73 FR 5801, January 31, 2008

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-916]

 
Laminated Woven Sacks From the People's Republic of China: 
Preliminary Determination of Sales at Less Than Fair Value, Partial 
Affirmative Determination of Critical Circumstances, and Postponement 
of Final Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

DATES: Effective Date: January 31, 2008.
SUMMARY: We preliminarily determine that laminated woven sacks 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 733 of the Tariff Act of 1930, as amended (``the 
Act''). The estimated margins of sales at LTFV are shown in the 
``Preliminary Determination'' section of this notice. We will make our 
final determination within 135 days after the publication of this 
preliminary determination.

FOR FURTHER INFORMATION CONTACT: Catherine Bertrand or Javier 
Barrientos, AD/CVD Operations, Office 9, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
202-482-3207 or 202-482-2243, respectively.

SUPPLEMENTARY INFORMATION:

Initiation

    On June 28, 2007, the Department of Commerce (``Department'') 
received a petition on imports of laminated woven sacks from the PRC 
from the Laminated Woven Sacks Committee and its individual members, 
Bancroft Bags, Inc., Coating Excellence International, LLC,

[[Page 5802]]

Hood Packaging Corporation, Mid-America Packaging, LLC, and Polytex 
Fibers Corporation (collectively, ``Petitioners''). This investigation 
was initiated on July 18, 2007. See Laminated Woven Sacks from the 
People's Republic of China: Initiation of Antidumping Duty 
Investigation, 72 FR 40833 (July 25, 2007) (``Initiation Notice''). On 
August 14, 2007, the United States International Trade Commission 
(``ITC'') issued its affirmative preliminary determination that there 
is a reasonable indication that the establishment of an industry in the 
United States is materially retarded by reason of imports from the PRC 
of laminated woven sacks. The ITC's determination was published in the 
Federal Register on August 17, 2007. See, Laminated Woven Sacks From 
China, 72 FR 46246 (August 17, 2007) (``ITC Preliminary 
Determination'').

Scope Comments

    In accordance with the preamble to our regulations, we set aside a 
period of time for parties to raise issues regarding product coverage 
and encouraged all parties to submit comments within 20 calendar days 
of publication of the Initiation Notice. On August 7, 2007, Petitioners 
provided comments to the scope and requested that the Department 
include their suggested revisions and additions into the language of 
the scope. No other party provided scope comments or commented on 
Petitioners' August 7, 2007, submission. The Department has analyzed 
the comments received and has preliminarily determined to amend the 
scope from the Initiation Notice. We will afford interested parties an 
opportunity to provide comments on our preliminary finding on this 
issue in their case and rebuttal briefs, and, if any are provided, we 
will address these comments in our final determination.

Respondent Selection

    On July 19, 2007, the Department sent a letter requesting quantity 
and value (``Q&V'') information to the China Bureau of Fair Trade for 
Imports & Exports (``BOFT'') of the Ministry of Commerce (``MOFCOM'') 
requesting that BOFT transmit the letter to all companies who 
manufacture and export subject merchandise to the United States, or 
produce the subject merchandise for the companies who were engaged in 
exporting the subject merchandise to the United States during the 
period of investigation (``POI''). The Department did not receive any 
type of communication from BOFT regarding its request for Q&V 
information. Also on July 19, 2007, we requested Q&V information from 
41 potential exporters or producers of laminated woven sacks from the 
PRC. The Department received Q&V responses from 16 producers and/or 
exporters that exported subject merchandise to the United States during 
the POI.
    On August 16, 2007, the Department selected two mandatory 
respondents, Shandong Shouguang Jianyuanchun Co., Ltd. (``SSJ''), and 
Zibo Aifudi Plastic Packaging Co., Ltd.(''Aifudi''), which were two 
exporters, of those companies that responded to the Department's 
request for Q&V information, that accounted for the largest volume 
measured by total pieces of subject merchandise shipped to the United 
States during the POI. See Memorandum to Gary Taverman, Acting Deputy 
Assistant Secretary, from Catherine Bertrand, Senior International 
Trade Analyst: Selection of Respondents for the Antidumping Duty 
Investigation of Laminated Woven Sacks from the People's Republic of 
China, dated August 16, 2007.

Separate Rates Applications

    We received fifteen separate rate applications by the due date of 
September 17, 2007. However on September 27, 2007, we rejected two of 
these applications for filing deficiencies. The rejected applications 
were from The Seventh Plastic Factory of Danyang City and Jiangmen Jing 
Long Plastic Packing Co/Jiangmen Xinhui Sanjiang Plastic. We gave these 
two companies a deadline of October 11, 2007, to re-submit a corrected 
application. We did not receive an application from either company by 
the new deadline, and therefore we do not consider these two companies 
to be separate rate applicants. We also sent supplemental 
questionnaires to Jiangsu Hotson Plastics Co. Ltd., Shandong Qilu 
Plastic Fabric Group Stock Co., Ltd., Zibo Linzi Luitong Plastic Fabric 
Co. Ltd., Zibo Linzi Qitianli Plastic Fabric Co., Ltd., Zibo Linzi 
Worun Packing Product Co., Ltd., and, Zibo Qigao Plastic Cement Co. 
Ltd., and we received timely responses from all of these companies.

Product Characteristics & Questionnaires

    On August 17, 2007, the Department received comments from 
Petitioners on product characteristics to be used in the designation of 
control numbers (``CONNUMs'') to be assigned to the subject 
merchandise. On August 17, 2007, the Department issued its sections A, 
C, D, and E, questionnaire to the two mandatory respondents, SSJ and 
Aifudi. After receiving responses to the questionnaire from both 
companies, the Department issued supplemental questionnaires to both 
companies and received timely responses. Petitioners submitted 
deficiency comments throughout the investigation for both companies.

Surrogate Country

    On October 15, 2007, the Department determined that India, Sri 
Lanka, Egypt, Indonesia, and Philippines are countries comparable to 
the PRC in terms of economic development. See Memorandum from Ron 
Lorentzen, Director, Office of Policy, to Alex Villanueva, Program 
Manager, China/NME Group, Office 9: Antidumping Duty Investigation of 
Laminated Woven Sacks from the People's Republic of China: Request for 
a List of Surrogate Countries, dated October 15, 2007.
    On October 15, 2007, the Department requested comments on the 
surrogate country selection from the interested parties in this 
investigation. Petitioners submitted surrogate country comments on 
October 31, 2007. No other interested parties commented on the 
selection of a surrogate country. For a detailed discussion of the 
selection of the surrogate country, see the ``Surrogate Country'' 
section below.

Surrogate Value Comments

    On December 19, 2007, Petitioners, SSJ, and Aifudi submitted 
comments on surrogate information with which to value the factors of 
production in this proceeding. On January 2, 2008, Petitioners, SSJ, 
and Aifudi filed rebuttal comments on the surrogate information. Also, 
on January 2, 2008, SSJ submitted additional surrogate value 
information.

Critical Circumstances

    On November 2, 2007, Petitioners alleged that there is a reasonable 
basis to believe or suspect critical circumstances exist with respect 
to the antidumping investigation of laminated woven sacks from the PRC. 
On November 9, 2007, the Department issued questionnaires requesting 
data for monthly exports to the United States from January 2005 through 
October 2007 from SSJ and Aifudi, and received timely responses. For a 
detailed discussion, please see the ``Critical Circumstances'' section 
below.

Postponement of Preliminary Determination

    On November 9, 2007, Petitioners made a timely request, pursuant to 
19 CFR 351.205(e), for a 50-day postponement of the preliminary 
determination in this investigation, pursuant to section 733(c)(1)(A) 
of the

[[Page 5803]]

Act. The Department extended the preliminary determination by 50 days. 
See Postponement of Preliminary Determination of Antidumping Duty 
Investigation: Laminated Woven Sacks From the People's Republic of 
China, 72 FR 65706 (November 23, 2007).

Postponement of Final Determination

    On January 11, 2008, Aifudi requested that, in the event of an 
affirmative preliminary determination in this investigation, the 
Department: (1) Postpone its final determination by 60 days in 
accordance with 19 CFR 351.210(2)(ii) and 735(a)(2)(A) of the Act; and 
(2) extend the application of the provisional measures prescribed under 
19 CFR 351.210(e)(2) from a 4-month period to a 6-month period.

Period of Investigation

    The POI is October 1, 2006, through March 31, 2007. This period 
corresponds to the two most recent fiscal quarters prior to the month 
of the filing of the petition. See 19 CFR *351.204(b)(1).

Scope of Investigation

    The merchandise covered by this investigation is laminated woven 
sacks. Laminated woven sacks are bags or sacks consisting of one or 
more plies of fabric consisting of woven polypropylene strip and/or 
woven polyethylene strip, regardless of the width of the strip; with or 
without an extrusion coating of polypropylene and/or polyethylene on 
one or both sides of the fabric; laminated by any method either to an 
exterior ply of plastic film such as biaxially-oriented polypropylene 
(``BOPP'') or to an exterior ply of paper that is suitable for high 
quality print graphics; \1\ printed with three colors or more in 
register; with or without lining; whether or not closed on one end; 
whether or not in roll form (including sheets, lay-flat tubing, and 
sleeves); with or without handles; with or without special closing 
features; not exceeding one kilogram in weight. Laminated woven sacks 
are typically used for retail packaging of consumer goods such as pet 
foods and bird seed.
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    \1\ ``Paper suitable for high quality print graphics,'' as used 
herein, means paper having an ISO brightness of 82 or higher and a 
Sheffield Smoothness of 250 or less. Coated free sheet is an example 
of a paper suitable for high quality print graphics.
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    Effective July 1, 2007, laminated woven sacks are classifiable 
under Harmonized Tariff Schedule of the United States (``HTSUS'') 
subheadings 6305.33.0050 and 6305.33.0080. Laminated woven sacks were 
previously classifiable under HTSUS subheading 6305.33.0020. If entered 
with plastic coating on both sides of the fabric consisting of woven 
polypropylene strip and/or woven polyethylene strip, laminated woven 
sacks may be classifiable under HTSUS subheadings 3923.21.0080, 
3923.21.0095, and 3923.29.0000. If entered not closed on one end or in 
roll form (including sheets, lay-flat tubing, and sleeves), laminated 
woven sacks may be classifiable under other HTSUS subheadings including 
3917.39.0050, 3921.90.1100, 3921.90.1500, and 5903.90.2500. If the 
polypropylene strips and/or polyethylene strips making up the fabric 
measures more than 5 millimeters in width, laminated woven sacks may be 
classifiable under other HTSUS subheadings including 4601.99.0500, 
4601.99.9000, and 4602.90.000. Although HTSUS subheadings are provided 
for convenience and customs purposes, the written description of the 
scope of this investigation is dispositive.

Non-Market-Economy Country Treatment

    For purposes of initiation, Petitioners submitted LTFV analyses for 
the PRC as a non-market economy (``NME''). See Initiation Notice, 72 FR 
at 40835. The Department considers the PRC to be an NME country. See, 
e.g., Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination: Coated Free Sheet Paper from the 
People's Republic of China, 72 FR 30758, 30760 (June 4, 2007), 
unchanged in Final Determination of Sales at Less Than Fair Value: 
Coated Free Sheet Paper from the People's Republic of China, 72 FR 
60632 (October 25, 2007). In accordance with section 771(18)(C)(i) of 
the Act, any determination that a foreign country is an NME country 
shall remain in effect until revoked by the administering authority. No 
party has challenged the designation of the PRC as an NME country in 
this investigation. Therefore, we continue to treat the PRC as an NME 
country for purposes of this preliminary determination.

Surrogate Country Selection

    When the Department is investigating imports from an NME, section 
773(c)(1) of the Act directs it to base normal value, in most 
circumstances, on the NME producer's factors of production valued in a 
surrogate market-economy country or countries considered to be 
appropriate by the Department. In accordance with section 773(c)(4) of 
the Act, in valuing the factors of production, the Department shall 
utilize, to the extent possible, the prices or costs of factors of 
production in one or more market-economy countries that are at a level 
of economic development comparable to that of the NME country and are 
significant producers of comparable merchandise. The sources of the 
surrogate values we have used in this investigation are discussed under 
the normal value section below.
    We find that India, Sri Lanka, Egypt, Indonesia, and Philippines 
are all at an economic level of development equally comparable to that 
of the PRC. Based on the data provided by Petitioners, we recognize 
that India is a producer of comparable merchandise. See Petitioners' 
Surrogate Country Letter at 2. Petitioners provided a list of Indian 
laminated woven sacks producers. See id. at Exhibit 2. Additionally, 
the Department obtained worldwide export data for laminated woven 
sacks. Because the Department was unable to find production data, we 
are relying on export data as a substitute for overall production data 
in this case. Although India and Indonesia appear to both be 
significant producers of comparable merchandise, no party in this 
proceeding requested that Indonesia be selected as the surrogate 
country. Furthermore, Petitioners and both mandatory respondents 
submitted recommended surrogate values using Indian sources, suggesting 
greater availability of appropriate surrogate value data in India 
rather than Indonesia.
    As noted above, the Department only received surrogate country 
comments from the Petitioners stating that the appropriate surrogate 
country is India, and the two mandatory respondents submitted suggested 
surrogate values from India. The Department is preliminarily selecting 
India as the surrogate country on the basis that: (1) It is at a 
similar level of economic development pursuant to 733(c)(4) of the Act; 
(2) it is a significant producer of comparable merchandise; and (3) we 
have reliable data from India that we can use to value the factors of 
production. Thus, we have calculated normal value using Indian prices 
when available and appropriate to value SSJ and Aifudi's factors of 
production. See Memorandum to the File from Javier Barrientos, through 
Alex Villanueva, Program Manager, AD/CVD Operations, Office 9, and 
James C. Doyle, Director, AD/CVD Operations, Office 9: Laminated Woven 
Sacks from the People's Republic of China: Surrogate Values for the 
Preliminary Determination, dated January 24, 2008 (``Surrogate Value 
Memorandum'').

[[Page 5804]]

    In accordance with 19 CFR 351.301(c)(3)(i), for the final 
determination in an antidumping investigation, interested parties may 
submit publicly available information to value the factors of 
production within 40 days after the date of publication of the 
preliminary determination.\2\
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    \2\ In accordance with 19 CFR 351.301(c)(1), for the final 
determination of this investigation, interested parties may submit 
factual information to rebut, clarify, or correct factual 
information submitted by an interested party less than ten days 
before, on, or after, the applicable deadline for submission of such 
factual information. However, the Department notes that 19 CFR 
351.301(c)(1) permits new information only insofar as it rebuts, 
clarifies, or corrects information recently placed on the record. 
The Department generally cannot accept the submission of additional, 
previously absent-from-the-record alternative surrogate value 
information pursuant to 19 CFR 351.301(c)(1). See Glycine from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review and Final Rescission, in Part, 72 FR 58809 
(October 17, 2007) and accompanying Issues and Decision Memorandum 
at Comment 2.
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Affiliations

    We preliminarily find SSJ and Shandong Longxing Plastic Pack Co., 
Ltd. (``Longxing'') to be affiliated parties within the meaning of 
section 771(33)(E) and (F) of the Act, based on ownership and common 
control. See SSJ's October 26, 2007, supplemental response at Exhibits 
SA-6, SA-8A, and SA-8b. Furthermore, we find that they should be 
considered as a single entity for purposes of this investigation. See 
19 CFR 351.401(f). In addition to being affiliated, they have 
production facilities for similar or identical products that would not 
require substantial re-tooling in order to restructure manufacturing 
priorities and there is a significant potential for manipulation of 
production based on the level of common ownership and control, shared 
management, and an intertwining of business operations. See 19 CFR 
351.401(f)(1) and (2); SSJ's October 26, 2007, supplemental response at 
pages SA-4, and SA-6-SA-8. For a detailed discussion of this issue, 
please see the proprietary Memorandum to James C. Doyle, Director, AD/
CVD Operations, Office 9, from Catherine Bertrand, Senior Case Analyst, 
AD/CVD Operations, Office 9: Affiliation and Single Entity status of 
Shandong Shouguang Jianyuanchun Co., Ltd., and Shandong Longxing 
Plastic Pack Co., Ltd., in the Preliminary Determination in the 
Antidumping Duty Investigation of Laminated Woven Sacks from the 
People's Republic of China, dated January 24, 2008.
    Because the Department finds SSJ and Longxing to be a single 
entity, the Department is utilizing the integrated FOP database SSJ 
provided for purposes of the preliminary determination which includes 
the factors of production from Longxing and SSJ. Additionally, the 
Department plans to further investigate whether any other entities are 
affiliated with SSJ or Longxing.

Separate Rates

    In the Initiation Notice, the Department notified parties of the 
application process by which exporters and producers may obtain 
separate-rate status in NME investigations. See Initiation Notice. The 
process requires exporters and producers to submit a separate-rate 
status application. See also Policy Bulletin 05.1: Separate-Rates 
Practice and Application of Combination Rates in Antidumping 
Investigations involving Non-Market Economy Countries, (April 5, 2005), 
(``Policy Bulletin 05.1'') available at http://ia.ita.doc.gov.\3\ 
However, the standard for eligibility for a separate rate (which is 
whether a firm can demonstrate an absence of both de jure and de facto 
governmental control over its export activities) has not changed.
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    \3\ The Policy Bulletin 05.1, states: ``{w{time} hile continuing 
the practice of assigning separate rates only to exporters, all 
separate rates that the Department will now assign in its NME 
investigations will be specific to those producers that supplied the 
exporter during the period of investigation. Note, however, that one 
rate is calculated for the exporter and all of the producers which 
supplied subject merchandise to it during the period of 
investigation. This practice applies both to mandatory respondents 
receiving an individually calculated separate rate as well as the 
pool of non-investigated firms receiving the weighted-average of the 
individually calculated rates. This practice is referred to as the 
application of ``combination rates'' because such rates apply to 
specific combinations of exporters and one or more producers. The 
cash-deposit rate assigned to an exporter will apply only to 
merchandise both exported by the firm in question and produced by a 
firm that supplied the exporter during the period of 
investigation.'' See Policy Bulletin 05.1 (emphasis in original) at 
6.
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    In proceedings involving NME countries, the Department has a 
rebuttable presumption that all companies within the country are 
subject to government control and thus should be assessed a single 
antidumping duty rate. It is the Department's policy to assign all 
exporters of merchandise subject to investigation in an NME country 
this single rate unless an exporter can demonstrate that it is 
sufficiently independent so as to be entitled to a separate rate. As 
discussed below, SSJ and Aifudi, and all but one of the companies that 
submitted a separate rate application, have provided company-specific 
information to demonstrate that they operate independently of de jure 
and de facto government control, and therefore satisfy the standards 
for the assignment of a separate rate.
    We have considered whether each PRC company that submitted a 
complete application is eligible for a separate rate. We note that 
because we rejected the applications filed by The Seventh Plastic 
Factory of Danyang City and Jiangmen Jing Long Plastic Packing Co/
Jiangmen Xinhui Sanjiang Plastic and because these companies did not 
re-file an application as instructed, they do not qualify for a 
separate rate.
    The Department's separate-rate test is not concerned, in general, 
with macroeconomic/border-type controls, e.g., export licenses, quotas, 
and minimum export prices, particularly if these controls are imposed 
to prevent dumping. See Notice of Final Determination of Sales at Less 
Than Fair Value: Certain Preserved Mushrooms from the People's Republic 
of China, 63 FR 72255, 72256 (December 31, 1998). The test focuses, 
rather, on controls over the investment, pricing, and output decision-
making process at the individual firm level. See Certain Cut-to-Length 
Carbon Steel Plate from Ukraine: Final Determination of Sales at Less 
than Fair Value, 62 FR 61754, 61758 (November 19, 1997), and Tapered 
Roller Bearings and Parts Thereof, Finished and Unfinished, from the 
People's Republic of China; Final Results of Antidumping Administrative 
Review, 62 FR 61276, 61279 (November 17, 1997).
    To establish whether a firm is sufficiently independent from 
government control of its export activities to be entitled to a 
separate rate, the Department analyzes each entity exporting the 
subject merchandise under a test arising from the Final Determination 
of Sales at Less Than Fair Value: Sparklers from the People's Republic 
of China, 56 FR 20588 (May 6, 1991) (``Sparklers''), as further 
developed in Final Determination of Sales at Less Than Fair Value: 
Silicon Carbide from the People's Republic of China, 59 FR 22585 (May 
2, 1994) (``Silicon Carbide''). In accordance with the separate-rates 
criteria, the Department assigns separate rates in NME cases only if 
respondents can demonstrate the absence of both de jure and de facto 
governmental control over export activities. Additionally, if the 
Department determines that a company is wholly foreign-owned or located 
in a market economy, then a separate rate analysis is not necessary to 
determine whether it is independent from government control.

[[Page 5805]]

Wholly Foreign-Owned Applicant

    In its separate-rate application, Polywell Industrial Co. (also 
known as Firstway (H.K.) Limited) (``Polywell'') reported that it is 
wholly foreign-owned. Polywell explained that it is a limited liability 
company incorporated in Hong Kong and its ultimate owners are citizens 
of a market-economy country. Therefore, because there is no PRC 
ownership of Polywell and because it is wholly foreign-owned, and we 
have no evidence indicating that it is under the control of the PRC, 
further separate rates analysis is not necessary to determine whether 
Polywell is independent from government control. See Notice of Final 
Determination of Sales at Less Than Fair Value: Creatine Monohydrate 
from the People's Republic of China, 64 FR 71104, 71104 (December 20, 
1999) (where the respondent was wholly foreign-owned, and thus, 
qualified for a separate rate). Accordingly, we have preliminarily 
granted a separate rate to Polywell.

Other Separate Rate Applicants

    Certain separate rate applicants stated that they are either joint 
ventures between Chinese and foreign companies or are wholly Chinese-
owned companies (``SR Applicants''). Therefore, the Department must 
analyze whether these respondents can demonstrate the absence of both 
de jure and de facto governmental control over export activities.

1. Absence of De Jure Control

    The Department considers the following de jure criteria in 
determining whether an individual company may be granted a separate 
rate: (1) An absence of restrictive stipulations associated with an 
individual exporter's business and export licenses; (2) any legislative 
enactments decentralizing control of companies; and (3) other formal 
measures by the government decentralizing control of companies. See 
Sparklers, 56 FR at 20589.
    The evidence provided by SSJ, Aifudi and the SR Applicants supports 
a preliminary finding of de jure absence of governmental control based 
on the following: (1) An absence of restrictive stipulations associated 
with the individual exporters' business and export licenses; (2) there 
are applicable legislative enactments decentralizing control of the 
companies; and (3) there are formal measures by the government 
decentralizing control of companies.

2. Absence of De Facto Control

    Typically the Department considers four factors in evaluating 
whether each respondent is subject to de facto governmental control of 
its export functions: (1) Whether the export prices are set by or are 
subject to the approval of a governmental agency; (2) whether the 
respondent has authority to negotiate and sign contracts and other 
agreements; (3) whether the respondent has autonomy from the government 
in making decisions regarding the selection of management; and (4) 
whether the respondent retains the proceeds of its export sales and 
makes independent decisions regarding disposition of profits or 
financing of losses. See Silicon Carbide, 59 FR at 22586-87; see also 
Notice of Final Determination of Sales at Less Than Fair Value: 
Furfuryl Alcohol From the People's Republic of China, 60 FR 22544, 
22544-45 (May 8, 1995). The Department has determined that an analysis 
of de facto control is critical in determining whether respondents are, 
in fact, subject to a degree of governmental control which would 
preclude the Department from assigning separate rates.
    We determine that, for SSJ, Aifudi and all of the SR Applicants 
except Shandong Qilu Plastic Fabric Group Stock Co., Ltd. (``Qilu''), 
the evidence on the record supports a preliminary finding of de facto 
absence of governmental control based on record statements and 
supporting documentation showing the following: (1) Each exporter sets 
its own export prices independent of the government and without the 
approval of a government authority; (2) each exporter retains the 
proceeds from its sales and makes independent decisions regarding 
disposition of profits or financing of losses; (3) each exporter has 
the authority to negotiate and sign contracts and other agreements; and 
(4) each exporter has autonomy from the government regarding the 
selection of management.
    Therefore, the evidence placed on the record of this investigation 
by SSJ, Aifudi and the SR Applicants, with the exception of Qilu, 
demonstrate an absence of de jure and de facto government control with 
respect to each of the exporters' exports of the merchandise under 
investigation, in accordance with the criteria identified in Sparklers 
and Silicon Carbide. As a result, for the purposes of this preliminary 
determination, we have granted a separate company-specific rate to SSJ 
and Aifudi. Additionally, we have granted all the SR Applicants, except 
Qilu as explained below, a weighted-average margin, for the purposes of 
this preliminary determination. Finally, and as discussed previously, 
we granted Polywell a separate company-specific rate because it is 
wholly foreign-owned.

Companies Not Receiving a Separate Rate

    The Department is not granting a separate rate to Qilu because it 
did not fully report all of its ultimate owners, and because its 
financial statements are unreliable. Qilu failed to report all of its 
ultimate owners, and without this information, the Department cannot 
conclude that Qilu operates independently of the government and without 
the approval of a government authority. Further, we determine that 
Qilu's financial statements are unreliable, and because the financial 
statements have a direct impact on determining whether the respondent 
retains the proceeds of its export sales and makes independent 
decisions regarding disposition of profits or financing of losses, 
which is one of the critical elements considered in the analysis of de 
facto control, we conclude that Qilu is not entitled to a separate 
rate. For a detailed discussion of this issue, please see the 
proprietary Memorandum to James C. Doyle, Director, AD/CVD Operations, 
Office 9, from Catherine Bertrand, Senior Case Analyst, AD/CVD 
Operations, Office 9: Separate Rate Memorandum in the Preliminary 
Determination in the Antidumping Duty Investigation of Laminated Woven 
Sacks from the People's Republic of China, dated January 24, 2008.

The PRC-Wide Entity

    The Department has data that indicate there were more exporters of 
laminated woven sacks from the PRC than those indicated in the response 
to our request for Q&V information during the POI. See Respondent 
Selection Memorandum. We issued our request for Q&V information to 41 
potential Chinese exporters of the subject merchandise, in addition to 
BOFT and MOFCOM.\4\ We received 16 Q&V responses filed by the deadline. 
See Respondent Selection Memorandum at 1. We did not receive Q&V 
responses from the remaining companies to which we sent our request for 
Q&V information. See id. Based upon our knowledge of the volume of 
imports of subject merchandise from the PRC, the companies which 
responded to the Q&V questionnaire, SSJ, Aifudi, and the companies that 
submitted separate rate applications do not account for all imports 
into the United States.

[[Page 5806]]

Although all exporters were given an opportunity to provide Q&V 
information, not all exporters provided a response to the Department's 
Q&V letter. Further, the Government of the PRC did not respond to the 
Department's questionnaire. Therefore, the Department determines 
preliminarily that there were PRC exports of the subject merchandise 
during the POI from PRC producers/exporters that did not respond to the 
Department's request for information. We have treated these PRC 
producers/exporters as part of the PRC-wide entity because they did not 
qualify for a separate rate.
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    \4\ For a list of companies to which the Department sent its 
request for Q&V information, see Respondent Selection Memorandum at 
Attachment 1.
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    Section 776(a)(2) of the Act provides that, if an interested party 
(A) withholds information that has been requested by the Department, 
(B) fails to provide such information in a timely manner or in the form 
or manner requested, subject to subsections 782(c)(1) and (e) of the 
Act, (C) significantly impedes a proceeding under the antidumping 
statute, or (D) provides such information but the information cannot be 
verified, the Department shall, subject to subsection 782(i) of the 
Act, use facts otherwise available in reaching the applicable 
determination.
    Information on the record of this investigation indicates that the 
PRC-wide entity was non-responsive. Certain companies did not respond 
to our request for Q&V information and did not respond to the 
Department's questionnaire, and, as previously noted, the Government of 
the PRC did not respond. See Respondent Selection Memorandum at 
Attachment II for a full list of non-responsive companies. As a result, 
pursuant to section 776(a)(2)(A) of the Act, we find that the use of 
facts available is appropriate to determine the PRC-wide rate. See 
Notice of Preliminary Determination of Sales at Less Than Fair Value, 
Affirmative Preliminary Determination of Critical Circumstances and 
Postponement of Final Determination: Certain Frozen Fish Fillets from 
the Socialist Republic of Vietnam, 68 FR 4986, 4991 (January 31, 2003), 
unchanged in Final Determination of Sales at Less Than Fair Value and 
Affirmative Critical Circumstances: Certain Frozen Fish Fillets from 
the Socialist Republic of Vietnam, 68 FR 37116 (June 23, 2003).
    Section 776(b) of the Act provides that, in selecting from among 
the facts otherwise available, the Department may employ an adverse 
inference if an interested party fails to cooperate by not acting to 
the best of its ability to comply with requests for information. See 
Notice of Final Determination of Sales at Less Than Fair Value: Certain 
Cold-Rolled Flat-Rolled Carbon-Quality Steel Products from the Russian 
Federation, 65 FR 5510, 5518 (February 4, 2000); see also Uruguay Round 
Agreements Act Statement of Administrative Action H.R. Doc. No. 103-
316, vol. 1, at 870 (1994) (``SAA''). We find that, because the PRC-
wide entity did not respond to our request for information, it has 
failed to cooperate to the best of its ability. Therefore, the 
Department preliminarily finds that, in selecting from among the facts 
available, an adverse inference is appropriate.
    Further, section 776(b) of the Act authorizes the Department to use 
as adverse facts available (``AFA'') information derived from the 
petition, the final determination from the LTFV investigation, a 
previous administrative review, or any other information placed on the 
record. In selecting a rate for adverse facts available, the Department 
selects a rate that is sufficiently adverse ``as to effectuate the 
statutory purposes of the adverse facts available rule to induce 
respondents to provide the Department with complete and accurate 
information in a timely manner.'' Notice of Final Determination of 
Sales at Less Than Fair Value: Static Random Access Memory 
Semiconductors from Taiwan, 63 FR 8909, 8932 (February 23, 1998). It is 
the Department's practice to select, as AFA, the higher of the (a) 
highest margin alleged in the petition, or (b) the highest calculated 
rate of any respondent in the investigation. See Final Determination of 
Sales at Less Than Fair Value: Certain Flat-Rolled Cold-Rolled Carbon 
Quality Steel Products from the People's Republic of China, 65 FR 34660 
(May 31, 2000) and accompanying Issues and Decision Memorandum, at 
``Facts Available.''
    In the instant investigation, as AFA, we have assigned to the PRC-
wide entity a margin based on the highest calculated rate of the 
mandatory respondents, which in this case is Aifudi. Therefore, we are 
applying the highest calculated rate of the mandatory respondents which 
is 108.09 percent. Section 776(c) of the Act requires that, when the 
Department relies on secondary information rather than on information 
obtained in the course of an investigation as facts available, it must, 
to the extent practicable, corroborate that information from 
independent sources reasonably at its disposal.\5\ Here, we are not 
using secondary information as the basis of the PRC-wide rate, and 
therefore, corroboration is not necessary.
---------------------------------------------------------------------------

    \5\ Secondary information is described in the SAA as 
``information derived from the petition that gave rise to the 
investigation or review, the final determination concerning subject 
merchandise, or any previous review under section 751 concerning the 
subject merchandise.'' See SAA at 870.
---------------------------------------------------------------------------

    Consequently, we are applying 108.09 percent as the single 
antidumping rate to the PRC-wide entity. The PRC-wide rate applies to 
all entries of the merchandise under investigation except for entries 
from SSJ, Aifudi, and the separate rate applicants receiving a separate 
rate.

Margin for the Separate Rate Applicants

    The Department received timely and complete separate rate 
applications from the Separate Rate Applicants, who are all exporters 
of laminated woven sacks from the PRC, which were not selected as 
mandatory respondents in this investigation. Through the evidence in 
their applications, with the exception of Qilu, these companies have 
demonstrated their eligibility for a separate rate, as discussed above. 
Consistent with the Department's practice, as the separate rate, we 
have established a weighted-average margin for the Separate Rates 
Applicants based on the rates we calculated for SSJ and Aifudi, 
excluding any rates that are zero, de minimis, or based entirely on 
AFA. Companies receiving this rate are identified by name in the 
``Suspension of Liquidation'' section of this notice.

Date of Sale

    Section 351.401(i) of the Department's regulations states that, 
``in identifying the date of sale of the subject merchandise or foreign 
like product, the Secretary normally will use the date of invoice, as 
recorded in the exporter or producer's records kept in the normal 
course of business.'' However, the Secretary may use a date other than 
the date of invoice if the Secretary is satisfied that a different date 
better reflects the date on which the exporter or producer establishes 
the material terms of sale. See 19 CFR 351.401(i); see also Allied Tube 
and Conduit Corp. v. United States, 132 F. Supp. 2d 1087, 1090-1093 
(CIT 2001) (``Allied Tube''). The date of sale is generally the date on 
which the parties agree upon all substantive terms of the sale. This 
normally includes the price, quantity, delivery terms and payment 
terms. In order to simplify the determination of date of sale for both 
the respondent and the Department and in accordance with 19 CFR 
351.401(i), the date of sale will normally be the date of the invoice, 
as recorded in the exporter's or producer's records kept in the 
ordinary course of business, unless satisfactory evidence is presented 
that the exporter or producer establishes the material terms of sale on 
some other date. In Allied Tube, the

[[Page 5807]]

Court of International Trade (``CIT'') found that a ``party seeking to 
establish a date of sale other than invoice date bears the burden of 
producing sufficient evidence to `satisfy' the Department that a 
`different date better reflects the date on which the exporter or 
producer establishes the material terms of sale.' '' Allied Tube 132 F. 
Supp. 2d at 1090 (quoting 19 CFR 351.401(i)). In other words, the date 
of the invoice is the presumptive date of sale, although this 
presumption may be overcome. For instance, in Notice of Final 
Determination of Sales at Less Than Fair Value: Polyvinyl Alcohol from 
Taiwan, 61 FR 14064, 14067 (March 29, 1996), the Department used the 
date of the purchase order as the date of sale because the terms of 
sale were established at that point.
    After examining the questionnaire responses and the sales 
documentation that SSJ and Aifudi placed on the record, we 
preliminarily determine that invoice date is the most appropriate date 
of sale for all of SSJ's sales. For Aifudi's constructed export price 
(``CEP'') sales where shipment date preceded invoice date, we used 
shipment date as the date of sale. For Aifudi's CEP sales where 
shipment date was the same as or after the invoice date, we used the 
invoice date as the date of sale. See Aifudi's December 11, 2007, 
supplemental Section C response at Exhibit S2-2. Aifudi did not have 
any EP sales.

Fair Value Comparisons

    To determine whether sales of laminated woven sacks to the United 
States by SSJ and Aifudi were made at less than fair value, we compared 
the export price (``EP'') or CEP, as appropriate, to normal value 
(``NV''), as described in the ``U.S. Price,'' and ``Normal Value'' 
sections of this notice.

U.S. Price

A. EP

    For SSJ, in accordance with section 772(a) of the Act, we based the 
U.S. price on EP because the first sale to an unaffiliated purchaser 
was made prior to importation, and the use of CEP was not otherwise 
warranted. In accordance with section 772(c) of the Act, we calculated 
EP by deducting, where applicable, foreign inland freight, foreign 
brokerage and handling, international freight, and rebates from the 
gross unit price.
    We based these movement expenses on surrogate values where a PRC 
company provided the service and was paid in Renminbi (``RMB'') (see 
``Factors of Production'' section below for further discussion). If 
market-economy service providers, who were paid in a market economy 
currency, provided movement services for over 33 percent of subject 
merchandise shipments, by volume, we based the movement expenses on the 
actual price charged by the service provider. If market-economy service 
providers, who were paid in a market economy currency, provided 
movement services for less than 33 percent of subject merchandise 
shipments, by volume, we calculated the movement expenses by weight-
averaging surrogate values with the actual price charged by the service 
provider. See Antidumping Methodologies: Market Economy Inputs, 
Expected Non-Market Economy Wages, Duty Drawback; and Request for 
Comments, 71 FR 61716, 61717-18 (October 19, 2006) (``Notice for 
Antidumping Methodologies''). For details regarding our EP calculation, 
see Memorandum to the File from Catherine Bertrand, Senior Case 
Analyst: Preliminary Analysis Memorandum for the Antidumping Duty 
Investigation of Laminated Woven Sacks from the People's Republic of 
China: SSJ, dated January 24, 2008 (``SSJ Analysis Memorandum'').

B. CEP

    In accordance with section 772(b) of the Act, for Aifudi's sales we 
based the U.S. price on CEP because the sale to the unaffiliated 
customer was made after importation. In accordance with section 
772(c)(2)(A) of the Act, we calculated CEP by deducting, where 
applicable, the following expenses from the gross unit price charged to 
the first unaffiliated customer in the United States: marine insurance, 
discounts, rebates, inland freight from warehouse to the unaffiliated 
customer, other U.S. transportation expenses, U.S. customs duty, U.S. 
brokerage, credit expenses, advertising expenses, inventory carrying 
costs, billing adjustments, foreign movement expenses, and 
international freight. Further, in accordance with section 772(d)(1) of 
the Act and 19 CFR 351.402(b), where appropriate, we deducted from the 
starting price the following selling expenses associated with economic 
activities occurring in the United States: credit expenses, warranty 
expenses, other direct selling expenses, and indirect selling expenses. 
In addition, pursuant to section 772(d)(3) of the Act, we made an 
adjustment to the starting price for CEP profit. We based movement 
expenses on either surrogate values, actual expenses, or an average of 
the two as explained above in the ``EP'' section of this notice. For 
details regarding our CEP calculations, see Memorandum to the File from 
Javier Barrientos, Senior Case Analyst: Program Analysis for the 
Preliminary Determination of Antidumping Duty Investigation of 
Laminated Woven Sacks from the People's Republic of China: Aifudi, 
dated January 24, 2008 (``Aifudi's Analysis Memorandum'').

Normal Value

    Section 773(c)(1) of the Act provides that the Department shall 
determine the NV using a factors-of-production (``FOP'') methodology if 
the merchandise is exported from an NME and the information does not 
permit the calculation of NV using home-market prices, third-country 
prices, or constructed value under section 773(a) of the Act. The 
Department bases NV on the FOP because the presence of government 
controls on various aspects of non-market economies renders price 
comparisons and the calculation of production costs invalid under the 
Department's normal methodologies.

Factor Valuation Methodology

    In accordance with section 773(c) of the Act, we calculated NV 
based on FOP data reported by respondents for the POI. To calculate NV, 
we multiplied the reported per-unit factor-consumption rates by 
publicly available surrogate values (except as discussed below). In 
selecting the surrogate values, we considered the quality, specificity, 
and contemporaneity of the data. As appropriate, we adjusted input 
prices by including freight costs to make them delivered prices. 
Specifically, we added to the Indian surrogate values a surrogate 
freight cost using the shorter of the reported distance from the 
domestic supplier to the factory or the distance from the nearest 
seaport to the factory where appropriate. This adjustment is in 
accordance with the Court of Appeals for the Federal Circuit's decision 
in Sigma Corp. v. United States, 117 F. 3d 1401, 1407-1408 (Fed. Cir. 
1997). A detailed description of all surrogate values used for 
respondents can be found in the Surrogate Value Memorandum and company-
specific analysis memoranda.
    Additionally, for detailed descriptions of all actual values used, 
see the company-specific analysis memoranda dated January 24, 2008. We 
also made an adjustment to the factors of production for SSJ and Aifudi 
to account for the cost of the printing plates and engraving costs used 
in the production of laminated woven sacks. See SSJ's Analysis 
Memorandum and Aifudi's Analysis Memorandum. Further, we were unable to 
take into account the January 16, 2008,

[[Page 5808]]

supplemental responses of SSJ and Aifudi due to the close proximity to 
the preliminary determination. We will consider these submissions for 
the final determination.
    For this preliminary determination, in accordance with the 
Department's practice, we used data from the Indian Import Statistics 
and other publicly available Indian sources in order to calculate 
surrogate values for the mandatory respondents' FOPs (direct materials, 
energy, and packing materials) and certain movement expenses. In 
selecting the best available information for valuing FOPs in accordance 
with section 773(c)(1) of the Act, the Department's practice is to 
select, to the extent practicable, surrogate values which are non-
export average values, most contemporaneous with the POI, product-
specific, and tax-exclusive. See, e.g., Notice of Preliminary 
Determination of Sales at Less Than Fair Value, Negative Preliminary 
Determination of Critical Circumstances and Postponement of Final 
Determination: Certain Frozen and Canned Warmwater Shrimp From the 
Socialist Republic of Vietnam, 69 FR 42672, 42682 (July 16, 2004), 
unchanged in Final Determination of Sales at Less Than Fair Value: 
Certain Frozen and Canned Warmwater Shrimp From the Socialist Republic 
of Vietnam, 69 FR 71005 (December 8, 2004). The record shows that data 
in the Indian Import Statistics, as well as that from the other Indian 
sources, represent data that are contemporaneous with the POI, product-
specific, and tax-exclusive. In those instances where we could not 
obtain publicly available information contemporaneous to the POI with 
which to value factors, we adjusted the surrogate values using, where 
appropriate, the Indian Wholesale Price Index (``WPI'') as published in 
the International Financial Statistics of the International Monetary 
Fund.
    Furthermore, with regard to the Indian import-based surrogate 
values, we have disregarded import prices that we have reason to 
believe or suspect may be subsidized. We have reason to believe or 
suspect that prices of inputs from Indonesia, South Korea, and Thailand 
may have been subsidized. We have found in other proceedings that these 
countries maintain broadly available, non-industry-specific export 
subsidies and, therefore, it is reasonable to infer that all exports to 
all markets from these countries may be subsidized. See Notice of Final 
Determination of Sales at Less Than Fair Value and Negative Final 
Determination of Critical Circumstances: Certain Color Television 
Receivers From the People's Republic of China, 69 FR 20594 (April 16, 
2004) and accompanying Issues and Decision Memorandum at Comment 7. We 
are also instructed by the legislative history not to conduct a formal 
investigation to ensure that such prices are not subsidized. See 
Omnibus Trade and Competitiveness Act of 1988, Conference Report to 
Accompanying H.R. 3, H.R. Rep. 100-576 at 590 (1988). Rather, Congress 
directed the Department to base its decision on information that is 
available to it at the time it makes its determination. Therefore, we 
have not used prices from these countries either in calculating the 
Indian import-based surrogate values or in calculating market-economy 
input values. In instances where a market-economy input was obtained 
solely from suppliers located in these countries, we used Indian 
import-based surrogate values to value the input. See Final 
Determination of Sales at Less Than Fair Value: Certain Automotive 
Replacement Glass Windshields From The People's Republic of China, 67 
FR 6482 (February 12, 2002), and accompanying Issues and Decision 
Memorandum at Comment 1.
    The Department used the Indian Import Statistics to value the raw 
material and packing material inputs that SSJ and Aifudi reported were 
used to produce the subject merchandise during the POI, except where 
listed below. For direct, indirect, and packing labor, consistent with 
19 CFR 351.408(c)(3), we used the PRC regression-based wage rate as 
reported on Import Administration's home page, Import Library, Expected 
Wages of Selected NME Countries, revised in January 2007, http://
ia.ita.doc.gov/wages/index.html. The source of these wage-rate data on 
the Import Administration's Web site is the Yearbook of Labour 
Statistics 2002, ILO (Geneva: 2002), Chapter 5B: Wages in 
Manufacturing. Because this regression-based wage rate does not 
separate the labor rates into different skill levels or types of labor, 
we have applied the same wage rate to all skill levels and types of 
labor reported by the respondent. See Surrogate Value Memorandum.
    To value factory overhead, selling, general, and administrative 
expenses, and profit, we used the 2006-2007 audited financial 
statements of Mody Plastics Industries Ltd, an Indian producer of 
laminated woven sacks. For a detailed discussion of all surrogate 
values used for this preliminary determination, see Surrogate Values 
Memorandum.

Currency Conversion

    We made currency conversions into U.S. dollars, in accordance with 
section 773A(a) of the Act, based on the exchange rates in effect on 
the dates of the U.S. sales as certified by the Federal Reserve Bank.

Critical Circumstances

    On November 2, 2007, Petitioners alleged that there is a reasonable 
basis to believe or suspect critical circumstances exist with respect 
to the antidumping investigation of laminated woven sacks from the PRC. 
On November 16, 2007, and November 19, 2007,\6\ SSJ and Aifudi, 
respectively, submitted information on their exports of laminated woven 
sacks from January 2005 through October 2007 as requested by the 
Department (collectively, ``mandatory respondents'') (see mandatory 
respondents' December 16, 2007, and December 19, 2007, Critical 
Circumstances Questionnaire responses (``CCQR'')).\7\ In accordance 
with 19 CFR 351.206(c)(2)(i), because Petitioners submitted critical 
circumstances allegations more than 20 days before the scheduled date 
of the preliminary determination, the Department must issue preliminary 
critical circumstances determinations not later than the date of the 
preliminary determination.
---------------------------------------------------------------------------

    \6\ A revision was submitted on November 21, 2007.
    \7\ On November 19, 2007, the Department received monthly 
shipment data from Shandong Qilu Plastic Fabric Group Stock Co., Ltd 
(``Qilu''), a separate rate applicant in the instant investigation, 
even though the Department did not issue Qilu a request for 
information for monthly shipment data. Because the Department did 
not request/solicit information regarding monthly shipment data from 
Qilu, the Department rejected Qilu's November 19, 2007, submission 
as unsolicited factual information pursuant to section 
351.302(d)(1)(ii) of the Department's regulations. See Letter from 
Alex Villanueva, Program Manager IA, to Shandong Qilu Plastic Fabric 
Group Stock Co., Ltd, dated December 5, 2007.
---------------------------------------------------------------------------

    Section 733(e)(1) of the Act provides that the Department will 
preliminarily determine that critical circumstances exist if there is a 
reasonable basis to believe or suspect that: (A)(i) There is a history 
of dumping and material injury by reason of dumped imports in the 
United States or elsewhere of the subject merchandise; or (ii) the 
person by whom, or for whose account, the merchandise was imported knew 
or should have known that the exporter was selling the subject 
merchandise at less than its fair value and that there was likely to be 
material injury by reason of such sales; and (B) there have been 
massive imports of the subject merchandise over a relatively short 
period. Section 351.206(h)(1) of the Department's regulations provides 
that,

[[Page 5809]]

in determining whether imports of the subject merchandise have been 
``massive,'' the Department normally will examine: (i) The volume and 
value of the imports; (ii) seasonal trends; and (iii) the share of 
domestic consumption accounted for by the imports. In addition, section 
351.206(h)(2) of the Department's regulations provides that an increase 
in imports of 15 percent during the ``relatively short period'' of time 
may be considered ``massive.'' Section 351.206(i) of the Department's 
regulations defines ``relatively short period'' as normally being the 
period beginning on the date the proceeding begins (i.e., the date the 
petition is filed) and ending at least three months later (i.e., the 
comparison period). The comparison period is normally compared to the 
three months prior to the filing of the petition (i.e., the base 
period). The regulations also provide, however, that if the Department 
finds that importers, exporters, or producers had reason to believe, at 
some time prior to the beginning of the proceeding, that a proceeding 
was likely, the Department may establish the base and comparison 
periods based on the earlier date. See 19 CFR 351.206(i).
    In determining whether the above statutory criteria have been 
satisfied, we examined: (1) The evidence presented in Petitioners' 
November 2, 2007, submission; (2) new evidence obtained since the 
initiation of the LTFV investigation (i.e., additional import 
statistics released by the U.S. Customs and Border Protection); and (3) 
additional information obtained from SSJ and Aifudi (see CCQR).
    In accordance with section 733(e)(1)(A)(ii) of the Act, to 
determine whether importers of laminated woven sacks from the PRC knew 
or should have known that the exporter was selling the subject 
merchandise at less than its fair value and that there was likely to be 
material injury by reason of such sales, the Department must rely on 
the facts before it at the time the determination is made. The 
Department generally bases its decision with respect to knowledge on 
the margins calculated in the preliminary antidumping duty 
determination and the ITC preliminary injury determination.
    The Department normally considers margins of 25 percent or more for 
export price EP sales and 15 percent or more for CEP sales sufficient 
to impute importer knowledge of sales at LTFV. See, e.g., Carbon and 
Alloy Steel Wire Rod From Germany, Mexico, Moldova, Trinidad and 
Tobago, and Ukraine: Notice of Preliminary Determination of Critical 
Circumstances, 67 FR 6224, 6225 (February 11, 2002). In this 
preliminary determination, SSJ has a margin of 63.89 percent and Aifudi 
has a margin of 108.09 percent. The separate rate companies which have 
preliminarily received a separate rate have a margin of 87.60 percent, 
based on a weighted-average of the margins of the mandatory 
respondents. The PRC-wide entity has a margin of 108.09 percent. We 
find that the antidumping duty preliminary margins for Aifudi, SSJ, the 
separate rate companies, and the PRC-wide entity support a finding that 
there is a reasonable basis to believe or suspect that the importers 
knew or should have known that there was likely to be material injury 
by reason of sales at LTFV of laminated woven sacks from the PRC from 
these respondents.
    In determining whether there is a reasonable basis to believe or 
suspect that an importer knew or should have known that there was 
likely to be material injury by reason of dumped imports, consistent 
with section 733(e)(1)(A)(ii) of the Act, the Department also looks to 
the preliminary injury determination of the ITC. See, e.g., Lemon Juice 
from Argentina: Preliminary Determination of Sales at Less than Fair 
Value and Affirmative Preliminary Determination of Critical 
Circumstances, 72 FR 20820, 20828 (April 26, 2007). On August 14, 2007, 
the ITC issued a preliminary affirmative determination for laminated 
woven sacks from the PRC. See ITC.

Preliminary Determination

    In accordance with section 733(e)(1)(B) of the Act, the Department 
must determine whether there have been massive imports of the subject 
merchandise over a relatively short period. Pursuant to 19 CFR 
351.206(h), we will not consider imports to be massive unless imports 
in the comparison period have increased by at least 15 percent over 
imports in the base period. As discussed above, the Department normally 
determines the comparison period for massive imports based on the 
filing date of the petition.
    Based on the June 28, 2007, filing date, we have determined that 
July 2007 is the month in which importers, exporters or producers knew 
or should have known an antidumping duty investigation was likely. 
Additionally, we have used a period of four months as the period for 
comparison in preliminarily determining whether imports of the subject 
merchandise have been massive. We believe that a four-month period is 
most appropriate as the basis for analysis because using four months 
captures all data available at this time, based on July 2007 as the 
beginning of the comparison period. Additionally, a four-month period 
properly reflects the ``relatively short period'' set forth in the 
statute for determining whether imports have been massive. See section 
733(e)(1)(B) of the Act and 19 CFR 351.206(i). It is our practice to 
base the critical circumstances analysis on all available data, using 
base and comparison periods of no less than three months. See Notice of 
Preliminary Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Affirmative Preliminary 
Determination of Critical Circumstances: Certain Frozen and Canned 
Warmwater Shrimp from India, 69 FR 47111 (August 4, 2004) unchanged in 
Notice of Final Determination of Sales at Less Than Fair Value and 
Negative Final Determination of Critical Circumstances: Certain Frozen 
and Canned Warmwater Shrimp From India, 69 FR 76916 (December 23, 
2004); see also Notice of Final Determination of Sales at Less Than 
Fair Value and Negative Final Determination of Critical Circumstances: 
Certain Color Television Receivers From the People's Republic of China, 
69 FR 20594 (Apr. 16, 2004), and accompanying Issues and Decision 
Memorandum at Comment 3. Therefore, we have used all available data in 
our critical-circumstances analysis for the preliminary determination. 
Therefore, in applying the four-month period, we used a comparison 
period of March 2007 to June 2007, and a base period of July 2007 to 
October 2007.

Mandatory Respondents

    The Department used the shipment data of Aifudi and SSJ to examine 
the relevant comparison period of four months before July 2007, i.e., 
March-June 2007, and four months following that period, i.e., July-
October 2007. When we compared these companies' import data during the 
base period with the comparison period, Aifudi had an increased volume 
of exports over the base period of greater than 15 percent while SSJ 
did not and, consequently, we only find Aifudi's imports to be massive. 
See Memorandum to the File from Javier Barrientos, Senior Case Analyst: 
Critical Circumstances Data for the Preliminary Determination of 
Antidumping Duty Investigation of Laminated Woven Sacks from the 
People's Republic of China, dated January 24, 2008, at Attachment I 
(``CC MTF'') for the exact percentage changes.

Separate Rate Companies

    For the separate rate companies, we did not request the monthly 
shipment information necessary to determine if there were massive 
imports. As the basis

[[Page 5810]]

to measure whether massive imports existed for purposes of critical 
circumstances, we relied on the experience of the mandatory respondents 
receiving a separate rate. When we compared the weight-averaged import 
data during the base period with the comparison period from the 
mandatory respondents, we found that the weight-averaged volume of 
imports of laminated woven sacks for the separate rate companies did 
have an increased volume of exports over the base period of greater 
than 15 percent. Therefore, we find the imports of the separate rate 
companies to be massive. See CC MTF at Attachment I for the exact 
percentage changes.

PRC-Wide Entity

    Because the PRC-wide entity failed to respond to the Department's 
antidumping questionnaire, we were unable to obtain shipment data from 
the PRC-wide entity for purposes of our critical circumstances 
analysis, and there is no information on the record with respect to its 
export volumes. We relied on the ITC Dataweb site (http://
databweb.usitc.gov) to determine whether there were imports of 
laminated woven sacks from the PRC during the base and the comparison 
periods not accounted for in the shipment data for the mandatory 
respondents. We found that there were such imports and we were able to 
rely on such data to quantify the imports attributed to the PRC-wide 
entity because the HTSUS article codes covering imported laminated 
woven sacks from the PRC contain data for subject merchandise, allowing 
us to segregate the mandatory respondents and separate rate companies' 
data from the PRC-wide import data.
    We have deducted the mandatory respondents' data from the China-
wide import data as to avoid possibly double-counting. When we compared 
the PRC entity import data during the adjusted base period with the 
adjusted comparison period, we found that the volume of imports of 
laminated woven sacks for the PRC-wide entity during the comparison 
period was not greater than 15 percent over the base period. The total 
import volume difference is -15.95 percent. See CC MTF at Attachment I. 
Consequently, we find that the PRC-wide entity did not have an 
increased volume of exports over the base period of greater than 15 
percent, and therefore, we do not find their imports to be massive.
    In addition, as a result of the ITC's affirmative preliminary 
determination in the instant LTFV investigation, the Department 
preliminarily finds there is a reasonable basis to believe or suspect 
that importers knew or should have known that there was likely to be 
material injury by reason of dumped imports, consistent with section 
733(e)(1)(A)(ii) of the Act. See ITC Preliminary Determination. As 
discussed above, the volume of imports of laminated woven sacks from 
the PRC from Aifudi and the separate rate companies was massive within 
the meaning of section 733(e)(1)(B) of the Act. The volume of imports 
of laminated woven sacks from the PRC for SSJ and the PRC-wide entity, 
however, were each below 15 percent, and thus not massive within the 
meaning of section 733(e)(1)(B) of the Act. As a result, we 
preliminarily find that critical circumstances exist for Aifudi and the 
separate rate companies, but do not exist for imports of laminated 
woven sacks for SSJ and the PRC-wide entity.
    We will make a final determination concerning critical 
circumstances for all producers/exporters of subject merchandise from 
the PRC when we make our final dumping determination in this 
investigation.

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information upon which we will rely in making our final 
determination.

Combination Rates

    In the Initiation Notice, the Department stated that it would 
calculate combination rates for certain respondents that are eligible 
for a separate rate in this investigation. See Initiation Notice, 72 FR 
40833, 40837. This change in practice is described in Policy Bulletin 
05.1, available at http://ia.ita.doc.gov/.

Preliminary Determination

    The preliminary weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                       Weight-average E
           Exporter                   Producer         margin (percent)
------------------------------------------------------------------------
SHANGDONG SHOUGUANG            SHANGDONG SHOUGUANG                 63.89
 JIANYUANCHUN CO., LTD./        JIANYUANCHUN CO.,
 SHANDONG LONGXING PLASTIC      LTD./SHANDONG
 PACK CO. LTD.                  LONGXING PLASTIC
                                PACK CO. LTD.
ZIBO AIFUDI PLASTIC PACKAGING  ZIBO AIFUDI PLASTIC                108.09
 CO., LTD.                      PACKAGING CO., LTD.
POLYWELL INDUSTRIAL CO.,       POLYWELL PLASTIC                    87.60
 a.k.a. FIRST WAY (H.K.)        PRODUCT FACTORY.
 LIMITED.
ZIBO LINZI WORUN PACKING       ZIBO LINZI WORUN                    87.60
 PRODUCT CO., LTD.              PACKING PRODUCT CO.,
                                LTD.
SHANDONG QIKAI PLASTICS        SHANDONG QIKAI                      87.60
 PRODUCT CO., LTD.              PLASTICS PRODUCT
                                CO., LTD.
CHANGLE BAODU PLASTIC CO. LTD  CHANGLE BAODU PLASTIC               87.60
                                CO. LTD.
ZIBO LINZI SHUAIQIANG          ZIBO LINZI SHUAIQIANG               87.60
 PLASTICS CO. LTD.              PLASTICS CO. LTD.
ZIBO LINZI QITIANLI PLASTIC    ZIBO LINZI QITIANLI                 87.60
 FABRIC CO. LTD.                PLASTIC FABRIC CO.
                                LTD.
SHANDONG YOULIAN CO. LTD.....  SHANDONG YOULIAN CO.                87.60
                                LTD.
ZIBO LINZI LUITONG PLASTIC     ZIBO LINZI LUITONG                  87.60
 FABRIC CO. LTD.                PLASTIC FABRIC CO.
                                LTD.
WENZHOU HOTSON PLASTICS CO.    WENZHOU HOTSON                      87.60
 LTD.                           PLASTICS CO. LTD.
JIANGSU HOTSON PLASTICS CO.    JIANGSU HOTSON                      87.60
 LTD.                           PLASTICS CO. LTD.
CANGNAN COLOR MAKE THE BAG...  CANGNAN COLOR MAKE                  87.60
                                THE BAG.
ZIBO QIGAO PLASTIC CEMENT CO.  ZIBO QIGAO PLASTIC                  87.60
 LTD.                           CEMENT CO. LTD.
PRC-WIDE RATE................  .....................              108.09
------------------------------------------------------------------------

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).

Suspension of Liquidation

    In accordance with section 733(d) of the Act, we will instruct U.S. 
Customs and Border Protection (``CBP'') to suspend liquidation of all 
entries of laminated woven sacks from the PRC as described in the 
``Scope of Investigation'' section, entered, or withdrawn from 
warehouse, for consumption from SSJ and the PRC-wide entity on or after 
the date of publication of this notice in the Federal

[[Page 5811]]

Register. We will instruct CBP to require a cash deposit or the posting 
of a bond equal to the weighted-average amount by which the normal 
value exceeds U.S. price, as indicated above. For Aifudi, and the 
companies receiving a separate rate, we will direct CBP to suspend 
liquidation of any entries of laminated woven sacks from the PRC as 
described in the ``Scope of Investigation'' section, that are entered, 
or withdrawn from warehouse, for consumption on or after 90 days prior 
to the date of publication in the Federal Register of our preliminary 
determination. The suspension of liquidation will remain in effect 
until further notice.

International Trade Commission Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our preliminary affirmative determination of sales at less than 
fair value. Section 735(b)(2) of the Act requires the ITC to make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of laminated woven sacks, or sales (or the likelihood 
of sales) for importation, of the subject merchandise within 45 days of 
our final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Import Administration no later than seven days 
after the date the final verification report is issued in this 
proceeding and rebuttal briefs limited to issues raised in case briefs 
no later than five days after the deadline date for case briefs. A list 
of authorities used and an executive summary of issues should accompany 
any briefs submitted to the Department. This summary should be limited 
to five pages total, including footnotes. Parties are also requested to 
submit an electronic version of their case and rebuttal briefs.
    In accordance with section 774 of the Act, and if requested, we 
will hold a public hearing, to afford interested parties an opportunity 
to comment on arguments raised in case or rebuttal briefs. If a request 
for a hearing is made, we intend to hold the hearing three days after 
the deadline of submission of rebuttal briefs at the U.S. Department of 
Commerce, 14th Street and Constitution Ave., NW., Washington, DC 20230, 
at a time and location to be determined. Parties should confirm by 
telephone the date, time, and location of the hearing two days before 
the scheduled date.
    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Import Administration, U.S. Department of Commerce, Room 
1870, within 30 days after the date of publication of this notice. See 
19 CFR 351.310(c). Requests should contain the party's name, address, 
and telephone number, the number of participants, and a list of the 
issues to be discussed. At the hearing, each party may make an 
affirmative presentation only on issues raised in that party's case 
brief and may make rebuttal presentations only on arguments included in 
that party's rebuttal brief.

Postponement of Final Determination and Extension of Provisional 
Measures

    Pursuant to section 735(a)(2) of the Act, on January 11, 2008, 
Aifudi requested that in the event of an affirmative preliminary 
determination in this investigation, the Department postpone its final 
determination by 60 days. At the same time, Aifudi requested that the 
Department extend the application of the provisional measures 
prescribed under 19 CFR 351.210(e)(2) from a four month period to a six 
month period. In accordance with section 733(d) of the Act and 19 CFR 
351.210(b), because (1) our preliminary determination is affirmative, 
(2) the requesting exporter accounts for a significant proportion of 
exports of the subject merchandise, and (3) no compelling reasons for 
denial exist, we are granting the request and are postponing the final 
determination until no later than 135 days after the publication of 
this notice in the Federal Register. Suspension of liquidation will be 
extended accordingly.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act.

    Dated: January 24, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-1755 Filed 1-30-08; 8:45 am]

BILLING CODE 3510-DS-P