[Federal Register Volume 68, Number 54 (Thursday, March 20, 2003)]
[Notices]
[Pages 13672-13674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6732]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-703]


Granular Polytetrafluoroethylene Resin from Italy; Initiation and 
Preliminary Results of Antidumping Duty Changed Circumstances Review

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

ACTION: Notice of Initiation and Preliminary Results of Antidumping 
Duty Changed Circumstances Review.

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SUMMARY: In response to a request from Solvay Solexis SpA and Solvay 
Solexis, Inc., the Department of Commerce is initiating a changed 
circumstances review of the antidumping duty order on granular 
polytetrafluoroethylene resin from Italy (PTFE) (see Antidumping Duty 
Order; Granular Polytetrafluoroethylene Resin from Italy, 53 FR 33163 
(August 30, 1988)) and issuing this notice of preliminary results. We 
have preliminarily determined that Solvay Solexis is the successor-in-
interest to Ausimont SpA.

EFFECTIVE DATE: March 20, 2003.

FOR FURTHER INFORMATION CONTACT: Vicki Schepker, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone 
(202) 482-1756.

[[Page 13673]]


SUPPLEMENTARY INFORMATION: 

Background:

    On January 27, 2003, Solvay Solexis SpA and Solvay Solexis, Inc. 
(collectively, Solvay Solexis) requested that the Department of 
Commerce (the Department) initiate and conduct an expedited changed 
circumstances review, in accordance with section 351.216 and 
351.221(c)(3)(ii) (2003) of the Department's regulations, to confirm 
that Solvay Solexis is the successor-in-interest to Ausimont SpA and 
Ausimont USA, Inc. (collectively, Ausimont). In its request, Solvay 
Solexis stated that Solvay S.A. acquired the assets of Ausimont from 
its parent company, Montedison, on May 7, 2002. Furthermore, Solvay 
Solexis requested that Ausimont's cash deposit rate be applied to 
Solvay Solexis retroactive to January 1, 2003, the effective date of 
Ausimont's name change. Solvay Solexis also requested that the 
Department conduct an expedited changed circumstances review pursuant 
to section 351.221(c)(3)(ii).
    On February 10, 2003, Solvay Solexis, formerly Ausimont, submitted 
additional information and documentation regarding its purchase by the 
Solvay Group, an international chemical and pharmaceutical company, and 
Ausimont's subsequent name change to Solvay Solexis. On February 11, 
2003, the petitioner, E.I. DuPont de Nemours & Company, opposed Solvay 
Solexis' requests for an expedited changed circumstances review and for 
a retroactive assignment of a company-specific cash deposit rate.

Scope of the Review

    The product covered by this review is granular PTFE resin, filled 
or unfilled. This order also covers PTFE wet raw polymer exported from 
Italy to the United States. See Final Affirmative Determination; 
Granular Polytetrafluoroethylene Resin from Italy, 58 FR 26100 (April 
30, 1993). This order excludes PTFE dispersions in water and fine 
powders. Such merchandise is classified under item number 3904.61.00 of 
the Harmonized Tariff Schedule of the United States (HTSUS). We are 
providing this HTSUS number for convenience and customs purposes only. 
The written description of the scope remains dispositive.

Initiation and Preliminary Results of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), the Department will conduct a changed circumstances review 
upon receipt of information concerning, or a request from an interested 
party for a review of, an antidumping duty order which shows changed 
circumstances sufficient to warrant a review of the order. As indicated 
in the Background section, we have received information indicating that 
Ausimont has been acquired by the Solvay Group. This constitutes 
changed circumstances warranting a review of the order. Therefore, in 
accordance with section 751(b)(1) of the Act, we are initiating a 
changed circumstances review based upon the information contained in 
Solvay Solexis' submissions.
    Section 351.221(c)(3)(ii) of the regulations permits the Department 
to combine the notice of initiation of a changed circumstances review 
and the notice of preliminary results in a single notice if the 
Department concludes that expedited action is warranted. In this 
instance, because we have the information necessary to make a 
preliminary finding already on the record, we find that expedited 
action is warranted and have combined the notice of initiation and the 
notice of preliminary results.
    In making successor-in-interest determinations, the Department 
examines several factors including, but not limited to, changes in: (1) 
management; (2) production facilities; (3) supplier relationships; and 
(4) customer base. See, e.g., Polychloroprene Rubber from Japan: Final 
Results of Changed Circumstances Review, 67 FR 58 (January 2, 2002) 
citing, Brass Sheet and Strip from Canada: Notice of Final Results of 
Antidumping Duty Administrative Review, 57 FR 20460 (May 13, 1992). 
While no single factor, or combination of factors, will necessarily 
prove dispositive, the Department will generally consider the new 
company to be the successor to its predecessor company if the resulting 
operations are essentially the same as the predecessor company. Id. 
citing, Industrial Phosphoric Acid from Israel; Final Results of 
Changed Circumstances Review, 59 FR 6944, 6945 (February 14, 1994). 
Thus, if the evidence demonstrates that, with respect to the production 
and sale of the subject merchandise, the new company operates as the 
same business entity as its predecessor, the Department will assign the 
new company the cash-deposit rate of its predecessor.
    In its January 23, 2003, submission Solvay Solexis stated that, 
prior to its acquisition of Ausimont, neither the Solvay Group, nor any 
affiliated party of the Group, manufactured or exported subject 
merchandise. The Solvay Group merged its fluoropolymers business with 
that of Ausimont's and Ausimont changed its name to Solvay Solexis 
effective January 1, 2003. Furthermore, in both its January 23 and 
February 10, 2003, submissions, Solvay Solexis stated that the change 
in ownership has not significantly changed the companies' personnel, 
operations, supplier/customer relationships, or facilities. To support 
its claims, Solvay Solexis provided press releases discussing Solvay 
Group's purchase of Ausimont, investor presentations, an application 
for amended certificate of authority, an amended certificate of 
incorporation, shareholder meeting minutes, management charts, a letter 
to customers, and product labels.
    In its February 11, 2003, submission the petitioner contended that 
Solvay Solexis did not provide adequate legal documentation regarding 
the acquisition or support for its claim that management had not 
changed substantially as a result of the purchase of Ausimont by the 
Solvay Group. Furthermore, the petitioner argued that the Department 
should require Solvay Solexis to submit additional information before 
the Department made a preliminary finding in this review. Finally, the 
petitioner argued that the applicable cash deposit rate should not 
apply to Solvay Solexis retroactively.
    Based on the information submitted by Solvay Solexis, we 
preliminarily find that Solvay Solexis is the successor-in-interest to 
Ausimont. We find that the company's senior management, production 
facilities, supplier relationships, and customers have not changed 
significantly. Furthermore, Solvay Solexis provided management charts 
in its February 10, 2003, submission that addressed the petitioner's 
concerns and demonstrated management did not change significantly as a 
result of the Solvay Group's purchase of Ausimont. Based on all the 
evidence reviewed, we find that Solvay Solexis operates as the same 
business entity as Ausimont. Thus, we preliminarily find that Solvay 
Solexis should receive the same antidumping duty cash-deposit rate 
(i.e., 12.08 percent) with respect to the subject merchandise as 
Ausimont, its predecessor company.
    However, because cash deposits are only estimates of the amount of 
antidumping duties that will be due, changes in cash deposit rates are 
not made retroactive. If Solvay Solexis believes that the deposits paid 
exceed the actual amount of dumping, it is entitled to request an 
administrative review during the anniversary month of the publication 
of the order of those entries to determine the proper

[[Page 13674]]

assessment rate and receive a refund of any excess deposits. See 
Certain Hot-Rolled Lead and Bismuth Carbon Steel Products From the 
United Kingdom: Final Results of Changed-Circumstances Antidumping and 
Countervailing Duty Administrative Reviews, 64 FR 66880 (November 30, 
1999). As a result, if these preliminary results are adopted in our 
final results of this changed circumstances review, we will instruct 
the Customs Service to suspend shipments of subject merchandise made by 
Solvay Solexis at Ausimont's cash deposit rate (i.e., 12.08 percent). 
Until that time, the cash deposit rate assigned to Solvay Solexis' 
entries is the rate in effect at the time of entry (i.e., the ``all 
others'' rate).

Public Comment

    Any interested party may request a hearing within 30 days of 
publication of this notice. See 19 CFR 351.310(c). Any hearing, if 
requested, will be held 44 days after the date of publication of this 
notice, or the first working day thereafter. Interested parties may 
submit case briefs and/or written comments not later than 30 days after 
the date of publication of this notice. Rebuttal briefs and rebuttals 
to written comments, which must be limited to issues raised in such 
briefs or comments, may be filed not later than 37 days after the date 
of publication of this notice. Parties who submit arguments are 
requested to submit with the argument (1) a statement of the issue, (2) 
a brief summary of the argument, and (3) a table of authorities.
    Consistent with section 351.216(e) of the Department's regulations, 
we will issue the final results of this changed circumstances review no 
later than 270 days after the date on which this review was initiated, 
or within 45 days if all parties agree to our preliminary finding.
    We are issuing and publishing this finding and notice in accordance 
with sections 751(b)(1) and 777(i)(1) of the Act and section 351.216 of 
the Department's regulations.

    March 13, 2003.
Joseph Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 03-6732 Filed 3-19-03; 8:45 am]
BILLING CODE 3510-DS-S