Initiation of Antidumping Duty Investigation: Open-End Spun Rayon Singles Yarn From Austria

[Federal Register Volume 61, Number 179 (Friday, September 13, 1996)]
[Notices]
[Pages 48472-48473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23527]


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DEPARTMENT OF COMMERCE
[A-433-807]


Initiation of Antidumping Duty Investigation: Open-End Spun Rayon 
Singles Yarn From Austria

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

EFFECTIVE DATE: September 13, 1996.

FOR FURTHER INFORMATION CONTACT: Dana Mermelstein at (202) 482-0984 or 
Richard Herring at (202) 482-4149, Office of CVD/AD Enforcement VI, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230.

INITIATION OF INVESTIGATION:

The Applicable Statute

    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 of 1930 (the Act) by the 
Uruguay Round Agreements Act (URAA).

The Petition

    On August 20, 1996, the Department of Commerce (the Department) 
received a petition, filed in proper form by the Ad-Hoc Committee of 
Open-End Spun Rayon Yarn Producers (petitioner), a committee composed 
of four companies that produce open-end spun rayon singles yarn. An 
amendment to the petition was filed on September 4, 1996.
    In accordance with section 732(b) of the Act, petitioner alleges 
that imports of open-end spun rayon singles yarn from Austria are 
being, or are likely to be, sold in the United States at less than fair 
value within the meaning of section 731 of the Act, and that such 
imports are materially injuring, or threatening material injury to, an 
industry in the United States.
    Petitioner is an interested party, as defined under section 
771(9)(F) of the Act, and therefore, may file a petition for the 
imposition of antidumping duties.

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that petitions be filed on 
behalf of the domestic industry. In this regard, section 732(c)(4)(A) 
of the Act requires that the Department determine, prior to initiation 
of an investigation, that a minimum percentage of the domestic industry 
supports an antidumping petition. A petition meets the minimum 
requirements if the domestic producers or workers who support the 
petition account for: (1) At least 25 percent of the total production 
of the domestic like product; and (2) more than 50 percent of the 
production of the domestic like product produced by that portion of the 
industry expressing support for, or opposition to, the petition.
    Our review of the production data provided in the petition and 
other production information obtained by the Department indicates that 
the petitioners and supporters of the petition account for more than 50 
percent of the total production of the domestic like product, thus 
meeting the standard of section 732(c)(4)(A) of the Act. The Department 
received no expressions of opposition to the petition from any domestic 
producers or workers. Accordingly, the Department determines that the 
petition is supported by the domestic industry.

Scope of the Investigation

    The product covered by this investigation is open-end spun singles 
yarn containing 85 percent or more of

[[Page 48473]]

rayon staple fiber. Such yarn is classified under subheading 
5510.11.0000 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Although the HTSUS subheading is provided for convenience and 
for Customs purposes, our written description of the scope of this 
investigation is dispositive.

Export Price and Normal Value

    Petitioner based export price on actual U.S. market invoices from 
Linz Textile, an Austrian exporter of the subject merchandise. The 
invoice prices are c.i.f., and thus petitioner made deductions for 
foreign inland freight, ocean freight, U.S. freight, insurance, import 
fees, customs duties, and handling charges.
    With regard to normal value, petitioner stated that it was unable 
to obtain Austrian market prices and was unable to obtain conclusive 
information, such as an invoice, to document third country prices. 
Consequently, petitioner based normal value on constructed value (CV).
    CV includes the cost of manufacturing (COM), interest expense, and 
profit. Petitioner calculated COM based on data in Linz's 1995 
financial statement and on petitioner's knowledge of the costs and 
inputs applicable to the production of the subject merchandise. 
Specifically, the cost of materials was based on the average Customs 
Value of rayon staple fiber shipped from Austria to the United States 
in 1995, which the petitioner claims is indicative of Austrian prices. 
Petitioner's knowledge of the fiber-to-yarn yield factor was also used. 
Labor costs were calculated from a combination of data in Linz's 1995 
financial statement and petitioner's knowledge of the production labor 
hours required to produce one pound of rayon yarn. The overhead costs 
were calculated from data in Linz's 1995 financial statement. For the 
interest and profit expense calculations, petitioner relied on data in 
Linz's 1995 financial statement. Although petitioner did not include an 
amount for general and administrative expenses in its calculation of 
CV, we note that the overhead calculation provided by petitioner may 
include such expenses.
    Based on comparisons of export price to normal value, the estimated 
dumping margins range from 60.10 percent to 65.00 percent.

Fair Value Comparisons

    Petitioner has supplied information reasonably available to it in 
support of its allegation that open-end spun rayon singles yarn from 
Austria is being, or is likely to be, sold at less than fair value. If 
it becomes necessary at a later date to consider the petition as a 
source of facts available under section 776 of the Act, we may further 
review the margin calculation in the petition.

Initiation of Investigation

    We have examined the petition on open-end spun rayon singles yarn 
from Austria and have found that it meets the requirements of section 
732 of the Act: the requirements concerning allegations of material 
injury or threat of material injury to the domestic producers of a 
domestic like product by reason of the subject imports allegedly sold 
at less than fair value; the requirement concerning the provision of 
information reasonably available to petitioner supporting the 
allegation; and, the requirement concerning industry support for the 
petition. Therefore, we are initiating an antidumping duty 
investigation to determine whether imports of open-end spun rayon 
singles yarn from Austria are being, or are likely to be, sold in the 
United States at less than fair value. Unless extended, we will make 
our preliminary determination by January 27, 1997.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act, a copy of the 
public version of the petition has been provided to the Government of 
Austria. We will attempt to provide a copy of the public version of the 
petition to each exporter of open-end spun rayon singles yarn named in 
the petition.

International Trade Commission Notification

    We have notified the International Trade Commission (ITC) of our 
initiation, as required by section 732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will determine by October 4, 1996, whether there is a 
reasonable indication that imports of open-end spun rayon singles yarn 
from Austria are causing material injury, or threaten to cause material 
injury, to a U.S. industry. A negative ITC determination will result in 
the investigation being terminated; otherwise, the investigation will 
proceed according to statutory and regulatory time limits.

    Dated: September 9, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-23527 Filed 9-12-96; 8:45 am]
BILLING CODE 3510-DS-P