[Federal Register Volume 60, Number 200 (Tuesday, October 17, 1995)]
[Notices]
[Pages 53735-53737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25753]



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DEPARTMENT OF COMMERCE
International Trade Administration
[A-475-703]


Granular Polytetrafluoroethylene Resin From Italy; 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 requests by one respondent and the petitioner, 
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, 1993, through July 31, 1994. This review covers one company, 
Ausimont, S.p.A. As a result of the review, the Department has 
preliminarily determined that dumping margins exist for this 
respondent. Interested parties are invited to comment on these 
preliminary results.

EFFECTIVE DATE: October 17, 1995.

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, DC 20230; telephone: (202) 482-
4733.

SUPPLEMENTARY INFORMATION:

Background

    On August 3, 1994, the Department published in the Federal Register 
a notice of ``Opportunity to Request Administrative Review'' (59 FR 
39543) of the antidumping duty order on granular PTFE resin from Italy 
(53 FR 33163, August 30, 1988). Respondent, Ausimont S.p.A., and 
petitioner, E. I. Dupont de Nemours & Company, requested an 
administrative review in accordance with 19 CFR 353.22(a)(1993). On 
September 16, 1994, the Department published a notice of initiation of 
this review (59 FR 47609). The period of review is August 1, 1993, 
through July 31, 1994. The Department is now conducting this review 
pursuant to section 751 of the Tariff Act of 1930, as amended (the 
Tariff Act).

Applicable Statute and Regulations

    Unless otherwise stated, all citations to the statute and to the 
Department's regulations are references to the provisions as they 
existed on December 31, 1994.

Scope of the Review

    The antidumping duty order covers granular PTFE resins, filled or 
unfilled. 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 order excludes PTFE dispersions in water and 
fine powders. During the period covered by this review, such 
merchandise was classified under item number 3904.61.00 of the 
Harmonized Tariff Schedule (HTS). We are providing this HTS number for 
convenience and Customs purposes only. The written description of the 
scope remains dispositive.
    The review covers one manufacturer/exporter of granular PTFE resin, 


[[Page 53736]]
Ausimont S.p.A. The period of review is August 1, 1993, through July 
31, 1994.

United States Price

    The Department based United States price (USP) on exporter's sale 
price (ESP) as defined in section 772(c) of the Tariff Act because all 
sales to unrelated parties were made after importation of the subject 
merchandise into the United States. We based ESP on the packed, 
delivered prices to unrelated purchasers in the United States. We made 
deductions, where applicable, for billing adjustments and rebates, 
foreign inland freight, ocean freight, marine insurance, U.S. brokerage 
and handling, U.S. inland freight from port to warehouse, and U.S. 
inland freight from warehouse to customer, in accordance with section 
772(d)(2)(a) of the Tariff Act. We also made deductions, where 
applicable, for credit expense, warranties, technical service expenses 
and indirect selling expenses in accordance with section 772(e) of the 
Tariff 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 Tariff 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 in which a value-
added tax (VAT) was added or a VAT was included, we made an addition to 
USP for the VAT which was not collected, or which was rebated, on 
export in accordance with our practice as set forth in Silicomanganese 
From Venezuela; Preliminary Determination of Sales at Less Than Fair 
Value (Silicomanganese), 59 FR 31204 (June 17, 1994).

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 Tariff Act, 
we based FMV on the packed, delivered price to unrelated purchasers in 
the home market.
    We calculated FMV on a monthly weighted-average basis. Where 
possible, we compared U.S. sales to sales of identical merchandise in 
Italy. For U.S. sales in which identical merchandise was not sold 
during the relevant contemporaneous period, we used as FMV 
contemporaneous home market sales of the product that was most similar 
to the merchandise involved in the U.S. sale, in accordance with 
section 771(16) of the Tariff Act. Whereas 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 
with U.S. sales of unfilled resins. We matched filled resins sold in 
the two markets according to the amounts and types of fillers, and the 
percentages of fillers, in the products sold as provided in Ausimont's 
supplemental questionnaire response dated June 9, 1995.
    Where applicable, 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, we deducted post-sale inland 
freight, inland insurance and credit expense from FMV in accordance 
with 19 CFR 353.56(a). Where applicable, we made adjustments for 
differences in the physical characteristics of the merchandise. In 
accordance with 19 CFR 353.56(b)(2), we deducted home market indirect 
selling expenses in an amount not to exceed the amount of indirect 
selling expenses incurred in the United States.
    In order to adjust for differences in packing between the two 
markets, we deducted home market packing costs from FMV and added U.S. 
packing costs. We also adjusted for the amount of Italian VAT in 
accordance with our decision in Silicomanganese.
    We compared U.S. sales of further manufactured resins to FMV based 
on constructed value (CV) when Ausimont did not have contemporaneous 
home market sales of PTFE reactor bead, the product from which PTFE 
resin is processed in the United States. We calculated CV in accordance 
with section 773(e) of the Tariff Act. We included the cost of 
materials, labor, general expenses, profit and packing. To calculate CV 
we used: (1) The greater of actual general expenses or the statutory 
minimum of 10 percent of materials and labor; (2) the greater of actual 
profit or the statutory minimum of eight percent of materials, labor 
and general expenses; 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 to exceed the amount of indirect selling 
expenses incurred in the United States in accordance with section 
353.56(b)(2).

Preliminary Results of Review

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

------------------------------------------------------------------------
                                                                 Margin 
              Manufacturer/exporter                  Period    (percent)
------------------------------------------------------------------------
Ausimont S.p.A..................................    08/01/93-           
                                                     07/31/94       6.91
------------------------------------------------------------------------

    Interested parties may submit written comments on these preliminary 
results. Interested parties may request disclosure within 5 days of the 
date of publication of this notice and may request a hearing within 10 
days of publication. Any hearing, if requested, will be held 
approximately 44 days from the date of publication. Case briefs and 
other written comments from interested parties may be submitted not 
later than 30 days from the date of publication. Rebuttal briefs and 
rebuttal comments, limited to issues raised in the case briefs, may be 
filed not later than 37 days from the date of publication. The 
Department will publish the final results of this administrative review 
including the results of its analysis of issues raised in any such 
written comments 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 publication date of the 
final results of this administrative review, as provided by section 
751(a)(1) of the Tariff 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) 
the cash deposit rate for all other manufacturers or exporters will 
continue to be 46.46 

[[Page 53737]]
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 Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR 
353.22.

    Dated: October 2, 1995.
Paul L. Joffe,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 95-25753 Filed 10-16-95; 8:45 am]
BILLING CODE 3510-DS-P