[Federal Register Volume 67, Number 143 (Thursday, July 25, 2002)]
[Notices]
[Pages 48612-48614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18856]
[[Page 48612]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-827]
Certain Cased Pencils from the People's Republic of China; Final
Results and Partial Rescission of Antidumping Duty Administrative
Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Final Results and Partial Rescission of Antidumping
Duty Administrative Review.
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SUMMARY: On January 17, 2002, the Department of Commerce (the
Department) published the preliminary results of the administrative
review of the antidumping duty order on pencils from the People's
Republic of China (PRC). The merchandise covered by this order is
certain cased pencils (pencils). We initiated this review on 39 named
respondents.\1\ Three of the named respondents actively participated in
this review: China First Pencil Company, Ltd. (CFP), Shanghai Foreign
Trade Corporation (OIHSFTC), Kaiyuan Group Corporation (Kaiyuan) and
their producers/suppliers. The period of review (POR) is December 1,
1999, through November 30, 2000.
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\1\ We initiated this administrative review on 39 parties. The
following three companies actively participated in this review:
China First Pencil Company, Ltd.; Shanghai Foreign Trade
Corporation; and Kaiyuan Group Corporation. The following three
companies stated that they made no sales of subject merchandise
during the POR: Guangdong Provincial Stationery & Sporting Goods
Import & Export Corporation; Shanghai Three Star Stationery Company,
Ltd.; and Laizhou City Guangming Pencil-Making Lead Co., Ltd. We
sent questionnaires to the following 16 companies and received no
response: Anhui Light Industrial Products I/E Corporation; Anhui
Provincial Imports & Exports Corporation; Anhui Import/Export Group
Corporation; Beijing Pencil Factory; Beijing Light Industrial
Products I/E Corp.; Dalian Light Industrial Products Import/Export
Corporation; Jinan Pencil Factory; Liaoning Light Industrial
Products Import/Export Corporation; Qingdao Light Industrial
Products Import/Export Corporation; Shandong Light Industrial
Products Import/Export Corporation; Sichuan Light Industrial
Products Import/Export Corporation; Songnan Pencil Factory; Tianjin
Stationery and Sporting Goods Import/Export Corporation; Tianjin
Pencil Factory; Xinbang Joint Venture Pencil Factory; and Zhenjiang
Foreign Trade Corporation. We could not locate addresses for the
following 12 companies: Anhui Bengbu Pencil Factory; Anhui
Stationery Company; China Second Pencil Company, Ltd.; Guangdong
Textile Factory; Harbin Pencil Factory; Jiangsu Pencil Factory;
Juihai Pencil Factory; Julong Pencil Factory; New Century; Qingdao
Pencil Factory; Shanghai JV Stationery Co., Ltd./Shanghai Jay-Vee
Stationery Co., Ltd.; Factory; Shanghai JV Stationery Co., Ltd./
Shanghai Jay-Vee Stationery Co., Ltd.; Shenyiang Pencil Factory.
Questionnaires issued to the following five parties were returned to
us as undeliverable: China National Light Industrial Products Import
& Export Corporation (all branches); Dalian Pencil Factory; Donghua
Pencil Factory; Jiangsu Light Industrial Products Import/Export
Group Corp.; Jilin Provincial Machinery & Equipment Import & Export
Corporation.
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Based on our analysis of the comments received, we have made
changes in our margin calculations. Therefore, the final results differ
from the preliminary results. The final weighted-average dumping
margins for the reviewed companies are listed below in the section
entitled ``Final Results of Review.'' For details regarding these
changes, see the section of the notice entitled ``Changes Since the
Preliminary Results.''
EFFECTIVE DATE: July 25, 2002.
FOR FURTHER INFORMATION CONTACT: Paul Stolz, Michele Mire, or Crystal
Crittenden, Office of AD/CVD Enforcement, Office 4, Group II, Import
Administration, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC
20230; telephone (202) 482-4474, (202) 482-4711, or (202) 482-0989,
respectively.
SUPPLEMENTARY INFORMATION:
The Applicable Statute and Regulations
Unless otherwise indicated, all citations to the Tariff Act of
1930, as amended (the Act), are references to the provisions effective
January 1, 1995, the effective date of the amendments made to the Act
by the Uruguay Round Agreements Act. In addition, unless otherwise
indicated, all citations to the Department's regulations are to 19 CFR
Part 351 (2000).
Background
On January 17, 2002, the Department published the preliminary
results of the administrative review of the antidumping duty order on
pencils from the PRC. See Certain Cased Pencils From the People's
Republic of China; Preliminary Results and Rescission in Part of
Antidumping Duty Administrative Review, 67 FR 2402 (January 17, 2002).
We invited parties to comment on our preliminary results of review.
Since the publication of the preliminary results, the following
events have occurred. During January and February 2002 we conducted
verification of the questionnaire responses of CFP, Shanghai Three Star
Stationery Company, Ltd. (Three Star), Guangdong Provincial Stationary
& Sporting Goods Import and Export Corporation (Guangdong), Kaiyuan,
and its supplier, Laizhou Pencil Making Factory (Laizhou). During
March, and April, 2002 interested parties submitted publicly available
information, comments and rebuttal comments regarding surrogate values.
On May 8, 2002, the Department extended the time limit for completion
of the final results until no later than July 16, 2002. See Certain
Cased Pencils from the People's Republic of China: Extension of Time
Limit for Final Results of Antidumping Duty Administrative Review, 67
FR 35790 (May 21, 2002). During April and June, petitioners and
respondents submitted factual information regarding CFP's relationship
with Three Star. Interested parties submitted case briefs and rebuttal
briefs during June, 2002.
The Department has conducted this administrative review in
accordance with section 751 of the Act.
Scope of Review
Imports covered by this review are shipments of certain cased
pencils of any shape or dimension which are writing and/or drawing
instruments that feature cores of graphite or other materials, encased
in wood and/or man-made materials, whether or not decorated and whether
or not tipped (e.g., with erasers, etc.) in any fashion, and either
sharpened or unsharpened. The pencils subject to this order are
classified under item number 9609.10.00 of the Harmonized Tariff
Schedule of the United States (HTSUS). Specifically excluded from the
scope of this order are mechanical pencils, cosmetic pencils, pens,
non-cased crayons (wax), pastels, charcoals, and chalks.
Although the HTSUS item number is provided for convenience and
customs purposes our written description of the scope of the order is
dispositive.
Final Partial Rescission
The Department verified that Laizhou City Guangming Pencil-Making
Lead Co., Ltd. (Laizhou) did not export subject merchandise to the
United States during the POR. Therefore, we are rescinding this review
with respect to Laizhou.
Period of Review
The POR is December 1, 1999 to November 30, 2000.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this administrative review are addressed in the ``Issues and Decision
Memorandum'' (Decision Memorandum) from Bernard T. Carreau, Deputy
Assistant Secretary, Important Administration, to Faryar Shirzad,
Assistant Secretary for Import Administration, dated concurrently with
this notice, which is hereby
[[Page 48613]]
adopted by this notice. A list of the issues which parties have raised
and to which we have responded, all of which are in the Decision
Memorandum, is attached to this notice as an Appendix. Parties can find
a complete discussion of all issues raised in this review and the
corresponding recommendations in this public memorandum, which is on
file in the Central Record Unit, room B-099 of the main Department of
Commerce building. In addition, a complete version of the Decision
Memorandum can be accessed directly on the International Trade
Administration's Web site at www.ia.ita.doc.gov. The paper copy and
electronic version of the Decision Memorandum are identical in content.
Changes Since the Preliminary Results
Based on our analysis of comments received, we have made certain
changes in the margin calculations. We have also corrected certain
programming and clerical errors in our preliminary results, where
applicable.
Rescission of Review With Respect to Guangdong and Three Star
Since the preliminary results in this review, evidence has been
placed on the record regarding the relationship between CFP and Three
Star which supports treating these two entities as a single entity for
purposes of our antidumping analysis. See the Decision Memorandum to
Comment 12. Because we find the CFP/Three Star entity to be distinct
from the Three Star entity in the Three Star/Guangdong sales chain that
was excluded from the antidumping duty order, we are no longer
excluding the Three Star/Guangdong sales chain from the order. Thus, we
have not rescinded this review with respect to Guangdong. We will
instruct U.S. Customs to begin suspending liquidation of entries of
pencils identified as produced by Three Star and exported by Guangdong
effective as of the date of publication of this notice. All merchandise
exported by Guangdong will be subject to cash deposit requirements at
the PRC-wide rate. With respect to Three Star, we note that although
Three Star did not ship subject merchandise directly to the United
States during the POR, we are treating CFP and Three Star as a single
entity for purposes of assigning an antidumping duty rate, and thus we
have not rescinded the review with respect to Three Star. We will
assign the CFP/Three Star entity the antidumping duty rate calculated
for CFP in this review.
Factors of Production
Based on our findings at verification, and our analysis of comments
received, we made adjustments to the factors of production, surrogate
values, and methodologies used to calculate margins in the preliminary
results. These adjustments are listed below and discussed in detail in
the Decision Memorandum.
Surrogate Values
The Department has determined that South Korea, Thailand, and
Indonesia maintain broadly available, non-industry specific export
subsidies which may benefit all exporters to all export markets.
Therefore, for the final results of this review, we eliminated the
quantities and values of imports from these countries from the import
statistics used to calculate surrogate values. See Final Determination
of Sales at Less Than Fair Value: Certain Automotive Replacement Glass
Windshields From the People's Republic of China, 67 FR 6482 (February
12, 2002).
For glue, cores, and lacquer, we eliminated aberrational prices for
merchandise from countries with low import volumes from the Indian
import statistics used to calculate surrogate values. For respondents,
other than CFP, we valued erasers using Indonesian import statistics
because we found the surrogate value calculated from Indian import
statistics to be aberrational. SeeOIHSFTC, CFP, and Kaiyuan Calculation
Memorandums and the Decision Memorandum at Comment 4. For CFP, we
recalculated the surrogate value for erasers using the actual purchase
price paid by CFP to a market economy supplier in U.S. dollars during
the POR. See CFP Calculation Memorandum and the Decision Memorandum at
Comment 3
We recalculated the financial ratios using the financial statements
of a Philippine wood products producer. See OIHSFTC, CFP, and Kaiyuan
Calculation Memorandums and the Decision Memorandum at Comment 5.
CFP
We made minor corrections identified at verification. See CFP
Calculation Memorandum.
OIHSFTC
We revised the methodology used to value certain pencils sold to
the United States by OIHSFTC. OIHSFTC obtained finished pencils from a
supplier (supplier A) which obtained raw pencils from another supplier
(supplier B). In the preliminary results, we valued raw pencils as a
factor of production for supplier A. For the final results of this
review, we modified our approach and valued the factors of production
consumed by supplier B to produce a raw pencil and the factors of
production consumed by supplier A to finish the pencils it subsequently
supplied to OIHSFTC.
We recalculated the dumping margin for uncooperative suppliers
using partial adverse facts available. See OIHSFTC Calculation
Memorandum and the Decision Memorandum at Comment 10.
We made minor corrections identified at verification. See OIHSFTC
Calculation Memorandum.
Kaiyuan
We made minor corrections identified at verification. SeeKaiyuan
Calculation Memorandum and the Decision Memorandum at Comment 11.
Verification
As provided in section 782(i) of the Act, we verified the
information submitted by the respondents for use in our final results.
We used standard verification procedures including examination of
relevant accounting and production records, and original source
documents provided by the respondents.
Final Results of Review
We determine that the following weighted-average percentage margins
exist for the period December 1, 1999 through November 30, 2000:
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Exporter/Manufacturer Margin (percent)
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China First Pencil Co.,Ltd.\2\....................... 11.39
Shanghai Foreign Trade Corporation................... 14.53
Kaiyuan Group Corporation............................ 123.11
PRC Wide-Rate........................................ 123.11
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\2\ As noted above, Shanghai Three Star Stationery Company Ltd. is now
considered to be part of China First Pencil Co., Ltd. Further,
products produced by Shanghai Three Star Stationery
As noted in the preliminary results of review, the firms named in
the notice of initiation that received, but did not respond to our
questionnaire are not eligible for separate rate status and therefore
will be treated as part of the PRC-wide entity. The firms named in the
notice of initiation that did not receive our questionnaire have not
been granted separate rate status in prior segments of this proceeding
and thus will continue to be treated as part of the PRC-wide entity.
[[Page 48614]]
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of this notice of final results of administrative review
for all shipments of pencils from the PRC entered, or withdrawn from
warehouse, for consumption on or after the date of publication, as
provided by section 751(a)(1) of the Act: (1) the cash deposit rates
for the reviewed companies will be the rates shown above; (2) for
previously reviewed or investigated companies not listed above, that
have separate rates, the cash deposit rate will continue to be the
company-specific rate published for the most recent period; (3) the
cash deposit rate for all other PRC exporters will be 123.11 percent;
and 4) the cash deposit rate for non-PRC exporters will be the rate
applicable to the PRC supplier of that exporter.
These deposit requirements shall remain in effect until publication
of the final results of the next administrative review.
Assessment
The Department will determine, and the Customs Service will assess,
antidumping duties on all entries of subject merchandise in accordance
with these final results. For assessment purposes, we have calculated
exporter-specific duty assessment rates for subject merchandise based
on the ratio of the total amount of antidumping duties calculated for
the examined sales during the POR to the total quantity of sales
examined during the POR. We calculated exporter-specific assessment
rates because there was no information on the record which identified
the importers of record. The Department will issue appraisement
instructions directly to Customs.
Reimbursement of Duties
This notice also serves as a final reminder to importers of their
responsibility under 19 CFR 351.402(f) to file a certificate regarding
the reimbursement of antidumping duties prior to liquidation of the
relevant entries during this review period. Failure to comply with this
requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of doubled antidumping duties.
Administrative Protective Orders
This notice also serves as the only reminder to parties subject to
administrative protective orders (APOs) of their responsibility
concerning the return or destruction of proprietary information
disclosed under an APO in accordance with 19 CFR 351.305 of the
Department's regulations. Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
We are issuing and publishing this determination and notice in
accordance with sections section 751(a)(1) and 771(i) of the Act.
Dated: July 16, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix Issues in Decision Memorandum
Comments
Comment 1: Whether to Rescind the Review with Respect to Guangdong/
Three Star
Comment 2: The Appropriate Surrogate Values for Semi-Finished
Pencils
Comment 3: Whether CFP's Erasers Should be Valued Based on
Purchases
Comment 4: Whether Indian Surrogate Values for Erasers, Cores,
Glue, and Lacquer are Aberrational
Comment 5: The Appropriate Surrogate Source for Financial Ratios
Comment 6: Ministerial Error in OIHSFTC's Margin Calculation
Comment 7: Whether India is the Appropriate Principal Surrogate
Market Economy Country
Comment 8: The Appropriate Surrogate Source for Logs and Slats
Comment 9: The Appropriate China-Wide Rate
Comment 10: Use of Partial Adverse Facts Available with Respect to
OIHSFTC's Uncooperative Producers
Comment 11: Verification Discrepancies--Kaiyuan/Laizhou
Comment 12: Whether CFP and Three Star Should be Treated as a
Single Entity for Antidumping Purposes
[FR Doc. 02-18856 Filed 7-24-02; 8:45 am]
BILLING CODE 3510-DS-S