[Federal Register Volume 75, Number 137 (Monday, July 19, 2010)]
[Notices]
[Pages 41801-41804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17541]
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DEPARTMENT OF COMMERCE
International Trade Administration
(C-570-953)
Narrow Woven Ribbons with Woven Selvedge from the People's
Republic of China: Final Affirmative Countervailing Duty Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the ``Department'') has determined
that countervailable subsidies are being provided to producers and
exporters of narrow woven ribbons with woven selvedge from the People's
Republic of China (``PRC''). For information on the estimated
countervailing duty rates, please see the ``Suspension of Liquidation''
section, below.
EFFECTIVE DATE: July 19, 2010.
FOR FURTHER INFORMATION CONTACT: Scott Holland and Anna Flaaten, AD/CVD
Operations, Office 1, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
1279 and (202) 482-5156, respectively.
SUPPLEMENTARY INFORMATION:
Period of Investigation
The period for which we are measuring subsidies, or period of
investigation, is January 1, 2008, through December 31, 2008.
Case History
The following events have occurred since the publication of the
preliminary determination in the Federal Register on December 14, 2009.
See Narrow Woven Ribbons with Woven Selvedge from the People's Republic
of China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Countervailing Duty Determination with Final
Antidumping Duty Determination, 74 FR 66090 (December 14, 2009)
(``Preliminary Determination'').
On December 16, 2009, the Department issued a supplemental
questionnaire to the Government of China (``GOC'') which responded on
January 6, 2010. From January 18, 2010, to January 20, 2010, the
Department conducted verification of the questionnaire responses
submitted by the GOC and mandatory respondent Yama Ribbons and Bows
Co., Ltd. (``Yama''). See Memoranda from Scott Holland and Anna
Flaaten, International Trade Analysts, to Susan H. Kuhbach,
[[Page 41802]]
Office Director, AD/CVD Operations, Office 1, ``Verification Report of
the Xiamen Municipal Government of the People's Republic of China''
(March 17, 2010) and ``Verification Report: Yama Ribbons and Bows Co.,
Ltd.'' (March 17, 2010). On January 20, 2010, the Department issued a
post-preliminary analysis regarding additional subsidy programs. See
Memorandum from Scott Holland and Anna Flaaten, International Trade
Analysts, to Ronald Lorentzen, Deputy Assistant Secretary for Import
Administration, ``Post-Preliminary Findings for Additional Subsidy
Programs'' (January 20, 2010). On February 18, 2010, the Department
extended the due date for the final determination by 60 days in
accordance with its alignment of the final countervailing duty (CVD)
determination with the final determination in the companion antidumping
duty investigation of narrow woven ribbon with woven selvedge from the
PRC. See Preliminary Determination, 74 FR at 66092; Narrow Woven
Ribbons with Woven Selvedge from the People's Republic of China:
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination, 75 FR 7244, 7245-46 (February 18,
2010).
As explained in the memorandum from the Deputy Assistant Secretary
for Import Administration, the Department exercised its discretion to
toll deadlines for the duration of the closure of the Federal
Government from February 5, 2010, through February 12, 2010. Thus, all
deadlines in this segment of the proceeding were extended by seven
days. The revised deadline for the final determination of this
investigation was thus extended to July 10, 2010. See Memorandum to the
Record from Ronald Lorentzen, DAS for Import Administration, regarding
``Tolling of Administrative Deadlines As a Result of the Government
Closure During the Recent Snowstorms,'' dated February 12, 2010.
However, July 10, 2010, falls on a Saturday, and it is the Department's
long-standing practice to issue a determination the next business day
when the statutory deadline falls on a weekend, federal holiday, or any
other day when the Department is closed. See Notice of Clarification:
Application of ``Next Business Day'' Rule for Administrative
Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended,
70 FR 24533 (May 10, 2005). Accordingly, the deadline for completion of
the final determination became July 12, 2010.
On March 18, 2010, the Department postponed the briefing schedule
as described in the Preliminary Determination until further notice to
allow the Department to consider an issue which may have required a
post-preliminary analysis. On May 17, 2010, the Department set the
Briefing and Hearing Schedule and invited interested parties to comment
on the denominator used in the Department's calculation in the
Preliminary Determination of this case.
The Department received case briefs from the GOC, Yama, and Bestpak
Gifts & Crafts Co. Ltd., a Chinese producer and exporter of the subject
merchandise, on June 1, 2010, and a rebuttal brief from the petitioner,
Berwick Offray, LLC and its wholly-owned subsidiary Lion Ribbons
Company, Inc. (collectively, ``Petitioner''), on June 7, 2010. A public
hearing was held on June 14, 2010, where the same parties presented
their arguments.
Scope of the Investigation
The merchandise subject to the investigation 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 investigation 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 investigation include all
narrow woven fabrics, tapes, and labels that fall within this written
description of the scope of this investigation.
Excluded from the scope of the investigation 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;
(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
[[Page 41803]]
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
marrow 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 this investigation 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.
Scope Comments
Prior to the Preliminary Determination in this case, we received a
request from certain retailers of narrow woven ribbons that the
Department modify the scope of the investigation to exclude narrow
woven ribbons included in kits or sets in ``de minimis'' amounts.
Because of concerns over whether the proposed scope exclusion language
would be administrable, we declined to modify the scope in the
companion antidumping duty preliminary determinations, and we did not
use the language suggested by these retailers or the alternative
language proposed by Petitioner. See Narrow Woven Ribbons with Woven
Selvedge from Taiwan: Preliminary Determination of Sales at Less Than
Fair Value and Postponement of Final Determination, 75 FR 7236, 7240
(February 18, 2010) and Narrow Woven Ribbons with Woven Selvedge from
the People's Republic of China: Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination, 75 FR
7244, 7246 (February 18, 2010).
Following the preliminary determinations, on March 24, 2010, and
June 3, 2010, Petitioner submitted additional language for this scope
exclusion. Having determined that the language contained in
Petitioner's June 3, 2010, submission is administrable, we have
incorporated this language in exclusion 13. See the ``Scope of
Investigation'' section, above.
Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Tariff Act of 1930, as amended (the
``Act''), section 701(a)(2) of the Act applies to this investigation.
Accordingly, the U.S. International Trade Commission (``ITC'') must
determine whether imports of the subject merchandise from the PRC
materially injure, or threaten material injury to a U.S. industry. On
September 8, 2009, the ITC issued its affirmative preliminary
determination that there is a reasonable indication that an industry in
the United States is materially injured by reason of allegedly
subsidized imports of narrow woven ribbons with woven selvedge from the
PRC. See Narrow Woven Ribbons With Woven Selvedge From China and
Taiwan, 74 FR 46224 (September 8, 2009) and Narrow Woven Ribbons with
Woven Selvedge from China and Taiwan, Investigation Nos. 701-TA-467 and
731-TA-1165, USITC Pub. 4099 (August 2009).
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the Memorandum from Edward C. Yang,
Acting Deputy Assistant Secretary for Antidumping and Countervailing
Duty Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for
Import Administration, entitled ``Issues and Decision Memorandum for
the Final Determination in the Countervailing Duty Investigation of
Certain Narrow Woven Ribbons With Woven Selvedge from the People's
Republic of China'' (July 12, 2010) (hereafter ``Decision
Memorandum''), which is hereby adopted by this notice. Attached to this
notice as an Appendix is a list of the issues that parties have raised
and to which we have responded in the Decision Memorandum. Parties can
find a complete discussion of all issues raised in this investigation
and the corresponding recommendations in this public memorandum, which
is on file in the Central Records Unit, room 1117 in the main building
of the Commerce Department. In addition, a complete version of the
Decision Memorandum can be accessed directly on the Internet at http://ia.ita.doc.gov/frn/. The paper copy and electronic version of the
Decision Memorandum are identical in content.
Use of Adverse Facts Available
For purposes of this final determination, we have continued to rely
on facts available and have continued to use adverse inferences in
accordance with sections 776(a) and (b) of the Act to determine the
countervailable subsidy rates for Changtai Rongshu Co., Ltd.
(``Changtai Rongshu''), which is one of the two companies selected to
respond to our questionnaires. In addition, consistent with our
findings in the post-preliminary analysis regarding additional subsidy
programs, we have continued to rely on facts available and have
continued to use adverse inferences in accordance with sections
[[Page 41804]]
776(a) and (b) of the Act to find a grant to Yama under the Xiamen
Municipal Science and Technology Program to be specific under section
771(5A)(D)(iii) of the Act. A full discussion of our decision to apply
adverse facts available is presented in the Decision Memorandum in the
section ``Use of Facts Otherwise Available and Adverse Facts
Available.''
Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have
calculated individual rates for Yama and Changtai Rongshu. Section
705(c)(5)(A)(i) of the Act states that for companies not investigated,
we will determine an ``all others'' rate equal to the weighted-average
countervailable subsidy rates established for exporters and producers
individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act. In this case, the all others rate is based on
Yama's calculated rate.
------------------------------------------------------------------------
Exporter/manufacturer Net subsidy rate
------------------------------------------------------------------------
Yama Ribbons and Bows Co., Ltd...................... 1.56
Changtai Rongshu Textile Co., Ltd................... 117.95
All Others.......................................... 1.56
------------------------------------------------------------------------
Also, in accordance with section 703(d) of the Act, we instructed
U.S. Customs and Border Protection to discontinue the suspension of
liquidation for countervailing duty purposes for subject merchandise
entered on or after April 13, 2010, but to continue the suspension of
liquidation of entries made from December 14, 2010, through April 12,
2010.
We will issue a countervailing duty order if the ITC issues a final
affirmative injury determination, and will require a cash deposit of
estimated countervailing duties for such entries of merchandise in the
amounts indicated above. If the ITC determines that material injury, or
threat of material injury, does not exist, this proceeding will be
terminated and all estimated deposits or securities posted as a result
of the suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final determination. In addition, we are making available to
the ITC all non-privileged and non-proprietary information related to
this investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an Administrative Protective Order (``APO''), without the written
consent of the Assistant Secretary for Import Administration.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
This determination is published pursuant to sections 705(d) and
777(i) of the Act.
Dated: July 12, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
APPENDIX
List of Comments and Issues in the Decision Memorandum
General Issues
Comment 1: Double Counting/Overlapping Remedies
Company-Specific Issues
Comment 2: Xiamen Municipal Science and Technology Grant Program -
Specificity
Comment 3: International Market Developing Fund Grants for SMEs -
Specificity
Comment 4: Calculation of Yama's Sales Denominator
AFA
Comment 5: Inclusion of Terminated Programs in the AFA Rate Calculation
All-Others Rate
Comment 6: All-Others Rate Calculation
[FR Doc. 2010-17541 Filed 7-16-10; 8:45 am]
BILLING CODE 3510-DS-S