Polyethylene Terephthalate Film, Sheet and Strip From the Republic of Korea, Initiation and Preliminary Results of Changed Circumstances Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-807]

Polyethylene Terephthalate Film, Sheet and Strip From the

Republic of Korea, Initiation and Preliminary Results of Changed

Circumstances Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Initiation and Preliminary Results of Changed

Circumstances Antidumping Duty Administrative Review.

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SUMMARY: The Department of Commerce (the Department) has received

information sufficient to warrant initiation of a changed circumstances

administrative review of the antidumping duty order on polyethylene

terephthalate film, sheet, and strip from Korea (56 FR 25669 (June 5,

1991)). On July 5, 1996, Cheil Synthetics, Inc. (Cheil) was revoked

from the order based on three consecutive years of no dumping. (See

Polyethtylene Terephthalate Film, Sheet, and Strip from the Republic of

Korea; Final Results of Antidumping Duty Administrative Reviews and

Notice of Revocation in Part, 61 FR 35177 (July 5, 1996).) Based on

information provided in its September 29, 1997 letter, we preliminarily

determine that Saehan Industries, Inc. (Saehan) is the successor firm

to Cheil, and therefore, the Department's revocation of Cheil applies

to Saehan.

Interested parties are invited to comment on these preliminary

results.

EFFECTIVE DATE: November 19, 1997.

FOR FURTHER INFORMATION CONTACT:

Michael J. Heaney at (202) 482-4475 or Linda Ludwig at (202) 482-3833,

AD/CVD Enforcement Office Eight, Import Administration, International

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

Constitution Avenue, N.W., Washington, DC 20230.

The Applicable Statute and Regulations

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 by the Uruguay

[[Page 61802]]

Round Agreements Act. In addition, unless otherwise indicated, all

citations to the Department's regulations are to the regulations

codified at 19 CFR 351 (62 FR 27296).

SUPPLEMENTARY INFORMATION:

Background

On September 29, 1997, Saehan requested that the Department conduct

a changed circumstances administrative review pursuant to section

751(b) of the Tariff Act to determine whether Saehan should properly be

considered the successor firm to Cheil and if, as such, the revocation

issued for Cheil should apply to Saehan. Saehan also requested the

Department to publish the preliminary results concurrently with this

notice of initiation, pursuant to 19 CFR 351.221(c)(3)(ii). In its

request, Saehan notified the Department that on February 28, 1997,

Cheil officially changed its corporate name to Saehan, and despite this

change in corporate name, the management, production facilities,

supplier relationships, and customer base of Saehan are virtually

identical to those of the former Cheil. In support of its claim, Saehan

submitted documentary evidence demonstrating that Saehan maintained

essentially the same management, production facilities, supplier, and

customer relationships as Cheil. Citing the Department's determinations

in Sugars and Syrups from Canada; Initiation and Preliminary Results of

Changed Circumstances Review, 61 FR 48885 (Sept. 17, 1996) and

Industrial Phosphoric Acid from Israel; Preliminary Results of

Antidumping Duty Changed Circumstances Review, 58 FR 59010 (Nov. 5,

1993), Saehan claimed that the Department should determine that it is

the successor-in-interest to Cheil.

Scope of the Review

The merchandise subject to this antidumping duty order are

shipments of all gauges of raw, pretreated, or primed polyethylene

terephthalate, film, sheet, and strip, whether extruded or coextruded.

The films excluded from this review are metallized films, and other

finished films that have had at least one of their surfaces modified by

the application of a performance-enhancing resinous or inorganic layer

of more than 0.00001 inches (0.254 micrometers) thick. Roller transport

cleaning film which has at least one of its surfaces modified by the

application of SBR latex has also been ruled as not within the scope of

the order.

PET film is currently classifiable under Harmonized Tariff Schedule

of the United States subheading 3920.62.00.00. The HTS subheading is

provided for convenience and customs purposes. The written description

of the scope of this order is dispositive.

This changed circumstances administrative review covers Saehan.

Initiation and Preliminary Results of Changed Circumstances

Antidumping Duty Administrative Review

In accordance with section 751(b) of the Tariff Act, as amended

(the Act), the Department is initiating a changed circumstances

administrative review to determine whether Saehan is the successor

company to Cheil. In making such a determination, the Department

examines several factors including, but not limited to, changes in (1)

management, (2) production facilities, (3) supplier relationships, and

(4) customer base, See e.g., Brass Sheet and Strip from Canada; Final

Results of Antidumping Duty Administrative Review, 57 FR 20460 (May 13,

1992). While no one or several of these factors will necessarily

provide a dispositive indication, the Department will generally

consider the new company to be the successor to the previous company if

its resulting operation is similar to that of the predecessor. See

e.g., Industrial Phosphoric Acid from Israel, Final Results of Changed

Circumstances Review, 59 FR 6944 (February 14, 1994). Thus, if evidence

demonstrates that, with respect to the production and sale of the

subject merchandise, the new company operates as the same entity as the

former company, the Department will treat the successor company the

same as the predecessor for purposes of antidumping liability, e.g.,

assign the same cash deposit rate, revocation, etc.

We have examined the information provided by Saehan in its

September 29, 1997 letter and determined that Saehan has established a

prima facie case that it is the successor-in-interest to Cheil. The

management and organizational structure of the former Cheil has

remained intact under Saehan, and there have been no changes in the

production facilities, supplier relationships, or customer base.

Therefore, we preliminarily determine that Saehan has maintained the

same management, production facilities, supplier relationships, and

customer bases as did Cheil.

Based upon the foregoing, we preliminarily determine that the July

5, 1996 revocation issued for Cheil applies to Saehan. Because Saehan

has presented evidence to establish a prima facie case of its

successorship status, we find it appropriate to issue the preliminary

results in combination with the notice of initiation in accordance with

19 CFR 351.221(c)(3)(ii).

Interested parties may submit case briefs and/or written comments

no later than 30 days after the date of publication of these

preliminary results. Rebuttal briefs and rebuttals to written comments,

limited to issues raised in such briefs or comments, may be filed no

later than 37 days after the date of publication. The Department will

publish the final results of this changed circumstances review, which

will include the results of its analysis raised in any such written

comments.

This initiation of review and notice are in accordance with

sections 751(b) of the Act, as amended (19 U.S.C. 1675(b)), and 19 CFR

351.216.

Dated: November 12, 1997.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 97-30388 Filed 11-18-97; 8:45 am]

BILLING CODE 3510-DS-M