[Federal Register Volume 74, Number 60 (Tuesday, March 31, 2009)]
[Notices]
[Pages 14519-14521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-7232]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-703]


Granular Polytetrafluoroethylene Resin From Italy: Final Results 
of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On September 22, 2008, the Department of Commerce published 
the preliminary results of the administrative review of the antidumping 
duty order on granular polytetrafluoroethylene resin from Italy, 
covering the period August 1, 2006, through July 31, 2007. We invited 
interested parties to comment on these preliminary results. Based on 
our analysis of the comments received and the results of verification, 
we have made changes to the margin calculation. The final weighted-
average dumping margin for the reviewed firm is listed below in the 
section entitled ``Final Results of Review.''

EFFECTIVE DATE: March 31, 2009.

FOR FURTHER INFORMATION CONTACT: Yasmin Nair or Nancy Decker, at (202) 
482-3813 or (202) 482-0196, respectively; AD/CVD Operations, Office 1, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14\th\ Street & Constitution Avenue, NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On September 22, 2008, the Department of Commerce (``Department'') 
published the preliminary results of its administrative review of the 
antidumping duty order on granular polytetrafluoroethylene (``PTFE'') 
resin from Italy. See Amended Notice of Preliminary Results of 
Antidumping Duty Administrative Review: Granular 
Polytetrafluoroethylene Resin From Italy, 73 FR 54557 (September 22, 
2008) (``Preliminary Results'').
    From October 13 through October 17, 2008, we verified Solvay 
Solexis S.p.A.'s sales response. We issued a report for this 
verification on December 11, 2008. See Memorandum from Shane Subler and 
Alicia Winston, International Trade Compliance Analysts, to Susan H. 
Kuhbach, Director, Office 1, ``Verification of the Sales Response of 
Solvay Solexis S.p.A. in the Antidumping Duty Administrative Review of 
Granular Polytetrafluoroethylene Resin from Italy,'' (December 11, 
2008) (``Home Market Verification Report''). From November 13 through 
November 19, 2008, we verified Solvay Solexis S.p.A.'s cost response. 
We issued a report for this verification on January 6, 2009. See 
Memorandum from Ernest Z. Gziryan, Senior Accountant, to Neal M. 
Halper, Director, Office of Accounting, ``Verification of the Cost of 
Production and Constructed Value Data Submitted by Solvay Solexis 
S.p.A. in the Antidumping Duty Administrative Review of Granular 
Polytetrafluoroethylene (``PTFE'') Resin from Italy,'' (January 6, 
2009) (``Cost Verification Report''). On October 27 and 28, 2008, we 
verified Solvay Solexis, Incorporated's constructed export price 
(``CEP'') sales response. See Memorandum from Shane Subler and Alicia 
Winston, International Trade Compliance Analysts, to Susan H. Kuhbach, 
Director, Office 1, ``Verification of the Sales Response of Solvay 
Solexis, Inc. in the Antidumping Duty Administrative Review of Granular 
Polytetrafluoroethylene Resin from Italy,'' (January 9, 2009) (``CEP 
Verification Report''). In this notice, we refer to the three reports 
collectively as the ``Verification Reports.''
    We invited parties to comment on the Preliminary Results. On 
January 26, 2009, we received case briefs from E.I. DuPont de Nemours & 
Company (``the petitioner'') and Solvay Solexis, Inc. and Solvay 
Solexis S.p.A. (collectively, ``Solvay''). On January 29, 2009, we 
received rebuttal briefs from the petitioner and Solvay. On January 26, 
2009, Solvay requested a public hearing; the hearing was held at the 
Department of Commerce on February 2, 2009. A record of the February 2, 
2009, hearing is available in the Central Records Unit (``CRU''), Room 
1117 of the main Department building.
    On January 9, 2009, we extended the time limit for the final 
results of this administrative review, pursuant to section 751(a)(3)(A) 
of the Tariff Act of 1930, as amended (``the Act''). See Granular 
Polytetrafluoroethylene Resin From Italy: Extension of Time Limit for 
the Final Results of the Antidumping Duty Administrative Review, 74 FR 
885 (January 9, 2009).

Scope of the Order

    The product covered by the order is granular PTFE resin, filled or 
unfilled. The order also covers PTFE wet raw polymer exported from 
Italy to the United States. See Granular Polytetrafluoroethylene Resin 
From Italy; Final Affirmative Determination of Circumvention of 
Antidumping Duty Order, 58 FR 26100 (April 30, 1993). The order 
excludes PTFE dispersions in water and fine powders. During the period 
covered by this review, such merchandise was classified under item 
number 3904.61.00 of the Harmonized Tariff Schedule of the United 
States (``HTSUS''). We are providing this HTSUS number for convenience 
and U.S. Customs and Border Protection (``CBP'') purposes only. The 
written description of the scope remains dispositive.

Cost of Production

    Consistent with the Preliminary Results, we disregarded home-market 
sales by Solvay that failed the cost-of-production test.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the ``Issues and Decision 
Memorandum'' (``Decision Memorandum'') from John M. Andersen, Acting 
Deputy Assistant Secretary for Import Administration, to Ronald K. 
Lorentzen, Acting Assistant Secretary for Import Administration, dated 
March 23, 2009, which is hereby adopted by this notice. Attached to 
this notice, as an appendix, is a list of the issues which parties have 
raised and to which we have responded in the Decision Memorandum. 
Parties can find a complete discussion of all issues raised in this 
review and the corresponding recommendations in this memorandum, which 
is on file in the CRU, Room 1117 of the main Department building. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Import Administration website at http://ia.ita.doc.gov/frn/index.html. The paper copy and the electronic version of the 
Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    First, we revised the calculations from the Preliminary Results to 
account for minor corrections that Solvay submitted during the home 
market and CEP sales verifications. We revised the following fields in 
Solvay's home market sales database: packing and indirect selling 
expenses. We revised the following fields in Solvay's U.S. market sales

[[Page 14520]]

database: U.S. inland freight from the warehouse to the customer, 
indirect selling expenses incurred in the United States, U.S. 
warehousing, U.S. brokerage, and packing. For details on the minor 
corrections, see page 2 and Exhibit 1 of the Home Market Verification 
Report; see also page 2 and Exhibits 1a-1d of the CEP Verification 
Report.
    Second, we made additional changes to the Preliminary Results 
calculations to account for other findings from the sales 
verifications. First, we removed two sales to Canada from Solvay's U.S. 
sales database. See page 2 of the CEP Verification Report. Second, we 
found that Solvay used interest rates on loans from affiliated 
companies to calculate imputed credit and inventory carrying expenses 
for home market sales and U.S. market sales. See page 2 of the Home 
Market Verification Report; see also page 2 of the CEP Verification 
Report. Instead, we used interest rates published by the Bank of Italy 
for loans to non-financial corporations as an interest rate for the 
home market rather than Solvay's rate from affiliated companies. For 
the U.S. market, we used short-term interest rates published by the 
Federal Reserve for commercial and industrial loans as a surrogate 
interest rate. For both markets, we used a single weighted-average of 
the monthly interest rates that correspond to the period of review 
(``POR'').
    Third, based on our analysis of comments from interested parties, 
we made the following changes to the cost of production calculation. 
First, we used Solvay's fiscal year 2007 financial statements to 
calculate general and administrative expenses (``G&A'') and financial 
expenses. Second, we calculated the short-term portion of Solvay's 
total interest income based on the ratio of current assets to the total 
interest income-producing assets of the parent company, Solvay S.A. We 
have addressed these two issues in the public decision memorandum that 
accompanies this notice. Finally, we made additional revisions to the 
calculation of G&A expenses and the total cost of manufacturing. 
Comments from parties on these issues contain business proprietary 
information, so we have addressed the comments in the Memorandum to the 
File from Ernest Gziryan to Neal M. Halper, ``Cost of Production and 
Constructed Value Calculation Adjustments for the Final Results Solvay-
Solexis S.p.A.,'' (March 23, 2009).
    We have explained the incorporation of all of the changes into the 
calculation programs in the Memorandum to the File from Yasmin Nair, 
``Final Results Calculation Memorandum for Solvay Solexis, Inc. and 
Solvay Solexis S.p.A. for the Nineteenth Administrative Review of 
Granular Polytetrafluoroethylene Resin From Italy,'' (March 23, 2009).

Final Results of Review

    As a result of our review, we determine that the following 
percentage weighted-average margin exists for the period August 1, 
2006, through July 31, 2007:

------------------------------------------------------------------------
                                               Weighted-Average Margin
                 Producer                           (Percentage)
------------------------------------------------------------------------
Solvay Solexis, Inc. and Solvay Solexis                            79.47
 S.p.A. (collectively, ``Solvay'')........
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries. Pursuant to 19 CFR 351.212(b)(1), 
the Department calculates an assessment rate for each importer of the 
subject merchandise covered by the review. To determine whether the 
duty assessment rates covering the period were de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), we 
calculated importer (or customer)-specific ad valorem rates by 
aggregating the dumping margins calculated for all U.S. sales to that 
importer or customer and dividing this amount by the total value of the 
sales to that importer (or customer). Where an importer (or customer)-
specific ad valorem rate was greater than de minimis, and the 
respondent has reported reliable entered values, we applied the 
assessment rate to the entered value of the importer's/customer's 
entries during the review period. Where an importer (or customer)-
specific ad valorem rate was greater than de minimis and we did not 
have reliable entered values, we calculated a per-unit assessment rate 
by aggregating the dumping duties due for all U.S. sales to each 
importer (or customer) and dividing this amount by the total quantity 
sold to that importer (or customer). The Department intends to issue 
appropriate assessment instructions directly to CBP 15 days after 
publication of the final results of this review.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). This 
clarification will apply to entries of subject merchandise during the 
period of review produced by the respondent for which it did not know 
its merchandise was destined for the United States. In such instances, 
we will instruct CBP to liquidate unreviewed entries at the all-others 
rate if there is no rate for the intermediate company(ies) involved in 
the transaction. For a full discussion of this clarification, see id.

Cash Deposit Requirements

    The following deposit rates will be effective upon publication of 
the final results of this administrative review for all shipments of 
PTFE from Italy entered, or withdrawn from warehouse, for consumption 
on or after the publication date, as provided by section 751(a)(1) of 
the Act: (1) the cash deposit rate listed above for Solvay will be the 
rate established in the final results of this review, except if a rate 
is less than 0.5 percent, and therefore de minimis, the cash deposit 
rate will be zero; (2) for previously reviewed or investigated 
companies not listed above, the cash deposit rate will continue to be 
the company-specific rate published for the most recent period; (3) if 
the exporter is not a firm covered in this review, a prior review, or 
the less-than-fair-value (``LTFV'') investigation, but the manufacturer 
is, the cash deposit rate will be the rate established for the most 
recent period for the manufacturer of the merchandise; and (4) if 
neither the exporter nor the manufacturer is a firm covered in this or 
any previous review conducted by the Department, the cash deposit rate 
will be 46.46 percent, the ``all others'' rate established in the LTFV 
investigation. See Final Determination of Sales at Less Than Fair 
Value: Granular Polytetrafluoroethylene Resin From Italy, 53 FR 26096 
(July 11, 1988). These cash deposit requirements, when imposed, shall 
remain in effect until further notice.

Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR

[[Page 14521]]

351.402(f)(2) to file a certificate regarding the reimbursement of 
antidumping duties prior to liquidation of the relevant entries during 
this review period. Failure to comply with this requirement could 
result in the Secretary's presumption that reimbursement of antidumping 
duties occurred, and in the subsequent assessment of double antidumping 
duties.

Notification to Interested Parties

    This notice is also the reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
written notification of the 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.
    We are issuing and publishing these results and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: March 23, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix I

List of Comments in the Decision Memorandum

Comment 1: Differences Between Statutory Financial Statements and 
Financial Statements Prepared According to International Financial 
Reporting Standards
Comment 2: Financial Statements for G&A and Financial Expenses
Comment 3: Goodwill Amortization
Comment 4: Research and Development Expenses and Certain G&A Expenses
Comment 5: Major Inputs
Comment 6: Adjustments to the Cost of Manufacturing
Comment 7: Financial Expenses
Comment 8: Solvay's Use of Polymist[reg] in Producing In-Scope Products
Comment 9: Non-U.S. Sales
Comment 10: Treatment of Negative Dumping Margins (Zeroing)
[FR Doc. E9-7232 Filed 3-30-09; 8:45 am]
BILLING CODE 3510-DS-S