[Federal Register Volume 67, Number 97 (Monday, May 20, 2002)]
[Notices]
[Pages 35474-35476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12575]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-837]


Notice of Final Determination of Sales at Less Than Fair Value: 
Polyethylene Terephthalate Film, Sheet, and Strip (PET Film) from 
Taiwan

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

EFFECTIVE DATE: May 20, 2002.

FOR FURTHER INFORMATION CONTACT: Ron Trentham or Tom Futtner at (202) 
482-6320 or (202) 482-3814 respectively, AD/CVD Enforcement, Office 4, 
Group II, Import Administration, Room 1870, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the Act), are references to the provisions effective 
January 1, 1995, the effective date of the amendments made to the Act 
by the Uruguay Round Agreements Act. In addition, unless otherwise 
indicated, all citations to Department of Commerce (the Department) 
regulations are to 19 CFR Part 351 (April 2001).

FINAL DETERMINATION:

    We determine that polyethylene terephthalate film, sheet, and strip 
(PET film) from Taiwan are being sold, or are likely to be sold, in the 
United States at less than fair value (LTFV), as provided in section 
735 of the Act. The estimated margin of sales at LTFV is shown in the 
Suspension of Liquidation section of this notice.

Case History

    On December 21, 2001, the Department published the preliminary 
determination of the antidumping duty investigation of PET film from 
Taiwan. See Notice of Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination, Polyethylene 
Terephthalate Film, Sheet, and Strip (PET Film) From Taiwan, 66 FR 
65889 (December 21, 2001) (Preliminary Determination). The

[[Page 35475]]

investigation covers two manufacturers/exporters, Nan Ya Plastics 
Corporation, Ltd. (Nan Ya), and Shinkong Synthetic Fibers Corporation 
(Shinkong). The petitioners in this investigation are Dupont Teijin 
Films, Mitsubishi Polyester Film of America, and Toray Plastics 
(America) (collectively, the petitioners).
    We conducted verification of the questionnaire responses of the 
respondents, Nan Ya during the weeks of January 28, 2002 and February 
8, 2002, and Shinkong during the weeks of February 25, 2002, and March 
4, 2002. We gave interested parties an opportunity to comment on our 
Preliminary Determination and our findings at verification. On April 8, 
2002, one respondent, Shinkong, and the petitioners, submitted case 
briefs. On April 12, 2002, Shinkong and the petitioners submitted 
rebuttal briefs. Nan Ya submitted its rebuttal brief on April 16, 2002. 
The Department received requests for a public hearing from both 
petitioners and Shinkong. A public hearing was held on April 17, 2002.
    The Department has conducted this investigation in accordance with 
section 731 of the Act.

Scope of Investigation

    For purposes of these investigations, the products covered are all 
gauges of raw, pretreated, or primed PET film, whether extruded or 
coextruded. Excluded are metallized films and other finished films that 
have had at least one of their surfaces modified by the application of 
a performance-enhancing resinous or inorganic layer of more than 
0.00001 inches thick. Imports of PET film are classifiable in the 
Harmonized Tariff Schedule of the United States (HTSUS) under item 
number 3920.62.00. HTSUS subheadings are provided for convenience and 
Customs purposes. The written description of the scope of this 
proceeding is dispositive.

Period of Investigation

    The period of investigation (POI) is April 1, 2000, through March 
31, 2001. This period corresponds to the four most recent fiscal 
quarters prior to the month of the filing of the petition (i.e., May 
2001).

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this proceeding and to which we have responded are listed in the 
Appendix to this notice and addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum), dated May 6, 2002, which is hereby 
adopted by this notice. Parties can find a complete discussion of the 
issues raised in this investigation and the corresponding 
recommendations in this public memorandum which is on file in the 
Central Records Unit, room B-099 (B-099) of the main Department 
building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the Web at http://ia.ita.doc.gov. The paper 
copy and electronic version of the Decision Memorandum are identical in 
content.

Changes Since the Preliminary Determination

    Based on our findings at verification, and analysis of comments 
received, we have made adjustments to the preliminary determination 
calculation methodologies in calculating the final dumping margins in 
this proceeding. These adjustments are discussed in detail in the 
Decision Memorandum and are listed below:
Nan Ya
    (1) We determined that Nan Ya is affiliated with two of its U.S. 
customers and that Nan Ya's sales through these customers should be 
treated as constructed export price sales. See Decision Memorandum at 
comment 4.
    (2) We recalculated home market inventory carrying costs to reflect 
changes from verification. See Calculation Memorandum of the Final 
Determination of the Investigation of Nan Ya Plastics Corporation, Ltd. 
( May 6, 2002)
    (3) We adjusted Nan Ya's reported per-unit cost to attribute a 
portion of the total cost difference and stop loss expenses 
attributable to PET film production. See Cost of Production and 
Constructed Value Calculation Adjustments Memorandum for the Final 
Determination (May 6, 2002).
    4) We increased Na Ya's reported per-unit conversion costs. Id.
Shinkong
    (1) We revised home market and U.S. indirect selling expenses to 
reflect changes from verification. SeeCalculation Memorandum of the 
Final Determination of the Investigation of Shinkong Synthetic Fibers 
Corporation (May 6, 2002) (Shinkong's Calculation Memorandum).
    (2) We recalculated home market credit expenses to reflect changes 
from verification. Id.
    (3) We recalculated home market inventory carrying costs to reflect 
changes from verification. Id.
    (4) We recalculated the general and administrative (G&A) expense 
ratio to reflect changes from verification. See Shinkong's Calculation 
Memo.
    (5) We recalculated the interest expense ratio to reflect changes 
from verification. Id.
    (6) We revised the total cost of manufacture (TOTCOM) to reflect 
changes from verification. See Issues and Decision Memorandum at 
comment 9. See also Shinkong's Calculation Memorandum.
    (7) We recalculated U.S. credit expenses to reflect changes from 
verification. See Shinkong's Calculation Memorandum.

Verification

    As provided in section 782(i) 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, and original 
source documents provided by the respondent.

Suspension of Liquidation

    Because Nan Ya received a de minimis weighted-average margin in the 
preliminary determination, but an above de minimis margin in the final 
determination, pursuant to section 735(c)(1)(B) of the Act, we are 
instructing the U.S. Customs Service (Customs) to suspend liquidation 
of all entries of subject merchandise from Nan Ya that are entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this final determination in the Federal Register. For 
Shinkong and all other companies, we are directing Customs to continue 
to suspend liquidation of entries of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after December 21, 
2001, the date of publication of the preliminary determination. We will 
instruct the Customs Service to require a cash deposit or the posting 
of a bond equal to the weighted-average amount by which the normal 
value exceeds the U.S. price, as indicated in the chart below. The 
suspension of liquidation instructions will remain in effect until 
further notice.

------------------------------------------------------------------------
                                                                Margin
                    Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
Nan Ya Plastics Corporation, Ltd............................        2.70
Shinkong Synthetic Fibers Corporation.......................        2.05
All Others..................................................        2.56
------------------------------------------------------------------------


[[Page 35476]]

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 determine, within 45 days, 
whether these imports are causing material injury, or threat of 
material injury, to an industry in the United States. If the ITC 
determines that material injury, or threat of 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 directing 
Customs officials to assess antidumping duties on all imports of the 
subject merchandise entered or withdrawn from warehouse for consumption 
on or after the effective date of the suspension of liquidation.
    This notice also serves as a 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. 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 determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: May 6, 2002
Joseph A. Spetrini,
Acting Assistant Secretaryfor Import Administration.

Appendix Issues in Decision Memorandum

Comments
1. Nan Ya's Yield Ratios
2. Nan Ya's PET Film Productivity
3. Nan Ya's Product-Specific Costs
4. Nan Ya's Relationship With U.S. Customers
5. Nan Ya's Recycled Packing Costs
6. Nan Ya's Sales Quantities
7. Shinkong's Home Market Sales Made to Port
8. Shinkong's Packing Costs
9. Shinkong's Certified Public Accountant (CPA) adjustments
[FR Doc. 02-12575 Filed 5-17-02; 8:45 am]
BILLING CODE 3510-DS-S