[Federal Register Volume 72, Number 206 (Thursday, October 25, 2007)]
[Notices]
[Pages 60636-60638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-21042]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

A-560-820


Notice of Final Determination of Sales at Less Than Fair Value: 
Coated Free Sheet Paper from Indonesia

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: We determine that imports of coated free sheet paper (``CFS 
paper'') 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.

EFFECTIVE DATE: October 25, 2007.

FOR FURTHER INFORMATION CONTACT:  Brian C. Smith or Gemal Brangman, AD/
CVD Operations, Office 2, Import Administration-Room B-099, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
(202) 482-1766 or (202) 482-3773, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 4, 2007, the Department published in the Federal Register 
the Preliminary Determination of sales at LTFV in the antidumping duty 
investigation of CFS paper from Indonesia. See Coated Free Sheet Paper 
from Indonesia: Notice of Preliminary Determination of Sales at Less 
Than Fair Value and Postponement of Final Determination, 72 FR 30753 
(June 4, 2007) (``Preliminary Determination'').
    On June 13, 2007,\1\ PT. Pindo Deli Pulp & Paper Mills (``PD''), 
PT. Pabrik Kertas Tjiwi Kimia, Tbk (``TK''), and their affiliates PT. 
Cakrawala Mega Indah (``CMI''), PT Indah Kiat Pulp & Paper Tbk 
(``IK''), PT. Lontar Papyrus Pulp & Paper Industries (``Lontar''), PT 
Arara Abadi (``AA'') and PT. Wirakarya Sakti (``WKS'') (hereafter 
collectively referred to as ``the Indonesian Respondents'') \2\ 
submitted a revised cost of production (``COP'') database for TK which 
incorporated corrections found prior to the start of verification. On 
June 27, 2007, the Indonesian Respondents submitted a revised COP 
database for PD which incorporated corrections submitted at the start 
of PD's cost verification on June 22, 2007.
---------------------------------------------------------------------------

    \1\ June 13, 2007, is seven days prior to the start of the cost 
verification.
    \2\ PD and TK are CFS paper producers, whereas CMI is a reseller 
of paper products produced by PD and TK. IK and Lontar are pulp 
producers, whereas AA and WKS are forestry companies.
---------------------------------------------------------------------------

    From June 20 through July 20, 2007, we verified the sales and cost 
questionnaire responses of the Indonesian Respondents. On August 20, 
27, and 28, 2007, the Department issued its verification reports. We 
provided the interested parties an opportunity to comment on the 
Preliminary Determination and the Department's verification findings.
    On June 29, 2007, the petitioner \3\ requested a hearing to discuss 
issues addressed by the interested parties in their case and rebuttal 
briefs.
---------------------------------------------------------------------------

    \3\ The petitioner in this investigation is NewPage Corporation.
---------------------------------------------------------------------------

    On August 28, 2007, the petitioner requested that the Department 
clarify the scope of the investigation of CFS paper from Indonesia and 
placed on the record of this review information to support its request.
    On September 5, 2007, the petitioner and the Indonesian Respondents 
submitted case briefs. On September 6, 2007, the petitioner withdrew 
its request for a hearing. Because the petitioner was the only 
interested party to request a hearing and it subsequently withdrew its 
request, no hearing was held on issues raised in the September 5, 2007, 
case briefs. On September 10, 2007, both the petitioner and the 
Indonesian Respondents submitted rebuttal briefs.
    Also on September 10, 2007, the Department rejected the 
petitioner's August 28, 2007, scope clarification submission because it 
contained untimely filed new factual information. The petitioner 
refiled its submission with the new factual information redacted on 
September 10, 2007.
    On September 12, 2007, the petitioner and Indonesian Respondents 
filed case briefs on the scope issue. On September 14, 2007, the 
Department rejected the Indonesian Respondents' case brief on the scope 
issue because it contained untimely filed new factual information. The 
Indonesian Respondents refiled this case brief with the new factual 
information redacted on September 17, 2007.
    On September 17, 2007, the Department rejected the Indonesian 
Respondents' September 10, 2007, rebuttal brief because it contained 
untimely filed new argument. The Indonesian Respondents refiled their 
rebuttal brief with the new argument redacted on September 18, 2007.
    On September 20, 2007, the petitioner and Indonesian Respondents 
filed rebuttal briefs on the scope issue. A hearing on the scope issue 
was held on September 26, 2007.

Period of Investigation

    The period of investigation is October 1, 2005, through September 
30, 2006. This period corresponds to the four most recent fiscal 
quarters prior to the month of the filing of the petition.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs submitted by the 
parties to this investigation are addressed in the ``Issues and 
Decision Memorandum'' (``Decision Memo'') from Stephen J. Claeys, 
Deputy Assistant Secretary for Import Administration, to David M. 
Spooner, Assistant Secretary for Import Administration, dated October 
17, 2007, which is hereby adopted by this notice. A list of the issues 
that parties have raised and to which we have responded, all of which 
are in the Decision Memo, is attached to this notice as an appendix. 
Parties can find a complete

[[Page 60637]]

discussion of all issues raised in this investigation and the 
corresponding recommendations in this public memorandum which is on 
file in the Central Records Unit, room B-099 of the main Department 
building. In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at http://ia.ita.doc.gov/frn. The paper 
copy and electronic version of the Decision Memo are identical in 
content.

Scope of Investigation

    The merchandise covered by this investigation includes coated free 
sheet paper and paperboard of a kind used for writing, printing or 
other graphic purposes. Coated free sheet paper is produced from not-
more-than 10 percent by weight mechanical or combined chemical/
mechanical fibers. Coated free sheet paper is coated with kaolin (China 
clay) or other inorganic substances, with or without a binder, and with 
no other coating. Coated free sheet paper may be surface-colored, 
surface-decorated, printed (except as described below), embossed, or 
perforated. The subject merchandise includes single- and double-side-
coated free sheet paper; coated free sheet paper in both sheet or roll 
form; and is inclusive of all weights, brightness levels, and finishes. 
The terms ``wood free'' or ``art'' paper may also be used to describe 
the imported product.
    Excluded from the scope are: (1) coated free sheet paper that is 
imported printed with final content printed text or graphics; (2) base 
paper to be sensitized for use in photography; and (3) paper containing 
by weight 25 percent or more cotton fiber.
    Coated free sheet paper is classifiable under subheadings 
4810.13.1900, 4810.13.2010, 4810.13.2090, 4810.13.5000, 4810.13.7040, 
4810.14.1900, 4810.14.2010, 4810.14.2090, 4810.14.5000, 4810.14.7040, 
4810.19.1900, 4810.19.2010, and 4810.19.2090 of the Harmonized Tariff 
Schedule of the United States (``HTSUS''). While HTSUS subheadings are 
provided for convenience and customs purposes, our written description 
of the scope of this investigation is dispositive.

Scope Comments

    On August 20, August 28, and September 10, 2007, the petitioner 
requested that the Department clarify the scope of the antidumping and 
countervailing duty investigations of CFS paper from Indonesia, Korea 
and the People's Republic of China. Specifically, the petitioner asked 
the Department to ``clarify that the scope of the investigation 
includes coated free sheet paper containing hardwood BCTMP.''
    Because this was a general issue pertaining to all six 
investigations, the Department set up a general issues file to handle 
this scope request. A hearing on the scope request was held on 
September 26, 2007. The hearing comprised a public session, a closed 
session for the antidumping investigation from Korea, and a closed 
session for the countervailing duty investigation from the PRC. After 
considering the comments submitted by the parties to these 
investigations, we have determined not to adopt the scope clarification 
sought by the petitioner. See Memorandum to Stephen J. Claeys, Deputy 
Assistant Secretary for Import Administration, entitled ``Scope 
Clarification Request: NewPage Corporation'' dated concurrently with 
this notice, which is appended to ``Issues and Decision Memorandum for 
the Final Determination in the Countervailing Duty Investigation of 
Coated Free Sheet Paper from the People's Republic of China.''

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we have made certain changes to the margin calculations 
for the Indonesian Respondents. For a discussion of these changes, see 
the ``Margin Calculations'' section of the Decision Memo.

Verification

    As provided in section 782(i) of the Act, we verified the sales and 
cost information submitted by the Indonesian Respondents for use in our 
final determination. We used standard verification procedures including 
an examination of relevant accounting and production records, and 
original source documents provided by the Indonesian Respondents. Our 
sales and cost verification results are outlined in separate 
verification reports. See August 20, 2007, cost verification report, 
and August 27 and 28, 2007, sales verification reports for the 
Indonesian Respondents.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing U.S. Customs and Border Protection (``CBP'') to continue to 
suspend liquidation of all imports of subject merchandise that are 
entered or withdrawn from warehouse, for consumption on or after June 
4, 2007, the date of publication of the Preliminary Determination in 
the Federal Register. We will instruct CBP to continue to require a 
cash deposit or the posting of a bond for all companies based on the 
estimated weighted-average dumping margins shown below. The suspension 
of liquidation instructions will remain in effect until further notice.

Final Determination Margins

    We determine that the following weighted-average dumping margins 
exist for the period October 1, 2005, through September 30, 2006:

------------------------------------------------------------------------
                                                       Weighted Average
                Manufacturer/Exporter                  Margin (percent)
------------------------------------------------------------------------
PT. Pabrik Kertas Tjiwi Kimia Tbk, PT. Pindo Deli                   8.63
 Pulp and Paper Mills, and PT. Indah Kiat Pulp and
 Paper Tbk (collectively, PD/TK/IK).................
All Others..........................................                8.63
------------------------------------------------------------------------

    Section 735(c)(5)(A) of the Act provides that the estimated ``All 
Others'' rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero and de 
minimis margins, and any margins determined entirely under section 776 
of the Act. The collapsed entity PD/TK/IK\4\ is the only respondent in 
this investigation for which the Department has calculated a company-
specific rate. Therefore, for purposes of determining the ``All 
Others'' rate and pursuant to section 735(c)(5)(A) of the Act, we are 
using the weighted-average dumping margin calculated for PD/TK/IK, as 
referenced above.
---------------------------------------------------------------------------

    \4\ In the Preliminary Determination, we determined it 
appropriate to treat PD, TK and IK as one entity for margin 
calculation purposes because they met the regulatory criteria for 
collapsing. See May 29, 2007, Memorandum from the Team to Stephen J. 
Claeys, Deputy Assistant Secretary for Import Administration, 
entitled Treatment of Data Reported by Affiliated Parties 
in the Antidumping Duty Investigation of Coated Free Sheet Paper 
from Indonesia No party commented on this preliminary 
determination and we found nothing at verification that would 
otherwise compel us to reverse this determination. Therefore, we 
have continued to treat these affiliated companies as one entity in 
the final determination.
---------------------------------------------------------------------------

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).

[[Page 60638]]

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
ITC of our final determination. As our final determination is 
affirmative, the ITC will determine within 45 days whether imports of 
the subject merchandise are causing material injury, or threat of 
material injury, to an industry in the United States. If the ITC 
determines that material injury or threat of 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.

Return or Destruction of Proprietary Information

    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 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: October 17, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memo

Comments

Issue 1: Whether to Adjust Export Price for Amounts Paid by TK to an 
Unaffiliated Company
Issue 2: Application of Major Input Rule to Logs Used to Produce Pulp 
by IK
Issue 3: Application of Major Input Rule to Pulp Produced by Lontar
Issue 4: Selection of Market Price Used for Testing of Purchases of 
Pulp from Lontar
Issue 5: Application of Transactions Disregarded Rule for Purchases of 
Electricity
Issue 6: Treatment of Miscellaneous Expenses in Financial Expense 
Calculation
[FR Doc. E7-21042 Filed 10-24-07; 8:45 am]
BILLING CODE 3510-DS-S