[Federal Register Volume 71, Number 91 (Thursday, May 11, 2006)]
[Notices]
[Pages 27459-27460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-7233]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-588-707


Granular Polytetrafluoroethylene Resin From Japan: Preliminary 
Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce is conducting an administrative 
review of the antidumping duty order on granular 
polytetrafluoroethylene resin (PTFE) from Japan manufactured and 
exported by Asahi Glass Fluoropolymers, Ltd. (Asahi), in response to a 
request from Asahi. This review covers the period August 1, 2004, 
through September 30, 2005.
    We have preliminarily determined that Asahi sold the subject 
merchandise to the United States at prices below normal value during 
the period of review. We invite interested parties to comment on these 
preliminary results.

EFFECTIVE DATE: May 11, 2006.

FOR FURTHER INFORMATION CONTACT: Catherine Cartsos at (202) 482-1757 or 
Richard Rimlinger at (202) 482-4477, AD/CVD Operations, Office 5, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On August 24, 1988, the Department of Commerce (the Department) 
published in the Federal Register the antidumping duty order on PTFE 
from Japan. See Notice of Antidumping Duty Order: Granular 
Polytetrafluoroethylene Resin from Japan, 53 FR 32267 (August 24, 
1988). On August 1, 2005, we published in the Federal Register a notice 
of opportunity to request an administrative review of this order 
covering the period August 1, 2004, through September 30, 2005. See 
Antidumping or Countervailing Duty Order, Finding, or Suspended 
Investigation; Opportunity to Request Administrative Review, 70 FR 
44085 (August 1, 2005). On August 24, 2005, Asahi and AGC Chemicals 
America, Inc. (AGC), requested that the Department conduct an 
administrative review of their sales. On September 28, 2005, the 
Department published in the Federal Register a notice of initiation of 
this administrative review. See Initiation of Antidumping and 
Countervailing Duty Administrative Reviews and Request for Revocation 
in Part, 70 FR 56631 (September 28, 2005). The Department is conducting 
this review in accordance with section 751 of the Tariff Act of 1930, 
as amended (the Act). For a detailed analysis of the Department's 
calculation for this case see the Analysis Memorandum from the case 
analyst to the file dated May 3, 2006 (Analysis Memorandum).

Scope of Order

    The merchandise covered by the antidumping duty order is PTFE, 
filled or unfilled. The order excludes PTFE dispersions in water, fine 
powders, and reprocessed PTFE powder. PTFE is currently classifiable 
under subheading 3904.61.00 of the Harmonized Tariff Schedule of the 
United States (HTSUS). This order covers all PTFE, regardless of its 
tariff classification. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the order 
remains dispositive.

Comparisons to Normal Value

    To determine whether sales of PTFE from Japan were made in the 
United States at less than normal value, we compared the United States 
price to the normal value. When making comparisons in accordance with 
section 771(16) of the Act, we considered all comparable products sold 
in the home market that were in the ordinary course of trade for 
purposes of determining appropriate product comparisons to U.S. sales.

Constructed Export Price

    For all sales to the United States, we calculated constructed 
export price (CEP), as defined in section 772(b) of the Act, because 
all sales to unaffiliated parties were made after importation of the 
subject merchandise into the United States through the respondent's 
affiliate, AGC. We based CEP on the packed, delivered prices to 
unaffiliated purchasers in the United States, net of billing 
adjustments. In accordance with section 772(d)(1) of the Act, we 
deducted those selling expenses associated with economic activities 
occurring in the United States, including direct selling expenses 
(credit expenses) and indirect selling expenses. We made deductions, 
consistent with section 772(c)(2)(A) of the Act, for movement expenses 
and for CEP profit under section 772(d)(3) of the Act.

Normal Value

A. Home-Market Viability
    Based on a comparison of the aggregate quantity of home-market and 
U.S. sales, we determined that the quantity of foreign like product 
sold by Asahi in Japan was sufficient to permit a proper comparison 
with the sales of the subject merchandise to the United States, 
pursuant to section 773(a) of the Act. Asahi's quantity of sales in the 
home market was greater than five percent of its sales to the U.S. 
market. Therefore, in accordance with section 773(a)(1)(B)(i) of the 
Act, we based normal value on the prices at which the foreign like 
product was first sold for consumption in the exporting country in the 
usual commercial quantities and in the ordinary course of trade.
B. Calculation of Normal Value
    Because we were able to find contemporaneous home-market sales made 
in the ordinary course of trade for a comparison to all CEP sales, in 
accordance with section 773(a)(1)(B) of the Act we based normal value 
on the prices at which the foreign like product was sold for 
consumption in the home market. Home-market prices were based on 
delivered prices to unaffiliated purchasers. We made adjustments for 
differences in packing and for movement expenses, as appropriate, in 
accordance with sections 773(a)(6)(A) and (B) of the Act. We also made 
adjustments for differences in circumstances of sale in accordance with 
section 773(a)(6)(C)(iii) of the Act and 19 CFR 351.410 by deducting 
home-market direct selling expenses from normal value. We also made an 
adjustment for the CEP offset in accordance with section 773(a)(7)(B) 
of the Act (see Level of Trade).

Level of Trade

    Asahi reported two channels of distribution in the home market, the 
large industrial-user (OEM) channel and the service-market 
(distributor) channel. We examined the differences in selling functions 
Asahi reported in its responses with regard to the two channels of 
distribution in the home market. We found that the selling activities 
associated with sales to OEMs differed significantly from activities 
associated with sales to distributors in terms of sales forecasting, 
distributor/dealer training, and use of direct sales personnel. 
Specifically, Asahi provides sales-forecasting services and direct 
sales personnel to its OEM customers

[[Page 27460]]

but not to its distributor customers and Asahi provides distributor 
dealer training to its distributor customers but not to its OEM 
customers. Based on these differences we found that the two home-market 
channels constituted two different levels of trade.
    In the U.S. market, based on our overall analysis we found that 
there were significant differences between the selling activities 
associated with the CEP level of trade and those associated with each 
of the home-market levels of trade. For example, the CEP level of trade 
involved no advertising, sales promotion, market research, and 
technical assistance - selling activities offered at both home-market 
levels of trade. Therefore, we consider the CEP level of trade to be 
different from either home-market level of trade and at a less advanced 
stage of distribution than either home-market level of trade. 
Consequently, we could not match U.S. sales to sales at the same level 
of trade in the home market nor could we determine a level-of-trade 
adjustment based on Asahi's home-market sales of the foreign like 
product because the CEP level is not identical to either home-market 
level of trade. We also have no other information that provides an 
appropriate basis for determining a level-of-trade adjustment. Thus, 
for AGC's CEP sales, to the extent possible, we determined normal value 
at the same level of trade as the U.S. sale to the unaffiliated 
customer and made a CEP-offset adjustment in accordance with section 
773(a)(7)(B) of the Act.

Preliminary Results of Review

    As a result of our review, we preliminarily determine that a margin 
of 41.96 percent exists for Asahi for the period August 1, 2004, 
through July 31, 2005.
    Pursuant to 19 CFR 351.224(b), the Department will disclose to 
parties calculations performed in connection with these preliminary 
results within five days of the date of publication of this notice. Any 
interested party may request a hearing within 30 days of publication of 
this notice. A hearing, if requested, will be held at the main 
Department building. We will notify parties of the exact date, time, 
and place for any such hearing.
    Issues raised in the hearing will be limited to those raised in the 
respective case and rebuttal briefs. Case briefs from interested 
parties may be filed no later than 30 days after publication of this 
notice. Rebuttal briefs, limited to the issues raised in case briefs, 
may be submitted no later than five days after the deadline for filing 
case briefs. Parties who submit case or rebuttal briefs are requested 
to submit with each argument a statement of the issue and a brief 
summary of the argument with an electronic version included.
    The Department will issue a notice of final results of this 
administrative review, which will include the results of its analysis 
of issues raised in the case briefs, within 120 days from the date of 
publication of these preliminary results.

Assessment

    The Department shall determine, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries. The Department will issue appropriate instructions directly to 
the CBP within 15 days of the publication of the final results of this 
review.
    In accordance with 19 CFR 351.212(b)(1), we have calculated an 
exporter/importer (or customer)-specific assessment rate for 
merchandise subject to this review. For Asahi's CEP sales we divided 
the total dumping margins for the reviewed sales by the total entered 
value of those reviewed sales for each importer. We will direct CBP to 
assess the resulting percentage margin against the entered customs 
values for the subject merchandise on each of that importer's entries 
during the review period. See 19 CFR 351.212(b).
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003 (68 FR 23954). This clarification will apply to entries of 
subject merchandise during the period of review produced by Asahi for 
which Asahi did not know that its merchandise was destined for the 
United States. In such instances, we will instruct CBP to liquidate 
unreviewed entries at the all-others rate if there is no rate for the 
intermediate company(ies) involved in the transaction. For a full 
discussion of this clarification, see Antidumping and Countervailing 
Duty Proceedings: Assessment of Antidumping Duties, 68 FR 23954 (May 6, 
2003).

Cash Deposit

    Further, the following deposit requirements will be effective upon 
publication of the notice of final results of administrative review for 
all shipments of PTFE entered, or withdrawn from warehouse, for 
consumption on or after the date of publication, as provided by section 
751(a)(1) of the Act: (1) The cash-deposit rate for Asahi will be the 
rate established in the final results of review; (2) for previously 
reviewed or investigated companies not mentioned above, the cash-
deposit rate will continue to be the company-specific rate published 
for the most recent period; (3) if the exporter is not a firm covered 
in this review, a prior review, or the less-than-fair-value (LTFV) 
investigation but the manufacturer is, then the cash-deposit rate will 
be the rate established for the most recent period for the manufacturer 
of the merchandise; and (4) if neither the exporter nor the producer is 
a firm covered in this review, a prior review, or the LTFV 
investigation, the cash-deposit rate shall be 91.74 percent, the all-
others rate established in the LTFV investigation. See Notice of Final 
Determination of Sales at Less Than Fair Value: Granular 
Polytetrafluoroethylene Resin From Japan, 53 FR 25191 (July 5, 1988). 
These deposit requirements, when imposed, shall remain in effect until 
publication of the final results of the next administrative review.
    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.
    We are publishing this notice in accordance with sections 751(a)(1) 
and 777(i)(1) of the Act.

    Dated: May 3, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-7233 Filed 5-10-06; 8:45 am]
BILLING CODE 3510-DS-S