69 FR 34125, June 18, 2004

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

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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://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

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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

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]