95-15072. Polyethylene Terephthalate Film, Sheet, and Strip from Japan; Final Results of Antidumping Duty Administrative Review  

  • [Federal Register Volume 60, Number 118 (Tuesday, June 20, 1995)]
    [Notices]
    [Pages 32133-32138]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-15072]
    
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-588-814]
    
    
    Polyethylene Terephthalate Film, Sheet, and Strip from Japan; 
    Final Results of Antidumping Duty Administrative Review
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    ACTION: Notice of final results of antidumping duty administrative 
    review.
    
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    SUMMARY: On March 2, 1994, the Department of Commerce (the Department) 
    published the preliminary results of its administrative review of the 
    antidumping duty order on polyethylene terephthalate film, sheet, and 
    strip (PET film) from Japan. The review covers three manufacturers/
    exporters of this merchandise to the United States, Toray Industries, 
    Inc. (Toray), Teijin, Ltd. (Teijin), and Diafoil Co. Ltd. (Diafoil), 
    and the period November 30, 1990 through May 31, 1992. Based on our 
    analysis of comments received, we have changed the final results from 
    those presented in our preliminary results of review.
    
    EFFECTIVE DATE: July 20, 1995.
    
    FOR FURTHER INFORMATION CONTACT: Arthur N. DuBois or Thomas F. Futtner, 
    [[Page 32134]] Office of Antidumping Compliance, International Trade 
    Administration, U.S. Department of Commerce, 14th and Constitution 
    Avenue NW., Washington, DC. 20230, telephone: (202) 482-6312/3814.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        On March 2, 1994, the Department published in the Federal Register 
    (59 FR 9960) the preliminary results of its administrative review of 
    the antidumping duty order on PET film (56 FR 25660, June 5, 1991). The 
    Department has now completed that administrative review in accordance 
    with section 751 of the Tariff Act of 1930 (the Tariff Act) and 19 CFR 
    353.22.
        One firm, Diafoil, did not respond to the Department's 
    questionnaire. Therefore, we are using best information otherwise 
    available (BIA) for cash deposit and appraisement purposes. As BIA for 
    Diafoil, we determined the dumping margin to be 14.00 percent, the 
    highest margin calculated in any administrative review or the original 
    investigation.
        We gave interested parties an opportunity to comment on the 
    preliminary results. We received comments from petitioners, all three 
    respondents and one interested party. All parties participated in the 
    hearing held on April 14, 1994.
    
    Scope of the Review
    
        Imports covered by the review are shipments of all gauges of raw, 
    pretreated, or primed PET film, sheet, and strip, whether extruded or 
    coextruded. The films excluded from the scope of this order are 
    metallized films and other finished films that have had a least one of 
    their surfaces modified by the application of performance-enhancing 
    resin or inorganic layer more than 0.00001 inches (0.254 micrometers) 
    thick. Roller transport cleaning film which has at least one of its 
    surfaces modified by the application of 0.5 micrometers of SBR latex 
    has also been ruled as not within the scope of the order.
        PET film from Japan is currently classifiable under Harmonized 
    Tariff Schedule (HTS) item number 3920.62.0000. The HTS item numbers 
    are provided for convenience and for Customs purposes only. The written 
    descriptions remain dispositive.
    
    Analysis of Comments Received
    
        Comment 1: Toray Plastics America (TPA), an interested party, 
    argues that the Department should use BIA for Diafoil, because Diafoil 
    refused to answer the Department's questionnaire.
        Diafoil responds that it is not uncooperative, only unresponsive. 
    Diafoil objects to TPA's attempt to characterize Diafoil as an 
    ``uncooperative party'' just because Diafoil declined to respond to the 
    Department's questionnaire. Diafoil argues that, as a small exporter, 
    it did not respond because of the excessive burden and cost involved.
        Department's Position: In accordance with section 776(c) of the 
    Tariff Act, the Department uses BIA in cases where a party refuses to 
    respond to the questionnaire, is unable to produce information 
    requested in a timely manner and in the form required, or otherwise 
    significantly impedes the proceedings. The Department uses a two-tiered 
    approach in its choice of BIA. For uncooperative respondents or 
    respondents who substantially impede the proceedings (first tier), the 
    Department uses the higher of (1) the highest rate for any company from 
    the original investigation or any prior administrative review or (2) 
    the highest rate found in the current review for any company. For 
    respondents which attempt to cooperate (second tier), the Department 
    uses the higher of (1) the highest rate ever applicable to that firm 
    for the subject merchandise or (2) the highest calculated rate in the 
    current review for any firm (see Antifriction Bearings (Other than 
    Tapered Roller Bearings) and Parts thereof from France, et al., 58 FR 
    39729, July 26, 1993).
        Accordingly, whether Diafoil is characterized as uncooperative or 
    unresponsive, in accordance with the current statute, we must apply 
    BIA. In accordance with our two-tier BIA policy, Diafoil's rate will be 
    14 percent, the highest rate for any company from the original 
    investigation (see Polyethylene Terephthalate Film, Sheet, and Strip 
    from Japan, 56 FR 25660, June 5, 1991).
        Comment 2: TPA states that since Diafoil refused to answer the 
    Department's questionnaire and in light of the substantial difference 
    between Diafoil's current deposit rate and its new BIA rate, the 
    Department should publish immediately a determination establishing a 
    new BIA deposit rate for future entries of PET film produced or 
    exported by Diafoil.
        TPA claims that nothing in the antidumping law, or in the 
    Department's regulations, requires that the Department wait until the 
    conclusion of its review before establishing a new deposit rate for a 
    foreign producer or exporter that has utterly refused to participate in 
    the proceeding.
        Department's Position: Deposit rates can only be changed after 
    conducting an administrative review, in accordance with Section 751 of 
    the Tariff Act. Our regulations require that we issue preliminary 
    results of review and allow parties to ask for disclosure of the 
    calculation methodology, submit written argument and rebuttal comments 
    and the opportunity to ask for hearings (19 CFR 353.22 and 353.38).
        Comment 3: Toray argues that for these final results the Department 
    should calculate two margins for this review: one for the period 
    preceding issuance of the antidumping duty order (i.e., November 30, 
    1990, through May 31, 1991) and a second for Toray's sales in the first 
    12 months following issuance of the order (i.e., June 1, 1991, through 
    May 31, 1992). Toray maintains that the Department should instruct 
    Customs to use the margin from the latter period as the basis for 
    Toray's cash deposits on future entries.
        Toray states that because antidumping duties are intended to be 
    remedial, rather than punitive, in nature, they should reflect a 
    respondent's current pricing practices. Accordingly, the Department's 
    final results in this review should demonstrate that Toray has 
    eliminated or substantially reduced its dumping margin in the period 
    following publication of the antidumping duty order. Toray argues that 
    the Department's regulations implicitly require the calculation of a 
    separate, weighted-average margin for a respondent's first full year of 
    sales under an order. If the Department fails to do this, Toray 
    contends, it frustrates the intent of its own regulations by 
    effectively extending the qualifying period for company-specific 
    revocations to four years, thereby making necessary additional 
    administrative reviews that otherwise might have been made unnecessary 
    by respondents' good faith efforts to amend their pricing practices 
    immediately after a less-than-fair-value (LTFV) investigation. Toray 
    further contends that the courts have held that a respondent's 
    weighted-average dumping margin should reflect a respondent's current 
    pricing practices.
        The petitioners, E. I. Du Pont de Nemours & Company, Inc., Hoeschst 
    Celanese Corporation, and ICI Americas Inc., argue that the 
    Department's consistent practice during the first administrative review 
    is to use the period between the date provisional measures were first 
    applied and the month before the first anniversary date of the 
    antidumping duty order. This is a reasonable exercise of the 
    Department's administrative discretion in implementing section 751 of 
    the [[Page 32135]] Tariff Act, which does not offer any guidance to the 
    Department regarding the period covered by the first administrative 
    review.
        The petitioners note that the Department has consistently utilized 
    this approach in determining the appropriate period for the first 
    administrative review. Furthermore, the Department has consistently 
    calculated assessment and deposit rates based on sales over the entire 
    period. Petitioners further argue that in such situations the courts 
    have consistently supported an agency's implementation of a statute, 
    citing Timken Co. v. United States, 14 CIT 753 (1990); Mart Corp. v. 
    United States, 486 U.S. 281 (1988); and Zenith Radio Corp. v. United 
    States, 437 U.S. 443, 450 (1978). Petitioners observe that none of the 
    cases cited by Toray in its brief relates at all to the Department's 
    first administrative review procedures or in any way attributes any 
    punitive or retaliatory characteristics to them. Further, petitioners 
    note that Toray cites no judicial precedent that supports its position 
    that the Department's current first administrative review period is not 
    ``current'' or is ``unfair.''
        Therefore, petitioners conclude, the Department has properly 
    determined that one-year review periods are appropriate only after the 
    first administrative review, which normally covers a period closer to 
    18 months. By honoring Toray's request, petitioners argue that the 
    Department would in fact be ignoring dumping which occurs earlier in 
    the review period, an action which would be inconsistent with the 
    Tariff Act and would be ``punitive'' to the domestic industry.
        Department's Position: There is no statutory guidance regarding the 
    period to be covered by the first administrative review or the period 
    on which to base cash deposit rates. However, the Department's 
    regulations identify the period to be covered by a first administrative 
    review as ``the period from the suspension of liquidation * * * to the 
    end of the month immediately preceding the first anniversary month'' 
    (see 19 CFR 353.22(b)(2)). As a matter of administrative practice, the 
    Department has consistently calculated assessment and deposit rates 
    based on the entire period of review. To do otherwise would invite 
    manipulation by parties who, depending on their point of view, could 
    argue that one division or another of the POR would be more favorable 
    to their interests. The Department considers the first review period to 
    be ``current'' even if it exceeds twelve months.
        Finally, we are not persuaded by Toray's argument that the 
    Department, by not dividing the first POR into pre- and post-order 
    periods, undermines its own company-specific revocation procedures, 
    which are based on three consecutive years of no dumping. Respondents 
    can begin practicing pricing discipline as soon as the Department 
    initiates an investigation. Certainly at the time of the preliminary 
    determination, when suspension of liquidation occurs, respondents are 
    made aware of the Department's methodology and can begin to change 
    their prices accordingly.
        Comment 4: TPA claims that, in accordance with the Department's 
    methodology, recently upheld in Outokumpu Copper Rolled Products AB v. 
    United States, 829 F.Supp. 1371, 1379-80 (CIT, 1993) (Outokumpu), many 
    of Teijin's U.S. sales should be treated as exporter's sales price 
    (ESP) transactions.
        TPA asserts that, in Outokumpu, the Court held that the Department 
    could apply a ``purchase price'' analysis to ``closed consignment'' 
    sales (where the exporter's U.S. subsidiary held merchandise for 
    ``just-in-time'' delivery) if, first, the U.S. subsidiary performs 
    strictly ministerial functions, and, second, any warehousing operation 
    undertaken by the U.S. subsidiary reflects the parties' ``customary 
    commercial channels.'' TPA contends that Teijin does not meet either of 
    these criteria. First, according to TPA, Teijin has three separate U.S. 
    companies that account for a significant portion of U.S. sales under 
    review. Further, TPA claims that Teijin's questionnaire response makes 
    clear that the company's U.S. subsidiaries are engaged in a wide range 
    of sales and post-sale activities, including marketing and acting as a 
    selling agent. Similarly, TPA notes that Teijin has reported technical 
    service expenses, as well as indirect expenses, by all three U.S. 
    subsidiaries for the maintenance of sales staff. Finally, TPA claims 
    that Teijin's sales do not follow the ``customary commercial channels'' 
    utilized by Teijin and its U.S. subsidiaries.
        Teijin responds that its U.S. sales are properly analyzed as 
    purchase price transactions and disputes TPA's argument that, based on 
    criteria upheld by Outokumpu, Teijin's sales should be treated as ESP 
    sales. First, during the LTFV investigation, the Department verified 
    that the merchandise did not enter the physical inventory of the 
    subsidiary. Second, Teijin's subsidiaries continue to perform only 
    ministerial functions, processing sales-related documentation and 
    serving as a communication link, in connection with U.S. sales of PET 
    film. Finally, Teijin argues that TPA's attempt to portray Teijin's 
    U.S. operations as more substantial or ``substantially restructured'' 
    are misinformed.
        Department's Position: During the LTFV investigation, the 
    Department verified that Teijin's U.S. sales were final before 
    importation and did not enter inventory in the United States. 
    Accordingly, Teijin's sales qualified as purchase price sales. In this 
    review, Teijin again asserts that its U.S. subsidiaries perform only 
    ministerial functions and that its U.S. sales during the POR do not 
    enter inventory in the United States. In this review, TPA offers no 
    specific support for its position except to question certain selling 
    expenses. Further, nothing appears in the record of this review to show 
    that there is anything different from the investigation that would 
    distinguish any of the sales as ESP sales. We disagree with TPA's 
    comment that Teijin's questionnaire response makes it clear that it and 
    its U.S. subsidiaries are engaged in activities that would force the 
    Department to conclude that Teijin's sales should be analyzed as ESP 
    sales. Also, we considered these sales to be in the customary 
    commercial channels in the investigation, and TPA has provided no 
    evidence to the contrary. Finally, in our verification of Teijin's 
    response during the LTFV investigation, we found no additional expenses 
    such as technical services, advertising, or warranties on U.S. sales. 
    Accordingly we have accepted Teijin's claim for purchase price analysis 
    for the final results of administrative review.
        Comment 5: TPA argues that the Department should reject Teijin's 
    suggested model match because the methodology is distortive and 
    deficient. TPA argues that the correct methodology is to first match 
    PET film products by their end-use and subsequently by their polymers 
    and gauges because this is the most accurate and administrable model 
    match methodology. TPA maintains that each of PET film's five primary 
    end-use categories requires common physical and performance 
    characteristics that determine the commercial utility and value of the 
    product and that are unique to that class.
        Teijin responds that, notwithstanding its strong belief that 
    physical characteristics represent the most appropriate matching 
    methodology, in compliance with the Department's requests, it has 
    provided the Department with alternative product concordances with and 
    without end-use as a matching criteria. Therefore, in spite of Teijin's 
    [[Page 32136]] position that physical characteristics represent the 
    most appropriate matching methodology, Teijin maintains that the 
    Department has a complete record upon which to base its final results.
        Department's Position: In developing product-specific model match 
    methodologies, the statutory preference is for the matching of 
    identical merchandise (see section 771(16)(A) of the Tariff Act). Where 
    this identical matching is not possible, the most similar matches are 
    preferred (see section 771(16)(B)).
        During the review, we solicited comments from all parties on 
    matching criteria for comparing similar merchandise in the absence of 
    sales of identical merchandise in the U.S. and home markets. Based on 
    submissions from petitioners and respondents, no single physical 
    characteristic appears to be a defining criterion for all types of PET 
    film.
        In the case of PET film, we have determined that it is appropriate 
    to use groups of physical characteristics based on end-use as an 
    organizational tool to establish similar categories of merchandise. 
    This methodology was adopted because of the unique circumstances of 
    this case, such as the complexity of the subject merchandise, the 
    difficulty in determining the most similar models in a consistent 
    manner, and the fact that it is evident that end use plays a role in 
    the determination of the merchandise's physical dimensions.
        Therefore, we have matched by physical characteristics within these 
    categories to find matches of the most similar merchandise. We also 
    have determined that it would be inappropriate to match across 
    categories because this could result in more dissimilar matches rather 
    than in comparisons of the most similar merchandise. In these final 
    results we used Teijin's alternative model-matching concordance with 
    broad end-use categories.
        Comment 6: The petitioners comment that the Department's 
    preliminary treatment of consumption tax for both Teijin and Toray was 
    not in full conformity with current Department practice. Namely, they 
    argue that, in calculating the consumption tax adjustments, the 
    Department failed to include all of the expenses incurred after the 
    point at which the Japanese government applies the home market 
    consumption tax.
        Both Teijin and Toray support the Department's use of a methodology 
    that provides for tax neutrality in the dumping calculation. Toray, 
    however, takes no position with respect to petitioners' claims 
    regarding the imputation of the Japanese consumption tax for the 
    preliminary results.
        Department's Position:
        We agree with petitioners that the tax adjustment must be made at 
    the same point in the chain of commerce in each market and we have 
    adjusted for taxes in accordance with our practice as outlined in 
    Silicomanganese from Venezuela, Preliminary Determination of Sales at 
    Less Than Fair Value, 59 FR 31204, June 17, 1994.
        Comment 7: TPA asks the Department to ensure that Teijin has 
    properly reported all U.S. and home market sales, or reject Teijin's 
    questionnaire response in its entirety. In particular, TPA argues that 
    there is no legal basis for Teijin's original request that the 
    Department exclude from its review sales of certain unique grades of 
    PET film, including sandblasted film, embossed film, further-processed 
    film, ``experimental'' film, film sold on a yen-per-square meter basis, 
    and film sold on a yen-per-piece basis. Similarly, TPA asks the 
    Department to ensure that Teijin has reported all of its provisions of 
    sample merchandise in the United States.
        Teijin responds that: (1) It has fully reported all U.S. and home 
    market sales; (2) it has fully reported all grades of PET film, and its 
    questionnaire responses clearly indicate that these sales have been 
    included in its computer files; and (3) its supplemental questionnaire 
    response states explicitly that certain sample sales, which had 
    originally been omitted in error, were included in the computer 
    listing.
        Department's Position: We have reviewed Teijin's responses and have 
    determined that they are complete and that all grades of PET film and 
    all sample sales have been reported. Although Teijin originally 
    excluded the types of film noted by TPA, the company included these 
    film types in its supplemental response. Accordingly, we will continue 
    to rely on Teijin's submissions for the final results of administrative 
    review.
        Comment 8: TPA argues that Teijin has refused to comply with the 
    Department's questionnaire in numerous critical respects, in addition 
    to the specific issues discussed in other comments:
         Teijin has not provided affiliation and distribution 
    agreements that TPA claims are essential to a proper understanding of 
    its U.S. operations, particularly with respect to Teijin's joint 
    venture with Du Pont;
         Teijin has failed to identify the proper dates of sale;
         Teijin's submissions do not adequately describe the basis 
    for qualification or payment of rebates; and
         Teijin has failed to report, or incorrectly reported, 
    numerous U.S. and home market expenses, such as technical services, 
    warranty claims, advertising, sales promotion, and packing costs.
        Accordingly, in the absence of complete and accurate data, TPA 
    maintains that the Department should apply BIA in its final margin 
    calculations.
        Teijin responds that it has provided complete and accurate data to 
    the Department.
        Department's Position: We have reviewed Teijin's submissions and 
    are satisfied that Teijin's response is complete and responsive to our 
    questionnaire. Specifically:
         Teijin has provided to the Department sufficient 
    information regarding its U.S. affiliations and distribution system for 
    us to determine that Teijin reported its sales to the first unrelated 
    customer.
         Teijin's dates of sale, including such instances as 
    informal orders, blanket purchase agreements, and shipments during 
    ongoing price negotiations, were properly reported. Namely, Teijin 
    reported the date of sale as the date upon which the substantive terms 
    of the contract (especially price and quantity) are set. Consistent 
    with this reporting requirement, the date of sale reported by Teijin in 
    most cases was the purchase order confirmation date. Where this was not 
    the case, Teijin reported the date upon which price and quantity were 
    firmly established as the date of sale. In no case was the reported 
    date of sale later than the date of shipment.
         Teijin's submissions adequately describe the basis for 
    qualification and payment of rebates as related to customer loyalty, 
    purchase volume and market conditions, and identifies each of its home 
    market and U.S. rebates on a customer- and sale-specific basis, 
    precisely the standard articulated by TPA in its brief.
         There is nothing in the record to substantiate TPA's 
    assertions that Teijin's U.S. and home market expenses have been 
    reported incorrectly. Teijin asserts that it incurred no warranty 
    expenses in the United States during the period of review and that it 
    did not incur any technical service, advertising, sales promotion or 
    other expenses directly related to its U.S. sales of PET film.
        Therefore, we have relied on Teijin's response for these final 
    results.
        Comment 9: TPA argues that the Department cannot rely upon Teijin's 
    questionnaire response without verifying the data. TPA notes that where 
    [[Page 32137]] the Department has ``good cause'' to verify a 
    respondent's submission, it has a concomitant legal obligation to do 
    so, citing Smith Corona Corp. v. United States, 771 F.Supp. 389 (CIT, 
    1991). TPA notes that it timely requested that the Department verify 
    Teijin's questionnaire response in this review and that the 
    circumstances establish ``good cause'' for verification.
        TPA argues that this review raises significant factors and issues 
    never before considered by the Department: cost data regarding 
    adjustments for differences in merchandise where similar merchandise is 
    used for comparison to U.S. sales; Teijin's radical restructuring of 
    its U.S. operations; Teijin's failure to fully respond and its 
    internally inconsistent responses; and the fact that the Department's 
    prior verification revealed significant unreported expenses and other 
    discrepancies in the data submitted by Teijin.
        Teijin responds that the Department correctly declined to verify 
    Teijin's response. Teijin argues that TPA has failed to show that the 
    requisite ``good cause'' for verification exists in this review. 
    Further, Teijin contends that the Department found that TPA did not 
    demonstrate ``good cause'' for verification in large measure because 
    the respondent had passed verification in the LTFV investigation and 
    had furnished a ``substantial amount of detail and documentation'' in 
    the administrative review questionnaire response (see Small Business 
    Telephone Systems, 57 FR 8299). Similarly, Teijin argues that the 
    ``new'' facts cited by TPA in support of the claim for verification are 
    insufficient to establish the necessary good cause. In this regard, 
    Teijin argues, this review is identical to that in Antifriction 
    Bearings (Other than Tapered Roller Bearings) and Parts Thereof from 
    France, et al. (58 FR 28360, June 24, 1992), in which the Department 
    rejected the petitioner's basis for requesting that the Department 
    conduct a more thorough verification of respondents' cost accounting 
    system, on the basis of several factors, including the respondent's 
    past verification history and the Department's evaluation of the 
    credibility of the data submitted.
        Department's Position: In accordance with 19 CFR 353.36(a)(1)(b), 
    because we verified Teijin during the LTFV investigation, we were not 
    required to verify in this administrative review unless good cause was 
    shown. We agree with Teijin that no good cause was shown during this 
    review to compel the Department to verify Teijin's response. The 
    decision not to verify fully accords with past Department practice in 
    this regard (see Certain Small Business Telephone Systems and 
    Subassemblies Thereof from Korea, 57 FR 8298, March 9, 1992). Further, 
    because we verified the overwhelming amount of the information 
    submitted in the original investigation and because we have determined 
    Teijin's response in this review to be complete and credible, we have 
    also accepted the new cost data as submitted during the review.
        Comment 10: The following clerical errors were noted by various 
    parties:
        (1) The petitioners comment that the Department's test for use of 
    annual versus monthly weighted-average prices was mathematically 
    incorrect due to misplaced parentheses. Toray comments that the error 
    in the annual average test had no impact on the calculations. Teijin 
    agrees that the Department should correct the clerical error in 
    Teijin's POR-averaging program.
        (2) The petitioners comment that the Department failed to convert 
    yen-denominated sales and adjustments into dollar-denominated values in 
    certain of Toray's U.S. sales. Toray agrees with the petitioners that 
    the Department should ensure that all of its conversions of both 
    currencies and units of measure are correct. Further, Toray suggests 
    that the Department should ensure that it properly converts Toray's 
    reported cost of production into dollars and that it properly converts 
    all quantities to kilograms.
        (3) The petitioners argue that certain U.S. sales by Toray were 
    incorrectly excluded from the Department's analysis because these sales 
    could not be matched with any such or similar home market sales, and 
    the Department lacked the requisite cost data to construct values for 
    those sales. Petitioners note that the Department is obligated to 
    analyze all U.S. sales unless it can be shown that their inclusion 
    distorts the Department's dumping calculation. Therefore, petitioners 
    maintain that the Department should include these transactions in its 
    analysis of Toray's U.S. sales using the highest margin for any 
    reviewed U.S. sale by Toray as BIA.
        Toray agrees with petitioners that the Department should include 
    various U.S. sales that were excluded in the preliminary results as 
    having no foreign market value (FMV), but argues that BIA need not be 
    used because Toray's responses contain the information necessary for 
    the Department to make the appropriate price comparisons.
        (4) Teijin notes that the Department inadvertently included home 
    market sales outside the POR in its preliminary margin calculation. 
    Since this is contrary to the Department's stated intention to use only 
    sales made during the POR, Teijin suggests that this clerical error 
    should be corrected for the final results by eliminating the sales 
    prior to November 30, 1990 and after May 31, 1992, from the home market 
    sales database.
        (5) TPA argues that Teijin's pre-sale foreign inland freight 
    expense was subtracted twice from FMV. TPA contends that Teijin 
    reported this expense twice, both separately and as part of its overall 
    inland freight expense. TPA notes that the Department is double-
    counting an expense that should not be deducted at all, citing Ad Hoc 
    Committee of AZ-NM-TX-FL Producers of Gray Portland Cement v. United 
    States, 13 F.3d 398, 402 (Fed. Cir. 1994) (Ad Hoc Committee).
        Teijin states that the Department should continue to deduct 
    Teijin's freight costs from FMV for the final results, but should, 
    however, correct its inadvertent subtraction of the pre-sale inland 
    freight figure in calculating FMV.
        (6) TPA argues that if the Department relies on a purchase price 
    analysis for its final results of review, Teijin's U.S. and home market 
    indirect expenses should not be deducted, as they were in the 
    preliminary results of review.
        (7) Teijin notes that the Department incorrectly read Teijin's U.S. 
    credit insurance expense field, improperly increasing the U.S. credit 
    expense by 1000 times the actual cost by inadvertently omitting the 
    decimal point.
        (8) Teijin argues that in the absence of an identical match in the 
    home market data base, the Department should use the most similar match 
    in calculating FMV, instead of second most similar as was inadvertently 
    done for the preliminary results.
        Department's Position: We agree with all eight comments and have 
    recalculated our results accordingly. Specifically:
        (1) We corrected the clerical error noted.
        (2) We corrected the clerical error noted.
        (3) We have included the Toray sales inadvertently omitted from the 
    preliminary results of review. We were able to make appropriate matches 
    and, therefore, did not need to resort to BIA.
        (4) All Teijin's sales inadvertently excluded in the preliminary 
    results of review have been included and matched with FMVs for these 
    final results, with the exception of sales outside the POR.
        (5) We agree with TPA that Teijin's pre-sale foreign freight was 
    reported separately and also was included in an overall freight total 
    and, therefore, was incorrectly deducted twice. Further, we 
    [[Page 32138]] agree with TPA that, because this is a purchase price 
    situation and because Teijin has not made an adequate claim for an 
    adjustment under the circumstance-of-sale (COS) provision of 19 CFR 
    353.56, in accordance with the Federal Circuit's decision in Ad Hoc 
    Committee, it is not appropriate to deduct pre-sale inland freight at 
    all and have adjusted our calculations accordingly.
        (6) Teijin's U.S. and home market indirect expenses have not been 
    deducted for the final results of review.
        (7) We corrected the clerical error noted.
        (8) We have used identical or first most similar matching for our 
    final results of review.
    
    Final Results of the Review
    
        As a result of our review, we have determined that the following 
    margins exist for the period November 30, 1990, through May 31, 1992:
    
    ------------------------------------------------------------------------
                                                                    Margin  
                   Manufacturer/producer/exporter                 (percent) 
    ------------------------------------------------------------------------
    Toray......................................................         2.24
    Teijin.....................................................         2.03
    Diafoil....................................................        14.00
    ------------------------------------------------------------------------
    
        The Department shall determine, and the Customs Service shall 
    assess, antidumping duties on all appropriate entries. Individual 
    differences between U.S. price and FMV may vary from the percentages 
    stated above. Upon completion of the review the Department will issue 
    appraisement instructions directly to the Customs Service.
        Furthermore, the following deposit requirements will be effective 
    upon publication of these final results of administrative review for 
    all shipments of PET film entered, or withdrawn from warehouse, for 
    consumption on or after that publication date, as provided by section 
    751(a)(1) of the Tariff Act, and will remain in effect until 
    publication of the final results of the next administrative review: (1) 
    The cash deposit rates for the reviewed companies will be those 
    outlined above; (2) for previously reviewed or investigated companies 
    not listed above, the cash deposit rate will continue to be their 
    previously established company-specific rate; (3) if the exporter is 
    not a firm covered in this review, previous reviews, or the original 
    investigation, but the manufacturer is, the cash deposit rate will be 
    that established for the manufacturer of the merchandise; and (4) if 
    neither the exporter nor the manufacturer is a firm covered in this or 
    any previous review, the cash deposit rate will be 6.32 percent, which 
    is the all other rate established in the LTFV investigation, in 
    accordance with the Court of International Trade's (CIT's) decisions in 
    Floral Trade Council v. United States, 822 F. Supp. 766 (CIT 1993), and 
    Federal Mogul Corporation and the Torrington Company v. the United 
    States 822 F Supp. 782 (CIT 1993).
        This notice serves as a final reminder to importers of their 
    responsibility under 19 CFR 353.26 to file a certificate regarding the 
    reimbursement of antidumping duties prior to liquidation of the 
    relevant entries during this review period. Failure to comply with this 
    requirement could result in the Secretary's presumption that 
    reimbursement of antidumping duties occurred and the subsequent 
    assessment of double antidumping duties.
        This notice also serves as a reminder to parties subject to 
    administrative protective orders (APOs) of their responsibility 
    concerning the return or destruction of proprietary information 
    disclosed under APO in accordance with 19 CFR 353.34(d). Timely written 
    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 APO is a sanctionable violation.
        This administrative review and notice are in accordance with 
    section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR 
    353.22.
    
        Dated: June 14, 1995.
    Paul L. Joffe,
    Deputy Assistant Secretary for Import Administration.
    [FR Doc. 95-15072 Filed 6-19-95; 8:45 am]
    BILLING CODE 3510-DS-P
    
    

Document Information

Effective Date:
7/20/1995
Published:
06/20/1995
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of final results of antidumping duty administrative review.
Document Number:
95-15072
Dates:
July 20, 1995.
Pages:
32133-32138 (6 pages)
Docket Numbers:
A-588-814
PDF File:
95-15072.pdf