[Federal Register Volume 74, Number 178 (Wednesday, September 16, 2009)]
[Notices]
[Pages 47555-47557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22340]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-475-059]
Pressure Sensitive Plastic Tape From Italy: Notice of Initiation
of Antidumping Duty Changed Circumstances Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: September 16, 2009.
SUMMARY: In response to a request from Evotape Packaging S.r.l.
(Evotape Packaging), a producer/exporter of pressure sensitive plastic
tape from Italy, and pursuant to section 751(b) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.216 and 351.221(c)(3), the
Department is initiating a changed circumstances review of the
antidumping duty finding
[[Page 47556]]
on pressure sensitive plastic tape from Italy. This review is being
conducted to determine whether there is a successor-in-interest to Tyco
Adhesives Italia S.p.A. (Tyco) for purposes of determining antidumping
liability.
FOR FURTHER INFORMATION CONTACT: Terre Keaton Stefanova or Rebecca
Trainor, AD/CVD Operations, Office 2, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW., Washington, DC 20230; telephone:
(202) 482-1280 and (202) 482-4007, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 27, 2009, pursuant to section 751(b) of the Act and 19 CFR
351.216 and 351.221(c)(3), Evotape Packaging requested that the
Department conduct a changed circumstances review to determine that it
is the successor-in-interest to Tyco,\1\ and therefore assign to it
Tyco's antidumping duty deposit rate for future entries of subject
merchandise. In addition, Evotape Packaging requested that the
Department expedite this review in accordance with 19 CFR
351.221(c)(3)(ii), by issuing the notice of initiation and preliminary
determination simultaneously within 45 days of the filing of the
request. Evotape Packaging further requested that the Department issue
a final affirmative changed circumstances determination within 45 days
of initiation, in accordance with 19 CFR 351.216(e).
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\1\ On March 25, 2004, the Department determined that Tyco was
the successor-in-interest to Manuli Tapes S.p.A. (Manuli). See Final
Results of Antidumping Duty Changed Circumstances Review: Pressure
Sensitive Plastic Tape from Italy, 69 FR 15297 (March 25, 2004).
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On August 28, 2009, at the request of the Department, Evotape
Packaging submitted additional information pertaining to its changed
circumstances review request.
Scope of the Finding
The products covered by the finding are shipments of pressure
sensitive plastic tape measuring over one and three-eighths inches in
width and not exceeding four millimeters in thickness, currently
classifiable under subheadings 3919.90.20 and 3919.90.50 of the
Harmonized Tariff Schedule of the United States (HTSUS). The HTSUS
subheadings are provided for convenience and for customs purposes. The
written description remains dispositive.
Initiation of Changed Circumstances Review
Pursuant to section 751(b)(1) of the Act, the Department will
conduct a changed circumstance review upon receipt of a request from an
interested party or receipt of information concerning an antidumping
duty order \2\ which shows changed circumstances sufficient to warrant
a review of the order.
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\2\ Prior to the Trade Agreements Act of 1979 (1979 Act), Public
Law 96-39, the Treasury Department issued antidumping ``findings.''
Section 106(a) of the 1979 Act expressly preserved the existing
antidumping ``findings'' in the new law, but provided that after
January 1, 1980, the Tariff Act of 1930 would be amended to require
the Department to issue antidumping ``orders'' instead of
``findings.''
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As noted above, on July 27, 2009, Evotape Packaging submitted its
request for a changed circumstances review. With its request, Evotape
Packaging submitted certain information to demonstrate that in May
2005, its parent company (Evotape S.p.A) acquired Tyco's business and
assets, which included two production units (packaging and masking
tape) and related sales offices; and that in December 2007, Evotape
S.p.A restructured the company and created two wholly-owned
subsidiaries (i.e., Evotape Packaging and Evotape Masking S.r.l.
(Evotape Masking)) using the assets and business of the two production
units. Evotape Packaging also provided information pertaining to
management, production facilities, supplier relationships and customer
base with respect to the production and sale of subject merchandise
during the 2005 acquisition and 2007 restructuring. In its August 28,
2009, response to the Department's request for information, Evotape
Packaging provided information regarding the business operations of
Evotape Masking.
In its request, Evotape Packaging claims that it operates as the
same business entity as Tyco with respect to merchandise exported to
the United States,\3\ and that its production facilities have not
changed since it was part of Tyco. In addition, it claims that its
product line, supplier relations, employees and customer base have
remained largely the same, and although there were certain changes in
management, these changes did not have a substantial impact on the
production and sale of subject merchandise.
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\3\ Evotape Packaging states that it is the former production
unit of Tyco that produces and sells pressure sensitive plastic tape
to the United States, i.e., merchandise subject to the antidumping
duty finding. According to Evotape Packaging, Evotape Masking
produces two products that fall within the scope of this finding,
which Tyco also produced when it was in existence. However, Evotape
Packaging states that Evotape Masking does not ship or sell these
products to the United States, and has no future plans to do so.
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Based on the information submitted by Evotape Packaging and in
accordance with section 19 CFR 351.216, the Department finds there is
sufficient information to warrant initiating a changed circumstances
review. Therefore, pursuant to section 751(b)(1) of the Act and 19 CFR
351.216, we are initiating a changed circumstances review to determine
whether there is a successor-in-interest to Tyco.
In making a successor-in-interest determination in antidumping
proceedings, the Department typically examines several factors
including, but not limited to: (1) Management; (2) production
facilities; (3) supplier relationships; and (4) customer base. See,
e.g., Notice of Final Results of Changed Circumstances Antidumping Duty
Administrative Review: Polychloroprene Rubber from Japan, 67 FR 58
(January 2, 2002) (Polychloroprene Rubber from Japan); Brass Sheet and
Strip from Canada; Final Results of Antidumping Duty Administrative
Review, 57 FR 20460 (May 13, 1992) (Canadian Brass). While no single
factor or combination of these factors will necessarily be dispositive,
the Department will generally consider the new company to be the
successor to the previous company if its resulting operation is not
materially dissimilar to that of its predecessor. See, e.g.,
Polychloroprene Rubber from Japan; Industrial Phosphoric Acid from
Israel: Final Results of Changed Circumstances Review, 59 FR 6944
(February 14, 1994); Canadian Brass; Fresh and Chilled Atlantic Salmon
from Norway: Initiation and Preliminary Results of Changed
Circumstances Antidumping Duty Administrative Review, 63 FR 50880
(September 23, 1998) (unchanged in final results, Fresh and Chilled
Atlantic Salmon From Norway; Final Results of Changed Circumstances
Antidumping Duty Administrative Review, 64 FR 9979 (March 1, 1999)).
Thus, if the 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 former company, the Department will
generally accord the new company the same antidumping duty treatment as
its predecessor.
Although Evotape Packaging has submitted information which is
sufficient for purposes of initiating a changed circumstances review,
as discussed above, this information is not a sufficient basis to make
a preliminary successor-in-interest determination at
[[Page 47557]]
this time. Specifically, the Department has questions concerning the
restructuring discussed above with respect to the business operations
of Evotape Masking and Evotape Packaging. It appears from the
information on the record that both companies use facilities once owned
by Tyco (and before Tyco, by Manuli). Manuli/Tyco's antidumping duty
margin may have been calculated based on information derived from all
of these facilities. Therefore, a determination of a successor-in-
interest, for purpose of antidumping liability, requires the Department
to gather further information before it can make a preliminary
successor-in-interest determination.
Accordingly, the Department has determined that it would be
inappropriate to expedite this action by combining the preliminary
results of review with this notice of initiation, as permitted under 19
CFR 351.221(c)(3)(ii) and as requested by Evotape Packaging. As a
result, the Department is not issuing preliminary results for this
changed circumstances review at this time.
The Department will request additional information in accordance
with 19 CFR 351.221(b)(2), and will publish in the Federal Register a
notice of preliminary results of the changed circumstances review, in
accordance with 19 CFR 351.221(b)(4) and (c)(3)(i), which will set
forth the factual and legal conclusions upon which our preliminary
results are based and a description of any action proposed. Interested
parties will have an opportunity to comment on the preliminary results
of review. In accordance with 19 CFR 351.216(e), the Department will
issue the final results of this antidumping duty changed circumstances
review no later than 270 days after the date on which this review was
initiated, or within 45 days if all parties agree to our preliminary
results.
During the course of this antidumping duty changed circumstances
review, cash deposit requirements for the subject merchandise produced
and exported by Evotape Packaging will continue to be the all-others
rate established in the investigation. See Pressure Sensitive Plastic
Tape From Italy; Determination of Injury or Likelihood Thereof, 42 FR
44853 (September 7, 1977). The cash deposit rate requirement will be
altered, if warranted, pursuant only to the final results of this
review.
This notice of initiation is in accordance with sections 751(b)(1)
and 777(i) of the Act and 19 CFR 351.216 and 351.221(c)(3).
Dated: September 10, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for Antidumping and Countervailing
Duty Operations.
[FR Doc. E9-22340 Filed 9-15-09; 8:45 am]
BILLING CODE 3510-DS-P