[Federal Register Volume 77, Number 153 (Wednesday, August 8, 2012)]
[Notices]
[Pages 47363-47369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-19299]


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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 Results and Partial Rescission of 
Antidumping Duty Administrative Review

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

SUMMARY: In response to requests from interested parties, the 
Department of Commerce (``the Department'') is conducting an 
administrative review of the antidumping duty order on narrow woven 
ribbons with woven selvedge (``Ribbons'') from the People's Republic of 
China (``PRC''). The period of review (``POR'') is September 1, 2010, 
through August 31, 2011.
    As discussed below, the Department preliminarily determines that 
the PRC-wide entity made sales in the United States at prices below 
normal value (``NV''). If the preliminary results are adopted in our 
final results of administrative review, we will instruct U.S. Customs 
and Border Protection (``CBP'') to assess antidumping duties on all 
appropriate entries. Interested parties are invited to comment on the 
preliminary results.
    We invite interested parties to comment on these preliminary 
results. Parties who submit comments are requested to submit with each 
argument a summary of the argument. We intend to issue the final 
results no later than 120 days from the date of publication of this 
notice, pursuant to section 751(a)(3)(A) of the Tariff Act of 1930, as 
amended (``the Act'').

DATES: Effective Date: August 8, 2012.

FOR FURTHER INFORMATION CONTACT: Karine Gziryan or Robert Bolling, 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-
4081 and (202) 482-3434 respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 1, 2010, the Department published in the Federal 
Register an antidumping duty order on NWR from the PRC.\1\ On September 
23, 2011, the Department published in the Federal Register a notice of 
opportunity to request an administrative review of the antidumping duty 
order on NWR from the PRC for the period September 1, 2010, through 
August 31, 2011.\2\ On September 21, 29th, and 30th, 2011, the 
Department received timely requests in accordance with 19 CFR 
351.213(b)(2) for an administrative review from Weifang Dongfang Ribbon 
Weaving Co., Ltd. (``Weifang Dongfang''), Stribbons (Guangzhou) Ltd. 
(``Stribbons Guangzhou''), Stribbons (Nanyang) MNC, Ltd. (``Stribbons 
MNC''), Yangzhou Bestpak Gifts & Crafts Col, Ltd. (``Bestpak''), and 
Precious Planet Ribbons & Bows Co., Ltd. (``Precious Planet''). On 
September 30, 2011, the Department also received a timely request from 
Berwick Offray LLC and its wholly-owned subsidiary Lion Ribbon Company, 
Inc. (collectively, ``Petitioners''), in accordance with 19 CFR 
351.213(b)(1), for an administrative review of the antidumping duty 
order on NWR from the PRC for ten companies: Yama Ribbons and Bows Co., 
Ltd. (``Yama Ribbons''), Hubschercorp (Canada), Apex Ribbon (Canada), 
Pacific Imports (Canada), Supreme Laces Inc. (Canada), Multicolor Inc. 
(Canada), Apex Trimmings (Canada), Papillon Ribbon & Bow (Canada), 
FinerRibbon.com (Canada), and Intercontinental Skyline (Canada).
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    \1\ See Notice of Antidumping Duty Orders: Narrow Woven Ribbons 
With Woven Selvedge From Taiwan and the People's Republic of China: 
Antidumping Duty Orders, 75 FR 53632 (September 1, 2010), as amended 
in Narrow Woven Ribbons With Woven Selvedge From Taiwan and the 
People's Republic of China: Amended Antidumping Duty Orders, 75 FR 
56982 (September 17, 2010) (``Orders'').
    \2\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity To Request Administrative 
Review, 76 FR 54735 (September 2, 2011).
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    On October 31, 2011, the Department published a notice of 
initiation of an antidumping duty administrative review on NWR from the 
PRC, in which it initiated a review of Hubschercorp, Apex Ribbon, 
Pacific Imports, Supreme Laces Inc., Multicolor Inc., Apex Trimmings, 
Papillon Ribbon & Bow (Canada), FinerRibbon.com., Intercontinental 
Skyline, Weifang Dongfang, Stribbons Guangzhou, Stribbons MNC, Bestpak, 
Precious Planet, and Yama Ribbons.\3\
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    \3\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Requests for Revocation in Part, 76 FR 
67133 (October 31, 2011) (``Initiation Notice'').
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    On November 16, 2011, the Department placed on the record CBP 
import data for certain Harmonized Tariff Schedule of the United States 
(``HTSUS'') subheadings. On November 23, 2011, the Department received 
comments from Stribbons (Guangzhou) Ltd., Stribbons (Nanyang) MNC, 
Ltd., Bestpak and Petitioners. After examining the CBP data and the 
comments from the interested parties, the Department concluded that the 
import data was reported using inconsistent units of measurement. The 
Department was, therefore, unable to select mandatory respondents based 
soley on this data.
    On December 6, 2011, to clarify the import data on the record, the 
Department issued quantity and value (``Q&V'') questionnaires to 
exporters who allegedly had imports of NWR during the POR according to 
the CBP import data on the record. The Department requested that the 
companies report the Q&V of their POR exports and/or shipments of NWR 
to the United States using specified units of measurement. The 
Department also received Q&V submissions from Hubscher Ribbon Corp., 
Ltd. (``Hubschercorp'') and Precious Planet on December 20, 2011.\4\
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    \4\ See Shanghai Dayspring Gifts Corp. Ltd. did not respond to 
the Department's Q&V questionnaire.
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    Because the PRC is a non-market economy (``NME''), companies 
wishing to receive a separate antidumping rate for purposes of this 
administrative review were required to file a timely separate rate 
application or separate rate certification. The separate rate 
application and/or certification in this case were due within 60 days 
from the initiation of the antidumping administrative review,\5\ no 
later than

[[Page 47364]]

December 30, 2011. On November 26, 2011, December 22, 2011, December 
29, 2011, and December 30, 2011, the Department received timely 
separate rate applications and/or certifications from Weifang Dongfang, 
Bestpak, Hubschercorp and Precious Planet in that respective order.
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    \5\ See Initiation Notice, 76 FR at 67133-134
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    On January 4, 2012, five days after the due date had passed, 
Stribbons (Guangzhou) Ltd., Stribbons (Nanyang) MNC, Ltd. (collectively 
``MNC Stribbons'') submitted an untimely request for a two-week 
extension to file a separate rate certification. Then, on January 9, 
2012, ten days after the deadline for submitting the separate rate 
certification had passed, without receiving a response from the 
Department to its untimely extension request, MNC Stribbons attempted 
to file a separate rate certification for Stribbons (Guangzhou) Ltd. 
and Stribbons (Nanyang) MNC, Ltd. In accordance with 19 CFR 
351.302(d)(2), on Janauary 13, 2012, the Department rejected MNC 
Stribbons' filings of January 4, 2012, and January 9, 2012 as untimely 
and returned those submissions to the company.\6\
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    \6\ See Letter from Robert Bolling, Program Manager, AD/CVD 
Operations, Office 4 to Mr. James Cannon, Williams Mullen, 
representing Stribbons (Guangzhou) Ltd. and Stribbons (Nanyang) MNC 
Ltd., dated January 13, 2012 (``Rejection Letter'').
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    On January 11, 2012, the Department exercised its authority to 
limit the number of respondents selected for individual examination 
pursuant to section 777A(c)(2)(B) of the Act.\7\ The Department 
selected the two largest exporters by volume as our mandatory 
respondents for this review, Hubschercorp and Precious Planet.\8\ On 
January 12, 2012, Bestpak timely withdrew its requests to the 
Department to conduct an administrative review of its sales.
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    \7\ See Memorandum to Abdelali Elouaradia, Director, AD/CVD 
Operations, Office 4, from Jonathan Hill, International Trade 
Compliance Analyst, AD/CVD Operations, Office 4, ``Respondent 
Selection in the First Administrative Review of Narrow Woven Ribbons 
with Woven Selvedge from the People's Republic of China,'' dated 
January 11, 2012 (``Respondent Selection Memo'').
    \8\ See Respondent Selection Memo. Also, Hubschercorp and 
Precios Planet are collectively referred to as the ``mandatory 
respondents.''
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    On January 13, 2012, the Department issued the antidumping 
questionnaire to Hubschercorp and Precious Planet. On January 24, 2012, 
Precious Planet timely withdrew its request for an administrative 
review of its sales.\9\
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    \9\ On January 31, 2012, MNC Stribbons filed a request to the 
Department to select MNC Stribbons as a mandatory respondent in the 
antidumping duty administrative review of Ribbons, however, for the 
reasons stated below under the PRC-wide Entity section, the 
Department did not grant that request.
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    Between January 13, 2012 and March 16, 2012, Hubschercorp responded 
to the Department's questionnaires. In its February 24, 2012, section D 
questionnaire response to the Department, Hubschercorp explained that 
it was not able to obtain the factors of production (``FOP'') 
information from its Chineese producer of NWR, Yama Ribbons. On March 
1, 2012, the Department issued a section D questionnaire to Yama 
Ribbons, a producer of NWR for Hubschercorp during the POR. On March 
16, 2012, Yama Ribbons provided its answer to the Department's section 
D questionnaire response explaining that it would not provide a 
response to the section D questionnaire.\10\ On May 7, 2012, the 
Department issued sections A and C supplemental questionnaires to 
Hubschercorp. Between January and May 2012, Petitioners provided 
comments on Hubschercorp's questionnaire responses.
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    \10\ See Yama Ribbons' section D questionnaire response to the 
Department, dated March 16, 2012.
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    On May 25, 2012, the Department extended the time period for 
completion of the preliminary results of this review by 30 days until 
July 1, 2012.\11\ On May 29, 2012, Hubschercorp indicated that it would 
no longer participate in this administrative review. On June 27, 2012, 
the Department extended the time period for completion of the 
preliminary results of this review by a further 30 days until July 31, 
2012.\12\
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    \11\ See Memorandum to Abdelali Elouaradia, Director, AD/CVD 
Operations, Office 4, from Karine Gziryan, International Trade 
Compliance Analyst, AD/CVD Operations, Office 4: ``Narrow Woven 
Ribbons with Woven Selvedge from the People's Republic of China 
Extension of Deadline for Preliminary Results of Antidumping Duty 
Administrative Review,'' dated May 25, 2012.
    \12\ See Memorandum to Abdelali Elouaradia, Director, AD/CVD 
Operations, Office 4, from Karine Gziryan, International Trade 
Compliance Analyst, AD/CVD Operations, Office 4: ``Narrow Woven 
Ribbons with Woven Selvedge from the People's Republic of China 
Extension of Deadline for Preliminary Results of Antidumping Duty 
Administrative Review,'' dated June 27, 2012.
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Period of Review

    The POR is September 1, 2010 through August 31, 2011.\13\
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    \13\ The ITC made an affirmative determination in the Narrow 
Woven Ribbons investigation based on a threat of injury. See Narrow 
Woven Ribbons with Woven Selvedge from China and Taiwan, 75 FR 53711 
(September 1, 2010). Under section 736(b)(2) of the Act, all subject 
merchandse entered, or withdrawn from warehouse on or after 
September 1, 2010, the date the ITC published its affirmative 
determination of threat of material injury in the Federal Register, 
are suspended and covered by the POR for the first administrative 
review. Entries before that date were liquidated without regard to 
antidumping duties.
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Scope of Order

    The scope of the order covers 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 order 
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 order include all narrow woven 
fabrics, tapes, and labels that fall within this written description of 
the scope of the antidumping duty order.
    Excluded from the scope of the order are the following:

[[Page 47365]]

    (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 (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 eight 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;
    (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; and
    (13) Narrow woven ribbon(s) included with non-subject merchandise 
in kits, such as a holiday ornament craft kit or a scrapbook kit, in 
which the individual lengths of narrow woven ribbon(s) included in the 
kit are each no greater than eight inches, the aggregate amount of 
narrow woven ribbon(s) included in the kit does not exceed 48 linear 
inches, none of the narrow woven ribbon(s) included in the kit is on a 
spool, and the narrow woven ribbon(s) is only one of multiple items 
included in the kit.
    The merchandise subject to the order 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 covered by the order is dispositive.

Partial Rescission of Antidumping Administrative Review

    Pursuant to 19 CFR 351.213(d)(1), the Department will rescind an 
administrative review, in whole or in part, if a party that requested a 
review withdraws the request within 90 days of the date of publication 
of the notice of initiation of the requested review, or withdraws its 
request at a later date if the Department determines that it is 
reasonable to extend the time limit for withdrawing the request. As 
indicated above, on January 12, 2012, and January 24, 2012, 
respectively, Bestpak and Precious Planet withdrew their requests for a 
review, which was within the 90-day deadline.
    No other party has requested a review for Bestpak or Precious 
Planet, and no party has opposed their withdrawal requests. 
Additionally, Bestpak had a separate rate granted in a previously 
completed segment of this proceeding that was in effect during the 
instant review period.\14\ Therefore, we are rescinding this 
administrative review with respect to Bestpak in accordance with 19 CFR 
351.213(d)(1). However, Precious Planet has not established its 
eligibility for a separate rate; therefore, it will continue to be 
considered part of the PRC-wide entity. Because in this administrative 
review the PRC-wide entity is under review for these preliminary 
results, we are not rescinding this review with respect to Precious 
Planet.
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    \14\ See Orders.
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Non-Market Economy Country Status

    The Department has treated the PRC as a NME country in all past 
antidumping duty investigations and administrative reviews and 
continues to do so in this case.\15\ 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.\16\
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    \15\ See section 771(18)(C) of the Act; see, e.g., Polyethylene 
Terephthalate Film, Sheet, and Strip From the People's Republic of 
China: Final Results of the First Antidumping Duty Administrative 
Review, 76 FR 9753 (February 22, 2011).
    \16\ See section 771(18)(C)(i) of the Act.
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Separate Rates

    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.\17\ 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 a test set out 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 an ME, then a separate rate

[[Page 47366]]

analysis is not necessary to determine whether it is independent from 
government control.\18\
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    \17\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigations 
involving Non-Market Economy Countries, available at http://ia.ita.doc.gov/policy/bull05-1.pdf.
    \18\ See Notice of Final Determination of Sales at Less Than 
Fair Value: Creatine Monohydrate From the People's Republic of 
China, 64 FR 71104, 71104-05 (December 20, 1999) (where the 
respondent was wholly foreign-owned and, thus, qualified for a 
separate rate).
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    In its separate rate certification, Weifang Dongfang reported that 
it was wholly owned by a domestic entity located in the PRC.\19\ 
Therefore, the Department must analyze whether Weifang Dongfang can 
demonstrate the absence of both de jure and de facto governmental 
control over export activities.
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    \19\ See Weifang Dongfang's Separate Rate Certification, dated 
November 26, 2011.
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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 licenses; (2) any legislative 
enactments decentralizing control of companies; and (3) other formal 
measures by the government decentralizing control of companies.\20\
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    \20\ See Sparklers, 56 FR at 20589.
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    The evidence provided by Weifang Dongfang 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) there are 
applicable legislative enactments decentralizing control of the 
companies; and (3) there are formal measures by the government 
decentralizing control of companies.\21\
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    \21\ See Weifang Dongfang's Separate Rate Certification at 
questions 10-14.
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b. Absence of De Facto Control

    Typically, the Department considers four factors in evaluating 
whether each respondent is subject to de facto 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.\22\
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    \22\ 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).
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    For Weifang Dongfang, we determine that the evidence on the record 
supports a preliminary finding of de facto absence of government 
control based on record statements and supporting documentation showing 
the following: (1) Weifang Dongfang sets its own export prices 
independent of the government authority; (2) Weifang Dongfang retains 
the proceeds from its sales and makes independent decisions regarding 
disposition of profits or financing of losses; (3) Weifang Dongfang has 
the authority to negotiate and sign contracts and other agreements; and 
(4) Weifang Dongfang has autonomy from the government regarding the 
selection of management.\23\
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    \23\ See Weifang Dongfang's Separate Rate Certification at 
questions 15-20.
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    The evidence placed on the record of this review by Weifang 
Dongfang demonstrates an absence of de jure and de facto government 
control with respect to its exports of the merchandise under review, in 
accordance with the criteria identified in Sparklers and Silicon 
Carbide. Therefore, we are preliminarily granting Weifang Dongfang 
separate-rate status.

Calculation of Separate Rate

    In accordance with section 777A(c)(2)(B) of the Act, the Department 
employed a limited examination methodology, as it did not have the 
resources to examine all companies for which a review request was made. 
In addition to the mandatory respondent, only Weifang Dongfang 
submitted timely information as requested by the Department and remains 
subject to the review as a cooperative separate rate respondent.
    We note that the Act and the Department's regulations do not 
directly address the establishment of a rate to be applied to 
individual companies not selected for examination where the Department 
limited its examination in an administrative review pursuant to section 
777A(c)(2) of the Act. The Department's practice in cases involving 
limited selection based on exporters accounting for the largest volumes 
of trade has been to look to section 735(c)(5) of the Act, which 
provides instructions for calculating the all-others rate in an 
investigation, for guidance. Section 735(c)(5)(A) of the Act instructs 
that we are not to calculate an all-others rate using any zero or de 
minimis margins or any margins based entirely on facts available. 
Section 735(c)(5)(B) of the Act also provides that, where all margins 
are zero rates, de minimis rates, or rates based entirely on facts 
available, we may use ``any reasonable method'' for assigning the rate 
to non-selected respondents. In this instance, we based the rate for 
the sole mandatory respondent, Hubscercorp, entirely on facts 
available.
    In exercising this discretion to determine a non-examined rate, the 
Department considers relevant the fact that section 735(c)(5) of the 
Act: (a) Is explicitly applicable to the determination of an all-others 
rate in an investigation; and (b) articulates a preference that the 
Department avoid zero, de minimis rates or rates based entirely on 
facts available when it determines the all others rate. The Act's 
statement that averaging of zero/de minimis margins and margins based 
entirely on facts available may be a reasonable method, and the 
Statement of Administrative Action's (``SAA'') indication that such 
averaging may be the expected method, should be read in the context of 
an investigation.\24\ First, if there are only zero or de minimis 
margins determined in the investigation (and there is no other entity 
to which a facts available margin has been applied), the investigation 
would terminate and no order would be issued. Thus, the provision 
necessarily only applies to circumstances in which there are either 
both zero/de minimis and total facts available margins, or only total 
facts available margins. Second, when such rates are the only rates 
determined in an investigation, there is little information on which to 
rely to determine an appropriate all-others rate. In this context, 
therefore, the SAA's stated expected method is reasonable: the zero/de 
minimis and facts available margins may be the only or best data the 
Department has available to apply to non-selected companies. We note 
that the Department has sought other reasonable means to assign 
separate-rate margins to non-reviewed companies in instances with 
calculated zero rates, de minimis rates, or rates based entirely on 
facts available for the mandatory respondents.\25\
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    \24\ See SAA accompanying the Uruguay Round Agreements Act, H.R. 
Doc. No. 103-316 at 872 (1994), reprinted in 1994 U.S.C.C.A.N. 4040, 
4200.
    \25\ See Certain Frozen Warmwater Shrimp From the Socialist 
Republic of Vietnam: Final Results and Final Partial Rescission of 
Antidumping Duty Administrative Review, 74 FR 47191, 47194 
(September 15, 2009) (``Vietnam Shrimp AR3 Final'').
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    In Vietnam Shrimp AR3 Final, the Department assigned to those 
separate rate companies with no history of an individually calculated 
rate the margin calculated for cooperative separate rate

[[Page 47367]]

respondents in the underlying investigation. However, for those 
separate rate respondents that had received a calculated rate in a 
prior segment, concurrent with or more recent than the calculated rate 
in the underlying investigation, the Department assigned that 
calculated rate as the company's separate rate in the review at hand.
    Thus, we find that a reasonable method in the instant review is to 
assign to the separate rate company Weifang Dongfang with no history of 
an individually calculated rate, the margin calculated for cooperative 
separate rate respondents in the underlying investigation. Pursuant to 
this method, we are preliminarily assigning a rate of 123.83 percent to 
Weifang Dongfang, the margin calculated for cooperative separate rate 
respondents in the underlying investigation.\26\ In assigning this 
separate rate, the Department did not impute the actions of any other 
companies to the behavior of the non-individually examined company, but 
based this determination on record evidence that may be deemed 
reasonably reflective of the potential dumping margin for the non-
individually examined company, Weifang Dongfang, in this administrative 
review.
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    \26\ See Administrative Review of Certain Frozen Warmwater 
Shrimp From the People's Republic of China: Final Results and 
Partial Rescission of Antidumping Duty Administrative Review, 75 FR 
49460, 49463 (August 13, 2010).
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The PRC-Wide Entity

    In addition to the separate-rate certification discussed above, 
there were two companies, Stribbons Guangzhou and Stribbons MNC 
(collectively ``MNC Stribbons'' \27\) for which we initiated a review 
in this proceeding and which previously had a separate rate. In 
accordance with the Department's established NME methodology, a party's 
separate rate status must be established in each segment of the 
proceeding in which the party is involved.\28\ Because these companies 
did not file a timely (i.e., within 60 calendar days after publication 
of Initiation Notice \29\) separate rate certification to demonstrate 
eligibility for a separate rate in this administrative review, or 
certify that they had no shipments,\30\ we preliminarily determine that 
these companies are part of the PRC-wide entity.
---------------------------------------------------------------------------

    \27\ MNC Stribbons filed their Separate Rate Certification on 
behalf of two companies under collective name MNC Stribbons, 
however, the Department initiated our administrative review on two 
companies Stribbons Guangzhou and Stribbons MNC, and we will 
continue to treat these two companies as two separate entities.
    \28\ See Sigma Corp. v. United States, 117 F.3d 1401, 1405-06 
(Fed. Cir. 1997) (affirming the Department's presumption of State 
control over exporters in non-market economy cases).
    \29\ See Initiation Notice, 76 FR at 67134.
    \30\ See id.
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    We note that MNC Stribbons filed a request to be selected as a 
mandatory respondent after one of the selected mandatory respondents 
withdrew from the proceeding. However, MNC Stribbons made this request 
after it had missed the 60-day deadline to demonstrate its eligibility 
for a separate rate (i.e., failed to provide a timely separate rate 
certification) and the Department returned its submissions in 
accordance with 19 CFR 351.302(d). The Department has not selected MNC 
Stribbons as a mandatory respondent because it failed to provide a 
timely separate rate certification in this administrative review.\31\ 
Granting such a request to be a mandatory respondent after the company 
failed to provide a timely separate rate certification would seriously 
undermine our separate rate 60-day deadline. Moreover, companies, such 
as MNC Stribbons, which failed to provide a timely separate rate 
certification, and, therefore, lost their separate rate status would be 
subject to the review as the PRC-wide entity.
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    \31\ See Rejection Letter.
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Use of Facts Otherwise Available and AFA

    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.
    As noted in the ``Background'' section above, Hubschercorp did not 
respond to the Department's Section D questionnaire, Sections A and C 
supplemental questionnaires in this administrative review and informed 
the Department that it would no longer participate in this review.\32\ 
As a result, Hubschercorp failed to provide requested information that 
is necessary for the Department to calculate an antidumping duty rate 
for Hubschercorp in this administrative review. By only responding to 
certain parts of the Department's questionnaires and failing to respond 
to the Department's section D antidumping questionnaire and sections A 
and C supplemental questionnaires, Hubschercorp did not provide the 
Department with the information, such as, for example, complete product 
characteristics related to control numbers of products sold in the 
United States, FOPs, consumption rates of FOPs, and production 
processes data. Without this information, it is not possible for the 
Department to determine or calculate an antidumping margin.
---------------------------------------------------------------------------

    \32\ See Hubschercorp's May 29, 2012, submission.
---------------------------------------------------------------------------

    Hubschercorp withheld requested information, significantly impeded 
this proceeding and did not provide the Department with sufficient 
information to calculate an antidumping duty margin. Therefore, 
pursuant to section 776(a)(1) and (2)(A) and (C) of the Act, the 
Department preliminarily finds that the use of total facts available is 
appropriate.
    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.\33\ Adverse 
inferences are appropriate ``to ensure that the party does not obtain a 
more favorable result by failing to cooperate than if it had cooperated 
fully.'' \34\ Furthermore, ``affirmative evidence of bad faith on the 
part of a respondent is not required before the Department may make an 
adverse inference.'' \35\ We preliminarily find that Hubschercorp did 
not act to the best of its ability in this administrative review, 
within the meaning of section 776(b) of the Act, because it failed to 
respond to the Department's requests for information and failed to 
provide timely information. Therefore, an adverse inference is 
warranted in selecting from the facts otherwise available with respect 
to this company.\36\
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    \33\ See Notice of Final Results of Antidumping Duty 
Administrative Review: Stainless Steel Bar from India, 70 FR 54023, 
54025-26 (September 13, 2005); Notice of Final Determination of 
Sales at Less Than Fair Value and Final Negative Critical 
Circumstances: Carbon and Certain Alloy Steel Wire Rod from Brazil, 
67 FR 55792, 55794-96 (August 30, 2002).
    \34\ See SAA at 870.
    \35\ See Antidumping Duties; Countervailing Duties; Final rule, 
62 FR 27296, 27340 (May 19, 1997); see also Nippon Steel Corp. v. 
United States, 337 F.3d 1373, 1382-83 (Fed. Cir. 2003) (``Nippon'').
    \36\ See Nippon, 337 F.3d at 1382-83.
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Selection of the AFA Rate

    Section 776(b) of the Act provides that the Department may use as 
AFA information derived from: (1) The petition; (2) the final 
determination in

[[Page 47368]]

the investigation; (3) any previous review; or (4) any other 
information placed on the record.
    The Department's practice, when selecting an AFA rate from among 
the possible sources of information, has been to select the highest 
rate on the record of the proceeding and to ensure that the margin is 
sufficiently adverse ``as to effectuate the statutory purposes of the 
adverse facts available rule to induce respondents to provide the 
Department with complete and accurate information in a timely manner.'' 
\37\
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    \37\ See, e.g., Certain Steel Concrete Reinforcing Bars from 
Turkey; Final Results and Rescission of Antidumping Duty 
Administrative Review in Part, 71 FR 65082, 65084 (November 7, 
2006).
---------------------------------------------------------------------------

    As a result, we have preliminarily assigned to Hubschercorp a rate 
of 247.65 percent, which is the highest rate alleged in the petition, 
as noted in the initiation of the less-than-fair-value (``LTFV'') 
investigation, adjusted with the surrogate value for labor rate used in 
the final determination.\38\
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    \38\ 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) (``LTFV 
Initiation'') and Notice of Final Determination of Sales at Less 
Than Fair Value: Narrow Woven Ribbons with Woven Selvedge from the 
People's Republic of China, 75 FR 41808 (July 19, 2010) (``Narrow 
Woven Ribbons Final Determination'') and accompanying Issues and 
Decision Memorandum at Comment 1.
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Corroboration of Secondary Information

    Information from prior segments of the proceeding constitutes 
secondary information and section 776(c) of the Act provides that the 
Department shall, to the extent practicable, corroborate that secondary 
information from independent sources reasonably at its disposal. The 
Department's regulations provide that ``corroborate'' means that the 
Department will satisfy itself that the secondary information to be 
used has probative value.\39\ To be considered corroborated, the 
Department must find the secondary information is both reliable and 
relevant.\40\
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    \39\ See 19 CFR 351.308(d); see also SAA at 870.
    \40\ See, e.g., SAA at 870; 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).
---------------------------------------------------------------------------

    To determine whether the information is reliable, we placed 
information from the investigation on the record of this segment of the 
proceeding, and reviewed the adequacy and accuracy of the information 
in the petition during our pre-initiation analysis for purposes of 
these preliminary results.\41\ We examined evidence supporting the 
calculations in the petition to determine the probative value of the 
margins alleged in the petition for use as AFA for purposes of these 
preliminary results. Based on our examination of the information, as 
discussed in detail in LTFV Initiation, we consider petitioner's 
calculation of the export price and normal value to be reliable. 
Therefore, because we confirmed the accuracy and validity of the 
information underlying the calculation of margins in the petition by 
examining source documents as well as publicly available information, 
we preliminarily determine that the margins in the petition are 
reliable for the purposes of this administrative review.
---------------------------------------------------------------------------

    \41\ See LTFV Initiation, 74 FR at 39294-39296.
---------------------------------------------------------------------------

    To determine the relevance of the petition margin, we placed the 
model-specific rates calculated for the respondents in the LTFV 
investigation on the record of this segment of the proceeding and 
compared the 247.65 percent rate with those model-specific rates. We 
find that this margin is relevant because this is the first review 
under this order (i.e., only one segment removed from the LTFV 
investigation), and the petition rate fell within the range of model-
specific margins calculated for the mandatory respondent in the LTFV 
investigation.\42\
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    \42\ See, e.g., Certain Frozen Warmwater Shrimp From Thailand: 
Preliminary Results and Preliminary Partial Rescission of 
Antidumping Duty Administrative Review, 73 FR 12088, 12092 (March 6, 
2008), unchanged in Certain Frozen Warmwater Shrimp From Thailand: 
Final Results and Final Partial Rescission of Antidumping Duty 
Administrative Review, 73 FR 50933 (August 29, 2008). See also the 
Memorandum to the File from Karine Gziryan, Analyst, entitled, 
``Placement of Proprietary Model-Specific Margins from the Less-
Than-Fair-Value Investigation on the Record and Corroboration of 
Adverse Facts Available Rate for the Preliminary Results in the 
2010-2011 Antidumping Duty Administrative Review of Narrow Woven 
Ribbons with Woven Selvedge from the PRC,'' dated July 31, 2012 
(``Corroboration Memo'').
---------------------------------------------------------------------------

    Further, the Department will consider information reasonably at its 
disposal as to whether there are circumstances that would render a 
margin inappropriate. Where circumstances indicate that the selected 
margin is not appropriate as AFA, the Department may disregard the 
margin and determine an appropriate margin.\43\ Therefore, we examined 
whether any information on the record would discredit the selected rate 
as reasonable facts available. We were unable to find any information 
that would discredit the selected AFA rate.
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    \43\ See, e.g., Fresh Cut Flowers from Mexico; Final Results of 
Antidumping Duty Administrative Review, 61 FR 6812, 6814 (February 
22, 1996) (where the Department disregarded the highest calculated 
margin as AFA because the margin was based on a company's 
uncharacteristic business expense resulting in an unusually high 
margin).
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    Based on the above, for these preliminary results, the Department 
finds the highest rate derived from the petition (i.e., 247.65 percent) 
is, therefore, corroborated to the extent practicable, pursuant to 
Section 776(c) of the Act. Thus, we have assigned Hubschercorp this 
rate as AFA in this administrative review. For further discussion of 
the corroboration of this rate, see the Corroboration Memo.

[[Page 47369]]

Weighted-Average Dumping Margin

    The preliminary weighted-average dumping margin is as follows:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                         Exporter                              margin
                                                            (percentage)
------------------------------------------------------------------------
Hubscher Ribbon Corp., Ltd. (d/b/a Hubschercorp) \44\.....       247.65
Weifang Dongfang Ribbon Weaving Co., Ltd..................       123.83
PRC-wide Entity \45\......................................       247.65
------------------------------------------------------------------------

     
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    \44\ We note that Hubscher Ribbon Corp., Ltd. (d/b/a 
Hubschercorp) is not a separate rate company; it only appears in 
this table because this company is a third-country reseller from 
Canada.
    \45\ For the reasons stated above, the Department has concluded 
that the PRC-wide Entity includes Stribbons (Guangzhou) Ltd. and 
Stribbons (Nanyang) MNC Ltd.
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Disclosure and Public Comment

    The Department intends to disclose calculations performed for these 
preliminary results to the parties within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). Any 
interested party may request a hearing within 30 days of publication of 
these preliminary results.\46\ If a hearing is requested, the 
Department will announce the hearing schedule at a later date. 
Interested parties may submit case briefs and/or written comments no 
later than 30 days after the date of publication of the preliminary 
results of review.\47\ Rebuttal briefs and rebuttals to written 
comments, limited to issues raised in such briefs or comments, may be 
filed no later than five days after the time limit for filing the case 
briefs.\48\ Parties submitting hearing requests or written argument 
should do so pursuant to the Department's electronic filing system, IA 
ACCESS.\49\ The Department intends to issue the final results of this 
administrative review, which will include the results of its analysis 
of issues raised in all comments, and at a hearing, within 120 days of 
publication of these preliminary results, pursuant to section 
751(a)(3)(A) of the Act.
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    \46\ See 19 CFR 351.310(c).
    \47\ See 19 CFR 351.309(c); Parties submitting written comments 
must submit them pursuant to the Department's e-filing regulations.
    \48\ See 19 CFR 351.309(d).
    \49\ See 19 CFR 351.303; https://iaaccess.trade.gov/help/IA%20ACCESS%20User%20Guide.pdf.
---------------------------------------------------------------------------

Assessment Rates

    The Department will determine, and CBP shall assess, antidumping 
duties on all appropriate entries of subject merchandise in accordance 
with the final results of this review and 19 CFR 351.212(b). In this 
case, because we have no calculated rate, we are applying as the 
assessment rate for the separate rate respondent, Weifang Dongfang 
Ribbon Weaving Co., Ltd., the rate from the previous period, and for 
Hubscher Ribbon Corp., Ltd., the AFA rate of 247.65 percent. 
Accordingly, we are adjusting the Weifang Dongfang Ribbon Weaving Co., 
Ltd. and Hubscher Ribbon Corp., Ltd. assessment rates for export 
subsidy in the same manner that we adjusted each company's cash deposit 
rate. (See Cash Deposit section below).
    We intend to instruct CBP to liquidate entries of subject 
merchandise exported by the PRC-wide entity at the PRC-wide rate we 
determine in the final results of this review. The Department intends 
to issue appropriate assessment instructions directly to CBP 15 days 
after publication of the final results of this review.

Cash Deposit Requirements

    While the Department did not conduct a companion countervailing 
duty (``CVD'') administrative review, in the final determination of the 
CVD investigation on narrow woven ribbons from the PRC, the Department 
determined that the product under investigation benefitted from an 
export subsidy.\50\ Accordingly, we will instruct CBP to require an 
antidumping cash deposit equal to the weighted-average amount by which 
the NV exceeds the export price, as indicated above, reduced by an 
amount, as appropriate, determined to constitute an export subsidy in 
the final determination from the investigation, the most recently 
completed segment from the CVD proceeding. Therefore, for Hubscher 
Ribbon Corp., Ltd., and the separate rate respondent, Weifang Dongfang 
Ribbon Weaving Co., Ltd., we will instruct CBP to require an 
antidumping duty cash deposit--for each entry equal to the weighted-
average margin indicated above adjusted for the export subsidy rate 
determined in the CVD final determination. The adjusted cash deposit 
rate for the separate rate respondent Weifang Dongfang Ribbon Weaving 
Co., Ltd., is 123.44 percent and for Hubscher Ribbon Corp., Ltd., is 
247.26 percent.
---------------------------------------------------------------------------

    \50\ See Notice of Final Affirmative Countervailing Duty 
Determination: Narrow Woven Ribbons with Woven Selvedge from the 
People's Republic of China, 75 FR 41801 (July 19, 2010) (``CVD final 
determination'').
---------------------------------------------------------------------------

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for 
shipments of the subject merchandise from the PRC entered, or withdrawn 
from warehouse, for consumption on or after the publication date, as 
provided by section 751(a)(2)(C) of the Act: (1) For Weifang Dongfang 
Ribbon Weaving Co., Ltd. which has a separate rate, the cash deposit 
rate will be that established in the final results of this review; (2) 
for previously investigated or reviewed PRC and non-PRC exporters not 
listed above that received a separate rate in a prior segment of this 
proceeding, the cash deposit rate will continue to be the exporter-
specific rate; (3) for all PRC exporters of subject merchandise that 
have not been found to be entitled to a separate rate, the cash deposit 
rate will be the PRC-wide rate of 247.65 percent \51\; and (4) for all 
non-PRC exporters of subject merchandise which have not received their 
own rate, the cash deposit rate will be the rate applicable to the PRC 
exporter that supplied that non-PRC exporter. These deposit 
requirements, when imposed, shall remain in effect until further 
notice.
---------------------------------------------------------------------------

    \51\ See Notice of Final Determination of Sales at Less Than 
Fair Value: Narrow Woven Ribbons with Woven Selvedge from the 
People's Republic of China, 75 FR 41808 (July 19, 2010).
---------------------------------------------------------------------------

Notification to Importers

    This notice serves as a preliminary reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777(i) of the Act and 19 CFR 351.213(d).

    Dated: July 31, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2012-19299 Filed 8-7-12; 8:45 am]
BILLING CODE 3510-DS-P