[Federal Register Volume 64, Number 52 (Thursday, March 18, 1999)]
[Notices]
[Pages 13399-13401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6536]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-570-101]


Final Results of Expedited Sunset Review: Greige Polyester Cotton 
Printcloth From the People's Republic of China

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

ACTION: Notice of final results of expedited sunset review: Greige 
polyester cotton printcloth from the People's Republic of China.

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SUMMARY: On November 2, 1998, the Department of Commerce (``the 
Department'') initiated a sunset review of the antidumping order on 
greige polyester cotton printcloth from The People's Republic of China 
(63 FR 58709) pursuant to section 751(c) of the Tariff Act of 1930, as 
amended (``the Act''). On the basis of a notice of intent to 
participate and substantive comments filed on behalf of the domestic 
industry and inadequate response (in this case, no response) from 
respondent interested parties, the Department determined to conduct an 
expedited review. As a result of this review, the Department finds that 
revocation of the antidumping order would be likely to lead to 
continuation or recurrence of dumping at the levels indicated in the 
Final Results of Review section of this notice.

FOR FURTHER INFORMATION CONTACT: Scott E. Smith or Melissa G. Skinner, 
Office of Policy for Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, D.C. 20230; telephone: (202) 482-
6397 or (202) 482-1560, respectively.

EFFECTIVE DATE: March 18, 1999.

Statute and Regulations

    This review was conducted pursuant to sections 751(c) and 752 of 
the Act. The Department's procedures for the conduct of sunset reviews 
are set forth in Procedures for Conducting Five-year (``Sunset'') 
Reviews of Antidumping and Countervailing Duty Orders, 63 FR 13516 
(March 20, 1998) (``Sunset Regulations''). Guidance on methodological 
or analytical issues relevant to the Department's conduct of sunset 
reviews is set forth in the Department's Policy Bulletin 98:3--Policies 
Regarding the Conduct of Five-year (``Sunset'') Reviews of Antidumping 
and Countervailing Duty Orders; Policy Bulletin, 63 FR 18871 (April 16, 
1998) (``Sunset Policy Bulletin'').

Scope

    The merchandise subject to this antidumping order is greige 
polyester cotton printcloth, other than 80 x 80 type. Greige polyester 
cotton printcloth is of chief weight cotton,1 unbleached and 
uncolored printcloth. The term ``printcloth'' refers to plain woven 
fabric, not napped, not fancy or figured,

[[Page 13400]]

of singles yarn, not combed, of average yarn number 43 to 
68,2 weighing not more than 6 ounces per square yard, of a 
total count of more than 85 yarns per square inch, of which the total 
count of the warp yarns per inch and the total count of the filling 
yarns per inch are each less than 62 percent of the total count of the 
warp and filling yarns per square inch. This merchandise is currently 
classifiable under Harmonized Tariff Schedule (HTSUS) item 
5210.11.6060. The HTSUS item numbers are provided for convenience and 
U.S. Customs purposes. The written description remains dispositive.
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    \1\ In the scope from the original investigation, the Department 
defined the subject merchandise by chief value (i.e., the subject 
merchandise was of chief value cotton). For the purposes of this 
review, we have incorporated Custom's conversion to chief weight 
(i.e., the subject merchandise is of chief weight cotton). See 
Memorandum, RE: Greige Polyester Cotton Printcloth--Scope, February 
25, 1999.
    \2\ Under the English system, this average yarn number count 
translates to 26 to 40. The average yarn number counts reported in 
previous scope descriptions by the Department are based on the 
English system of yarn number counts. Per phone conversations with 
U.S. Customs officials, the Customs Service now relies on the metric 
system to establish average yarn number counts. Thus, the 26 to 40 
average yarn number count under the English system translates to a 
43 to 68 average yarn number count under the metric system. See 
Memorandum, RE: Greige Polyester Cotton Printcloth--Scope, February 
19, 1999.
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    This review covers imports from all manufacturers and exporters of 
Chinese printcloth.

Background

    On November 2, 1998, the Department initiated a sunset review of 
the antidumping order on greige polyester cotton printcloth from The 
People's Republic of China (63 FR 58709), pursuant to section 751(c) of 
the Act. The Department received a Notice of Intent to Participate on 
behalf of the American Textile Manufacturers Institute (``ATMI'') and 
its member companies on November 16, 1998,3 within the 
deadline specified in section 351.218(d)(1)(i) of the Sunset 
Regulations. The member companies of ATMI claimed interested party 
status under 19 U.S.C. 1677(9)(C) as U.S. producers of greige polyester 
cotton printcloth. In addition, ATMI indicated that the following 
member companies were the original petitioners in this case: CMI 
Industries, Inc., Alice Manufacturing Co., Mayfair Mills, Inc., 
Greenwood Mills, Inc., and Mount Vernon Mills, Inc. We received a 
complete substantive response from ATMI on December 2, 1998, within the 
30-day deadline specified in the Sunset Regulations under section 
351.218(d)(3)(i). We did not receive a substantive response from any 
respondent interested party to this proceeding. As a result, pursuant 
to 19 CFR 351.218(e)(1)(ii)(C), the Department determined to conduct an 
expedited, 120-day review of this order.
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    \3\ CMI Industries, Inc. (formerly Clinton Mills, Inc.), Alice 
Manufacturing Co., Mayfair Mills, Inc., Greenwood Mills, Inc., Inman 
Mills, Inc., Spartan Mills, Inc., and Mount Vernon Mills, Inc.
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Determination

    In accordance with section 751(c)(1) of the Act, the Department 
conducted this review to determine whether revocation of the 
antidumping order would be likely to lead to continuation or recurrence 
of dumping. Section 752(c) of the Act provides that, in making this 
determination, the Department shall consider the weighted-average 
dumping margins determined in the investigation and subsequent reviews 
and the volume of imports of the subject merchandise for the period 
before and the period after the issuance of the antidumping order, and 
shall provide to the International Trade Commission (``the 
Commission'') the magnitude of the margin of dumping likely to prevail 
if the order is revoked.
    The Department's determinations concerning continuation or 
recurrence of dumping and the magnitude of the margin are discussed 
below. In addition, parties' comments with respect to continuation or 
recurrence of dumping and the magnitude of the margin are addressed 
within the respective sections below.

Continuation or Recurrence of Dumping

    Drawing on the guidance provided in the legislative history 
accompanying the Uruguay Round Agreements Act (``URAA''), specifically 
the Statement of Administrative Action (``the SAA''), H.R. Doc. No. 
103-316, vol. 1 (1994), the House Report, H.R. Rep. No. 103-826, pt. 1 
(1994), and the Senate Report, S. Rep. No. 103-412 (1994), the 
Department issued its Sunset Policy Bulletin providing guidance on 
methodological and analytical issues, including the bases for 
likelihood determinations. In its Sunset Policy Bulletin, the 
Department indicated that determinations of likelihood will be made on 
an order-wide basis (see section II.A.3). In addition, the Department 
indicated that normally it will determine that revocation of an 
antidumping order is likely to lead to continuation or recurrence of 
dumping where (a) dumping continued at any level above de minimis after 
the issuance of the order, (b) imports of the subject merchandise 
ceased after the issuance of the order, or (c) dumping was eliminated 
after the issuance of the order and import volumes for the subject 
merchandise declined significantly (see section II.A.3).
    In addition to guidance on likelihood provided in the Sunset Policy 
Bulletin and legislative history, section 751(c)(4)(B) of the Act 
provides that the Department shall determine that revocation of an 
order is likely to lead to continuation or recurrence of dumping where 
a respondent interested party waives its participation in the sunset 
review. In the instant review, the Department did not receive a 
response from any interested party. Pursuant to section 
351.218(d)(2)(iii) of the Sunset Regulations, this constitutes a waiver 
of participation.
    The antidumping duty order on greige polyester cotton printcloth 
from the People's Republic of China was published in the Federal 
Register on September 16, 1983 (48 FR 41614). Since this time, the 
Department has conducted three administrative reviews.4 The 
order remains in effect for all manufacturers and exporters of the 
subject merchandise.
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    \4\ See Greige Polyester cotton Printcloth From the People's 
Republic of China; Final Results of Administrative Review of 
Antidumping Order; 50 FR 5805, February 12, 1985; Greige Polyester 
cotton Printcloth From the People's Republic of China; Final Results 
of Administrative Review of Antidumping Order; 57 FR 1254, January 
13, 1992; and Greige Polyester cotton Printcloth From the People's 
Republic of China; Final Results of Administrative Review of 
Antidumping Order; 57 FR 31353, July 15, 1992.
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    In its substantive response, ATMI argues that the Department should 
determine that there is a likelihood that dumping would recur if the 
order were revoked because a dumping margin above a de minimis level 
has been in place since the imposition of the order, and dumping of 
subject merchandise has continued since the issuance of the order.
    ATMI notes that a dumping margin of 22.4 percent has existed 
throughout the life of the order (see December 2, 1998 Substantive 
Response of ATMI at 5-7). Furthermore, ATMI argues that, although the 
Department has not conducted a review since the 1988/89 administrative 
review (57 FR 31353, July 15, 1992), the existence of imports since 
that time, and the fact that a 22.4 percent deposit rate has been 
continuously in effect for all imports of the subject merchandise, 
suggests that imports of greige polyester cotton printcloth must have 
been exported to the United States at prices below cost since 1990.
    In making its decision, the Department considered the existence of 
dumping margins and the volume of imports before and after the issuance 
of the order. As discussed in section II.A.3 of the Sunset Policy 
Bulletin, the SAA at 890, and the House Report at 63-64, if companies 
continue dumping with the discipline of an order in place, the 
Department may reasonably infer that dumping would continue if the

[[Page 13401]]

discipline were removed. In the instant proceeding, a dumping margin 
above a de minimis level continues to exist for shipments of the 
subject merchandise from all Chinese producers/exporters.5
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    \5\ See Greige Polyester cotton Printcloth From the People's 
Republic of China; Final Results of Administrative Review of 
Antidumping Order; 57 FR 31353, July 15, 1992.
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    The Department also considered the volume of imports before and 
after issuance of the order, consistent with section 752(c) of the Act. 
The Department examined U.S. Census Bureau IM146 reports and data from 
our original investigation and subsequent administrative reviews and 
finds that imports of the subject merchandise have existed throughout 
most of the life of the order.6
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    \6\ From the Department's original investigation and its 
subsequent administrative reviews, the Department can confirm that 
shipments of the subject merchandise occurred in 1982, the year 
prior to the imposition of the order, and 1983, the year of the 
issuance of the antidumping duty order.
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    For the period from 1984 through 1987, the Department can, as noted 
in Griege Polyester Cotton Printcloth: Final Results of Antidumping 
Duty Administrative Review and Determination Not to Revoke, 57 FR 1254 
(January 13, 1992), confirm two shipments of subject merchandise to the 
United States. From 1988 through 1989, the Department knows of no 
shipments of the subject merchandise to the United States. Lastly, U.S. 
Census Bureau IM146 reports show annual imports of merchandise within 
the covered HTSUS item number have existed almost continuously from 
1990 through 1998.
    Upon consideration of the argument and evidence on the record, the 
Department determines that the existence of dumping margins after the 
issuance of the order is highly probative of the likelihood of 
continuation or recurrence of dumping. Specifically, a deposit rate 
above a de minimis level continues in effect for exports of the subject 
merchandise by all known Chinese manufacturers/exporters. Given that 
dumping has continued over the life of the order, respondent interested 
parties waived participation in the sunset review, and absent argument 
and evidence to the contrary, the Department determines that dumping is 
likely to continue if the order were revoked.

Magnitude of the Margin

    In the Sunset Policy Bulletin, the Department stated that it will 
normally provide to the Commission the margin that was determined in 
the final determination in the original investigation. Further, for 
companies not specifically investigated or for companies that did not 
begin shipping until after the order was issued, the Department 
normally will provide a margin based on the ``all others'' rate from 
the investigation. (See section II.B.1 of the Sunset Policy Bulletin.) 
Exceptions to this policy include the use of a more recently calculated 
margin, where appropriate, and consideration of duty absorption 
determinations. (See sections II.B.2 and 3 of the Sunset Policy 
Bulletin.)
    The Department, in its final determination of sales at less than 
fair value, published a weighted-average dumping margin for all imports 
of greige polyester cotton printcloth from the People's Republic of 
China (48 FR 34312, July 28, 1983). We note that, to date, the 
Department has not issued any duty absorption findings in this case.
    In its substantive response, ATMI, citing the Sunset Policy 
Bulletin, argues that the Department should report to the Commission 
the weighted-averaged dumping margin from the original investigation 
for China National Textiles Import and Export Corporation 
(``Chinatex''). Chinatex was the only producer/exporter of the subject 
merchandise identified in the original investigation. Quoting the 
Sunset Policy Bulletin, ATMI argues that the Department should report 
this margin to the Commission as it is ``* * * the only calculated rate 
that reflects the behavior of exporters * * * without the discipline of 
an order or suspension agreement in place''.
    The Department agrees with ATMI's argument concerning the choice of 
the margin rate to report to the Commission. In the original 
investigation, the Department calculated a country-wide weighted-
averaged margin for all companies, including Chinatex. Therefore, the 
Department finds that the country-wide weighted-averaged margin 
calculated in the original investigation is probative of how Chinese 
producers and exporters of greige polyester cotton printcloth would act 
if the order were revoked. As such, the Department will report to the 
Commission as the dumping margin for all companies, the country-wide 
rate from the original investigation as contained in the Final Results 
of Review section of this notice.

Final Results of Review

    As a result of this review, the Department finds that revocation of 
the antidumping duty order would likely lead to continuation or 
recurrence of dumping at the margin listed below:

------------------------------------------------------------------------
                                                                 Margin
                    Manufacturer/exporter                      (percent)
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All Chinese Manufacturers/Exporters..........................       22.4
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    This notice serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305 of the Department's regulations. 
Timely 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.
    This five-year (``sunset'') review and notice are in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: March 11, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-6536 Filed 3-17-99; 8:45 am]
BILLING CODE 3510-DS-P