[Federal Register Volume 72, Number 142 (Wednesday, July 25, 2007)]
[Notices]
[Pages 40833-40838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-14370]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-916


Laminated Woven Sacks from the People's Republic of China: 
Initiation of Antidumping Duty Investigation

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

EFFECTIVE DATE: July 25, 2007.

FOR FURTHER INFORMATION CONTACT: Catherine Bertrand, AD/CVD Operations, 
Office 9, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-3207.

[[Page 40834]]


SUPPLEMENTARY INFORMATION:

INITIATION OF INVESTIGATION:

The Petition

    On June 28, 2007, the Department of Commerce (``Department'') 
received a petition concerning imports of laminated woven sacks 
(``LWS'') from the People's Republic of China (``PRC'') filed in proper 
form by the Laminated Woven Sacks Committee and its individual members, 
Bancroft Bags, Inc., Coating Excellence International, LLC, Hood 
Packaging Corporation, Mid-America Packaging, LLC, and Polytex Fibers 
Corporation (collectively, (``Petitioners''). See Petition on Laminated 
Woven Sacks from the People's Republic of China filed on June 28, 2007 
(``Petition''). On July 2, and 11, 2007, the Department issued requests 
for additional information and clarification of certain areas of the 
Petition. Based on the Department's requests, the Petitioners filed 
additional information on July 9, and 12, 2007. The period of 
investigation (``POI'') is October 1, 2006, through March 31, 2007. See 
19 CFR 351.204(b).
    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (``the Act''), the Petitioners allege that imports of LWS from 
the PRC are being, or are likely to be, sold in the United States at 
less than fair value, within the meaning of section 731 of the Act, and 
that such imports are materially retarding the establishment of an 
industry in the United States, or that such an industry is materially 
injured or threatened with material injury by reason of such imports.
    The Department finds that the Petitioners filed this Petition on 
behalf of the domestic industry because the Petitioners are interested 
parties as defined in section 771(9)(C), (E) and (F) of the Act, and 
have demonstrated sufficient industry support with respect to the 
antidumping duty investigation (see ``Determination of Industry Support 
for the Petitions'' section below).
    Scope of Investigation
    The merchandise covered by this investigation is laminated woven 
sacks. See Attachment I to this notice for a complete description of 
the merchandise covered by this investigation.

Comments on Scope of Investigation

    During our review of the Petition, we discussed the scope with the 
Petitioners to ensure that it is an accurate reflection of the products 
for which the domestic industry is Seeking relief. Moreover, as 
discussed in the preamble to the regulations (Antidumping Duties; 
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)), 
we are setting aside a period for interested parties to raise issues 
regarding product coverage. The Department encourages all interested 
parties to submit such comments by August 7, 2007. Comments should be 
addressed to Import Administration's Central Records Unit, Room 1870, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230, attention Catherine Bertrand, room 4003. The 
period of scope consultations is intended to provide the Department 
with ample opportunity to consider all comments and to consult with 
parties prior to the issuance of the preliminary determination.

Comments on Product Characteristics for Antidumping Duty Questionnaire

    We are requesting comments from interested parties regarding the 
appropriate physical characteristics of laminated woven sacks to be 
reported in response to the Department's antidumping questionnaire. For 
example, we are considering whether certain physical characteristics 
such as width, gusset, length, fabric thickness, coating thickness, 
film thickness, and total bag weight are relevant. This information 
will be used to identify the key physical characteristics of the 
subject merchandise in order for respondents to more accurately report 
the relevant factors of production.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate listing of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use 1) as general product 
characteristics and 2) as the product reporting criteria. We note that 
it is not always appropriate to use all product characteristics as 
product reporting criteria. In order to consider the suggestions of 
interested parties in developing and issuing the antidumping duty 
questionnaires, we must receive non-proprietary comments at the above-
referenced address by August 8, 2007, and rebuttal comments must be 
received within 10 calendar days of the receipt of timely filed 
comments.

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A), or (ii) determine industry support using a 
statistically valid sampling method.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product (section 771(10) of the Act), they do so for different 
purposes and pursuant to a separate and distinct authority. In 
addition, the Department's determination is subject to limitations of 
time and information. Although this may result in different definitions 
of the like product, such differences do not render the decision of 
either agency contrary to law. See USEC, Inc. v. United States, 132 F. 
Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United 
States, 688 F. Supp. 639, 644 (1988), aff'd 865 F.2d 240 (Fed. Cir. 
1989), cert. denied 492 U.S. 919 (1989).
    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this subtitle.'' Thus, the reference point from which the 
domestic like product analysis begins is ``the article subject to an 
investigation,'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the Petitioners do not 
offer a definition of domestic like product distinct from the scope of 
the investigation. Based on our analysis of

[[Page 40835]]

the information submitted on the record, we have determined that 
laminated woven sacks constitute a single domestic like product and we 
have analyzed industry support in terms of that domestic like product. 
For a discussion of the domestic like product analysis in this case, 
see the Antidumping Investigation Initiation Checklist: Laminated Woven 
Sacks from the People's Republic of China (PRC), Industry Support at 
Attachment II (Initiation Checklist), on file in the Central Records 
Unit, Room B-099 of the main Department of Commerce building.
    Our review of the data provided in the Petition, supplemental 
submissions, and other information readily available to the Department 
indicates that the Petitioners have established industry support. 
First, the Petition established support from domestic producers (or 
workers) accounting for more than 50 percent of the total production of 
the domestic like product and, as such, the Department is not required 
to take further action in order to evaluate industry support (e.g., 
polling). See Section 732(c)(4)(D) of the Act. Second, the domestic 
producers have met the statutory criteria for industry support under 
732(c)(4)(A)(i) because the domestic producers (or workers) who support 
the Petition account for at least 25 percent of the total production of 
the domestic like product. Finally, the domestic producers have met the 
statutory criteria for industry support under 732(c)(4)(A)(ii) because 
the domestic producers (or workers) who support the Petition account 
for more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the Petition. Accordingly, the Department determines 
that the Petition was filed on behalf of the domestic industry within 
the meaning of section 732(b)(1) of the Act See Initiation Checklist at 
Attachment II (Industry Support).
    The Department finds that the Petitioners filed the Petition on 
behalf of the domestic industry because they are interested parties as 
defined in sections 771(9)(C), (E), and (F) of the Act and they have 
demonstrated sufficient industry support with respect to the 
antidumping investigation that they are requesting the Department 
initiate. See Initiation Checklist at Attachment II (Industry Support).

Allegations and Evidence of Material Retardation and of Material Injury 
and Causation

    Section 733(a)(1)(B) of the Act states that the ITC ``shall 
determine . . . whether there is a reasonable indication that the 
establishment of an industry in the United States is materially 
retarded by reason of imports of the subject merchandise.'' The 
Petitioners allege that imports of subject merchandise from the PRC 
have materially retarded the establishment of the domestic industry 
producing LWS. The Petitioners argue that U.S. producers of LWS have 
not stabilized their operations and, therefore, a U.S. industry 
producing LWS has not been established. To support their argument, the 
Petitioners examine the five factors considered by the ITC to determine 
if an industry is established, as set forth in the ITC's Antidumping 
and Countervailing Duty Handbook. See Antidumping and Countervailing 
Duty Handbook (12th Ed.), USITC Pub. 3916 (April 2007). Furthermore, 
the Petitioners contend that their efforts to establish a domestic LWS 
industry have been thwarted by dumped imports of LWS from the PRC.
    The Petitioners also allege that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (``NV''). The Petitioners 
contend that the industry's injured condition is illustrated by lost 
sales, lost revenue, underselling and price depression or suppression, 
poor financial performance, capacity and depressed capacity utilization 
rate, and increased import penetration.
    We have assessed the allegations and supporting evidence regarding 
material retardation and material injury and causation, and we have 
determined that these allegations are properly supported by adequate 
evidence and meet the statutory requirements for initiation. See 
Initiation Checklist at Attachment III (Injury).

Allegation of Sales at Less Than Fair Value

    The following is a description of the allegation of sales at less 
than fair value upon which the Department based its decision to 
initiate this investigation on imports of LWS from the PRC. The sources 
of data for the deductions and adjustments relating to the U.S. price 
and the factors of production are also discussed in the checklist. See 
Initiation Checklist. Should the need arise to use any of this 
information as facts available under section 776 of the Act in our 
preliminary or final determinations, we will reexamine the information 
and revise the margin calculations, if appropriate.

Export Price

    The Petitioners relied on two U.S. offers for LWS manufactured in 
the PRC and offered for sale in the United States. The two price offers 
were for a certain type of laminated woven sack falling within the 
scope of the Petition, for sale to the U.S. customer within the POI. 
The Petitioners deducted from the prices the costs associated with 
exporting and delivering the product, foreign inland freight costs, and 
foreign brokerage and handling. See Initiation Checklist. The 
Petitioners adjusted the U.S. price for foreign inland freight charges 
based on the methodology used by the Department in Hand Trucks and 
Certain Parts Thereof From the People's Republic of China: Final 
Results of Administrative Review and Final Results of New Shipper 
Review, 72 FR 27287 (May 15, 2007) (``Hand Trucks'') See Petition at 
page 29. The Petitioners adjusted the U.S. price for foreign brokerage 
and handling based on Indian surrogate value data applied in Hand 
Trucks. See Petition at page 29.

Normal Value

    The Petitioners stated that the PRC remains a non-market economy 
(``NME'') country and no determination to the contrary has yet been 
made by the Department. Recently, the Department examined the PRC's 
market status and determined that NME status should continue for the 
PRC. See Memorandum from the Office of Policy to David M. Spooner, 
Assistant Secretary for Import Administration, Regarding The People's 
Republic of China Status as a Non-Market Economy, dated May 15, 2006. 
(This document is available online at http://ia.ita.doc.gov/download /
prc-nme-status/prc-nme-status-memo.pdf.) In addition, in two recent 
investigations, the Department also determined that the PRC is an NME 
country. See Final Determination of Sales at Less Than Fair Value: 
Certain Activated Carbon from the People's Republic of China, 72 FR 
9508 (March 2, 2007), and Final Determination of Sales at Less Than 
Fair Value and Partial Affirmative Determination of Critical 
Circumstances: Certain Polyester Staple Fiber from the People's 
Republic of China, 72 FR 19690 (April 19, 2007). In accordance with 
section 771(18)(C)(i) of the Act, the presumption of NME status remains 
in effect until revoked by the Department. The presumption of NME 
status for the PRC has not been revoked by the Department and remains 
in effect for purposes of the initiation of this investigation. 
Accordingly, the NV of the product is appropriately based on factors of 
production valued in a

[[Page 40836]]

surrogate market-economy country in accordance with section 773(c) of 
the Act. In the course of this investigation, all parties will have the 
opportunity to provide relevant information related to the issues of 
the PRC's NME status and the granting of separate rates to individual 
exporters.
    The Petitioners selected India as the surrogate country arguing 
that, pursuant to section 773(c)(4) of the Act, India is an appropriate 
surrogate because it is a market-economy country that is at a level of 
economic development comparable to that of the PRC and is a significant 
producer and exporter of LWS. See Petition at page 23. Based on the 
information provided by the Petitioners, we believe that the use of 
India as a surrogate country is appropriate for purposes of initiation. 
After the initiation of the investigation, we will solicit comments 
regarding surrogate country selection.
    The Petitioners provided dumping margin calculations using the 
Department's NME methodology as required by 19 CFR 351.202(b)(7)(i)(C) 
and 19 CFR 351.408. However, because information regarding the factors 
of production consumed by Chinese producers is not available to the 
Petitioners, the Petitioners calculated NVs for each U.S. price 
discussed above based on consumption rates for producing LWS as 
experienced by U.S. producers. See Petition at page 22. The Petitioners 
use a U.S. producer's consumption figures, as actual factors of 
production for a Chinese company were not reasonably available. The 
Petitioners provide affidavits to support their NV calculation. See 
July 9, 2007, response at Exhibits B and C. Accordingly, we found the 
Petitioners' use of the production data to be reasonable.
    For the NV calculations, the Petitioners were unable to obtain 
surrogate value figures contemporaneous with the POI for all material 
inputs, and accordingly relied upon the most recent information 
available. The sources of these data include the World Trade Atlas 
compilation of Indian import statistics, which provided data through 
November 2006 at the time the Petition was filed. See Petition at page 
24. Where an input price reflected a period preceding the POI, the 
Petitioners adjusted it for inflation using the wholesale price index 
for India reported by the Reserve Bank of India. See id. To value the 
cost of electricity, the Petitioners used the identical methodology 
recently used by the Department in Hand Trucks. See Petition at page 15 
and Exhibit 15. The Petitioners excluded those values from countries 
previously determined by the Department to be NME countries; imports 
into India from Indonesia, the Republic of Korea and Thailand, because 
the Department has previously excluded prices from these countries 
because they maintain broadly available, non-industry-specific export 
subsidies, as well as imports from unspecified countries. See Hand 
Trucks accompanying Issues and Decision Memorandum at Comment 23. The 
surrogate values used by the Petitioners for the material and packing 
inputs consist of information reasonably available to the Petitioners 
and are, therefore, acceptable for purposes of initiation.
    With respect to the surrogate financial expenses, the Petitioners 
relied on the factory overhead, SG&A expenses and profitability of two 
Indian LWS producers, KG Petrochem, Ltd, and Dhoot Compack, Ltd., taken 
from the companies' most recently available annual reports that are 
closest to the POI. See Petition at page 28 and Exhibit 18. We find 
that the Petitioners' use of these two companies' information as the 
source for the surrogate financial expenses is appropriate for purposes 
of initiation.

Fair Value Comparisons

    Based on the data provided by the Petitioners, there is reason to 
believe that imports of LWS from the PRC are being, or are likely to 
be, sold in the United States at less than fair value. Based on 
comparisons of export price to NV, calculated in accordance with 
section 773(c) of the Act, the estimated dumping margins for laminated 
woven sacks are 74.70 percent and 91.73 percent.

Initiation of Antidumping Investigations

    Based upon the examination of the Petition on LWS from the PRC, the 
Department finds that the Petition meets the requirements of section 
732 of the Act. Therefore, we are initiating an antidumping duty 
investigation to determine whether imports of laminated woven sacks 
from the PRC are being, or are likely to be, sold in the United States 
at less than fair value. In accordance with section 733(b)(1)(A) of the 
Act, unless postponed, we will make our preliminary determination no 
later than 140 days after the date of this initiation.

Separate Rates and Quantity and Value Questionnaire

    The Department recently modified the process by which exporters and 
producers may obtain separate-rate status in NME investigations. See 
Policy Bulletin 05.1: Separate-Rates Practice and Application of 
Combination Rates in Antidumping Investigations involving Non-Market 
Economy Countries (April 5, 2005) (Separate Rates and Combination Rates 
Bulletin), available on the Department's Web site at http://ia.ita.doc.gov/policy/bull05-1.pdf. The process requires the submission 
of a separate-rate status application. Based on our experience in 
processing the separate-rate applications in the following antidumping 
duty investigations, we have modified the application for this 
investigation to make it more administrable and easier for applicants 
to complete. See Initiation of Antidumping Duty Investigations: Certain 
Lined Paper Products From India, Indonesia, and the People's Republic 
of China, 70 FR 58374, 58379 (October 6, 2005); Initiation of 
Antidumping Duty Investigation: Certain Artist Canvas From the People's 
Republic of China, 70 FR 21996, 21999 (April 28, 2005); and Initiation 
of Antidumping Duty Investigations: Diamond Sawblades and Parts Thereof 
from the People's Republic of China and the Republic of Korea, 70 FR 
35625, 35629 (June 21, 2005). The specific requirements for submitting 
the separate-rate application in this investigation are outlined in 
detail in the application itself, which will be available on the 
Department's Web site at http://ia.ita.doc.gov/ia-highlights-and-news.html on the date of publication of this initiation notice in the 
Federal Register. The separate-rate application is due no later than 
September 17, 2007.

NME Respondent Selection and Quantity and Value Questionnaire

    For NME investigations, it is the Department's practice to request 
quantity and value information from all known exporters identified in 
the PRC Petition. Although many NME exporters respond to the quantity 
and value information request, at times some exporters may not have 
received the quantity and value questionnaire or may not have received 
it in time to respond by the specified deadline. Therefore, the 
Department typically requests the assistance of the NME government in 
transmitting the Department's quantity and value questionnaire to all 
companies that manufacture and export subject merchandise to the United 
States, as well as to manufacturers that produce the subject 
merchandise for companies that were engaged in exporting subject 
merchandise to the United States during the POI. The quantity and value 
data received from

[[Page 40837]]

NME exporters is used as the basis to select the mandatory respondents.
    The Department requires that the respondents submit a response to 
both the quantity and value questionnaire and the separate-rate 
application by the respective deadlines in order to receive 
consideration for separate-rate status. Attachment II of this notice 
contains the quantity and value questionnaire that must be submitted by 
all NME exporters no later than August 8, 2007. In addition, the 
Department will post the quantity and value questionnaire along with 
the filing instructions on the IA Web site: http://ia.ita.doc.gov/ia-highlights-and-news.html. The Department will send the quantity and 
value questionnaire to those companies identified in Exhibit 4 of 
Volume I of the Petition and those identified by the NME government.

Use of Combination Rates in an NME Investigation

    The Department will calculate combination rates for certain 
respondents that are eligible for a separate rate in the PRC 
investigation. The Separate Rates and Combination Rates Bulletin, 
states:
    {w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME investigations will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period of 
investigation. This practice applies both to mandatory respondents 
receiving an individually calculated separate rate as well as the pool 
of non-investigated firms receiving the weighted-average of the 
individually calculated rates. This practice is referred to as the 
application of ``combination rates'' because such rates apply to 
specific combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise 
both exported by the firm in question and produced by a firm that 
supplied the exporter during the period of investigation.
See Separate Rates and Combination Rates Bulletin, at 6.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act, copies of the 
public version of the Petition have been provided to the 
representatives of the Government of the PRC. We will attempt to 
provide a copy of the public version of the Petition to the foreign 
producers/exporters, consistent with 19 CFR 351.203(c)(2).

International Trade Commission Notification

    We have notified the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determination by the International Trade Commission

    The ITC will preliminarily determine, no later than August 13, 
2007, whether there is a reasonable indication that imports of 
laminated woven sacks from the PRC are materially retarding the 
establishment of a U.S. industry, or whether such an industry is 
materially injured or threatened with material injury by reason of such 
imports. A negative ITC determination with respect to the investigation 
will result in the investigation being terminated; otherwise, this 
investigation will proceed according to statutory and regulatory time 
limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: July 18, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretaryfor Import Administration.

Attachment I

Scope of the Antidumping Duty Investigation

Laminated Woven Sacks from the People's Republic of China

The merchandise covered by this investigation is laminated woven sacks. 
Laminated woven sacks are bags or sacks consisting of one or more plies 
of fabric consisting of woven polypropylene strip and/or woven 
polyethylene strip; with or without an extrusion coating of 
polypropylene and/or polyethylene on one or both sides of the fabric; 
laminated by any method either to an exterior ply of plastic film such 
as biaxially-oriented polypropylene (``BOPP'') or to an exterior ply of 
paper that is suitable for high quality print graphics;\1\ printed with 
three colors or more in register; with or without lining; whether or 
not closed on one end; whether or not in roll form; with or without 
handles; with or without special closing features; not exceeding one 
kilogram in weight. Laminated woven bags are typically used for retail 
packaging of consumer goods such as pet foods and bird Seed.
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    \1\ ``Paper suitable for high quality print graphics,'' as used 
herein, means paper having an ISO brightness of 82 or higher and a 
Sheffield Smoothness of 250 or less. Coated free sheet is an example 
of a paper suitable for high quality print graphics.
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Effective July 1, 2007, laminated woven sacks are classifiable under 
Harmonized Tariff Schedule of the United States (``HTSUS'') subheadings 
6305.33.0050 and 6305.33.0080. Laminated woven sacks were previously 
classifiable under HTSUS subheading 6305.33.0020. If entered with 
plastic coating on both sides of the fabric consisting of woven 
polypropylene strip and/or woven polypropylene strip, laminated woven 
sacks may be classifiable under HTSUS subheadings 3923.21.0080, 
3923.21.0095, and 3923.29.0000. If entered not closed on one end or in 
roll form, laminated woven sacks may be classifiable under HTSUS 
subheading 5903.90.2500 and 3921.19.0000. Although HTSUS subheadings 
are provided for convenience and customs purposes, the written 
description of the scope of this investigation is dispositive.

Attachment II

Where it is not practicable to examine all known producers/exporters of 
subject merchandise, section 777A(c)(2) of the Tariff Act of 1930 (as 
amended) permits us to investigate 1) a sample of exporters, producers, 
or types of products that is statistically valid based on the 
information available at the time of selection, or 2) exporters and 
producers accounting for the largest volume and value of the subject 
merchandise that can reasonably be examined.
In the chart below, please provide the total quantity and total value 
of all your sales of merchandise covered by the scope of this 
investigation (See scope section of this notice), produced in the PRC, 
and exported/shipped to the United States during the period October 1, 
2006, through March 31, 2007.

----------------------------------------------------------------------------------------------------------------
                                          Total Quantity in
                Market                          Pieces               Terms of Sale             Total Value
----------------------------------------------------------------------------------------------------------------
United States........................
 
1. Export Price Sales................

[[Page 40838]]

 
2....................................
        a. Exporter Name.............
        b. Address...................
        c. Contact...................
        d. Phone No..................
        e. Fax No....................
3. Constructed Export Price Sales....
4. Further Manufactured..............
Total Sales..........................
----------------------------------------------------------------------------------------------------------------

Total Quantity:

      Please report quantity on a piece basis. If any 
conversions were used, please provide the conversion formula and 
source.

Terms of Sales:

      Please report all sales on the same terms (e.g., free on 
board).

Total Value:

      All sales values should be reported in U.S. dollars. 
Please indicate any exchange rates used and their respective dates and 
sources.

Export Price Sales:

      Generally, a U.S. sale is classified as an export price 
sale when the first sale to an unaffiliated person occurs before 
importation into the United States.
      Please include any sales exported by your company 
directly to the United States;
      Please include any sales exported by your company to a 
third-country market economy reseller where you had knowledge that the 
merchandise was destined to be resold to the United States.
      If you are a producer of subject merchandise, please 
include any sales manufactured by your company that were subsequently 
exported by an affiliated exporter to the United States.
      Please do not include any sales of merchandise 
manufactured in Hong Kong in your figures.

Constructed Export Price Sales:

      Generally, a U.S. sale is classified as a constructed 
export price sale when the first sale to an unaffiliated person occurs 
after importation. However, if the first sale to the unaffiliated 
person is made by a person in the United States affiliated with the 
foreign exporter, constructed export price applies even if the sale 
occurs prior to importation.
      Please include any sales exported by your company 
directly to the United States;
      Please include any sales exported by your company to a 
third-country market economy reseller where you had knowledge that the 
merchandise was destined to be resold to the United States.
      If you are a producer of subject merchandise, please 
include any sales manufactured by your company that were subsequently 
exported by an affiliated exporter to the United States.
      Please do not include any sales of merchandise 
manufactured in Hong Kong in your figures.

Further Manufactured:

      Further manufacture or assembly costs include amounts 
incurred for direct materials, labor and overhead, plus amounts for 
general and administrative expense, interest expense, and additional 
packing expense incurred in the country of further manufacture, as well 
as all costs involved in moving the product from the U.S. port of entry 
to the further manufacturer.
[FR Doc. E7-14370 Filed 7-24-07; 8:45 am]
Billing Code: 3510-DS-S