Granular Polytetrafluoroethylene Resin From Italy; Preliminary Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-703]

Granular Polytetrafluoroethylene Resin From Italy; Preliminary

Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty

administrative review.

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SUMMARY: In response to requests by one respondent and the petitioner,

the Department of Commerce (the Department) is conducting an

administrative review of the antidumping duty order on granular

polytetrafluoroethylene (PTFE) resin from Italy. The review period is

August 1, 1993, through July 31, 1994. This review covers one company,

Ausimont, S.p.A. As a result of the review, the Department has

preliminarily determined that dumping margins exist for this

respondent. Interested parties are invited to comment on these

preliminary results.

EFFECTIVE DATE: October 17, 1995.

FOR FURTHER INFORMATION CONTACT: Charles Riggle or Michael Rill, Office

of Antidumping Compliance, Import Administration, International Trade

Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue, N.W., Washington, DC 20230; telephone: (202) 482-

4733.

SUPPLEMENTARY INFORMATION:

Background

On August 3, 1994, the Department published in the Federal Register

a notice of ``Opportunity to Request Administrative Review'' (59 FR

39543) of the antidumping duty order on granular PTFE resin from Italy

(53 FR 33163, August 30, 1988). Respondent, Ausimont S.p.A., and

petitioner, E. I. Dupont de Nemours & Company, requested an

administrative review in accordance with 19 CFR 353.22(a)(1993). On

September 16, 1994, the Department published a notice of initiation of

this review (59 FR 47609). The period of review is August 1, 1993,

through July 31, 1994. The Department is now conducting this review

pursuant to section 751 of the Tariff Act of 1930, as amended (the

Tariff Act).

Applicable Statute and Regulations

Unless otherwise stated, all citations to the statute and to the

Department's regulations are references to the provisions as they

existed on December 31, 1994.

Scope of the Review

The antidumping duty order covers granular PTFE resins, filled or

unfilled. This order also covers PTFE wet raw polymer exported from

Italy to the United States (see Granular Polytetrafluoroethylene Resin

from Italy; Final Determination of Circumvention of Antidumping Duty

Order (58 FR 26100)). This 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 (HTS). We are providing this HTS number for

convenience and Customs purposes only. The written description of the

scope remains dispositive.

The review covers one manufacturer/exporter of granular PTFE resin,

[[Page 53736]]

Ausimont S.p.A. The period of review is August 1, 1993, through July

31, 1994.

United States Price

The Department based United States price (USP) on exporter's sale

price (ESP) as defined in section 772(c) of the Tariff Act because all

sales to unrelated parties were made after importation of the subject

merchandise into the United States. We based ESP on the packed,

delivered prices to unrelated purchasers in the United States. We made

deductions, where applicable, for billing adjustments and rebates,

foreign inland freight, ocean freight, marine insurance, U.S. brokerage

and handling, U.S. inland freight from port to warehouse, and U.S.

inland freight from warehouse to customer, in accordance with section

772(d)(2)(a) of the Tariff Act. We also made deductions, where

applicable, for credit expense, warranties, technical service expenses

and indirect selling expenses in accordance with section 772(e) of the

Tariff Act. For sales of granular PTFE resin finished in the United

States from PTFE wet raw polymer imported from Italy, we also deducted,

pursuant to section 772(e)(3) of the Tariff Act, the value added in the

United States, which consisted of the costs of further processing in

the United States and that portion of the profit on sales of further

processed merchandise attributable to the additional processing.

When comparisons were made to home market sales in which a value-

added tax (VAT) was added or a VAT was included, we made an addition to

USP for the VAT which was not collected, or which was rebated, on

export in accordance with our practice as set forth in Silicomanganese

From Venezuela; Preliminary Determination of Sales at Less Than Fair

Value (Silicomanganese), 59 FR 31204 (June 17, 1994).

Foreign Market Value

Based on a comparison of the volume of home market and third

country sales, we determined that the home market was viable.

Therefore, in accordance with section 773(a)(1)(A) of the Tariff Act,

we based FMV on the packed, delivered price to unrelated purchasers in

the home market.

We calculated FMV on a monthly weighted-average basis. Where

possible, we compared U.S. sales to sales of identical merchandise in

Italy. For U.S. sales in which identical merchandise was not sold

during the relevant contemporaneous period, we used as FMV

contemporaneous home market sales of the product that was most similar

to the merchandise involved in the U.S. sale, in accordance with

section 771(16) of the Tariff Act. Whereas filled and unfilled resins

generally are not similar in terms of their physical characteristics,

we compared, whenever possible, home market sales of filled resins to

U.S. sales of filled resins, and home market sales of unfilled resins

with U.S. sales of unfilled resins. We matched filled resins sold in

the two markets according to the amounts and types of fillers, and the

percentages of fillers, in the products sold as provided in Ausimont's

supplemental questionnaire response dated June 9, 1995.

Where applicable, we made adjustments to home market prices for

rebates. To adjust for differences in circumstances of sale between the

home market and the United States, we deducted post-sale inland

freight, inland insurance and credit expense from FMV in accordance

with 19 CFR 353.56(a). Where applicable, we made adjustments for

differences in the physical characteristics of the merchandise. In

accordance with 19 CFR 353.56(b)(2), we deducted home market indirect

selling expenses in an amount not to exceed the amount of indirect

selling expenses incurred in the United States.

In order to adjust for differences in packing between the two

markets, we deducted home market packing costs from FMV and added U.S.

packing costs. We also adjusted for the amount of Italian VAT in

accordance with our decision in Silicomanganese.

We compared U.S. sales of further manufactured resins to FMV based

on constructed value (CV) when Ausimont did not have contemporaneous

home market sales of PTFE reactor bead, the product from which PTFE

resin is processed in the United States. We calculated CV in accordance

with section 773(e) of the Tariff Act. We included the cost of

materials, labor, general expenses, profit and packing. To calculate CV

we used: (1) The greater of actual general expenses or the statutory

minimum of 10 percent of materials and labor; (2) the greater of actual

profit or the statutory minimum of eight percent of materials, labor

and general expenses; and (3) packing costs for merchandise exported to

the United States. Where appropriate, we made adjustments to CV, in

accordance with 19 CFR 353.56, for differences in circumstances of

sale. We deducted home market direct selling expenses, and home market

indirect selling expenses not to exceed the amount of indirect selling

expenses incurred in the United States in accordance with section

353.56(b)(2).

Preliminary Results of Review

As a result of our comparison of USP with FMV, we preliminarily

determine that the following weighted-average dumping margin exists:

------------------------------------------------------------------------

Margin

Manufacturer/exporter Period (percent)

------------------------------------------------------------------------

Ausimont S.p.A.................................. 08/01/93-

07/31/94 6.91

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Interested parties may submit written comments on these preliminary

results. Interested parties may request disclosure within 5 days of the

date of publication of this notice and may request a hearing within 10

days of publication. Any hearing, if requested, will be held

approximately 44 days from the date of publication. Case briefs and

other written comments from interested parties may be submitted not

later than 30 days from the date of publication. Rebuttal briefs and

rebuttal comments, limited to issues raised in the case briefs, may be

filed not later than 37 days from the date of publication. The

Department will publish the final results of this administrative review

including the results of its analysis of issues raised in any such

written comments or at a hearing.

The Department shall determine, and the Customs Service shall

assess, antidumping duties on all appropriate entries. Individual

differences between USP and FMV may vary from the percentage stated

above. Upon completion of this review, the Department will issue

appraisement instructions directly to the Customs Service.

Furthermore, the following deposit requirements will be effective

for all shipments of the subject merchandise, entered, or withdrawn

from warehouse, for consumption on or after the publication date of the

final results of this administrative review, as provided by section

751(a)(1) of the Tariff Act: (1) The cash deposit rate for the reviewed

company will be the rate established in the final results of this

administrative review; (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 original 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)

the cash deposit rate for all other manufacturers or exporters will

continue to be 46.46

[[Page 53737]]

percent, the ``all others'' rate established in the LTFV investigation

(50 FR 26019, June 24, 1985). These deposit requirements, when imposed,

shall remain in effect until publication of the final results of the

next administrative review.

This notice also serves as a preliminary reminder to importers of

their responsibility under 19 CFR 353.26 to file a certificate

regarding the reimbursement of antidumping duties prior to liquidation

of the relevant entries during this review period. Failure to comply

with this requirement could result in the Secretary's presumption that

reimbursement of antidumping duties occurred and the subsequent

assessment of double antidumping duties.

This administrative review and notice are in accordance with

section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR

353.22.

Dated: October 2, 1995.

Paul L. Joffe,

Deputy Assistant Secretary for Import Administration.

[FR Doc. 95-25753 Filed 10-16-95; 8:45 am]

BILLING CODE 3510-DS-P