[Federal Register Volume 70, Number 140 (Friday, July 22, 2005)]
[Notices]
[Pages 42301-42303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-14524]


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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.
SUMMARY: On January 12, 2005, the Department of Commerce (the 
Department) published in the Federal Register the preliminary results 
and rescission in part of the 2002-2003 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, 2002, through November 30, 2003. We have now completed the 
2002-2003 administrative review of the order. Based on comments 
received, we have made changes in the dumping margin calculations. 
Therefore, the final results differ from the preliminary results. 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.

EFFECTIVE DATE: July 22, 2005.

FOR FURTHER INFORMATION CONTACT: Paul Stolz or Erin Begnal, AD/CVD 
Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC, 20230; telephone: (202) 482-
4474 and (202) 482-1442, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 12, 2005, the Department published the preliminary 
results of this review. See Certain Cased Pencils from the People's 
Republic of China; Preliminary Results of Antidumping Duty 
Administrative Review and Intent to Rescind in Part, 70 FR 2115 
(Preliminary Results). The POR is December 1, 2002, through November 
30, 2003. On February 11, 2005, we received case briefs from China 
First Pencil Co., Ltd. (CFP)/Three Star Stationery Industry Corp. 
(Three Star)(CFP/Three Star)\1\, Orient

[[Page 42302]]

International Holding Shanghai Foreign Trade Co., Ltd. (SFTC), and 
Shandong Rongxin Import & Export Co. Ltd. (Rongxin), the respondents, 
and Sanford LLP, Musgrave Pencil Company, Rose Moon, Inc., and General 
Pencil Company, domestic interested parties. We received rebuttal 
briefs from CFP/Three Star, SFTC, and Rongxin on February 24, 2005, and 
from the domestic interested parties on February 25, 2005\2\. On May 
19, 2005, we rejected Rongxin's rebuttal brief because it contained new 
argument. Rongxin resubmitted its rebuttal brief on May 23, 2005, in 
accordance with the deadline set by the Department. On May 26, 2005, we 
issued a supplemental questionnaire and requested comments from CFP/
Three Star on documents we placed on the record from a prior review. 
CFP/Three Star submitted its response and comments on June 7, 2005. The 
domestic interested parties submitted comments on CFP/Three Star's 
submission on June 15, 2005. As described in more detail below in 
comment 1, on June 15, 2005, the Department placed an additional 
document on the record of this segment of the proceeding and requested 
that CFP/Three Star and the domestic interested parties submit comments 
by June 20, 2005. CFP/Three Star and the domestic interested parties 
submitted comments on this document on June 20, 2005.
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    \1\ Although we initiated on CFP and Three Star separately, we 
subsequently found them to be a single entity. See Memorandum to The 
File: Administrative Review of the Antidumping Duty Order on Certain 
Cased Pencils from the People's Republic of China - Affiliation and 
Collapsing (December 30, 2004).
    \2\ The Department closed its Washington, D.C. facilities prior 
to 5:00 PM on February 24, 2005, due to inclement weather before the 
domestic interested parties were able to file their rebuttal brief. 
The domestic interested parties submitted their rebuttal brief on 
February 25, 2005.
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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 is rescinding this review with respect to Tianjin 
Custom Wood Processing Co., Ltd. (TCW) because TCW reported it did not 
export subject merchandise to the United States during the POR. See the 
Preliminary Results; see also; TCW's February 19, 2004, 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 and entry documents. 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 Barbara E. Tillman, Acting 
Deputy Assistant Secretary for Import Administration, to Joseph A. 
Spetrini, Acting Assistant Secretary for Import Administration, dated 
July 11, 2005, 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 Records 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 Import 
Administration's Web site at www.ia.ita.doc.gov.frn 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, we have made 
changes in the margin calculations for CFP/Three Star, SFTC and 
Rongxin. The specific calculation changes made can be found in our 
calculation memoranda dated July 11, 2005. These changes are listed 
below.

CFP/Three Star and SFTC

    We collapsed CFP with its subsidiaries Shanghai First Writing 
Instrument Co., Ltd., (First), Shanghai Great Wall Pencil Co., Ltd. 
(Great Wall), and China First Pencil Fang Zheng Co., Ltd. (Fang Zheng). 
We converted transportation expenses from Indian rupees to U.S. dollars 
in the calculation of normal value. We also corrected the calculation 
of cost of manufacturing in the computer program to exclude packing. In 
addition, we corrected the computer program to correctly calculate slat 
consumption for ordinary size pencils.

Final Results of Review

    We determine that the following weighted-average, ad valorem, 
percentage margins exist for the period December 1, 2002, through 
November 30, 2003:

------------------------------------------------------------------------
                Exporter/Manufacturer                  Margin (percent)
------------------------------------------------------------------------
CFP/Three Star/First/Great Wall/Fang Zheng..........                0.61
SFTC................................................               13.25
Rongxin.............................................               22.63
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 exporter that supplied that exporter.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.

[[Page 42303]]

Assessment

    The Department will determine, and CBP will assess, antidumping 
duties on all appropriate 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/First/Great Wall/Fang Zheng, 
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 C.F.R. 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 C.F.R. 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: July, 11, 2005.
Susan H. Kubach,
Acting Assistant Secretary for Import Administration.

Appendix Issues in Decision Memorandum

Comments

Comment 1: CFP and Three Star Affiliation/Collapsing
Comment 2: Surrogate Valuation of Writing Cores
Comment 3: Surrogate Financial Ratios
Comment 4: Pencil Slat Valuation
Comment 5:Clerical Errors: Inland Transportation Charges, Packing 
Labor, Slat Usage Factors
Comment 6: Regression-Based Labor Rate Calculation
Comment 7: CFP's Subsidiaries
Comment 8: Surrogate Value for Kaolin Clay
[FR Doc. 05-14524 Filed 7-21-05; 8:45 am]
BILLING CODE: 3510-DS-S