[Federal Register Volume 73, Number 122 (Tuesday, June 24, 2008)]
[Notices]
[Pages 35646-35649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-14266]



[[Page 35646]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-916]


Laminated Woven Sacks from the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value and Partial Affirmative 
Determination of Critical Circumstances

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

EFFECTIVE DATE: June 24, 2008.
SUMMARY: On January 31, 2008, the Department of Commerce (the 
``Department'') published its preliminary determination of sales at 
less than fair value (``LTFV'') in the antidumping investigation of 
laminated woven sacks (``LWS'') from the People's Republic of China 
(``PRC''). The period of investigation (``POI'') is October 1, 2006, to 
March 31, 2007. We invited interested parties to comment on our 
preliminary determination of sales at LTFV. Based on our analysis of 
the comments we received, we have made changes to our calculations for 
the mandatory respondents. We determine that LWS from the PRC are 
being, or are likely to be, sold in the United States at LTFV as 
provided in section 735 of the Tariff Act of 1930, as amended (``the 
Act''). The estimated margins of sales at LTFV are shown in the ``Final 
Determination Margins'' section of this notice.

FOR FURTHER INFORMATION CONTACT: Javier Barrientos, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230; telephone: (202) 482-2243.

SUPPLEMENTARY INFORMATION:

Case History

    The Department published its preliminary determination of sales at 
LTFV on January 31, 2008. See Laminated Woven Sacks From the People's 
Republic of China: Preliminary Determination of Sales at Less Than Fair 
Value, Partial Affirmative Determination of Critical Circumstances, and 
Postponement of Final Determination, 73 FR 5801 (January 31, 2008) 
(``Preliminary Determination'').
    We issued Aifudi\1\ and SSJ\2\ additional supplemental 
questionnaires on January 28, 2008, and January 31, 2008, respectively. 
We received Aifudi's's response on February 29, 2008. On February 15, 
2008, SSJ submitted a letter stating that it was not responding to the 
questionnaire.
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    \1\ Zibo Aifudi Plastic Packaging Co., Ltd. (``Aifudi'').
    \2\ Shouguang Jianyuanchun Co., Ltd. (``SSJ'').
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    Between March 31 and April 11, 2008, the Department conducted 
verifications of Aifudi and its constructed export price (CEP) 
entities. See the ``Verification'' section below for additional 
information.
    We invited parties to comment on the Preliminary Determination. On 
May 14, 2008, Petitioners and Aifudi filed case briefs. On May 19, 
2008, Petitioners\3\ and Aifudi submitted rebuttal briefs.
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    \3\ 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.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the ``Investigation of Laminated 
Woven Sacks from the People's Republic of China: Issues and Decision 
Memorandum,'' dated June 16, 2008 (``Issues and Decision Memorandum''), 
which is hereby adopted by this notice. A list of the issues which 
parties raised and to which we respond in the Issues and Decision 
Memorandum is attached to this notice as an Appendix. The Issues and 
Decision Memorandum is a public document and is on file in the Central 
Records Unit (``CRU''), Main Commerce Building, Room 1217, and is 
accessible on the Web at http://www.trade.gov/ia. The paper copy and 
electronic version of the memorandum are identical in content.

Changes Since the Preliminary Determination and Amended Preliminary 
Determination

    Based on our analysis of information on the record of this 
investigation, and comments received from the interested parties, we 
have made changes to the margin calculations for Aifudi. For SSJ, see 
Use of Facts Available section below. For Aifudi, we have determined 
that printing cylinders are not a factor of production, and should be 
treated as factory overhead. For further details, see Issues and 
Decision Memorandum at Comment 1. We have also revalued several of the 
surrogate values used in the Preliminary Determination. The values that 
were modified for this final determination are the surrogate financial 
ratios and the wage rate. For further details, see Issues and Decision 
Memorandum at Comments 2 and 4, and Memorandum to the File from Javier 
Barrientos, through Alex Villanueva, Program Manager, AD/CVD 
Operations, Office 9, and James C. Doyle, Director, AD/CVD Operations, 
Office 9: Laminated Woven Sacks from the People's Republic of China: 
Surrogate Values for the Final Determination, dated June 16, 2008 
(``Final Surrogate Value Memo'').
    In addition, we have incorporated, where applicable, post-
preliminary clarifications based on verification and made certain 
clerical error corrections for Aifudi. For further details on these 
company-specific changes, see Issues and Decision Memorandum at 
Comments 8 and 9; see also Memorandum to the File from Javier 
Barrientos, through Alex Villanueva, Program Manager, AD/CVD 
Operations, Office 9: Laminated Woven Sacks from the People's Republic 
of China: Analysis of Zibo Aifudi Plastic packaging Co., Ltd., for the 
Final Determination, dated June 16, 2008 (``Aifudi Final Analysis 
Memo'').

Scope of Investigation

    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, regardless of the width of the 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;\4\ 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 (including sheets, lay-flat tubing, and 
sleeves); with or without handles; with or without special closing 
features; not exceeding one kilogram in weight. Laminated woven sacks 
are typically used for retail packaging of consumer goods such as pet 
foods and bird seed.
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    \4\ ``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

[[Page 35647]]

consisting of woven polypropylene strip and/or woven polyethylene 
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 (including sheets, lay-flat 
tubing, and sleeves), laminated woven sacks may be classifiable under 
other HTSUS subheadings including 3917.39.0050, 3921.90.1100, 
3921.90.1500, and 5903.90.2500. If the polypropylene strips and/or 
polyethylene strips making up the fabric measure more than 5 
millimeters in width, laminated woven sacks may be classifiable under 
other HTSUS subheadings including 4601.99.0500, 4601.99.9000, and 
4602.90.000. Although HTSUS subheadings are provided for convenience 
and customs purposes, the written description of the scope of this 
investigation is dispositive.

Use of Facts Available

    Section 776(a)(2) of the Tariff Act of 1930, as amended (``the 
Act''), provides that, if an interested party: (A) withholds 
information that has been requested by the Department; (B) fails to 
provide such information in a timely manner or in the form or manner 
requested subject to sections 782(c)(1) and (e) of the Act; (C) 
significantly impedes a proceeding under the antidumping statute; or 
(D) provides such information but the information cannot be verified, 
the Department shall, subject to subsection 782(d) of the Act, use 
facts otherwise available in reaching the applicable determination.
    Section 782(c)(1) of the Act provides that if an interested party 
``promptly after receiving a request from {the Department{time}  for 
information, notifies {the Department{time}  that such party is unable 
to submit the information requested in the requested form and manner, 
together with a full explanation and suggested alternative form in 
which such party is able to submit the information,'' the Department 
may modify the requirements to avoid imposing an unreasonable burden on 
that party.
    Section 782(d) of the Act provides that, if the Department 
determines that a response to a request for information does not comply 
with the request, the Department will inform the person submitting the 
response of the nature of the deficiency and shall, to the extent 
practicable, provide that person the opportunity to remedy or explain 
the deficiency. If that person submits further information that 
continues to be unsatisfactory, or this information is not submitted 
within the applicable time limits, the Department may, subject to 
section 782(e), disregard all or part of the original and subsequent 
responses, as appropriate.
    Section 782(e) of the Act states that the Department shall not 
decline to consider information deemed ``deficient'' under section 
782(d) if: (1) the information is submitted by the established 
deadline; (2) the information can be verified; (3) the information is 
not so incomplete that it cannot serve as a reliable basis for reaching 
the applicable determination; (4) the interested party has demonstrated 
that it acted to the best of its ability; and (5) the information can 
be used without undue difficulties.
    Furthermore, section 776(b) of the Act states that if the 
Department ``finds that an interested party has failed to cooperate by 
not acting to the best of its ability to comply with a request for 
information from the administering authority or the Commission, the 
administering authority or the Commission ..., in reaching the 
applicable determination under this title, may use an inference that is 
adverse to the interests of that party in selecting from among the 
facts otherwise available.'' See also Statement of Administrative 
Action (SAA) accompanying the Uruguay Round Agreements Act (URAA), H.R. 
Rep. No. 103-316, Vol. 1 at 870 (1994).
    For this final determination, in accordance with sections 
776(a)(2)(A) through (D) of the Act, we have determined that the use of 
adverse facts available (``AFA'') is warranted for SSJ because of its 
refusal to answer the Department's supplemental questionnaire. See 
Issues and Decision Memorandum at Comment 7. As total AFA, we are 
applying the petition rate to SSJ.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by Aifudi for use in our final determination. See 
Aifudi Verification Report. For all verified companies, we used 
standard verification procedures, including examination of relevant 
accounting and production records, as well as original source documents 
provided by respondents.

Surrogate Country

    In the Preliminary Determination, we stated that we had selected 
India as the appropriate surrogate country to use in this investigation 
for the following reasons: (1) it is a significant producer of 
comparable merchandise; (2) it is at a similar level of economic 
development pursuant to 773(c)(4) of the Act; and (3) we have reliable 
data from India that we can use to value the factors of production. See 
Preliminary Determination. For the final determination, we received no 
comments and made no changes to our findings with respect to the 
selection of a surrogate country.

Separate Rates

    In proceedings involving non-market-economy (``NME'') countries, 
the Department begins with a rebuttable presumption that all companies 
within the country are subject to government control and, thus, should 
be assigned a single antidumping duty deposit rate. It is the 
Department's policy to assign all exporters of merchandise subject to 
an investigation in an NME country this single rate unless an exporter 
can demonstrate that it is sufficiently independent so as to be 
entitled to a separate rate. See Final Determination of Sales at Less 
Than Fair Value: Sparklers from the People's Republic of China, 56 FR 
20588 (May 6, 1991) (``Sparklers''), as amplified by Notice of Final 
Determination of Sales at Less Than Fair Value: Silicon Carbide from 
the People's Republic of China, 59 FR 22585 (May 2, 1994) (``Silicon 
Carbide''), and Section 351.107(d) of the Department's regulations. In 
the Preliminary Determination, we found that Aifudi, SSJ, and the 
separate rate applicants who received a separate rate (``Separate Rate 
Applicants'') demonstrated their eligibility for separate-rate status. 
For all the same reasons, in the final determination, we continue to 
find that the evidence placed on the record of this investigation by 
Aifudi and the Separate Rate Applicants demonstrate both a de jure and 
de facto absence of government control, with respect to their 
respective exports of the merchandise under investigation, and, thus 
are eligible for separate rate status. With respect to SSJ, because SSJ 
refused to answer our supplemental questionnaires and stopped 
participating in the investigation, its responses, including its 
eligibility for separate status, were incomplete and could not be 
verified. Accordingly, we now consider SSJ part of the PRC-wide entity. 
Moreover, the Department's application of facts available to SSJ 
contributes to the application of facts available applied against the 
PRC-wide entity, as described herein.

The PRC-Wide Rate

    In the Preliminary Determination, the Department found that certain 
companies and the PRC-wide entity did not respond to our requests 
information. In the Preliminary Determination, we

[[Page 35648]]

treated these PRC producers/exporters as part of the PRC-wide entity 
because they did not demonstrate that they operate free of government 
control over their export activities. No additional information has 
been placed on the record with respect to these entities after the 
Preliminary Determination. The PRC-wide entity, including SSJ for this 
final determination, has not provided the Department with the requested 
information; therefore, pursuant to sections 776(a)(2)(A) through (D) 
of the Act, the Department continues to find that the use of facts 
available is appropriate to determine the PRC-wide rate. Section 776(b) 
of the Act provides that, in selecting from among the facts otherwise 
available, the Department may employ an adverse inference if an 
interested party fails to cooperate by not acting to the best of its 
ability to comply with requests for information. See Notice of Final 
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled 
Flat-Rolled Carbon-Quality Steel Products from the Russian Federation, 
65 FR 5510, 5518 (February 4, 2000). See also, SAA at 870. We 
determined that, because the PRC-wide entity did not respond to our 
requests for information, it has failed to cooperate to the best of its 
ability. Therefore, the Department finds that, in selecting from among 
the facts otherwise available, an adverse inference is appropriate for 
the PRC-wide entity.
    Because we begin with the presumption that all companies within a 
NME country are subject to government control and because only the 
companies listed under the ``Final Determination Margins'' section 
below have overcome that presumption, we are applying a single 
antidumping rate - the PRC-wide rate - to all other exporters of 
subject merchandise from the PRC. Such companies did not demonstrate 
entitlement to a separate rate. See, e.g., Synthetic Indigo from the 
People's Republic of China: Notice of Final Determination of Sales at 
Less Than Fair Value, 65 FR 25706 (May 3, 2000). The PRC-wide rate 
applies to all entries of subject merchandise except for Aifudi and the 
Separate Rate Applicants which are listed in the ``Final Determination 
Margins'' section below.

Critical Circumstances

    In the Preliminary Determination, we found that there had been 
massive imports of the subject merchandise over a relatively short 
period for Aifudi and the Separate Rate Applicants. In addition, we 
found that there had not been massive imports of the subject 
merchandise over a relatively short period for SSJ and the PRC-wide 
entity. In the Preliminary Determination, we relied on a comparison 
period of four months, which was the maximum duration for the 
information we had available at that time, for determining whether 
imports of the subject merchandise were massive.
    For the final determination, however, we collected an additional 
three months of data from Aifudi. After analyzing the additional data, 
we continue to find that Aifudi and the Separate Rate Applicants had 
massive imports of LWS over a relatively short period of time. See 
Memorandum to the File from Javier Barrientos, Senior Case Analyst: 
Critical Circumstances Data for the Final Determination of Antidumping 
Duty Investigation of Laminated Woven Sacks from the People's Republic 
of China, dated June 16, 2008, at Attachment I (``CC MTF''). In 
reviewing the data, we find no reason to believe that the HTS 
categories used in this case are overly broad for this purpose. 
Additionally, we find that the PRC-wide entity (including SSJ) did not 
have massive imports of LWS over a relatively short period of time. Id.

Corroboration

    Pursuant to section 776(c) of the Act, we corroborated the petition 
rate of 91.73 percent by comparing the petition margin to the 
individual CONNUM margins for Aifudi. See Aifudi Final Analysis 
Memorandum at Attachment I. We found that since the petition margin of 
91.73 percent was within the range of CONNUM margins, we find that the 
margin of 91.73 percent has probative value. Accordingly, we find that 
the rate of 91.73 percent is corroborated to the extent practicable 
within the meaning of section 776(c) of the Act.

Final Determination Margins

    We determine that the following percentage weighted-average margins 
exist for the POI:

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                                                                                                Weight--Average
                Exporter                                       Producer                             Margin
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ZIBO AIFUDI PLASTIC PACKAGING CO., LTD..             ZIBO AIFUDI PLASTIC PACKAGING CO., LTD.              64.28%
POLYWELL INDUSTRIAL CO., a.k.a. FIRST                       POLYWELL PLASTIC PRODUCT FACTORY              64.28%
 WAY (H.K.) LIMITED.....................
ZIBO LINZI WORUN PACKING PRODUCT CO.,             ZIBO LINZI WORUN PACKING PRODUCT CO., LTD.              64.28%
 LTD....................................
SHANDONG QIKAI PLASTICS PRODUCT CO.,               SHANDONG QIKAI PLASTICS PRODUCT CO., LTD.              64.28%
 LTD....................................
CHANGLE BAODU PLASTIC CO. LTD...........                      CHANGLE BAODU PLASTIC CO. LTD.              64.28%
ZIBO LINZI SHUAIQIANG PLASTICS CO. LTD..             ZIBO LINZI SHUAIQIANG PLASTICS CO. LTD.              64.28%
ZIBO LINZI QITIANLI PLASTIC FABRIC CO.           ZIBO LINZI QITIANLI PLASTIC FABRIC CO. LTD.              64.28%
 LTD....................................
SHANDONG YOULIAN CO. LTD................                            SHANDONG YOULIAN CO. LTD              64.28%
ZIBO LINZI LUITONG PLASTIC FABRIC CO.             ZIBO LINZI LUITONG PLASTIC FABRIC CO. LTD.              64.28%
 LTD....................................
WENZHOU HOTSON PLASTICS CO. LTD.........                     WENZHOU HOTSON PLASTICS CO. LTD              64.28%
JIANGSU HOTSON PLASTICS CO. LTD.........                    JIANGSU HOTSON PLASTICS CO. LTD.              64.28%
CANGNAN COLOR MAKE THE BAG..............                          CANGNAN COLOR MAKE THE BAG              64.28%
ZIBO QIGAO PLASTIC CEMENT CO. LTD.......                   ZIBO QIGAO PLASTIC CEMENT CO. LTD              64.28%
PRC-WIDE RATE...........................  ..................................................              91.73%
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Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we will instruct U.S. 
Customs and Border
    Protection (``CBP'') to continue to suspend liquidation of all 
entries of subject merchandise from the PRC-wide entity entered, or 
withdrawn from warehouse, for consumption on or after January 31, 2008, 
the date of publication of the Preliminary Determination. CBP shall 
continue to require a cash deposit or the posting of a bond equal to 
the estimated amount by which the normal value exceeds the U.S. price 
as shown above.

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    The Department continues to find that critical circumstances exist 
for Aifudi and the Separate Rate Applicants and therefore we will 
instruct CBP to continue to suspend liquidation of all entries of 
subject merchandise from Aifudi and the Separate Rate Applicants 
entered, or withdrawn from warehouse, for consumption on or after 
November 2, 2007, which is 90 days prior to the date of publication of 
the preliminary determination. CBP shall continue to require a cash 
deposit equal to the estimated amount by which the normal value exceeds 
the U.S. price as shown above. These instructions suspending 
liquidation will remain in effect until further notice.
    In accordance with the preliminary affirmative determination of 
critical circumstances, we instructed CBP to suspend liquidation of all 
entries of the subject merchandise for Aifudi, which were entered or 
withdrawn from warehouse, on or after November 2, 2007, which is 90 
days prior to January 31, 2008, the date of publication of the 
Preliminary Determination in the Federal Register. Because we do not 
find critical circumstances for the PRC-wide entity, including SSJ, for 
this final determination, we will instruct CBP to terminate suspension 
of liquidation, and release any cash deposits or bonds, on imports with 
respect to SSJ during the 90 day period prior to the date of 
publication of the Preliminary Determination.

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our final determination of 
sales at LTFV. As our final determination is affirmative, in accordance 
with section 735(b)(2) of the Act, within 45 days the ITC will 
determine whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports or sales (or the likelihood of sales) for importation of the 
subject merchandise. If the ITC determines that material injury or 
threat of material 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 CBP 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.

Notification Regarding APO

    This notice also serves as a reminder to the 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 or 
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 and 
notice are issued and published in accordance with sections 735(d) and 
777(i)(1) of the Act.
    This determination and notice are issued and published in 
accordance with sections 735(d) and 777(i)(1) of the Act.

    Dated: June 16, 2008.
Stephen Claeys,
Acting Assistant Secretary for Import Administration.

Appendix I

Comment 1: Printing Cylinders
Comment 2: Ink Surrogate Value
Comment 3: BOPP Surrogate Value
Comment 4: Labor Surrogate Value
Comment 5: Boxes Surrogate Value
Comment 6: Surrogate Financial Ratios
Comment 7: Total AFA for SSJ
Comment 8: Billing Adjustments
Comment 9: Conversion Factor for Certain Inputs
[FR Doc. E8-14266 Filed 6-23-08; 8:45 am]
BILLING CODE 3510-DS-S