[Federal Register Volume 69, Number 99 (Friday, May 21, 2004)]
[Notices]
[Pages 29266-29267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11575]


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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 13, 2004, the Department of Commerce (the 
Department) published in the Federal Register the preliminary results 
and rescission in part of the 2001-2002 administrative review of the 
antidumping duty order on certain cased pencils (pencils) from the 
People's Republic of China (PRC). The period of review (POR) is 
December 1, 2001, through November 30, 2002. We have now completed the 
2001-2002 administrative review of the order. In our final results, 
based on our analysis of comments received, we amended the preliminary 
results of review. For details regarding these changes, see the section 
of this notice entitled ``Changes Since the Preliminary Results.'' The 
final results are listed below in the ``Final Results of Review'' 
section.

DATES: Effective Date: May 21, 2004.

FOR FURTHER INFORMATION CONTACT: Paul Stolz, Christopher Zimpo, or Magd 
Zalok, 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) 482-2747 and (202) 482-4162, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 13, 2004, the Department published in the Federal 
Register the preliminary results and rescission in part 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, 69 FR 1965 (January 13, 2004) (Preliminary 
Results). We invited parties to comment on our Preliminary Results. On 
February 17, 2004, and February 23, 2004, we received case briefs and 
rebuttal briefs, respectively, from the petitioners,\1\ China First 
Pencil Company, Ltd./Three Star Stationery Industry Corp. (CFP/Three 
Star), Orient International Holding Shanghai Foreign Trade Co., Ltd. 
(SFTC), and Shandong Rongxin Import & Export Company Ltd. (Rongxin) 
(formerly called Kaiyuan Group Corporation).
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    \1\ The petitioners are Sanford LLP, Musgrave Pencil Company, 
Rose-Moon Inc., and General Pencil Company.
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    The Department has conducted this administrative review in 
accordance with section 751 of the Tariff Act of 1930, as amended (the 
Act).

Scope of the Order

    Imports covered by this order are shipments of certain cased 
pencils of any shape or dimension (except as noted below) 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 Schedule 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. Also excluded from the scope of the order 
are pencils with all of the following physical characteristics: (1) 
Length: 13.5 or more inches; (2) sheath diameter: not less than one-
and-one quarter inches at any point (before sharpening); and (3) core 
length: not more than 15 percent of the length of the pencil.
    Although the HTSUS subheading is provided for convenience and 
customs purposes, our written description of the scope of the order is 
dispositive.

Partial Rescission

    The Department preliminarily rescinded this review with respect to 
Tianjin Custom Wood Processing Co., Ltd. (TCW) because TCW reported 
that it did not export subject merchandise to the United States during 
the POR. See the Preliminary Results; see also; TCW's February 21, 
2003, response to the Department's questionnaire. TCW's claim that it 
did not export subject merchandise during the POR is supported by U.S. 
Customs and Border Protection (CBP) data. Moreover, there is no 
evidence on the record of this segment of the proceeding indicating 
that TCW exported subject merchandise during the POR. Therefore, we are 
rescinding this review with respect to TCW.

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 Holly A. Kuga, Acting Deputy 
Assistant Secretary for Import Administration, to James J. Jochum, 
Assistant Secretary for Import Administration, dated May 12, 2004, 
which is hereby 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 the 
electronic version of the Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of the comments received and the results of 
verification, we adjusted certain factors of production information 
that we used

[[Page 29267]]

to calculate dumping margins in the preliminary results of review, and 
corrected certain programming and ministerial errors in our preliminary 
results. These changes are listed below.

All Respondents

    We corrected the pencil slat dimensions used to calculate the 
surrogate value for pencil slats. We also corrected language in the 
margin calculation programs which incorrectly multiplied reported 
plant-to-port distances by 1.4. Additionally, we used the current 
surrogate labor rate in, and excluded unreliable surrogate data for 
cores from, our calculation.

CFP/Three Star

    We corrected the plant-to-port-distance used to calculate the 
surrogate value for inland freight for CFP and Three Star. In addition, 
we corrected certain ministerial errors in CFP/Three Star's margin 
calculation program relating to control numbers. See the CFP/Three Star 
Margin Calculation Analysis memorandum for a list of changes based on 
verification findings. In addition, we excluded certain CFP/Three Star 
U.S. sales from our margin calculation.

Final Results of Review

    We determine that the following weighted-average, ad valorem, 
percentage margins exist for the period December 1, 2001 through 
November 30, 2002:

------------------------------------------------------------------------
                                                                Margin
                    Exporter/manufacturer                      (percent)
------------------------------------------------------------------------
CFP/Three Star..............................................       15.20
SFTC........................................................       10.96
Rongxin.....................................................       27.87
PRC Wide-Rate...............................................      114.90
------------------------------------------------------------------------

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 114.90 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 CBP will assess, antidumping 
duties on all entries of subject merchandise in accordance with these 
final results of review. For the companies subject to this review, we 
calculated exporter-specific assessment rates because there is no 
information on the record which identifies the importers of record. 
Specifically, for CFP/Three Star, SFTC and Rongxin, we calculated duty 
assessment rates for subject merchandise based on the ratio of the 
total amount of antidumping duties calculated for the examined sales to 
the total quantity of those sales. The Department will issue 
appropriate assessment instructions directly to CBP within 15 days of 
publication of these final results of review.

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. 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 751(a)(1) and 771(i) of the Act.

    Dated: May 12, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memorandum

Comments

Comment 1: The Appropriate Surrogate Value for Pencil Cores
Comment 2: Whether China First Pencil Co. Ltd. (CFP)/Three Star 
Stationery Industry Corp. (Three Star) Reported U.S. Sales Made by 
Another PRC Entity
Comment 3: The Appropriate Surrogate Source For Financial Ratios
Comment 4: Ministerial Errors
Comment 5: Whether Three Star Reimbursed Certain U.S. Customers for 
Dumping Duties
Comment 6: Whether the Department Should Continue to Treat CFP and 
Three Star as a Single Entity for Antidumping Duty Purposes
Comment 7: How to Treat Certain Sales With Two Sales Invoices
Comment 8: Whether CFP's Dumping Margin Applies to its Subsidiaries

[FR Doc. 04-11575 Filed 5-20-04; 8:45 am]
BILLING CODE 3510-DS-P