[Federal Register Volume 67, Number 26 (Thursday, February 7, 2002)]
[Notices]
[Pages 5786-5788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2990]



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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-803]


Notice of Preliminary Results and Partial Rescission of 
Antidumping Duty Administrative Review: Extruded Rubber Thread From 
Indonesia

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

ACTION: Notice of preliminary results and partial rescission of 
antidumping administrative review.

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SUMMARY: In response to a request by the petitioner and one producer/
exporter of the subject merchandise, the Department of Commerce (the 
Department) is conducting an administrative review of the antidumping 
duty order on extruded rubber thread (rubber thread) from Indonesia for 
the period May 1, 2000 through April 30, 2001 (hereafter referred as 
the period of review).
    We preliminary determine that during the period of review (POR), 
P.T. Swasthi Parama Mulya (Swasthi) did not make sales of the subject 
merchandise at less than normal value. If these preliminary results are 
adopted in our final results of this administrative review, we will 
instruct the U.S. Customs Service to liquidate entries of subject 
merchandise by these companies without regard to antidumping duties.
    Interested parties are invited to comment on these preliminary 
results. Parties who submit comments in this proceeding should also 
submit with them: (1) A statement of the issues; (2) a brief summary of 
their comments; and (3) a table of authorities. Further, parties 
submitting written comments, should provide the Department with an 
additional electronic copy of the public version of any such comments 
on a 3.5" floppy diskette.

EFFECTIVE DATE: February 7, 2002.

FOR FURTHER INFORMATION CONTACT: James Terpstra or Lyman Armstrong, AD/
CVD Enforcement, Office 6, Group II, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
(202) 482-3965 or (202) 482-3601, 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 Department regulations refer to the 
regulations codified at 19 CFR part 351 (2001).

Case History

    On May 21, 1999, the Department published in the Federal Register 
the antidumping duty order on rubber thread from Indonesia (64 FR 
27755). On May 1, 2001, we published in the Federal Register the notice 
of ``Opportunity to Request an Administrative Review'' of this order, 
for the period May 1, 2000, through April 30, 2001 (66 FR 21740).
    On May 31, 2001, we received a request to review the antidumping 
duty order with respect to Swasthi from North American Rubber Thread, 
the petitioner in this case, in accordance with 19 CFR 351.213(b)(1). 
On May 31, 2001, we also received a request to review the antidumping 
order from Filati Lastex Sdn. Bhd. (Filati), an exporter/producer of 
rubber thread, in accordance with 19 CFR 351.213(b)(2). On June 19, 
2001, we published the notice of initiation of this antidumping duty 
administrative review of Filati and Swasthi covering the period May 1, 
2000, through April 30, 2001. See Notice of Initiation, 66 FR 32934 
(June 19, 2001).
    On July 23, 2001, we sent the antidumping duty questionnaires to 
Filati and Swashti.
    On August 17, 2001, Filati withdrew its request for review. Thus, 
we are rescinding the review of Filati, because Filati withdrew its 
request and there were no additional requests for a review of Filati 
from any other interested party. See the Partial Rescission section 
below.
    For Swasthi, the Department disregarded sales that failed the cost 
test during the most recently completed segment of the proceeding in 
which Swasthi participated. See Notice of Amended Final Determination 
of Sales at Less Than Fair Value and Antidumping Duty Order: Extruded 
Rubber Thread From Indonesia, 64 FR 27755 (May 21, 1999). Therefore, 
pursuant to section 773(b)(2)(A)(ii) of the Act, we had reasonable 
grounds to believe or suspect that Swasthi sales of the foreign like 
product were made at prices below the cost of production (COP). 
Therefore, we initiated a cost investigation at the time we initiated 
an antidumping review.
    Swasthi submitted its section A through D questionnaire response on 
September 21, 2001.
    The Department issued a supplemental section A through D 
questionnaire to Swasthi on November 9, 2001. Swasthi submitted its 
response to our supplemental questionnaire on December 11, 2001. The 
Department issued a second supplemental section A through D 
questionnaire to Swasthi on December 27, 2001. We received Swasthi's 
response to our second supplemental questionnaire on January 14, 2002.

Partial Rescission of Antidumping Duty Administrative Review

    On August 17, 2001, Filati withdrew its request for a review. 
Because there were no other request for review for Filati, and because 
Filati's letter withdrawing its request was timely filed, we are 
rescinding the review with respect to Filati in accordance with 19 CFR 
351.213(d)(1).

Scope of Review

    For purposes of this review, the product covered is extruded rubber 
thread (ERT) from Indonesia. ERT is defined as vulcanized rubber thread 
obtained by extrusion of stable or concentrated natural rubber latex of 
any cross sectional shape, measuring from 0.18 mm, which is 0.007 
inches or 140 gauge, to 1.42 mm, which 0.056 inch or 18 gauge, in 
diameter.
    ERT is currently classified under subheading 4007.00.00 of the 
Harmonized Tariff Schedule (HTS). Although the HTS subheading is 
provided for convenience and customs purposes, the written description 
of the scope of this review is dispositive.

Comparisons to Normal Value

    To determine whether sales of extruded rubber thread from Indonesia 
to the United States were made at less than normal value (NV), we 
compared the export price (EP) to (EP) to the NV for Swasthi, as 
specified in the Export Price and Normal Value sections of this notice, 
below.
    When making comparisons in accordance with section 771(16) of the 
Act, we considered all products sold in the home market as described in 
the Scope of Review section of this notice, above, that were in the 
ordinary course of trade for purposes of determining appropriate 
product comparisons to U.S. sales. In accordance with section 771(16) 
of the Act, the Department first attempted to match contemporaneous 
sales of products sold in the U.S. and the home market that were 
identical with respect to the following characteristics: (1) Size; (2) 
finish; (3) color; (4) special qualities (5) uniformity; (6) 
elongation; (7) tensile strength; and (8) modulus. Where there were no 
sales of identical merchandise

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in the home market made in the ordinary course of trade (i.e., sales 
within the contemporaneous window which passed the cost test), we 
compared U.S. sales to sales of the most similar foreign like product 
made in the ordinary course of trade, or constructed value (CV), as 
appropriate.

Export Price

    For the price to the United States, we used EP in accordance with 
section 772(a) of the Act because the merchandise was sold by the 
producer or exporter outside the United States to the first 
unaffiliated purchaser in the United States prior to importation and 
constructed export price was not otherwise warranted based on the facts 
on the record. We based EP on the packed delivered prices to the first 
unaffiliated customer in the United States. Where appropriate, we 
reduced these prices to reflect discounts and rebates. We also added 
interest revenue.
    In accordance with section 772(c)(2) of the Act, we made 
deductions, where appropriate, for movement expenses including inland 
freight from plant or warehouse to port of exportation, insurance, 
foreign brokerage handling and fumigation charges, and international 
freight.

Normal Value

A. Selection of Comparison Markets

    In order to determine whether there was a sufficient volume of 
sales in the home market to serve as a viable basis for calculating NV, 
we compared the respondent's volume of home market sales of the foreign 
like product to the volume of its U.S. sales of the subject 
merchandise. Pursuant to section 773(a)(1)(B) of the Act, because the 
respondent's aggregate volume of home market sales of the foreign like 
product was greater than five percent of its aggregate volume of U.S. 
sales of the subject merchandise, we determined that the home market 
was viable for the producer.

B. Cost of Production Analysis

1. Calculation of Cost of Production
    Before making any comparisons to NV, we conducted a COP analysis, 
pursuant to section 733(b) of the Act, to determine whether the 
respondent's home market sales were made below the COP. We calculated 
the COP based on the sum of the cost of materials and fabrication for 
the foreign like product, plus amounts for selling, general, and 
administrative expenses (SG&A), and packing, in accordance with section 
773(b)(3) of the Act. We relied on the respondent's information as 
submitted. See Swasthi's Preliminary Calculation Memorandum (January 
31, 2002) on file in the Central Records Unit (CRU), for a description 
of any changes that we made.
2. Test of Comparison Market Prices
    As required under section 773(b) of the Act, for Swasthi, we 
compared the weighted-average COP to the weighted-average per unit 
price of the home market sales of the foreign like product, to 
determine whether their respective sales had been made at prices below 
the COP within an extended period of time in substantial quantities. 
For Swasthi, we determined the net home market prices for the below-
cost test by subtracting from the gross unit price any applicable 
movement charges, direct and indirect selling expenses, and packing 
expenses.
3. Results of COP Test
    Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
percent of sales of a given product were at prices less than the COP, 
we did not disregard any below-cost sales of that product because we 
determined that the below-cost sales were not made in ``substantial 
quantities.'' Where 20 percent or more of Swasthi's sales of a given 
product during the twelve-month period were at prices less than the 
COP, in accordance with section 773(b)(2)(B) and (C) of the Act, we 
determined such sales to have been made in ``substantial quantities'' 
within an extended period of time. In such cases, because we compared 
prices to POR-average costs, we also determined that such sales were 
not made at prices which would permit recovery of all costs within a 
reasonable period of time, in accordance with section 773(b)(2)(D) of 
the Act. Therefore, for purposes of this administrative review, for 
Swasthi we disregarded the below-cost sales and used the remaining 
sales as the basis for determining NV, in accordance with section 
773(b)(1)(B) of the Act.

C. Calculation of Normal Value Based on Comparison Market Prices

    We calculated NV based on delivered prices to home market 
customers. We made deductions from the starting price for inland 
freight and inland insurance. In accordance with sections 773(a)(6)(A) 
and (B) of the Act, we deducted home market packaging costs and added 
U.S. packing costs.
    When comparing U.S. sales with home market sales of similar, but 
not identical, merchandise, we also made adjustments for physical 
differences in the merchandise in accordance with section 
773(a)(6)(C)(ii) of the Act. Pursuant to section 351.411 of the 
Department's regulations, we based this adjustment on the difference in 
the variable cost of manufacturing (VCOM) for the foreign like product 
and subject merchandise, using twelve-month average costs for each 
month of the twelve-month period, as described in the Cost of 
Production Analysis section above.

D. Level of Trade

    In accordance with section 773(a)(1)(B) of the Act, we determined 
NV based on sales in the home market at the same level of trade (LOT) 
as the U.S. EP sales, to the extent practicable. When there were no 
sales at the same LOT, we compared U.S. sales to home market sales at a 
different LOT.
    Pursuant to section 351.412 of the Department's regulations, to 
determine whether home market sales were at a different LOT, we 
examined stages in the marketing process and selling functions along 
the chain of distribution between the producer and the affiliated (or 
arm's length) customers. If the home market sales were at a different 
LOT and the differences affected price comparability, as manifested in 
a pattern of consistent price differences between the sales on which NV 
is based and home market sales at the LOT of the export transaction, we 
made a LOT adjustment under section 773(a)(7)(A) of the Act.
    For Swasthi, there was only one home market LOT and one U.S. EP 
level of trade. The U.S. LOT differed from the home market LOT; however 
because there was only one LOT in the home market, we could not 
determine that there was a pattern of price differences between sales 
at different LOTs in the home market. See section 773(a)(7)(A)(ii) of 
the Act. Consequently, we have granted no LOT adjustment.
    For a detailed description of our LOT methodology and a summary of 
company-specific LOT findings for these preliminary results, see 
Swasthi's January 31, 2002, Preliminary Calculation Memorandum on file 
in the CRU.
Currency Conversion
    We made currency conversions into U.S. dollars based on the 
exchange rates in effect on the dates of the U.S. sales as certified by 
the Federal Reserve Bank, in accordance with section 773(A) of the Act.
Preliminary Results of Review
    As a result of our review, we preliminary determine that the 
following percentage weighted-average

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margin exists for the period May 1, 2000 through April 30, 2001:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
Swasthi....................................................         0.00
------------------------------------------------------------------------

    The Department will disclose the calculations performed within five 
days of the date of publication of this notice to the parties to this 
proceeding in accordance with 19 CFR 351.224(b). An interested party 
may request a hearing within 30 days of publication of these 
preliminary results. See 19 CFR 351.310(c). Any hearing, if requested, 
will be held 44 days after the date of publication, or the first 
working day thereafter. Interested parties may submit case briefs and/
or written comments no later than 30 days after the date of publication 
of these preliminary results of review. Rebuttal briefs and rebuttals 
to written comments, limited to issues raised in such briefs or 
comments, may be filed no later than 37 days after the date of 
publication. Parties who submit arguments are requested to submit with 
the argument (1) a statement of the issue, (2) a brief of summary of 
the argument and (3) a table of authorities. Further, we would 
appreciate it if parties submitting written comments would provide the 
Department with an additional copy of the public version of any such 
comments on diskette. The Department will issue the final results of 
this administrative review, which will include the results of its 
analysis of issues raised in any such comments, or at a hearing, if 
requested, within 120 days of publication of these preliminary results.
Assessments Rate
    Pursuant to 19 CFR 351.212(b), the Department calculated an 
assessment rate for each importer of the subject merchandise. Upon 
issuance of the final results of this administrative review, if any 
importer-specific assessment rates calculated in the final results are 
above de minimis (i.e., at or above 0.5 percent) the Department will 
issue appraisement instructions directly to the U.S. Customs Service to 
assess antidumping duties on appropriate entries by applying the 
assessment rate to the entered value of the merchandise reported by 
Swasthi. For assessment purposes, we calculated importer-specific 
assessment rates for the subject merchandise by aggregating the dumping 
margins for all U.S. sales to each importer and dividing the amount by 
the total entered value of the sales to that importer.
Cash Deposit Requirements
    To calculate the cash deposit rate for Swasthi, we divided the 
total dumping margins for Swasthi by the total net value of Swasthi's 
sales during the review period.
    The following deposit rates will be effective upon publication of 
the final results of this administrative review for all shipments of 
ERT from Indonesia entered, or withdrawn from warehouse, for 
consumption on or after the publication date, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rate for the company 
listed above will be the rate established in the final results of this 
review; (2) for previously reviewed or investigated companies, the cash 
deposit rate will continue to be the company-specific rate published 
for the most recent final results in which that manufacturer or 
exporter participated; (3) if the exporter is not a firm covered in 
this review, a prior review, or the original less-than-fair-value 
(LTFV) investigation, but the manufacturer is, the cash deposit rate 
will be the rate established for the most recent final results for the 
manufacturer of the merchandise; and (4) if neither the exporter nor 
the manufacturer is a firm covered in this or any previous review 
conducted by the Department, the cash deposit rate will be 24.00 
percent, the ``All Others'' rate established in the LTFV investigation. 
See Notice of Amended Final Determination of Sales at Less Than Fair 
Value and Antidumping Duty Order: Extruded Rubber Thread From 
Indonesia, 64 FR 27755 (May 21, 1999).
    These cash deposit requirements, when imposed, shall remain in 
effect until publication of the final results of the next 
administrative review.
Notification to Importers
    This notice serves as a preliminary reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during this review period. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    The administrative review is issued and published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: January 31, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-2990 Filed 2-6-02; 8:45 am]
BILLING CODE 3510-DS-M