[Federal Register Volume 64, Number 31 (Wednesday, February 17, 1999)]
[Notices]
[Pages 7855-7856]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3867]
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DEPARTMENT OF COMMERCE
[A-580-807]
Polyethylene Terephthalate Film, Sheet, and Strip From the
Republic of Korea; Notice of Final Court Decision and Amended Final
Results of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final court decision and amended final results of
antidumpting duty administrative review.
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SUMMARY: On November 23, 1998, in the case of E.I. DuPont de Nemours &
Company v. United States, the United States Court of International
Trade (the Court) affirmed the Department of Commerce's (the
Department) redetermination for Cheil Synthetic Corporation (Cheil) and
SKC Corporation (SKC) arising out of the first review of polyethylene
terephthalate film, sheet, and strip (PET film) from the Republic of
Korea. The review covers the period November 30, 1990 through May 31,
1992. As there is now a final and conclusive court decision in this
action, we are amending the final results of review with respect to
sales by Cheil and SKC during the review period. We will instruct the
U.S. Customs Service to liquidate Cheil and SKC's entries accordingly.
EFFECTIVE DATE: February 17, 1999.
FOR FURTHER INFORMATION CONTACT: Michael J. Heaney or John Kugelman,
AD/CVD Enforcement Group III, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230, telephone: (202) 482-
4475 or 0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 26, 1998, the Court issued an order remanding in part the
amended final results issued on February 12, 1996. See E.I. Dupont de
Nemours v. United States, 4 F. Supp. 2d 1248 (CIT 1998). In its March
26, 1998 order the Court directed the Department to (1) determine
whether, in light of SKC's U.S. customer's financial condition, SKC's
reported short-term interest rate is consistent with the Federal
Circuit's decision in LMI-LaMetalli Industriale S.p.A. v. United
States, 912 F. 2d 455 (Fed. Cir. 1990) (LMI) and (2) reconsider its
decision to deduct Cheil's inventory carrying costs (ICC) from foreign
market value (FMV).
As directed by the Court, on remand we examined whether, in light
of SKC's U.S. customer's financial condition, SKC's reported short-term
interest rate was consistent with the LMI decision. In LMI the Federal
Circuit held that the Department's use of higher home market borrowing
rates did not reflect the respondent's actual borrowing experience
because the respondent was able to secure financing in the United
States at a lower rate. In the instant case, the Department determined
that SKC's U.S. customer's financial condition was not determinative of
SKC's borrowing costs in the United States. Furthermore, we found that
because SKC's sales were denominated in Korean won, SKC had
appropriately based its credit expense upon its borrowings in Korea.
This is consistent with the Department's practice since the LMI
decision of using the short-term interest rate tied to the currency in
which the sales are denominated. See e.g., Final Determination of Sales
at Less Than Fair Value: Oil Country Tubular Goods from Austria, 60 FR
33551, 33555 (June 28, 1995); see also Import Administration Policy
Bulletin No. 98.2,
[[Page 7856]]
Imputed Credit Expenses and Interest Rates, Feb. 23, 1998. Based upon
the foregoing, we determined that SKC's calculation was consistent with
LMI.
We also determined that because Cheil's sales in the United States
were purchase price (PP) transactions, no deduction for inventory
carrying costs is warranted from either FMV or PP. We revised our
margin calculations for Cheil accordingly. This determination is
consistent with our long-standing practice of deducting indirect
selling expenses from USP only with respect to ESP transactions. See
e.g., Frozen Concentrated Orange Juice from Brazil; Final Results and
Termination in Part of Antidumping Duty Administrative Review, 61 FR
47502, 47503 (November 14, 1990.)
On November 23, 1998, the Court issued a final and conclusive
ruling affirming our results of redetermination.
Amendment to Final Results of Review
Pursuant to section 516A(e) of the Act, we are now amending the
final results for SKC and Cheil for the period November 30, 1990
through May 31, 1992. The recalculated margins for Cheil and SKC are
outlined below:
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Margin
Company (percent)
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Cheil...................................................... 0.07
SKC........................................................ 0.11
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The Department shall determine, and the Customs Service shall
assess, antidumping duties on all appropriate entries. Individual
differences between U.S. price and FMV may vary from the percentage
stated above. The Department will issue appraisement instructions
directly to the Customs Service.
We note that the Department has revoked the order with respect to
Saehan Industries, Inc., the successor company to Cheil Synthetics, and
that the current cash deposit rate for SKC is based upon an
administrative review conducted subsequent to this segment of the
proceeding. Therefore, these amended final results do not affect
current cash deposit rates.
This notice is published pursuant to section 751(A) of the Act.
Dated: February 9, 1999.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-3867 Filed 2-16-99; 8:45 am]
BILLING CODE 3510-DS-M