[Federal Register Volume 64, Number 150 (Thursday, August 5, 1999)] [Notices] [Pages 42658-42660] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-20223] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE International Trade Administration [A-538-802] Final Results of Expedited Sunset Review: Cotton Shop Towels From Bangladesh AGENCY: Import Administration, International Trade Administration, Department of Commerce. ACTION: Notice of final results of expedited sunset review: cotton shop towels from Bangladesh. ----------------------------------------------------------------------- SUMMARY: On January 4, 1999, the Department of Commerce (``the Department'') initiated a sunset review of the antidumping duty order on cotton shop towels from Bangladesh (64 FR 364) 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 adequate substantive comments filed on behalf of a domestic interested party 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: August 5, 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 duty order is cotton shop towels from Bangladesh. 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 of the United States (HTSUS). Although the HTSUS subheadings are provided for convenience and customs purposes, our written description of the scope of this proceeding remains dispositive. This review covers imports from all manufacturers and exporters of shop towels from Bangladesh. [[Page 42659]] History of the Order: On February 3, 1992, the Department issued its final determination of sales at less than fair value in the investigation of cotton shop towels from Bangladesh (57 FR 3996). The Department published weighted average dumping margins of 42.31 percent for Eagle Star Textile Mills, Ltd., and 2.72 percent for Sonar Cotton Mills, Ltd. The Department also published a weighted average dumping margin of 4.60 percent for all other Bangladeshi manufacturers and/or exporters of the subject merchandise. The antidumping duty order on cotton shop towels from Bangladesh was published in the Federal Register on March 20, 1992 (57 FR 9688). Since that time, the Department has conducted four administrative reviews.1 We note that, to date, the Department has not issued any duty absorption findings in this case. The order remains in effect for all manufacturers and exporters of the subject merchandise. --------------------------------------------------------------------------- \1\ See Shop Towels of Cotton From Bangladesh; Final Results of Antidumping Duty Administrative Review, 62 FR 12600 (March 17, 1997); Shop Towels of Cotton From Bangladesh; Amendment to Final Results of Antidumping Duty Administrative Review, 62 FR 4253 (January 29, 1997); Shop Towels of Cotton From Bangladesh; Final Results of Antidumping Duty Administrative Review, 61 FR 55957 (October 30, 1996); Shop Towels of Cotton From Bangladesh; Final Results of Antidumping Duty Administrative Review, 61 FR 5377 (February 12, 1996); and Shop Towels of Cotton From Bangladesh; Final Results of Antidumping Duty Administrative Review, 60 FR 48966 (September 21, 1995). --------------------------------------------------------------------------- Background On January 4, 1999, the Department initiated a sunset review of the antidumping duty order on cotton shop towels from Bangladesh (64 FR 364), pursuant to section 751(c) of the Act. The Department received a Notice of Intent to Participate on behalf of Milliken & Company (``Milliken'') on January 19, 1999, within the deadline specified in Sec. 351.218(d)(1)(i) of the Sunset Regulations. We received a complete substantive response from Milliken on February 3, 1999, within the 30- day deadline specified in the Sunset Regulations under section 351.218(d)(3)(i). Milliken claimed interested party status under section 771(9)(C) of the Act, as a domestic producer of shop towels. In addition, Milliken stated that it was the petitioner in the original investigation. 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. The Department determined that the sunset review of the antidumping duty order on cotton shop towels from Bangladesh is extraordinarily complicated. In accordance with section 751(c)(5)(C)(v) of the Act, the Department may treat a review as extraordinarily complicated if it is a review of a transition order (i.e., an order in effect on January 1, 1995). (See section 751(c)(6)(C) of the Act.) Therefore, on May 3, 1999, the Department extended the time limit for completion of the final results of this review until not later than August 2, 1999, in accordance with section 751(c)(5)(B) of the Act.2 --------------------------------------------------------------------------- \2\ See Steel Wire Rope From Japan, Shop Towels From the People's Republic of China, Shop Towels From Bangladesh, Candles From the People's Republic of China, Steel Wire Rope From Mexico, Shop Towels From Pakistan, Steel Wire Rope From South Korea, Malleable Cast Iron Pipe Fittings From South Korea, Malleable Cast Iron Pipe Fittings From Taiwan, Malleable Cast Iron Pipe Fittings From Japan: Extension of Time Limit for Final Results of Five-Year Reviews, 64 FR 24573 (May 7, 1999). --------------------------------------------------------------------------- Determination In accordance with section 751(c)(1) of the Act, the Department conducted this review to determine whether revocation of the antidumping duty 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 duty order, and it 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, Milliken's 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.2). In addition, the Department indicated that normally it will determine that revocation of an antidumping duty 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 considering guidance on likelihood cited above, 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 respondent interested party. Pursuant to Sec. 351.218(d)(2)(iii) of the Sunset Regulations, this constitutes a waiver of participation. In its substantive response, Milliken argues that the history of the case and the actions taken by Bangladeshi producers and exporters of shop towels prior to and during the pendency of this proceeding demonstrate clearly that revocation likely would result in a recurrence of dumping shop towels in the United States. With respect to whether dumping continued after the issuance of the order, Milliken, citing the Department's final results of several administrative reviews, asserts that a number of manufacturers/exporters continued dumping above a de minimis level during the pendency of this proceeding. Further, Milliken argues that although certain manufacturers received zero or de minimis dumping margins in administrative reviews, these findings are due to the peculiarity of the Department's constructed value calculation. With respect to whether imports of the subject merchandise ceased after the issuance of the order, Milliken asserts that, faced with continuing antidumping duties, two known Bangladeshi producers, Sonar Cotton, Ltd. (``Sonar''), and Eagle Star Textile Mills, Ltd. (``Eagle Star''), ceased exporting to the United States since the issuance of the order (see February 3, 1999, Substantive Response of Milliken at 5, 6). [[Page 42660]] In conclusion, Milliken argues that the Department should determine that there is a likelihood that dumping would continue or recur were the order revoked because (1) dumping margins above de minimis levels continued after the issuance of the order and (2) imports of the subject merchandise ceased after the imposition of the order (for some companies). We agree with Milliken that dumping margins continued above de minimis levels after the issuance of the order. The Department, after examining the final results of the four administrative reviews, finds that dumping margins above de minimis levels continue for at least two of the six known Bangladeshi producers/exporters. 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 discipline were removed. The Department, utilizing U.S. Census Bureau IM146 Reports and U.S. Department of Commerce trade statistics, finds that imports of the subject merchandise have continued, and generally increased, over the life of the order. With respect to Milliken's assertion that imports from Sonar and Eagle Star have ceased, although the Department agrees that Eagle Star had no shipments during the 1993/1994 administrative review (61 FR 5377 (February 12, 1996)), the Department cannot conclude from the Federal Register notices of results of administrative reviews that Sonar ceased exporting or that there continue to be no shipments from these two companies. Based on this analysis, the Department finds that the existence of dumping margins after the issuance of the order is highly probative of the likelihood of continuation or recurrence of dumping. Deposit rates above de minimis levels continue in effect for exports of the subject merchandise by two of the six known Bangladeshi producers/exporters. Therefore, given that dumping has continued over the life of the order and respondent interested parties have waived their right to participate in this review before the Department, 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 weighted-average dumping margins for two producers/exporters of cotton shop towels from Bangladesh (57 FR 3996, February 3, 1992). The Department also published an ``all others'' rate in this determination. We note that, to date, the Department has not issued any duty absorption findings in this case. In its substantive response, Milliken, citing the Sunset Policy Bulletin, suggests that the Department report to the Commission the two company-specific margins and the ``all others'' rates established in the investigation because those are the only calculated rates that reflect the behavior of exporters without the discipline of the order in place. The Department agrees with Milliken. Absent argument and evidence to the contrary, the Department finds that the margins calculated in the original investigation are probative of the behavior of Bangladeshi producers/exporters if the order were revoked as they are the only margins which reflect their actions absent the discipline of the order. As such, the Department will report to the Commission the company- specific and all others rates 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 be likely to lead to continuation or recurrence of dumping at the margins listed below: ------------------------------------------------------------------------ Margin Manufacturer/exporter (percent) ------------------------------------------------------------------------ Eagle Star Textile Mills, Ltd.............................. 42.31 Sonar Cotton Mills, Ltd.................................... 2.72 All Others................................................. 4.60 ------------------------------------------------------------------------ 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: July 30, 1999. Joseph A. Spetrini, Acting Assistant Secretary for Import Administration. [FR Doc. 99-20223 Filed 8-4-99; 8:45 am] BILLING CODE 3510-DS-P