[Federal Register Volume 71, Number 129 (Thursday, July 6, 2006)]
[Notices]
[Pages 38366-38368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10568]


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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 December 28, 2005, the Department of Commerce (the 
Department) published in the Federal Register the preliminary results 
and intent to rescind in part the 2003-2004 administrative review of 
the antidumping duty order on certain cased pencils (pencils) from the 
People's Republic of China (PRC). 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 76755 
(December 28, 2005) (``Preliminary Results''). The period of review 
(POR) is December 1, 2003, through November 30, 2004. We have now 
completed the 2003-2004 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 6, 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, 14th Street and 
Constitution Avenue, NW, Washington, DC, 20230; telephone: (202) 482-
4474 and (202) 482-0650, respectively.

Background

    On December 28, 2005, the Department published the preliminary 
results of this review. See Preliminary Results. The POR is December 1, 
2003, through November 30, 2004. On January 20, 2006, we extended the 
deadline for submission of case briefs and rebuttal briefs to February 
24, 2006, and March 1, 2006, respectively. We also extended the 
deadline for submission of surrogate value information until February 
14, 2006. On February 14, 2006, Sanford LP, Rose Moon, Inc., General 
Pencil Company, Inc., and Musgrave Pencil Company (the domestic 
interested parties) submitted surrogate value information.\1\ On 
February 24, 2006, we received case briefs from respondents China First 
Pencil Co., Ltd. (CFP)/Three Star Stationery Industry Corp. (Three 
Star)(CFP/Three Star),\2\ Orient International Holding Shanghai Foreign 
Trade Co., Ltd. (SFTC), and Shandong Rongxin Import & Export Co. Ltd. 
(Rongxin), and from the domestic interested parties. We received 
rebuttal briefs from CFP/Three Star, SFTC, Rongxin, and the domestic 
interested parties on March 1, 2006.
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    \1\ Domestic interested parties submitted a revised translation 
of certain documents included in this submission on February 16, 
2006.
    \2\ The Department initiated separate reviews of China First 
Pencil Company, Ltd. (CFP) and Shanghai Three Star Stationery 
Industry Corp. (Three Star) based on timely requests from interested 
parties. In the final results of the 2001-2002 administrative review 
the Department collapsed CFP and Three Star for purposes of its 
antidumping analysis. 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), 
and the accompanying Issues and Decision Memorandum at Comment 6. 
The Department continued to collapse CFP and Three Star in the final 
results of the 2002-2003 administrative review. See Certain Cased 
Pencils from the People's Republic of China; Final Results and 
Partial Rescission of Antidumping Duty Administrative Review, 70 FR 
42301 (July 22, 2005) (Pencils 02/03), and the accompanying Issues 
and Decision Memorandum at Comment 1. For this review, the 
Department continues to consider CFP and Three Star (hereinafter 
referred to as CFP/Three Star) to be a single entity.
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    On April 27, 2006, in accordance with section 751(a)(3)(A) of the 
Tariff Act of 1930, as amended (the Act), the Department extended the 
time limit for the final results of this review until June 26, 2006. 
See Certain Cased Pencils from the People's Republic of China: 
Extension of Time Limit for Final Results of Antidumping Duty 
Administrative Review, 71 FR 24839 (April 27, 2006).
    Due to the unexpected emergency closure of the main Commerce 
building on Monday, June 26, 2006, the Department is issuing these 
final results on June 27, 2006, the next business day. See Notice of 
Clarification: Application of ``Next Business Day'' Rule for 
Administrative Determination Deadlines Pursuant to the Tariff Act of 
1930, As Amended, 70 FR 24533 (May 10, 2005).

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

[[Page 38367]]

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.
    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.

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, 70 FR at 76756; see also TCW's February 22, 2005, 
response to the Department's questionnaire. We reviewed U.S. Customs 
and Border Protection (CBP) data and found no evidence that TCW made 
shipments of subject merchandise to the United States during the POR. 
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 Stephen J. Claeys, Deputy 
Assistant Secretary for Import Administration, to David M. Spooner, 
Assistant Secretary for Import Administration, dated June 26, 2006, 
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 http://.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 can be found in the company-
specific calculation memoranda dated June 26, 2006. These changes are 
listed below.
    As discussed fully in the Decision Memorandum, the Department 
corrected the calculation of the surrogate value for pencil slats to 
account for wood lost when pencil slats are produced from lumber for 
use in pencil production for CFP/Three Star, SFTC, and Rongxin. In 
addition, we corrected the calculation of Rongxin's slat surrogate 
value with respect to the percentage of wood lost when pencils are made 
from slats. Furthermore, using updated contemporaneous data obtained 
after publication of the Preliminary Results, we re-calculated the slat 
surrogate value used for producers that produced slats from timber.\3\ 
Finally, we corrected a ministerial error made in CFP/Three Star's 
preliminary margin calculation program with respect to the calculation 
of the value of coal included in the normal value.
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    \3\ We stated in the Preliminary Results that we would attempt 
to obtain timber prices contemporaneous with the POR for use in the 
final results. See the Preliminary Results, 70 FR at 76759.
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Final Results of Review

    We determine that the following weighted-average, ad valorem, 
percentage margins exist for the period December 1, 2003, through 
November 30, 2004:

------------------------------------------------------------------------
                Exporter/Manufacturer                  Margin (percent)
------------------------------------------------------------------------
CFP/Three Star/First/Great Wall/Fang Zheng..........               26.62
SFTC................................................               25.70
Rongxin.............................................               12.37
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.

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. We have calculated customer-
specific antidumping duty assessment amounts for subject merchandise 
based on the ratio of the total amount of antidumping duties calculated 
for the examined sales to the total quantity of sales examined. We 
calculated these assessment amounts because there is no information on 
the record which identifies entered values or the importers of record. 
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

[[Page 38368]]

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: June 27, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.

Appendix Issues in Decision Memorandum

Comments

Comment 1: Whether the Department properly valued pencil cores.
Comment 2: Whether the Department should use one or more respondents' 
market-economy purchase prices of cores, erasers and lacquer to value 
these factors for respondents that did not purchase these items from a 
market-economy supplier.
Comment 3: Whether the Department excluded small quantity/high value 
import transactions from its calculation of surrogate values.
Comment 4: Whether the Department used the wrong HTS category to 
calculate a surrogate value for Rongxin's kaolin clay.
Comment 5: Whether the Department should continue to apply partial 
adverse facts available to SFTC.
Comment 6: Whether the surrogate value for labor is correct.
Comment 7: Whether to continue to treat CFP and Three Star as a single 
entity.
Comment 8: Whether the Department properly accounted for wood loss in 
its calculation of a surrogate value for slats.
Comment 9: Whether the Department used the correct lumber dimensions to 
calculate a surrogate value for slats.
Comment 10: Whether to continue to apply total adverse facts available 
to Guangdong Stationery & Sporting Goods Import & Export Corp.

[FR Doc. E6-10568 Filed 7-5-06; 8:45 am]
BILLING CODE 3510-DS-S