Initiation of Antidumping Duty Investigation: Open-End Spun Rayon Singles Yarn From Austria

DEPARTMENT OF COMMERCE

[A-433-807]

Initiation of Antidumping Duty Investigation: Open-End Spun Rayon

Singles Yarn From Austria

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: September 13, 1996.

FOR FURTHER INFORMATION CONTACT: Dana Mermelstein at (202) 482-0984 or

Richard Herring at (202) 482-4149, Office of CVD/AD Enforcement VI,

Import Administration, International Trade Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue, N.W.,

Washington, D.C. 20230.

INITIATION OF INVESTIGATION:

The Applicable Statute

Unless otherwise indicated, all citations to the statute are

references to the provisions effective January 1, 1995, the effective

date of the amendments made to the Tariff Act of 1930 (the Act) by the

Uruguay Round Agreements Act (URAA).

The Petition

On August 20, 1996, the Department of Commerce (the Department)

received a petition, filed in proper form by the Ad-Hoc Committee of

Open-End Spun Rayon Yarn Producers (petitioner), a committee composed

of four companies that produce open-end spun rayon singles yarn. An

amendment to the petition was filed on September 4, 1996.

In accordance with section 732(b) of the Act, petitioner alleges

that imports of open-end spun rayon singles yarn from Austria are

being, or are likely to be, sold in the United States at less than fair

value within the meaning of section 731 of the Act, and that such

imports are materially injuring, or threatening material injury to, an

industry in the United States.

Petitioner is an interested party, as defined under section

771(9)(F) of the Act, and therefore, may file a petition for the

imposition of antidumping duties.

Determination of Industry Support for the Petition

Section 732(b)(1) of the Act requires that petitions be filed on

behalf of the domestic industry. In this regard, section 732(c)(4)(A)

of the Act requires that the Department determine, prior to initiation

of an investigation, that a minimum percentage of the domestic industry

supports an antidumping petition. A petition meets the minimum

requirements if the domestic producers or workers who support the

petition account for: (1) At least 25 percent of the total production

of the domestic like product; and (2) more than 50 percent of the

production of the domestic like product produced by that portion of the

industry expressing support for, or opposition to, the petition.

Our review of the production data provided in the petition and

other production information obtained by the Department indicates that

the petitioners and supporters of the petition account for more than 50

percent of the total production of the domestic like product, thus

meeting the standard of section 732(c)(4)(A) of the Act. The Department

received no expressions of opposition to the petition from any domestic

producers or workers. Accordingly, the Department determines that the

petition is supported by the domestic industry.

Scope of the Investigation

The product covered by this investigation is open-end spun singles

yarn containing 85 percent or more of

[[Page 48473]]

rayon staple fiber. Such yarn is classified under subheading

5510.11.0000 of the Harmonized Tariff Schedule of the United States

(HTSUS). Although the HTSUS subheading is provided for convenience and

for Customs purposes, our written description of the scope of this

investigation is dispositive.

Export Price and Normal Value

Petitioner based export price on actual U.S. market invoices from

Linz Textile, an Austrian exporter of the subject merchandise. The

invoice prices are c.i.f., and thus petitioner made deductions for

foreign inland freight, ocean freight, U.S. freight, insurance, import

fees, customs duties, and handling charges.

With regard to normal value, petitioner stated that it was unable

to obtain Austrian market prices and was unable to obtain conclusive

information, such as an invoice, to document third country prices.

Consequently, petitioner based normal value on constructed value (CV).

CV includes the cost of manufacturing (COM), interest expense, and

profit. Petitioner calculated COM based on data in Linz's 1995

financial statement and on petitioner's knowledge of the costs and

inputs applicable to the production of the subject merchandise.

Specifically, the cost of materials was based on the average Customs

Value of rayon staple fiber shipped from Austria to the United States

in 1995, which the petitioner claims is indicative of Austrian prices.

Petitioner's knowledge of the fiber-to-yarn yield factor was also used.

Labor costs were calculated from a combination of data in Linz's 1995

financial statement and petitioner's knowledge of the production labor

hours required to produce one pound of rayon yarn. The overhead costs

were calculated from data in Linz's 1995 financial statement. For the

interest and profit expense calculations, petitioner relied on data in

Linz's 1995 financial statement. Although petitioner did not include an

amount for general and administrative expenses in its calculation of

CV, we note that the overhead calculation provided by petitioner may

include such expenses.

Based on comparisons of export price to normal value, the estimated

dumping margins range from 60.10 percent to 65.00 percent.

Fair Value Comparisons

Petitioner has supplied information reasonably available to it in

support of its allegation that open-end spun rayon singles yarn from

Austria is being, or is likely to be, sold at less than fair value. If

it becomes necessary at a later date to consider the petition as a

source of facts available under section 776 of the Act, we may further

review the margin calculation in the petition.

Initiation of Investigation

We have examined the petition on open-end spun rayon singles yarn

from Austria and have found that it meets the requirements of section

732 of the Act: the requirements concerning allegations of material

injury or threat of material injury to the domestic producers of a

domestic like product by reason of the subject imports allegedly sold

at less than fair value; the requirement concerning the provision of

information reasonably available to petitioner supporting the

allegation; and, the requirement concerning industry support for the

petition. Therefore, we are initiating an antidumping duty

investigation to determine whether imports of open-end spun rayon

singles yarn from Austria are being, or are likely to be, sold in the

United States at less than fair value. Unless extended, we will make

our preliminary determination by January 27, 1997.

Distribution of Copies of the Petition

In accordance with section 732(b)(3)(A) of the Act, a copy of the

public version of the petition has been provided to the Government of

Austria. We will attempt to provide a copy of the public version of the

petition to each exporter of open-end spun rayon singles yarn named in

the petition.

International Trade Commission Notification

We have notified the International Trade Commission (ITC) of our

initiation, as required by section 732(d) of the Act.

Preliminary Determinations by the ITC

The ITC will determine by October 4, 1996, whether there is a

reasonable indication that imports of open-end spun rayon singles yarn

from Austria are causing material injury, or threaten to cause material

injury, to a U.S. industry. A negative ITC determination will result in

the investigation being terminated; otherwise, the investigation will

proceed according to statutory and regulatory time limits.

Dated: September 9, 1996.

Robert S. LaRussa,

Acting Assistant Secretary for Import Administration.

[FR Doc. 96-23527 Filed 9-12-96; 8:45 am]

BILLING CODE 3510-DS-P