[Federal Register Volume 76, Number 35 (Tuesday, February 22, 2011)]
[Notices]
[Pages 9753-9755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-3909]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-924]
Polyethylene Terephthalate Film, Sheet, and Strip From the
People's Republic of China: Final Results of the First Antidumping Duty
Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On August 16, 2010, the Department of Commerce
(``Department'') published the Preliminary Results of the first
administrative review of the antidumping duty order on polyethylene
terephthalate film, sheet, and strip (``PET film'') from the People's
Republic of China (``PRC'').\1\ We gave interested parties an
opportunity to comment on the Preliminary Results. Based upon our
analysis of the comments and information received, we made changes to
the margin calculation for the final results. We find that the
participating respondents in this review, the two mandatory respondents
Fuwei Films (Shandong) Co., Ltd. (``Fuwei Films''), Shaoxing Xiangyu
Green Packing Co., Ltd. (``Green Packing''), and Tianjin Wanhua Co.,
Ltd. (``Wanhua'') (collectively, ``Respondents''), sold subject
merchandise at less than normal value during the period of review
(``POR''), November 6, 2008, through October 31, 2009.
---------------------------------------------------------------------------
\1\ See Polyethylene Terephthalate Film, Sheet, and Strip From
the People's Republic of China: Preliminary Results and Preliminary
Rescission, in Part, of Antidumping Duty Administrative Review, 75
FR 49893 (August 16, 2010) (``Preliminary Results'').
---------------------------------------------------------------------------
DATES: Effective Date: February 22, 2011.
FOR FURTHER INFORMATION CONTACT: Thomas Martin, AD/CVD Operations,
Office 4, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-3936.
SUPPLEMENTARY INFORMATION:
Background
As noted above, on August 16, 2010, the Department published the
Preliminary Results of this administrative review. Between September
28, 2010 and October 5, 2010, we received case and rebuttal briefs from
Petitioners \2\ and Respondents. On September 28, 2010, we also
received written arguments from Bemis Company, Inc., an industrial user
of PET film. On October 18, 2010, the Department placed a revised wage
rate calculation on the record for comment. Between October 26, 2010
and November 1, 2010, we received comments and rebuttal comments from
Petitioners and Respondents regarding the revised wage rate
calculation. On November 15, 2010, the Department published a notice
extending the time period for issuing the final results by 60 days to
February 14, 2011.\3\ On November 22, 2010, the Department held a
public hearing of the arguments presented in the interested parties'
submissions.
---------------------------------------------------------------------------
\2\ DuPont Teijin Films, Mitsubishi Polyester Film, Inc., SKC,
Inc., and Toray Plastics (America), Inc. (collectively,
``Petitioners'').
\3\ See Polyethylene Terephthalate Film, Sheet, and Strip From
the People's Republic of China: Extension of Time Limit for the
Final Results of the Antidumping Duty Administrative Review, 75 FR
69629 (November 15, 2010).
---------------------------------------------------------------------------
Analysis of Comments Received
All issues raised in the case briefs by parties are addressed in
the ``Issues and Decision Memorandum for the Final Results in the
Antidumping Duty Administrative Review of Polyethylene Terephthalate
Film, Sheet, and Strip from the People's Republic of China,'' which is
dated concurrently with this notice (``I&D Memo''). A list of the
issues which parties raised, and to which we respond in the I&D Memo,
is attached to this notice as an Appendix. The I&D Memo is a public
document and is on file in the Central Records Unit (``CRU''), Main
Commerce Building, Room 7046, and is accessible on the Department's Web
site at http://www.trade.gov/ia. The paper copy and electronic version
of the memorandum are identical in content.
Final Partial Rescission of Administrative Review
In the Preliminary Results, the Department preliminarily rescinded
the administrative review with respect to Sichuan Dongfang Insulating
Material Co., Ltd. (``Dongfang''). Dongfang reported that it had no
shipments of subject merchandise to the United States during the
POR.\4\ As we stated in the Preliminary Results, our examination of
shipment data from U.S. Customs and Border Protection (``CBP'') for
Dongfang confirmed that there were no entries of subject merchandise
from Dongfang during the POR. \5\ We also received no comments or
information to change our preliminary rescission. Therefore, we are
rescinding this administrative review with respect to Dongfang.
---------------------------------------------------------------------------
\4\ See Preliminary Results, 75 FR at 49894.
\5\ Id.
---------------------------------------------------------------------------
Changes Since the Preliminary Results
Based on a review of the record, as well as comments received from
parties regarding our Preliminary Results, we have made revisions to
Respondents' margin calculations for the final results.\6\ Pursuant to
a recent decision
[[Page 9754]]
by the Court of Appeal for the Federal Circuit \7\, subsequent to the
Preliminary Results, we calculated a revised hourly wage rate to use in
valuing Respondents' reported labor.\8\ Additionally, we have: (1)
Revised the calculated surrogate overhead, selling, general and
administrative expenses, and profit applicable to Respondents using
information from the financial statements of JBF Industries Limited, a
manufacturer in India of merchandise comparable to subject merchandise;
\9\ (2) revised the surrogate value for bright polyester chips and
master batch chips by using the simple-average of the two weighted
average surrogate values for merchandise of Indian Harmonized Tariff
Schedule subheadings 3907.60.10 and 3907.6020; \10\ (3) revised the
surrogate value for steam by using information more contemporaneous
with the POR; \11\ and (4) recalculated Fuwei Films' indirect selling
expenses pursuant to the Department's established policy and
practice.\12\
---------------------------------------------------------------------------
\6\ In the Preliminary Results, the Department stated that it
had ``valued electricity using rates for large industries at 33 Kilo
Volts, as published by the Central Electricity Authority of the
Government of India in `Electricity Tariff & Duty and Average Rates
of Electricity Supply in India,' dated March 2008.'' See Preliminary
Results, 75 FR at 49898. This statement in the Federal Register
notice was an error, as the Department had actually averaged all
tax-exclusive rates for electricity for small, medium, and large
industries as published in the above-mentioned report. See
Memorandum to the File through Robert Bolling, Program Manager, AD/
CVD Operations, Office 4, from Thomas Martin, International Trade
Compliance Analyst, ``Antidumping Duty Administrative Review of
Polyethylene Terephthalate Film, Sheet, and Strip from the People's
Republic of China: Selection of Factor Values,'' dated August 9,
2010, at 4. No parties commented on this error, but the Department
notes that there is no change with respect to the calculation of the
surrogate value for electricity between the Preliminary Results and
these final results of review.
\7\ See Dorbest Ltd. v. United States, 604 F.3d 1363 (Fed. Cir.
2010).
\8\ See Memorandum from Thomas Martin to The File, ``First
Administrative Review of the Antidumping Duty Order on Polyethylene
Terephthalate Film, Sheet, and Strip from the People's Republic of
China: Industry-Specific Wage Rate Selection,'' dated October 18,
2010.
\9\ See I&D Memo at Comment 2; see also Memorandum to the File
through Robert Bolling, Program Manager, AD/CVD Operations, Office
4, from Thomas Martin, International Trade Compliance Analyst,
``Polyethylene Terephthalate Film, Sheet, and Strip from the
People's Republic of China: Changes to Surrogate Values for the
Final Results of Review,'' dated February 14, 2011 (``Final
Surrogate Values Memorandum'') at 2.
\10\ See I&D Memo at Comment 3.
\11\ See I&D Memo at Comment 4; see also Final Surrogate Values
Memorandum at 3.
\12\ See I&D Memo at Comment 9.
---------------------------------------------------------------------------
Scope of the Order
The products covered by the order are all gauges of raw, pre-
treated, or primed PET film, whether extruded or co-extruded. Excluded
are metalized films and other finished films that have had at least one
of their surfaces modified by the application of a performance-
enhancing resinous or inorganic layer more than 0.00001 inches thick.
Also excluded is roller transport cleaning film which has at least one
of its surfaces modified by application of 0.5 micrometers of SBR
latex. Tracing and drafting film is also excluded. PET film is
classifiable under subheading 3920.62.00.90 of the Harmonized Tariff
Schedule of the United States (``HTSUS''). While HTSUS subheadings are
provided for convenience and customs purposes, our written description
of the scope of the order is dispositive.
Non-Market Economy Treatment
The Department considers the PRC to be a non-market economy
(``NME'') country.\13\ In accordance with section 771(18)(C)(i) of the
Tariff Act of 1930, as amended (``the Act''), any determination that a
foreign country is an NME country shall remain in effect until revoked
by the administering authority. No party has challenged the designation
of the PRC as an NME country in this review. Therefore, the Department
continues to treat the PRC as an NME country for purposes of these
final results.
---------------------------------------------------------------------------
\13\ See, e.g., Preliminary Determination of Sales at Less Than
Fair Value and Postponement of Final Determination: Coated Free
Sheet Paper from the People's Republic of China, 72 FR 30758, 30760
(June 4, 2007), unchanged in Final Determination of Sales at Less
Than Fair Value: Coated Free Sheet Paper from the People's Republic
of China, 72 FR 60632 (October 25, 2007).
---------------------------------------------------------------------------
Surrogate Country
In the Preliminary Results, the Department stated that it selected
India as the appropriate surrogate country to use in this
administrative review for the following reasons: (1) It is a
significant producer of comparable merchandise; (2) it is at a similar
level of economic development pursuant to section 773(c)(4) of the Act;
and (3) the Department has reliable data from India that it can use to
value the factors of production.\14\ While the Department received
comments on the surrogate country issue after the Preliminary Results,
the Department has not made changes to its findings with respect to the
selection of a surrogate country for the final results.\15\
---------------------------------------------------------------------------
\14\ See Preliminary Results, 75 FR at 49896.
\15\ See I&D Memo at Comment 1.
---------------------------------------------------------------------------
Separate Rates
In proceedings involving NME countries, the Department holds a
rebuttable presumption that all companies within the country are
subject to government control and, thus, should be assessed a single
antidumping duty rate. It is the Department's policy to assign all
exporters of subject merchandise in an NME country this single rate
unless an exporter can demonstrate that it is sufficiently independent
so as to be entitled to a separate rate.\16\
---------------------------------------------------------------------------
\16\ See Notice of Final Determination of Sales at Less Than
Fair Value: Sparklers from the People's Republic of China, 56 FR
20588 (May 6, 1991), as further developed in Notice of Final
Determination of Sales at Less Than Fair Value: Silicon Carbide from
the People's Republic of China, 59 FR 22585 (May 2, 1994).
---------------------------------------------------------------------------
In the Preliminary Results, the Department found that the two
mandatory respondents and Wanhua demonstrated eligibility for separate-
rate status.\17\ Since the publication of the Preliminary Results, no
party has commented on the eligibility of the two mandatory respondents
and Wanhua for separate-rate status. For the final results, the
Department continues to find that the evidence placed on the record of
this administrative review by the two mandatory respondents and Wanhua
demonstrates both de jure and de facto absence of government control
with respect to each company's respective exports of the subject
merchandise. Thus, the Department continues to find that the two
mandatory respondents and Wanhua are eligible for separate-rate status.
---------------------------------------------------------------------------
\17\ See Preliminary Results, 75 FR at 49895.
---------------------------------------------------------------------------
The separate rate is determined based on the estimated weighted-
average dumping margins established for exporters and producers
individually investigated, excluding zero and de minimis margins or
margins based entirely on adverse facts available (``AFA'').\18\ In
this administrative review both mandatory respondents, Fuwei Films and
Green Packing, have estimated weighted-average dumping margins which
are above de minimis and which are not based on total AFA. Therefore,
because there are only two relevant weighted-average dumping margins
for these final results and because using a weighted-average risks
disclosure of business proprietary information, the separate rate is a
simple-average of these two values, which is 36.93 percent.\19\
---------------------------------------------------------------------------
\18\ See section 735(c)(5)(A) of the Act.
\19\ See Steel Wire Garment Hangers from the People's Republic
of China: Final Determination of Sales at Less Than Fair Value, 73
FR 47587, 47591 (August 14, 2008).
---------------------------------------------------------------------------
PRC-Wide Entity
In the Preliminary Results, the Department determined that certain
PRC exporters failed to recertify their separate rates using the
separate rate certification provided at the Department's Web site at
http://ia.ita.doc.gov/nme/nme-sep-rate.html to demonstrate their
continued eligibility for separate-rate status. Also, Shanghai Xishu
Electric Material Co., Ltd. (``Xishu'') and Shanghai Uchem Co., Ltd.
(``Uchem'') did not make a claim that they did not ship or sell subject
merchandise to the United States during the POR.\20\ Thus, the
Department treated
[[Page 9755]]
these PRC exporters as part of the PRC-wide entity. The Department also
found that the PRC-wide entity did not respond to our requests for
information.\21\ No additional information was placed on the record
with respect to any of these companies after the Preliminary Results.
Since the PRC-wide entity did not provide the Department with requested
information, pursuant to section 776(a)(2)(A) of the Act, the
Department continues to find it appropriate to base the PRC-wide rate
on facts available.
---------------------------------------------------------------------------
\20\ See Preliminary Results, 75 FR at 49895.
\21\ Id.
---------------------------------------------------------------------------
Because the Department begins with the presumption that all
companies within an NME country are subject to government control, and
because only the mandatory respondents and Wanhua have overcome that
presumption, the Department is applying a single antidumping rate
(i.e., the PRC-wide entity rate) to all other exporters of subject
merchandise from the PRC. Such companies did not demonstrate
entitlement to a separate rate.\22\ The PRC-wide entity rate applies to
all entries of subject merchandise except for entries from the two
mandatory respondents and Wanhua.
---------------------------------------------------------------------------
\22\ See, e.g., Synthetic Indigo From the People's Republic of
China; Notice of Final Determination of Sales at Less Than Fair
Value, 65 FR 25706 (May 3, 2000).
---------------------------------------------------------------------------
Final Results of Review
The dumping margins for the POR are as follows:
------------------------------------------------------------------------
Antidumping
Exporter duty percent
margin
------------------------------------------------------------------------
Fuwei Films (Shandong) Co., Ltd......................... 30.91
Shaoxing Xiangyu Green Packing Co., Ltd................. 42.94
Tianjin Wanhua Co., Ltd................................. 36.93
PRC-wide Entity \23\.................................... 76.72
------------------------------------------------------------------------
\23\ Xishu and Uchem are part of the PRC-wide entity.
Assessment
Upon issuance of the final results, the Department will determine,
and CBP shall assess, antidumping duties on all appropriate entries.
The Department intends to issue assessment instructions to CBP 15 days
after the date of publication of the final results of review. Pursuant
to 19 CFR 351.212(b)(1), we will calculate importer-specific (or
customer) ad valorem duty assessment rates based on the ratio of the
total amount of the dumping margins calculated for the examined sales
to the total entered value of those same sales. In accordance with 19
CFR 351.106(c)(2), we will instruct CBP to liquidate, without regard to
antidumping duties, all entries of subject merchandise during the POR
for which the importer-specific assessment rate is zero or de minimis.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of these final results of this administrative review for
all shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date, as
provided for by section 751(a)(2)(C) of the Act: (1) For the exporters
listed above, the cash deposit rate will be the rate established in
these final results of review (except, if the rate is zero or de
minimis, i.e., less than 0.5 percent, a zero cash deposit rate will be
required for that company); (2) for previously investigated or reviewed
PRC and non-PRC exporters not listed above that have separate rates,
the cash deposit rate will continue to be the exporter-specific rate
published for the most recent period; (3) for all PRC exporters of
subject merchandise which have not been found to be entitled to a
separate rate, the cash deposit rate will be the PRC-wide rate of 76.72
percent; and (4) for all non-PRC exporters of subject merchandise which
have not received their own rate, the cash deposit rate will be the
rate applicable to the PRC exporters that supplied that non-PRC
exporter. These deposit requirements, when imposed, shall remain in
effect until further notice.
Reimbursement of Duties
This notice also serves as a final reminder to importers of their
responsibility under 19 CFR 351.402(f) to file a certificate regarding
the reimbursement of antidumping duties prior to liquidation of the
relevant entries during this POR. Failure to comply with this
requirement could result in the Department's presumption that
reimbursement of antidumping duties has occurred and the subsequent
assessment of doubled antidumping duties.
Administrative Protective Orders
This notice also serves as a reminder to parties subject to
administrative protective order (``APO'') of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305, which continues
to govern business proprietary information in this segment of the
proceeding. 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.
We are issuing and publishing this administrative review and notice
in accordance with sections 751(a)(1) and 777(i) of the Act.
Dated: February 14, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
Appendix I--Issues & Decision Memorandum
Issue 1: Selection of Surrogate Financial Statements.
Issue 2: Whether the Department should select Thailand as the
surrogate country rather than India.
Issue 3: Whether the Department should continue to use Indian
imports of Harmonized Tariff Schedule (``HTS'') classification
3907.60.20 to value Bright Polyester Chip and Master Batch Chip.
Issue 4: Whether the Department should revise the surrogate value
for steam.
Issue 5: Whether Fuwei Films correctly reported PET film additives
in its factors of production (``FOPs'').
Issue 6: Whether Fuwei Films reported all suppliers of FOPs, and all
raw materials that it purchased from suppliers and consumed during
the POR.
Issue 7: Whether the Department should revise its CONNUM methodology
based on Fuwei Films' FOPs allocation methodology.
Issue 8: Whether the Department should make further revisions to its
labor rate methodology revised after the Preliminary Results.
Issue 9: Whether the Department should revise Fuwei Films'
methodology for calculating indirect selling expenses.
Issue 10: Whether the Department should have selected Wanhua as a
mandatory respondent.
Issue 11: Whether the Department should revise its methodology for
calculating the separate rate for respondents not specifically
reviewed.
[FR Doc. 2011-3909 Filed 2-18-11; 8:45 am]
BILLING CODE 3510-DS-P