[Federal Register Volume 65, Number 62 (Thursday, March 30, 2000)]
[Notices]
[Pages 16880-16882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7926]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-839]


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

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 less than fair value of certain 
polyester staple fiber from the Republic of Korea. The investigation 
covers three 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 ``Continuation of Suspension of Liquidation.''

EFFECTIVE DATE: March 30, 2000.

FOR FURTHER INFORMATION CONTACT: Craig Matney, Suresh Maniam, or 
Blanche Ziv, Import Administration, International Trade Administration, 
U.S. Department of Commerce, Washington, DC 20230; telephone: (202) 
482-1778, 482-0176,or 482-4207, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (``the Act'') 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 1998).

Case History

    Since the preliminary determination of this investigation (see 64 
FR 60776 (November 8, 1999) (``Preliminary Determination'')), the 
following events have occurred:
    On November 2 and 5, 1999, we received responses, including a 
revised U.S. sales listing, to our October 15, 1999, supplemental 
questionnaire from Samyang Corporation (``Samyang''). We verified 
Samyang's questionnaire responses in November 1999.
    Geum Poong Corporation (``Geum Poong'') submitted a section B 
response covering sales to third countries on January 5, 2000. On 
January 11, 2000, we rejected Geum Poong's section B response on the 
grounds that it contained untimely filed new factual information. Also 
on January 11, 2000, the Department solicited additional information 
from respondent Geum Poong and petitioners E.I. DuPont de Nemours, 
Inc.; Arteva Specialities S.a.r.l.; d/b/a KoSa; Wellman, Inc.; and 
Intercontinental Polymers, Inc. (hereinafter collectively referred to 
as ``the petitioners'') regarding the appropriate methodology for 
calculating Geum Poong's constructed value profit ratio. The 
petitioners objected to our soliciting additional information regarding 
this subject on January 31, 2000. Geum Poong submitted information 
concerning the constructed value profit ratio on February 8, 2000.
    Verification of the responses submitted by Geum Poong and Sam Young 
Synthetics Co. (``Sam Young'') took place in January 2000 (see the 
``Verification'' section below). (We refer hereinafter to Samyang, Sam 
Young, and Geum Poong collectively as ``the respondents''.)
    On February 18, 2000, we received comments from petitioners 
objecting to the request of Gates Formed-Fiber Products, Inc., 
(``Gates'') a U.S. importer, to treat black automotive substrate 
(``BAS'') as a separate class or kind of merchandise. The petitioners, 
the respondents and Gates filed case briefs on February 22, 2000. On 
February 28, 2000, petitioners and respondents filed rebuttal briefs. 
At the request of interested parties, the Department held a public 
hearing on March 2, 2000.

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, memorandum from Susan H. Kuhbach, Acting Deputy 
Assistant Secretary, Import Administration, to Richard W. Moreland, 
Acting Assistant Secretary for Import Administration, (``Decision 
Memorandum''), Comments

[[Page 16881]]

4 and 5, which is on file in the Central Records Unit 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.

Critical Circumstances

    In the Preliminary Determination, we found that critical 
circumstances within the meaning of section 773(e)(1) of the Act 
existed for each of the respondents because (1) there was a history of 
dumping and material injury, and (2) each of the respondents had more 
than a 15 percent increase in imports during the three-month period 
following the filing of the petition (as compared to the three-month 
period prior to the filing of the petition). We also preliminarily 
determined that critical circumstances did not exist for ``all other'' 
exporters.
    At verification, we examined each company's monthly shipment data 
for November 1998 through August 1999. Based on a comparison of the 
five-month periods before and after the filing of the petition, we 
determine that imports have not been massive over a relatively short 
period for any respondent or for companies subject to the all other 
rate. Accordingly, we have reversed our preliminary finding of critical 
circumstances with regard to Samyang, Sam Young, and Geum Poong, and 
affirmed our negative preliminary finding for all other exporters. (See 
Decision Memorandum, Comment 1.)

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:
    For the final determination we have determined that it is 
appropriate to include grade as a matching criterion for Sam Young.

Date of Sale

    For the final determination, we have concluded that invoice date is 
the appropriate date of sale for Sam Young and Geum Poong. (See 
Decision Memorandum, Comment 2.)

Fair Value Comparisons

    To determine whether sales of PSF from Korea 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 B-099.

1. 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.

2. Normal Value

    We used the same methodology to calculate NV as that described in 
the Preliminary Determination, with the following exceptions:
(a) Cost of Production Analysis
    As noted in the Preliminary Determination, the Department has 
investigated whether Samyang's and Sam Young's sales of PSF in their 
respective comparison markets were made at prices below the cost of 
production (``COP'') during the POI. In accordance with section 
773(b)(3) of the Act, we calculated the weighted-average COP for 
Samyang and Sam Young, by control number, based on the sum of each 
company's cost of materials, fabrication, general expenses, and packing 
costs. We have made the following changes to the COP calculations since 
the preliminary determination:
    We have found that Sam Young's fiscal year 1998 COP provides a more 
accurate measure of its production costs than its POI-based COP. 
Therefore, we have calculated Sam Young's COP based on its fiscal year 
data. (See Decision Memorandum, Comment 13.)
(b) 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.
(c) Calculation of NV Based on Constructed Value
    Section 773(a)(4) of the Act provides that where NV cannot be based 
on comparison market sales, NV may be based on the constructed value 
(``CV''). Accordingly, for Samyang and Sam Young, where we could not 
determine the NV based on comparison market sales, either because (1) 
there were no sales of a comparable product or (2) all sales of 
comparison products failed the COP test, we based NV on the CV. In 
addition, for Geum Poong, which did not have a viable comparison 
market, we based NV on CV.
    We calculated CV as in the Preliminary Determination, with the 
following exceptions:
    For Geum Poong, we have changed our methodology for calculating CV 
profit. (See Decision Memorandum, Comment 15.)

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 B-099. In addition, a complete version 
of the Decision Memorandum can be accessed directly on the Web at: 
http://www.ita.doc.gov/import_admin/records/frn/. The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(A) of the Act, we are 
directing the U.S. Customs Service (``Customs'') to continue to suspend 
liquidation of all imports of the subject merchandise from Korea, 
except for subject merchandise produced and exported by Samyang (which 
has a de minimis weighted-average margin), that are entered, or 
withdrawn from warehouse, for

[[Page 16882]]

consumption on or after November 8, 1999, the date of publication of 
the Preliminary Determination in the Federal Register. We will instruct 
Customs to refund all bonds and cash deposits posted on subject 
merchandise exported by Samyang. In addition, consistent with our 
reversal of our preliminary determination of critical circumstances, we 
will instruct Customs to refund all bonds and cash deposits posted on 
subject merchandise exported by Sam Young and Geum Poong that was 
entered, or withdrawn from warehouse, for consumption prior to November 
8, 1999.
    Customs shall continue to 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
       Exporter/manufacturer           margin     Critical circumstances
                                     percentage
------------------------------------------------------------------------
Samyang Corporation...............       1 0.14  No.
Sam Young Synthetics Co...........         7.96  No.
Geum Poong Corporation............        14.10  No.
All Others........................        11.38  No.
------------------------------------------------------------------------
1 (de minimis).

    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 
Samyang 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

List of Comments and Issues in the Decision Memorandum

I. General Issues

Comment 1: Critical circumstances
Comment 2: Date of sale methodology
Comment 3: Quarterly averaging periods
Comment 4: Regenerated PSF
Comment 5: Black automotive substrate

II. Issues Specific to Samyang Corporation

Comment 6: Major input value
Comment 7: Home market price changes
Comment 8: G&A and interest expense ratios
Comment 9: ``P'' channel sales
Comment 10: Coding of home market products
Comment 11: Duty drawback

III. Issues Specific to Sam Young Synthetics Co., Ltd.

Comment 12: Duty drawback
Comment 13: Cost of manufacture
Comment 14: Adjustment to production quantities

IV. Issues Specific to Geum Poong Corporation

Comment 15: Constructed value profit ratio
Comment 16: Duty drawback
Comment 17: G&A calculation

[FR Doc. 00-7926 Filed 3-29-00; 8:45 am]
BILLING CODE 3510-DS-P