[Federal Register Volume 74, Number 231 (Thursday, December 3, 2009)]
[Notices]
[Pages 63387-63391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-28769]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-901]


Certain Lined Paper Products From the People's Republic of China: 
Notice of Final Results of the Second Administrative Review of the 
Antidumping Duty Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') published its 
preliminary results of administrative review of the antidumping duty 
order on certain lined paper products (``CLPP'') from the People's 
Republic of China (``PRC'') on July 24, 2009. The period of review 
(``POR'') is September 1, 2007, through August 31, 2008.

DATE: Effective Date: December 3, 2009.

FOR FURTHER INFORMATION CONTACT: Joy Zhang or Victoria Cho, AD/CVD 
Operations, Office 3, Import Administration, International Trade 
Administration, Department of Commerce, 14th Street and Constitution 
Avenue, NW., Washington, DC 20230; telephone: (202) 482-1168 or (202) 
482-5075, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 24, 2009, the Department published its preliminary results 
of the second administrative review. See Certain Lined Paper Products 
from the People's Republic of China: Notice of Preliminary Results of 
the Antidumping Duty Administrative Review, 74 FR 36662 (July 24, 2009) 
(``Preliminary Results''). On August 25, 2009, Watanabe Paper Products 
(Shanghai) Co., Ltd., Watanabe Paper Products (Linging) Co., Ltd., and 
Hotrock Stationery (Sennzhen) Co., Ltd., (collectively, ``Watanabe'') 
filed its case brief (``Watanabe Case Brief''). On August 31, 2009, the 
Association of American School Paper Suppliers (``petitioner'') filed a 
rebuttal brief (``Petitioner Rebuttal Brief''). On August 24, 2009, 
Watanabe requested a hearing regarding the second administrative review 
of CLPP from the PRC. The Department conducted the hearing on September 
16, 2009. We have conducted this administrative review in accordance 
with sections 751 and 777(i)(1) of the Tariff Act of 1930, as amended 
(``the Act''), and 19 CFR 351.213 and 351.221, as appropriate.

Period of Review

    The POR is September 1, 2007, through August 31, 2008.

Scope of the Order

    The scope of this order includes certain lined paper products, 
typically school supplies (for purposes of this scope definition, the 
actual use of or labeling these products as school supplies or non-
school supplies is not a defining characteristic) composed of or 
including paper that incorporates straight horizontal and/or vertical 
lines on ten or more paper sheets (there shall be no minimum page 
requirement for looseleaf filler paper) including but not limited to 
such products as single- and multi-subject notebooks, composition 
books, wireless notebooks, looseleaf or glued filler paper, graph 
paper, and laboratory notebooks, and with the smaller dimension of the 
paper measuring 6 inches to 15 inches (inclusive) and the larger 
dimension of the paper measuring 8\3/4\ inches to 15 inches 
(inclusive). Page dimensions are measured size (not advertised, stated, 
or ``tear-out'' size), and are measured as they appear in the product 
(i.e., stitched and folded pages in a notebook are measured by the size 
of the page as it appears in the notebook page, not the size of the 
unfolded paper). However, for measurement purposes, pages with tapered 
or rounded edges shall be measured at their longest and widest points. 
Subject lined paper products may be loose, packaged or bound using any 
binding method (other than case bound through the inclusion of binders 
board, a spine strip, and cover wrap). Subject merchandise may or may 
not contain any combination of a front cover, a rear cover, and/or 
backing of any composition, regardless of the inclusion of images or 
graphics on the cover, backing, or paper. Subject merchandise is within 
the scope of this order whether or not the lined paper and/or cover are 
hole punched, drilled, perforated, and/or reinforced. Subject 
merchandise may contain accessory or informational items including but 
not limited to pockets, tabs, dividers, closure devices, index cards, 
stencils, protractors, writing implements, reference materials such as 
mathematical tables, or printed items such as sticker sheets or 
miniature calendars, if such items are physically incorporated, 
included with, or attached to the product, cover and/or backing 
thereto.
    Specifically excluded from the scope of this order are:
     Unlined copy machine paper;
     Writing pads with a backing (including but not limited to 
products commonly known as ``tablets,'' ``note pads,'' ``legal pads,'' 
and ``quadrille pads''), provided that they do not have a front cover 
(whether permanent or removable). This exclusion does not apply to such 
writing pads if they consist of hole-punched or drilled filler paper;
     Three-ring or multiple-ring binders, or notebook 
organizers incorporating such a ring binder provided that they do not 
include subject paper;
     Index cards;
     Printed books and other books that are case bound through 
the inclusion of binders board, a spine strip, and cover wrap;
     Newspapers;
     Pictures and photographs;
     Desk and wall calendars and organizers (including but not 
limited to such products generally known as ``office planners,'' ``time 
books,'' and ``appointment books'');
     Telephone logs;
     Address books;
     Columnar pads & tablets, with or without covers, primarily 
suited for the recording of written numerical business data;

[[Page 63388]]

     Lined business or office forms, including but not limited 
to: pre-printed business forms, lined invoice pads and paper, mailing 
and address labels, manifests, and shipping log books;
     Lined continuous computer paper;
     Boxed or packaged writing stationary (including but not 
limited to products commonly known as ``fine business paper,'' 
``parchment paper,'' and ``letterhead''), whether or not containing a 
lined header or decorative lines;
     Stenographic pads (``steno pads''), Gregg ruled (``Gregg 
ruling'' consists of a single- or double-margin vertical ruling line 
down the center of the page. For a six-inch by nine-inch stenographic 
pad, the ruling would be located approximately three inches from the 
left of the book.), measuring 6 inches by 9 inches;
    Also excluded from the scope of this order are the following 
trademarked products:
     FlyTM lined paper products: A notebook, 
notebook organizer, loose or glued note paper, with papers that are 
printed with infrared reflective inks and readable only by a 
FlyTM pen-top computer. The product must bear the valid 
trademark FlyTM (products found to be bearing an invalidly 
licensed or used trademark are not excluded from the scope).
     ZwipesTM: A notebook or notebook organizer made 
with a blended polyolefin writing surface as the cover and pocket 
surfaces of the notebook, suitable for writing using a specially-
developed permanent marker and erase system (known as a 
ZwipesTM pen). This system allows the marker portion to mark 
the writing surface with a permanent ink. The eraser portion of the 
marker dispenses a solvent capable of solubilizing the permanent ink 
allowing the ink to be removed. The product must bear the valid 
trademark ZwipesTM (products found to be bearing an 
invalidly licensed or used trademark are not excluded from the scope).
     FiveStar[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 0.019 inches (within normal 
manufacturing tolerances) and rear cover is 0.028 inches (within normal 
manufacturing tolerances). Integral with the stitching that attaches 
the polyester spine covering, is captured both ends of a 1'' wide 
elastic fabric band. This band is located 2\3/8\'' from the top of the 
front plastic cover and provides pen or pencil storage. Both ends of 
the spiral wire are cut and then bent backwards to overlap with the 
previous coil but specifically outside the coil diameter but inside the 
polyester covering. During construction, the polyester covering is sewn 
to the front and rear covers face to face (outside to outside) so that 
when the book is closed, the stitching is concealed from the outside. 
Both free ends (the ends not sewn to the cover and back) are stitched 
with a turned edge construction. The flexible polyester material forms 
a covering over the spiral wire to protect it and provide a comfortable 
grip on the product. The product must bear the valid trademarks 
FiveStar[supreg]AdvanceTM (products found to be bearing an 
invalidly licensed or used trademark are not excluded from the scope).
    FiveStar FlexTM: A notebook, a notebook organizer, or 
binder with plastic polyolefin front and rear covers joined by 300 
denier polyester spine cover extending the entire length of the spine 
and bound by a 3-ring plastic fixture. The polyolefin plastic covers 
are of a specific thickness; front cover is 0.019 inches (within normal 
manufacturing tolerances) and rear cover is 0.028 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 (products found to be bearing an 
invalidly licensed or used trademark are not excluded from the scope). 
Merchandise subject to this order is typically imported under headings 
4820.10.2020, 4820.10.2030, 4820.10.2040, 4820.10.2050, 4820.10.2060, 
4810.22.5044, 4811.90.9090, 4820.10.2010 of the Harmonized Tariff 
Schedule of the United States (``HTSUS''). The HTSUS headings are 
provided for convenience and customs purposes; however, the written 
description of the scope of this order is dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this review are addressed in the memorandum from John M. Andersen, 
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations, to Carole A. Showers, Acting Deputy Assistant 
Secretary for Policy and Negotiations, Issues and Decisions for the 
Final Results of the Second Administrative Review of the Antidumping 
Duty Order on Certain Lined Paper Products from the People's Republic 
of China, dated November 21, 2009 (``Issues and Decision Memorandum''), 
which is hereby adopted by this notice. A list of the issues which 
parties raised and to which we responded in the Issues and Decision 
Memorandum is attached to this notice as an appendix. The Issues and 
Decision Memorandum is a public document which is on file in the 
Central Records Unit, Room 1117, of 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.

Changes Since the Preliminary Results

    Based on the comments received from the interested parties, we have 
made no changes to the Preliminary Results. For the final results, we 
have adopted our positions in the Preliminary Results. We continue to 
find that the application of total adverse facts available is warranted 
for Watanabe pursuant to sections 776(a)(2)(A), (C), and (D) and 776(b) 
of the Act. For a complete discussion, see the Issues and Decision 
Memorandum.

Application of Adverse Facts Available

    Section 776(a) of the Act provides that, the Department shall apply 
``facts otherwise available'' if (1) necessary information is not on 
the record, or (2) 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 of the Act, (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

[[Page 63389]]

inform the party submitting the response and will, to the extent 
practicable, provide 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 supplied if it can do so 
without undue difficulties.
    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. Such an adverse 
inference may include reliance on information derived from the 
petition, the final determination, a previous administrative review, or 
other information placed on the record. See, e.g., Notice of Final 
Results of Antidumping Duty Administrative Review: Stainless Steel Bar 
from India, 70 FR 54023, 54025-26 (September 13, 2005); Statement of 
Administrative Action, reprinted in H.R. Doc. No. 103-216, at 870 
(1994) (``SAA''). Furthermore, ``affirmative evidence of bad faith on 
the part of a respondent is not required before the Department may make 
an adverse inference.'' See Antidumping Duties; Countervailing Duties; 
Final Rule, 62 FR 27296, 27340 (May 19, 1997); see also Nippon Steel 
Corp. v. United States, 337 F.3d 1373, 1382 (Fed. Cir. 2003) 
(``Nippon''').

Watanabe

    As discussed in the Preliminary Results, the Department determined 
that facts available with an adverse inference was warranted for 
Watanabe. Watanabe submitted an incomplete response to the Department's 
original questionnaire, claiming that because it did not sell subject 
merchandise to the United States during the POR, it would not respond 
additionally to Sections A, C and D of the Department's questionnaire, 
even though entries of its merchandise were made during the POR. 
Moreover, the Department extended the deadline for submission in 
response to Watanabe's request; however, Watanabe stated that it did 
not intend to submit additional responses. Because Watanabe withheld 
information, significantly impeded the proceeding and provided 
information that could not be verified, we find that application of 
facts available is appropriate under sections 776(a)(2)(A), (B), and 
(C) of the Act. We further find that application of adverse facts 
available (``AFA'') is appropriate under section 776(b) because 
Watanabe failed to cooperate to the best of its ability in responding 
to the Department's requests for information.

Separate Rates

    In proceedings involving non-market economy (``NME'') countries, 
there is a rebuttable presumption that all companies within that 
country are subject to government control and thus should be assessed a 
single antidumping duty rate. It is the Department's policy to assign 
all exporters of subject merchandise in an NME country this single rate 
unless an exporter demonstrates that it is sufficiently independent so 
as to be entitled to a separate rate. Exporters can demonstrate this 
independence through the absence of both de jure and de facto 
governmental control over export activities. See Notice of Final 
Determination of Sales at Less Than Fair Value: Sparklers from the 
People's Republic of China, 56 FR 20588 (May 6, 1991), as further 
developed in Notice of Final Determination of Sales at Less Than Fair 
Value: Silicon Carbide from the People's Republic of China, 59 FR 22585 
(May 2, 1994). It is the Department's practice to require a party to 
submit evidence that it operates independently of the State-controlled 
entity in each segment of a proceeding in which it requests separate 
rate status. The process requires exporters to submit a separate-rate 
status application. See Tapered Roller Bearings and Parts Thereof, 
Finished or Unfinished, from the People's Republic of China: Final 
Results of 2005-2006 Administrative Review and Partial Rescission of 
Review, 72 FR 56724 (October 4, 2007), Peer Bearing Co. Changshan v. 
United States, 587 F.Supp. 2d 1319, 1324-25 (CIT 2008) (affirming the 
Department's determination in that review). As discussed in the 
Preliminary Results, Watanabe did not respond to the Department's 
questionnaire regarding separate rate eligibility, or submit a separate 
rate certification. Watanabe has not demonstrated that it operates free 
from government control. Therefore, the Department continues to find 
that Watanabe is part of the PRC-wide entity.

The PRC[dash]Wide Entity

    In the Preliminary Results, the Department determined that there 
were exports of merchandise under review from Watanabe, a PRC producer/
exporter that did not respond to the Department's questionnaire and 
consequently did not demonstrate its eligibility for separate-rate 
status. See 74 FR at 36665. As a result, the Department is treating 
Watanabe as part of the PRC-wide entity.
    Additionally, because we determined that Watanabe is part of the 
PRC-wide entity, the PRC-wide entity is under review. Pursuant to 
section 776(a) of the Act, we further find that because the PRC entity 
(including Watanabe) failed to respond to the Department's 
questionnaires, withheld or failed to provide information in a timely 
manner or in the form or manner requested by the Department, submitted 
information that cannot be verified, or otherwise impeded the 
proceeding, it is appropriate to apply a dumping margin for the PRC-
wide entity using the facts otherwise available on the record. 
Moreover, by failing to respond to the Department's requests for 
information, we find that the PRC-wide entity has failed to cooperate 
by not acting to the best of its ability to comply with the 
Department's requests for information in this proceeding, within the 
meaning of section 776(b) of the Act. Therefore, an adverse inference 
is warranted in selecting from the facts otherwise available. See 
Nippon, 337 F.3d at 1382-83.

Selection of Adverse Facts Available Rate

    In deciding which facts to use as AFA, section 776(b) of the Act 
and 19 CFR 351.308(c)(1) provide that the Department may rely on 
information derived from (1) the petition, (2) a final determination in 
the investigation, (3) any previous review or determination, or (4) any 
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 Circular Welded Austenitic 
Stainless Pressure Pipe from the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value, 74 FR 4913 (January 28, 
2009)).
    Generally, the Department finds that selecting the highest rate 
from any segment of the proceeding as AFA is

[[Page 63390]]

appropriate. See, e.g., Certain Cased Pencils from the People's 
Republic of China; Notice of Preliminary Results of Antidumping Duty 
Administrative Review and Intent to Rescind in Part, 70 FR 76755, 76761 
(December 28, 2005). The CIT and the Court of Appeals for the Federal 
Circuit have affirmed decisions to select the highest margin from any 
prior segment of the proceeding as the AFA rate on numerous occasions. 
See Rhone Poulenc, Inc. v. United States, 899 F.2d 1185, 1190 (Fed. 
Cir. 1990) (Rhone Poulenc); NSK Ltd. v. United States, 346 F. Supp. 2d 
1312, 1335 (CIT 2004) (upholding the application of an AFA rate which 
was the highest available dumping margin from a different respondent in 
an investigation).
    As AFA, we have assigned to the PRC-wide entity a rate of 258.21 
percent, from the investigation of CLPP from the PRC, which is the 
highest rate on the record of all segments of this proceeding. See 
Notice of Amended Final Determination of Sales at Less Than Fair Value: 
Certain Lined Paper Products from the People's Republic of China; 
Notice of Antidumping Duty Orders: Certain Lined Paper Products from 
India, Indonesia and the People's Republic of China; and Notice of 
Countervailing Duty Orders: Certain Lined Paper Products from India and 
Indonesia, 71 FR 56949 (September 28, 2006). As explained below, this 
rate has been corroborated.

Corroboration of Secondary Information

    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 
information 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 of the Act 
concerning the subject merchandise. See SAA at 870. Corroborate means 
that the Department will satisfy itself that the secondary information 
to be used has probative value. Id. To corroborate secondary 
information, the Department will, to the extent practicable, examine 
the reliability and relevance of the information to be used. See 
Preliminary Results of Antidumping Duty Administrative Reviews and 
Partial Termination of Administrative Reviews: Tapered Roller Bearings 
and Parts Thereof, Finished and Unfinished from Japan, and Tapered 
Roller Bearings Four Inches or Less in Outside Diameter, and Components 
Thereof, from Japan, 61 FR 57391, 57392 (November 6, 1996) (unchanged 
in the final determination), Final Results of Antidumping Duty 
Administrative Reviews and Termination in Part: Tapered Roller Bearings 
and Parts Thereof, Finished and Unfinished from Japan, and Tapered 
Roller Bearings Four Inches or Less in Outside Diameter, and Components 
Thereof, from Japan, 62 FR 11825 (March 13, 1997).
    The AFA rate selected here is from the investigation. This rate was 
calculated based on information contained in the petition, which was 
corroborated for the final determination. No additional information has 
been presented in the current review which calls into question the 
reliability of the information. See Certain Lined Paper Products from 
the People's Republic of China: Notice of Final Results of the 
Antidumping Duty Administrative Review, 74 FR 17160 (April 14, 2009). 
Therefore, the Department finds that the information continues to be 
reliable. In addition, the AFA rate we are applying is the rate 
currently in effect for the PRC-wide entity.

Final Results of Review

    We determine that the following margin exists for the period 
September 1, 2007, through August 31, 2008:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Producer/manufacturer                       margin
                                                              (percent)
------------------------------------------------------------------------
PRC-wide Entity (which includes Watanabe).................       258.21
------------------------------------------------------------------------

Assessment Rates

    Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 
351.212(b)(1), the Department will determine, and CBP shall assess, 
antidumping duties on all appropriate entries covered by this review. 
The Department intends to issue assessment instructions to CBP 15 days 
after the publication date of the final results of this review. We will 
instruct CBP to liquidate Watanabe's appropriate entries at the PRC-
wide rate of 258.21 percent.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the notice of final results of the administrative review 
for all shipments of CLPP from the PRC entered, or withdrawn from 
warehouse, for consumption on or after the date of publication, as 
provided by section 751(a)(2)(C) of the Act: (1) For previously 
reviewed or investigated companies not listed above that have separate 
rates, the cash-deposit rate will continue to be the company-specific 
rate published for the most recent period; (2) for all other PRC 
exporters of subject merchandise, which have not been found to be 
entitled to a separate rate, the cash-deposit rate will be PRC-wide 
rate of 258.21 percent; and (3) for all non-PRC exporters of subject 
merchandise, the cash-deposit rate will be the rate applicable to the 
PRC exporter that supplied that non-PRC exporter. These deposit 
requirements, when imposed, shall remain in effect until further 
notice.

Notification to Importers

    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This notice also serves as a reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305, which continues 
to govern business proprietary information in this segment of the 
proceeding. 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 terms of an APO 
is a violation which is subject to sanction.
    We are issuing and publishing these final results and notice in 
accordance with sections 751(a)(1) and 777(i) of the Act and 19 CFR 
351.221(b)(4).

    Dated: November 23, 2009.
Carole A. Showers,
Acting Deputy Assistant Secretary for Policy and Negotiations.

List of Comments

Comment 1: Whether Subject Merchandise Produced by Watanabe is Subject 
to the 2007-2008 Review
Comment 2: Whether the Department Correctly Applied Adverse Facts 
Available to Watanabe

[[Page 63391]]

Comment 3: Whether the Use of the PRC-Wide Rate is Proper

[FR Doc. E9-28769 Filed 12-2-09; 8:45 am]
BILLING CODE 3510-DS-P