[Federal Register Volume 70, Number 53 (Monday, March 21, 2005)]
[Notices]
[Pages 13462-13464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1221]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-549-824]


Final Negative Countervailing Duty Determination: Bottle-Grade 
Polyethylene Terephthalate (PET) Resin From Thailand

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has reached a 
final determination that countervailable subsidies are not being 
provided to producers of bottle-grade (BG) PET Resin from Thailand. For 
information on the estimated countervailable subsidy rates, please see 
the ``Final Determination'' section of this notice.

DATES: Effective Date: March 21, 2005.

FOR FURTHER INFORMATION CONTACT: Dara Iserson or Thomas Gilgunn, AD/CVD 
Operations, Office 6, Import Administration, U.S. Department of 
Commerce, Room 7866, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-4052 and (202) 482-4236, 
respectively.

SUPPLEMENTARY INFORMATION: 

Case History

    On August 30, 2004, the Department published the Preliminary 
Negative Countervailing Duty Determination and Alignment With Final 
Antidumping Duty Determination: Bottle-Grade Polyethylene Terephthalate 
(PET) Resin From Thailand, 69 FR 52862 (August 30, 2004) (Preliminary 
Determination). Since the Preliminary Determination, the Department 
issued additional supplemental questionnaires to, and conducted 
verification of the responses provided by, the Royal Thai Government 
(RTG), Bangkok Polyester Company (BPC), Thai Shinkong Industry 
Corporation Limited (Thai Shinkong), Indopet Thailand Limited 
(Indopet), and Asiapet Thailand Limited (Asiapet) (collectively--
``Respondents'').
    The Department issued the RTG, Indopet, Thai Shinkong, and BPC 
verification reports on January 10, 2005. See Memoranda to the File 
from Thomas Gilgunn to Dana Mermelstein, Countervailing Duty 
Investigation of Bottle Grade Polyethylene Terephthalate (PET) Resin 
from Thailand: Verification of the Questionnaire Responses Submitted by 
the Royal Thai Government (RTG); Countervailing Duty Investigation of 
Bottle Grade Polyethylene Terephthalate (PET) Resin from Thailand: 
Verification of the Questionnaire Responses Submitted by Indopet 
(Thailand) Limited (Indopet); Countervailing Duty Investigation of 
Bottle Grade Polyethylene Terephthalate (PET) Resin from Thailand: 
Verification of the Questionnaire Responses Submitted by Thai Shinkong 
Industry Company Limited (Thai Shinkong); and Countervailing Duty 
Investigation of Bottle Grade Polyethylene Terephthalate (PET) Resin 
from Thailand: Verification of the Questionnaire Responses Submitted by 
Bangkok Polyester Public Company Limited (BPC). On January 18, 2005, 
the Department issued the Asiapet verification report. see 
Countervailing Duty Investigation of Bottle Grade Polyethylene 
Terephthalate (PET) Resin from Thailand: Verification of the 
Questionnaire Responses Submitted by Asiapet Thailand Limited 
(Asiapet).
    On January 21, 2005, case briefs were filed by Petitioner and by 
all Respondents: RTG, Indopet, Asiapet, Thai Shinkong, and BPC. On 
January 26, 2005, Respondents and Petitioner filed their respective 
rebuttal briefs. On February 3, 2005, Respondents filed letter 
objecting to ``untimely legal information'' filed in the Petitioner's 
January 26, 2005, rebuttal brief. On February 7, 2005, Petitioners 
responded to the arguments raised in Respondent's February 3, 2005, 
letter. On February 9, 2005, the Department notified Petitioners that 
certain legal information raised in its January 26, 2005, rebuttal 
brief did not comply with section 351.309(d)(2) of the regulations. On 
February 10, 2005, Petitioner refiled its rebuttal brief.

Period of Investigation

    The period of investigation (POI) for which we are measuring 
subsidies is January 1, 2003, through December 31, 2003, which 
corresponds to the most recently completed fiscal year for the 
respondent companies. See section 351.204(b)(2) of the Department's 
regulations.

Scope of the Investigation

    The merchandise covered by this investigation is polyethylene 
terephthalate (PET) bottle-grade resin, defined as having an intrinsic 
viscosity of at least .68 deciliters per gram but not more than .86 
deciliters per gram. The scope includes bottle-grade PET resin that 
contains various additives introduced in the manufacturing process. The 
scope does not include post-consumer recycle (PCR) or post-industrial 
recycle (PIR) PET resin; however, included in the scope is any bottle-
grade PET resin blend of virgin PET bottle-grade resin and recycled PET 
(RPET). Waste and scrap PET are

[[Page 13463]]

outside the scope of the investigation. Fiber-grade PET resin, which 
has an intrinsic viscosity of less than .68 deciliters per gram, is 
also outside the scope of the investigations.
    The merchandise subject to this investigation is properly 
classified under subheading 3907.60.0010 of the Harmonized Tariff 
Schedule of the United States (HTSUS); however, merchandise classified 
under HTSUS subheading 3907.60.0050 that otherwise meets the written 
description of the scope is also subject to these investigations. 
Although the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the merchandise under 
investigation is dispositive.

Analysis of Comments Received

    A detailed discussion of the issues of cross-ownership and 
attribution of subsidies raised by interested parties in their case and 
rebuttal briefs is contained in the Memorandum to the File from Dana 
Mermelstein to Barbara E. Tillman, Countervailing Duty Investigation of 
Bottle Grade Polyethylene Terephthalate (PET) Resin From Thailand: 
Attribution of Subsidies Received by Supplier Companies to Indopet 
(March 14, 2005) (Attribution Memorandum) because it includes business 
proprietary information.
    All other issues raised by the interested parties in their case and 
rebuttal briefs are addressed in the ``Issues and Decision Memorandum'' 
(Decision Memorandum) dated March 14, 2005, which is hereby adopted by 
this notice. A list of the issues which parties have raised is attached 
to this notice as Appendix I. 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 the 
Central Records Unit (CRU). A complete version of the Decision 
Memorandum is available at http://www.ia.ita.doc.gov under the heading 
``Federal Register Notices.'' The paper copy and the electronic version 
of the Decision Memorandum are identical in content.

Final Determination

    In accordance with section 703(d)(1)(A)(i) of the Tariff Act of 
1930, as amended (The Act), we have determined individual rates for 
Thai Shinkong, Bangkok Polyester, and Indopet. Section 705(c)(5)(A)(I) 
of the Act provides that the ``all others'' rate will generally be an 
amount equal to the weighted average countervailable subsidy rates 
established for exporters or producers individually investigated, 
excluding any zero or de minimis countervailable subsidy rates and any 
rates determined entirely on the basis of the facts available. In this 
case, however, the countervailable subsidy rates for all of the 
individually investigated exporters or producers are de minimis. 
Section 705(c)(5)(A)(ii) of the Act provides that, when this is the 
case, the administering authority may use any reasonable method to 
establish the ``all others'' rate, including averaging the weighted 
average countervailable subsidy rates determined for the exporters and 
producers individually examined. Thus, to calculate the ``all others'' 
rate, we weight-averaged the individual rates of Thai Shinkong, Bangkok 
Polyester, and Indopet, based on each company's respective exports of 
subject merchandise to the United States during the POI.
    These rates are summarized in the table below:

------------------------------------------------------------------------
                                                            Net subsidy
                    Producer/exporter                      rate (percent
                                                           ad  valorem)
------------------------------------------------------------------------
Thai Shinkong Industry Corporation Ltd..................            0.31
Bangkok Polyester Public Company Limited................            0.73
Indopet (Thailand) Limited..............................            0.70
All Others Rate.........................................            0.47
------------------------------------------------------------------------

    These countervailable subsidy rates are de minimis, in accordance 
with section 703(b)(4)(B) of the Act and 19 CFR 351.106(b). Therefore, 
we determine that countervailable subsidies are not being provided to 
producers/exporters of bottle grade PET Resin from Thailand. See 
Section 705(a)(3) of the Act. In the Preliminary Determination, the 
total net countervailable subsidy rate was de minimis, therefore, we 
did not suspend liquidation. Since we determine that countervailable 
subsidies are not being provided to producers or exporters of BG PET 
Resin from Thailand, we will not direct U.S. Customs and Border 
Protection to suspend liquidation of entries of the subject merchandise 
from Thailand.

International Trade Commission (ITC) Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-priveleged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided that the ITC 
confirms that it will not disclose such information, either publicly or 
under administrative protective order (APO), without the written 
consent of the Assistant Secretary of Import Administration.

Return or Destruction of Proprietary Information

    This notice will serve as the only reminder to parties subject to 
APO of their responsibility concerning the destruction of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Failure to comply is a violation of the APO.
    This determination is issued and published in accordance with 
sections 705(d) and 777(i) of the Act.

    Dated: March 14, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix I: Issues and Decision Memorandum

Summary

I. Comments

Comment 1: Whether the Department Should Apply Adverse Facts 
Available (AFA) to BPC
Comment 2: The Selection of the Discount Rate for Allocating 
Subsidies Over Time
Comment 3: Whether the IPA Benetifits for BPC, Thai Shinkong, 
Indopet, and Asiapet are Export Contingent
Comment 4: The Selection of the Denominator for Calculating Ad 
Valorem Subsidy Rates
Comment 5: The Appropriate Method for Calculating Section 35(3) 
Benefits
Comment 6: Whether Cross-Ownership Between Indopet and Indopet's 
Suppliers Exists
Comment 7: Whether or Not Indopet, Thai Shinkong, and BPC Used 
Section 35(4) Benefits

II. Subsidies Valuation Information

A. Discount Rates
B. Allocation Period
C. Cross-Ownership and Attribution of Subsidies
D. Export Contingency
E. Denominator for Ad Valorem Subsidy Rates

III. Analysis of Programs

A. Programs Determined To Be Countervailable
Investment Incentives Under the Investment Promotion Act (IPA)
    1. Duty Exemptions on Imports of Machinery Under IPA Section 28
    2. Additional Income Tax Deductions Under IPA Section 35
B. Programs Determined To Be Not Countervailable
    Duty Exemptions on Imports of Raw and Essential Materials Under 
IPA Section 36
C. Programs Determined To Be Not Used
    1. Import Duty Exemptions on Raw and Essential Materials Under 
IPA Section 30

[[Page 13464]]

    2. Corporate Income Tax Exemptions Under IPA Section 31

IV. Total Ad Valorem Rates

V. Analysis of the Comments

VI. Recommendation

[FR Doc. E5-1221 Filed 3-18-05; 8:45 am]
BILLING CODE 3510-DS-P