[Federal Register: June 18, 2004 (Volume 69, Number 117)]
[Notices]
[Page 34125-34128]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jn04-58]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-886]
Notice of Final Determination of Sales at Less Than Fair Value:
Polyethylene Retail Carrier Bags From the People's Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On January 26, 2004, the Department of Commerce published its
preliminary determination of sales at less than fair value in the
investigation on polyethylene retail carrier bags from the People's
Republic of China. On February 20, 2004, the Department of Commerce
published its amended preliminary determination of sales at less than
fair value. The period of investigation is October 1, 2002, through
March 31, 2003. The investigation covers nine manufacturers/exporters
which are mandatory respondents and nineteen section A respondents.
We invited interested parties to comment on our preliminary
determination of sales at less than fair value. Based on our analysis
of the comments received, we have made changes to our calculations for
all parties. The final dumping margins for this investigation are
listed in the ``Final Determination Margins'' section below.
EFFECTIVE DATE: June 18, 2004.
FOR FURTHER INFORMATION CONTACT: Hermes Pinilla (Nantong), Edythe
Artman (Senetex), Kristin Case (United
[[Page 34126]]
Wah), Jeffrey Frank (Ming Pak), Janis Kalnins (Zhongshan), Jennifer
Moats (Hang Lung), Thomas Schauer (Rally Plastics), or Dmitry
Vladimirov (Glopack), Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4733.
Final Determination
We determine that polyethylene retail carrier bags (PRCBs) from the
People's Republic of China (PRC) are being, or are likely to be, sold
in the United States at less than fair value (LTFV) as provided in
section 735 of the Tariff Act of 1930, as amended (the Act). The
estimated margins of sales at LTFV are shown in the ``Final
Determination Margins'' section of this notice.
Case History
The Department of Commerce (the Department) published its
preliminary determination of sales at LTFV on January 26, 2004. See
Notice of Preliminary Determination of Sales at Less Than Fair Value
and Postponement of Final Determination: Polyethylene Retail Carrier
Bags from the People's Republic of China, 69 FR 3544 (Preliminary
Determination). On February 20, 2004, the Department published an
amended preliminary determination. See Notice of Amended Preliminary
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination: Polyethylene Retail Carrier Bags from the People's
Republic of China, 69 FR 7908 (Amended Preliminary Determination). We
invited parties to comment on the Preliminary Determination. We
received comments from the Polyethylene Retail Carrier Bag Committee
and its individual members (collectively, petitioners) and from the
following respondents: Hang Lung Plastic Manufactory Limited (Hang
Lung), Dongguan Huang Jiang United Wah Plastic Bag Factory (United
Wah), Nantong Huasheng Plastic Products Company, Limited (Nantong),
Rally Plastics Company, Limited (Rally Plastics), Shanghai Glopack
Packing Company Limited and Sea Lake Polyethylene Enterprise Limited
(collectively, Glopack), Xiamen Ming Pak Plastics Company, Limited
(Ming Pak), Nan Sing Plastics, Limited (Nan Sing), Dongguan Zhongqiao
Combine Plastic Bag Factory (Dongguan Zhongqiao), Zhongshan Dongfeng
Hung Wai Plastic Bag Manufactory (Zhongshan), Guangdong Esquel
Packaging Company, Limited (Guangdong Esquel), and Duralok, Inc.
(Duralok). On March 22, 2004, parties submitted surrogate-value
information. On April 27, 2004, parties submitted case briefs. On May
3, 2004, parties submitted rebuttal briefs.
Scope of Investigation
The merchandise subject to this investigation is PRCBs which may be
referred to as t-shirt sacks, merchandise bags, grocery bags, or
checkout bags. The subject merchandise is defined as non-sealable sacks
and bags with handles (including drawstrings), without zippers or
integral extruded closures, with or without gussets, with or without
printing, of polyethylene film having a thickness no greater than .035
inch (0.889 mm) and no less than .00035 inch (0.00889 mm), and with no
length or width shorter than 6 inches (15.24 cm) or longer than 40
inches (101.6 cm). The depth of the bag may be shorter than 6 inches
but not longer than 40 inches (101.6 cm).
PRCBs are typically provided without any consumer packaging and
free of charge by retail establishments (e.g., grocery, drug,
convenience, department, specialty retail, discount stores, and
restaurants) to their customers to package and carry their purchased
products. The scope of the investigation excludes (1) polyethylene bags
that are not printed with logos or store names and that are closeable
with drawstrings made of polyethylene film and (2) polyethylene bags
that are packed in consumer packaging with printing that refers to
specific end-uses other than packaging and carrying merchandise from
retail establishments (e.g., garbage bags, lawn bags, trash-can
liners).
Imports of the subject merchandise are classified under statistical
category 3923.21.0090 of the Harmonized Tariff Schedule of the United
States (HTSUS). This subheading also covers products that are outside
the scope of this investigation. Furthermore, although the HTSUS
subheading is provided for convenience and customs purposes, our
written description of the scope of this investigation is dispositive.
Scope Comments
The Department received scope comments and addressed them in the
``Issues and Decision Memorandum for the Investigation of Polyethylene
Retail Carrier Bags from the People's Republic of China'' from Jeff May
to James J. Jochum (June 9, 2004) (Decision Memo).
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues and Decision Memorandum,
dated June 9, 2004, which is hereby adopted by this notice (the
Decision Memorandum). A list of the issues which parties raised and to
which we respond in the Decision Memorandum is attached to this notice
as an Appendix. The Decision Memorandum is a public document and is on
file in the Central Records Unit (CRU), Main Commerce Building, Room B-
099, and is accessible on the Web at http://www.ia.ita.doc.gov. The paper copy
and electronic version of the memorandum are identical in content.
Separate Rates
In the Preliminary Determination, the Department found that several
companies which provided responses to section A of the antidumping
questionnaire were eligible for a rate separate from the PRC-wide rate.
These companies are as follows: Beijing Lianbin Plastics and Printing
Company Limited (Beijing Lianbin), Dongguan Zhongqiao, Good-in Holdings
Limited (Good-in Holdings), Guangdong Esquel, Nan Sing, Ningbo Fanrong
Plastics Products Company Limited (Ningbo Fanrong), Ningbo Huansen
Plasthetics Company, Limited (Ningbo Huansen), Rain Continent Shanghai
Company Limited (Rain Continent), Shanghai Dazhi Enterprise Development
Company, Limited (Shanghai Dazhi), Shanghai Fangsheng Coloured
Packaging Company Limited (Shanghai Fangsheng), Shanghai Jingtai
Packaging Material Company, Limited (Shanghai Jingtai), Shanghai Light
Industrial Products Import and Export Corporation (Shanghai Light
Industrial), Shanghai Minmetals Development Limited (Shanghai
Minmetals), Shanghai New Ai Lian Import and Export Company Limited
(Shanghai New Ai Lian), Shanghai Overseas International Trading
Company, Limited (Shanghai Overseas), Shanghai Yafu Plastics Industries
Company Limited (Shanghai Yafu), Weihai Weiquan Plastic and Rubber
Products Company, Limited (Weihai Weiquan), Xiamen Xingyatai Industry
Company, Limited (Xiamen Xingyatai), and Xinhui Henglong. Consequently,
we calculated a weighted-average margin for these companies based on
the rates we calculated for the selected respondents (see Memorandum
from Thomas Schauer to the File regarding calculation of the adverse-
facts-available and non-adverse-facts-available margins dated January
16, 2004). The margin we calculated in the Preliminary Determination
for these companies was 12.71 percent was amended in the Amended
Preliminary Determination to 18.43 percent. Because the rates of the
selected mandatory respondents have
[[Page 34127]]
changed since the Preliminary Determination and the Amended Preliminary
Determination, we have recalculated the rate for section A respondents
to be 23.06 percent. For a more detailed discussion of the section A
rate, see Memorandum to the File entitled ``Analysis for the Final
Determination of Polyethylene Retail Carrier Bags from the People's
Republic of China (PRC): Calculation of PRC-Wide Rate Based on Adverse
Facts Available and the Non-Adverse Margin for Respondents Not Selected
for Analysis,'' dated June 9, 2004 (PRC-Wide Rate Memo).
With the exception of Nantong, the companies receiving this
``section A'' rate remain the same as those listed in the Preliminary
Determination and are identified by name in the ``Final Determination
Margins'' section of this notice. Nantong was given the ``section A''
rate as facts otherwise available for the Preliminary Determination.
Because we are now using the data that Nantong reported, we are no
longer using the ``section A'' rate for Nantong. For a more detailed
discussion of this matter, see Comment 13.B of Issues and Decision
Memorandum, dated June 9, 2004.
The PRC-Wide Rate
Because the Department begins with the presumption that all
companies within a non-market-economy country are subject to government
control and because only the companies listed in the ``Final
Determination Margins'' section below have overcome that presumption,
we are applying a single antidumping rate--the PRC-wide rate--to all
other exporters in the PRC. The PRC-wide rate we calculated in the
Preliminary Determination was 80.52 percent. Because of certain changes
to surrogate values, we have recalculated the PRC-wide rate to be 77.33
percent. For a more detailed discussion of these changes and the PRC-
wide rate calculations, see the PRC-Wide Rate Memo.
Tai Chiuan failed to respond at all to the antidumping
questionnaire. Senetex responded to the initial antidumping
questionnaire but failed to respond to the supplemental questionnaire
and submitted a letter stating that it no longer wished to participate
in the investigation. By not responding fully to the questionnaire, two
mandatory respondents, Senetex and Tai Chiuan, failed to demonstrate
entitlement to a separate rate and, therefore, we preliminarily
determined that the PRC-wide rate should apply to them. We have not
received any information since the issuance of the Preliminary
Determination that provides a basis for reconsideration of these
determinations. Therefore, for the final determination we have not
established a rate separate from the PRC-wide rate for these companies.
Final Determination Margins
We determine that the following percentage weighted-average margins
exist:
------------------------------------------------------------------------
Margin
Exporter and Producer (percent)
------------------------------------------------------------------------
Hang Lung.................................................. 0.20
United Wah................................................. 23.19
Nantong.................................................... 2.29
Rally Plastics............................................. 23.81
Glopack.................................................... 19.73
Ming Pak................................................... 35.23
Zhongshan.................................................. 41.21
Beijing Lianbin............................................ 23.06
Dongguan Zhongqiao......................................... 23.06
Good-in Holdings........................................... 23.06
Guangdong Esquel........................................... 23.06
Nan Sing................................................... 23.06
Ningbo Fanrong............................................. 23.06
Ningbo Huansen............................................. 23.06
Rain Continent............................................. 23.06
Shanghai Dazhi............................................. 23.06
Shanghai Fangsheng......................................... 23.06
Shanghai Jingtai........................................... 23.06
Shanghai Light Industrial.................................. 23.06
Shanghai Minmetals......................................... 23.06
Shanghai New Ai Lian....................................... 23.06
Shanghai Overseas.......................................... 23.06
Shanghai Yafu.............................................. 23.06
Weihai Weiquan............................................. 23.06
Xiamen Xingyatai........................................... 23.06
Xinhui Henglong............................................ 23.06
PRC-wide Rate.............................................. 77.33
------------------------------------------------------------------------
Verification
As provided in section 782(i) 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 respondents.
Continuation of Suspension of Liquidation
Pursuant to 735(c)(1)(B) of the Act, we will instruct U.S. Customs
and Border Protection (CBP) to continue to suspend liquidation of all
entries of subject merchandise from the PRC (except for entries of Hang
Lung because this company has a de minimis margin) entered, or
withdrawn from warehouse, for consumption on or after January 26, 2004,
the date of publication of the Preliminary Determination. In accordance
with section 351.204(e)(3) of our regulations, this exclusion only
applies to merchandise produced and exported by Hang Lung. CBP shall
continue to require a cash deposit or the posting of a bond equal to
the estimated amount by which the normal value exceeds the U.S. price
as shown above. These instructions suspending liquidation will remain
in effect until further notice.
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
International Trade Commission Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (ITC) of our final determination of
sales at LTFV. As our final determination is affirmative, in accordance
with section 735(b)(2) of the Act, the ITC will, within 45 days,
determine whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
imports, or sales (or the likelihood of sales) for importation, of the
subject merchandise. 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 directing the CBP to assess antidumping
duties on all imports of the subject merchandise entered, or withdrawn
form warehouse, for consumption on or after the effective date of the
suspension of liquidation (i.e., January 26, 2004).
Notification Regarding APO
This notice also serves as a reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305. Timely notification of return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and the
terms of an APO is a sanctionable violation.
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act.
Dated: June 9, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
Appendix
Issues in the Decision Memorandum
1. Scope Comments
[[Page 34128]]
2. Surrogate Financial Ratios
3. Market-Economy Inputs
4. Adjusting Indian Import Statistics
A. Excluding Countries That Receive Export Subsidies
B. Excluding Aberrational Data When Using the Indian Import
Statistics
C. Excluding U.S. Data from Indian Import Statistics
5. Surrogate Value for Ink
6. Surrogate Value for Varnish
7. Surrogate Value for Other Materials
8. Surrogate Value for Labor
9. Surrogate Value for Electricity
10. Change in Name of Section A Respondent
11. Hang Lung Issues
A. Affiliated U.S. Customer
B. Adverse Facts Available for Electricity
C. Adjustment of Market-Economy Purchases to Account for Unpaid
Foreign Customs Duties
D. Currency Conversion of U.S. Sales in Hong Kong Dollars
E. Currency Conversion of Domestic Inland Freight
12. United Wah Issues
A. Certain ``Market-Economy'' Purchases by United Wah
B. Ministerial-Error Allegation
13. Nantong Issues
A. Market-Economy Purchases of Raw Materials from Purchaser of
PRCBs
B. Use of Adverse Facts Available for Inadequate Reporting of
FOP Information
14. Rally Plastics Issues
A. Use of Facts Available for Direct Labor, Indirect Labor, and
Electricity
B. Use of Facts Available for Marine Insurance
C. Use of Facts Available for International Freight
15. Glopack Issue
Classification of Sales as EP or CEP
16. Zhongshan Issues
A. Use of Adverse Facts Available for Sales Through Reliable
Plastic Bags Manufacturing Ltd.
B. Ministerial-Error Allegations
C. Use of HTS Subheading 5607.90.02 to Value Cotton Rope/String
D. Valuing Cardboard Inserts Using HTS Subheadings
E. Surrogate Value for Rubber Rope
F. Surrogate Value for Clip (Loop) Handles
G. Whether the Department Should Adjust for Bank Fees
[FR Doc. 04-13815 Filed 6-17-04; 8:45 am]
BILLING CODE 3510-DS-P