[Federal Register Volume 75, Number 32 (Thursday, February 18, 2010)]
[Notices]
[Pages 7244-7254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3128]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-952]


Narrow Woven Ribbons with Woven Selvedge from the People's 
Republic of China: Preliminary Determination of Sales at Less Than Fair 
Value and Postponement of Final Determination

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

EFFECTIVE DATE: February 18, 2010.
SUMMARY: The Department of Commerce (the ``Department'') preliminarily 
determines that narrow woven ribbons with woven selvedge (``narrow 
woven ribbons'') from the People's Republic of China (``PRC'') are 
being, or are likely to be, sold in the United States at less than fair 
value (``LTFV''), as provided in section 733 of the Tariff Act of 1930, 
as amended (the ``Act''). The estimated dumping margins are shown in 
the ``Preliminary Determination'' section of this notice. Interested 
parties are invited to comment on the preliminary determination.

FOR FURTHER INFORMATION CONTACT: Zhulieta Willbrand or Karine Gziryan, 
AD/CVD Operations, Office 4, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
3147 and (202) 482-4081, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 9, 2009, the Department received petitions concerning 
imports of narrow woven ribbons from the PRC and Taiwan filed in proper 
form by Berwick Offray LLC and its wholly-owned subsidiary Lion Ribbon 
Company, Inc. (collectively, ``Petitioner''). See Petitions for the 
Imposition of Antidumping and Countervailing Duties on Narrow Woven 
Ribbons with Woven Selvedge from the People's Republic of China and 
Taiwan, dated July 9, 2009 (the ``Petition''). The Department initiated 
an antidumping duty investigation of narrow woven ribbons from the PRC 
and Taiwan on July 29, 2009. See Narrow Woven Ribbons with Woven 
Selvedge from the People's Republic of China and Taiwan: Initiation of 
Antidumping Duty Investigations, 74 FR 39291 (August 6, 2009) 
(``Initiation Notice'').
    In the Initiation Notice, the Department stated that it intended to 
select PRC respondents based on quantity and value (``Q&V'')

[[Page 7245]]

questionnaires. See Initiation Notice, 74 FR at 39296. On July 30, 
2009, the Department requested Q&V information from the 86 companies 
identified by Petitioner in the Petition as potential producers or 
exporters of narrow woven ribbons from the PRC. See Letter from Robert 
Bolling, Program Manager, AD/CVD Operations, Office 4, to All 
Interested Parties, ``Antidumping Duty Investigation of Narrow Woven 
Ribbons with Woven Selvedge from the People's Republic of China: 
Quantity and Value Questionnaire'' (July 30, 2009). Additionally, the 
Department posted the Q&V questionnaire for this investigation on its 
website at http://ia.ita.doc.gov/ia-highlights-and-news.html. The 
Department received timely responses to its Q&V questionnaire from the 
following 19 companies: Beauty Horn Investment Limited (``Beauty 
Horn''); Billion Trend International Ltd.; Dongguan Yi Sheng Decoration 
Co., Ltd.; Fujian Rongshu Industry Co., Ltd. (``Fujian Rongshu''); 
Guangzhou Complacent Weaving Co., Ltd. (``Guangzhou Complacent''); 
Ningbo Huarui Import & Export Co., Ltd.; Ningbo Jinfeng Thread & Ribbon 
Co. Ltd.; Ningbo Jintian Import & Export Co., Ltd. (``Ningbo 
Jintian''); Ningbo MH Industry Co., Ltd. (``Ningbo MH''); Ningbo V.K. 
Industry & Trading Co., Ltd. (``Ningbo V.K.''); Stribbons (Guangzhou) 
Ltd. (``Stribbons''); Stribbons (Nan Yang) Ltd.; Tensen International 
Trading Ltd.; Tianjin Sun Ribbon Co., Ltd. (``Sun Ribbon''); Weifang 
Dongfang Ribbon Weaving Co., Ltd. (``Weifang Dongfang''); Weifang Yu 
Yuan Textile Co., Ltd. (``Weifang Yu Yuan''); Xiamen Yi He Textile Co., 
Ltd. (``Xiamen Yi He''); Yangzhou Bestpak Gifts & Crafts Co., Ltd. 
(``Yangzhou Bestpak''); and Yama Ribbons and Bows Co., Ltd. (``Yama 
Ribbons''). See Memorandum from Maisha Cryor, International Trade 
Analyst, AD/CVD Operations, Office 4, to John M. Andersen, Acting 
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, ``Respondent Selection in the Antidumping Investigation of 
Narrow Woven Ribbons With Woven Selvedge from the People's Republic of 
China'' (September 11, 2009) (``Respondent Selection Memorandum'').
    On August 18, 2009, we received comments from Petitioner regarding 
product characteristics. On August 25, 2009, we received rebuttal 
comments from Shienq Huong Enterprise Co., Ltd. (``Shieng Huong'') 
regarding product characteristics. On September 3, 2009, we received 
additional comments from Petitioner regarding product characteristics. 
On September 9, 2009, we received additional rebuttal comments from 
Shienq Hong. On September 21, 2009, we received additional comments 
from Petitioner regarding product characteristics. On September 24, 
2009, the Department released revised product characteristics. On 
October 30, 2009, Petitioner submitted comments on the Department's 
revised product characteristics.
    On September 1, 2009, the International Trade Commission (``ITC'') 
preliminarily determined that there is a reasonable indication that an 
industry in the United States is materially injured by reason of 
imports of narrow woven ribbons from the PRC and Taiwan. See Narrow 
Woven Ribbons With Woven Selvedge From China and Taiwan, Investigation 
Nos. 701-TA-467 and 731-TA-1164-1165 (Preliminary), 74 FR 46224 
(September 8, 2009).
    On September 11, 2009, the Department selected Yama Ribbons and 
Ningbo Jintian as mandatory respondents. See Respondent Selection 
Memorandum. On September 11, 2009, the Department issued antidumping 
questionnaires to the mandatory respondents (i.e., Yama Ribbons and 
Ningbo Jintian). Yama Ribbons submitted timely responses to sections A 
through C of the Department's antidumping questionnaire. However, 
Ningbo Jintian failed to submit responses to any section of the 
Department's antidumping questionnaires.
    Between September 23, 2009, and October 5, 2009, we received timely 
filed separate-rate applications from the following 12 companies: 
Beauty Horn; Fujian Rongshu; Guangzhou Complacent; Ningbo MH; Ningbo 
V.K.; Stribbons; Sun Ribbon; Dongguan Yi Sheng Decoration Co., Ltd. and 
Sun Rich (Asia) Limited (collectively ``Sun Rich''); Weifang Dongfang; 
Weifang Yu Yuan; Xiamen Yi He; and Yangzhou Bestpak.
    The Department issued supplemental questionnaires to and received 
responses from Yama Ribbons, Beauty Horn, Fujian Rongshu, Guangzhou 
Complacent, Ningbo MH, Ningbo V.K., Stribbons, Sun Ribbon, Sun Rich, 
Weifang Dongfang, Weifang Yu Yuan, and Xiamen Yi He between November 
2009 and January 2010. From October 2009 through January 2010, 
Petitioner submitted comments to the Department regarding Yama Ribbons' 
responses to sections A, C, and D of the antidumping questionnaire.
    On October 7, 2009, the Department released a letter to interested 
parties which listed potential surrogate countries and invited 
interested parties to comment on surrogate country and surrogate value 
(``SV'') selection. See Letter from Robert Bolling, Program Manager, 
AD/CVD Operations, Office 4, to All Interested Parties, ``Antidumping 
Duty Investigation of Narrow Woven Ribbons with Woven Selvedge from the 
People's Republic of China'' (October 7, 2009). On October 21, 2009, 
Petitioner submitted comments\1\ on the appropriate surrogate country. 
No other interested parties commented on the selection of a surrogate 
country. For a detailed discussion of the selection of the surrogate 
country, see ``Surrogate Country'' section below.
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    \1\  See Letter from Petitioner to the Secretary of Commerce, 
Narrow Woven Ribbons With Woven Selvedge From China: 
Petitioner's Comments On Surrogate Country Selection 
(October 21, 2009).
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    On October 30, 2009, Petitioner made a request for a 50-day 
postponement of the preliminary determination. On November 19, 2009, 
pursuant to section 733(c) of the Act and 19 CFR 351.205(f)(1), the 
Department postponed this preliminary determination by fifty days. See 
Narrow Woven Ribbons With Woven Selvedge From the People's Republic of 
China and Taiwan: Postponement of Preliminary Determinations of 
Antidumping Duty Investigations, 74 FR 59962 (November 19, 2009).
    On December 7, 2009, and December 14, 2009, Yama Ribbons submitted 
publicly available SV information in response to specific requests for 
information by the Department. No other party submitted SV information.

Period of Investigation

    The period of investigation (``POI'') is January 1, 2009, through 
June 30, 2009. This period corresponds to the two most recent fiscal 
quarters prior to the month of the filing of the petition (i.e., July, 
2009). See 19 CFR 351.204(b)(1).

Postponement of Final Determination and Extension of Provisional 
Measures

    Pursuant to section 735(a)(2) of the Act, on January 21, 2009, and 
January 29, 2010, Yama Ribbons requested that, in the event of an 
affirmative preliminary determination in this investigation, the 
Department postpone its final determination by 60 days. In the same 
submissions, Yama Ribbons agreed that the Department may extend the 
application of the provisional measures prescribed under 19 CFR 
351.210(e)(2) until the date of the final determination. Because our 
preliminary determination is affirmative, and the respondent requesting 
an extension of the final determination, and an extension of the 
provisional measures,

[[Page 7246]]

accounts for a significant proportion of exports of the merchandise 
under consideration, and no compelling reasons for denial exist, we are 
extending the due date for the final determination by 60 days. 
Suspension of liquidation will be extended accordingly.

Scope of Investigation

    The merchandise subject to the investigation is narrow woven 
ribbons with woven selvedge, in any length, but with a width (measured 
at the narrowest span of the ribbon) less than or equal to 12 
centimeters, composed of, in whole or in part, man-made fibers (whether 
artificial or synthetic, including but not limited to nylon, polyester, 
rayon, polypropylene, and polyethylene teraphthalate), metal threads 
and/or metalized yarns, or any combination thereof. Narrow woven 
ribbons subject to the investigation may:
     also include natural or other non-man-made fibers;
     be of any color, style, pattern, or weave construction, 
including but not limited to single-faced satin, double-faced satin, 
grosgrain, sheer, taffeta, twill, jacquard, or a combination of two or 
more colors, styles, patterns, and/or weave constructions;
     have been subjected to, or composed of materials that have 
been subjected to, various treatments, including but not limited to 
dyeing, printing, foil stamping, embossing, flocking, coating, and/or 
sizing;
     have embellishments, including but not limited to 
appliqu[eacute], fringes, embroidery, buttons, glitter, sequins, 
laminates, and/or adhesive backing;
     have wire and/or monofilament in, on, or along the 
longitudinal edges of the ribbon;
     have ends of any shape or dimension, including but not 
limited to straight ends that are perpendicular to the longitudinal 
edges of the ribbon, tapered ends, flared ends or shaped ends, and the 
ends of such woven ribbons may or may not be hemmed;
     have longitudinal edges that are straight or of any shape, 
and the longitudinal edges of such woven ribbon may or may not be 
parallel to each other;
     consist of such ribbons affixed to like ribbon and/or cut-
edge woven ribbon, a configuration also known as an ``ornamental 
trimming;''
     be wound on spools; attached to a card; hanked (i.e., 
coiled or bundled); packaged in boxes, trays or bags; or configured as 
skeins, balls, bateaus or folds; and/or
     be included within a kit or set such as when packaged with 
other products, including but not limited to gift bags, gift boxes and/
or other types of ribbon.
    Narrow woven ribbons subject to the investigation include all 
narrow woven fabrics, tapes, and labels that fall within this written 
description of the scope of this investigation.
    Excluded from the scope of the investigation are the following:
    (1) formed bows composed of narrow woven ribbons with woven 
selvedge;
    (2) ``pull-bows'' (i.e., an assemblage of ribbons connected to one 
another, folded flat and equipped with a means to form such ribbons 
into the shape of a bow by pulling on a length of material affixed to 
such assemblage) composed of narrow woven ribbons;
    (3) narrow woven ribbons comprised at least 20 percent by weight of 
elastomeric yarn (i.e., filament yarn, including monofilament, of 
synthetic textile material, other than textured yarn, which does not 
break on being extended to three times its original length and which 
returns, after being extended to twice its original length, within a 
period of five minutes, to a length not greater than one and a half 
times its original length as defined in the Harmonized Tariff Schedule 
of the United States (HTSUS), Section XI, Note 13) or rubber thread;
    (4) narrow woven ribbons of a kind used for the manufacture of 
typewriter or printer ribbons;
    (5) narrow woven labels and apparel tapes, cut-to-length or cut-to-
shape, having a length (when measured across the longest edge-to-edge 
span) not exceeding 8 centimeters;
    (6) narrow woven ribbons with woven selvedge attached to and 
forming the handle of a gift bag;
    (7) cut-edge narrow woven ribbons formed by cutting broad woven 
fabric into strips of ribbon, with or without treatments to prevent the 
longitudinal edges of the ribbon from fraying (such as by merrowing, 
lamination, sono-bonding, fusing, gumming or waxing), and with or 
without wire running lengthwise along the longitudinal edges of the 
ribbon;
    (8) narrow woven ribbons comprised at least 85 percent by weight of 
threads having a denier of 225 or higher;
    (9) narrow woven ribbons constructed from pile fabrics (i.e., 
fabrics with a surface effect formed by tufts or loops of yarn that 
stand up from the body of the fabric);
    (10) narrow woven ribbon affixed (including by tying) as a 
decorative detail to non-subject merchandise, such as a gift bag, gift 
box, gift tin, greeting card or plush toy, or affixed (including by 
tying) as a decorative detail to packaging containing non-subject 
merchandise;
    (11) narrow woven ribbon that is (a) affixed to non-subject 
merchandise as a working component of such non-subject merchandise, 
such as where narrow woven ribbon comprises an apparel trimming, book 
marker, bag cinch, or part of an identity card holder, or (b) affixed 
(including by tying) to non-subject merchandise as a working component 
that holds or packages such non-subject merchandise or attaches 
packaging or labeling to such non-subject merchandise, such as a 
``belly band'' around a pair of pajamas, a pair of socks or a blanket; 
and
    (12) narrow woven ribbon(s) comprising a belt attached to and 
imported with an item of wearing apparel, whether or not such belt is 
removable from such item of wearing apparel.
    The merchandise subject to this investigation is classifiable under 
the HTSUS statistical categories 5806.32.1020; 5806.32.1030; 
5806.32.1050 and 5806.32.1060. Subject merchandise also may enter under 
subheadings 5806.31.00; 5806.32.20; 5806.39.20; 5806.39.30; 5808.90.00; 
5810.91.00; 5810.99.90; 5903.90.10; 5903.90.25; 5907.00.60; and 
5907.00.80 and under statistical categories 5806.32.1080; 5810.92.9080; 
5903.90.3090; and 6307.90.9889. The HTSUS statistical categories and 
subheadings are provided for convenience and customs purposes; however, 
the written description of the merchandise under investigation is 
dispositive.

Scope Comments

    In accordance with the preamble to the Department's regulations 
(see Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 
19, 1997)), in our Initiation Notice we set aside a period of time for 
parties to raise issues regarding product coverage, and encouraged all 
parties to submit comments within 20 calendar days of publication of 
the Initiation Notice.
    On August 18, 2009, we received timely comments on the scope of the 
investigation from the following interested parties: 1) Costco 
Wholesale, Hobby Lobby Stores, Inc., Jo-Ann Stores, Inc., Michael 
Stores, Inc., and Target Corporation (collectively, ``The Ribbons 
Retailers''); 2) Papillon Ribbon and Bow, Inc. (``Papillon''); and 3) 
Essential Ribbons, Inc. (``Essential Ribbons''). Specifically, we 
received two requests that the Department modify the

[[Page 7247]]

scope to clarify that certain products are outside the scope, and two 
additional requests that the Department narrow the scope to exclude two 
products that include merchandise which falls within the scope. These 
requests are as follows:
1) The Ribbons Retailers requested that the Department modify 
exclusions 10 (i.e., narrow woven ribbons affixed as a decorative 
detail to non-subject merchandise) and 11 (i.e., narrow woven ribbons 
affixed to non-subject merchandise as a working component) to clarify 
that narrow woven ribbons affixed to non-subject merchandise for a 
functional purpose (such as ``belly bands'' around a pair of pajamas 
and stationery packaged together by means of a ribbon) is excluded from 
the scope;
2) Papillon requested that the Department modify the scope to 
explicitly exclude formed rosettes, which Papillon argued is a subset 
of exclusions 1 (i.e., formed bows) and 11;
3) The Ribbons Retailers requested that the Department narrow the scope 
to exclude narrow woven ribbons included within a kit or set in de 
minimis amounts (such as narrow woven ribbons in holiday ornament sets, 
which are of small, pre-cut lengths and are used to tie ornaments to a 
tree); and
4) Essential Ribbons requested that the Department narrow the scope to 
exclude pre-cut, hand-finished narrow woven ribbons for retail 
packaging in lengths of 72 inches or less.
    On December 22, 2009, and January 29, 2010, Petitioner submitted 
comments on each of the above scope requests. Specifically, Petitioner 
agreed in concept with both requests made by The Ribbons Retailers 
(i.e., items one and three, above), although Petitioner disagreed with 
The Ribbons Retailers' request to modify exclusion 10. Moreover, while 
Petitioner also agreed with Papillon that rosettes are not covered by 
the scope of the investigation (i.e., item two, above), it contended 
that the existing language of the scope at exclusions 1 and 11 is 
sufficiently clear on this point, given that rosettes are bows. 
Finally, Petitioner opposed Essential Ribbon's request that the 
Department narrow the scope to exclude pre-cut, hand-finished ribbon 
(i.e., item four, above) because Petitioner intended that such ribbon 
fall within the scope. Regarding this latter item, Petitioner asserts 
that it has in the past produced this product and may well produce it 
in the future, as it requires only a very minor finishing operation to 
cut and seal the ends of the ribbon. Further, Petitioner notes that it 
currently sells narrow woven ribbons in similar lengths (i.e., of three 
feet or less), and it prices these products in the same manner.
    On January 19, 2010, Essential Ribbons submitted comments opposing 
Petitioner's assertion that it wishes to have pre-cut, hand-finished 
ribbon (i.e., item four, above) covered by the scope of this 
investigation. Essential Ribbons asserts that the petitioner does not 
currently produce this product and thus it should be excluded from the 
scope of this investigation.
    We have carefully considered each of the requests noted above, as 
well as Petitioner's responsive comments. While the Department does 
have the authority to define or clarify the scope of an investigation, 
the Department must exercise this authority in a manner which reflects 
the intent of the petition and the Department generally should not use 
its authority to define the scope of an investigation in a manner that 
would thwart the statutory mandate to provide the relief requested in 
the petition. See Notice of Final Determination of Sales at Less Than 
Fair Value: Certain Softwood Lumber Products From Canada, 67 FR 15539 
(April 2, 2002), and accompanying Issues and Decision Memorandum under 
Scope Issues (after Comment 49). Thus, absent an overarching reason to 
modify the scope in the petition, the Department accepts it. Id. See 
also Circular Welded Austenitic Stainless Pressure Pipe from the 
People's Republic of China: Preliminary Determination of Sales at Less 
Than Fair Value and Postponement of Final Determination, 73 FR 51788, 
51789 (September, 5 2008); Notice of Final Determination of Sales at 
Not Less Than Fair Value: Pure Magnesium From the Russian Federation, 
66 FR 49347 (September 27, 2001) and accompanying Issues and Decision 
Memorandum at Comment 12; and Mitsubishi Heavy Industries, Ltd. v. 
U.S., 986 F. Supp. 1428 (CIT 1997).
    In this case, Petitioner has no objection to modifying the scope 
with respect to items one and three described above (i.e., narrow woven 
ribbons affixed to non-subject merchandise for a functional purpose and 
narrow woven ribbons included in kits or sets in de minimis amounts). 
Accordingly, we have modified the scope to incorporate Petitioner's 
revised language with respect to item one because this modification is 
consistent with the intent of the petition. See the ``Scope of the 
Investigation'' section above. However, regarding item number three, we 
have concerns over whether the proposed scope exclusion would be 
administrable. Therefore, we have not modified the scope to exclude 
narrow woven ribbons included in kits or sets in ``de minimis'' 
amounts, as described by Petitioner, for purposes of the preliminary 
determination. We intend to work with The Ribbons Retailers and 
Petitioner to determine whether this exclusion could be administrable 
and will consider modifying the scope for purposes of the final 
determination.
    Regarding item two (i.e., rosettes), Petitioner also agrees that 
this product is excluded. However, we have not modified the scope 
language with respect to rosettes because we find that the scope is 
sufficiently clear that rosettes are not covered by this investigation, 
and thus no modification is necessary. Finally, we have made no change 
to the scope with respect to item four (i.e., pre-cut, hand-finished 
ribbons) because: 1) these products are clearly within the scope; and 
2) Petitioner intended that these products be covered.
    Non-Market Economy Treatment
    The Department considers the PRC to be a non-market economy 
(``NME'') country. See, e.g., Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: Coated 
Free Sheet Paper from the People's Republic of China, 72 FR 30758, 
30760 (June 4, 2007), unchanged in Final Determination of Sales at Less 
Than Fair Value: Coated Free Sheet Paper from the People's Republic of 
China, 72 FR 60632 (October 25, 2007) (``Coated Free Sheet Paper''). In 
accordance with section 771(18)(C)(i) of the Act, any determination 
that a foreign country is an NME country shall remain in effect until 
revoked by the administering authority. No party has challenged the 
designation of the PRC as an NME country in this investigation. 
Therefore, we continue to treat the PRC as an NME country for purposes 
of this preliminary determination.

Surrogate Country

    When the Department is investigating imports from an NME country, 
section 773(c)(1) of the Act directs it to base normal value (``NV''), 
in most circumstances, on the NME producer's factors of production 
(``FOPs'') valued in a surrogate market-economy country or countries 
considered to be appropriate by the Department. In accordance with 
section 773(c)(4) of the Act, in valuing the FOPs, the Department shall 
utilize, to the extent possible, the prices or costs of FOPs in one or 
more market-economy countries that are at a level of economic 
development comparable to that of the NME country and are significant 
producers of comparable merchandise. The sources of the

[[Page 7248]]

surrogate values we have used in this investigation are discussed under 
the ``Normal Value'' section below.
    The Department determined that India, the Philippines, Indonesia, 
Colombia, Thailand and Peru are countries comparable to the PRC in 
terms of economic development.\2\ Once the countries that are 
economically comparable to the PRC have been identified, we select an 
appropriate surrogate country by determining whether an economically 
comparable country is a significant producer of comparable merchandise 
and whether the data for valuing FOPs is both available and reliable. 
In their October 21, 2009, submission, Petitioner referenced their 
statement in the Petition where they argued that the Department should 
select India as a surrogate country because it satisfies the statutory 
requirements for the selection of a surrogate country since it is at a 
level of economic development that is comparable to the PRC, and is a 
significant producer of merchandise comparable to the merchandise under 
investigation. See Petitioner's October 21, 2009, submission at 1-2. No 
other party provided comments on the record concerning the surrogate 
country.
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    \2\ See Memorandum from Kelly Parkhill, Acting Director, Office 
of Policy, to Robert Bolling, Program Manager, AD/CVD Operations, 
Office 4, ``Request for a List of Surrogate Countries for an 
Antidumping Duty Investigation of Narrow Woven Ribbon With Woven 
Selvedge from the People's Republic of China'' (September 15, 2009).
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    We have determined that it is appropriate to use India as a 
surrogate country pursuant to section 773(c)(4) of the Act based on the 
following: (1) it is at a similar level of economic development 
pursuant to section 773(c)(4) of the Act; (2) it is a significant 
producer of comparable merchandise; and (3) we have reliable data from 
India that we can use to value the FOPs. Thus, we have calculated NV 
using Indian prices when available and appropriate to the FOPs of Yama 
Ribbons. We have obtained and relied upon publicly available 
information wherever possible. See Memorandum to the File from Zhulieta 
Willbrand, International Trade Compliance Analyst, AD/CVD Operations, 
Office 4, ``Investigation of Narrow Woven Ribbons With Woven Selvedge 
from the People's Republic of China: Surrogate Values for the 
Preliminary Determination,'' which is dated concurrently with this 
notice (``Surrogate Value Memorandum'').
    In accordance with 19 CFR 351.301(c)(3)(i), for the final 
determination in an antidumping investigation, interested parties may 
submit publicly available information to value the FOPs within 40 days 
after the date of publication of the preliminary determination.\3\
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    \3\ In accordance with 19 CFR 351.301(c)(1), for the final 
determination of this investigation, interested parties may submit 
factual information to rebut, clarify, or correct factual 
information submitted by an interested party less than ten days 
before, on, or after, the applicable deadline for submission of such 
factual information. However, the Department notes that 19 CFR 
351.301(c)(1) permits new information only insofar as it rebuts, 
clarifies, or corrects information recently placed on the record. 
The Department generally will not accept the submission of 
additional, previously absent-from-the-record alternative surrogate 
value information pursuant to 19 CFR 351.301(c)(1). See Glycine from 
the People's Republic of China: Final Results of Antidumping Duty 
Administrative Review and Final Rescission, in Part, 72 FR 58809 
(October 17, 2007) and accompanying Issues and Decision Memorandum 
at Comment 2.
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Separate Rates

    In the Initiation Notice, the Department notified parties of the 
application process by which exporters and producers may obtain 
separate rate status in NME investigations. See Initiation Notice, 74 
FR at 39296-39297. The process requires exporters and producers to 
submit a separate rate status application.\4\
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    \4\ See Policy Bulletin 05.1: Separate-Rate Practice and 
Application of Combination Rates in Antidumping Investigations 
involving Non-Market Economy Countries, (April 5, 2005), at 6, 
available at http://ia.ita.doc.gov/policy/bull05-1.pdf. (``Policy 
Bulletin 05.1''). Policy Bulletin 05.1 states, in relevant part, 
``While 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 applied 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.''
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    In proceedings involving NME countries, the Department has a 
rebuttable presumption that all companies within the country are 
subject to government control and thus should be assessed a single 
antidumping duty rate. It is the Department's policy to assign all 
exporters of subject merchandise 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. Exporters can demonstrate this 
independence through the absence of both de jure and de facto 
governmental control over export activities. The Department analyzes 
each entity exporting the subject merchandise under the test announced 
in the Notice of 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 further developed in 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''). However, if the Department determines that a company is 
wholly foreign-owned or located in a market economy, then a separate 
rate analysis is not necessary to determine whether it is independent 
from government control.
Separate Rate Recipients
    1. Joint Ventures Between Chinese and Foreign Companies or Wholly 
Chinese-Owned Companies
    Four separate rate applicants in this investigation, Yangzhou 
Bestpak, Ningbo MH, Ningbo V.K., and Weifang Yu Yuan (collectively, 
``Chinese SR Applicants''), provided evidence that they are either 
joint ventures between Chinese and foreign companies or wholly Chinese-
owned companies. The Department has analyzed whether each of the four 
Chinese SR Applicants has demonstrated the absence of de jure and de 
facto governmental control over its respective export activities.
    a. Absence of De Jure Control
    The Department considers the following de jure criteria in 
determining whether an individual company may be granted a separate 
rate: (1) an absence of restrictive stipulations associated with an 
individual exporter's business and export license; (2) legislative 
enactments decentralizing control of companies; and (3) other formal 
measures by the government decentralizing control of companies. See 
Sparklers, 56 FR at 20589. The evidence provided by the four Chinese SR 
Applicants supports a preliminary finding that all of the above 
criteria have been satisfied.
    The evidence provided by the four Chinese SR Applicants supports a 
preliminary finding of de jure absence of governmental control based on 
the following: (1) an absence of restrictive stipulations associated 
with the individual exporters' business and export licenses; (2) the 
existence of applicable legislative enactments decentralizing control 
of Chinese companies; and (3) the implementation of formal measures by 
the government decentralizing control of Chinese companies.
    b. Absence of De Facto Control
    Typically, the Department considers four factors in evaluating 
whether each respondent is subject to de facto

[[Page 7249]]

governmental control of its export functions: (1) whether the export 
prices are set by or are subject to the approval of a governmental 
agency; (2) whether the respondent has authority to negotiate and sign 
contracts and other agreements; (3) whether the respondent has autonomy 
from the government in making decisions regarding the selection of 
management; and (4) whether the respondent retains the proceeds of its 
export sales and makes independent decisions regarding disposition of 
profits or financing of losses. See Silicon Carbide, 59 FR at 22586-87; 
see also Notice of Final Determination of Sales at Less Than Fair 
Value: Furfuryl Alcohol From the People's Republic of China, 60 FR 
22544, 22545 (May 8, 1995). The Department has determined that an 
analysis of de facto control is critical in determining whether 
respondents are, in fact, subject to a degree of governmental control 
which would preclude the Department from assigning separate rates.
    The evidence provided by the four Chinese SR Applicants supports a 
preliminary finding of de facto absence of governmental control based 
on record statements and supporting documentation showing that the 
companies: (1) set their own export prices independent of the 
government and without the approval of a government authority; (2) have 
the authority to negotiate and sign contracts and other agreements; (3) 
maintain autonomy from the government in making decisions regarding the 
selection of management; and (4) retain the proceeds of their 
respective export sales and make independent decisions regarding 
disposition of profits or financing of losses.
    Therefore, the evidence placed on the record of this investigation 
by the four Chinese SR Applicants demonstrates an absence of de jure 
and de facto government control under the criteria identified in 
Sparklers and Silicon Carbide. Accordingly, the Department has 
preliminarily granted a separate rate to the Chinese SR Applicants. See 
``Preliminary Determination'' section below.
    2.Wholly Foreign-Owned
    Eight separate rate applicants in this investigation, Beauty Horn, 
Fujian Rongshu, Guangzhou Complacent, Stribbons, Sun Ribbon, Sun Rich, 
Weifang Dongfang, Xiamen Yi He, and the mandatory respondent Yama 
Ribbons, (``Foreign-Owned SR Applicants''), provided evidence that they 
are wholly owned by individuals or companies located in market 
economies in their separate rate applications. Therefore, because they 
are wholly foreign-owned and the Department has no evidence indicating 
that they are under the control of the government of the PRC, a 
separate rates analysis is not necessary to determine whether these 
companies are independent from government control. See Notice of Final 
Determination of Sales at Less Than Fair Value: Creatine Monohydrate 
from the People's Republic of China, 64 FR 71104 (December 20, 1999) 
(determining that the respondent was wholly foreign-owned and, thus, 
qualified for a separate rate). Accordingly, the Department has 
preliminarily granted a separate rate to these Foreign-Owned SR 
Applicants. See ``Preliminary Determination'' section below.

Companies Not Receiving a Separate Rate

    In the Initiation Notice, the Department requested that all 
companies wishing to qualify for separate rate status in this 
investigation submit a separate rate status application. See Initiation 
Notice. The following five exporters submitted a timely response to the 
Department's Q&V questionnaire but did not provide a separate rate 
application: 1) Billion Trend International Ltd.; 2) Ningbo Huarui 
Import & Export Co., Ltd.; 3) Ningbo Jinfeng Thread & Ribbon Co. Ltd.; 
4) Ningbo Jintian; and 5) Tensen International Trading Ltd., and 
therefore have not demonstrated their eligibility for separate rate 
status in this investigation. As a result, the Department is treating 
these Chinese exporters as part of the PRC-wide entity.

Margins for Separate Rate Recipients

    Through the evidence in their applications, the separate-rate 
applicants have demonstrated their eligibility for a separate rate, see 
the ``Separate Rates'' section above. Normally, the separate rate is 
determined based on the estimated weighted-average dumping margins 
established for exporters and producers individually investigated, 
excluding zero and de minimis margins or margins based entirely on 
adverse facts available (``AFA''). See section 735(c)(5)(A) of the Act. 
In this case, because there are no rates other than de minimis or those 
based on AFA, we have determined to take a simple average of the AFA 
rate applied to the PRC-wide entity and the de minimis rate calculated 
for Yama Ribbons as a reasonable method for purposes of determining the 
rate assigned to separate rate applicants. See Section 735(c)(5)(B) of 
the Act. We note that this methodology is consistent with the 
Department's past practice. See 1-Hydroxyethylidene-1, 1-Diphosphonic 
Acid from the People's Republic of China: Final Determination of Sales 
at Less Than Fair Value, 74 FR 10545, 10546 (March 11, 2009). That rate 
is 115.70 percent. The separate-rate applicants are listed in the 
``Suspension of Liquidation'' section of this notice.

Use of Facts Available and Adverse Facts Available

    Section 776(a) of the Act provides that the Department shall apply 
``facts otherwise available'' (``FA'') if (1) necessary information is 
not on the record, or (2) an interested party or any other person (A) 
withholds information that has been requested, (B) fails to provide 
information within the deadlines established, or in the form and manner 
requested by the Department, subject to subsections (c)(1) and (e) of 
section 782 of the Act, (C) significantly impedes a proceeding, or (D) 
provides information that cannot be verified as provided by section 
782(i) of the Act.
    Section 776(b) of the Act further provides that the Department may 
use an adverse inference in applying the facts otherwise available when 
a party has failed to cooperate by not acting to the best of its 
ability to comply with a request for information. Such an adverse 
inference may include reliance on information derived from the 
petition, the final determination, a previous administrative review, or 
other information placed on the record.

Application of Partial Facts Available for Yama Ribbons

    Section 776(a) of the Act provides that the Department shall apply 
``facts otherwise available'' if (1) necessary information is not on 
the record, or (2) an interested party or any other person (A) 
withholds information that has been requested, (B) fails to provide 
information within the deadlines established, or in the form and manner 
requested by the Department, subject to subsections (c)(1) and (e) of 
section 782 of the Act, (C) significantly impedes a proceeding, or (D) 
provides information that cannot be verified as provided by section 
782(i) of the Act. We have preliminarily determined that the 
application of partial facts available is warranted for certain packing 
materials FOPs reported by Yama Ribbons.
    The Department must rely upon FA because Yama Ribbons did not 
provide us with accurate information with respect to certain packing 
materials FOPs with sufficient time to utilize Yama Ribbons' data for 
the preliminary

[[Page 7250]]

determination. On January 29, 2010, the Department informed Yama 
Ribbons' counsel that in the process of evaluating Yama Ribbons' 
packing data submitted on January 13, 2010, it had noticed that Yama 
Ribbons reported, for certain sales, a wide range of consumption rates 
for packing materials. The Department requested that Yama Ribbons 
evaluate its January 13, 2010, FOP database and inform the Department 
if there were misreported consumption rates for packing materials. The 
Department also expressly instructed Yama Ribbons not to submit any new 
numerical database in response to the Department's inquiry. See 
Memorandum to the File from Zhulieta Willbrand, International Trade 
Compliance Analyst, AD/CVD Operations, Office 4, ``Antidumping Duty 
Investigation on Narrow Woven Ribbons with Woven Selvedge from the 
People's Republic of China: Packing Materials,'' (January 29, 2010). On 
February 1, 2009, Yama Ribbons submitted a narrative explanation 
identifying sales with misreported consumption rates for packing 
materials, and stated reasons why these consumption rates were 
misreported. See ``Narrow Woven Ribbons With Wovern Selvedge from 
People's Republic of China, Antidumping Duty Investigation: Packing 
Materials Consumption Rates Response'' (February 1, 2010). On February 
1, 2010, the Department informed Yama Ribbons that the company could 
provide a revised FOP database reflecting only the narrative 
information submitted on February 1, 2010. The Department also notified 
Yama Ribbons that even if the revised FOP database was submitted to the 
Department before the preliminary determination, the Department could 
not guarantee that the new information would be considered in Yama 
Ribbons' margin calculation for the preliminary determination. See 
Memorandum to the File from Zhulieta Willbrand, International Trade 
Compliance Analyst, AD/CVD Operations, Office 4, ``Antidumping Duty 
Investigation on Narrow Woven Ribbons with Woven Selvedge from the 
People's Republic of China: New Numerical Data,'' (February 1, 2010). 
On February 2, 2010, Yama Ribbons provided a revised FOP database and a 
narrative explanation for all discrepancies.
    The Department has determined that it lacks the sufficient amount 
of time before the preliminary determination to properly evaluate Yama 
Ribbons' revised FOP database. Yama Ribbons' new FOP database was 
submitted just two days prior to the completion of the preliminary 
determination, which is an insufficient amount of time for the 
Department to evaluate the new database for consistency with the prior 
database. Thus, the Department has determined to use Yama Ribbons' 
January 13, 2010, FOP database in the preliminary determination margin 
calculation program. However, the Department acknowledges that the 
January 13, 2010, database suffers some deficiencies, as identified by 
Yama Ribbons pursuant to the Department's inquiries. Because the 
January 13, 2010, FOP database cannot serve as a reliable basis for 
this determination under section 782(e) of the Act, the Department 
finds that for the packing materials FOPs at issue, the Department must 
calculate dumping margins using the facts otherwise available pursuant 
to sections 776(a)(2)(A) of the Act.
    In accordance with section 776(a)(2)(A) of the Act, the Department 
has applied FA for some of Yama Ribbons packing materials FOPs. As FA, 
for certain misreported packing materials FOPs we have applied a simple 
average consumption rate for each of the respective packing materials. 
See Analysis Memorandum for Yama Ribbons and Bows Co. Ltd. (``Yama's 
Analysis Memo'') dated February 4, 2010.
    At this time the Department does not find that it is necessary to 
apply an adverse inference, pursuant to section 776(a)(2)(B) of the 
Act, because Yama Ribbons responded to the Department's request for 
additional information concerning its January 13, 2010, FOP database. 
The Department may issue supplemental questionnaires after issuance of 
the preliminary determination to further analyze these packing FOPs for 
the final determination.

PRC-Wide Entity

    1. Non-Responsive Companies
    On July 30, 2009, the Department requested Q&V information from the 
86 companies that Petitioner identified as potential exporters or 
producers of narrow woven ribbons from the PRC. Additionally, the 
Department's Initiation Notice informed these companies of the 
requirements to respond to both the Department's Q&V questionnaire and 
the separate rate application in order to receive consideration for 
separate rate status. See Initiation Notice, 74 FR at 39296. However, 
only 19 exporters/manufacturers responded to the Department's request 
for Q&V information.\[1]\ Furthermore, only 12 exporters/manufacturers 
that submitted Q&V information also submitted a separate rate 
application.\[2]\ Therefore, the Department preliminarily determines 
that there were exports of merchandise under investigation from PRC 
exporters/manufacturers that did not respond to the Department's Q&V 
questionnaire, and/or subsequently did not demonstrate their 
eligibility for separate rate status. As a result, the Department is 
treating these PRC exporters/manufacturers (``non-responsive 
companies'') as part of the PRC-wide entity.
---------------------------------------------------------------------------

    \[1]\ As stated in the ``Background'' section above, the 
Department received 19 timely responses to the 86 Q&V questionnaires 
the Department sent to potential exporters identified in the 
Petition.
    \[2]\ As stated in the ``Separate Rates'' section above, 19 
exporters submitted a timely response to the Department's Q&V 
questionnaire with sales within the POI, but only 12 of these 
exporters submitted a separate rate application.
---------------------------------------------------------------------------

    2. Ningbo Jintian
    As stated above, Ningbo Jintian did not respond to the Department's 
antidumping questionnaires (i.e., Sections A, C and D questionnaire). 
Because Ningbo Jintian failed to participate in this investigation, 
Ningbo Jintian has failed to demonstrate that it operates free of 
government control and that it is entitled to a separate rate. 
Therefore, the Department preliminarily finds that Ningbo Jintian is 
part of the PRC-wide entity.

Application of Total Adverse Facts Available

    As noted above, the Department has determined that the companies 
that did not submit separate rate applications, including Ningbo 
Jintian, are part of the PRC-wide entity. Pursuant to section 776(a) of 
the Act, the Department further finds that the PRC-wide entity failed 
to respond to the Department's questionnaires, withheld required 
information, and/or submitted information that cannot be verified, thus 
significantly impeding the proceeding. See, e.g., Preliminary 
Determination of Sales at Less Than Fair Value, Postponement of Final 
Determination, and Preliminary Partial Determination of Critical 
Circumstances: Diamond Sawblades and Parts Thereof from the People's 
Republic of China, 70 FR 77121, 77128 (December 29, 2005), unchanged in 
Final Determination of Sales at Less Than Fair Value and Final Partial 
Affirmative Determination of Critical Circumstances: Diamond Sawblades 
and Parts Thereof From the People's Republic of China, 71 FR 29303 (May 
22, 2006). Accordingly, the Department has preliminarily determined to 
base the PRC-wide entity's margin on FA. See section 776(a) of the Act. 
Further, because the

[[Page 7251]]

PRC-wide entity failed to cooperate by not acting to the best of its 
ability to comply with the Department's request for information, the 
Department preliminarily determines that, when selecting from among the 
FA, an adverse inference is warranted for the PRC-wide entity pursuant 
to section 776(b) of the Act.

Selection of the Adverse Facts Available Rate

    In deciding which facts to use as AFA, section 776(b) of the Act 
and 19 CFR 351.308(c)(1) provide that the Department may rely on 
information derived from (1) the petition, (2) a final determination in 
the investigation, (3) any previous review or determination, or (4) any 
information placed on the record. In selecting a rate for AFA, the 
Department selects a rate that is sufficiently adverse ``as to 
effectuate the purpose of the facts available rule to induce 
respondents to provide the Department with complete and accurate 
information in a timely manner.'' See Notice of Final Determination of 
Sales at Less Than Fair Value: Static Random Access Memory 
Semiconductors From Taiwan, 63 FR 8909, 8932 (February 23, 1998). 
Further, it is the Department's practice to select a rate that ensures 
``that the party does not obtain a more favorable result by failing to 
cooperate than if it had cooperated fully.'' See Brake Rotors From the 
People's Republic of China: Final Results and Partial Rescission of the 
Seventh Administrative Review; Final Results of the Eleventh New 
Shipper Review, 70 FR 69937, 69939 (November 18, 2005) (quoting 
Statement of Administrative Action (``SAA'') accompanying the Uruguay 
Round Agreements Act, H. Doc. No. 316, 103d Cong., 2d Session at 870 
(1994)).
    It is the Department's practice to select, as AFA, the higher of 
the (a) highest margin alleged in the petition, or (b) the highest 
calculated rate of any respondent in the investigation. See Final 
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled 
Flat-Rolled Carbon Quality Steel Products From The People's Republic of 
China, 65 FR 34660 (May 31, 2000) and accompanying Issues and Decision 
Memorandum, at ``Facts Available.'' In the instant investigation, as 
AFA, we have preliminarily assigned to the PRC-wide entity, including 
companies that did not respond to the Department's Q&V questionnaire, 
such as Ningbo Jintian, , the highest rate on the record of this 
proceeding for narrow woven ribbons from the PRC, which in this case is 
the 231.40 percent margin from the Petition. See Initiation Notice, 74 
FR at 39296. The Department preliminarily determines that this 
information is the most appropriate from the available sources to 
effectuate the purposes of AFA. The Department will consider all 
margins on the record at the time of the final determination for the 
purpose of determining the most appropriate AFA rate for the PRC-wide 
entity, including Ningbo Jintian.
    The dumping margin for the PRC-wide entity applies to all entries 
of the merchandise under investigation except for entries of subject 
merchandise from the exporter/manufacturer combinations listed in the 
chart in the ``Preliminary Determination'' section below.

Corroboration of Information

    Section 776(c) of the Act provides that, when the Department relies 
on secondary information rather than on information obtained in the 
course of an investigation as facts available, it must, to the extent 
practicable, corroborate that information from independent sources 
reasonably at its disposal. Secondary information is described as 
``information derived from the petition that gave rise to the 
investigation or review, the final determination concerning merchandise 
subject to this investigation, or any previous review under section 751 
concerning the merchandise subject to this investigation.''\5\ To 
``corroborate'' means that the Department will satisfy itself that the 
secondary information to be used has probative value. Independent 
sources used to corroborate may include, for example, published price 
lists, official import statistics and customs data, and information 
obtained from interested parties during the particular investigation. 
To corroborate secondary information, the Department will, to the 
extent practicable, examine the reliability and relevance of the 
information used.\6\
---------------------------------------------------------------------------

    \5\ See Final Determination of Sales at Less Than Fair Value: 
Sodium Hexametaphosphate From the People's Republic of China, 73 FR 
6479, 6481 (February 4, 2008), quoting SAA at 870.
    \6\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From Japan, and Tapered Roller Bearings, Four Inches or 
Less in Outside Diameter, and Components Thereof, From Japan; 
Preliminary Results of Antidumping Duty Administrative Reviews and 
Partial Termination of Administrative Reviews, 61 FR 57391, 57392 
(November 6, 1996), unchanged in Tapered Roller Bearings and Parts 
Thereof, Finished and Unfinished, From Japan, and Tapered Roller 
Bearings, Four Inches or Less in Outside Diameter, and Components 
Thereof, From Japan; Final Results of Antidumping Duty 
Administrative Reviews and Termination in Part, 62 FR 11825 (March 
13, 1997).
---------------------------------------------------------------------------

    The AFA rate that the Department used is from the Petition. 
Petitioner's methodology for calculating the United States price and NV 
in the Petition is discussed in the Initiation Notice. To corroborate 
the AFA margin that we have selected, we compared this margin to the 
margin we found for the respondent. We found that the margin of 231.40 
percent has probative value because it is in the range of the model-
specific margins that we found for the mandatory respondent, Yama 
Ribbons. See Yama's Analysis Memo. Accordingly, we find that the rate 
of 231.40 percent is corroborated within the meaning of section 776(c) 
of the Act.

Date of Sale

    The Department's regulations state that, ``in identifying the date 
of sale of the merchandise under consideration or foreign like product, 
the Secretary normally will use the date of invoice, as recorded in the 
exporter or producer's records kept in the normal course of business.'' 
See 19 CFR 351.401(i). In Allied Tube, the Court of International Trade 
(``CIT'') found that a ``party seeking to establish a date of sale 
other than invoice date bears the burden of producing sufficient 
evidence to satisf{y{time} ' the Department that a different date 
better reflects the date on which the exporter or producer establishes 
the material terms of sale.'''Allied Tube and Conduit Corp. v. United 
States, 132 F. Supp. 2d 1087, 1090 (CIT 2001) (quoting 19 CFR 
351.401(i)) (``Allied Tube''). Additionally, the Secretary may use a 
date other than the date of invoice if the Secretary is satisfied that 
a different date better reflects the date on which the exporter or 
producer establishes the material terms of sale. See 19 CFR 351.401(i); 
see also Allied Tube, 132 F. Supp. 2d at 1090-1092. The date of sale is 
generally the date on which the parties agree upon all material terms 
of the sale. This normally includes the price, quantity, delivery terms 
and payment terms. See Nakornthai Strip Mill Pub. Co. v. United States, 
614 F. Supp. 2d 1323, 1334 (CIT 2009).
    Yama Ribbons reported that the date of sale was determined by the 
shipment date of the subject merchandise to the unaffiliated United 
States customer because the shipment date is the date by which all 
terms of sale are considered final. In this case, as the Department 
found no evidence contrary to Yama Ribbon's claims that shipment date 
was the appropriate date of sale, the Department used shipment as the 
date of sale for this preliminary determination.

Fair Value Comparison

    To determine whether sales of narrow woven ribbons to the United 
States by Yama Ribbons were made at LTFV, we

[[Page 7252]]

compared export price (``EP'') to NV, as described in the ``U.S. 
Price'' and ``Normal Value'' sections of this notice.

U.S. Price

    In accordance with section 772(a) of the Act, for Yama Ribbons, we 
based the U.S. price of sales on EP because the first sale to 
unaffiliated purchasers was made prior to importation and the use of 
constructed export price was not otherwise warranted. In accordance 
with section 772(c) of the Act, we calculated EP for Yama Ribbons by 
deducting the following expenses from the starting price (gross unit 
price) charged to the first unaffiliated customer in the United States: 
foreign movement expenses, foreign brokerage and handling expenses and 
international freight. We reduced movement expenses, where appropriate, 
by the amount of freight revenue paid by the customer to Yama Ribbons. 
In accordance with our practice in the recently completed 
administrative review of polyethylene retail carrier bags from the PRC, 
we capped the amount of freight revenue deducted at no greater than the 
amount of movement expenses. See Polyethylene Retail Carrier Bags from 
the People's Republic of China: Final Results of Antidumping Duty 
Administrative Review, 74 FR 6857 (February 11, 2009) and accompanying 
Issues and Decision Memorandum at Comment 4. Yama also claimed an 
additional revenue adjustment to EP (i.e., additional processing fees). 
For processing fees, we have preliminarily determined to allow this 
adjustment because Yama Ribbons claimed that it accounted for the 
additional FOPs utilized in providing for the additional processing in 
its reported FOPs. See Yama's Analysis Memo. We plan to closely examine 
the processing fees issue at verification. Additionally, we based 
movement expenses on surrogate values where the service was purchased 
from a PRC company. See Yama's Analysis Memo. For details regarding our 
EP calculation, see Yama's Analysis Memo.

Normal Value

    Section 773(c)(1) of the Act provides that the Department shall 
determine NV using a FOP methodology if the merchandise is exported 
from an NME and the information does not permit the calculation of NV 
using home-market prices, third-country prices, or constructed value 
under section 773(a) of the Act. The Department bases NV on FOPs 
because the presence of government controls on various aspects of NMEs 
renders price comparisons and the calculation of production costs 
invalid under the Department's normal methodologies. See, e.g., 
Preliminary Determination of Sales at Less Than Fair Value, Affirmative 
Critical Circumstances, In Part, and Postponement of Final 
Determination: Certain Lined Paper Products from the People's Republic 
of China, 71 FR 19695, 19703 (April 17, 2006), unchanged in Notice of 
Final Determination of Sales at Less Than Fair Value, and Affirmative 
Critical Circumstances, In Part: Certain Lined Paper Products From the 
People's Republic of China, 71 FR 53079 (September 8, 2006).
    As the basis for NV, Yama Ribbons provided FOPs used in each stage 
for producing narrow woven ribbons. Consistent with section 
773(c)(1)(B) of the Act, it is the Department's practice to value the 
FOPs that a respondent uses to produce the merchandise under 
consideration.

Factor Valuation Methodology

    In accordance with section 773(c) of the Act, we calculated NV 
based on FOP data reported by Yama Ribbons. To calculate NV, we 
multiplied the reported per-unit factor-consumption rates by publicly 
available surrogate values. In selecting the surrogate values, we 
considered the quality, specificity, and contemporaneity of the data. 
See, e.g., Fresh Garlic From the People's Republic of China: Final 
Results of Antidumping Duty New Shipper Review, 67 FR 72139 (December 
4, 2002) and accompanying Issues and Decision Memorandum at Comment 6; 
and Final Results of First New Shipper Review and First Antidumping 
Duty Administrative Review: Certain Preserved Mushrooms From the 
People's Republic of China, 66 FR 31204 (June 11, 2001) and 
accompanying Issues and Decision Memorandum at Comment 5. As 
appropriate, we adjusted input prices by including freight costs to 
make them delivered prices. Specifically, we added to Indian import 
surrogate values a surrogate freight cost using the shorter of the 
reported distance from the domestic supplier to the factory or the 
distance from the nearest seaport to the factory where appropriate. 
This adjustment is in accordance with the Court of Appeals for the 
Federal Circuit's decision in Sigma Corp. v. United States, 117 F.3d 
1401, 1407-08 (Fed. Cir. 1997). A detailed description of all surrogate 
values used for Yama Ribbons can be found in the Surrogate Value 
Memorandum.
    For this preliminary determination, in accordance with the 
Department's practice, we used data from the Indian import statistics 
in the World Trade Atlas (``WTA''), and other publicly available Indian 
sources in order to calculate surrogate values for Yama Ribbons' FOPs 
(direct materials, energy, and packing materials) and certain movement 
expenses. In selecting the best available information for valuing FOPs 
in accordance with section 773(c)(1) of the Act, the Department's 
practice is to select, to the extent practicable, surrogate values 
which are non-export average values, most contemporaneous with the POI, 
product-specific, and tax-exclusive. See, e.g., Notice of Preliminary 
Determination of Sales at Less Than Fair Value, Negative Preliminary 
Determination of Critical Circumstances and Postponement of Final 
Determination: Certain Frozen and Canned Warmwater Shrimp From the 
Socialist Republic of Vietnam, 69 FR 42672, 42682 (July 16, 2004), 
unchanged in Final Determination of Sales at Less Than Fair Value: 
Certain Frozen and Canned Warmwater Shrimp From the Socialist Republic 
of Vietnam, 69 FR 71005 (December 8, 2004). The record shows that data 
in the WTA Indian import statistics, as well as those from the other 
Indian sources, are contemporaneous with the POI, product-specific, and 
tax-exclusive. See Surrogate Value Memorandum. In those instances where 
we could not obtain publicly available information contemporaneous to 
the POI with which to value factors, we adjusted the surrogate values 
using, where appropriate, the Indian Wholesale Price Index as published 
in the International Financial Statistics of the International Monetary 
Fund. See Surrogate Value Memorandum at Exhibit 2.
    Furthermore, with regard to the Indian import-based surrogate 
values, we have disregarded import prices that we have reason to 
believe or suspect may be subsidized. We have reason to believe or 
suspect that prices of inputs from Indonesia, South Korea, and Thailand 
may have been subsidized. We have found in other proceedings that these 
countries maintain broadly available, non-industry-specific export 
subsidies and, therefore, it is reasonable to infer that all exports to 
all markets from these countries may be subsidized. See Notice of Final 
Determination of Sales at Less Than Fair Value and Negative Final 
Determination of Critical Circumstances: Certain Color Television 
Receivers From the People's Republic of China, 69 FR 20594 (April 16, 
2004) and accompanying Issues and Decision Memorandum at Comment 7. 
Further, guided by the legislative history, it is the Department's 
practice not to

[[Page 7253]]

conduct a formal investigation to ensure that such prices are not 
subsidized.  See Omnibus Trade and Competitiveness Act of 1988, 
Conference Report to accompany H.R. Rep. 100-576 at 590 (1988) 
reprinted in 1988 U.S.C.C.A.N. 1547, 1623-24; see also Coated Free 
Sheet Paper. Rather, the Department bases its decision on information 
that is available to it at the time it makes its determination. See 
Polyethylene Terephthalate Film, Sheet, and Strip from the People's 
Republic of China: Preliminary Determination of Sales at Less Than Fair 
Value, 73 FR 24552, 24559 (May 5, 2008) (``PET Film from China''), 
unchanged in Polyethylene Terephthalate Film, Sheet, and Strip from the 
People's Republic of China: Final Determination of Sales at Less Than 
Fair Value, 73 FR 55039 (September 24, 2008). Therefore, we have not 
used prices from these countries in calculating the Indian import-based 
surrogate values. Additionally, we disregarded prices from NME 
countries. Finally, imports that were labeled as originating from an 
``unspecified'' country were excluded from the average value, because 
the Department could not be certain that they were not from either an 
NME country or a country with general export subsidies. See PET Film 
from China, 73 FR at 24559.
    For direct, indirect, and packing labor, consistent with 19 CFR 
351.408(c)(3), we used the PRC regression-based wage rate as reported 
on Import Administration's home page, http://ia.ita.doc.gov/wages/index.html, ``Expected Wages Of Selected Non-Market Economy Countries, 
Expected Wage Calculation: 2007 GNI Data, Regression Analysis: 2007 GNI 
Data.'' Because this regression-based wage rate does not separate the 
labor rates into different skill levels or types of labor, we have 
applied the same wage rate to all skill levels and types of labor 
reported by the respondent. See Surrogate Value Memorandum at Exhibit 
6.
    We valued truck freight expenses using a per-unit average rate 
calculated from data on the infobanc Web site: http://www.infobanc.com/logistics/logtruck.htm. The logistics section of this Web site contains 
inland freight truck rates between many large Indian cities. The value 
is contemporaneous with the POI. See Surrogate Value Memorandum at 
Exhibit 9.
    We valued electricity using price data for small, medium, and large 
industries, as published by the Central Electricity Authority of the 
Government of India in its publication titled Electricity Tariff & Duty 
and Average Rates of Electricity Supply in India, dated March 2008. 
These electricity rates represent actual country-wide, publicly 
available information on tax-exclusive electricity rates charged to 
industries in India. As the rates listed in this source became 
effective on a variety of different dates, we are not adjusting the 
average value for inflation. See Surrogate Value Memorandum at Exhibit 
3.
    We calculated the surrogate value for steam based upon the April 
2007-March 2008 financial statement of Hindalco Industries Limited. See 
Surrogate Value Memorandum at Exhibit 5.
    The Department valued water using data from the Maharashtra 
Industrial Development Corporation (http://midcindia.org) as it 
includes a wide range of industrial water tariffs. This source provides 
376 industrial water rates within the Maharashtra province for April 
2009: 188 of the water rates were for the ``inside industrial areas'' 
usage category and 188 of the water rates were for the ``outside 
industrial areas'' usage category. See Surrogate Value Memorandum at 
Exhibit 4.
    We valued brokerage and handling using a simple average of the 
brokerage and handling costs reported in public submissions filed in 
three antidumping duty cases. Specifically, we averaged the public 
brokerage and handling expenses reported by Navneet Publications 
(India) Ltd. in the 2007-2008 administrative review of certain lined 
paper products from India, Essar Steel Limited in the 2006-2007 
antidumping duty administrative review of hot-rolled carbon steel flat 
products from India, and Himalaya International Ltd. in the 2005-2006 
administrative review of certain preserved mushrooms from India. The 
Department adjusted the average brokerage and handling rate for 
inflation. See Surrogate Value Memorandum at Exhibit 8.
    We valued international ocean freight using rate quotes from Maersk 
Sealand, a market-economy shipper. See Surrogate Value Memorandum at 
Exhibit 10.
    We valued international air freight using rates obtained from DHL. 
See Surrogate Value Memorandum at Exhibit 11.
    To value factory overhead, selling, general, and administrative 
expenses, and profit, we used the factory overhead, selling, general 
and administrative expenses, and profit data from an Indian producer of 
comparable merchandise, Ratan Glitter Industries Ltd., a producer of 
comparable narrow woven ribbons, for the fiscal year April 1, 2007, 
through March 31, 2008. See Volume II of the Petition, at Exhibit 39.

Currency Conversion

    We made currency conversions into U.S. dollars, in accordance with 
section 773A(a) of the Act, based on the exchange rates in effect on 
the dates of the U.S. sales as certified by the Federal Reserve Bank.

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information upon which we will rely in making our final 
determination.

Combination Rates

    In the Initiation Notice, the Department stated that it would 
calculate combination rates for certain respondents that are eligible 
for a separate rate in this investigation. See Initiation Notice, 74 FR 
at 39297. This practice is described in Policy Bulletin 05.1, available 
at http://ia.ita.doc.gov/.

Preliminary Determination

    The Department preliminarily determines that the following dumping 
margins exist for the period January 2009 through June 2009:

------------------------------------------------------------------------
                                                       Weighted-Average
            Exporter                   Producer         Percent Margin
------------------------------------------------------------------------
Yama Ribbons and Bows Co., Ltd..  Yama Ribbons and                     0
                                   Bows Co., Ltd..
Beauty Horn Investment Limited..  Tianjin Sun Ribbon              115.70
                                   Co., Ltd..
Fujian Rongshu Industry Co.,      Fujian Rongshu                  115.70
 Ltd..                             Industry Co.,
                                   Ltd..
Guangzhou Complacent Weaving      Guangzhou                       115.70
 Co., Ltd..                        Complacent
                                   Weaving Co., Ltd..
Ningbo MH Industry Co., Ltd.....  Hangzhou City                   115.70
                                   Linghu Jiacheng
                                   Silk Ribbon Co.,
                                   Ltd..
Ningbo V.K. Industry & Trading    Ningbo Yinzhou                  115.70
 Co., Ltd..                        Jinfeng Knitting
                                   Factory.
Stribbons (Guangzhou) Ltd.......  Stribbons                       115.70
                                   (Guangzhou) Ltd..
Stribbons (Guangzhou) Ltd.......  Stribbons                       115.70
                                   (Nanyang) MNC
                                   Ltd..
Sun Rich (Asia) Limited.........  Dongguan Yi Sheng               115.70
                                   Decoration Co.,
                                   Ltd..
Tianjin Sun Ribbon Co., Ltd.....  Tianjin Sun Ribbon              115.70
                                   Co., Ltd..

[[Page 7254]]

 
Weifang Dongfang Ribbon Weaving   Weifang Dongfang                115.70
 Co., Ltd..                        Ribbon Weaving
                                   Co., Ltd..
Weifang Yu Yuan Textile Co.,      Weifang Yu Yuan                 115.70
 Ltd..                             Textile Co., Ltd..
Xiamen Yi He Textile Co., Ltd...  Xiamen Yi He                    115.70
                                   Textile Co., Ltd..
Yangzhou Bestpak Gifts & Crafts   Yangzhou Bestpak                115.70
 Co., Ltd..                        Gifts & Crafts
                                   Co., Ltd..
PRC-wide Entity.................  ..................            * 231.40
------------------------------------------------------------------------
 *(Including Ningbo Jintian Import & Export Co., Ltd.)

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).

Suspension of Liquidation

    In accordance with section 733(d) of the Act, we will instruct U.S. 
Customs and Border Protection (``CBP'') to suspend liquidation of all 
entries of narrow woven ribbons from the PRC as described in the 
``Scope of Investigation'' section, entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. We will instruct CBP to require a cash 
deposit or the posting of a bond equal to the weighted-average amount 
by which the normal value exceeds U.S. price, as indicated above.
    Additionally, the Department has determined in its Narrow Woven 
Ribbons with Woven Selvedge from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination and Alignment 
of Final Countervailing Duty Determination with Final Antidumping Duty 
Determination, 74 FR 66090, 66096 (December 14, 2009) (``CVD Prelim'') 
that the product under investigation, exported and produced by Yama 
Ribbons, did not benefit from an export subsidy. However, the 
countervailing duty rate for Ningbo Jintian, Beauty Horn, Fujian 
Rongshu, Guangzhou Complacent, Ningbo MH, Ningbo V.K., Stribbons, Sun 
Ribbon, Sun Rich, Weifang Dongfang, Weifang Yu Yuan, Xiamen Yi He, and 
Yangzhou Bestpak is the all-others rate, which is 59.49 percent. Id. 
Therefore, we will instruct CBP to require an antidumping duty cash 
deposit or the posting of a bond for each entry equal to the weighted-
average margin indicated above for these companies adjusted for the 
export subsidies determined in the CVD Prelim. The adjusted cash 
deposit rate for Ningbo Jintian, Beauty Horn, Fujian Rongshu, Guangzhou 
Complacent, Ningbo MH, Ningbo V.K., Stribbons, Sun Ribbon, Sun Rich, 
Weifang Dongfang, Weifang Yu Yuan, Xiamen Yi He, and Yangzhou Bestpak 
is 115.70 percent.

International Trade Commission Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our preliminary affirmative determination of sales at LTFV. If 
the Department's final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after our final determination 
whether imports of narrow woven ribbons from Taiwan are materially 
injuring, or threatening material injury to, the U.S. industry (see 
section 735(b)(2) of the Act). As we are postponing the deadline for 
our final determination to 135 days from the date of the publication of 
this preliminary determination, the ITC will make its final 
determination no later than 45 days after our final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Import Administration no later than seven days 
after the date on which the final verification report is issued in this 
proceeding and rebuttal briefs limited to issues raised in case briefs 
and must be received no later than five days after the deadline date 
for case briefs. See 19 CFR 351.309(c)(i) and (d). A list of 
authorities used and an executive summary of issues should accompany 
any briefs submitted to the Department. This summary should be limited 
to five pages total, including footnotes.
    In accordance with section 774 of the Act, and if timely requested, 
we will hold a public hearing, to afford interested parties an 
opportunity to comment on arguments raised in case or rebuttal briefs. 
If a request for a hearing is made, we intend to hold the hearing two 
days after the deadline of submission of rebuttal briefs at the U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230, at a time and location to be determined. Parties 
should confirm by telephone the date, time, and location of the hearing 
two days before the scheduled date.
    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Import Administration, U.S. Department of Commerce, Room 
1870, within 30 days after the date of publication of this notice. See 
19 CFR 351.310(c). Requests should contain the party's name, address, 
and telephone number, the number of participants, and a list of the 
issues to be discussed. At the hearing, each party may make an 
affirmative presentation only on issues raised in that party's case 
brief and may make rebuttal presentations only on arguments included in 
that party's rebuttal brief.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act.

    Dated: February 4, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-3128 Filed 2-17-10; 8:45 am]
BILLING CODE 3510-DS-S