[Federal Register Volume 64, Number 31 (Wednesday, February 17, 1999)]
[Notices]
[Pages 7855-7856]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3867]


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DEPARTMENT OF COMMERCE

[A-580-807]


Polyethylene Terephthalate Film, Sheet, and Strip From the 
Republic of Korea; Notice of Final Court Decision and Amended Final 
Results of Antidumping Duty Administrative Review

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

ACTION: Notice of final court decision and amended final results of 
antidumpting duty administrative review.

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SUMMARY: On November 23, 1998, in the case of E.I. DuPont de Nemours & 
Company v. United States, the United States Court of International 
Trade (the Court) affirmed the Department of Commerce's (the 
Department) redetermination for Cheil Synthetic Corporation (Cheil) and 
SKC Corporation (SKC) arising out of the first review of polyethylene 
terephthalate film, sheet, and strip (PET film) from the Republic of 
Korea. The review covers the period November 30, 1990 through May 31, 
1992. As there is now a final and conclusive court decision in this 
action, we are amending the final results of review with respect to 
sales by Cheil and SKC during the review period. We will instruct the 
U.S. Customs Service to liquidate Cheil and SKC's entries accordingly.

EFFECTIVE DATE: February 17, 1999.

FOR FURTHER INFORMATION CONTACT: Michael J. Heaney or John Kugelman, 
AD/CVD Enforcement Group III, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230, telephone: (202) 482-
4475 or 0649, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 26, 1998, the Court issued an order remanding in part the 
amended final results issued on February 12, 1996. See E.I. Dupont de 
Nemours v. United States, 4 F. Supp. 2d 1248 (CIT 1998). In its March 
26, 1998 order the Court directed the Department to (1) determine 
whether, in light of SKC's U.S. customer's financial condition, SKC's 
reported short-term interest rate is consistent with the Federal 
Circuit's decision in LMI-LaMetalli Industriale S.p.A. v. United 
States, 912 F. 2d 455 (Fed. Cir. 1990) (LMI) and (2) reconsider its 
decision to deduct Cheil's inventory carrying costs (ICC) from foreign 
market value (FMV).
    As directed by the Court, on remand we examined whether, in light 
of SKC's U.S. customer's financial condition, SKC's reported short-term 
interest rate was consistent with the LMI decision. In LMI the Federal 
Circuit held that the Department's use of higher home market borrowing 
rates did not reflect the respondent's actual borrowing experience 
because the respondent was able to secure financing in the United 
States at a lower rate. In the instant case, the Department determined 
that SKC's U.S. customer's financial condition was not determinative of 
SKC's borrowing costs in the United States. Furthermore, we found that 
because SKC's sales were denominated in Korean won, SKC had 
appropriately based its credit expense upon its borrowings in Korea. 
This is consistent with the Department's practice since the LMI 
decision of using the short-term interest rate tied to the currency in 
which the sales are denominated. See e.g., Final Determination of Sales 
at Less Than Fair Value: Oil Country Tubular Goods from Austria, 60 FR 
33551, 33555 (June 28, 1995); see also Import Administration Policy 
Bulletin No. 98.2,

[[Page 7856]]

Imputed Credit Expenses and Interest Rates, Feb. 23, 1998. Based upon 
the foregoing, we determined that SKC's calculation was consistent with 
LMI.
    We also determined that because Cheil's sales in the United States 
were purchase price (PP) transactions, no deduction for inventory 
carrying costs is warranted from either FMV or PP. We revised our 
margin calculations for Cheil accordingly. This determination is 
consistent with our long-standing practice of deducting indirect 
selling expenses from USP only with respect to ESP transactions. See 
e.g., Frozen Concentrated Orange Juice from Brazil; Final Results and 
Termination in Part of Antidumping Duty Administrative Review, 61 FR 
47502, 47503 (November 14, 1990.)
    On November 23, 1998, the Court issued a final and conclusive 
ruling affirming our results of redetermination.

Amendment to Final Results of Review

    Pursuant to section 516A(e) of the Act, we are now amending the 
final results for SKC and Cheil for the period November 30, 1990 
through May 31, 1992. The recalculated margins for Cheil and SKC are 
outlined below:

------------------------------------------------------------------------
                                                                Margin
                          Company                             (percent)
------------------------------------------------------------------------
Cheil......................................................         0.07
SKC........................................................         0.11
------------------------------------------------------------------------

    The Department shall determine, and the Customs Service shall 
assess, antidumping duties on all appropriate entries. Individual 
differences between U.S. price and FMV may vary from the percentage 
stated above. The Department will issue appraisement instructions 
directly to the Customs Service.
    We note that the Department has revoked the order with respect to 
Saehan Industries, Inc., the successor company to Cheil Synthetics, and 
that the current cash deposit rate for SKC is based upon an 
administrative review conducted subsequent to this segment of the 
proceeding. Therefore, these amended final results do not affect 
current cash deposit rates.
    This notice is published pursuant to section 751(A) of the Act.

    Dated: February 9, 1999.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-3867 Filed 2-16-99; 8:45 am]
BILLING CODE 3510-DS-M