[Federal Register Volume 73, Number 116 (Monday, June 16, 2008)]
[Notices]
[Pages 33989-33991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13506]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-839]
Notice of Initiation and Preliminary Results of Changed
Circumstances Antidumping Duty Review: Certain Polyester Staple Fiber
From the Republic of Korea
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') received a request
for
[[Page 33990]]
initiation of a changed circumstances review of the antidumping duty
order on polyester staple fiber (``PSF'') from the Republic of Korea
(``Korea'') from Woongjin Chemical Co. Ltd. (``Woongjin''). After
reviewing this request, we preliminarily determine that Woongjin is the
successor-in-interest to Saehan Industries Inc. (``Saehan''), and as a
result, should be accorded the same treatment previously accorded
Saehan with regard to the antidumping duty order on PSF from Korea.
Interested parties are invited to comment on these preliminary results.
EFFECTIVE DATE: June 16, 2008.
FOR FURTHER INFORMATION CONTACT: Devta Ohri, AD/CVD Operations, Office
1, Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington DC 20230; telephone (202) 482-3853.
SUPPLEMENTARY INFORMATION:
Background
On May 25, 2000, the Department of Commerce issued an antidumping
duty order on certain PSF from Korea. See Notice of Amended Final
Determination of Sales at Less Than Fair Value and Antidumping Duty
Order: Certain Polyester Staple Fiber from Republic of Korea, 65 FR
33807 (May 25, 2000).
On April 23, 2008, Woongjin requested that the Department initiate
a changed circumstances review of the antidumping duty order on PSF
from Korea to determine that, for purposes of the antidumping law,
Woongjin is the successor-in-interest to Saehan. See April 23, 2008,
letter from Woongjin.
Saehan was a producer and exporter of PSF from Korea that
participated in the administrative review covering the period May 1,
2002, through April 30, 2003. As a result of this review, Saehan
received a cash deposit rate of 2.13 percent. See Certain Polyester
Staple Fiber From Korea: Final Results of Antidumping Duty
Administrative Review and Final Determination To Revoke the Order in
Part, 69 FR 61341 (October 18, 2004); amended by Notice of Amended
Final Results of Antidumping Duty Administrative Review: Certain
Polyester Staple Fiber from Korea, 69 FR 67891 (November 22, 2004).
Saehan has not participated in any other administrative reviews of PSF
from Korea.
Scope of the Review
For the purposes of this order, the product covered is PSF. PSF is
defined as synthetic staple fibers, not carded, combed or otherwise
processed for spinning, of polyesters measuring 3.3 decitex (3 denier,
inclusive) or more in diameter. This merchandise is cut to lengths
varying from one inch (25 mm) to five inches (127 mm). The merchandise
subject to this order may be coated, usually with a silicon or other
finish, or not coated. PSF is generally used as stuffing in sleeping
bags, mattresses, ski jackets, comforters, cushions, pillows, and
furniture. Merchandise of less than 3.3 decitex (less than 3 denier)
currently classifiable in the Harmonized Tariff Schedule of the United
States (``HTSUS'') at subheading 5503.20.00.25 is specifically excluded
from this order. Also specifically excluded from this order are
polyester staple fibers of 10 to 18 denier that are cut to lengths of 6
to 8 inches (fibers used in the manufacture of carpeting). In addition,
low-melt PSF is excluded from this order. Low-melt PSF is defined as a
bi-component fiber with an outer sheath that melts at a significantly
lower temperature than its inner core.
The merchandise subject to this order is currently classifiable in
the HTSUS at subheadings 5503.20.00.45 and 5503.20.00.65. Although the
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the merchandise under the order is
dispositive.
Initiation and Preliminary Results of Changed Circumstances Review
Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended
(``the Act''), and 19 CFR 351.216, the Department will conduct a
changed circumstances review upon receipt of information concerning, or
a request from an interested party for review of, an antidumping duty
order which shows changed circumstances sufficient to warrant a review
of the order. In this case, the Department finds that the information
submitted by the respondent provides sufficient evidence of changed
circumstances to warrant a review to determine whether Woongjin is the
successor-in-interest to Saehan. Thus, in accordance with section
751(b) of the Act, the Department is initiating a changed circumstances
review to determine whether Woongjin is the successor-in-interest to
Saehan for purposes of determining antidumping duty liability with
respect to imports of PSF from Korea.
Furthermore, 19 CFR 351.221(c)(3)(ii) permits the Department to
combine the notice of initiation of a changed circumstances review and
the notice of preliminary results in a single notice if the Department
concludes that expedited action is warranted. In this case, we find
that the evidence provided by Woongjin is sufficient to preliminarily
determine that its change of corporate name from Saehan to Woongjin,
resulting from a change in stock ownership along with a change of some
of the board of directors, did not affect the company's operations.
In making a successor-in-interest 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., Notice of Final Results of Changed
Circumstances Antidumping Duty Administrative Review: Polychloroprene
Rubber From Japan, 67 FR 58 (January 2, 2002); Brass Sheet and Strip
from Canada: Final Results of Antidumping Duty Administrative Review,
57 FR 20460, 20462 (May 13, 1992). While no single factor or
combination of factors will necessarily provide a dispositive
indication of a successor-in-interest relationship, the Department will
generally consider the new company to be the successor to the previous
company if the new company's resulting operation is not materially
dissimilar to that of its predecessor. See, e.g., Fresh and Chilled
Atlantic Salmon from Norway; Final Results of Changed Circumstances
Antidumping Duty Administrative Review, 64 FR 9979 (March 1, 1999);
Industrial Phosphoric Acid from Israel; Final Results of Changed
Circumstances Review, 59 FR 6944 (February 14, 1994). Thus, if the
evidence demonstrates that, with respect to the production and sale of
the subject merchandise, the new company operates as the same business
entity as the former company, the Department will accord the new
company the same antidumping treatment as its predecessor.
In accordance with 19 CFR 351.221(c)(3)(ii), we preliminarily
determine that Woongjin is the successor-in-interest to Saehan. In its
April 23, 2008 submission, Woongjin provided evidence supporting its
claim to be the successor-in-interest to Saehan. Documentation attached
to Woongjin's April 23, 2008, submission shows that the purchase of 50
percent of Saehan's shares by the Woongjin Group, and the subsequent
name change to Woongjin resulted in little or no change in management,
production facilities, supplier relationships, or customer base. This
documentation consists of:
(1) A list of major shareholders along with their percentage
holdings before and after the name change;
(2) A list of the board of directors before and after the name
change
[[Page 33991]]
demonstrating that those members of the board involved in the day-to-
day activities of the company, including the President, the Business
Administration Division Director, and the Auditor, have all remained
the same;
(3) Saehan shareholder meeting minutes regarding the name change;
(4) Saehan's and Woongjin's business registration certificate which
demonstrates that despite the name change, the business registration
number remained the same;
(5) Certificate of corporate registration that demonstrated the
name change from Saehan to Woongjin;
(6) Announcement to Saehan's customers of the name change;
(7) Corporate organizational charts demonstrating that the
organizational structure remained unchanged despite the name change;
(8) Organizational charts of the PSF production and sales divisions
demonstrating that the organizational structure remained unchanged
before and after the name change;
(9) Woongjin's Internet Web site demonstrating that Saehan is now
Woongjin;
(10) A list of suppliers before and after the name change
demonstrating that Woongjin has maintained Saehan's supplier
relationships with only some minor variations (which Woongjin explains
are due to timing changes and normal business turnover); and
(11) A list of customers before and after the name change
demonstrating that Woongjin has maintained Saehan's customer base with
only some minor variations (which Woongjin explains are due to timing
changes and normal business turnover).
The documentation described above demonstrates that there was
little or no change in management structure, supplier relationships,
production facilities, or customer base. Therefore, we determine that
expedited action is warranted and we preliminarily find that Woongjin
is the successor-in-interest to Saehan and, thus, should receive the
same antidumping duty treatment with respect to PSF from Korea. Because
we have concluded that expedited action is warranted, we are combining
these notices of initiation and preliminary results.
Public Comment
Any interested party may request a hearing within 30 days of
publication of this notice. Any hearing, if requested, will be held no
later than 44 days after the date of publication of this notice, or the
first workday thereafter. Persons interested in attending the hearing,
if one is requested, should contact the Department for the date and
time of the hearing.
Case briefs from interested parties may be submitted not later than
30 days after the date of publication of this notice. Rebuttal briefs,
limited to the issues raised in those comments, may be filed not later
than 37 days after the date of publication of this notice. All written
comments shall be submitted in accordance with 19 CFR 351.303. The
Department will publish the final results of this changed circumstances
review, in accordance with 19 CFR 351.216(e).
The current requirement for a cash deposit of estimated antidumping
duties on all subject merchandise will continue unless and until it is
modified pursuant to the final results of this changed circumstances
review.
We are issuing and publishing these results and notice in
accordance with sections 751(b)(1) and 777(i)(1) and (2) of the Act and
19 CFR 351.216.
Dated: June 6, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-13506 Filed 6-13-08; 8:45 am]
BILLING CODE 3510-DS-P