[Federal Register Volume 62, Number 187 (Friday, September 26, 1997)]
[Notices]
[Pages 50557-50558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25646]


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

DEPARTMENT OF COMMERCE

International Trade Administration
[A-580-807]


Polyethylene Terephthalate Film, Sheet, and Strip From the 
Republic of Korea; Notice of Final Court Decision and Amended Final 
Determination of Antidumping Duty Investigation

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: On February 5, 1997, in the case of E.I. DuPont de Nemours & 
Co., Inc., v. United States, 954 F. Supp. 263 (CIT 1997), the United 
States Court of International Trade affirmed the Department of 
Commerce's second redetermination on remand arising out of the final 
determination of sales at less than fair value in the antidumping duty 
investigation of polyethylene terephthalate film, sheet and strip from 
the Republic of Korea. As there is now a final and conclusive court 
decision in this action, we are amending the final determination in 
this matter and will instruct the U.S. Customs Service to change the 
``all others'' cash deposit rate.

EFFECTIVE DATE: September 26, 1997.

FOR FURTHER INFORMATION CONTACT:
Magd A. Zalok or Kris Campbell at (202) 482-4162 or (202) 482-3813, 
respectively, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230.

SUPPLEMENTARY INFORMATION: 

Background

    On June 5, 1991, the Department of Commerce (`'the Department'') 
published the antidumping duty order and amended final determination of 
sales at less than fair value for polyethylene terephthalate film, 
sheet, and strip from the Republic of Korea. See Final Determination of 
Sales at Less Than Fair Value: Polyethylene Terephthalate Film, Sheet, 
and Strip from the Republic of Korea (56 FR 16305, April 22, 1991), as 
amended (56 FR 25669, June 5, 1991). E.I. DuPont de Nemours & Company, 
Inc. Hoechst Celanese Corp., and ICI Americas, Inc., (``petitioners''), 
filed an action challenging the final determination. On December 6, 
1993, the Court of International Trade (CIT) remanded certain of the 
challenged issues to the Department. The CIT directed the Department to 
re-examine the following issues in light of the Federal Circuit's 
decision in IPSCO, Inc. v. United States, 965 F.2d 1056 (Fed. Cir. 
1992) (``IPSCO Appeal''): (1) Methodology for calculating costs of 
production of off-grade PET film reported by Cheil Synthetics, Inc. 
(``Cheil'') and SKC Limited (``SKC''); (2) methodology for calculating 
Cheil's costs of recycled scrap film; and (3) SKC's product-specific 
cost accounting methodology. The CIT also directed the Department to 
reconsider its methodology for adjustments to United States price 
(``USP'') for value-added taxes (``VATs''). See E.I. DuPont de Nemours 
& Co., Inc. v. United States, 841 F. Supp. 1237 (CIT 1993).
    On April 7, 1994, pursuant to the remand order, the Department 
announced its remand results. (See Final Remand Determination Pursuant 
to Court Order, E.I. DuPont de Nemours & Co., Inc. v. United States, 
Court No. 91-07-00487.) For calculating Cheil's cost of production of 
off-grade PET film, the Department adjusted Cheil's submitted costs to 
reflect actual, product-specific costs. In the case of SKC, the 
Department revised its methodology consistent with the IPSCO Appeal 
decision and recalculated SKC's costs of production of off-grade PET 
film based on quantity rather than value. The Department did not adjust 
its cost methodology for Cheil's recycled PET film because it reasoned 
that the recycled film was not a co-product, and therefore, the 
rationale of the IPSCO Appeal decision was not applicable. The 
Department also accepted SKC's submitted costs adjusted to reflect 
actual product-specific costs because it determined that SKC's verified 
cost

[[Page 50558]]

accounting methodology was reasonable. Finally, the Department revised 
the treatment of VATs to comport with its then-existing methodology 
used in Certain Stainless Steel Wire rod from France, 58 FR 6885 (Dec. 
29, 1993) by adjusting USP for tax by multiplying the home market tax 
rate by the USP at the point in the chain of commerce of the U.S. 
merchandise that is analogous to the point in the home market chain of 
commerce at which the foreign government applies the home market 
consumption tax.
    With exception of the department's methodology for VAT adjustments, 
the CIT upheld all aspects of the Department's remand redetermination. 
See E.I Dupont de Nemours & Co., Inc., ICI Americas, Inc., v. United 
States, 932 F. Supp. 296 (CIT 1996). The CIT concluded that the 
Department's VAT adjustments were not consistent with the Federal 
circuit court's ruling in Federal Mogul Corp. v. United States, 66 F.3d 
1572 (Fed. Cir. 1995) and remanded this issue to the Department for 
recalculation of the VAT adjustments.
    On May 17, 1996, the Department filed the results of the second 
remand redetermination. In accordance with the VAT methodology adopted 
after the Federal Mogul decision, the Department added the tax amount 
paid in the home market to USP for the same merchandise.
    On February 5, 1997, the CIT upheld the second remand results. E.I. 
DuPont de Nemours & Co., Inc. v. United States, 954 F. Supp. 263 (CIT 
1997). The period to appeal has expired and no appeal was filed. 
Therefore, as there is now a final and conclusive court decision in 
this action, we are amending our final determination.

Amendment to Final Determination

    Pursuant to section 516A(e) of the Act, we are now amending the 
final determination in polyethylene terephthalate film, sheet and strip 
from the Republic of Korea. The recalculated weighted-average dumping 
margins are as follows:

------------------------------------------------------------------------
                                                                Margin  
               Manufacturer/producer/exporter                 (percent) 
------------------------------------------------------------------------
SKC........................................................        13.92
Cheil......................................................        36.33
All others.................................................        21.50
------------------------------------------------------------------------

    We will instruct U.S. Customs to change the existing ``all others'' 
cash deposit requirements accordingly. We note that this order has been 
revoked with respect to Cheil (61 FR 35177) and SKC's current cash 
deposit rate is based upon an administrative review conducted 
subsequent to this segment of the proceeding. Therefore, this amended 
redetermination does not affect the cash deposit rates for either SKC 
or Cheil.

    Dated: September 22, 1997.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 97-25646 Filed 9-25-97; 8:45 am]
BILLING CODE 3510-DS-M