[Federal Register Volume 74, Number 150 (Thursday, August 6, 2009)]
[Notices]
[Pages 39291-39298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18732]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-952, A-583-844)]
Narrow Woven Ribbons with Woven Selvedge from the People's
Republic of China and Taiwan: Initiation of Antidumping Duty
Investigations
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: August 6, 2009.
FOR FURTHER INFORMATION CONTACT: Elizabeth Eastwood at (202) 482-3874
or Miriam Eqab at (202) 482-3693 (Taiwan), AD/CVD Operations, Office 2;
Maisha Cryor at (202) 482-5831 or Zhulieta Willbrand at (202) 482-3147
(the People's Republic of China (the ``PRC'')), AD/CVD Operations,
Office 4, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On July 9, 2009, the Department of Commerce (the ``Department'')
received petitions concerning imports of narrow woven ribbons with
woven selvedge (``narrow woven ribbon'') from the PRC and Taiwan filed
in proper form by Berwick Offray LLC and its wholly-owned subsidiary
Lion Ribbon Company, Inc. (collectively, the ``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 ``Petitions''). On July 14,
2009, the Department contacted the Petitioner by telephone seeking
additional information and clarification regarding the Petition. See
Memo to the File from Matthew Glass, ``Scope Call with the
Petitioner,'' dated July 14, 2009. On July 15, 2009, and July 22, 2009,
the Department issued a request for additional information and
clarification of certain areas of the Petitions. Also, on July 23,
2009, the Department contacted the Petitioner by telephone seeking
additional information and clarification
[[Page 39292]]
regarding the Petitions. See Memo to the File from Meredith A.W.
Rutherford, ``General Issues Discussion with the Petitioner,'' dated
July 23, 2009. Based on the Department's requests, the Petitioner filed
additional information on July 21, 2009 (hereinafter, Supplement to the
AD/CVD Petitions, dated July 21, 2009) and July 27, 2009 (hereinafter,
Second Supplement to the AD/CVD Petitions, dated July 27, 2009). On
July 28, 2009, the Department again contacted the Petitioner by
telephone seeking additional information and clarification regarding
certain general issues of the Petitions. See Memo to the File from
Meredith A.W. Rutherford, ``Phone Call with the Petitioner,'' dated
July 28, 2009, and Memo to the File from Elizabeth Eastwood, ``Scope
Calls with the Petitioner,'' dated July 29, 2009. Based on the
Department's requests, the Petitioner timely filed additional
information pertaining to the Petition on July 29, 2009 (hereinafter,
Third Supplement to the AD/CVD Petitions, dated July 29, 2009). The
period of investigation (``POI'') for the PRC is January 1, 2009,
through June 30, 2009. The POI for Taiwan is July 1, 2008, through June
30, 2009. See 19 CFR 351.204(b)(1).
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the ``Act''), the Petitioner alleges that imports of narrow
woven ribbon from the PRC and Taiwan are being, or are likely to be,
sold in the United States at less than fair value, within the meaning
of section 731 of the Act, and that such imports are materially
injuring, or threatening material injury to, an industry in the United
States.
The Department finds that the Petitioner filed the Petitions on
behalf of the domestic industry because the Petitioner is an interested
party as defined in section 771(9)(C) of the Act and has demonstrated
sufficient industry support with respect to the antidumping duty
investigations that the Petitioner is requesting that the Department
initiate (see ``Determination of Industry Support for the Petitions''
section below).
Scope of Investigations
The products covered by these investigations are narrow woven
ribbons with woven selvedge from the PRC and Taiwan. For a full
description of the scope of the investigations, please see the ``Scope
of Investigations,'' in Appendix I of this notice.
Comments on Scope of Investigations
During our review of the Petitions, we discussed the scope with the
Petitioner to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. Moreover, as
discussed in the preamble to the regulations (Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)),
we are setting aside a period for interested parties to raise issues
regarding product coverage. The Department encourages all interested
parties to submit such comments by August 18, 2009, twenty calendar
days from the signature date of this notice. Comments should be
addressed to Import Administration's APO/Dockets Unit, Room 1870, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230. The period of scope consultations is intended to
provide the Department with ample opportunity to consider all comments
and to consult with parties prior to the issuance of the preliminary
determinations.
Comments on Product Characteristics for Antidumping Duty Questionnaires
We are requesting comments from interested parties regarding the
appropriate physical characteristics of narrow woven ribbon to be
reported in response to the Department's antidumping questionnaires.
This information will be used to identify the key physical
characteristics of the subject merchandise in order to more accurately
report the relevant factors and costs of production, as well as to
develop appropriate product comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate listing of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as 1) general product
characteristics and 2) the product comparison criteria. We note that it
is not always appropriate to use all product characteristics as product
comparison criteria. We base product comparison criteria on meaningful
commercial differences among products. In other words, while there may
be some physical product characteristics utilized by manufacturers to
describe narrow woven ribbon, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in product
matching. Generally, the Department attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the antidumping duty questionnaires, we must
receive comments at the above-referenced address by August 18, 2009.
Additionally, rebuttal comments must be received by August 25, 2009.
Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The International Trade Commission (``ITC''),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product (see section 771(10) of the Act), they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law. See USEC, Inc. v. United States, 132 F.
Supp. 2d 1, 8 (Ct. Int'l Trade 2001), citing Algoma Steel
[[Page 39293]]
Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (Ct. Int'l Trade
1988), aff'd 865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 U.S. 919
(1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the Petitioner does not
offer a definition of domestic like product distinct from the scope of
the investigations. Based on our analysis of the information submitted
on the record, we have determined that narrow woven ribbon constitutes
a single domestic like product and we have analyzed industry support in
terms of that domestic like product. For a discussion of the domestic
like product analysis in this case, see Antidumping Duty Investigation
Initiation Checklist: Narrow woven ribbon from the PRC (``PRC
Initiation Checklist'') at Attachment II, Industry Support, and
Antidumping Duty Investigation Initiation Checklist: Narrow woven
ribbon from Taiwan (``Taiwan Initiation Checklist'') at Attachment II,
Industry Support, dated concurrently with this notice and on file in
the Central Records Unit (``CRU''), Room 1117 of the main Department of
Commerce building.
In determining whether the Petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of Investigations'' section above. To
establish industry support, the Petitioner provided its production of
the domestic like product for the year 2008, and compared this to the
estimated total production of the domestic like product for the entire
domestic industry. See Volume I of the Petition, at 7, and Exhibits 2,
4, and 5, Supplement to the AD/CVD Petitions, dated July 21, 2009, at
A-9-11, Second Supplement to the AD/CVD Petitions, dated July 27, 2009,
at A-1-2 and Exhibit 117, and Third Supplement to the AD/CVD Petitions,
dated July 29, 2009, at Attachment II. To estimate 2008 production of
the domestic like product, the Petitioner used its own data and
industry specific knowledge. The Petitioner calculated total domestic
production based on its own production plus estimates from the nine
other producers of the domestic like product in the United States. See
id.; see also PRC Initiation Checklist at Attachment II, and Taiwan
Initiation Checklist at Attachment II.
Our review of the data provided in the Petitions, supplemental
submissions, and other information readily available to the Department
indicates that the Petitioner has established industry support. First,
the Petitions established support from domestic producers (or workers)
accounting for more than 50 percent of the total production of the
domestic like product and, as such, the Department is not required to
take further action in order to evaluate industry support (e.g.,
polling). See section 732(c)(4)(D) of the Act; see also PRC Initiation
Checklist at Attachment II, and Taiwan Initiation Checklist at
Attachment II. Second, the domestic producers (or workers) have met the
statutory criteria for industry support under section 732(c)(4)(A)(i)
of the Act because the domestic producers (or workers) who support the
Petitions account for at least 25 percent of the total production of
the domestic like product. See PRC Initiation Checklist at Attachment
II, and Taiwan Initiation Checklist at Attachment II. Finally, the
domestic producers (or workers) have met the statutory criteria for
industry support under section 732(c)(4)(A)(ii) of the Act because the
domestic producers (or workers) who support the Petitions account for
more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the Petitions. Accordingly, the Department determines
that the Petitions were filed on behalf of the domestic industry within
the meaning of section 732(b)(1) of the Act. See id.
The Department finds that the Petitioner filed the Petitions on
behalf of the domestic industry because it is an interested party as
defined in section 771(9)(C) of the Act and it has demonstrated
sufficient industry support with respect to the antidumping duty
investigations that it is requesting the Department initiate. See id.
Allegations and Evidence of Material Injury and Causation
The Petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at less than normal value (``NV''). In addition, the
Petitioner alleges that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.
The Petitioner contends that the industry's injured condition is
illustrated by reduced market share, underselling and price depressing
and suppressing effects, increased import penetration, lost sales and
revenue, reduced production, reduced capacity, reduced capacity
utilization, reduced shipments, reduced employment, and an overall
decline in financial performance. We have assessed the allegations and
supporting evidence regarding material injury, threat of material
injury, and causation, and we have determined that these allegations
are properly supported by adequate evidence and meet the statutory
requirements for initiation. See PRC Initiation Checklist at Attachment
III, Injury, and Taiwan Initiation Checklist at Attachment III, Injury.
Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which the Department based its decision to
initiate these investigations of imports of narrow woven ribbon from
the PRC and Taiwan. The sources of data for the deductions and
adjustments relating to the U.S. price, the factors of production (for
the PRC) and constructed value (``CV'') (for Taiwan) are also discussed
in the country-specific initiation checklists. See PRC Initiation
Checklist and Taiwan Initiation Checklist. Should the need arise to use
any of this information as facts available under section 776 of the Act
in our preliminary or final determinations, we will reexamine the
information and revise the margin calculations, if appropriate.
Export Price
The PRC
For the PRC, the Petitioner calculated export price (``EP'') based
on a price quote made during the POI for narrow woven ribbon products
by a Chinese producer, sale term free on board (``FOB''). See PRC
Initiation Checklist; see also Volume I of the Petitions at 24. To be
conservative, the Petitioner did not make specific adjustments to the
EP for domestic inland freight from the plant to the Chinese port. Id.
However, the Petitioner did make an adjustment for foreign brokerage
and handling. Id. Specifically, the Petitioner calculated PRC brokerage
and handling by using the brokerage and handling surrogate value from
Certain Steel Grating from the People's Republic of China: Initiation
of Antidumping Duty Investigation, 74 FR 30273 (June 25, 2009) (``Steel
Grating From China''), and adjusted it for inflation for the POI. See
Steel Grating From China, 74 FR at
[[Page 39294]]
30276; see also Supplement to the AD/CVD Petitions, dated July 21,
2009, at 4 and Exhibit 93; and PRC Initiation Checklist. In addition,
the Petitioner converted brokerage and handling expenses into U.S.
dollars based on the POI-average rupee/U.S. dollar exchange rate, as
reported on the Department's website. See Volume II of the Petitions,
at Exhibit 42, and Supplement to the AD/CVD Petitions, dated July 21,
2009, at Exhibit 98.
Taiwan
For Taiwan, the Petitioner calculated EP based on price quotes made
during the POI for narrow woven ribbon products from a Taiwan producer/
exporter, sale term FOB. See Taiwan Initiation Checklist; see also
Volume I of the Petitions at 28-29 and Volume II of the Petitions at
Exhibits 58, 59, and 60. To be conservative, the Petitioner did not
make specific adjustments to the EP for domestic inland freight from
the plant to the Taiwanese port. See id. However, the Petitioner did
make an adjustment for foreign brokerage and handling. See id.
Specifically, the Petitioner calculated Taiwanese brokerage and
handling using Taiwan-specific brokerage and handling expenses. See
Volume II of the Petitions, at Exhibit 59; see also Supplement to the
AD/CVD Petitions, dated July 21, 2009, at Exhibit 108 and Taiwan
Initiation Checklist.
Normal Value
The PRC
The Petitioner states that the PRC is a non-market economy
(``NME'') country and no determination to the contrary has been made by
the Department. See Volume I of the Petitions, at 19. The Petitioner
states that the Department has treated the PRC as an NME country in
every administrative proceeding in which the PRC has been involved, and
has continued to do so in recent months. See id.; see also Citric Acid
and Certain Citrate Salts From the People's Republic of China: Final
Affirmative Determination of Sales at Less Than Fair Value, 74 FR 16838
(April 13, 2009); see also Certain Circular Welded Carbon Quality Steel
Line Pipe from the People's Republic of China: Final Determination of
Sales at Less Than Fair Value, 74 FR 14514 (March 31, 2009).
In accordance with section 771(18)(C)(i) of the Act, the
presumption of NME status remains in effect until revoked by the
Department. The presumption of NME status for the PRC has not been
revoked by the Department and, therefore, remains in effect for
purposes of the initiation of this investigation. Accordingly, the NV
of the product for the PRC investigation is appropriately based on
factors of production valued in a surrogate market-economy country in
accordance with section 773(c) of the Act. In the course of the PRC
investigation, all parties, including the public, will have the
opportunity to provide relevant information related to the issue of the
PRC's NME status and the granting of separate rates to individual
exporters.
Citing section 773(c)(4) of the Act, the Petitioner contends that
India is the appropriate surrogate country for the PRC because: 1) it
is at a level of economic development comparable to that of the PRC;
and 2) it is a significant producer of narrow woven ribbon. See Volume
I of the Petitions at 19-21, and Volume II of the Petitions, at Exhibit
32. Based on the information provided by the Petitioner, we believe
that it is appropriate to use India as a surrogate country for
initiation purposes. After initiation of the investigation, interested
parties will have the opportunity to submit comments regarding
surrogate-country selection and, pursuant to 19 CFR 351.301(c)(3)(i),
will be provided an opportunity to submit publicly available
information to value factors of production within 40 days after the
date of publication of the preliminary determination.
The Petitioner calculated the NV and dumping margins for the U.S.
price, discussed above, using the Department's NME methodology as
required by 19 CFR 351.202(b)(7)(i)(C) and 19 CFR 351.408. The
Petitioner calculated NV based on its own consumption rates for
producing narrow woven ribbon in 2009. See Volume I of the Petitions at
18, and Volume II of the Petitions, at Exhibit 29, and Supplement to
the AD/CVD Petitions, dated July 21, 2009, at Exhibit 95. In
calculating NV, the Petitioner based the quantity of each of the inputs
used to manufacture and pack narrow woven ribbon in the PRC based on an
analysis of Chinese narrow woven ribbon samples obtained by the
Petitioner, as well as on its own production experience during the POI.
See id. The Petitioner states that the actual usage rates of the
foreign manufacturers of narrow woven ribbon are not reasonably
available to it; however, the Petitioner notes that the production of
narrow woven ribbon relies on the same basic technology worldwide. See
Volume I of the Petitions at 18. The Petitioner asserts that the
Chinese producers of narrow woven ribbon use largely the same
production equipment, material inputs, and production processes as the
Petitioner itself. See Volume I of the Petitions at 18, and Exhibit 27,
and Volume II of the Petitions, at Exhibit 29.
Raw materials (e.g., yarn) are significant inputs used in the
production of narrow woven ribbon. The Petitioner determined the
consumption of all raw materials and packing materials based on
examination and analysis of samples of white single face satin narrow
woven ribbon and black single face satin narrow woven ribbon from the
PRC as well as its own production experience. See Volume I of the
Petitions at 18, and Volume II of the Petitions at Exhibit 29, and
Supplement to the AD/CVD Petitions, dated July 21, 2009, at Exhibit 95.
The Petitioner valued the factors of production based on reasonably
available, public surrogate-country data, including Indian import
statistics from the World Trade Atlas (``WTA''). See Volume I of the
Petitions, at 21, and Volume II of the Petitions, at Exhibit 34. The
Petitioner excluded from these import statistics imports from countries
previously determined by the Department to be NME countries and from
Indonesia, the Republic of Korea, and Thailand as the Department has
previously excluded prices from these countries because they maintain
broadly available, non-industry-specific export subsidies. See Volume I
of the Petition at 22. In addition, the Petitioner made currency
conversions, where necessary, based on the POI-average rupee/U.S.
dollar exchange rate, as reported on the Department's website. See
Volume I of the Petitions, at 23, and Volume II of the Petitions, at
Exhibit 42. Further, the Petitioner inflated certain factors of
production, where necessary, on a POI basis. See Volume I of the
Petitions, at 23, and Volume II of the Petitions, at Exhibit 41. The
Petitioner determined labor costs using the labor consumption, in
hours, derived from its own experience. See Volume II of the Petitions,
at Exhibit 29, and Supplement to the AD/CVD Petitions, dated July 21,
2009, at Exhibit 95. The Petitioner valued labor costs using the
Department's NME Wage Rate for the PRC at http://ia.ita.doc.gov/wages/05wages/05wages-051608.html. See Volume I of the Petitions, at 22, and
Volume II of the Petitions, at Exhibit 35. For purposes of initiation,
the Department determines that the surrogate values used by the
Petitioner are reasonably available and, thus, acceptable for purposes
of initiation.
The Petitioner determined electricity costs using the electricity
consumption, in kilowatt hours, derived from its own experience. See
Volume I of the
[[Page 39295]]
Petitions, at 22, and Volume II of the Petitions, at Exhibits 29 and
43, and Supplement to the AD/CVD Petitions, dated July 21, 2009, at
Exhibit 95. The Petitioner valued electricity using the Indian
electricity rate reported by the Central Electric Authority of the
Government of India. See Volume I of the Petitions, at 22, and Volume
II of the Petitions, at Exhibit 36.
The Petitioner determined natural gas costs using the natural gas
consumption derived from its own experience. See Volume I of the
Petitions, at 22, and Volume II of the Petitions, at Exhibit 29. The
Petitioner valued natural gas using the Indian rate reported by the Gas
Authority of India, Ltd. See Volume I of the Petitions, at 22, and
Volume II of the Petitions, at Exhibit 38. The Petitioner adjusted the
Indian natural gas rates to make them contemporaneous with the POI
using Indian wholesale price indices as published by the International
Monitory Fund. See Supplement to the AD/CVD Petitions, dated July 21,
2009, at Exhibit 97.
The Petitioner determined water costs using the water consumption
derived from its own experience. See Volume I of the Petitions, at 22,
and Volume II of the Petitions, at Exhibit 29. The Petitioner valued
water based on information from the Maharastra Industrial Development
Corporation, which is contemporaneous with the POI. See Volume I of the
Petitions, at 22, and Volume II of the Petitions at 22, and Exhibit 37.
The Petitioner based factory overhead, selling, general and
administrative (``SG&A''), and profit on data from Ratan Glitter
Industries Ltd. (``Ratan''), a ribbon producer, for the fiscal year
April 2007 through March 2008. See Volume I of the Petitions, at 23,
and Volume II of the Petitions, at Exhibit 39. The Petitioner states
that Ratan is an Indian producer of in-scope ribbon. See Volume I of
the Petitions at 23. Therefore, for purposes of the initiation, the
Department finds the Petitioner's use of Ratan's financial ratios
appropriate.
Taiwan
With respect to NV for the Taiwan investigation, the Petitioner
states that neither home-market prices nor third-country POI prices of
narrow woven ribbon produced in Taiwan were reasonably available.
According to the Petitioner, it was unsuccessful in obtaining Taiwanese
POI pricing information despite its best efforts. See Volume I of the
Petitions at 16-17, and Exhibit 2. Further, the Petitioner claims it
was unable to base NV on publicly available information covering
Taiwanese third-country export prices because exports of narrow woven
ribbon from Taiwan are classified in Taiwan's export schedule under
Harmonized Tariff Schedule (``HTS'') number 5806.32.1000. According to
the Petitioner, this HTS category includes both in-scope and out-of-
scope ribbons including typewriter ribbons, ribbons exceeding 12
centimeters in width, and ribbons without woven selvedge. Therefore,
the Petitioner based NV on CV.
Pursuant to section 773(e) of the Act, CV consists of the cost of
manufacturing (``COM''), SG&A expenses, packing expenses, and profit.
In calculating COM and packing, the Petitioner based the quantity of
each of the inputs used to manufacture and pack narrow woven ribbon in
Taiwan based on an analysis of Taiwanese narrow woven ribbon samples
obtained by the Petitioner, as well as on its own production experience
during the POI. See Volume I of the Petitions, at 18, Volume II of the
Petitions, at Exhibit 29, and Supplement to the AD/CVD Petitions, dated
July 21, 2009, at Exhibit 95. The Petitioner states that the actual
usage rates of the foreign manufacturers of narrow woven ribbon are not
reasonably available to it; however, the Petitioner notes that the
production of narrow woven ribbon relies on the same basic technology
worldwide. The Petitioner asserts that the Taiwanese producers of
narrow woven ribbon use largely the same production equipment, material
inputs, and production processes as the Petitioner itself. See Volume I
of the Petitions at 18 and Exhibit 27.
The Petitioner multiplied the usage quantities of the inputs used
to manufacture and pack narrow woven ribbon by the Taiwanese values
based on publicly available data. See Volume I of the Petitions, at 25-
28 and Supplement to the AD/CVD Petitions, dated July 21, 2009, at
Exhibits 105, 106, and 107.
Raw materials (e.g., yarn) are significant inputs used in the
production of narrow woven ribbon. The Petitioner determined the
consumption of all raw materials and packing materials based on
examination and analysis of samples of white single face satin narrow
woven ribbon and black single face satin narrow woven ribbon from
Taiwan, as well as its own production experience. See Volume I of the
Petitions at 18, Volume II of the Petitions, at Exhibit 29, and
Supplement to the AD/CVD Petitions, dated July 21, 2009, at Exhibit 95.
The Petitioner valued all raw materials and packing materials using
Taiwanese import statistics as reflected in the WTA data for the POI.
The Petitioner excluded from these import statistics imports from
countries previously determined by the Department to be NME countries
and from India, Indonesia, the Republic of Korea, and Thailand as the
Department has previously excluded prices from these countries because
they maintain broadly available, non-industry-specific export
subsidies. See Volume I of the Petitions at 26 and Volume II of the
Petitions, at Exhibit 48. Because Taiwanese import statistics report
import values in Taiwanese dollars, the Petitioner converted the import
values into U.S. dollars using the Department's POI exchange rates. See
Volume I of the Petitions at 28 and Volume II of the Petitions, at
Exhibit 56.
The Petitioner determined labor costs using the labor consumption
in hours derived from its own experience. As the Petitioner did not
have access to the cost of labor inputs in the production of narrow
woven ribbon in Taiwan, it relied on data available from the
International Labour Organization's database at http://laborsta.ilo.org
to determine the average wage rate in Taiwan. See Volume I of the
Petitions at 34 and Volume II of the Petitions, at Exhibit 49. The
Petitioner adjusted Taiwanese labor rates to make them contemporaneous
with the POI using Taiwanese wholesale price indices as published by
the Directorate General of Budget, Accounting and Statistics, Republic
of China. The Petitioner converted the Taiwanese labor rates into U.S.
dollars using the Department's POI exchange rates. See Volume I of the
Petitions at 26, Volume II of the Petitions, at Exhibit 49, and
Supplement to the AD/CVD Petitions, dated July 21, 2009, at Exhibit
106.
The Petitioner determined the costs of electricity, water, and
natural gas using consumption amounts derived from its own experience.
The Petitioner valued electricity and natural gas using the Taiwanese
electricity and natural gas rates for the industry reported by the
Energy Information Administration at http://www.eia.doe.gov/emeu/international/. Because Taiwanese electricity and natural gas rates are
reported in U.S. dollars, the Petitioner did not make currency
conversions. The Petitioner adjusted the Taiwanese electricity and
natural gas rates to make them contemporaneous with the POI using
Taiwanese wholesale price indices as published by the Directorate
General of Budget, Accounting and Statistics, Republic of China. See
Volume I of the Petitions at 26; Volume II of the Petitions, at
Exhibits 50, 52, and 55, and Supplement to the AD/CVD Petitions, dated
July 21, 2009, at Exhibit
[[Page 39296]]
106. The Petitioner valued water using the Taiwanese rates published by
Taiwan Water Corporation, which are contemporaneous with the POI. The
Petitioner converted the Taiwanese water rates into U.S. dollars using
the Department's POI exchange rates. See Volume I of the Petitions at
26; Volume II of the Petitions at Exhibit 51, and Supplement to the AD/
CVD Petitions, dated July 21, 2009, at C 2.
To calculate factory overhead, SG&A, interest expenses, and a
profit rate, the Petitioner relied on financial statements of a
Taiwanese producer of textile products, Far Eastern Textile Ltd. See
Supplement to the AD/CVD Petitions, dated July 21, 2009, at C 3, and
Exhibits 103 and 104. See also Taiwan Initiation Checklist.
Fair-Value Comparisons
Based on the data provided by the Petitioner, there is reason to
believe that imports of narrow woven ribbon from the PRC and Taiwan are
being, or are likely to be, sold in the United States at less than fair
value. Based on a comparison of EPs and NV calculated in accordance
with section 773(c) of the Act, the estimated dumping margins for
narrow woven ribbon from the PRC range from 208.80 percent to 231.40
percent. See PRC Initiation Checklist. Based on a comparison of EPs and
CV calculated in accordance with section 773(a)(4) of the Act, the
estimated dumping margins for narrow woven ribbon from Taiwan range
from 116.60 percent to 137.20 percent. See Taiwan Initiation Checklist.
Initiation of Antidumping Investigations
Based upon the examination of the Petitions on narrow woven ribbon
from the PRC and Taiwan, the Department finds that the Petitions meet
the requirements of section 732 of the Act. Therefore, we are
initiating antidumping duty investigations to determine whether imports
of narrow woven ribbon from the PRC and Taiwan are being, or are likely
to be, sold in the United States at less than fair value. In accordance
with section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determinations no later than
140 days after the date of this initiation.
Targeted-Dumping Allegations
On December 10, 2008, the Department issued an interim final rule
for the purpose of withdrawing 19 CFR 351.414(f) and (g), the
regulatory provisions governing the targeted- dumping analysis in
antidumping duty investigations, and the corresponding regulation
governing the deadline for targeted-dumping allegations, 19 CFR
351.301(d)(5). See Withdrawal of the Regulatory Provisions Governing
Targeted Dumping in Antidumping Duty Investigations, 73 FR 74930
(December 10, 2008). The Department stated that ``{w{time} ithdrawal
will allow the Department to exercise the discretion intended by the
statute and, thereby, develop a practice that will allow interested
parties to pursue all statutory avenues of relief in this area.'' See
id. at 74931.
In order to accomplish this objective, if any interested party
wishes to make a targeted- dumping allegation in any of these
investigations pursuant to section 777A(d)(1)(B) of the Act, such
allegations are due no later than 45 days before the scheduled date of
the country-specific preliminary determination.
Respondent Selection
The PRC
For this investigation, the Department will request quantity and
value information from all known exporters and producers identified
with complete contact information in the Petitions. The quantity and
value data received from NME exporters/producers will be used as the
basis to select the mandatory respondents.
The Department requires that the respondents submit a response to
both the quantity and value questionnaire and the separate-rate
application by the respective deadlines in order to receive
consideration for separate-rate status. See Circular Welded Austenitic
Stainless Pressure Pipe from the People's Republic of China: Initiation
of Antidumping Duty Investigation, 73 FR 10221, 10225 (February 26,
2008); Initiation of Antidumping Duty Investigation: Certain Artist
Canvas From the People's Republic of China, 70 FR 21996, 21999 (April
28, 2005). The Department will post the quantity and value
questionnaire along with the filing instructions on the Import
Administration website at http://ia.ita.doc.gov/ia-highlights-and-news.html and a response to the quantity and value questionnaire is due
no later than August 19, 2009. Also, the Department will send the
quantity and value questionnaire to those PRC companies identified in
the Supplement to the AD/CVD Petitions, dated July 21, 2009, at Exhibit
116, and Second Supplemental to the AD/CVD Petitions, dated July 27,
2009, at B1-B4.
Taiwan
For this investigation, the Department intends to select
respondents based on U.S. Customs and Border Protection (``CBP'') data
for U.S. imports under the Harmonized Tariff Schedule of the United
States (``HTSUS'') numbers 5806.32.1020, 5806.32.1030, 5806.32.1050,
and 5806.32.1060, the four HTSUS categories most specific to the
subject merchandise, during the POI. We intend to release the CBP data
under Administrative Protective Order (``APO'') to all parties with
access to information protected by APO within five days of publication
of this Federal Register notice and make our decision regarding
respondent selection within 20 days of publication of this notice. The
Department invites comments regarding the CBP data and respondent
selection within ten days of publication of this Federal Register
notice.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Department's website at http://ia.ita.doc.gov/apo.
Separate Rates
In order to obtain separate-rate status in NME investigations,
exporters and producers must submit a separate-rate status application.
See Policy Bulletin 05.1: Separate-Rates Practice and Application of
Combination Rates in Antidumping Investigations involving Non-Market
Economy Countries (April 5, 2005) (Separate Rates and Combination Rates
Bulletin), available on the Department's website at http://ia.ita.doc.gov/policy/bull05-1.pdf. Based on our experience in
processing the separate-rate applications in previous antidumping duty
investigations, we have modified the application for this investigation
to make it more administrable and easier for applicants to complete.
See, e.g., Initiation of Antidumping Duty Investigation: Certain New
Pneumatic Off-the-Road Tires From the People's Republic of China, 72 FR
43591, 43594-95 (August 6, 2007). The specific requirements for
submitting the separate-rate application in this investigation are
outlined in detail in the application itself, which will be available
on the Department's website at <http://ia.ita.doc.gov/ia-highlights-and-news.html> on the date of publication of this initiation notice in
the Federal Register. The separate-rate application will be due 60 days
after publication of this initiation notice. For exporters and
producers who submit a separate-rate status application and
subsequently are
[[Page 39297]]
selected as mandatory respondents, these exporters and producers will
no longer be eligible for consideration for separate rate status unless
they respond to all parts of the questionnaire as mandatory
respondents. As noted in the ``Respondent Selection'' section above,
the Department requires that respondents submit a response to both the
quantity and value questionnaire and the separate-rate application by
the respective deadlines in order to receive consideration for
separate-rate status. The quantity and value questionnaire will be
available on the Department's website at <http://ia.ita.doc.gov/ia-highlights-and-news.html> on the date of the publication of this
initiation notice in the Federal Register.
Use of Combination Rates in an NME Investigation
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in this
investigation. The Separate Rates and Combination Rates Bulletin
states:
{w{time} hile 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 applies 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.
See Separate Rates and Combination Rates Bulletin at 6 (emphasis
added).
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public versions of the Petitions have been
provided to the representatives of the Governments of the PRC and
Taiwan. Because of the large number of producers/exporters identified
in the Petition, the Department considers the service of the public
version of the Petition to the foreign producers/exporters satisfied by
the delivery of the public version to the Government of the PRC,
consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiations, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, no later than August 24,
2009, whether there is a reasonable indication that imports of narrow
woven ribbon from the PRC and Taiwan are materially injuring, or
threatening material injury to a U.S. industry. A negative ITC
determination with respect to any country will result in the
investigation being terminated for that country; otherwise, these
investigations will proceed according to statutory and regulatory time
limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: July 29, 2009.
Ronald K. Lorentzen,
Assistant Secretary for Import Administration.
Appendix I
Scope of the Investigations
The merchandise subject to the investigations 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 investigations 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 investigations include all narrow
woven fabrics, tapes, and labels that fall within this written
description of the scope of the investigations.
Excluded from the scope of the investigations 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;
[[Page 39298]]
(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 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; 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 the investigations 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.
[FR Doc. E9-18732 Filed 8-5-09; 8:45 am]
BILLING CODE 3510-DS-S