Polyethylene Terephthalate Film, Sheet and Strip From the Republic of Korea, Final 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, Final Results of Changed Circumstances Antidumping

Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Final Results of Changed Circumstances Antidumping

Duty Administrative Review.

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SUMMARY: On November 19, 1997, the Department of Commerce (the

Department) published the notice of initiation and preliminary results

of its changed circumstances administrative review concerning whether

Saehan Industries, Inc. (Saehan) is the successor

[[Page 3704]]

firm to Cheil Synthetics Inc., (Cheil) and whether the revocation

issued or Cheil should apply to Saehan. We have now completed that

review. We have determined that Saehan is the successor firm to Cheil.

As such, the revocation issued for Cheil applies to Saehan.

EFFECTIVE DATE: January 26, 1998.

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 Round Agreement Act. In addition, unless

otherwise indicated, all citations to the Department's regulations are

to the regulations codified at 19 CFR part 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 the

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.

On November 19, 1997, the Department published in the Federal

Register (62 FR 61801) the notice of initiation and preliminary results

of its antidumping duty administrative review of the antidumping duty

order of polyethylene terephthalate film, sheet, and strip from the

Republic of Korea. We have now completed this changed circumstances

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

(the Act).

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.

Successorship

In considering questions involving successorship, 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 essentially the same as its 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 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 determine that Saehan has maintained the

same management, production facilities, supplier relationships, and

customer bases as did Cheil. Based upon the foregoing, we determine

that the July 5, 1996 revocation issued for Cheil applies to Saehan.

Comments

Although we gave interested parties an opportunity to comment on

the preliminary results, none were submitted.

Final Results of Changed Circumstances Review

We determine that Saehan is the successor-in-interest Cheil, and

accordingly, the revocation issued for Cheil applies to Saehan. We will

notify the U.S. Customs Service of our decision and instruct Customs to

liquidate without regard to antidumping duties, merchandise produced by

Saehan on or after February 28, 1997, the date on which the corporate

name change was legally effected.

This changed circumstances review and notice are in accordance with

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

351.216.

Dated: January 16, 1998.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 98-1805 Filed 1-23-98; 8:45 am]

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