[Federal Register Volume 75, Number 38 (Friday, February 26, 2010)]
[Notices]
[Pages 8925-8926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4072]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-475-059]
Pressure Sensitive Plastic Tape from Italy: Preliminary Results
of Antidumping Duty Changed Circumstances Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: February 26, 2010.
SUMMARY: The Department of Commerce (the Department) is conducting a
changed circumstances review of the antidumping duty finding on
pressure sensitive plastic tape from Italy 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). We preliminarily determine that Evotape S.p.A was the
successor-in-interest to Tyco Adhesives Italia S.p.A. (Tyco), and that
Evotape Packaging S.r.l. (Evotape Packaging) and Evotape Masking S.r.l.
(Evotape Masking) are both successors-in-interest to Evotape S.p.A for
purposes of determining antidumping liability. Interested parties are
invited to comment on these preliminary results.
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, Evotape Packaging requested that the Department
conduct an expedited changed circumstances review to determine that it
is the successor-in-interest to Tyco for purposes of determining
antidumping liability.\1\ Evotape Packaging provided additional
information at the Department's request on August 28, 2009. On
September 10, 2009, the Department initiated a changed circumstances
review but did not expedite the review, as requested by Evotape
Packaging, because questions remained as to the factual claims forming
the basis of the change circumstances review request. See Pressure
Sensitive Plastic Tape from Italy: Notice of Initiation of Antidumping
Duty Changed Circumstances Review, 74 FR 47555 (September 16, 2009). On
October 26, 2009, the Department placed on the record a memorandum
regarding corrections to the scope language contained in the initiation
notice. (See October 26, 2009, Memorandum to The File regarding
``Corrections to Scope Language''). On November 3, 2009, the Department
requested additional information from Evotape Packaging, and on
November 24, 2009, Evotape Packaging submitted its response to the
Department's information request.
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\1\ The cash deposit rate currently applicable to Tyco is zero
percent. The all-others rate is 10 percent.
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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 mils in thickness, currently classifiable
under subheadings 3919.10.20 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.
Successor-in-Interest Determination
In making a successor-in-interest determination, 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 Review: Polychloroprene Rubber from Japan, 69 FR 67890
(November 22, 2004) (Polychloroprene Rubber from Japan) citing; Brass
Sheet and Strip from Canada; Final Results of Antidumping Duty
Administrative Review, 57 FR 20460 (May 13, 1992) (Canadian Brass);
and, Certain Circular Welded Carbon Steel Pipes and Tubes from Taiwan:
Initiation of Antidumping Duty Changed Circumstances Review, 70 FR
17063 (April 4, 2005). 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; Certain Frozen
Warmwater Shrimp From Thailand: Preliminary Results of Antidumping Duty
Changed Circumstances Review and Notice of Intent to Revoke in Part 74
FR 39042 (August 5, 2009); (unchanged in final results Certain Frozen
Warmwater Shrimp From Thailand: Final Results of Antidumping Duty
Changed Circumstances Review and Notice of Revocation in Part 74 FR
52452 (October 13, 2009)). 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.
Preliminary Results
In its request for a changed circumstances review, Evotape
Packaging explained 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. Subsequently, in December 2007, Evotape S.p.A went through a
restructuring that 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. In response to the
Department's questions concerning the corporate restructuring, Evotape
Packaging stated that Evotape Masking produces two in-scope products,
but does not ship or sell these products to the United States, and has
no future plans to do so (see August 28, 2009, and November 24, 2009,
responses).\2\
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\2\ Notwithstanding this fact and Evotape Packaging's original
changed circumstances review request to determine that only it is
the successor-in-interest to Tyco, Evotape Packaging acknowledged in
its November 24, 2009, response that it may be appropriate to
consider both Evotape Packaging and Evotape Masking as successors-
in-interest to Tyco because they are both wholly-owned subsidiaries
of Evotape S.p.A.
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Based on the facts on the record surrounding the acquisition and
[[Page 8926]]
subsequent corporate restructuring described above, and in accordance
with 19 CFR 351.221(c)(3)(i), we have made two preliminary successor-
in-interest determinations.
1. Evotape S.p.A Was the Successor-In-Interest to Tyco
Our first preliminary successor-in-interest determination is that
Evotape S.p.A was the successor-in-interest to Tyco. Evotape Packaging
submitted documentation to demonstrate that Evotape S.p.A acquired Tyco
in May 2005 (see Evotape Packaging's July 27, 2009, submission at
Exhibit 1). Evotape Packaging also provided information pertaining to
changes in management, production, suppliers, and customers that
occurred after Evotape S.p.A. acquired Tyco. The information indicated
that, except for three changes in management and some minor changes in
customers, the company's business operations had not been substantially
affected by the change in ownership (see November 24, 2009, response).
Thus, we preliminary find that in May 2005, Evotape S.p.A. became the
successor-in-interest to Tyco, because the changes in management and
customers that took place after Tyco's acquisition by Evotape S.p.A.
did not alter the production or business operations of the company.
2. Evotape Packaging and Evotape Masking are Successors-In-Interest to
Evotape S.p.A
For our second preliminary successor-in-interest determination, we
find that both Evotape Packaging and Evotape Masking are successors-in-
interest to Evotape S.p.A. Evotape Packaging submitted copies of the
documents that established Evotape Packaging and Evotape Masking as
separate wholly-owned subsidiaries of Evotape S.p.A in December 2007
(see November 24, 2009, response at Exhibit 1). Evotape Packaging also
provided information indicating that, while some minor changes in
business operations occurred after the companies' transition from
production units to formal companies, they continued to operate
essentially as they did as production units under Evotape S.p.A.
Specifically, the restructuring resulted in the reallocation of duties
among managers, and a slight reduction in the number of employees at
both companies. The companies also experienced slight changes to their
supplier and customer lists, but maintained their top supplier and
customer relationships. Evotape Packaging added two products to its
product mix, but the two companies continued to use the same separate
production facilities that they used as production units under Evotape
S.p.A. (see November 24, 2009, response). Moreover, the ownership of
the two entities remains essentially the same as both companies are
wholly-owned subsidiaries of Evotape S.p.A. Because both companies
continue to operate essentially as they did as production units of
Evotape S.p.A., after the December 2007, restructuring, irrespective of
the minor changes described above, we preliminary find that in December
2007, both Evotape Packaging and Evotape Masking became the successors-
in-interest to Evotape S.p.A. for purposes of determining antidumping
liability.
In conclusion, as a result of both of these determinations, we
preliminary find that Evotape Packaging and Evotape Masking should
receive Tyco's antidumping duty cash deposit rate with respect to the
subject merchandise (i.e., 0.00 percent). If the above preliminary
results are affirmed in the Department's final results, the cash
deposit rate resulting from this changed circumstances review will
apply to all entries of the subject merchandise from Evotape Packaging
and Evotape Masking 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).
Public Comment
Interested parties are invited to comment on these preliminary
results. Written comments may be submitted no later than 14 days after
the date of publication of these preliminary results. Rebuttals to
written comments, limited to issues raised in such comments, may be
filed no later than 21 days after the date of publication of this
notice. All written comments shall be submitted in accordance with 19
CFR 351.303. Any interested party may request a hearing within 14 days
of publication of this notice. Any hearing, if requested, will be held
no later than 30 days after the date of publication of this notice, or
the first workday thereafter. Persons interested in attending the
hearing, if one is requested, should contact the Department for the
date and time of hearing. 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 and Evotape Masking 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 for Evotape Packaging and Evotape Masking will be
altered, if warranted, pursuant only to the final results of this
review.
We are issuing and publishing these preliminary results and notice
in accordance with sections 751(b)(1) and 777(i)(1) and (2) of the Act
and 19 CFR 351.216 and 351.221(c)(3).
Dated: February 22, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-4072 Filed 2-25-10; 8:45 am]
BILLING CODE 3510-DS-S