[Federal Register Volume 71, Number 158 (Wednesday, August 16, 2006)]
[Notices]
[Pages 47171-47174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-13470]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-560-818)


Notice of Final Determination of Sales at Less Than Fair Value 
and Affirmative Final Determination of Critical Circumstances: Certain 
Lined Paper Products from Indonesia

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: We determine that imports of certain lined paper products 
(``CLPP'') are being, or are likely to be, sold in the United States at 
less than fair value (``LTFV''), as provided in section 735 of the 
Tariff Act of 1930, as amended (``the Act''). The estimated margins of 
sales at LTFV are shown in the ``Continuation of Suspension of 
Liquidation'' section of this notice. Moreover, we determine that 
critical circumstances exist with respect to PT. Pabrik Kertas Tjiwi 
Kimia Tbk (``TK''), but not with respect to all other Indonesian 
producer/exporters of CLPP from Indonesia. See the ``Critical 
Circumstances'' section below.

EFFECTIVE DATE: August 16, 2006.

FOR FURTHER INFORMATION CONTACT: Brandon Farlander or Damian Felton, 
AD/CVD Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
0182 or (202) 482-0133, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions as provided in section 735 of the Tariff 
Act of 1930, as amended (``the Act''). In addition, unless otherwise 
indicated, all citations to Department of Commerce (``the Department'') 
regulations refer to the regulations codified at 19 CFR part 351 
(2004).

Case History

    The preliminary determination in this investigation was published 
on March 27, 2006. See Notice of Preliminary Determination of Sales at 
Less Than Fair Value: Certain Lined Paper Products from Indonesia, 71 
FR 15162 (March 27, 2006) (``Preliminary Determination''). Since the 
publication of the Preliminary Determination, the following events have 
occurred.
    On March 27, 2006, the respondent, TK submitted a letter alleging 
ministerial errors in the Preliminary Determination. On April 20, 2006, 
the Department issued a memorandum extending the deadline for case 
briefs, hearing request, and rebuttal briefs from April 26, 2006, and 
May 1, 2006, respectively, to May 1, 2006 (by noon), and May 8, 2006, 
respectively. On April 21, 2006, petitioner\1\ filed a letter 
responding to TK's ministerial errors letter. Also on April 21, 2006, 
the Department issued a memorandum finding that TK's March 27, 2006 
allegation did not constitute a ministerial error.
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    \1\ The petitioner in this investigation is the Association of 
American School Paper Suppliers and its individual members 
(MeadWestvaco Corporation; Norcom, Inc.; and Top Flight, Inc.) 
(``petitioner'').
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    On April 24, 2006, TK requested that the Department postpone the 
final determination for sixty days. On April 26, 2006, the Department 
issued a letter responding to letters submitted by TK to the Department 
on March 22 and 27, 2006. The Department informed TK that the 
Department remained confident in the integrity of the administrative 
protective order (``APO'') procedures. On May 1, 2006, TK submitted its 
case brief and submitted a request for a hearing. Also on May 1, 2006, 
the Department issued a memorandum describing the Assistant Secretary 
for Import Administration's tour of a petitioner's facility. On May 5, 
2006, TK submitted a letter stating its dissatisfaction with the 
Department's April 26, 2006, letter.
    On May 8, 2006 (officially received on May 9, 2006), petitioner 
submitted the final business proprietary version of the rebuttal brief 
for the antidumping duty investigation. On May 9, 2006, the Department 
issued a memorandum describing an ex parte meeting between the 
Assistant Secretary for Import Administration and the Government of 
Indonesia (``GOI'') and TK for both the antidumping and countervailing 
duty investigations. Also on May 9, 2006, TK withdrew its May 1, 2006, 
request for a hearing in the antidumping duty investigation. Finally, 
on May 9, 2006, the Department published notification of the 
postponement of the final determination until no later than 135 days 
after the publication of the Preliminary Determination, (i.e., August 
9, 2006).

Period of Investigation

    The period of investigation (``POI'') is July 1, 2004, through June 
30, 2005.

Scope of Investigation

    The scope of this investigation includes certain lined paper 
products, typically school supplies (for purposes

[[Page 47172]]

of this scope definition, the actual use of or labeling these products 
as school supplies or non-school supplies is not a defining 
characteristic) composed of or including paper that incorporates 
straight horizontal and/or vertical lines on ten or more paper sheets 
(there shall be no minimum page requirement for looseleaf filler paper) 
including but not limited to such products as single- and multi-subject 
notebooks, composition books, wireless notebooks, looseleaf or glued 
filler paper, graph paper, and laboratory notebooks, and with the 
smaller dimension of the paper measuring 6 inches to 15 inches 
(inclusive) and the larger dimension of the paper measuring 8-3/4 
inches to 15 inches (inclusive). Page dimensions are measured size (not 
advertised, stated, or ``tear-out'' size), and are measured as they 
appear in the product (i.e., stitched and folded pages in a notebook 
are measured by the size of the page as it appears in the notebook 
page, not the size of the unfolded paper). However, for measurement 
purposes, pages with tapered or rounded edges shall be measured at 
their longest and widest points. Subject lined paper products may be 
loose, packaged or bound using any binding method (other than case 
bound through the inclusion of binders board, a spine strip, and cover 
wrap). Subject merchandise may or may not contain any combination of a 
front cover, a rear cover, and/or backing of any composition, 
regardless of the inclusion of images or graphics on the cover, 
backing, or paper. Subject merchandise is within the scope of this 
investigation whether or not the lined paper and/or cover are hole 
punched, drilled, perforated, and/or reinforced. Subject merchandise 
may contain accessory or informational items including but not limited 
to pockets, tabs, dividers, closure devices, index cards, stencils, 
protractors, writing implements, reference materials such as 
mathematical tables, or printed items such as sticker sheets or 
miniature calendars, if such items are physically incorporated , 
included with, or attached to the product, cover and/or backing 
thereto.
    Specifically excluded from the scope of this investigation are:
 unlined copy machine paper;
 writing pads with a backing (including but not limited to 
products commonly known as ``tablets,'' ``note pads,'' ``legal pads,'' 
and ``quadrille pads''), provided that they do not have a front cover 
(whether permanent or removable). This exclusion does not apply to such 
writing pads if they consist of hole-punched or drilled filler paper;
 three-ring or multiple-ring binders, or notebook organizers 
incorporating such a ring binder provided that they do not include 
subject paper;
 index cards;
 printed books and other books that are case bound through the 
inclusion of binders board, a spine strip, and cover wrap;
 newspapers;
 pictures and photographs;
 desk and wall calendars and organizers (including but not 
limited to such products generally known as ``office planners,'' ``time 
books,'' and ``appointment books'');
 telephone logs;
 address books;
 columnar pads & tablets, with or without covers, primarily 
suited for the recording of written numerical business data;
 lined business or office forms, including but not limited to: 
preprinted business forms, lined invoice pads and paper, mailing and 
address labels, manifests, and shipping log books;
 lined continuous computer paper;
 boxed or packaged writing stationary (including but not 
limited to products commonly known as ``fine business paper,'' 
``parchment paper, `` and ``letterhead''), whether or not containing a 
lined header or decorative lines;
 Stenographic pads (``steno pads''), Gregg ruled (``Gregg 
ruling'' consists of a single- or double-margin vertical ruling line 
down the center of the page. For a six-inch by nine-inch stenographic 
pad, the ruling would be located approximately three inches from the 
left of the book.), measuring 6 inches by 9 inches;
    Also excluded from the scope of this investigation are the 
following trademarked products:
 FlyTM lined paper products: A notebook, notebook 
organizer, loose or glued note paper, with papers that are printed with 
infrared reflective inks and readable only by a FlyTM pen-
top computer. The product must bear the valid trademark 
FlyTM (products found to be bearing an invalidly licensed or 
used trademark are not excluded from the scope).
 ZwipesTM: A notebook or notebook organizer made 
with a blended polyolefin writing surface as the cover and pocket 
surfaces of the notebook, suitable for writing using a specially-
developed permanent marker and erase system (known as a 
ZwipesTM pen). This system allows the marker portion to mark 
the writing surface with a permanent ink. The eraser portion of the 
marker dispenses a solvent capable of solubilizing the permanent ink 
allowing the ink to be removed. The product must bear the valid 
trademark ZwipesTM (products found to be bearing an 
invalidly licensed or used trademark are not excluded from the scope).
 FiveStar[reg]AdvanceTM: A notebook or notebook 
organizer bound by a continuous spiral, or helical, wire and with 
plastic front and rear covers made of a blended polyolefin plastic 
material joined by 300 denier polyester, coated on the backside with 
PVC (poly vinyl chloride) coating, and extending the entire length of 
the spiral or helical wire. The polyolefin plastic covers are of 
specific thickness; front cover is .019 inches (within normal 
manufacturing tolerances) and rear cover is .028 inches (within normal 
manufacturing tolerances). Integral with the stitching that attaches 
the polyester spine covering, is captured both ends of a 1'' wide 
elastic fabric band. This band is located 2-3/8'' from the top of the 
front plastic cover and provides pen or pencil storage. Both ends of 
the spiral wire are cut and then bent backwards to overlap with the 
previous coil but specifically outside the coil diameter but inside the 
polyester covering. During construction, the polyester covering is sewn 
to the front and rear covers face to face (outside to outside) so that 
when the book is closed, the stitching is concealed from the outside. 
Both free ends (the ends not sewn to the cover and back) are stitched 
with a turned edge construction. The flexible polyester material forms 
a covering over the spiral wire to protect it and provide a comfortable 
grip on the product. The product must bear the valid trademarks 
FiveStar[reg]AdvanceTM (products found to be bearing an 
invalidly licensed or used trademark are not excluded from the scope).
 FiveStar FlexTM: A notebook, a notebook organizer, 
or binder with plastic polyolefin front and rear covers joined by 300 
denier polyester spine cover extending the entire length of the spine 
and bound by a 3-ring plastic fixture. The polyolefin plastic covers 
are of a specific thickness; front cover is .019 inches (within normal 
manufacturing tolerances) and rear cover is .028 inches (within normal 
manufacturing tolerances). During construction, the polyester covering 
is sewn to the front cover face to face (outside to outside) so that 
when the book is closed, the stitching is concealed from the outside. 
During construction, the polyester cover is sewn to the back cover with 
the outside of the polyester spine cover to the inside back cover. Both 
free ends (the ends not sewn to the cover and back) are stitched with a 
turned edge construction. Each

[[Page 47173]]

ring within the fixture is comprised of a flexible strap portion that 
snaps into a stationary post which forms a closed binding ring. The 
ring fixture is riveted with six metal rivets and sewn to the back 
plastic cover and is specifically positioned on the outside back cover. 
The product must bear the valid trademark FiveStar FlexTM 
(products found to be bearing an invalidly licensed or used trademark 
are not excluded from the scope).
    Merchandise subject to this investigation is typically imported 
under headings 4820.10.2010, 4820.102020, 4820.10.2050, 4810.22.5044, 
4811.90.9090 of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). The tariff classifications are provided for convenience 
and customs purposes; however, the written description of the scope of 
the investigation is dispositive.

Scope Comments

    Prior to the Preliminary Determination, Continental Accessory 
Corporation requested that ``fashion stationery,'' a niche lined paper 
product, be excluded from the scope of the investigation. We 
preliminarily found that ``fashion notebooks'' fell within the scope of 
this investigation. Because we have received no further scope comments 
in this proceeding, we are making a final determination that ``fashion 
notebooks'' fall within the scope of this investigation. Our analysis 
has not changed since our Preliminary Determination.

Facts Available

    As stated in the Preliminary Determination, section 776(a)(2) of 
the Act provides that, when a respondent withholds information 
requested by the Department, fails to provide such information by the 
deadlines requested, impedes the proceeding, or submits unverifiable 
information, the Department shall use, subject to section 782(d) of the 
Act, facts otherwise available in reaching the applicable 
determination. TK withheld information that was requested by the 
Department, thereby significantly impeding the proceeding. Further, the 
information that was provided could not be verified, as required by 
section 782(i) of the Act because TK withdrew from active participation 
in the review. TK's withdrawal from active participation in the 
proceeding precluded the Department from verifying TK's information. 
The Department warned TK of the consequences for failure to respond. 
See Withdrawal Conversation Memorandum; and see second supplemental 
questionnaire for Section D (January 26, 2006), and third supplemental 
questionnaire on sections A-C (February 3, 2006). Because the 
Department was unable to verify TK's information, we cannot use TK's 
response to calculate a margin. Accordingly, the Department is forced 
to utilize facts otherwise available. See Issues and Decision 
Memorandum for the Final Results of Sales at Less Than Fair Value and 
Affirmative Final Determination of Critical Circumstances: Certain 
Lined Paper Products from Indonesia; from Stephen J. Claeys, to Joseph 
A. Spetrini, at Comment 1 (August 9, 2006) (``Issues and Decision 
Memo'').

Application of Adverse Inferences for Facts Available

    The use of an adverse inference pursuant to section 776(b) is 
warranted in this investigation because TK has not cooperated to the 
best of its ability as it willfully chose not to respond to the 
Department's supplemental questionnaires and withdrew from active 
participation in the investigation. The statute authorizes the 
Department to use adverse inferences when the Department ``finds that 
an interested party has failed to cooperate by not acting to the best 
of its ability to comply with a request for information.'' See section 
776(c) of the Act. Here, TK failed to cooperate to the best of its 
ability to comply with the Department's January 2006, and February 2006 
requests for information. Moreover, TK's withdrawal from active 
participation in the proceeding precluded the Department from verifying 
TK's information. Accordingly, the Department is justified in utilizing 
an adverse inference in this proceeding.
    We have assigned TK the highest margin stated in the notice of 
initiation. See Initiation of Antidumping Duty Investigation: Certain 
Lined Paper Products from Indonesia, 70 FR 58374 (October 6, 2005) 
(``Initiation Notice''). A complete explanation of the selection, 
corroboration, and application of adverse facts available can be found 
in the Preliminary Determination. See Preliminary Determination, 71 FR 
at 15164-66.
    Since the publication of the Preliminary Determination, interested 
parties have commented on our application of adverse facts available 
with respect to the LTFV determination. All AFA issues raised in the 
case and rebuttal briefs by parties to this investigation are addressed 
in the Issues and Decision Memorandum, which is hereby adopted by this 
notice. A list of the issues which parties raised and to which we 
respond in the Issues and Decision Memo is attached to this notice as 
an Appendix. The Decision Memo is a public document and is on file in 
the Central Records Unit, Main Commerce Building, Room B-099, and is 
accessible on the Web at http://ia.ita.doc.gov/frn/index/html. 
Accordingly, for the final determination, we continue to use the 
highest margin stated in Initiation Notice for TK. The ``All Others'' 
rate remains unchanged as well. See Decision Memo at Comments 1-11.

Final Critical Circumstances Determination

    On November 28, 2005, the petitioner in this investigation 
submitted an allegation of critical circumstances with respect to 
imports of CLPP from Indonesia. On March 27, 2006, the Department 
published its Preliminary Determination that it had reason to believe 
or suspect critical circumstances exist with respect to imports of CLPP 
from Indonesia. See Preliminary Determination, 71 FR at 15166-67. We 
now find that critical circumstances exist for imports of CLPP from 
Indonesia. See Issues and Decision Memo at Comment 12.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing CBP to continue to suspend liquidation of all entries of 
subject merchandise from Indonesia, that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
Preliminary Determination for ``all other'' Indonesian exporters. For 
PT. Pabrik Kertas Tjiwi Kimia Tbk, the Department will direct CBP to 
continue to suspend liquidation of all entries of subject merchandise 
that are entered, or withdrawn from warehouse, on or after 90 days 
before the date of publication of the Preliminary Determination. CBP 
shall continue to require a cash deposit or posting of a bond equal to 
the estimated amount by which the normal value exceeds the U.S. price 
as shown below. These suspension of liquidation instructions will 
remain in effect until further notice.
    We determine that the following dumping margins exist for the POI:

------------------------------------------------------------------------
               Manufacturer or Exporter                 Margin (percent)
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PT. Pabrik Kertas Tjiwi Kimia Tbk.....................            118.63
All Others............................................             97.85
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International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our determination. The ITC 
will determine, within 45 days, whether imports of subject merchandise 
from Indonesia are causing material injury, or threaten material 
injury, to an industry in the United States. If the ITC determines that 
material injury or threat of injury does not exist, this proceeding 
will be terminated and all securities posted will be refunded or 
canceled. If the ITC determines that such injury does exist, the 
Department will issue an antidumping duty order directing CBP officials 
to assess antidumping duties on all imports of the subject merchandise 
entered, or withdrawn from warehouse for consumption on or after the 
effective date of the suspension of liquidation.
    This notice also serves as a reminder to parties subject to APO of 
their responsibility concerning the disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 351.305. 
Timely notification of return/destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and the terms of an APO is a sanctionable 
violation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: August 9, 2006.
Joseph A Spetrini,
Acting Assistant Secretaryfor Import Administration.
[FR Doc. E6-13470 Filed 8-15-06; 8:45 am]
BILLING CODE 3510-DS-S