the Federal Reserve Bank of New 
York does not provide exchange rate information for Bangladesh, we used 
the average monthly exchange rates published in the International 
Monetary Fund's International Financial Statistics.

Best Information Available (BIA)

    On November 18, 1993, we sent Eagle Star a questionnaire. On 
December 30, 1993, we received a letter from Eagle Star explaining that 
it was no longer in the shop towel business, and therefore, would not 
participate in the first administrative review. Eagle Star stated, 
however, that it had made four shipments during the period of review. 
Therefore, in accordance with section 776(c) of the Act, we have 
determined that the use of BIA is appropriate for Eagle Star.
    In determining what to use as BIA, the Department employs a two-
tier methodology. The Department uses one method to determine the BIA 
margin for those respondents who cooperate in a review, while it uses a 
different method to determine the BIA margin for those respondents who 
do not cooperate, or who significantly impede the review. See Final 
Results of Antidumping Administrative Review; Antifriction Bearings 
(Other Than Tapered Roller Bearings) and Parts Thereof From the Federal 
Republic of Germany 56 FR 31704 (July 11, 1991).
    In the case of uncooperative respondents, we use as BIA the higher 
of (1) the highest of the rates found for any firm for the same class 
or kind of merchandise in the less-than-fair-value (LTFV) investigation 
or prior administrative reviews; or (2) the highest calculated rate in 
the current review for any firm. Because Eagle Star refused to respond 
to the Department's questionnaire, and therefore was uncooperative, we 
have used this method to determine Eagle Star's margin for purposes of 
this review in accordance with Departmental practice. Accordingly, a 
margin of 42.31 percent, the highest rate for any company from this or 
any prior segment of the proceeding, has been applied to this company. 
See Final Determination of Sales at Less Than Fair Value; Shop Towels 
from Bangladesh, 57 FR 3996 (September 3, 1992).

Preliminary Results of Review

    We preliminarily determine that the following margins exist for the 
period September 12, 1991 through February 28, 1993:

------------------------------------------------------------------------
            Manufacturer/producer/exporter             Margin percentage
------------------------------------------------------------------------
Eagle Star Textile Mills, Ltd........................              42.31
Greyfab (Bangladesh), Ltd............................               0.00
Hashem International.................................               0.00
Khaled Textile Mills, Ltd............................               9.61
Shabnam Textiles (de minimis)........................               0.15
Sonar Cotton (BD), Ltd...............................              17.46
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    The Department shall determine, and the U.S. Customs Service shall 
assess, antidumping duties on all appropriate entries. Individual 
differences between the USP and FMV may vary from the percentages 
stated above. Upon completion of this review, the Department will issue 
appraisement instructions concerning all respondents directly to U.S. 
Customs.
    Furthermore, the following deposit requirements will be effective 
upon publication of the final results of this administrative review for 
all shipments of Bangladeshi shop towels entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided by section 751(a)(1) of the Tariff Act: (1) The cash deposit 
rates for the reviewed companies will be those established in the final 
results of this administrative review. (Because the rates for Greyfab 
and Hashem were zero and the rate for Shabnam was de minimis, the 
Department shall not require cash deposits on shipments of subject 
merchandise for these firms); (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 or the 
original 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) the cash deposit rate for any 
future entries from all other manufacturers or exporters will continue 
to be 4.60 percent, the ``all others'' rate established in the LTFV 
investigation of this case, in accordance with the Court of 
International Trade's (CIT's) decisions in Floral Trade Council v. 
United States, 822 F.Supp. 766 (CIT 1993), and Federal Mogul 
Corporation and the Torrington Company v. the United States 822 F.Supp. 
782 (CIT 1993).
    These deposit requirements when imposed, shall remain in effect 
until publication of the final results of the next administrative 
review.
    Interested parties may request disclosure within five days of 
publication of this notice and may request a hearing within 10 days of 
the date of publication. Any hearing, if requested, will be held as 
early as convenient for the parties, but not later than 44 days after 
the date of publication or the first workday thereafter. Interested 
parties may submit written comments (case briefs) on these preliminary 
results not later than 30 days after the date of publication of this 
notice. Rebuttal comments (rebuttal briefs), limited to issues raised 
in the case briefs, may be filed not later than 37 days after the date 
of publication. The Department will include its analysis of issues 
raised in any such written comments when it publishes the final results 
of this administrative review.
    This notice 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 notice is in accordance with section 751(a)(1) of the Tariff 
Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22(c)(5).

    Dated: December 16, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-31796 Filed 12-27-94; 8:45 am]
BILLING CODE 3510-DS-P