[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21122]


[[Page Unknown]]

[Federal Register: August 26, 1994]


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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-827]

 

Preliminary Affirmative Determination of Critical Circumstances; 
Certain Cased Pencils From the People's Republic of China

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

ACTION: Notice.

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EFFECTIVE DATE: August 26, 1994.

FOR FURTHER INFORMATION CONTACT: Kristin Heim or Thomas McGinty, Office 
of Countervailing Investigations, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3798 or (202) 482-5055, respectively.

PRELIMINARY CRITICAL CIRCUMSTANCES DETERMINATION: The Department of 
Commerce (the Department) published its preliminary determination of 
sales at less than fair value in this investigation on June 16, 1994 
(54 FR 30911). On July 22, 1994, petitioner in this investigation 
alleged that there is a reasonable basis to believe or suspect that 
critical circumstances exist with respect to imports of certain cased 
pencils from the People's Republic of China (PRC). On August 1, 1994, 
petitioner amended the original allegation, submitting additional 
information regarding the existence of critical circumstances in this 
investigation.
    In accordance with 19 CFR 353.15(b)(2)(ii), since this allegation 
was filed later than 20 days before the scheduled date of the 
preliminary determination, we must issue our preliminary critical 
circumstances determination not later than 30 days after the allegation 
was submitted.
    Section 733(e)(1) of the Tariff Act of 1930, as amended (the Act), 
provides that the Department will determine that there is a reasonable 
basis to believe or suspect that critical circumstances exist if:
    (A)(i) there is a history of dumping in the United States or 
elsewhere of the class or kind of merchandise which is the subject of 
the investigation, or
    (ii) the person by whom, or for whose account, the merchandise was 
imported knew or should have known that the exporter was selling the 
merchandise which is the subject of the investigation at less than is 
fair value, and
    (B) there have been massive imports of the class or kind of 
merchandise which is the subject of the investigation over a relatively 
short period.

History of Dumping

    In this investigation, the first criterion of analysis is addressed 
in petitioner's July 22, 1994, submission. This submission provides 
documentation indicating that in April 1994 the government of Mexico 
published an antidumping duty order of 451 percent on certain cased 
pencils produced and exported from the PRC. Therefore, petitioner has 
established that there is a history of dumping elsewhere of such 
pencils by PRC producers/exporters.

Importer Knowledge

    With respect to the alternative first criterion, we have 
consistently determined that preliminary antidumping duty margins in 
excess of 25 percent on U.S. purchase price sales are sufficient to 
impute importer knowledge of sales at less than fair value. See, Final 
Determination of Sales at Less Than Fair Value: Silicon Metal from 
China (56 FR 18570, April 23, 1991) and Final Determination of Sales at 
Less Than Fair Value: Extruded Rubber Thread from Malaysia (57 FR 
38465, August 25, 1992). In this investigation, all responding and non-
responding companies received preliminary antidumping duty margins in 
excess of 25 percent. Therefore, we determine that importers either 
knew or should have known that the exporter was selling certain cased 
pencils at less than fair value.

Massive Imports

    Because we have preliminarily found that the first statutory 
criterion is met for finding critical circumstances in that there is a 
history of dumping of the subject merchandise and, alternatively, there 
is actual or imputed importer knowledge of sales at less than fair 
value, we must consider the second statutory criterion: whether imports 
of the merchandise have been massive over a relatively short period.
    According to 19 CFR 353.16(f) and 353.16(g), we consider the 
following to determine whether imports have been massive over a 
relatively short period of time: (1) Volume and value of the imports; 
(2) seasonal trends (if applicable); and (3) the share of domestic 
consumption accounted for by the imports.
    When examining volume and value data, the Department typically 
compares the export volume for equal periods immediately preceding and 
following the filing of the petition. Under 19 CFR 353.16(f)(2), unless 
the imports in the comparison period have increased by at least 15 
percent over the imports during the base period, we will not consider 
the imports to have been ``massive.''
    To determine whether there have been massive imports over a 
relatively short period of time, the Department examines shipment 
information submitted by the respondent or import statistics, when 
respondent-specific shipment information is not available.
    On August 4, 1994, the Department sent letters to respondents 
requesting information regarding shipments of certain cased pencils for 
the period January 1992 to May 1994. On August 16, 1994, we received 
the requested information filed in proper form for each of the four 
responding companies. Because company-specific shipment data was 
provided by the four responding companies in this investigation, we 
have used this data for our analysis.
    To determine whether or not there have been massive imports of 
certain cased pencils over a relatively short period, we compared each 
respondent's export volume for the seven months subsequent to the 
filing of the petition (November 1993 through May 1994) to that during 
the seven months prior to the filing of the petition (April through 
October 1993). This period of review was selected based on the 
Department's practice of using the longest period for which information 
is available from the month that the petition was filed through the 
effective date of the preliminary determination of sales at less than 
fair value, which in this investigation was June 16, 1994. See, 
Preliminary Affirmative Determination of Critical Circumstances; 
Silicon Carbide From the People's Republic of China (59 FR 16795, April 
8, 1994). We were unable to consider the share of domestic consumption 
accounted for by the imports, pursuant to Sec. 353.16(f)(1)(iii), 
because the available data did not permit such a post-filing analysis. 
In addition, we found no evidence of seasonality, pursuant to 19 CFR 
353.16(f)(1)(ii), with respect to PRC exports of certain cased pencils 
to the U.S.
    Based on respondents' shipment information, we find that imports of 
certain cased pencils from the PRC have been massive over a relatively 
short period for the following companies: Shanghai Foreign Trade 
Corporation (SFTC), Shanghai Lansheng, Co., Ltd. (SLC), and China First 
Pencil Co., Ltd. (CFP). In addition, we find that imports from 
Guangdong Stationery & Sporting Goods I/E Corporation (GSSG), the other 
respondent in this investigation, have not been massive.
    Therefore, because there is a history of dumping, and, 
alternatively, importers knew or should have known that the exporters 
were selling the merchandise at less than its fair value, and because 
imports of certain cased pencils have been massive over a relatively 
short period of time, we preliminarily determine that there is a 
reasonable basis to believe or suspect that critical circumstances 
exist with respect to imports of certain cased pencils from SFTC, SLC, 
and CFP. Because imports from GSSG have not been massive, we 
preliminarily determine that there is not a reasonable basis to believe 
or suspect that critical circumstances exist with respect to imports of 
certain cased pencils from GSSG. In addition, with respect to all non-
responding procedures/exporters of certain cased pencils from the PRC, 
we preliminarily determine, as best information available, that 
critical circumstances exist.

Final Critical Circumstances Determination

    We will make a final determination concerning critical 
circumstances when we make our final determination of sales at less 
than fair value in this investigation.

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
International Trade Commission (ITC) of our determination.

Public Comment

    We will accept written comments on this preliminary determination 
of critical circumstances at the public hearing in this case currently 
scheduled for October 5, 1994, at 1:00 p.m. in room 3708.
    This determination is published pursuant to section 733(f) of the 
Act.

    Dated: August 22, 1994.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 94-21122 Filed 8-25-94; 8:45 am]
BILLING CODE 3510-DS-M