[Federal Register: February 2, 2004 (Volume 69, Number 21)]
[Notices]
[Page 4922-4923]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02fe04-21]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-475-059]
Notice of Preliminary Results of Antidumping Duty Changed
Circumstances Review: Pressure Sensitive Plastic Tape from Italy
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Preliminary Results of Antidumping Duty Changed
Circumstances Review.
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SUMMARY: On August 27, 2003, the Department of Commerce (the
Department) published a notice of initiation of changed circumstances
review of the antidumping duty order on pressure sensitive plastic tape
(PSPT) from Italy to determine whether Tyco Adhesives Italia S.p.A.
(Tyco) is a successor-in-interest company to Manuli Tapes S.p.A.
(Manuli). See Notice of Initiation of Antidumping Duty Changed
Circumstances Review: Pressure Sensitive Plastic Tape from Italy, 68 FR
51557 (August 27, 2003) (Notice of Initiation). We have preliminarily
determined that Tyco is the successor-in-interest to Manuli, for
purposes of determining antidumping liability in this proceeding.
Interested parties are invited to comment on these preliminary results.
EFFECTIVE DATE: February 2, 2004.
FOR FURTHER INFORMATION CONTACT: Zev Primor or Paige Rivas, AD/CVD
Enforcement, Group II, Office 4, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-4114
or (202) 482-0651, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 3, 2003, Tyco requested that the Department conduct a
changed circumstances review of the antidumping duty order on PSPT from
Italy pursuant to section 751(b)(1) of the Tariff Act of 1930, as
amended, (the Act), and 19 CFR 351.221(c)(3)(ii)(2003). Tyco claims to
be the successor-in-interest to Manuli Tapes, S.p.A.\1\, and, as such,
claims that it is entitled to receive the same antidumping treatment as
Manuli. On August 7, 2003, at the request of the Department, Tyco
submitted additional information and documentation pertaining to its
changed circumstances request. From November 12 through November 15,
2003, the Department conducted a verification of information pertaining
to this changed circumstances review at Tyco's offices in Novara and
Tyco's plant in Formia, both located in Italy.
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\1\ On December 31, 1999, after merging with another company,
Manuli Autoadesivi S.p.A. changed its corporate name to Manuli Tapes
S.p.A.
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Scope of Review
Imports covered by the review are shipments of PSPT measuring over
1\3/8\ inches in width and not exceeding 4 millimeters in thickness,
currently classifiable under items 3919.90.20 and 3919.90.50 of the
Harmonized Tariff Schedule of the United States (HTSUS). HTSUS
subheadings are provided for convenience and customs purposes. The
written description remains dispositive as to the scope of the product
coverage.
Preliminary Results of Review
In submissions to the Department dated July 3 and August 7, 2003,
Tyco, an Italian holding company, advised the Department that on May 8,
2001, it acquired Manuli from its owner, Manuli Packaging Group, S.p.A.
(Manuli Packaging). Up to that point, Manuli was a wholly-owned
subsidiary of Manuli Packaging. Prior to its purchase of Manuli, Tyco
did not hold an ownership interest in any other company, nor did it
produce or sell any subject or non-subject merchandise.
In antidumping duty changed circumstances reviews involving a
successor-in-interest determination, the Department typically examines
several factors including, but not limited to, changes in: (1)
management; (2) production facilities; (3) supplier relationships; and
(4) customer base. See Brass Sheet and Strip from Canada: Notice of
Final Results of Antidumping Administrative Review, 57 FR 20460, 20462
(May 13, 1992) (Canadian Brass). While no single factor or combination
of factors will necessarily be dispositive, the Department generally
will consider the new company to be the successor to the predecessor
company if the resulting operations are essentially the same as those
of the predecessor company. See, e.g., Industrial Phosphoric Acid from
Israel: Final Results of Changed Circumstances Review, 59 FR 6944, 6945
(February 14, 1994), and Canadian Brass, 57 FR 20460. Thus, if the
record evidence demonstrates that, with respect to the production and
sale of the subject merchandise, the new company operates as the same
business entity as the predecessor company, the Department may assign
the new company the cash deposit rate of its predecessor. See, e.g.,
Fresh and Chilled Atlantic Salmon from Norway: Final
[[Page 4923]]
Results of Changes Circumstances Antidumping Duty Administrative
Review, 64 FR 9979, 9980 (March 1, 1999).
Our review of the evidence provided by Tyco indicates,
preliminarily, that the change in ownership has not significantly
changed the company's personnel, operations, supplier/customer
relationship, or production facilities. With regard to management, at
verification, the Department examined Tyco's payroll records and
employment history of each of its top managers before and after the
acquisition took place. We note, preliminarily, that no significant
changes in management have occurred.
Additionally, as the new corporate entity, Tyco provided a
certified copy of the official corporate registry showing it as a
successor to Manuli as of May 8, 2001, the effective date of the
acquisition, as well as documents showing that since the name change,
Tyco continued Manuli's production of PSPT in the same manner using the
same suppliers and facilities as it did under its previous name of
Manuli. See Memorandum to the File, Antidumping Duty Changed
Circumstances Review of Pressure Sensitive Plastic Tape from Italy:
Verification Report for Tyco Adhesives Italia S.p.A. (TAI) Regarding
Successorship, (Verification Report), at Exhibit 9 and 12.
Furthermore, Tyco provided certified statements from its President
that all activities undertaken by Manuli prior to May 8, 2001, (i.e.,
production, sales, marketing, technical services, order receiving and
freight forwarding of PSPT) have since been performed by Tyco. Finally,
Tyco provided a copy of the Stock Purchase Agreement for Manuli, as
well as a copy of corporate registry under the new name with the
appropriate Italian authorities. See Verification Report, at Exhibit 8
and 10.
In sum, Tyco has presented evidence to establish a prima facie case
of its successorship status. Manuli's acquisition by Tyco has
precipitated minimal changes to the original Manuli corporate
structure. Tyco's management, production facilities, supplier
relationships, sales facilities and customer base are essentially
unchanged from those of Manuli's. Therefore, the record evidence
demonstrates that the new entity essentially operates in the same
manner as the predecessor company. Consequently, we preliminarily
determine that Tyco should be given the same antidumping duty treatment
as Manuli, i.e., zero percent antidumping duty cash deposit rate.
The cash deposit determination from this changed circumstances
review will apply to all entries of the subject merchandise entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of the final results of this changed circumstances review.
See Granular Polytetrafluoroethylene Resin from Italy; Final Results of
Antidumping Duty Changed Circumstances Review, 68 FR 25327 (May 12,
2003). This deposit rate shall remain in effect until publication of
the final results of the next administrative review in which Tyco
participates.
Public Comment
Any interested party may request a hearing within 30 days of
publication of this notice. 19 CFR 351.310(c). Any hearing, if
requested, will be held 44 days after the date of publication of this
notice, or the first working day thereafter. Interested parties may
submit case briefs and/or written comments not later than 30 days after
the date of publication of this notice. 19 CFR 351.309(c)(ii). Rebuttal
briefs, which must be limited to issues raised in such briefs or
comments, may be filed not later than 37 days after the date of
publication of this notice. See 19 CFR 351.309(d). Parties who submit
arguments are requested to submit with the argument (1) a statement of
the issue, (2) a brief summary of the argument, and (3) a table of
authorities.
Consistent with section 351.216(e) of the Department's regulations,
we will issue the final results of this changed circumstances review no
later than 270 days after the date on which this review was initiated.
This notice is in accordance with sections 751(b) and 777(i)(1) of
the Act, and section 351.221(c)(3)(i) of the Department's regulations.
Dated: January 27, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 04-2060 Filed 1-30-04; 8:45 am]