[Federal Register Volume 74, Number 178 (Wednesday, September 16, 2009)]
[Notices]
[Pages 47555-47557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22340]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-059]


Pressure Sensitive Plastic Tape From Italy: Notice of Initiation 
of Antidumping Duty Changed Circumstances Review

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


DATES: Effective Date: September 16, 2009.
SUMMARY: In response to a request from Evotape Packaging S.r.l. 
(Evotape Packaging), a producer/exporter of pressure sensitive plastic 
tape from Italy, and pursuant to section 751(b) of the Tariff Act of 
1930, as amended (the Act), and 19 CFR 351.216 and 351.221(c)(3), the 
Department is initiating a changed circumstances review of the 
antidumping duty finding

[[Page 47556]]

on pressure sensitive plastic tape from Italy. This review is being 
conducted to determine whether there is a successor-in-interest to Tyco 
Adhesives Italia S.p.A. (Tyco) for purposes of determining antidumping 
liability.

FOR FURTHER INFORMATION CONTACT: Terre Keaton Stefanova or Rebecca 
Trainor, AD/CVD Operations, Office 2, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
(202) 482-1280 and (202) 482-4007, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 27, 2009, pursuant to section 751(b) of the Act and 19 CFR 
351.216 and 351.221(c)(3), Evotape Packaging requested that the 
Department conduct a changed circumstances review to determine that it 
is the successor-in-interest to Tyco,\1\ and therefore assign to it 
Tyco's antidumping duty deposit rate for future entries of subject 
merchandise. In addition, Evotape Packaging requested that the 
Department expedite this review in accordance with 19 CFR 
351.221(c)(3)(ii), by issuing the notice of initiation and preliminary 
determination simultaneously within 45 days of the filing of the 
request. Evotape Packaging further requested that the Department issue 
a final affirmative changed circumstances determination within 45 days 
of initiation, in accordance with 19 CFR 351.216(e).
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    \1\ On March 25, 2004, the Department determined that Tyco was 
the successor-in-interest to Manuli Tapes S.p.A. (Manuli). See Final 
Results of Antidumping Duty Changed Circumstances Review: Pressure 
Sensitive Plastic Tape from Italy, 69 FR 15297 (March 25, 2004).
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    On August 28, 2009, at the request of the Department, Evotape 
Packaging submitted additional information pertaining to its changed 
circumstances review request.

Scope of the Finding

    The products covered by the finding are shipments of pressure 
sensitive plastic tape measuring over one and three-eighths inches in 
width and not exceeding four millimeters in thickness, currently 
classifiable under subheadings 3919.90.20 and 3919.90.50 of the 
Harmonized Tariff Schedule of the United States (HTSUS). The HTSUS 
subheadings are provided for convenience and for customs purposes. The 
written description remains dispositive.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Act, the Department will 
conduct a changed circumstance review upon receipt of a request from an 
interested party or receipt of information concerning an antidumping 
duty order \2\ which shows changed circumstances sufficient to warrant 
a review of the order.
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    \2\ Prior to the Trade Agreements Act of 1979 (1979 Act), Public 
Law 96-39, the Treasury Department issued antidumping ``findings.'' 
Section 106(a) of the 1979 Act expressly preserved the existing 
antidumping ``findings'' in the new law, but provided that after 
January 1, 1980, the Tariff Act of 1930 would be amended to require 
the Department to issue antidumping ``orders'' instead of 
``findings.''
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    As noted above, on July 27, 2009, Evotape Packaging submitted its 
request for a changed circumstances review. With its request, Evotape 
Packaging submitted certain information to demonstrate that in May 
2005, its parent company (Evotape S.p.A) acquired Tyco's business and 
assets, which included two production units (packaging and masking 
tape) and related sales offices; and that in December 2007, Evotape 
S.p.A restructured the company and created two wholly-owned 
subsidiaries (i.e., Evotape Packaging and Evotape Masking S.r.l. 
(Evotape Masking)) using the assets and business of the two production 
units. Evotape Packaging also provided information pertaining to 
management, production facilities, supplier relationships and customer 
base with respect to the production and sale of subject merchandise 
during the 2005 acquisition and 2007 restructuring. In its August 28, 
2009, response to the Department's request for information, Evotape 
Packaging provided information regarding the business operations of 
Evotape Masking.
    In its request, Evotape Packaging claims that it operates as the 
same business entity as Tyco with respect to merchandise exported to 
the United States,\3\ and that its production facilities have not 
changed since it was part of Tyco. In addition, it claims that its 
product line, supplier relations, employees and customer base have 
remained largely the same, and although there were certain changes in 
management, these changes did not have a substantial impact on the 
production and sale of subject merchandise.
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    \3\ Evotape Packaging states that it is the former production 
unit of Tyco that produces and sells pressure sensitive plastic tape 
to the United States, i.e., merchandise subject to the antidumping 
duty finding. According to Evotape Packaging, Evotape Masking 
produces two products that fall within the scope of this finding, 
which Tyco also produced when it was in existence. However, Evotape 
Packaging states that Evotape Masking does not ship or sell these 
products to the United States, and has no future plans to do so.
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    Based on the information submitted by Evotape Packaging and in 
accordance with section 19 CFR 351.216, the Department finds there is 
sufficient information to warrant initiating a changed circumstances 
review. Therefore, pursuant to section 751(b)(1) of the Act and 19 CFR 
351.216, we are initiating a changed circumstances review to determine 
whether there is a successor-in-interest to Tyco.
    In making a successor-in-interest determination in antidumping 
proceedings, the Department typically examines several factors 
including, but not limited to: (1) Management; (2) production 
facilities; (3) supplier relationships; and (4) customer base. See, 
e.g., Notice of Final Results of Changed Circumstances Antidumping Duty 
Administrative Review: Polychloroprene Rubber from Japan, 67 FR 58 
(January 2, 2002) (Polychloroprene Rubber from Japan); Brass Sheet and 
Strip from Canada; Final Results of Antidumping Duty Administrative 
Review, 57 FR 20460 (May 13, 1992) (Canadian Brass). While no single 
factor or combination of these factors will necessarily be dispositive, 
the Department will generally consider the new company to be the 
successor to the previous company if its resulting operation is not 
materially dissimilar to that of its predecessor. See, e.g., 
Polychloroprene Rubber from Japan; Industrial Phosphoric Acid from 
Israel: Final Results of Changed Circumstances Review, 59 FR 6944 
(February 14, 1994); Canadian Brass; Fresh and Chilled Atlantic Salmon 
from Norway: Initiation and Preliminary Results of Changed 
Circumstances Antidumping Duty Administrative Review, 63 FR 50880 
(September 23, 1998) (unchanged in final results, Fresh and Chilled 
Atlantic Salmon From Norway; Final Results of Changed Circumstances 
Antidumping Duty Administrative Review, 64 FR 9979 (March 1, 1999)). 
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 the former company, the Department will 
generally accord the new company the same antidumping duty treatment as 
its predecessor.
    Although Evotape Packaging has submitted information which is 
sufficient for purposes of initiating a changed circumstances review, 
as discussed above, this information is not a sufficient basis to make 
a preliminary successor-in-interest determination at

[[Page 47557]]

this time. Specifically, the Department has questions concerning the 
restructuring discussed above with respect to the business operations 
of Evotape Masking and Evotape Packaging. It appears from the 
information on the record that both companies use facilities once owned 
by Tyco (and before Tyco, by Manuli). Manuli/Tyco's antidumping duty 
margin may have been calculated based on information derived from all 
of these facilities. Therefore, a determination of a successor-in-
interest, for purpose of antidumping liability, requires the Department 
to gather further information before it can make a preliminary 
successor-in-interest determination.
    Accordingly, the Department has determined that it would be 
inappropriate to expedite this action by combining the preliminary 
results of review with this notice of initiation, as permitted under 19 
CFR 351.221(c)(3)(ii) and as requested by Evotape Packaging. As a 
result, the Department is not issuing preliminary results for this 
changed circumstances review at this time.
    The Department will request additional information in accordance 
with 19 CFR 351.221(b)(2), and will publish in the Federal Register a 
notice of preliminary results of the changed circumstances review, in 
accordance with 19 CFR 351.221(b)(4) and (c)(3)(i), which will set 
forth the factual and legal conclusions upon which our preliminary 
results are based and a description of any action proposed. Interested 
parties will have an opportunity to comment on the preliminary results 
of review. In accordance with 19 CFR 351.216(e), the Department will 
issue the final results of this antidumping duty 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 
results.
    During the course of this antidumping duty changed circumstances 
review, cash deposit requirements for the subject merchandise produced 
and exported by Evotape Packaging will continue to be the all-others 
rate established in the investigation. See Pressure Sensitive Plastic 
Tape From Italy; Determination of Injury or Likelihood Thereof, 42 FR 
44853 (September 7, 1977). The cash deposit rate requirement will be 
altered, if warranted, pursuant only to the final results of this 
review.
    This notice of initiation is in accordance with sections 751(b)(1) 
and 777(i) of the Act and 19 CFR 351.216 and 351.221(c)(3).

    Dated: September 10, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. E9-22340 Filed 9-15-09; 8:45 am]
BILLING CODE 3510-DS-P