[Federal Register Volume 71, Number 63 (Monday, April 3, 2006)]
[Notices]
[Page 16553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4747]



[[Page 16553]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-827]


Notice of Decision of the Court of International Trade: Certain 
Cased Pencils from the People's Republic of China

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On March 7, 2006, the Court of International Trade (CIT) 
sustained the Department of Commerce's (the Department's) voluntary 
redetermination regarding the 2001-2002 antidumping duty administrative 
review of certain cased pencils (pencils) from the People's Republic of 
China (PRC). In its redetermination, the Department selected a new 
surrogate value for pencil cores which it used to recalculate the 
respondents' dumping margins. Consistent with the decision of the 
United States Court of Appeals for the Federal Circuit (Federal 
Circuit) in The Timken Company v. United States and China National 
Machinery and Equipment Import and Export Corporation, 893 F. 2d 337 
(Fed. Cir. 1990) (Timken), the Department is publishing this notice of 
the CIT's decision which is not in harmony with the Department's 
determination in the 2001-2002 antidumping duty administrative review 
of pencils from the PRC.

EFFECTIVE DATE: April 3, 2006.

FOR FURTHER INFORMATION CONTACT: Magd Zalok or Howard Smith at (202) 
482-4162 or (202) 482-5193, respectively; AD/CVD Operations, Office 4, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    On May 21, 2004, the Department published in the Federal Register, 
the final results of its 2001-2002 antidumping duty administrative 
review of pencils from the PRC. See Certain Cased Pencils from the 
People's Republic of China; Final Results and Partial Rescission of 
Antidumping Duty Administrative Review; 69 FR 29266 (May 21, 2004). In 
that review, the Department used 2002 Monthly Statistics of the Foreign 
Trade of India (MSFTI) to value pencil cores.
    During July 2004, several respondents in the 2001-2002 
administrative review filed complaints with the CIT contesting, among 
other things, the Department's valuation of black and color pencil 
cores. On September 1, 2004, the Department filed a motion for a 
voluntary remand with the CIT with respect to the pencil core issue. On 
September 20, 2004, the CIT remanded this case to the Department to 
conduct further proceedings concerning the valuation of pencil cores. 
On December 20, 2004, the Department issued its redetermination in 
which it recalculated the respondents' dumping margins using a new 
surrogate value for pencil cores (i.e., 2001 MSFTI data, adjusted for 
inflation, rather than 2002 MSFTI data). The recalculated dumping 
margins are as follows: 4.21 percent for Shandong Rongxin Import & 
Export Company, Ltd., 5.63 percent for Orient International Holding 
Shanghai Foreign Trade Co., Ltd., and 16.50 for China First Pencil 
Company, Ltd./Three Star Stationery Industry Corp.. The PRC-wide rate 
was not changed. See Final Results of Voluntary Redetermination 
Pursuant to Court Order, December 20, 2004. On March 7, 2006, the CIT 
sustained the Department's decision, including the redetermination. See 
China First Pencil Co., Ltd., et al v. United States and Sanford 
Corporation, et al. Slip Op. 06-34.

Notification

    In its decision in Timken, the Federal Circuit held that, pursuant 
to 19 U.S.C. 1516a(e), the Department must publish notice of a CIT 
decision which is ``not in harmony'' with the Department's 
determination. With respect to the valuation of pencil cores, the 
above-referenced CIT decision is not in harmony with the Department's 
determination in the final results of the 2001-2002 antidumping duty 
administrative review of pencils from the PRC. Therefore, publication 
of this notice fulfills the Department's obligation under 19 U.S.C. 
1516a(e).
    The Department will continue to suspend liquidation pending the 
expiration of the period to appeal the CIT's March 7, 2006, decision, 
or, if that decision is appealed, pending a ``conclusive'' decision by 
the Federal Circuit. Upon expiration of the period to appeal, or if the 
CIT's decision is appealed and the Federal Circuit's decision is not in 
harmony with the Department's determination in the 2001-2002 
antidumping duty administrative review of pencils from the PRC, the 
Department will publish in the Federal Register a notice of amended 
final results for the 2001-2002 administrative review of pencils.

    March 24, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-4747 Filed 3-31-06; 8:45 am]
BILLING CODE 3510-DS-S