65 FR 16880, March 30, 2000
[A-580-839]
Notice of Final Determination of Sales at Less Than Fair Value:
Certain Polyester Staple Fiber From the Republic of Korea
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On November 8, 1999, the Department of Commerce published its
preliminary determination of sales at less than fair value of certain
polyester staple fiber from the Republic of Korea. The investigation
covers three manufacturers/exporters. The period of investigation is
April 1, 1998, through March 31, 1999.
Based on our analysis of the comments received, we have made
changes in the margin calculations. Therefore, the final determination
differs from the preliminary determination. The final weighted-average
dumping margins for the investigated companies are listed below in the
section entitled ``Continuation of Suspension of Liquidation.''
EFFECTIVE DATE: March 30, 2000.
FOR FURTHER INFORMATION CONTACT: Craig Matney, Suresh Maniam, or
Blanche Ziv, Import Administration, International Trade Administration,
U.S. Department of Commerce, Washington, DC 20230; telephone: (202)
482-1778, 482-0176,or 482-4207, respectively.
SUPPLEMENTARY INFORMATION:
The Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions effective January 1, 1995, the effective
date of the amendments made to the Tariff Act of 1930 (``the Act'') by
the Uruguay Round Agreements Act (``URAA''). In addition, unless
otherwise indicated,all citations to the Department of Commerce's
(``the Department's'') regulations refer to the regulations codified at
19 CFR Part 351 (April 1998).
Case History
Since the preliminary determination of this investigation (see 64
FR 60776 (November 8, 1999) (``Preliminary Determination'')), the
following events have occurred:
On November 2 and 5, 1999, we received responses, including a
revised U.S. sales listing, to our October 15, 1999, supplemental
questionnaire from Samyang Corporation (``Samyang''). We verified
Samyang's questionnaire responses in November 1999.
Geum Poong Corporation (``Geum Poong'') submitted a section B
response covering sales to third countries on January 5, 2000. On
January 11, 2000, we rejected Geum Poong's section B response on the
grounds that it contained untimely filed new factual information. Also
on January 11, 2000, the Department solicited additional information
from respondent Geum Poong and petitioners E.I. DuPont de Nemours,
Inc.; Arteva Specialities S.a.r.l.; d/b/a KoSa; Wellman, Inc.; and
Intercontinental Polymers, Inc. (hereinafter collectively referred to
as ``the petitioners'') regarding the appropriate methodology for
calculating Geum Poong's constructed value profit ratio. The
petitioners objected to our soliciting additional information regarding
this subject on January 31, 2000. Geum Poong submitted information
concerning the constructed value profit ratio on February 8, 2000.
Verification of the responses submitted by Geum Poong and Sam Young
Synthetics Co. (``Sam Young'') took place in January 2000 (see the
``Verification'' section below). (We refer hereinafter to Samyang, Sam
Young, and Geum Poong collectively as ``the respondents''.)
On February 18, 2000, we received comments from petitioners
objecting to the request of Gates Formed-Fiber Products, Inc.,
(``Gates'') a U.S. importer, to treat black automotive substrate
(``BAS'') as a separate class or kind of merchandise. The petitioners,
the respondents and Gates filed case briefs on February 22, 2000. On
February 28, 2000, petitioners and respondents filed rebuttal briefs.
At the request of interested parties, the Department held a public
hearing on March 2, 2000.
Scope of Investigation
For the purposes of this investigation, the product covered is
certain polyester staple fiber (``PSF''). Certain polyester staple
fiber is defined as synthetic staple fibers, not carded, combed or
otherwise processed for spinning, of polyesters measuring 3.3 decitex
(3 denier, inclusive) or more in diameter. This merchandise is cut to
lengths varying from one inch (25 mm) to five inches (127 mm). The
merchandise subject to this investigation may be coated, usually with a
silicon or other finish, or not coated. PSF is generally used as
stuffing in sleeping bags, mattresses, ski jackets, comforters,
cushions, pillows, and furniture. Merchandise of less than 3.3 decitex
(less than 3 denier) classified under the Harmonized Tariff Schedule of
the United States (``HTSUS'') at subheading 5503.20.00.20 is
specifically excluded from this investigation. Also specifically
excluded from this investigation are polyester staple fibers of 10 to
18 denier that are cut to lengths of 6 to 8 inches (fibers used in the
manufacture of carpeting).
The merchandise subject to this investigation is classified in the
HTSUS at subheadings 5503.20.00.40 and 5503.20.00.60. Although the
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the merchandise under investigation is
dispositive.
For a discussion of scope comments and determinations, see the
March 22, 2000, memorandum from Susan H. Kuhbach, Acting Deputy
Assistant Secretary, Import Administration, to Richard W. Moreland,
Acting Assistant Secretary for Import Administration, (``Decision
Memorandum''), Comments
[[Page 16881]]
4 and 5, which is on file in the Central Records Unit of the main
Department building (``B-099'') and on the Web at www.ita.doc.gov/
import__admin/records/frn.
Period of Investigation
The period of investigation (``POI'') is April 1, 1998 through
March 31, 1999.
Critical Circumstances
In the Preliminary Determination, we found that critical
circumstances within the meaning of section 773(e)(1) of the Act
existed for each of the respondents because (1) there was a history of
dumping and material injury, and (2) each of the respondents had more
than a 15 percent increase in imports during the three-month period
following the filing of the petition (as compared to the three-month
period prior to the filing of the petition). We also preliminarily
determined that critical circumstances did not exist for ``all other''
exporters.
At verification, we examined each company's monthly shipment data
for November 1998 through August 1999. Based on a comparison of the
five-month periods before and after the filing of the petition, we
determine that imports have not been massive over a relatively short
period for any respondent or for companies subject to the all other
rate. Accordingly, we have reversed our preliminary finding of critical
circumstances with regard to Samyang, Sam Young, and Geum Poong, and
affirmed our negative preliminary finding for all other exporters. (See
Decision Memorandum, Comment 1.)
Product Comparisons
We compared the products sold by the respondents in the comparison
market during the POI to the products sold in the United States during
the POI using the methodology described in the Preliminary
Determination, with the following exception:
For the final determination we have determined that it is
appropriate to include grade as a matching criterion for Sam Young.
Date of Sale
For the final determination, we have concluded that invoice date is
the appropriate date of sale for Sam Young and Geum Poong. (See
Decision Memorandum, Comment 2.)
Fair Value Comparisons
To determine whether sales of PSF from Korea to the United States
were made at less than fair value, we compared the export price
(``EP'') to comparison market prices or CV, as described in the Export
Price and Normal Value sections below. Our calculations followed the
methodologies described in the Preliminary Determination, except as
noted below and in the company-specific calculation memoranda dated
March 22, 2000, which have been placed in the file in B-099.
1. Export Price
For the price to the United States, we used EP as defined in
section 772 of the Act. We calculated EP based on the same methodology
described in the Preliminary Determination.
2. Normal Value
We used the same methodology to calculate NV as that described in
the Preliminary Determination, with the following exceptions:
(a) Cost of Production Analysis
As noted in the Preliminary Determination, the Department has
investigated whether Samyang's and Sam Young's sales of PSF in their
respective comparison markets were made at prices below the cost of
production (``COP'') during the POI. In accordance with section
773(b)(3) of the Act, we calculated the weighted-average COP for
Samyang and Sam Young, by control number, based on the sum of each
company's cost of materials, fabrication, general expenses, and packing
costs. We have made the following changes to the COP calculations since
the preliminary determination:
We have found that Sam Young's fiscal year 1998 COP provides a more
accurate measure of its production costs than its POI-based COP.
Therefore, we have calculated Sam Young's COP based on its fiscal year
data. (See Decision Memorandum, Comment 13.)
(b) Calculation of NV Based on Comparison Market Prices
We performed price-to-price comparisons where there were sales of
comparable merchandise in the comparison market that did not fail the
cost test, using the same methodology described in the Preliminary
Determination.
(c) Calculation of NV Based on Constructed Value
Section 773(a)(4) of the Act provides that where NV cannot be based
on comparison market sales, NV may be based on the constructed value
(``CV''). Accordingly, for Samyang and Sam Young, where we could not
determine the NV based on comparison market sales, either because (1)
there were no sales of a comparable product or (2) all sales of
comparison products failed the COP test, we based NV on the CV. In
addition, for Geum Poong, which did not have a viable comparison
market, we based NV on CV.
We calculated CV as in the Preliminary Determination, with the
following exceptions:
For Geum Poong, we have changed our methodology for calculating CV
profit. (See Decision Memorandum, Comment 15.)
Level of Trade
We have made the same level of trade determinations described in
the Preliminary Determination.
Currency Conversions
We made currency conversions in accordance with section 773A of the
Act in the same manner as in the Preliminary Determination.
Verification
As provided in section 782(i)(1) of the Act, we verified the
information submitted by the respondents for use in our final
determination. We used standard verification procedures, including
examination of relevant accounting and production records, as well as
original source documents provided by the respondents.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the March 22, 2000, Decision
Memorandum, which is hereby adopted. A list of the issues which parties
have raised and to which we have responded, all of which are in the
Decision Memorandum, is attached to this notice as an appendix. 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 B-099. In addition, a complete version
of the Decision Memorandum can be accessed directly on the Web at:
http://www.ita.doc.gov/import--admin/records/frn/. The paper copy and
electronic version of the Decision Memorandum are identical in content.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(A) of the Act, we are
directing the U.S. Customs Service (``Customs'') to continue to suspend
liquidation of all imports of the subject merchandise from Korea,
except for subject merchandise produced and exported by Samyang (which
has a de minimis weighted-average margin), that are entered, or
withdrawn from warehouse, for
[[Page 16882]]
consumption on or after November 8, 1999, the date of publication of
the Preliminary Determination in the Federal Register. We will instruct
Customs to refund all bonds and cash deposits posted on subject
merchandise exported by Samyang. In addition, consistent with our
reversal of our preliminary determination of critical circumstances, we
will instruct Customs to refund all bonds and cash deposits posted on
subject merchandise exported by Sam Young and Geum Poong that was
entered, or withdrawn from warehouse, for consumption prior to November
8, 1999.
Customs shall continue to require a cash deposit or the posting of
a bond equal to the weighted-average amount by which the NV exceeds the
EP as indicated in the chart below. These suspension of liquidation
instructions will remain in effect until further notice.
The weighted-average dumping margins are as follows:
------------------------------------------------------------------------
Weighted-
average
Exporter/manufacturer margin Critical circumstances
percentage
------------------------------------------------------------------------
Samyang Corporation............... 1 0.14 No.
Sam Young Synthetics Co........... 7.96 No.
Geum Poong Corporation............ 14.10 No.
All Others........................ 11.38 No.
------------------------------------------------------------------------
1 (de minimis).
The rate for all other producers and exporters applies to all
entries of the subject merchandise except for entries from exporters
that are identified individually above. In accordance with section
735(c)(5)(A) of the Act, we have excluded the de minimis margin for
Samyang from the calculation of the ``all others'' rate.
ITC Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (``ITC'') of our determination. As our
final determination is affirmative, the ITC will, within 45 days,
determine whether these imports are materially injuring, or threaten
material injury to, the U.S. industry. If the ITC determines that
material injury, or threat of material injury does not exist, the
proceeding will be terminated and all securities posted will be
refunded or canceled. If the ITC determines that such injury does
exist, the Department will issue an antidumping duty order.
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act.
Dated: March 22, 2000.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
Appendix
List of Comments and Issues in the Decision Memorandum
I. General Issues
Comment 1: Critical circumstances
Comment 2: Date of sale methodology
Comment 3: Quarterly averaging periods
Comment 4: Regenerated PSF
Comment 5: Black automotive substrate
II. Issues Specific to Samyang Corporation
Comment 6: Major input value
Comment 7: Home market price changes
Comment 8: G&A and interest expense ratios
Comment 9: ``P'' channel sales
Comment 10: Coding of home market products
Comment 11: Duty drawback
III. Issues Specific to Sam Young Synthetics Co., Ltd.
Comment 12: Duty drawback
Comment 13: Cost of manufacture
Comment 14: Adjustment to production quantities
IV. Issues Specific to Geum Poong Corporation
Comment 15: Constructed value profit ratio
Comment 16: Duty drawback
Comment 17: G&A calculation
[FR Doc. 00-7926 Filed 3-29-00; 8:45 am]
BILLING CODE 3510-DS-P