[Federal Register Volume 71, Number 174 (Friday, September 8, 2006)]
[Notices]
[Pages 53079-53086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-7538]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-901]
Notice of Final Determination of Sales at Less Than Fair Value,
and Affirmative Critical Circumstances, In Part: Certain Lined Paper
Products From the People's Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: September 8, 2006.
SUMMARY: We determine that imports of certain lined paper products
(``CLPP'') from the People's Republic of China (``PRC'') 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 ``Final Determination'' section of this notice. Moreover, we
determine that critical circumstances exist with regard to certain
imports of CLPP from the PRC. See the ``Critical Circumstances''
section below.
FOR FURTHER INFORMATION CONTACT: Marin Weaver or Frances Veith, 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-
2336 or 482-4295, respectively.
SUPPLEMENTARY INFORMATION:
Case History
On April 17, 2006, the Department published in the Federal Register
(``FR'') the preliminary determination that CLPP from the PRC are
being, or are likely to be, sold in the United States at LTFV, as
provided in section 733 of the Act, covering three exporters and
producers as mandatory respondents \1\ and 27 separate-rate
respondents.\2\ See Preliminary Determination of Sales at Less Than
Fair Value, Affirmative Critical Circumstances, In Part, and
Postponement of Final Determination: Certain Lined Paper Products from
the People's Republic of China. 71 FR 16965 (April 17, 2006)
(``Preliminary Determination''). Since the publication of the
Preliminary Determination the following events have occurred.
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\1\ (1) Watanabe Paper Product (Shanghai) Co., Ltd. (``Watanabe
Shanghai''); Hotrock Stationery (Shenzhen) Co. (``Watanabe
Shenzhen''); and Watanabe Paper Product (Linqing) Co., Ltd.
(``Watanabe Linqing''), collectively (the ``Watanabe Group''); (2)
Atico International (HK) Ltd. & Atico Overseas Ltd. (collectively
``Atico''); and (3) Shanghai Lian Li Paper Products Co., Ltd.
(``Lian Li''). On January 26, 2006, Atico submitted a letter
informing the Department that it was unable to participate further
in this investigation. As in the Preliminary Determination, we find
that Atico does not merit a separate rate and will be subject to the
PRC-wide entity. See The PRC-Wide Rate and Use of Adverse Facts
Available section for further discussion..
\2\ Anhui Light Industries International Co., Ltd. (``Anhui
Light''), Changshu Changjiang Printing Co., Ltd. (``Changjiang''),
Chinapack Ningbo Paper Products Co., Ltd. (``Chinapack''), Dongguan
Yizhi Gao Paper Products Ltd. (``Yizhi Gao''), Essential Industries
Limited (``Essential''), Fujian Hengda Group Co., Ltd. (``Hengda''),
Haijing Stationery (Shanghai) Co., Ltd. (``Haijing''), Excel Sheen
Limited (``Excel''), Maxleaf Stationary Ltd. (``Maxleaf ''), Jiaxing
Te Gao Te Paper Products Co., Ltd. (``Te Gao Te''), Linqing Silver
Star Paper Products Co., Ltd. (``Linqing Silver''), MGA
Entertainment (H.K.) Limited (``MGA''), Ningbo Guangbo Imports and
Exports Co. Ltd. (``Ningbo''), Orient International Holding Shanghai
Foreign Trade Co., Ltd. (``Orient''), Paperline Limited
(``Paperline''), Planet (Hong Kong) International Company Ltd.
(``Planet HK''), Planet International Company Ltd. (``Planet''),
Shanghai Pudong Wenbao Paper Products Factory (``Wenbao Paper''),
Shanghai Foreign Trade Enterprise Co., Ltd. (``SFTE''), Sunshine
International Group (HK) Ltd. (``Sunshine''), Suzhou Industrial Park
Asia Pacific Paper Converting Co., Ltd. (``Suzhou''), Suzhou
Industrial Park You-You Trading Co., Ltd. (``You You Trading''), Wah
Kin Stationery and Paper Product Limited (``Wah Kin''), and Yalong
Paper Products (Kunshan) Co., Ltd. (``Yalong''), Shanghai Lansheng
Stationery & Sporting Goods Import & Export Co., Ltd.
(``Lansheng''), Yantai License Printing & Making Co., Ltd.
(``Yantai''), You-You Paper Products (Suzhou) Co., Ltd. (``You-
You''), Paperline Limited (``Paperline''), and Shanghai Pudong
Wenbao Paper Products Factory (``Wenbao Paper''). Also, Paperline
and Wenbao Paper are collectively known as (``Wenbao'') and Planet
and Planet Hong Kong are collectively known as (``Planet
International'').
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On April 13, 2006, we sent a separate-rate verification agenda to
separate-rate applicants, Planet International. On April 18, 2006,
Planet International notified the Department of its withdrawal from the
verification. On May 4, 2006, we sent a separate-rate verification
agenda to a separate-rate applicant, Lansheng, and on May 8, 2006, it
notified the Department of its withdrawal from the verification. From
May 8 through 18, 2006, the Department conducted a sales verification
of Lian Li and a factors verification of its unaffiliated producers
Shanghai Sentian Paper Products Co., Ltd. (``Sentian''),
[[Page 53080]]
and Shanghai Miaopanfang Paper Products Co., Ltd. (``MPF''). From May
29 through June 9, 2006, the Department conducted a sales and factors
verification of Watanabe Linqing and Watanabe Shenzhen. See
``Verification'' Section below for additional information.
On June 1, 2006, the Department published in the FR the notice of
amended preliminary determination to correct a ministerial error
discovered with respect to the antidumping duty margin calculation for
Lian Li, which also affected all companies for which the Department
granted separate-rate status. We also preliminarily granted separate-
rate status for You-You. See Notice of Amended Preliminary
Determination of Sales at Less than Fair Value: Certain Lined Paper
Products from the People's Republic of China, 71 FR 31159 (June 1,
2006) (``Amended Preliminary Determination'').
On June 13, 2006, Watanabe, Lian Li, and Petitioner \3\ filed
surrogate value information. On June 23, 2006, Petitioner filed a
rebuttal surrogate value submission.
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\3\ The Association of American School Paper Suppliers and its
individual members (MeadWestvaco Corporation; Norcom, Inc.; and Top
Flight, Inc.).
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We invited parties to comment on our Preliminary Determination and
verification reports. Case briefs were filed with the Department on
July 28, 2006, by Excel, a separate-rate respondent; on July 31, 2006,
by the Watanabe Group, Lian Li, and by separate-rate respondents MGA,
Maxleaf, Te Gao Te, and Wenbao; and on August 1, 2006, by
Petitioner.\4\ On August 7, 2006, Watanabe and Lian Li filed rebuttal
briefs responding to issues raised in the case briefs. On August 8,
2006, Petitioner filed a rebuttal brief.\5\ On August 9, 2006, we
rejected Petitioner's rebuttal brief because it contained argument that
did not constitute a rebuttal. (On August 10, 2006, Petitioner timely
refiled its redacted rebuttal brief.) On August 9, 2006, Petitioner
filed a rebuttal brief commenting only on issues raised in Maxleaf's
brief.\6\
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\4\ This case brief was timely because one copy was originally
filed on July 31, 2006, as ``bracketing not final.''
\5\ This rebuttal brief was timely because one copy was
originally filed on August 7, 2006, as ``bracketing not final.''
\6\ On August 4, 2006, we extended the time in which to file
rebuttal to the briefs filed by Maxleaf and MGA due to a delay in
the receipt of these briefs by the other parties.
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Period of Investigation
The period of investigation is January 1, 2005, through June 30,
2005.
Non-Market Economy Status of the PRC
On December 22, 2005, the Watanabe Group submitted a request that
the Department reevaluate the PRC's status as a non-market economy
(NME) country under the U.S. antidumping law. On February 2, 2006, the
Department received a submission from the PRC Ministry of Commerce
(``MOFCOM'') expressing support for the Watanabe Group's request.
The Department has treated the PRC as an NME country in all past
antidumping duty investigations and administrative reviews. See, e g.,
Notice of Final Determination of Sales at Less Than Fair Value and
Final Partial Affirmative Determination of Critical Circumstances:
Diamond Sawblades and Parts Thereof from the People's Republic of
China, 71 FR 29303 (May 22, 2006); Notice of Final Determination of
Sales at Less Than Fair Value: Certain Artist Canvas from the People's
Republic of China, 71 FR 16116 (March 30, 2006); and Notice of Final
Determination of Sales at Less Than Fair Value: Chlorinated
Isocyanurates From the People's Republic of China, 70 FR 24502 (May 10,
2005). A designation as an NME country remains in effect until it is
revoked by the Department. See section 771(18)(C)(i) of the Act.
The Department issued a memorandum to the file on May 15, 2006,
determining that the Department shall continue to treat the PRC as an
NME for purposes of the U.S. antidumping law. In the May 15 memorandum,
the Department focused mainly on distortions in the banking sector.
However, the Department also stated in that memorandum that it would
issue a follow-up analysis concerning all six statutory factors that
govern NME-country designation. Accordingly, the Department issued a
memorandum to the file on August 30, 2006, providing the full
underlying analysis of the May 15 decision to continue the PRC's NME
designation.
Scope of Investigation \7\
The scope of this investigation includes certain lined paper
products, typically school supplies,\8\ composed of or including paper
that incorporates straight horizontal and/or vertical lines on ten or
more paper sheets,\9\ 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 petition 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.
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\7\ The Department has received several requests for scope
clarifications from SchoolMax LLC, GEM Group Incorporated, Avenues
in Leather, Inc., and ACCO Brands Corporation. The department has
not addressed these requests in this final determination. However,
the Department will consider the issues raised in these requests as
scope requests in the event this proceeding goes to order.
\8\ For purposes of this scope definition, the actual use or
labeling of these products as school supplies or non-school supplies
is not a defining characteristic.
\9\ There shall be no minimum page requirement for looseleaf
filler paper.
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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;
[[Page 53081]]
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,\10\
measuring 6 inches by 9 inches; Also excluded from the scope of this
investigation are the following trademarked products:
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\10\ ``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.
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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 \11\
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\11\ Products found to be bearing an invalidly licensed or used
trademark are not excluded from the scope.
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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.\12\
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\12\ Products found to be bearing an invalidly licensed or used
trademark are not excluded from the scope.
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FiveStar[supreg]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 caputred 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[supreg]AdvanceTM.\13\
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\13\ Products found to be bearing an invalidly licensed or used
trademark are not excluded from the scope.
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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 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.\14\
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\14\ Products found to be bearing an invalidly licensed or used
trademark are not excluded from the scope.
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Merchandise subject to this proceeding is typically imported under
headings 4810.22.5044, 4811.90.9090, 4820.10.2010, 4820.10.2020,
4820.10.2050, and 4820.10.4000 of the Harmonized Tariff Schedule of the
United States (HTSUS).\15\ The tariff classifications are provided for
convenience and customs purposes; however, the written description of
the scope of the proceeding is dispositive.
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\15\ During the investigation additional HTSUS headings were
identified.
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Verification
As provided in section 782(i) of the Act, we verified the
information submitted by two mandatory respondents: The Watanabe Group
and Lian Li and two of Lian Li's suppliers, Sentian and MPF, for use in
our final determination. See the Department's verification reports on
the record of this investigation in the Central Records Unit (``CRU''),
Room B-099 of the main Commerce Department building. For all verified
companies, we used standard verification procedures, including
examination of relevant accounting and production records, as well as
original source documents provided by respondents.
Analysis of Comments Received
All issues raised in the post-preliminary comments by parties in
this investigation are addressed in the Issues and Decision Memorandum,
dated August 30, 2006 (``Issues and Decision Memo''), 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 Issues and Decision Memo is a public
document which is on file in CRU in room B-099 in the main Department
building, and is accessible on the Web at http://ia.ita.doc.gov/frn.
The paper copy and electronic version of the memorandum are identical
in content.
Critical Circumstances
On November 29, 2005, Petitioner alleged that there was a
reasonable basis to believe or suspect critical circumstances existed
with respect to the antidumping investigation of CLPP from the PRC. In
the Preliminary Determination, the Department found that critical
circumstances existed for imports of CLPP from Changjiang,
[[Page 53082]]
Hengda, Linqing Silver, SFTE, Wenbao Paper, Paperline, Wah Kin, and the
PRC-wide entity. In addition, we found that critical circumstances did
not exist for Anhui Light, Chinapack, Essential Industries Limited,
Excel, Haijing, Te Gao Te, Lian Li, MGA, Ningbo, Orient, Planet
International, Sunshine, Suzhou, You-You Trading, the Watanabe Group,
and Yalong. See Memorandum to Stephen Claeys from Juanita Chen through
Robert Bolling and Wendy Frankel: Lined Paper Products from the
People's Republic of China: Preliminary Determination of Critical
Circumstances, dated April 7, 2006 (``Prelim Critical Circumstances
Memo'').
Section 735(a)(3) of the Act provides that if the final
determination of the Department is affirmative, then that fmding shall
also include a finding of whether: (A)(i) There is a history of dumping
and material injury by reason of dumped imports in the United States or
elsewhere of the subject merchandise; or (ii) the person by whom, or
for whose account, the merchandise was imported knew or should have
known that the exporter was selling the subject merchandise at less
than its fair value and that there would be material injury by reason
of such sales; and (B) There have been massive imports of the subject
merchandise over a relatively short period. Section 351.206(h)(1) of
the Department's regulations provides that, in determining whether
imports of the subject merchandise have been ``massive,'' the
Department normally will examine: (i) The volume and value of the
imports; (ii) seasonal trends; and (iii) the share of domestic
consumption accounted for by the imports. In addition, section
351.206(h)(2) of the Department's regulations provides that in general,
an increase in imports of at least 15 percent during the ``relatively
short period'' over the imports during an immediately preceding period
of comparable duration may be considered ``massive.''
Based on the changes made to both the comparison and base periods
and as discussed further in the Issues and Decision Memo at Comment 26,
the Department has re-examined its preliminary critical circumstances
finding. For the final determination, we find critical circumstances
exist for Changjiang, Hengda, Linqing Silver, SFTE, Wah Kin, Maxleaf,
MGA, Yantai, and the PRC-wide entity. In addition, we find critical
circumstances do not exist for Anhui Light, Chinapack, Essential,
Excel, Haijing, Te Gao Te, Lian Li, Ningbo, Orient, Sunshine, Suzhou,
You-You Trading, the Watanabe Group, Yalong, You-You, Wenbao Paper, and
Paperline. See Memorandum to Stephen J. Claeys, Deputy Assistant
Secretary, through Wendy J. Frankel, Office Director, from Charles
Riggle, Program Manager: Lined Paper Products from the People's
Republic of China: Final Determination of Critical Circumstances, dated
August 30, 2006.
Surrogate Country
In the Preliminary Determination, we stated that we had selected
India as the appropriate surrogate country to use in this investigation
for the following reasons: (A) India is at a level of economic
development comparable to that of the PRC, and (B) India is a
significant producer of comparable merchandise. Furthermore, we have
reliable data from India that we can use to value the factors of
production. See Preliminary Determination at 19699, 19700. For the
final determination, we made no changes to our findings with respect to
the selection of a surrogate country.
Affiliation
In the Preliminary Determination, based on the evidence on the
record, we preliminarily found that members of the Watanabe Group are
affiliated pursuant to section 771(33) of the Act. We are also treating
them as a single entity for purposes of this investigation. See
Memorandum to Wendy Frankel, Director, from Charles Riggle, Program
Manager: Antidumping Duty Investigation of Certain Lined Paper Products
from the People's Republic of China: Affiliation and Treatment of the
Watanabe Group as a Single Entity, dated April 7, 2006. Since the
Preliminary Determination, the Department has found no information that
would rebut this determination. Therefore, the Department continues to
find that members of the Watanabe Group are affiliated, pursuant to
section 771(33) of the Act, for this final determination.
Separate Rates
Since the Preliminary Determination and the Amended Preliminary
Determination, the Department has received additional information from
Yantai, Maxleaf, and Excel, allowing the Department to determine these
companies' eligibility for separate-rate status. Therefore, for
purposes of this final determination, the Department is granting
separate-rate status to the following companies: the Watanabe Group,
Lian Li, Anhui Light, Changjiang, Chinapack, Essential, Excel, Hengda,
Haijing, Te Gao Te, Linqing Silver, Maxleaf, MGA, Ningbo, Orient,
Paperline, Wenbao Paper, SFTE, Sunshine, Suzhou, You-You, You-You
Trading, Wah Kin, Yalong, and Yantai. In addition, the Department
attempted to conduct verifications of two separate-rate applicants, (i)
Lansheng and (ii) Planet International,\16\ both of whom withdrew from
participating in verification.\17\. For further discussion of these
changes in separate rates, see Final Determination Separate Rates
Memorandum: Certain Lined Paper Products from the People's Republic of
China, dated August 30, 2006. Because we begin with the presumption
that all companies within an NME country are subject to government
control and because only the companies listed under the ``Final
Determination Margins'' section below have overcome that presumption,
we are applying a single antidumping rate--the PRC-wide rate--to all
other exporters of subject merchandise from the PRC. Such companies did
not demonstrate entitlement to a separate rate. See, e.g., Final
Determination of Sales at Less Than Fair Value: Synthetic Indigo from
the People's Republic of China, 65 FR 25706 (May 3, 2000). The PRC-wide
rate applies to all entries of subject merchandise except for entries
from the respondents which are listed in the ``Final Determination
Margins'' section below (except as noted).
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\16\ The Department sent a verification agenda to Planet
International.
\17\ Therefore, neither of these entities has demonstrated its
eligibility for separate-rate status. Accordingly, Lansheng and
Planet International will be considered part of the PRC-wide entity
for purposes of this final determination.
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Changes Since the Preliminary Determination
We have made the following changes since the Preliminary
Determination:
Changes That Affect Both the Watanbe Group and Lian Li
Where we used domestic prices as surrogate values we based
freight for inputs on the actual distance from the input supplier to
the site at which the input was used. See Issues and Decision Memo at
Comment 2.
We have used the year-ended March 31, 2005, financial
statements of Sundaram Multi Pap Ltd. and Shiv Ganga Paper Converters
Pvt. Ltd. to value factory overhead, selling, general and
administrative expenses, and profit. See Issues and Decision Memo at
Comment 1.
Changes for the Watanabe Group
Based on the information in Watanabe Linqing's minor
corrections at verification, we have recalculated tbe
[[Page 53083]]
zinc wire usage rates for the necessary control numbers (``CONNUM''s)
and valued this input with Indian Harmonized Tarrif Schedule number
7217.20.00.\18\ See the Watanabe Group's May 31,2006, submission
(``Watanabe Linqing Minor Corrections'').
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\18\ This surrogate value was used at the Preliminary
Determination to value Lian Li's zinc wire. See memorandum to Wendy
J. Frankel Re: Preliminary Determination of the Investigation of
Certain Lined Paper Products from the People's Republic of China:
Factors-of-Production Valuation for Preliminary Determination (April
7, 2006).
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We determined that Watanabe Linqing had unreported U.S.
sales. See Decision Memo at Comment 8. We have assigned as adverse
facts available (``AFA'') to the Watanabe Group the initiation rate of
258.21 percent for those unreported sales.
Based on verification findings, we are not granting the
Watanabe Group a by-product offset. See Issues and Decision Memo at
Comment 11.
In their verification minor corrections, both Watanabe
Shenzhen and Watanabe Linqing identified certain observations for which
they had misreported shipment dates. See Watanabe Linqing Minor
Corrections and the Watanabe Group's June 7, 2006, submission
containing Watanabe Shenzhen's minor corrections. During the course of
verification, the Department identified additional observations for
which shipment date and/or payment date had been misreported. See
Memorandum to the File Re: Verification of the Sales and Factors
Response of Watanabe Paper Product (Linqing) Co., Ltd. in the
Antidumping Investigation of Certain Lined Paper from the People's
Republic of China (``Watanabe Linqing Verification Report'') (July 21,
2006) and Memoradum to the File Re: Verification of the Sales and
Factors Response of Hotrock Stationery (Shenzhen) Co., Ltd. in the
Antidumping Duty Investigation of Certain Lined Paper Products from the
People's Republic of China (``Watanabe Shenzhen Verification Report'')
(July 21, 2006). We have corrected these dates for the final results.
During the course of the Watanabe Shenzhen verification we
found that a billing adjustment (``BILLADJU'') was misreported and we
have corrected this for this final determination. See Watanabe Shenzhen
Verification Report at 19.
In the Watanabe Linqing Minor Corrections, Watanabe
Linqing stated that it had misreported indirect labor (``INDLAB'')
hours for January. This affected one matching CONNUM which we have
corrected for this final determination.
Changes for Lian Li
We used the Indian domestic purchase prices for creamwove
paper from Indian Printer and Publisher (``IPP'') to calculate a simple
average ofthe available POI IPP prices reflecting the GSM weights
reported by Lian Li to value Lian Li's insert paper. See Issues and
Decision Memo at Comment 4.
For Lian Li's white paperboard, white/white paperboard,
and grey/white board, we used the IPP paperboard price data to
calculate a simple average of the available POI IPP prices reflecting
the GSM weights used by Lian Li in its production of in-scope
merchandise. See Issues and Decision Memo at Comment 4.
We used the Indian domestic purchase prices for creamwove
paper from IPP to calculate a simple average of the available POI IPP
prices which reflect the GSM weights used by Lian Li to value Lian Li's
recycled paper. See Issues and Decision Memo at Comment 5.
We applied AFA to Lian Li's agency sales. See Issues and
Decision Memo at Comment 15.
Consistent with the Department's practice, for Lian Li's
products that have a metal cover and back, we have included in the
normal value of these products a value for the metal covers and backs.
We also added to the U.S. price the same value for metal covers and
backs. See Issues and Decision Memo at Comment 17.
We applied AFA to Lian Li's paper consumption for its
producers, Sentian and MPF. See Issues and Decision Memo at Comment 18.
For Lian Li's producer, MPF, we corrected electricity
consumption based on a minor correction found at verification. See
Issues and Decision Memo at Comment 21.
We found that it is not appropriate to grant a by-product
offset for Lian Li's producers Sentian and MPF. See Issues and Decision
Memo at Comment 23.
In the preliminary determination's SAS calculation, we
inadvertently truncated the reported thread consumption to four decimal
places when we converted Lian Li's submitted factors of production
(``FOP'') Excel worksheet database, which had the effect of setting the
values to zero. For the final determination, for those products using
this material input, we have corrected the Department's error and have
included Lian Li's reported consumption value for thread. See Issues
and Decision Memo at Comment 24
We have treated polyethylene film as a direct material
input, where Lian Li sold filler paper bound by polyethylene film or
where we were able to identify multi-pack notebooks bound in the same
way. See Issues and Decision Memo at Comment 25.
In the preliminary determination's SAS calculation, we
inadvertently assigned an incorrect variable name to domestic freight.
We have corrected this for the final determination. See Memorandum to
The File, through Charles Riggle, Program Manager, from Frances Veith,
International Trade Compliance Analyst: Final Determination in the
Investigation of Certain Lined Paper Products from the People's
Republic of China: Calculation Memorandum, Shanghai Lian Li Paper
Products Co. Ltd.
The PRC-Wide Rate and Use of Adverse Facts Available
Sections 776(a)(l) and (2) of the Act provide that the Department
shall apply ``facts otherwise available'' if necessary information is
not on the record or an interested party or any other person (A)
withholds information that has been requested, (B) fails to provide
information within the deadlines established, or in the form and manner
requested by the Department, subject to subsections (c)(1) and (e) of
section 782, (C) significantly impedes a proceeding, or (D) provides
information that cannot be verified as provided by section 782(i) of
the Act.
Where the Department determines that a response to a request for
information does not comply with the request, section 782(d) of the Act
provides that the Department will so inform the party submitting the
response and will, to the extent practicable, provided that party the
opportunity to remedy or explain the deficiency. If the party fails to
remedy the deficiency within the applicable time limits and subject to
section 782(e) of the Act, the Department may disregard all or part of
the original and subsequent responses, as appropriate. Section 782(e)
of the Act provides that the Department ``shall not decline to consider
information that is submitted by an interested party and is necessary
to the determination but does not meet all applicable requirements
established by the administering authority'' if the information is
timely, can be verified, is not so incomplete that it cannot be used,
and if the interested party acted to the best of its ability in
providing the information. Where all of these conditions are met, the
statute requires the Department to use the information if it can do so
without undue difficulties.
[[Page 53084]]
Section 776(b) of the Act further provides that the Department may
use an adverse inference in applying the facts otherwise available when
a party has failed to cooperate by not acting to the best of its
ability to comply with a request for information. Section 776(b) of the
Act also authorizes the Department to use as AFA, information derived
from the petition, the final determination, a previous administrative
review, or other information placed on the record.
In selecting a rate for AFA, the Department selects a rate that is
sufficiently adverse ``as to effectuate the purpose of the facts
available rule to induce respondents to provide the Department with
complete and accurate information in a timely manner.'' See Final
Determination of Sales at Less Than Fair Value: Static Random Access
Memory Semiconductors from Taiwan, 63 FR 8909, 8932 (February 23,
1998). It is the Department's practice to select, as AFA, the higher of
the (a) highest margin alleged in the petition, or (b) the highest
calculated rate of any respondent in the investigation. See Final
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled
Carbon Quality Steel Products from the People's Republic of China, 65
FR 34600 (May 31, 2000), and accompanying Issues and Decision
Memorandum, at ``Facts Available.'' We find that, because the PRC-wide
entity did not respond to our request for information, it has failed to
cooperate to the best of its ability. As in the Preliminary
Determination, we have assigned to the PRC-wide entity a margin based
on information in the petition because the margins derived from the
petition are higher than the calculated margins for the selected
respondents in this case.
Corroboration
Section 776(c) of the Act provides that, when the Department relies
on secondary information rather than on information obtained in the
course of an investigation or review, it shall, to the extent
practicable, corroborate that information from independent sources that
are reasonably at its disposal. Secondary information is defined as
``[i]nformation derived from the petition that gave rise to the
investigation or review, the final determination concerning the subject
merchandise, or any previous review under section 751 concerning the
subject merchandise.'' See Statement of Administrative Action (``SAA'')
accompanying the Uruguay Round Agreements Act, H. Doc. No. 316, 103d
Cong., 2d Sess. Vol. 1 at 870 (1994). Corroborate means that the
Department will satisfy itself that the secondary information to be
used has probative value. See SAA at 870. To corroborate secondary
information, the Department will, to the extent practicable, examine
the reliability and relevance of the information to be used. The SAA
emphasizes, however, that the Department need not prove that the
selected facts available are the best alternative information. See SAA
at 869.
For the final determination, in accordance with section 776(c) of
the Act, we corroborated our AFA margin using information submitted by
the Watanabe Group and Lian Li. See Memorandum to the File from Marin
Weaver, International Trade Compliance Analyst, through Charles Riggle,
Program Manager, China/NME Group, Corroboration for the Final
Determination of Certain Lined Paper Products from the People's
Republic of China, regarding the corroboration of the AFA rate. We
found that the margin of 258.21 percent has probative value.
Accordingly, we find that the rate of 258.21 percent is corroborated
within the meaning of section 776(c) of the Act.
In addition, because we have determined that Atico, Dongguan Yizhii
Gao Paper Products Ltd. (``Dongguan''), Planet International, and
Lansheng are not entitled to separate rates and are now part of the
PRC-wide entity, the PRC-wide entity is now under investigation.
Further, because the PRC-wide entity (including these entities) failed
to provide the requested information in this investigation, the
Department, pursuant to section 776(a) of the Act, has applied a
dumping margin for the PRC-wide entity using the facts otherwise
available on the record. Furthermore, because we have determined that
the PRC-wide entity (including Atico, Dongguan, Planet International,
and Lansheng) has failed to cooperate to the best of its ability, the
Department has used an adverse inference in making its determination,
pursuant to section 776(b) of the Act.
Combination Rates
In the Notice of Initiation, the Department stated that it would
calculate combination rates for certain respondents that are eligible
for a separate rate in this investigation. See Initiation of
Antidumping Duty Investigations: Certain Lined Paper Products From
India, Indonesia, and the People's Republic of China, 70 FR at 58379
(October 6, 2005). See Policy Bulletin 05.1.
Final Determination
The Department has determined that the following final percentage
weighted-average dumping margins exist for the period January 1, 2005,
through June 30, 2005:
Certain Lined Paper Products From the PRC-Weighted-Average Dumping
Margins
------------------------------------------------------------------------
Weighted-
Exporter Producer average
deposit rate
------------------------------------------------------------------------
Watanabe Paper Product Watanabe Paper Product 76.7
(Linqing) Co., Ltd. (Linqing) Co., Ltd.
Watanabe Paper Product Hotrock Stationery 76.7
(Linqing) Co., Ltd. (Shenzhen) Co., Ltd.
Watanabe Paper Product Watanabe Paper Products 76.7
(Linqing) Co., Ltd. (Shanghai) Co., Ltd.
Hotrock Stationery (Shenzhen) Hotrock Stationery 76.7
Co., Ltd. (Shenzhen) Co., Ltd.
Hotrock Stationery (Shenzhen) Watanabe Paper Product 76.7
Co., Ltd. (Linqing) Co., Ltd.
Hotrock Stationery (Shenzhen) Watanabe Paper Products 76.7
Co., Ltd. (Shanghai) Co., Ltd.
Watanabe Paper Products Watanabe Paper Products 76.7
(Shanghai) Co., Ltd. (Shanghai) Co., Ltd.
Watanabe Paper Products Hotrock Stationery 76.7
(Shanghai) Co., Ltd. (Shenzhen) Co., Ltd.
Watanabe Paper Products Watanabe Paper Product 76.7
(Shanghai) Co., Ltd. (Linqing) Co., Ltd.
Shanghai Lian Li Paper Products Shanghai Lian Li Paper 94.98
Co., Ltd. Products Co. Ltd.
Shanghai Lian Li Paper Products Sentian Paper Products 94.98
Co., Ltd. Co., Ltd.
Shanghai Lian Li Paper Products Shanghai Miaopaofang 94.98
Co., Ltd. Paper Products Co.,
Ltd.
Shanghai Lian Li Paper Products ShanghaiPudong Wenbao 94.98
Co., Ltd. Paper Products Co.,
Ltd.
Shanghai Lian Li Paper Products Changshu Changjiang 94.98
Co., Ltd. Printing Co., Ltd.
Shanghai Lian Li Paper Products Shanghai Loutang 94.98
Co., Ltd. Stationery Factory.
Shanghai Lian Li Paper Products Shanghai Beijia Paper 94.98
Co., Ltd. Products Co., Ltd.
Ningbo Guangbo Imports and Ningbo Guangbo Plastic 78.39
Exports Co., Ltd. Products Manufacture
Co., Ltd.
[[Page 53085]]
Yalong Paper Products (Kunshan) Yalong Paper Products 78.39
Co., Ltd. (Kunshan) Co., Ltd.
Suzhou Industrial Park Asia Suzhou Industrial Park 78.39
Pacific Paper Converting Co., Asia Pacific Paper
Ltd. Converting Co., Ltd.
Sunshine International Group Dongguan Shipai Tonzex 78.39
(HK) Ltd. Electronics Plastic
Stationery Factory;.
Sunshine International Group Dongguan Kwong Wo 78.39
(HK) Ltd. Stationery Co., Ltd.
Sunshine International Group Hua Lian Electronics 78.39
(HK) Ltd. Plastic Stationery
Co., Ltd.
Suzhou Industrial Park You-You Linqing YinXing Paper 78.39
Trading Co., Ltd. Co., Ltd.
Suzhou Industrial Park You-You Jiaxing Seagull Paper 78.39
Trading: Co., Ltd. Products Co., Ltd.
Suzhou Industrial Park You-You Shenda Paper Product 78.39
Trading Co., Ltd. Factory.
Suzhou Industrial Park You-You Lianyi Paper Product 78.39
Trading Co., Ltd. Factory.
Suzhou Industrial Park You-You Changhang Paper Product 78.39
Trading: Co., Ltd. Factory.
Suzhou Industrial Park You-You Tianlong Paper Product 78.39
Trading Co., Ltd. Factory.
Suzhou Industrial Park You-You Rugao PaDer Printer 78.39
Trading: Co., Ltd. Co., Ltd.
Suzhou Industrial Park You-You Yinlong Paper Product 78.39
Trading Co., Ltd. Factory.
You You Paper Products (Suzhou) You You Paper Products 78.39
Co., Ltd. (Suzhou) Co., Ltd.
Haijing Stationery (Shanghai) Haijing Stationery 78.39
Co., Ltd. (Shanghai) Co., Ltd.
Orient International Holding Yalong Paper Products 78.39
Shanghai Foreign Trade Co., Ltd (Kunshan) Co., Ltd.
Ltd.
Orient International Holding Shanghai Cornwell 78.39
Shanghai Foreign Trade Co., Stationery Co., Ltd.
Ltd.
Orient International Holding Yuezhou PaDer Co., Ltd. 78.39
Shanghai Foreign Trade Co.,
Ltd.
Orient International Holding Changshu Guangming 78.39
Shanghai Foreign Trade Co., Stationery Co., Ltd.
Ltd.
Shanghai Foreign Trade Shanghai Xin Zhi Liang 78.39
Enterprise Co., Ltd. Culture Products Co.,
Ltd.
Shanghai Foreign Trade Shangyu Zhongsheng 78.39
Enterprise Co., Ltd. Paper Products Co.,
Ltd.
Shanghai Foreign Trade Shanghai Miaoxi Paper 78.39
Enteprise Co., Ltd. Products Factory;.
Shanghai Foreign Trade Shanghai Xueya 78.39
Enterprise Co., Ltd. Stationery Co., Ltd.
Anhui Light Industries Shanghai Pudong Wenbao 78.39
International Co., Ltd. Paper Products
Factory;.
Anhui Light Industries Foshan City Wenhai 78.39
International Co., Ltd. Paper Factory.
Fujian Hengda Group Co., Ltd... Fujian Hengda Group 78.39
Co., Ltd.
Changshu Changjiang Printing Changshu Changjiang 78.39
Co., Ltd. Paper Industry Co.,
Ltd.
Jiaxing Te Gao Te Paper Jiaxing Te Gao Te Paper 78.39
Products Co., Ltd. Products Co., Ltd.
Jiaxing Te Gao Te Paper Jiaxing Seagull Paper 78.39
Products Co., Ltd. Products Co., Ltd.
Jiaxing Te Gao Te Paper Jiaxing Boshi Paper 78.39
Products Co., Ltd. Products Co., Ltd.
Chinapack Ningbo Paper Products Jiaxing Te Gao Te Paper 78.39
Co., Ltd. Products Co., Ltd.
Linqing Silver Star Paper Linqing Silver Star 78.39
Products Co., Ltd. Paper Products Co.,
Ltd.
Wah Kin Stationery and Paper Shenzhen Baoan Waijing 78.39
Product Limited. Development Company.
Shanghai Pudong Wenbao Paper Shanghai Pudong Wenbao 78.39
Products Factory. Paper Products Factory.
Shanghai Pudong Wenbao Paper Linqing Glistar Paper 78.39
Products Factory. Products Co., Ltd.
Shanghai Pudong Wenbao Paper Changshu Changjiang 78.39
Products Factory. Printing Co., Ltd.
Shanghai Pudong Wenbao Paper Linqing Silver Star 78.39
Products Factory. Paper Products Co.,
Ltd.
Paperline Limited.............. Shanghai Pudong Wenbao 78.39
Paper Products Factory.
Paperline Limited.............. Linqing Glistar Paper 78.39
Products Co., Ltd.
Paperline Limited.............. Changshu Changjiang 78.39
Printing Co., Ltd.
Paperline Limited.............. Linqing Silver Star 78.39
Paper Products Co.,
Ltd.
Paperline Limited.............. Jiaxing Te Gao Te Paper 78.39
Products Co., Ltd.
Paperline Limited.............. Yantai License Printing 78.39
& Making Co., Ltd.
Yantai License Printing & Yantai License Printing 78.39
Making Co., Ltd. & Making Co., Ltd.
Paperline Limited.............. Anhui Jinhua Import & 78.39
Export Co., Ltd.
Essential Industries Limited... Dongguan Yizhi Gao 78.39
Paper Products Ltd.
MGA Entertainment (H.K.) Kon Dai (Far East) 78.39
Limited. Packaging Co., Ltd.
MGA Entertainment (H.K.) Dong Guan Huang Giang 78.39
Limited. Rong Da Printing
Factory.
MGA Entertainment (H.K.) Dong Guan Huang Giang 78.39
Limited. Da Printing Co.,
Limited.
Excel Sheen Limited............ Dongguan Shipai Fuda 78.39
Stationery Factory.
Maxleaf Stationery Ltd......... Maxleaf Stationery Ltd. 78.39
PRC Entity*.................... ....................... 258.21
------------------------------------------------------------------------
*Including Atico, Planet International, and the companies that did not
respond to the Q&V questionnaire.
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
Pursuant to section 735(c)(1)(B) of the Act, we will instruct U.S.
Customs and Border Protection (``CBP'') to continue to suspend
liquidation of all entries of subject merchandise from the PRC entered,
or withdrawn from warehouse, for consumption on or after April 17,
2006, the date of publication of the Preliminary Determination. For
those companies for which we found critical circumstances to exist, we
will instruct CBP to continue to suspend liquidation of all entries of
subject merchandise from the PRC entered, or withdrawn from warehouse,
for consumption on or after January 17, 2006, which is 90 days prior to
the date of publication of the preliminary determination. CBP shall
continue to require a cash deposit equal to the estimated amount by
which the normal value exceeds the U.S. price as shown above. These
instructions suspending liquidation will remain in effect until further
notice.
[[Page 53086]]
International Trade Commission Notification
In accordance with section 735(d) of the Act, we have notified the
ITC of our final determination of sales at LTFV. As our final
determination is affirmative, in accordance with section 735(b)(2) of
the Act, the ITC will determine within 45 days whether the domestic
industry in the United States is materially injured, or threatened with
material injury, by reason of imports of CLPP, or sales (or the
likelihood of sales) for importation, of the subject merchandise. If
the ITC determines that material injury or threat of material injury
does not exist, the 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 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. If the ITC determines that material injury, or threat of
material injury does exist, but finds no critical circumstances, the
Department will instruct CBP refund or cancel all securities posted
prior to April 17, 2006.
Notification Regarding APO
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to administrative protective order (``APO'') of their
responsibility concerning the destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). 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 the terms of an APO is a sanctionable
violation.
We are issuing and publishing this determination and notice in
accordance with sections 735(d) and 777(i) of the Act.
Dated: August 30, 2006.
David M. Spooner,
Assistant Secretary, for Import Administration.
[FR Doc. 06-7538 Filed 9-7-06; 8:45 am]
BILLING CODE 3510-DS-M