[Federal Register Volume 76, Number 103 (Friday, May 27, 2011)]
[Notices]
[Pages 30910-30912]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-13266]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-825]


Polyethylene Terephthalate Film, Sheet, and Strip From India: 
Final Results of Countervailing Duty New Shipper Review

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

SUMMARY: On December 21, 2010, the Department of Commerce (the 
Department) issued the preliminary results of the new shipper review of 
polyethylene terephthalate film, sheet and strip (PET Film) from India 
for SRF Limited (SRF), covering the period January 1, 2009, through 
December 31, 2009 (POR). Based on the results of our analysis of the 
comments received, we continue to find that the U.S. sale of subject 
merchandise produced and exported by SRF was bona fide. Also based on 
our analysis of SRF's comments, we made certain revisions to the 
calculations of several subsidy programs. The final subsidy rate for 
the reviewed company is listed below in the section titled ``Final 
Results of New Shipper Review.'' The Department will instruct U.S. 
Customs and Border Protection (CBP) to assess countervailing duties at 
the final subsidy rate.

DATES: Effective Date: May 27, 2011.

FOR FURTHER INFORMATION CONTACT: Elfi Blum or Toni Page, AD/CVD 
Operations, Office 6, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0197 or (202) 482-1398.

SUPPLEMENTARY INFORMATION:

Background

    Since the issuance of Polyethylene Terephthalate Film, Sheet, and 
Strip From India: Preliminary Results of Countervailing Duty New 
Shipper Review, 75 FR 81574 (December 28, 2010) (Preliminary Results), 
the following events have occurred. SRF filed its response to the 
Department's second supplemental questionnaire on December 27, 2010. On 
January 21, 2011, the Department issued a memorandum confirming the 
briefing schedule, which was in accordance with 19 CFR 351.309(c) and 
the Preliminary Results, 75 FR at 81583. See Memorandum To Interested 
Parties From Elfi Blum, International Trade Compliance Analyst, AD/CVD 
Operations, Office 6: New Shipper Reviews of the Antidumping Duty and 
Countervailing Duty Orders on Polyethylene Terephthalate Film, Sheet, 
and Strip from India; Verification and Briefing Schedule for the Final 
Results of Review (January 21, 2011). SRF and the petitioners, Dupont 
Teijin Films, Mitsubishi Polyester Film of America, and Toray Plastics 
(America), Inc., timely filed case briefs on January 27, 2011. On 
January 31, 2011, the Department rejected SRF's case brief because it 
contained untimely new factual information. SRF timely re-filed its 
case brief on February 1, 2011. Both SRF and the petitioners timely 
filed their rebuttal briefs on February 1, 2011. On March 9, 2011, the 
Department published an extension of the final results of the new 
shipper review from March 21, 2011 to May 20, 2011. See Polyethylene 
Terephthalate Film, Sheet and Strip From India: Extension of Time Limit 
for Final Results of Countervailing Duty New Shipper Review, 76 FR 
12938 (March 9, 2011).
    The Department obtained, from CBP, import data for entries of PET 
Film from India into the United States during the period December 2009 
through January 2011. On February 11, 2011, the Department placed this 
information on the record of this review. See Memorandum To All 
Interested Parties From Toni Page, International Trade Compliance 
Analyst: Antidumping and Countervailing Duty New Shipper

[[Page 30911]]

Reviews of Polyethylene Terephthalate Film, Sheet, and Strip from 
India: U.S. Customs Entries from December 2009 to Present (January 11, 
2011). The Department issued its third supplemental questionnaire to 
SRF on February 11, 2011, requesting information about the company's 
shipments after the POR of PET Film to the United States. On February 
25, 2011, SRF filed its response to the Department's third supplemental 
questionnaire.
    On April 13, 2011, the Department placed additional CBP data 
concerning post-POR shipments of PET Film to the United States, sold by 
SRF, on the record of this review and requested comments from the 
parties. See Memorandum To All Interested Parties From Toni Page, 
International Trade Compliance Analyst: Antidumping and Countervailing 
Duty New Shipper Reviews of Polyethylene Terephthalate Film, Sheet, and 
Strip from India: U.S. Customs Entries from December 2009 to present 
(April 13, 2011). The petitioners and SRF filed comments on the CBP 
data on April 18, 2011.

Scope of the Order

    The products covered by the order are all gauges of raw, 
pretreated, or primed polyethylene terephthalate film, sheet and strip, 
whether extruded or coextruded. Excluded are metallized films and other 
finished films that have had at least one of their surfaces modified by 
the application of a performance-enhancing resinous or inorganic layer 
more than 0.00001 inches thick. Imports of PET Film are classifiable in 
the Harmonized Tariff Schedule of the United States (HTSUS) under item 
number 3920.62.00.90. HTSUS subheadings are provided for convenience 
and customs purposes. The written description of the scope of the order 
is dispositive.

Bona Fide Analysis of SRF's U.S. Sale

    In the Preliminary Results, we determined that SRF's U.S. sale was 
a bona fide transaction. See Memorandum from Toni Page, International 
Trade Analyst Regarding: Bona Fide Analysis of the Sale in the 
Antidumping Duty New Shipper Review of Certain Polyethylene 
Terephthalate Film, Sheet, and Strip from India: SRF Limited (December 
21, 2010). The Department also stated it would continue to examine, 
through the remainder of the review, all factors relating to the bona 
fide analysis of the sale. We have further examined the bona fide 
nature of SRF's U.S. sale and, for these final results, we continue to 
find the sale to be bona fide. For further details, see, Memorandum to 
File from Toni Page, International Trade Analyst, Bona Fide Analysis of 
SRF's Sale in the Countervailing Duty New Shipper Review of 
Polyethylene Terephthalate Film, Sheet, and Strip from India, dated 
concurrently with this notice.

Analysis of Comments Received

    All issues raised in the case brief and rebuttal brief by parties 
to this new shipper review are addressed in Memorandum from Christian 
Marsh, Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for 
Import Administration, Issues and Decision Memorandum for the Final 
Results of the Countervailing Duty New Shipper Review of Polyethylene 
Terephthalate Film, Sheet, and Strip (PET Film) from India (May 20, 
2011) (Issues and Decision Memorandum), which is hereby adopted by this 
notice. The Issues and Decision Memorandum also contains a complete 
analysis of the programs covered by this review, the methodologies used 
to calculate the subsidy rates, and discusses any changes to the 
subsidy rates from the Preliminary Results. A list of the comments 
raised in the briefs and addressed in the Issues and Decision 
Memorandum is appended to this notice. The Issues and Decision 
Memorandum is on file in the Central Records Unit (CRU), room 7046 of 
the main Department building, and can be accessed directly on the Web 
at http://ia.ita.doc.gov/frn. The paper and electronic version of the 
Issues and Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have revised the 
calculations with respect to the benefit amount calculated on certain 
additional Export Promotion Capital Goods Scheme (EPCGS) licenses that 
SRF provided in its second supplemental questionnaire response, and 
that we included in our benefit calculations for those programs.
    We also made changes to our benefit calculation with regard to the 
Advance License Program. Based on our analysis of the information SRF 
provided in its second supplemental questionnaire response, we have 
made changes to the numerator and the denominator in our benefit 
calculation for this program.
    In addition, we revised our benefit calculations with respect to 
two sub-programs of the Special Economic Zone (SEZ) program, the 
``Discounted Land Fees in an SEZ'' and ``Exemption from Stamp Duty of 
all Transactions and Transfers of Immovable Property, or Documents 
related thereto within the SEZ (Stamp Duty).'' Based on further 
analysis of the information provided on the record of this review, and 
the comments provided by interested parties, for these final results, 
we determine these benefits to be non-recurring under 19 CFR 351.524(b) 
and (c)(2)(i). We performed the ``0.5 percent test,'' as prescribed 
under 19 CFR 351.524(b)(2) and found that this SEZ land concession was 
in excess of 0.5 percent of SRF's total export sales in the year the 
benefit was bestowed. Therefore, for these final results, we allocated 
the 75 percent discount on the lease of the SEZ land, using as the 
allocation period for non-recurring subsidies the AUL prescribed by the 
Internal Revenue Service (IRS) for renewable physical assets for the 
industry under consideration (as listed in the IRS's 1977 Class Life 
Asset Depreciation Range System, and as updated by the Department of 
the Treasury), in accordance with 19 CFR 351.524(d)(2)(i). We found 
that the amount of uncollected stamp duties on the lease of the SEZ 
land was less than 0.5 percent of total export sales during the year in 
which the benefit was received. Therefore, we allocated the benefit 
received from exempted stamp duty to the year it was received.
    Further, we made changes to our calculation of the rupee-
denominated short-term benchmark. In the Preliminary Results we 
allocated loan fees due on the respective working capital loans during 
the POR, by applying the individual ratios to the sanctioned credit 
limits, as applicable, treating each listed sanctioned credit limit as 
an individual loan. Based on the detailed explanation in SRF's case 
brief, we re-examined the information on the record and have revised 
our calculation of SRF's rupee-denominated short-term benchmark for 
these final results. We have not treated each draw down as a separate 
loan; as a result, we have applied the application fees only once to 
each loan.
    These changes are discussed in more detail in the Issues and 
Decision Memorandum.

Final Results of New Shipper Review

    In accordance with section 751(a)(2)(B)(i) of the Tariff Act of 
1930, as amended (the Act) and 19 CFR 351.221(b)(5), we calculated an 
individual ad valorem subsidy rate for SRF, for the POR for this new 
shipper review.

[[Page 30912]]



------------------------------------------------------------------------
                                                           Net subsidy
                 Manufacturer/exporter                    rate (percent)
------------------------------------------------------------------------
SRF Limited............................................            3.04
------------------------------------------------------------------------

Disclosure

    The Department will disclose to parties the calculations performed 
in connection with these final results within five days of the date of 
public announcement. See 19 CFR 351.224(b).

Assessment and Cash Deposit Instructions

    The Department intends to issue assessment instructions to CBP 15 
days after the date of publication of these final results of review to 
liquidate shipments of subject merchandise produced and exported by SRF 
and entered, or withdrawn from warehouse, for consumption on or after 
January 1, 2009, through December 31, 2009 at 3.04 percent ad valorem 
of the entered value.
    The Department intends to also instruct CBP to collect cash 
deposits of the estimated countervailing duties at the rate of 3.04 
percent ad valorem of the entered value on shipments of the subject 
merchandise produced and exported by SRF, entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
final results of this new shipper review.
    Further, effective upon publication of the final results of this 
new shipper review, we intend to instruct CBP that importers may no 
longer post a bond or other security in lieu of a cash deposit on 
imports of PET Film from India, manufactured and exported by SRF. These 
cash deposit requirements, when imposed, shall remain in effect until 
further notice. The cash deposit rates for all companies not covered by 
this review are not changed by the results of this new shipper review.

Return or Destruction of Proprietary Information

    This notice serves as a reminder to parties subject to the 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
the APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return or destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: May 20, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix I--List of Issues Addressed in the Issues and Decision 
Memorandum

Comment 1: Whether SRF's Single Sale and its U.S. Customer Are 
Indicative of a Bona Fide Sale
Comment 2: Whether the Price and Quantity of SRF's New Shipper Sale 
Are Indicative of a Bona Fide Sale
Comment 3: Whether SRF's PET Film Entry Was Re-sold for a Profit
Comment 4: Whether to Countervail SRF's Additional EPCGS Licenses
Comment 5: The Appropriate Average Useful Life of Physical Assets to 
be Applied
Comment 6: SEZ Land Concession
Comment 7: Exemption of Stamp Duty on Land Purchase as a Recurring 
Benefit
Comment 8: Countervailability of SRF's Advance Licenses
Comment 9: Countervailability of SRF's Advance Licenses Pertaining 
to Non-Subject Merchandise
Comment 10: Calculation of the Rupee Denominated Short-Term 
Benchmark Interest Rate

[FR Doc. 2011-13266 Filed 5-26-11; 8:45 am]
BILLING CODE 3510-DS-P