[Federal Register Volume 75, Number 16 (Tuesday, January 26, 2010)]
[Notices]
[Pages 4044-4046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-1512]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-833]


Polyester Staple Fiber From Taiwan: Initiation and Preliminary 
Results of Changed-Circumstances Antidumping Duty Administrative Review

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


[[Page 4045]]


SUMMARY: In response to a request from Far Eastern New Century 
Corporation, the Department of Commerce is initiating a changed-
circumstances review of the antidumping duty order on polyester staple 
fiber from Taiwan. We have preliminarily concluded that Far Eastern New 
Century Corporation is the successor-in-interest to Far Eastern Textile 
Limited and, as a result, should be accorded the same treatment 
previously accorded to Far Eastern Textile Limited with regard to the 
antidumping duty order on polyester staple fiber from Taiwan. 
Interested parties are invited to comment on these preliminary results.

DATES: Effective Date: January 26, 2010.

FOR FURTHER INFORMATION CONTACT: Michael A. Romani or Richard 
Rimlinger, AD/CVD Operations, Office 5, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
(202) 482-0198, or (202) 482-4477, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 25, 2000, the Department of Commerce (the Department) 
published in the Federal Register an antidumping duty order on 
polyester staple fiber from Taiwan. See Notice of Amended Final 
Determination of Sales at Less Than Fair Value: Certain Polyester 
Staple Fiber From the Republic of Korea and Antidumping Duty Orders: 
Certain Polyester Staple Fiber From the Republic of Korea and Taiwan, 
65 FR 33807 (May 25, 2000) (Antidumping Order). One of the companies 
subject to the investigation was Far Eastern Textile Limited (FET).\1\
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    \1\ Although the Department referred to FET as Far Eastern 
Corporation in the Antidumping Order and in a subsequent sunset 
review, in all other segments of the proceeding the Department has 
referred to FET as Far Eastern Textile Limited. See, e.g., Certain 
Polyester Staple Fiber From Taiwan: Final Results of Antidumping 
Duty Administrative Review, 74 FR 18348 (April 22, 2009).
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    FET has participated in several administrative reviews of the 
Antidumping Order. On December 4, 2009, FET notified the Department 
that on October 13, 2009, it had legally changed its name to Far 
Eastern New Century Corporation (FENC). At that time FET requested that 
the Department conduct a changed-circumstances review to determine 
whether FENC is the successor-in-interest to FET.

Scope of the Order

    The product covered by the order is certain polyester staple fiber 
(PSF). PSF is defined as synthetic staple fibers, not carded, combed or 
otherwise processed for spinning, of polyesters measuring 3.3 decitex 
(3 denier, inclusive) or more in diameter. This merchandise is cut to 
lengths varying from one inch (25 mm) to five inches (127 mm). The 
merchandise subject to the order may be coated, usually with a silicon 
or other finish, or not coated. PSF is generally used as stuffing in 
sleeping bags, mattresses, ski jackets, comforters, cushions, pillows, 
and furniture. Merchandise of less than 3.3 decitex (less than 3 
denier) currently classifiable in the Harmonized Tariff Schedule of the 
United States (HTSUS) at subheading 5503.20.00.20 is specifically 
excluded from the order. Also specifically excluded from the order are 
PSF of 10 to 18 denier that are cut to lengths of 6 to 8 inches (fibers 
used in the manufacture of carpeting). In addition, low-melt PSF is 
excluded from the order. Low-melt PSF is defined as a bi-component 
fiber with an outer sheath that melts at a significantly lower 
temperature than its inner core.
    The merchandise subject to the order is currently classifiable in 
the HTSUS at subheadings 5503.20.00.45 and 5503.20.00.65. Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the merchandise subject to the order is 
dispositive.

Initiation of Changed-Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.216, the Department will conduct a changed-
circumstances review upon receipt of information concerning, or a 
request from an interested party for a review of, an antidumping duty 
order which shows changed circumstances sufficient to warrant a review 
of the order. The information submitted by FENC claiming that FENC is 
the successor-in-interest to FET demonstrates changed circumstances 
sufficient to warrant such a review. See 19 CFR 351.216(d). Therefore, 
we are initiating a changed-circumstances review.

Analysis of Changed Circumstances

    In determining whether one company is the successor to another for 
purposes of applying the antidumping duty law, the Department examines 
a number of factors including, but not limited to, changes in 
management, production facilities, supplier relationships, and customer 
base. See Notice of Final Results of Changed Circumstances Antidumping 
Duty Administrative Review: Polychloroprene Rubber From Japan, 67 FR 58 
(January 2, 2002) (Japan Rubber), citing Brass Sheet and Strip From 
Canada; Final Results of Antidumping Duty Administrative Review, 57 FR 
20460 (May 13, 1992) (Canada Brass). Although no single or even several 
of these factors will necessarily provide a dispositive indication of 
succession, generally the Department will consider one company to be a 
successor to another company if its resulting operation is similar to 
that of its predecessor. See, e.g., Industrial Phosphoric Acid From 
Israel; Final Results of Antidumping Duty Changed Circumstances Review, 
59 FR 6944 (February 14, 1994); see also Canada Brass, 57 FR at 20460. 
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 prior company, the Department will assign 
the new company the cash-deposit rate of its predecessor. See Japan 
Rubber, 67 FR at 59; see also Circular Welded Non-Alloy Steel Pipe From 
Korea; Final Results of Antidumping Duty Changed Circumstances Review, 
63 FR 20572 (April 27, 1998) (finding successorship where the company 
only changed its name and did not change its operations).
    In its December 4, 2009, submission, FENC provided the following 
information to demonstrate that it is the successor-in-interest to FET: 
(1) A press release dated October 13, 2009, announcing the name change; 
(2) two disclosures to the Taiwan Stock Exchange dated October 13, 
2009, and October 20, 2009, announcing the name change and government 
approval thereof; (3) a certificate issued from the Bureau of Foreign 
Trade, Ministry of Economic Affairs, that states that the new English 
(and Chinese) names have been registered with the Bureau; (4) a letter 
from the Ministry of Economic Affairs approving the name change and 
amendment of Articles of Incorporation; (5) a letter from the Ministry 
of Economic Affairs approving FET's application to register the 
issuance of new shares (under the old name). See FENC's December 4, 
2009, submission at Exhibits 1-5.
    FENC's December 4, 2009, submission states that the only change is 
the name and that there have been no changes regarding FET's 
organization, ownership, management, production facilities, supplier 
relationships and customer base. See FENC's December 4, 2009, 
submission at 1-2. The press release at Exhibit 1 of FENC's December 4, 
2009, submission shows that the company publicly announced the fact 
that its shareholders had voted to

[[Page 4046]]

rename the company at a shareholder's meeting held on October 13, 2009. 
Operational changes mentioned in this announcement signaled that FENC 
would not only continue production but would expand and modernize 
operations for the production of subject merchandise. This conclusion 
is supported by the following three statements made by Chairman Hsu 
regarding his intentions toward the PSF industry: (1) ``to accelerate 
growth through internal expansions, technology innovations, as well as 
mergers and acquisitions;'' (2) ``to scale up its production of 
recyclable and/or bio-degradable products'' including ``recycled chips 
and recycled fibers,'' two inputs used in the production of PSF; 3) the 
dedication of staff ``to the upgrade of facilities in order to reduce 
the energy consumed in the production process.'' See FENC's December 4, 
2009, submission at Exhibit 1, at 1. These statements made in its press 
release support the contention that FENC operates as FET did. FENC's 
announced plans for expansion of production and investment in 
modernizing plant and equipment indicates that the company does not 
plan to divest itself of its current production facilities.
    Exhibit 2 of FENC's December 4, 2009, submission demonstrates 
FENC's disclosure of its name change and the government's approval 
thereof to the Taiwanese Stock Exchange on October 13, 2009, and 
October 20, 2009, respectively. Exhibit 3 of FENC's December 4, 2009, 
submission demonstrates certification of FENC's Chinese and English 
language name changes by the Taiwanese Bureau of Foreign Trade, 
Ministry of Economic Affairs, in a certification letter dated October 
28, 2009.
    Exhibit 4 of FENC's December 4, 2009, submission demonstrates that 
the government of Taiwan approved the name change and related changes 
to FET/FENC's Articles of Incorporation. In this exhibit, FENC 
submitted an approved request for the application for name change 
containing a ``Company Limited by Shares--Change Registration Form'' 
dated October 15, 2009. Taiwan's Ministry of Economic Affairs approved 
the name change and amendments to FENC's Articles of Incorporation on 
October 19, 2009 (reference number 09801241180). See FENC's December 4, 
2009, submission at Exhibit 4, at 8. Exhibit 5 demonstrates that the 
government of Taiwan registered the issuance of new shares of stock 
while the company was still named FET on September 16, 2009. Both 
exhibits include ``Company Limited by Shares--Change Registration 
Forms'' and these forms from before and after the name change include 
identical unified business numbers, addresses, legal representatives, 
capital, directors, managers, officers, and business scope. See FENC's 
December 4, 2009, submission at Exhibit 4, at 9-14; see also FENC's 
December 4, 2009, submission at Exhibit 5, at 9-14. According to FENC's 
December 4, 2009, submission, the legal status of companies 
incorporated in Taiwan is substantiated by the ``Company Limited by 
Shares--Change Registration Form'' issued by the Ministry of Economic 
Affairs. See FENC's December 4, 2009, submission at 2.

Preliminary Results of the Review

    When it concludes that expedited action is warranted, the 
Department may publish the notice of initiation and preliminary results 
for a changed-circumstances review concurrently. See 19 CFR 
351.221(c)(3)(ii). See also Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review: Canned Pineapple Fruit 
From Thailand, 69 FR 30878 (June 1, 2004). Based on the information on 
the record, we have determined that expedition of this changed-
circumstances review is warranted. In this case, based on the analysis 
discussed above, we preliminarily find that FENC is the successor-in-
interest to FET and, as such, is entitled to FET's cash-deposit rate 
with respect to entries of subject merchandise.

Public Comment

    Any interested party may request a hearing within 14 days of 
publication of this notice. See 19 CFR 351.310(c). Any hearing, if 
requested, will be held 28 days after the date of publication of this 
notice or the first working day thereafter. Interested parties may 
submit case briefs and/or written comments not later than 14 days after 
the date of publication of this notice. Rebuttal briefs and rebuttals 
to written comments, which must be limited to issues raised in such 
briefs or comments, may be filed not later than 21 days after the date 
of publication of this notice. Parties who submit case briefs or 
rebuttal briefs in this changed-circumstances review are requested to 
submit with each argument (1) a statement of the issue and (2) a brief 
summary of the argument with an electronic version included. Consistent 
with 19 CFR 351.216(e), we will issue the final results of this 
changed-circumstances review no later than 270 days after the date on 
which this review was initiated or within 45 days of publication of 
these preliminary results if all parties agree to our preliminary 
finding.
    We are issuing and publishing this notice of initiation and 
preliminary results in accordance with sections 751(b)(1) and 777(i)(1) 
of the Act and 19 CFR 351.216 and 351.221(c)(3).

    Dated: January 19, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-1512 Filed 1-25-10; 8:45 am]
BILLING CODE 3510-DS-P