[Federal Register Volume 73, Number 227 (Monday, November 24, 2008)]
[Notices]
[Pages 70958-70959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-27978]


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DEPARTMENT OF COMMERCE

International Trade Administration

(C-570-921)


Lightweight Thermal Paper from the People's Republic of China: 
Notice of Amended Final Affirmative Countervailing Duty Determination 
and Notice of Countervailing Duty Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: Based on an affirmative final determination by the 
International Trade Commission (ITC) and an amended affirmative final 
determination by the Department of Commerce (the Department), the 
Department is issuing this countervailing duty order on lightweight 
thermal paper (LWTP) from the People's Republic of China (PRC). The 
Department is amending its final determination to correct certain 
ministerial errors as explained below.

EFFECTIVE DATE: November 24, 2008.

FOR FURTHER INFORMATION CONTACT: David Layton or Scott Holland at (202) 
482-0371 and (202) 482-1279, respectively, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230.

Background

    On October 2, 2008, the Department published its final 
determination in the countervailing duty investigation of LWTP from the 
PRC. See Lightweight Thermal Paper from the People's Republic of China: 
Final Affirmative Countervailing Duty Determination, 73 FR 57323 
(October 2, 2008) and corresponding ``Issues and Decision Memorandum'' 
(Final Determination).
    On November 17, 2008, the ITC notified the Department of its final 
determination pursuant to sections 705(d) and 705(b)(1)(A)(ii) of the 
Tariff Act of 1930, as amended (the Act), that an industry in the 
United States is threatened with material industry by reason of 
subsidized imports of subject merchandise from the PRC. See Letter from 
the ITC to the Secretary of Commerce, ``Notification of Final 
Affirmative Determination of Lightweight Thermal Paper from the 
People's Republic of China'' (Investigation Nos. 701-TA-451 and 731-TA-
1126-1127 (Final) (November 17, 2008). Pursuant to section 706(a) of 
the Act, the Department is publishing a countervailing duty order on 
the subject merchandise.

Scope of the Order

    The merchandise covered by this order includes certain lightweight 
thermal paper, which is thermal paper with a basis weight of 70 grams 
per square meter (g/m\2\) (with a tolerance of  4.0 g/m\2\) 
or less; irrespective of dimensions;\1\ with or without a base coat\2\ 
on one or both sides; with thermal active coating(s)\3\ on one or both 
sides that is a mixture of the dye and the developer that react and 
form an image when heat is applied; with or without a top coat;\4\ and 
without an adhesive backing. Certain lightweight thermal paper is 
typically (but not exclusively) used in point-of-sale applications such 
as ATM receipts, credit card receipts, gas pump receipts, and retail 
store receipts. The merchandise subject to this order may be classified 
in the Harmonized Tariff Schedule of the United States (``HTSUS'') 
under subheadings 4811.90.8040, 4811.90.9090, 3703.10.60, 4811.59.20, 
4820.10.20, and 4823.40.00.\5\ Although HTSUS subheadings are provided 
for convenience and customs purposes, the written description of the 
scope of this order is dispositive.
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    \1\ LWTP is typically produced in jumbo rolls that are slit to 
the specifications of the converting equipment and then converted 
into finished slit rolls. Both jumbo and converted rolls (as well as 
LWTP in any other form, presentation, or dimension) are covered by 
the scope of these orders.
    \2\ A base coat, when applied, is typically made of clay and/or 
latex and like materials and is intended to cover the rough surface 
of the paper substrate and to provide insulating value.
    \3\ A thermal active coating is typically made of sensitizer, 
dye, and co-reactant.
    \4\ A top coat, when applied, is typically made of polyvinyl 
acetone, polyvinyl alcohol, and/or like materials and is intended to 
provide environmental protection, an improved surface for press 
printing, and/or wear protection for the thermal print head.
    \5\ HTSUS subheading 4811.90.8000 was a classification used for 
LWTP until January 1, 2007. Effective that date, subheading 
4811.90.8000 was replaced with 4811.90.8020 (for gift wrap, a non-
subject product) and 4811.90.8040 (for ``other'' including LWTP). 
HTSUS subheading 4811.90.9000 was a classification for LWTP until 
July 1, 2005. Effective that date, subheading 4811.90.9000 was 
replaced with 4811.90.9010 (for tissue paper, a non-subject product) 
and 4811.90.9090 (for ``other,'' including LWTP).
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Amendment to the Final Determination

    On October 14, 2008, the petitioner\6\ filed timely allegations 
stating that the Department made four ministerial errors in its final 
determination. Respondent Guangdong Guanhao High-Tech Co., Ltd. 
(``GG'') and its affiliated input supplier, Zhanjiang Guanlong Paper 
Industrial Co., Ltd. (``ZG'') (collectively, ``the respondents'') 
responded to the petitioner's allegations on October 20, 2008, stating 
that the petitioner failed to document and explain how the issues it 
had raised constituted ministerial errors as defined by the regulation. 
The respondents did not address the specifics of petitioner's 
allegations.
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    \6\ The petitioner in this case is Appleton Papers Inc. 
(``Petitioner'').
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    After analyzing the comments received, we have determined, in 
accordance with 19 CFR 351.224(e), that we made three ministerial 
errors in our calculations performed for the final determination.\7\
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    \7\ See generally Memorandum to Susan Kuhbach, Director, Office 
1, AD/CVD Operations from Nancy Decker, Program Manager, Office 1, 
``Countervailing Duty Investigation: Lightweight Thermal Paper from 
the People's Republic of China: Ministerial Error Allegations'' 
(October 29, 2008) (``Ministerial Error Allegations Memo'').
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    In summary, the petitioner contended that, the Department made 
errors in calculating the benefit from GG's policy loans, including 
incorrectly calculating the number of days outstanding for certain 
short-term loans, applying an incorrect short-term benchmark to another 
loan and miscalculating the benchmark interest rate for certain long-
term loans to ZG. The Department agrees with the petitioner that 
certain of these three errors constitute ministerial errors that 
warrant correction. We are correcting these errors with this notice. 
See Ministerial Error Allegations Memo at pages 3-5.
    As a result of correcting these errors, the countervailing duty 
rate calculated for GG has changed from 13.17 percent to 13.63 percent. 
Because the other rates calculated in our final determination relied in 
part on GG's policy loan rate, we are also amending those rates. The 
countervailing duty calculated for Shenzhen Yuanming Industrial 
Development Co., Ltd. has changed from 137.25 percent to 138.53 
percent, the countervailing duty calculated for MDCN Technology Co., 
Ltd. and Xiamen Anne Paper Co., Ltd. has changed from 123.65 percent to 
124.93 percent, and the countervailing duty calculated for all-other 
exporters has changed from 13.17 percent to 13.63 percent. In 
accordance with 19 CFR 351.224(e), we are amending the final 
determination in the countervailing

[[Page 70959]]

duty investigation of LWTP from the PRC to reflect these changes.

Countervailing Duty Order

    In accordance with section 706(a)(1) of the Act, the Department 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by the Department, countervailing duties equal to 
the amount of the net countervailable subsidy for all relevant entries 
of LWTP from the PRC.
    According to section 706(b)(2) of the Act, duties shall be assessed 
on subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the ITC's notice of 
final determination if that determination is based upon the threat of 
material injury. Section 706(b)(1) of the Act states, ``If the 
Commission, in its final determination under section 705(b), finds 
material injury or threat of material injury which, but for the 
suspension of liquidation under section 703(d)(2), would have led to a 
finding of material injury, then entries of the merchandise subject to 
the countervailing duty order, the liquidation of which has been 
suspended under section 703(d)(2), shall be subject to the imposition 
of countervailing duties under section 701(a).'' In addition, section 
706(b)(2) of the Act requires CBP to refund any cash deposits or bonds 
of estimated countervailing duties posted since the Department's 
preliminary countervailing duty determination, if the ITC's final 
determination is threat-based. Because the ITC's final determination in 
this case is based on the threat of material injury and is not 
accompanied by a finding that injury would have resulted but for the 
imposition of suspension of liquidation of entries since the 
Department's preliminary determination was published in the Federal 
Register,\8\ section 706(b)(2) of the Act is applicable.
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    \8\ See Lightweight Thermal Paper from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Countervailing Duty Determination with Final 
Antidumping Duty Determination, 73 FR 13850 (March 14, 2008) 
(Preliminary Determination).
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    Therefore, the Department will direct CBP to reinstitute suspension 
of liquidation,\9\ and to assess, upon further instruction from the 
Department, countervailing duties on all unliquidated entries of LWTP 
from the PRC entered, or withdrawn from warehouse, for consumption on 
or after the date of publication of the ITC's notice of final 
determination of threat of material injury in the Federal Register.
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    \9\ The Department instructed CBP to discontinue the suspension 
of liquidation on July 12, 2008, in accordance with section 703(a) 
of the Act. Section 703(d) states that the suspension of liquidation 
pursuant to a preliminary determination may not remain in effect for 
more than four months.
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Cash Deposit Requirements

    Effective on the date of publication of the ITC's notice of final 
determination in the Federal Register, CBP will require, at the same 
time as importers would normally deposit estimated duties, cash 
deposits for the subject merchandise equal to the net subsidy rates 
listed below. See section 706(a)(3) of the Act. The all-others rate 
applies to all producers and exporters of subject merchandise not 
specifically listed.

------------------------------------------------------------------------
                                                             Net Subsidy
                   Exporter/Manufacturer                         Rate
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Guangdong Guanhao High-Tech Co., Ltd.......................        13.63
Shanghai Hanhong Paper Co., Ltd............................     0.57 (de
                                                                minimis)
Shenzhen Yuanming Industrial Development Co., Ltd..........       138.53
MDCN Technology Co., Ltd...................................       124.93
Xiamen Anne Paper Co., Ltd.................................       124.93
All Others.................................................        13.63
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Termination of the Suspension of Liquidation

    The Department will also instruct CBP to terminate the suspension 
of liquidation for entries of LWTP from the PRC entered, or withdrawn 
from warehouse, for consumption prior to the publication of the ITC's 
notice of final determination, and refund any cash deposits made and 
release any bonds posted between the publication of the Department's 
preliminary determination on March 14, 2008, and the publication of the 
ITC's final determination in the Federal Register.
    This notice constitutes the countervailing duty order with respect 
to LWTP from the PRC, pursuant to section 706(a) of the Act. Interested 
parties may contact the Department's Central Records Unit, Room 1117 of 
the Main Commerce Building, for copies of an updated list of 
countervailing duty orders currently in effect.
    This order is issued and published in accordance with section 
706(a) of Act, 19 CFR 351.224(e), and 19 CFR 351.211(b).

    Dated: November 19, 2008.
Steven J. Claeys,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.
[FR Doc. E8-27978 Filed 11-21-08; 8:45 am]
BILLING CODE 3510-DS-S