[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]
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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.
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\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.
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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.
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\3\ The petitioner in this investigation is NewPage Corporation.
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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:
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Weighted Average
Manufacturer/Exporter Margin (percent)
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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
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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.
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\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.
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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