[Federal Register Volume 65, Number 62 (Thursday, March 30, 2000)]
[Notices]
[Pages 16877-16880]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7925]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-833]


Notice of Final Determination of Sales at Less Than Fair Value: 
Certain Polyester Staple Fiber From Taiwan

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

SUMMARY: On November 8, 1999, the Department of Commerce published its 
preliminary determination of sales at not less than fair value of 
certain polyester staple fiber from Taiwan. The investigation covers 
two manufacturers/exporters. The period of investigation is April 1, 
1998, through March 31, 1999.
    Based on our analysis of the comments received, we have made 
changes in the margin calculations. Therefore, the final determination 
differs from the preliminary determination. The final weighted-average 
dumping margins for the investigated companies are listed below in the 
section entitled ``Suspension of Liquidation.''

EFFECTIVE DATE: March 30, 2000.

FOR FURTHER INFORMATION CONTACT: Cynthia Thirumalai or Gregory 
Campbell, Import Administration, International Trade Administration, 
U.S. Department of Commerce, Washington, DC 20230; telephone: (202) 
482-4087 or 482-2239, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to provisions of the Tariff Act of 1930 (``the Act'') as 
amended by the Uruguay Round Agreements Act (``URAA''). In addition, 
unless otherwise indicated, all citations to the Department of 
Commerce's (``the Department's'') regulations refer to the regulations 
codified at 19 CFR Part 351 (April 1999).

Case History

    Since the preliminary determination of this investigation (see 64 
FR 60771 (November 8, 1999) (``Preliminary Determination'')), the 
following events have occurred:
    In December 1999, we received supplemental section D responses from 
the respondents, Far Eastern Textiles, Ltd. (FETL) and Nan Ya Plastics 
Corporation (Nan Ya). On January 6, 2000, we received revised U.S. and 
home market listings from FETL. Subsequently, in February FETL and Nan 
Ya submitted revised cost of production and constructed value 
databases.
    Verification of the responses to the sales and cost questionnaires 
took place in January 2000 (see the ``Verification'' section below).
    The petitioners \1\ and the respondents filed case briefs on 
February 24, 2000. On February 29, 2000, the petitioners and both 
respondents filed rebuttal briefs. At the request of interested 
parties, the Department held a public hearing on March 10, 2000.
---------------------------------------------------------------------------

    \1\ Arteva Specialties S.a.r.l.,d/b/a KoSa; Wellman, Inc; and 
Intercontinental Polymers, Inc.
---------------------------------------------------------------------------

Scope of Investigation

    For the purposes of this investigation, the product covered is 
certain polyester staple fiber (``PSF''). Certain polyester staple 
fiber is defined as synthetic staple fibers, not carded, combed or 
otherwise processed for spinning, of polyesters measuring 3.3 decitex 
(3 denier, inclusive) or more in diameter. This merchandise is cut to 
lengths varying from one inch (25 mm) to five inches (127 mm). The 
merchandise subject to this investigation may be coated, usually with a 
silicon or other finish, or not coated. PSF is generally used as 
stuffing in sleeping bags, mattresses, ski jackets, comforters, 
cushions, pillows, and furniture. Merchandise of less than 3.3 decitex 
(less than 3 denier) classified under the Harmonized Tariff Schedule of 
the United States (``HTSUS'') at subheading 5503.20.00.20 is 
specifically excluded from this investigation. Also specifically 
excluded from this investigation are polyester staple fibers of 10 to 
18 denier that are cut to lengths of 6 to 8 inches (fibers used in the 
manufacture of carpeting).
    The merchandise subject to this investigation is classified in the 
HTSUS at subheadings 5503.20.00.40 and 5503.20.00.60. Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the merchandise under investigation is 
dispositive.
    For a discussion of scope comments and determinations, see the 
March 22, 2000, Issues and Decision Memorandum for the Investigation of 
Certain Polyester Staple Fiber from the Republic of Korea from Susan 
Kuhbach, Acting Deputy Assistant Secretary, Import Administration, to 
Richard W. Moreland, Acting Assistant Secretary for Import 
Administration, Comments 4 and 5, which is on file in the Central 
Records Unit, Room B-099 of the main Department building (``B-099'') 
and on the Web at: www.ita.doc.gov/import__admin/records/frn.

Period of Investigation

    The period of investigation (``POI'') is April 1, 1998 through 
March 31, 1999. This period corresponds to each respondent's four most 
recent fiscal quarters prior to the filing of the petition.

Critical Circumstances

    No comments were received regarding the Department's preliminary 
critical circumstances determination, and the Department has not made 
any changes to that determination.\2\ As set forth in our preliminary 
determination, because imports from FETL and Nan Ya have not been 
``massive'' within the meaning of section 733(e)(1) of the Act, the 
Department continues to find, for the purposes of this final 
determination, that critical circumstances do not exist for imports of 
PSF from Taiwan.
---------------------------------------------------------------------------

    \2\ We note that there was a correction to Nan Ya's reported 
shipment data for one month. See Memorandum to the Case File from 
Cynthia Thirumalai and Gregory Campbell; Results of sales 
verification of Nan Ya Plastics Corporation (February 11, 2000) 
(``Nan Ya's Sales Verification Report''). However, this does not 
alter the preliminary critical circumstances finding.
---------------------------------------------------------------------------

Product Comparisons

    We compared the products sold by the respondents in the comparison 
market during the POI to the products sold in the United States during 
the POI using the methodology described in the Preliminary 
Determination, with the following exception:
    At the Preliminary Determination, we included product grade as a 
matching

[[Page 16878]]

criterion for Nan Ya because it specified grade in both the U.S. and 
comparison markets. Upon further consideration of information provided 
by FETL, we have determined that it is also appropriate to include 
grade as a matching criterion for FETL.

Fair Value Comparisons

    To determine whether sales of PSF from Taiwan to the United States 
were made at less than fair value, we compared the export price 
(``EP'') to comparison market prices or CV, as described in the 
``Export Price'' and ``Normal Value'' sections below. Our calculations 
followed the methodologies described in the Preliminary Determination, 
except as noted below and in the company-specific calculation memoranda 
dated March 22, 2000, which have been placed in the file in Room B-099.

Export Price

    For the price to the United States, we used EP as defined in 
section 772 of the Act. We calculated EP based on the same methodology 
described in the Preliminary Determination, with the following 
exceptions:

General Issues

    We corrected clerical errors in which we inadvertently double-
converted U.S. packing expenses and excluded U.S. credit expenses. See 
the March 22, 2000, Issues and Decision Memorandum for the 
Investigation of Certain Polyester Staple Fiber from Taiwan from Susan 
Kuhbach, Acting Deputy Assistant Secretary, Import Administration, to 
Richard W. Moreland, Acting Assistant Secretary for Import 
Administration (``Decision Memorandum''), comment 2, which is on file 
in B-099 and on the Web at: www.ita.doc.gov/import__admin/record/frn/.

FETL

    a. We excluded sales of infused antibacterial products from the 
U.S. sales database. See Decision Memorandum, comment 5.
    b. We adjusted the reported amounts for bank charges, ocean 
freight, domestic inland freight and brokerage expenses by the 
weighted-average percentage deviation between the reported amounts and 
the amounts actually incurred on transactions examined during 
verification. For those transactions examined at verification, we used 
the actual amounts for the above-referenced expenses. See Decision 
Memorandum, comment 6.
    c. Based on certain errors found at verification, we adjusted U.S. 
packing costs for all sales. See Memorandum to the Case File from 
Cynthia Thirumalai and Gregory Campbell; Results of sales verification 
of FETL (February 11, 2000) (``FETL's Sales Verification Report'').
    d. We made revisions to certain product codes correcting for errors 
identified by FETL in preparation for verification. See Decision 
Memorandum, comment 3.

Nan Ya

    a. We recalculated the date of sale for certain U.S. sales. See 
Decision Memorandum, comment 17, and Memorandum to Richard Moreland 
from Case Team; Errors in Nan Ya's Reported Dates of Sale (March 22, 
2000).
    b. We increased foreign inland freight expense by adding an amount 
for general and administrative (G&A) expenses. See Decision Memorandum, 
comment 19.
    c. We added an amount for foreign inland freight for two U.S. 
sales. See Decision Memorandum, comment 20.
    d. We added a commission amount to one U.S. sale. See Decision 
Memorandum, comment 25.
    e. We recalculated U.S. credit expense based on a revised short-
term interest rate. See Decision Memorandum, comment 26.
    f. Based on certain errors found at verification, we added bank 
fees to one observation that were originally unreported; we corrected 
the following expenses for certain U.S. sales: Domestic inland freight, 
ocean freight, bank charges, and brokerage. We excluded three sales 
from the U.S. database because they either were made outside the POI or 
were sample sales. See Nan Ya's Sales Verification Report.

Normal Value

    We used the same methodology to calculate NV as that described in 
the Preliminary Determination, with the following exceptions:

1. Cost of Production Analysis

General Issues
    We used grade to define separate products in the cost test. See 
Decision Memorandum, comment 2.
FETL
    a. We adjusted the G&A ratio applied to the cost of manufacture for 
purified terephthalic acid (PTA), a major input in the production of 
PSF, purchased from an affiliate to include certain unreported 
expenses. We then revised the cost of the PTA purchased from the 
affiliate to reflect the cost of production of this input in accordance 
with the major input rule. See Decision Memorandum, comment 10.
    b. We revised the cost of manufacture for ethylene glycol (EG), a 
major input in the production of PSF, purchased from an affiliate to 
include certain unreported expenses. We then revised the cost of the EG 
purchased from the affiliate to reflect the cost of production of this 
input in accordance with the major input rule. See Decision Memorandum, 
comment 11.
    c. We adjusted the total cost of manufacture for each product to 
account for the difference between the reported value and the book 
value of FETL's net scrap input costs. See Decision Memorandum, comment 
12.
    d. We revised the G&A ratio to include certain foreign exchange 
gains and losses and to exclude packing expenses from the denominator. 
See Decision Memorandum, comments 13 and 14.
    e. We revised the financial expense ratio to include certain 
exchange gains and losses. In addition, we applied the rate to the 
total cost of manufacture plus packing. See Decision Memorandum, 
comment 13 and comment 14.
Nan Ya
    a. We have made no adjustment to the reported credit for recovered 
EG. See Decision Memorandum, comment 28.
    b. We revised the G&A ratio to include certain foreign exchange 
gains and losses. We have excluded other operating costs from the 
denominator in the G&A ratio calculation and, instead, included these 
costs in the numerator of that calculation. In addition, we applied the 
G&A ratio to the total cost of manufacturing plus packing. See Decision 
Memorandum, comment 29, comment 32, and comment 34.
    c. We increased the cost of manufacture for silicon-coated products 
by applying the highest cost of silicon reported by FETL as adverse 
facts available. Moreover, we did not allow a difference in merchandise 
adjustment when a home market silicon coated product was matched to a 
non-silicon coated product. See Decision Memorandum, comment 31.
    d. We adjusted Nan Ya's financial expense ratio to include certain 
net foreign exchange gains and to exclude long-term interest income. In 
addition, we applied the financial expense ratio to the total cost of 
manufacturing plus packing. See Decision Memorandum, comment 33.
    e. We increased the total cost of manufacturing to include certain 
unreported production costs that were incurred by Nan Ya. See Decision 
Memorandum, comment 35.

[[Page 16879]]

    f. We adjusted Nan Ya's fiber scrap credit due to over-reporting. 
See Decision Memorandum, comment 38.
    g. We revised the cost of production for PTA to include (i) the 
quantity and costs from an unreported plant, (ii) certain overhead 
costs, and (iii) an amount for other expenses. See Decision Memorandum, 
comment 39.

2. Calculation of NV Based on Comparison Market Prices

    We performed price-to-price comparisons where there were sales of 
comparable merchandise in the comparison market that did not fail the 
cost test using the same methodology described in the Preliminary 
Determination, with the following exceptions:
FETL
    a. We excluded certain sales to an affiliate from the home market 
database. See Decision Memorandum, comment 7.
    b. Based on certain errors found at verification, we revised inland 
freight and credit days for certain home market sales. In addition, we 
revised the home market packing expenses for all home market sales. See 
FETL's Sales Verification Report.
    c. We made revisions to certain product codes correcting for errors 
identified by FETL in preparation for verification. See Decision 
Memorandum, comment 3.
Nan Ya
    We adjusted home market credit expense and inventory carrying costs 
due to a change in the short-term interest rate. (See Decision 
Memorandum, comment 27).

3. Calculation of NV Based on Constructed Value

    We calculated CV in the same way as in the Preliminary 
Determination, with the following exceptions:
FETL
    a. We made the changes identified in the ``Cost of production 
analysis'' section above.
    b. We revised FETL's U.S. indirect selling expenses to reflect 
changes made during verification. See FETL's Sales Verification Report.
Nan Ya
    We made the changes identified in the ``Cost of Production 
Analysis'' section above.

Level of Trade

    We have made the same level of trade determinations described in 
the Preliminary Determination.

Currency Conversions

    We made currency conversions in accordance with section 773A of the 
Act in the same manner as in the Preliminary Determination.

Verification

    As provided in section 782(i)(1) of the Act, we verified the 
information submitted by the respondents for use in our final 
determination. We used standard verification procedures, including 
examination of relevant accounting and production records, as well as 
original source documents provided by the respondents.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the March 22, 2000, Decision 
Memorandum, which is hereby adopted. A list of the issues which parties 
have raised and to which we have responded, all of which are in the 
Decision Memorandum, is attached to this notice as an appendix. Parties 
can find a complete discussion of all issues raised in this 
investigation and the corresponding recommendations in this public 
memorandum which is on file in Room B-099. In addition, a complete 
version of the Decision Memorandum can be accessed directly on the Web 
at: www.ita.doc.gov/import_admin/records/frn/. The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 735(c)(1)(A) of the Act, we are 
directing the U.S. Customs Service (``Customs'') to suspend liquidation 
of all imports of the subject merchandise from Taiwan, except for 
subject merchandise produced and exported by Nan Ya (which has a de 
minimis weighted-average margin), that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Customs shall require a cash deposit or 
the posting of a bond equal to the weighted-average amount by which the 
NV exceeds the EP as indicated in the chart below. These suspension of 
liquidation instructions will remain in effect until further notice.
    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                       Weighted-
                                        average           Critical
        Exporter/manufacturer            margin        circumstances
                                       percentage
------------------------------------------------------------------------
FETL................................         9.51  No.
Nan Ya..............................         0.00  No.
All others..........................         9.51  No.
------------------------------------------------------------------------

    The rate for all other producers and exporters applies to all 
entries of the subject merchandise except for entries from exporters 
that are identified individually above. In accordance with section 
735(c)(5)(A) of the Act, we have excluded the de minimis margin for Nan 
Ya from the calculation of the ``all others'' rate.

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our determination. As our 
final determination is affirmative, the ITC will, within 45 days, 
determine whether these imports are materially injuring, or threaten 
material injury to, the U.S. industry. If the ITC determines that 
material injury, or threat of material injury does not exist, the 
proceeding will be terminated and all securities posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: March 22, 2000.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.

APPENDIX

Appendix

List of Comments and Issues in the Decision Memorandum

I. Issues Applicable to Both Respondents

    Comment 1: Adverse Facts Available
    Comment 2: Errors in Computer Programing

II. Issues Specific to Far Eastern Textiles, Ltd.

A. General Issues
    Comment 3: Pre-verification Revisions and Minor Errors
    Comment 4: Product Coding
    Comment 5: Antibacterial and Flame-Retardant Products
B. Sales Issues
    Comment 6: Movement Expenses and Bank Charges on U.S. Sales
    Comment 7: Commissions
    Comment 8: Sales to Affiliate
    Comment 9: Verification of Surprise Sales
C. Cost of Production/Constructed Value Issues
    Comment 10: Major Inputs--PTA
    Comment 11: Major Inputs--EG
    Comment 12: Material Costs--Scrap Consumption

[[Page 16880]]

    Comment 13: Foreign Exchange Gains and Losses
    Comment 14: G&A Expenses

III. Issues Specific to Nan Ya Plastics Corporation

A. General Issues
    Comment 15: Mis-coding of Regenerated and Virgin Products
    Comment 16: Recoding of Sale
B. Sales Issues
    Comment 17: Exchange Rates
    Comment 18: Inland Freight--General Issues
    Comment 19: Inland Freight--Adjustment for Affiliated Expenses
    Comment 20: Inland Freight--Additional Freight to Factory
    Comment 21: Inland Freight--Affiliated Transactions at Arm's 
Length
    Comment 22: Indirect Selling Expenses
    Comment 23: Imputed Credit Expenses on Certain Sales to the 
United States
    Comment 24: Bank Charges
    Comment 25: Commission and Marine Insurance
    Comment 26: U.S. Short-Term Interest Rate
    Comment 27: Home Market Short-Term Interest Rate
C. Cost of Production/Constructed Value Issues
    Comment 28: Recovery of Inputs
    Comment 29: Exchange Gains
    Comment 30: Minor Verification Corrections
    Comment 31: Product-Specific Costs
    Comment 32: General and Administrative Cost
    Comment 33: Long-term Interest Income
    Comment 34: Packing Expenses
    Comment 35: Unreported Costs
    Comment 36: Revised Yields
    Comment 37: Positive Yields
    Comment 38: Scrap Credit
    Comment 39: Inputs from Affiliates

[FR Doc. 00-7925 Filed 3-29-00; 8:45 am]
BILLING CODE 3510-DS-P