[Federal Register Volume 68, Number 30 (Thursday, February 13, 2003)]
[Notices]
[Pages 7344-7345]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3591]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-827]


Notice of Initiation and Preliminary Results of Changed 
Circumstances Antidumping Duty Administrative Review, and Intent To 
Revoke Order in Part: Certain Cased Pencils From the People's Republic 
of China

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

ACTION: Notice of initiation and preliminary results of changed 
circumstances antidumping duty administrative review and intent to 
revoke order in part.

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

SUMMARY: In accordance with section 751(b) of the Tariff Act of 1930, 
as amended (the Act), and section 351.216(b) of the Department of 
Commerce's (the Department's) regulations, The Smencil Company (Smencil 
Co.) filed a request for a changed circumstances review of the 
antidumping duty (AD) order on certain cased pencils from the People's 
Republic of China (PRC). Specifically, Smencil Co. requests that the 
Department revoke the AD order with respect to the specialty pencil it 
produces, which is described below. The domestic industry has 
affirmatively expressed a lack of interest in the continuation of the 
order with respect to this product. In response to the request, the 
Department is initiating a changed circumstances review and issuing a 
notice of preliminary intent to revoke, in part, the AD order on 
certain cased pencils from the PRC. Interested parties are invited to 
comment on these preliminary results.

EFFECTIVE DATE: February 13, 2003.

FOR FURTHER INFORMATION CONTACT: Jack K. Dulberger or Howard Smith, AD/
CVD Enforcement, Group II, Office 4, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone 
(202) 482-5505 and (202) 482-5193, respectively.

Background

    On December 23, 2002, Smencil Co. filed a request with the 
Department to revoke the AD order on certain cased pencils from the PRC 
with respect to the patented, scent-infused pencils produced in the PRC 
that it imports. See Smencil Co.'s letter to the Secretary, dated 
December 10, 2002 (Smencil Co. Request Letter). Specifically, Smencil 
Co. requested that the Department revoke the AD order with respect to 
imports meeting the following description: scent-infused pencils 
manufactured in the PRC under U.S. patent number 6,217,242,\1\ (Patent) 
that are made from rolled sheets of paper, namely rolled sheets of 
recycled newspaper, and infused with various scents so as to create 
scented pencils named Smencils. See Smencil Co. Request Letter at 1-2.
---------------------------------------------------------------------------

    \1\ Patent number 6,217,242 (April 17, 2001) describes the 
invention as a ``scented writing implement (comprising) * * * a 
fragrant pencil and a method for making same.'' (See Smencil Co. 
Request Letter at Appendix 2) The patent is owned by Evaco, Ltd., 
doing business as The Smencil Company (See Smencil Co. Request 
Letter at 1).
---------------------------------------------------------------------------

    Smencil Co. attached to its request a letter dated December 10, 
2002 from the petitioners in the pencils AD proceeding,\2\ stating that 
they are not interested in having the AD order on certain cased pencils 
from the PRC apply to pencils manufactured in the PRC under patent 
number 6,217,242 that are made from rolled sheets of recycled newspaper 
that are infused with various scents, thereby creating

[[Page 7345]]

products with odors distinct from those that may emanate from pencils 
made without the scent infusion. The petitioners indicated that the 
exclusion of the above-described pencils from the order should be 
narrowly drawn and not encompass pencils manufactured from recycled 
paper products without the scent infusion or with odors infused by 
means not covered by the Patent.
---------------------------------------------------------------------------

    \2\ The petitioners are the Writing Instrument Manufacturers 
Association, Pencil Section (WIMA) (a trade association comprised, 
in part, of domestic pencil producers) and six domestic pencil 
producers: Aakron Rule, Inc., Dixon-Ticonderoga Corporation, 
Musgrave Pencil Company, Moon Products, Inc., Sanford Corporation, 
and Tennessee Pencil Company (collectively, the petitioners).
---------------------------------------------------------------------------

Scope of the Order

    Imports covered by this order 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 the order are 
classified under subheading 9609.10.00 of the Harmonized Tariff 
Schedules of the United States (HTSUS). Specifically excluded from the 
scope of the order are mechanical pencils, cosmetic pencils, pens, non-
cased crayons (wax), pastels, charcoals, and chalks. Although the HTSUS 
subheading is provided for convenience and for U.S. Customs Service 
(Customs) purposes, our written description of the scope of the order 
is dispositive.

Initiation and Preliminary Results of Changed Circumstances AD 
Administrative Review, and Intent To Revoke in Part

    Section 751(d)(1) of the Act and section 351.222 (g) of the 
Department's regulations provide that the Department may revoke an AD 
or countervailing duty order, in whole or in part, after conducting a 
changed circumstances review and concluding from the available 
information that changed circumstances sufficient to warrant revocation 
or termination exist. The Department may conclude that changed 
circumstances sufficient to warrant revocation (in whole or in part) 
exist when producers accounting for substantially all of the production 
of the domestic like product to which the order pertains have expressed 
a lack of interest in the order, in whole or in part. See section 
782(h) of the Act and section 351.222 (g)(1) of the Department's 
regulations. Based on an affirmative statement by domestic producers of 
the like product, we find that no interest exists in continuing the AD 
order with respect to the pencils described above in the 
``Background,'' section. Therefore, we are hereby notifying the public 
of our preliminary intent to revoke, in part, the AD order on certain 
cased pencils from the PRC with respect to imports of pencils that meet 
the above-mentioned description. We intend to modify the scope of the 
AD order to read as follows:

    Imports covered by this order 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 the 
order are classified under subheading 9609.10.00 of the Harmonized 
Tariff Schedules of the United States (HTSUS). Specifically excluded 
from the scope of the order are mechanical pencils, cosmetic 
pencils, pens, non-cased crayons (wax), pastels, charcoals, chalks, 
and pencils produced under U.S. patent number 6,217,242, from paper 
infused with scents by the means covered in the above-referenced 
patent, thereby having odors distinct from those that may emanate 
from pencils lacking the scent infusion.
    Although the HTSUS subheading is provided for convenience and 
customs purposes our written description of the scope of the order 
is dispositive.

    Furthermore, pursuant to section 351.221(c)(3)(ii) of the 
Department's regulations, because domestic producers have expressed a 
lack of interest, we determine that expedited action is warranted and 
have combined the notices of initiation and preliminary results.
    If the final partial revocation occurs, we intend to instruct 
Customs to liquidate, without regard to applicable antidumping duties, 
all unliquidated entries of pencils that meet the above-noted 
specifications, and to refund any estimated antidumping duties 
collected on such merchandise entered, or withdrawn from warehouse, for 
consumption on or after December 1, 2001 (the first day of the period 
covered by the most recently initiated administrative review), in 
accordance with 19 CFR 351.222. We will also instruct Customs to pay 
interest on such refunds with respect to the subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after 
December 1, 2001, in accordance with section 778 of the Act. The 
current requirement for a cash deposit of estimated antidumping duties 
on pencils that meet the above-noted specifications will continue 
unless, and until, we publish a final determination to revoke the order 
in part.

Public Comment

    Interested parties are invited to comment on these preliminary 
results. Case briefs and/or written comments may be submitted by 
interested parties not later than 14 days after the date of publication 
of this notice. Parties who submit argument in this proceeding are 
requested to submit with the argument (1) a statement of the issue, and 
(2) a brief summary of the argument. Pursuant to section 351.309(d) of 
the Department's regulations, rebuttals to written comments, limited to 
the issues raised in the case briefs, may be filed not later than five 
days after the deadline for submission of case briefs. Also, interested 
parties may request a hearing within 10 days of publication of this 
notice. Any hearing, if requested, will be held no later than two days 
after the deadline for the submission of rebuttal briefs, or the first 
workday thereafter. All written comments shall be submitted in 
accordance with section 351.303 of the Department's regulations and 
shall be served on all interested parties on the Department's service 
list. The Department will issue the final results of this review within 
the time limits established in section 351.216 (e) of its regulations.
    This notice is published in accordance with section 751(b)(1) of 
the Act and sections 351.216 and 351.222 of the Department's 
regulations.

    Dated: February 6, 2003.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 03-3591 Filed 2-12-03; 8:45 am]
BILLING CODE 3510-DS-P