[Federal Register Volume 75, Number 38 (Friday, February 26, 2010)]
[Notices]
[Pages 8925-8926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4072]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-059]


Pressure Sensitive Plastic Tape from Italy: Preliminary Results 
of Antidumping Duty Changed Circumstances Review

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

EFFECTIVE DATE: February 26, 2010.
SUMMARY: The Department of Commerce (the Department) is conducting a 
changed circumstances review of the antidumping duty finding on 
pressure sensitive plastic tape from Italy pursuant to section 751(b) 
of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.216 and 
351.221(c)(3). We preliminarily determine that Evotape S.p.A was the 
successor-in-interest to Tyco Adhesives Italia S.p.A. (Tyco), and that 
Evotape Packaging S.r.l. (Evotape Packaging) and Evotape Masking S.r.l. 
(Evotape Masking) are both successors-in-interest to Evotape S.p.A for 
purposes of determining antidumping liability. Interested parties are 
invited to comment on these preliminary results.

FOR FURTHER INFORMATION CONTACT: Terre Keaton Stefanova or Rebecca 
Trainor, AD/CVD Operations, Office 2, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-1280 and (202) 482-4007, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 27, 2009, Evotape Packaging requested that the Department 
conduct an expedited changed circumstances review to determine that it 
is the successor-in-interest to Tyco for purposes of determining 
antidumping liability.\1\ Evotape Packaging provided additional 
information at the Department's request on August 28, 2009. On 
September 10, 2009, the Department initiated a changed circumstances 
review but did not expedite the review, as requested by Evotape 
Packaging, because questions remained as to the factual claims forming 
the basis of the change circumstances review request. See Pressure 
Sensitive Plastic Tape from Italy: Notice of Initiation of Antidumping 
Duty Changed Circumstances Review, 74 FR 47555 (September 16, 2009). On 
October 26, 2009, the Department placed on the record a memorandum 
regarding corrections to the scope language contained in the initiation 
notice. (See October 26, 2009, Memorandum to The File regarding 
``Corrections to Scope Language''). On November 3, 2009, the Department 
requested additional information from Evotape Packaging, and on 
November 24, 2009, Evotape Packaging submitted its response to the 
Department's information request.
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    \1\ The cash deposit rate currently applicable to Tyco is zero 
percent. The all-others rate is 10 percent.
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Scope of the Finding

    The products covered by the finding are shipments of pressure 
sensitive plastic tape measuring over one and three-eighths inches in 
width and not exceeding four mils in thickness, currently classifiable 
under subheadings 3919.10.20 and 3919.90.50 of the Harmonized Tariff 
Schedule of the United States (HTSUS). The HTSUS subheadings are 
provided for convenience and for customs purposes. The written 
description remains dispositive.

Successor-in-Interest Determination

    In making a successor-in-interest determination, the Department 
typically examines several factors including, but not limited to: (1) 
management; (2) production facilities; (3) supplier relationships; and 
(4) customer base. See, e.g., Notice of Final Results of Changed 
Circumstances Review: Polychloroprene Rubber from Japan, 69 FR 67890 
(November 22, 2004) (Polychloroprene Rubber from Japan) citing; Brass 
Sheet and Strip from Canada; Final Results of Antidumping Duty 
Administrative Review, 57 FR 20460 (May 13, 1992) (Canadian Brass); 
and, Certain Circular Welded Carbon Steel Pipes and Tubes from Taiwan: 
Initiation of Antidumping Duty Changed Circumstances Review, 70 FR 
17063 (April 4, 2005). While no single factor or combination of these 
factors will necessarily be dispositive, the Department will generally 
consider the new company to be the successor to the previous company if 
its resulting operation is not materially dissimilar to that of its 
predecessor. See, e.g., Polychloroprene Rubber from Japan; Industrial 
Phosphoric Acid from Israel: Final Results of Changed Circumstances 
Review, 59 FR 6944 (February 14, 1994); Canadian Brass; Certain Frozen 
Warmwater Shrimp From Thailand: Preliminary Results of Antidumping Duty 
Changed Circumstances Review and Notice of Intent to Revoke in Part 74 
FR 39042 (August 5, 2009); (unchanged in final results Certain Frozen 
Warmwater Shrimp From Thailand: Final Results of Antidumping Duty 
Changed Circumstances Review and Notice of Revocation in Part 74 FR 
52452 (October 13, 2009)). Thus, if the evidence demonstrates that, 
with respect to the production and sale of the subject merchandise, the 
new company operates as the same business entity as the former company, 
the Department will generally accord the new company the same 
antidumping duty treatment as its predecessor.

Preliminary Results

    In its request for a changed circumstances review, Evotape 
Packaging explained that, in May 2005, its parent company, Evotape 
S.p.A, acquired Tyco's business and assets, which included two 
production units (packaging and masking tape) and related sales 
offices. Subsequently, in December 2007, Evotape S.p.A went through a 
restructuring that created two wholly-owned subsidiaries (i.e., Evotape 
Packaging and Evotape Masking S.r.l. (Evotape Masking)) using the 
assets and business of the two production units. In response to the 
Department's questions concerning the corporate restructuring, Evotape 
Packaging stated that Evotape Masking produces two in-scope products, 
but does not ship or sell these products to the United States, and has 
no future plans to do so (see August 28, 2009, and November 24, 2009, 
responses).\2\
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    \2\ Notwithstanding this fact and Evotape Packaging's original 
changed circumstances review request to determine that only it is 
the successor-in-interest to Tyco, Evotape Packaging acknowledged in 
its November 24, 2009, response that it may be appropriate to 
consider both Evotape Packaging and Evotape Masking as successors-
in-interest to Tyco because they are both wholly-owned subsidiaries 
of Evotape S.p.A.
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    Based on the facts on the record surrounding the acquisition and

[[Page 8926]]

subsequent corporate restructuring described above, and in accordance 
with 19 CFR 351.221(c)(3)(i), we have made two preliminary successor-
in-interest determinations.

1. Evotape S.p.A Was the Successor-In-Interest to Tyco

    Our first preliminary successor-in-interest determination is that 
Evotape S.p.A was the successor-in-interest to Tyco. Evotape Packaging 
submitted documentation to demonstrate that Evotape S.p.A acquired Tyco 
in May 2005 (see Evotape Packaging's July 27, 2009, submission at 
Exhibit 1). Evotape Packaging also provided information pertaining to 
changes in management, production, suppliers, and customers that 
occurred after Evotape S.p.A. acquired Tyco. The information indicated 
that, except for three changes in management and some minor changes in 
customers, the company's business operations had not been substantially 
affected by the change in ownership (see November 24, 2009, response). 
Thus, we preliminary find that in May 2005, Evotape S.p.A. became the 
successor-in-interest to Tyco, because the changes in management and 
customers that took place after Tyco's acquisition by Evotape S.p.A. 
did not alter the production or business operations of the company.

2. Evotape Packaging and Evotape Masking are Successors-In-Interest to 
Evotape S.p.A

    For our second preliminary successor-in-interest determination, we 
find that both Evotape Packaging and Evotape Masking are successors-in-
interest to Evotape S.p.A. Evotape Packaging submitted copies of the 
documents that established Evotape Packaging and Evotape Masking as 
separate wholly-owned subsidiaries of Evotape S.p.A in December 2007 
(see November 24, 2009, response at Exhibit 1). Evotape Packaging also 
provided information indicating that, while some minor changes in 
business operations occurred after the companies' transition from 
production units to formal companies, they continued to operate 
essentially as they did as production units under Evotape S.p.A. 
Specifically, the restructuring resulted in the reallocation of duties 
among managers, and a slight reduction in the number of employees at 
both companies. The companies also experienced slight changes to their 
supplier and customer lists, but maintained their top supplier and 
customer relationships. Evotape Packaging added two products to its 
product mix, but the two companies continued to use the same separate 
production facilities that they used as production units under Evotape 
S.p.A. (see November 24, 2009, response). Moreover, the ownership of 
the two entities remains essentially the same as both companies are 
wholly-owned subsidiaries of Evotape S.p.A. Because both companies 
continue to operate essentially as they did as production units of 
Evotape S.p.A., after the December 2007, restructuring, irrespective of 
the minor changes described above, we preliminary find that in December 
2007, both Evotape Packaging and Evotape Masking became the successors-
in-interest to Evotape S.p.A. for purposes of determining antidumping 
liability.
     In conclusion, as a result of both of these determinations, we 
preliminary find that Evotape Packaging and Evotape Masking should 
receive Tyco's antidumping duty cash deposit rate with respect to the 
subject merchandise (i.e., 0.00 percent). If the above preliminary 
results are affirmed in the Department's final results, the cash 
deposit rate resulting from this changed circumstances review will 
apply to all entries of the subject merchandise from Evotape Packaging 
and Evotape Masking entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the final results of 
this changed circumstances review. See Granular Polytetrafluoroethylene 
Resin from Italy Final Results of Antidumping Duty Changed 
Circumstances Review, 68 FR 25327 (May 12, 2003).

Public Comment

    Interested parties are invited to comment on these preliminary 
results. Written comments may be submitted no later than 14 days after 
the date of publication of these preliminary results. Rebuttals to 
written comments, limited to issues raised in such comments, may be 
filed no later than 21 days after the date of publication of this 
notice. All written comments shall be submitted in accordance with 19 
CFR 351.303. Any interested party may request a hearing within 14 days 
of publication of this notice. Any hearing, if requested, will be held 
no later than 30 days after the date of publication of this notice, or 
the first workday thereafter. Persons interested in attending the 
hearing, if one is requested, should contact the Department for the 
date and time of hearing. In accordance with 19 CFR 351.216(e), the 
Department will issue the final results of this antidumping duty 
changed circumstances review no later than 270 days after the date on 
which this review was initiated, or within 45 days if all parties agree 
to our preliminary results.
    During the course of this antidumping duty changed circumstances 
review, cash deposit requirements for the subject merchandise produced 
and exported by Evotape Packaging and Evotape Masking will continue to 
be the all-others rate established in the investigation. See Pressure 
Sensitive Plastic Tape From Italy; Determination of Injury or 
Likelihood Thereof, 42 FR 44853 (September 7, 1977). The cash deposit 
rate requirement for Evotape Packaging and Evotape Masking will be 
altered, if warranted, pursuant only to the final results of this 
review.
    We are issuing and publishing these preliminary results and notice 
in accordance with sections 751(b)(1) and 777(i)(1) and (2) of the Act 
and 19 CFR 351.216 and 351.221(c)(3).

    Dated: February 22, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-4072 Filed 2-25-10; 8:45 am]
BILLING CODE 3510-DS-S