[Federal Register Volume 64, Number 52 (Thursday, March 18, 1999)]
[Notices]
[Pages 13399-13401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6536]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-101]
Final Results of Expedited Sunset Review: Greige Polyester Cotton
Printcloth From the People's Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final results of expedited sunset review: Greige
polyester cotton printcloth from the People's Republic of China.
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SUMMARY: On November 2, 1998, the Department of Commerce (``the
Department'') initiated a sunset review of the antidumping order on
greige polyester cotton printcloth from The People's Republic of China
(63 FR 58709) pursuant to section 751(c) of the Tariff Act of 1930, as
amended (``the Act''). On the basis of a notice of intent to
participate and substantive comments filed on behalf of the domestic
industry and inadequate response (in this case, no response) from
respondent interested parties, the Department determined to conduct an
expedited review. As a result of this review, the Department finds that
revocation of the antidumping order would be likely to lead to
continuation or recurrence of dumping at the levels indicated in the
Final Results of Review section of this notice.
FOR FURTHER INFORMATION CONTACT: Scott E. Smith or Melissa G. Skinner,
Office of Policy for Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, D.C. 20230; telephone: (202) 482-
6397 or (202) 482-1560, respectively.
EFFECTIVE DATE: March 18, 1999.
Statute and Regulations
This review was conducted pursuant to sections 751(c) and 752 of
the Act. The Department's procedures for the conduct of sunset reviews
are set forth in Procedures for Conducting Five-year (``Sunset'')
Reviews of Antidumping and Countervailing Duty Orders, 63 FR 13516
(March 20, 1998) (``Sunset Regulations''). Guidance on methodological
or analytical issues relevant to the Department's conduct of sunset
reviews is set forth in the Department's Policy Bulletin 98:3--Policies
Regarding the Conduct of Five-year (``Sunset'') Reviews of Antidumping
and Countervailing Duty Orders; Policy Bulletin, 63 FR 18871 (April 16,
1998) (``Sunset Policy Bulletin'').
Scope
The merchandise subject to this antidumping order is greige
polyester cotton printcloth, other than 80 x 80 type. Greige polyester
cotton printcloth is of chief weight cotton,1 unbleached and
uncolored printcloth. The term ``printcloth'' refers to plain woven
fabric, not napped, not fancy or figured,
[[Page 13400]]
of singles yarn, not combed, of average yarn number 43 to
68,2 weighing not more than 6 ounces per square yard, of a
total count of more than 85 yarns per square inch, of which the total
count of the warp yarns per inch and the total count of the filling
yarns per inch are each less than 62 percent of the total count of the
warp and filling yarns per square inch. This merchandise is currently
classifiable under Harmonized Tariff Schedule (HTSUS) item
5210.11.6060. The HTSUS item numbers are provided for convenience and
U.S. Customs purposes. The written description remains dispositive.
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\1\ In the scope from the original investigation, the Department
defined the subject merchandise by chief value (i.e., the subject
merchandise was of chief value cotton). For the purposes of this
review, we have incorporated Custom's conversion to chief weight
(i.e., the subject merchandise is of chief weight cotton). See
Memorandum, RE: Greige Polyester Cotton Printcloth--Scope, February
25, 1999.
\2\ Under the English system, this average yarn number count
translates to 26 to 40. The average yarn number counts reported in
previous scope descriptions by the Department are based on the
English system of yarn number counts. Per phone conversations with
U.S. Customs officials, the Customs Service now relies on the metric
system to establish average yarn number counts. Thus, the 26 to 40
average yarn number count under the English system translates to a
43 to 68 average yarn number count under the metric system. See
Memorandum, RE: Greige Polyester Cotton Printcloth--Scope, February
19, 1999.
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This review covers imports from all manufacturers and exporters of
Chinese printcloth.
Background
On November 2, 1998, the Department initiated a sunset review of
the antidumping order on greige polyester cotton printcloth from The
People's Republic of China (63 FR 58709), pursuant to section 751(c) of
the Act. The Department received a Notice of Intent to Participate on
behalf of the American Textile Manufacturers Institute (``ATMI'') and
its member companies on November 16, 1998,3 within the
deadline specified in section 351.218(d)(1)(i) of the Sunset
Regulations. The member companies of ATMI claimed interested party
status under 19 U.S.C. 1677(9)(C) as U.S. producers of greige polyester
cotton printcloth. In addition, ATMI indicated that the following
member companies were the original petitioners in this case: CMI
Industries, Inc., Alice Manufacturing Co., Mayfair Mills, Inc.,
Greenwood Mills, Inc., and Mount Vernon Mills, Inc. We received a
complete substantive response from ATMI on December 2, 1998, within the
30-day deadline specified in the Sunset Regulations under section
351.218(d)(3)(i). We did not receive a substantive response from any
respondent interested party to this proceeding. As a result, pursuant
to 19 CFR 351.218(e)(1)(ii)(C), the Department determined to conduct an
expedited, 120-day review of this order.
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\3\ CMI Industries, Inc. (formerly Clinton Mills, Inc.), Alice
Manufacturing Co., Mayfair Mills, Inc., Greenwood Mills, Inc., Inman
Mills, Inc., Spartan Mills, Inc., and Mount Vernon Mills, Inc.
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Determination
In accordance with section 751(c)(1) of the Act, the Department
conducted this review to determine whether revocation of the
antidumping order would be likely to lead to continuation or recurrence
of dumping. Section 752(c) of the Act provides that, in making this
determination, the Department shall consider the weighted-average
dumping margins determined in the investigation and subsequent reviews
and the volume of imports of the subject merchandise for the period
before and the period after the issuance of the antidumping order, and
shall provide to the International Trade Commission (``the
Commission'') the magnitude of the margin of dumping likely to prevail
if the order is revoked.
The Department's determinations concerning continuation or
recurrence of dumping and the magnitude of the margin are discussed
below. In addition, parties' comments with respect to continuation or
recurrence of dumping and the magnitude of the margin are addressed
within the respective sections below.
Continuation or Recurrence of Dumping
Drawing on the guidance provided in the legislative history
accompanying the Uruguay Round Agreements Act (``URAA''), specifically
the Statement of Administrative Action (``the SAA''), H.R. Doc. No.
103-316, vol. 1 (1994), the House Report, H.R. Rep. No. 103-826, pt. 1
(1994), and the Senate Report, S. Rep. No. 103-412 (1994), the
Department issued its Sunset Policy Bulletin providing guidance on
methodological and analytical issues, including the bases for
likelihood determinations. In its Sunset Policy Bulletin, the
Department indicated that determinations of likelihood will be made on
an order-wide basis (see section II.A.3). In addition, the Department
indicated that normally it will determine that revocation of an
antidumping order is likely to lead to continuation or recurrence of
dumping where (a) dumping continued at any level above de minimis after
the issuance of the order, (b) imports of the subject merchandise
ceased after the issuance of the order, or (c) dumping was eliminated
after the issuance of the order and import volumes for the subject
merchandise declined significantly (see section II.A.3).
In addition to guidance on likelihood provided in the Sunset Policy
Bulletin and legislative history, section 751(c)(4)(B) of the Act
provides that the Department shall determine that revocation of an
order is likely to lead to continuation or recurrence of dumping where
a respondent interested party waives its participation in the sunset
review. In the instant review, the Department did not receive a
response from any interested party. Pursuant to section
351.218(d)(2)(iii) of the Sunset Regulations, this constitutes a waiver
of participation.
The antidumping duty order on greige polyester cotton printcloth
from the People's Republic of China was published in the Federal
Register on September 16, 1983 (48 FR 41614). Since this time, the
Department has conducted three administrative reviews.4 The
order remains in effect for all manufacturers and exporters of the
subject merchandise.
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\4\ See Greige Polyester cotton Printcloth From the People's
Republic of China; Final Results of Administrative Review of
Antidumping Order; 50 FR 5805, February 12, 1985; Greige Polyester
cotton Printcloth From the People's Republic of China; Final Results
of Administrative Review of Antidumping Order; 57 FR 1254, January
13, 1992; and Greige Polyester cotton Printcloth From the People's
Republic of China; Final Results of Administrative Review of
Antidumping Order; 57 FR 31353, July 15, 1992.
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In its substantive response, ATMI argues that the Department should
determine that there is a likelihood that dumping would recur if the
order were revoked because a dumping margin above a de minimis level
has been in place since the imposition of the order, and dumping of
subject merchandise has continued since the issuance of the order.
ATMI notes that a dumping margin of 22.4 percent has existed
throughout the life of the order (see December 2, 1998 Substantive
Response of ATMI at 5-7). Furthermore, ATMI argues that, although the
Department has not conducted a review since the 1988/89 administrative
review (57 FR 31353, July 15, 1992), the existence of imports since
that time, and the fact that a 22.4 percent deposit rate has been
continuously in effect for all imports of the subject merchandise,
suggests that imports of greige polyester cotton printcloth must have
been exported to the United States at prices below cost since 1990.
In making its decision, the Department considered the existence of
dumping margins and the volume of imports before and after the issuance
of the order. As discussed in section II.A.3 of the Sunset Policy
Bulletin, the SAA at 890, and the House Report at 63-64, if companies
continue dumping with the discipline of an order in place, the
Department may reasonably infer that dumping would continue if the
[[Page 13401]]
discipline were removed. In the instant proceeding, a dumping margin
above a de minimis level continues to exist for shipments of the
subject merchandise from all Chinese producers/exporters.5
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\5\ See Greige Polyester cotton Printcloth From the People's
Republic of China; Final Results of Administrative Review of
Antidumping Order; 57 FR 31353, July 15, 1992.
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The Department also considered the volume of imports before and
after issuance of the order, consistent with section 752(c) of the Act.
The Department examined U.S. Census Bureau IM146 reports and data from
our original investigation and subsequent administrative reviews and
finds that imports of the subject merchandise have existed throughout
most of the life of the order.6
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\6\ From the Department's original investigation and its
subsequent administrative reviews, the Department can confirm that
shipments of the subject merchandise occurred in 1982, the year
prior to the imposition of the order, and 1983, the year of the
issuance of the antidumping duty order.
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For the period from 1984 through 1987, the Department can, as noted
in Griege Polyester Cotton Printcloth: Final Results of Antidumping
Duty Administrative Review and Determination Not to Revoke, 57 FR 1254
(January 13, 1992), confirm two shipments of subject merchandise to the
United States. From 1988 through 1989, the Department knows of no
shipments of the subject merchandise to the United States. Lastly, U.S.
Census Bureau IM146 reports show annual imports of merchandise within
the covered HTSUS item number have existed almost continuously from
1990 through 1998.
Upon consideration of the argument and evidence on the record, the
Department determines that the existence of dumping margins after the
issuance of the order is highly probative of the likelihood of
continuation or recurrence of dumping. Specifically, a deposit rate
above a de minimis level continues in effect for exports of the subject
merchandise by all known Chinese manufacturers/exporters. Given that
dumping has continued over the life of the order, respondent interested
parties waived participation in the sunset review, and absent argument
and evidence to the contrary, the Department determines that dumping is
likely to continue if the order were revoked.
Magnitude of the Margin
In the Sunset Policy Bulletin, the Department stated that it will
normally provide to the Commission the margin that was determined in
the final determination in the original investigation. Further, for
companies not specifically investigated or for companies that did not
begin shipping until after the order was issued, the Department
normally will provide a margin based on the ``all others'' rate from
the investigation. (See section II.B.1 of the Sunset Policy Bulletin.)
Exceptions to this policy include the use of a more recently calculated
margin, where appropriate, and consideration of duty absorption
determinations. (See sections II.B.2 and 3 of the Sunset Policy
Bulletin.)
The Department, in its final determination of sales at less than
fair value, published a weighted-average dumping margin for all imports
of greige polyester cotton printcloth from the People's Republic of
China (48 FR 34312, July 28, 1983). We note that, to date, the
Department has not issued any duty absorption findings in this case.
In its substantive response, ATMI, citing the Sunset Policy
Bulletin, argues that the Department should report to the Commission
the weighted-averaged dumping margin from the original investigation
for China National Textiles Import and Export Corporation
(``Chinatex''). Chinatex was the only producer/exporter of the subject
merchandise identified in the original investigation. Quoting the
Sunset Policy Bulletin, ATMI argues that the Department should report
this margin to the Commission as it is ``* * * the only calculated rate
that reflects the behavior of exporters * * * without the discipline of
an order or suspension agreement in place''.
The Department agrees with ATMI's argument concerning the choice of
the margin rate to report to the Commission. In the original
investigation, the Department calculated a country-wide weighted-
averaged margin for all companies, including Chinatex. Therefore, the
Department finds that the country-wide weighted-averaged margin
calculated in the original investigation is probative of how Chinese
producers and exporters of greige polyester cotton printcloth would act
if the order were revoked. As such, the Department will report to the
Commission as the dumping margin for all companies, the country-wide
rate from the original investigation as contained in the Final Results
of Review section of this notice.
Final Results of Review
As a result of this review, the Department finds that revocation of
the antidumping duty order would likely lead to continuation or
recurrence of dumping at the margin listed below:
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Margin
Manufacturer/exporter (percent)
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All Chinese Manufacturers/Exporters.......................... 22.4
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This notice serves as the only 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 of the Department's regulations.
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 five-year (``sunset'') review and notice are in accordance
with sections 751(c), 752, and 777(i)(1) of the Act.
Dated: March 11, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-6536 Filed 3-17-99; 8:45 am]
BILLING CODE 3510-DS-P
