[Federal Register Volume 71, Number 1 (Tuesday, January 3, 2006)]
[Notices]
[Pages 92-94]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-8213]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-570-827)


Notice of Preliminary Results of Antidumping Duty Changed 
Circumstances 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.
SUMMARY: M.A. Notch Corporation (Notch) 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, 
Notch requests that the Department revoke the AD order with respect to 
a large novelty pencil, which is described below. Certain domestic 
interested parties have affirmatively expressed a lack of interest in 
the continuation of the order with respect to this product.\1\ In 
response to the request, the Department initiated a changed 
circumstances review of the AD order on certain cased pencils from the 
PRC.

[[Page 93]]

Interested parties are invited to comment on these preliminary results.
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    \1\ These domestic interested parties are Sanford Corporation, 
Musgrave Pencil Company, Rose Moon, Inc., and General Pencil 
Company, domestic manufacturers of cased pencils, (collectively, the 
domestic interested parties).

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EFFECTIVE DATE: January 3, 2006.

FOR FURTHER INFORMATION CONTACT: Paul Stolz or Charles Riggle, AD/CVD 
Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14\th\ Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone (202) 482-
4474 and (202) 482-0650, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 14, 2005, Notch, a U.S. importer, filed a request asking 
the Department to revoke the AD order on certain cased pencils from the 
PRC with respect to a large novelty pencil. See Notch letter to the 
Secretary, dated April 5, 2005 (Notch Request Letter). Specifically, 
Notch requests that the Department revoke the AD order with respect to 
imports of certain cased pencils meeting the following description: 
novelty jumbo pencil that is octagonal in shape, approximately ten 
inches long, one inch in diameter, and three-and-one eighth inches in 
circumference, composed of turned wood encasing one-and-one half inches 
of sharpened lead on one end and a rubber eraser on the other end. See 
Notch Request Letter at 1. On May 6, 2005, the domestic interested 
parties submitted a letter to the Department stating that they `` * * * 
do not object to exclusion of items meeting the description set forth 
in the quoted description'' (as stated above). On August 22, 2005,\2\ 
the Department initiated a changed circumstances review. See Notice of 
Initiation of Antidumping Duty Changed Circumstances Review: Certain 
Cased Pencils from the People's Republic of China, 70 FR 51336 (August 
30, 2005).
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    \2\ This is the signature date.
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    On August 25, 2005, we informed all interested parties that 
comments on the initiation of the changed circumstances review and/or 
comments with respect to whether the domestic interested parties 
account for substantially all of the production of the domestic like 
product, were due 21 days subsequent to publication of the initiation 
notice in the Federal Register. No interested party submitted comments.

Scope of the Order

    Imports covered by this order are shipments of certain cased 
pencils of any shape or dimension (except as described 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 currently classifiable 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, the written description of the scope of the order is 
dispositive.

Prior Changed Circumstance Rulings

    The Department has published the final results of the following 
changed circumstances reviews to date:
    (1) On November 4, 2003 the Department published the final results 
of a changed circumstances review that excluded from the scope of the 
order 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. See 
Notice of Final Results of Antidumping Duty Changed Circumstances 
Review, and Determination to Revoke Order in Part: Certain Cased 
Pencils from the People's Republic of China, 68 FR 62428 (November 4, 
2003).
    (2) On March 27, 2003 the Department published the final results of 
a changed circumstances review that excluded from the scope of the 
order 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. See Notice of Final Results of 
Antidumping Duty Changed Circumstances Review, and Determination to 
Revoke Order in Part: Certain Cased Pencils from the People's Republic 
of China, 68 FR 14942 (March 27, 2003).

Preliminary Results of AD Changed Circumstances 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)(2) of the Act and section 351.222 (g)(1)(I) of the Department's 
regulations. Based on an affirmative statement by the domestic 
interested parties, producers of the like product, and the fact that no 
party has commented otherwise, we find that no interest exists in 
continuing the AD order with respect to large novelty pencils described 
in the proposed scope language below. 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 novelty pencils that meet the description below.

New Scope of the Order

    Upon publication of the final results of this changed circumstances 
review, if there are no changes from the preliminary results, 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 (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 currently classifiable 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

[[Page 94]]

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.
    In addition, pencils with all of the following physical 
characteristics are excluded from the scope of the order: novelty jumbo 
pencils that are octagonal in shape, approximately ten inches long, one 
inch in diameter before sharpening, and three-and-one eighth inches in 
circumference, composed of turned wood encasing one-and-one half inches 
of sharpened lead on one end and a rubber eraser on the other end. 
Although the HTSUS subheading is provided for convenience and customs 
purposes our written description of the scope of the order is 
dispositive.
    If the final partial revocation occurs, we intend to instruct U.S. 
Customs and Border Protection (CBP) to liquidate, without regard to 
applicable antidumping duties, all unliquidated entries of pencils that 
meet the above-noted exclusion, 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 day after 
the most recent period for which the Department issued assessment 
instructions to CBP (12/1/2000-11/30/2001), in accordance with section 
351.222 of the Department's regulations. We will also instruct CBP 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. See Notice 
of Initiation and Preliminary Results of Changed Circumstances 
Antidumping Duty Administrative Review, and Intent to Revoke Order in 
Part: Certain Cut-To-Length Carbon-Quality Steel Plate Products from 
Japan, 68 FR 1436 (January 10, 2003).
    The current cash deposit rate will remain in effect for all entries 
of subject merchandise until completion of an administrative review.

Public Comment

    Interested parties are invited to comment on these preliminary 
results. 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 30 days of publication of this 
notice. Any hearing, if requested, may 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: December 7, 2005.
Stephen J. Claeys,
Deputy Assistant Secretary for Import Administration.
[FR Doc. E5-8213 Filed 12-30-05; 8:45 am]
BILLING CODE 3510-DS-S