[Federal Register Volume 75, Number 203 (Thursday, October 21, 2010)]
[Notices]
[Pages 64988-64994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-26191]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-843]
Certain Lined Paper Products From India: Notice of Preliminary
Results of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration, U.S.
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an
administrative review of the antidumping duty order on certain lined
paper products (CLPP) from India. For the period September 1, 2008,
through August 31, 2009, we have preliminarily determined that Navneet
Publications (India) Limited (Navneet) did not make sales of subject
merchandise at less than normal value (NV) (i.e., sales were made at de
minimis dumping margins). If these preliminary results are adopted in
the final results of this administrative review, we will instruct U.S.
Customs and Border Protection (CBP) to liquidate appropriate entries
without regard to antidumping duties. For the same period, we have
preliminarily determined that U.S. sales have been made below NV by
Super Impex. If these preliminary results are adopted in our final
results, we will instruct CBP to assess antidumping duties based on the
difference between the export price (EP) and NV. See ``Preliminary
Results of Review'' section of this notice. Interested parties are
invited to comment on these preliminary results.
DATES: Effective Date: October 21, 2010.
FOR FURTHER INFORMATION CONTACT: Stephanie Moore (Navneet) or Cindy
Robinson (Super Impex) AD/CVD Operations, Office 3, Import
Administration, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC
20230; telephone (202) 482-3692 or (202) 482-3797, respectively.
Background
On September 1, 2009, the Department issued a notice of opportunity
to request an administrative review of this order for the period of
review (POR) of September 1, 2008, through August 31, 2009. See
Antidumping or Countervailing Duty Order, Finding, or Suspended
Investigation; Opportunity to Request Administrative Review, 74 FR
45179 (September 1, 2009).
Pursuant to a request from the Association of American School Paper
Suppliers, (petitioner),\1\ the Department published in the Federal
Register the notice of initiation of this antidumping duty
administrative review with respect to 32 companies, including Navneet
and Super Impex for the period September 1, 2008, through August 31,
2009. See Initiation of Antidumping and Countervailing Duty
Administrative Reviews and Request for Revocation in Part, 74 FR 54956
(October 26, 2009). (Initiation Notice). On October 26, 2009, the
petitioner timely withdrew its request for a review of Blue Bird
(India) Limited (Blue Bird).
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\1\ On September 30, 2009, the Department received a timely
request to conduct an administrative review of the following 32
companies: Abhinav Paper Products Pvt. Ltd.; American Scholar, Inc.,
and/or I-Scholar; Ampoules & Vials Mfg. Co., Ltd.; Bafna Exports;
Blue Bird India Ltd.; Cello International Pvt. Ltd (M/S Cello Paper
Products); Creative Divya; Corporate Stationery Pvt. Ltd.; D.D
International; Exmart International Pvt. Ltd.; Fatechand
Mahendrakumar; FFI International; Freight India Logistics Pvt. Ltd.;
International Greetings Pvt. Ltd.; Lodha Offset Limited; Magic
International Pvt. Ltd.; Marigold ExIm Pvt. Ltd.; Marisa
International; Navneet Publications (India) Ltd.; Paperwise Inc.;
Pioneer Stationery Pvt. Ltd.; Premier Exports; Riddhi Enterprises;
SAB International; SAR Transport Systems; Seet Kamal International;
Solitaire Logistics Pvt. Ltd. (Eternity Int'l Freight, forwarder on
behalf of Solitaire Logistics Pvt. Ltd.); Sonal Printers Pvt. Ltd.;
Super Impex; Swati Growth Funds Ltd.; V & M; and Yash Laminates.
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On November 3, 2009, the Department notified interested parties of
its intent to use CBP data for respondent selection. See Memorandum to
The File, Through Melissa Skinner, Office Director, Office 3 and
Through James Terpstra, Program Manager, Office 3 from Stephanie Moore,
Case Analyst titled ``Customs and Border Patrol Data for Selection of
Respondents for Individual Review.''
On November 10 and December 3, 2009, the Department received
comments regarding respondent selection from the petitioner. On January
29, 2010, the Department selected Navneet and Super Impex as companies
to be individually examined
[[Page 64989]]
in this administrative review of the antidumping duty order on CLPP
from India. See Memorandum to Melissa Skinner, Director, Office 3
Through James Terpstra, Program Manager, Office 3 from Stephanie Moore,
Case Analyst titled ``Antidumping Duty Administrative Review of Certain
Lined Paper Products from India: Selection of Respondents for
Individual Review'' (Respondent Selection Memo), dated January 29,
2010.
On February 1, 2010, the Department issued an antidumping
questionnaire (original questionnaire) to Navneet and Super Impex with
a due date of March 9, 2010. On March 12, 2010, we granted a three-week
extension until April 6, 2010, for Navneet to submit its response to
the original questionnaire. On May 6, 2010, petitioner submitted
deficiency comments regarding Navneet's April 6, 2010, original
questionnaire response. On May 14, 2010, the Department issued a
supplemental questionnaire to Navneet with a due date of May 28, 2010.
On May 27, 2010, we granted a two-week extension until June 11, 2010,
for Navneet to submit its response to the supplemental questionnaire.
With respect to Super Impex, we received Super Impex's sections A,
C, and D responses to the Department's original questionnaire on March
9, March 30, and April 14, 2010, respectively. On March 25 and April
30, 2010, petitioner submitted deficiency comments on Super Impex's
sections A, C, and D questionnaire response. On May 10 and June 24,
2010, we issued the first and second supplemental questionnaires,
respectively, to Super Impex, and Super Impex submitted its responses
on June 2 and July 7, 2010, respectively. Petitioner submitted
additional deficiency comments on Super Impex's first supplemental
response on July 17, 2010. On July 19, 2010, petitioner provided pre-
verification comments. On July 20, 2010, petitioner provided comments
on certain new factual information contained in Super Impex's second
supplemental questionnaire response.
On May 18, 2010, the Department extended the time limits for the
preliminary results. See Certain Lined Paper Products from India and
People's Republic of China: Extension of Time Limits for the
Preliminary Results of Antidumping Duty Administrative Reviews, 75 FR
27706 (May 18, 2010).
The Department conducted the sales and cost verification of Super
Impex from August 2 through August 13, 2010, in Mumbai, India. At
verification, the Department's verification team requested that Super
Impex provide updated sales and cost of production (COP) files to
reflect the minor corrections presented to the verification team. On
August 11, 2010, we received Super Impex's minor correction provided at
the outset of the verification, and on August 18, 2010, we received
Super Impex's revised U.S. sales and COP databases.
Period of Review
The period of review (POR) is September 1, 2008, through August 31,
2009.
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 loose leaf filler paper) including but not limited to
such products as single- and multi-subject notebooks, composition
books, wireless notebooks, loose leaf 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;
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
[[Page 64990]]
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 4810.22.5044, 4811.90.9050, 4811.90.9090, 4820.10.2010,
4820.10.2020, 4820.10.2030, 4820.10.2040, 4820.10.2050, 4820.10.2060,
and 4820.10.4000 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 the order is
dispositive.
Verification
As provided in section 782(i) of the Act, we have verified
information provided by Super Impex in the administrative review of the
order on subject merchandise from India using standard verification
procedures, including the examination of relevant sales and cost
information, financial records, and the selection and review of
original documentation containing relevant information. Our
verification results are outlined in the public version of our
verification report dated October 7, 2010, which is on file in the
Central Records Unit (CRU) in Room 7046 of the Department's main
building.
Product Comparisons
In accordance with section 771(16) of the Tariff Act of 1930, as
amended (the Act), all products produced by Navneet covered by the
description in the ``Scope of the Order'' section above and sold in
India during the POR are considered to be foreign like products for
purposes of determining appropriate product comparisons to U.S. sales.
We have relied on eight criteria to match U.S. sales of subject
merchandise to comparison market sales of the foreign like product: (1)
Form, (2) paper volume, (3) brightness, (4) binding type, (5) cover
material, (6) back material, (7) number of inserts, and (8) insert
material. Where there were no sales of identical merchandise in the
home market made in the ordinary course of trade to compare to U.S.
sales, we compared U.S. sales to the next most similar foreign like
product on the basis of the characteristics listed above.
For purposes of the preliminary results, where appropriate, we have
calculated the adjustment for differences in merchandise based on the
difference in the variable cost of manufacturing (VCOM) between each
U.S. model and the most similar home market model selected for
comparison.
Normal Value Comparisons
To determine whether sales of CLPP from Navneet to the United
States were made at less than NV, we compared EP to the NV, as
described in the ``Export Price'' and ``Normal Value'' sections of this
notice. In accordance with section 777A(d)(2) of the Act, we calculated
monthly weighted-average prices for NV and compared these to individual
U.S. transaction prices.
Export Price
For all U.S. sales made by Navneet and Super Impex, we used the EP
methodology, in accordance with section 772(a) of the Act, because the
subject merchandise was sold directly to the first unaffiliated
purchaser in the United States prior to importation. We based EP on
packed prices to the first unaffiliated purchaser in the United States.
When appropriate, we reduced the EP prices to reflect discounts.
In accordance with section 772(c)(2)(A) of the Act, we made
deductions, where appropriate, for movement expenses including foreign
inland freight from plant/warehouse to the port of exportation, foreign
brokerage and handling, and foreign bill of lading charges. We also
increased EP by an amount equal to the countervailing duty (CVD) rate
attributed to export subsidies in the most recently completed
countervailing duty administrative review of CLPP from India, in
accordance with section 772(c)(1)(C) of the Act.
[[Page 64991]]
Normal Value
Selection of Comparison Market
To determine whether there was a sufficient volume of sales in the
home market to serve as a viable basis for calculating NV, we compared
Navneet's and Super Impex's volume of home market sales of the foreign
like product to the volume of their U.S. sales of the subject
merchandise. Pursuant to sections 773(a)(1)(B) and 773(a)(1)(C) of the
Act, because Navneet had an aggregate volume of home market sales of
the foreign like product that was greater than five percent of its
aggregate volume of U.S. sales of the subject merchandise, we
determined that the home market was viable. Super Impex reported that
it made no sales to the home market and that its sales to third
countries were not viable. See Super Impex's Section A Response, dated
March 9, 2010, at A-3 and A-4. Therefore, for Super Impex, we used
constructed value (CV) as the basis for calculating NV, in accordance
with section 773(a)(4) of the Act.
Section 773(a)(1)(C)(i) of the Act applies to the Department's
determination of NV if the foreign like product is not sold (or offered
for sale) for consumption in the exporting country. When sales in the
home market are not viable, section 773(a)(1)(B)(ii) of the Act
provides that sales to a particular third country market may be
utilized if: (1) The prices in such market are representative; (2) the
aggregate quantity of the foreign like product sold by the producer or
exporter in the third country market is five percent or more of the
aggregate quantity of the subject merchandise sold in or to the United
States; and (3) the Department does not determine that a particular
market situation in the third country market prevents a proper
comparison with the U.S. price.
Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, the Department determines NV based on sales in the
comparison market at the same level of trade (LOT) as the EP or CEP
transactions. In order to perform the LOT analysis, we examine the
selling functions provided to different customer categories to evaluate
the LOT in a particular market. Specifically, we compare the selling
functions performed for home market sales with those performed with
respect to the EP or CEP transactions, after deductions for economic
activities occurring in the United States, pursuant to section 772(d)
of the Act and 19 CFR 351.412, to determine if the home market LOT
constituted a different LOT than the EP or CEP LOT.
Consistent with 19 CFR 351.412, to determine whether comparison
market sales were at a different LOT, we examined stages in the
marketing process and selling functions along the chain of distribution
between the producer and the unaffiliated (or arm's-length) customers.
If the comparison market sales were at a different LOT and the
differences affect price comparability, as manifested in a pattern of
consistent price differences between the sales on which NV is based and
comparison market sales at the LOT of the export transaction, we will
make an LOT adjustment under section 773(a)(7)(A) of the Act.
Navneet reported that it has five channels of distribution or five
LOTs in the home market (i.e., distributors with merchandising--full
service; distributors with no merchandising--limited service; retail
chain stores; institutional end-users who purchase materials for their
own use; and schools that purchase customized products for their own
use and for selling to students).
Section 351.412(c)(2) of the Department's regulations provides that
the Department will determine that sales are made at different LOTs if
they are made at different marketing stages (or their equivalent).
Substantial differences in selling activities are a necessary, but not
a sufficient, condition for determining that there is a difference in
the stage of marketing. Some overlap in selling activities will not
preclude a determination that sales are at different stages of
marketing.
Our analysis of the selling activities for Navneet shows that
Navneet performs similar selling activities for different customer
categories, although some of the activities were at different levels of
intensity. Moreover, some selling activities within the claimed LOT1
are at a higher level of intensity than the same selling activities in
the claimed LOT2 through LOT5. In addition, there is overlap among the
channels of distribution for the different customer categories between
LOT1 and LOT2 through LOT5 customers. Although there are differences in
intensity of selling activities among LOT2 through LOT5 customers,
this, in and of itself, does not show a substantial difference in
selling activities that would form the basis for finding distinct LOTs.
See, Certain Lined Paper Products From India: Notice of Preliminary
Results of Antidumping Duty Administrative Review, 74 FR 51558, 51563
(October 7, 2009) (Preliminary Results), unchanged in the final results
of the Second Administrative Review,\2\ and accompanying Issues and
Decision Memorandum at Comment 5. The differences in Navneet's selling
activities chart indicate that there are two LOTs in the home market:
(1) LOT1 and (2) a combined LOT2, which is comprised of Navneet's
reported LOT2 through LOT5. The selling activities in the combined LOT2
in the home market are comparable to the selling activities in the LOT
in the U.S. market. Due to the proprietary nature of this issue, please
refer to Navneet's Preliminary Calculation Memorandum for further
discussion, dated October 7, 2010 (Preliminary Calculation Memorandum).
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\2\ See Certain Lined Paper Products from India: Notice of Final
Results of Antidumping Duty Administrative Review, 75 FR 7563
(February 22, 2010).
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In the U.S. market, Navneet reported that its sales were made
through one channel of distribution to one customer category, and
therefore, at one LOT. The Department has determined that Navneet's
home market sales in the combined LOT2 are at the same stage of
marketing as the U.S. sales. We only compared home market sales in the
combined LOT2 to the U.S. sales and determined that no LOT adjustment
for Navneet's sales to the United States was necessary.
Although Navneet reported that it has five channels of distribution
or five LOTs in the home market, Navneet states that without intending
to waive its right to make further argument on this point, it has
acceded to the Department's level of trade definitions in reporting its
sales in this review. See Navneet's Questionnaire Response, dated April
6, 2010, at page B-39. Thus, Navneet, in its home market database
reported two LOTs: LOT1 sales to distributors with full-service
downstream merchandising, and a combined LOT2, which consists of sales
made through channels two through five.
Cost of Production Analysis
We are investigating Navneet's costs because during the most
recently completed segment of the proceeding in which Navneet
participated (the Second Administrative Review), the Department found
and disregarded sales that failed the cost test.
In accordance with section 773(b)(3) of the Act, we calculated a
weighted-average cost of production (COP) based on the sum of the cost
of materials and fabrication for the foreign like product, plus amounts
for selling, general and
[[Page 64992]]
administrative expenses (SG&A) and packing expenses. For these
preliminary results, we have adjusted Navneet's reported cost of
manufacturing to include common production costs not allocated to
divisions and other common production costs of the stationery division
not allocated to subdivisions.
Consistent with the Department's methodology in the second
administrative review, we calculated the COP and constructed value (CV)
of all CONNUMs sold in the home market to exclude the central excise
tax on raw material inputs. See Preliminary Results at 51564, unchanged
in the final results of the Second Administrative Review.
Test of Comparison Market Prices
As required under section 773(b)(2) of the Act, we compared the
weighted-average COP to the per-unit price of the comparison market
sales of the foreign like product, to determine whether these sales
were made at prices below the COP within an extended period of time in
substantial quantities, and whether such prices were sufficient to
permit the recovery of all costs within a reasonable period of time. We
determined the net comparison market prices for the below-cost test by
subtracting from the gross unit price any applicable movement charges,
discounts, rebates, direct and indirect selling expenses and packing
expenses which were excluded from COP for comparison purposes.
Results of COP Test
Pursuant to section 773(b)(1) of the Act, we may disregard below-
COP sales in the determination of NV if these sales have been made
within an extended period of time in substantial quantities and were
not at prices which permit recovery of all costs within a reasonable
period of time. Where 20 percent or more of a respondent's sales of a
given product during the POR were at prices less than the COP for at
least six months of the POR, we determined that sales of that model
were made in ''substantial quantities'' within an extended period of
time, in accordance with sections 773(b)(2)(B) and (C) of the Act.
Where prices of a respondent's sales of a given product were below the
per-unit COP at the time of sale and below the weighted-average per-
unit costs for the POR, we determined that sales were not at prices
which would permit recovery of all costs within a reasonable period of
time, in accordance with section 773(b)(2)(D) of the Act. In such
cases, we disregarded the below-cost sales in accordance with section
773(b)(1) of the Act.
Pursuant to section 773(b)(2)(C) of the Act, where less than 20
percent of a respondent's sales of a given product were at prices less
than the COP, we did not disregard any below-cost sales of that product
because we determined that the below-cost sales were not made in
``substantial quantities.''
We tested and identified below-cost home market sales for Navneet.
We disregarded individual below-cost sales of a given product and used
the remaining sales as the basis for determining NV, in accordance with
section 773(b)(1) of the Act. See Preliminary Calculation Memorandum.
Calculation of Normal Value Based on Comparison Market Prices
For Navneet, we based home market prices on packed prices to
unaffiliated purchasers in India. Where appropriate, in accordance with
section 773(a)(6)(B) of the Act, we deducted from the starting price
inland freight. Pursuant to 19 CFR 351.401(c), we deducted rebates and
discounts. In accordance with sections 773(a)(6)(A) and (B) of the Act,
we added U.S. packing costs and deducted comparison market packing,
respectively.
In addition, for comparisons made to EP sales, we made adjustments
for differences in circumstances of sale (COS) pursuant to section
773(a)(6)(C)(iii) of the Act and 19 CFR 351.410(b) by deducting direct
selling expenses incurred for home market sales (credit expense) and
adding U.S. direct selling expenses (i.e., credit directly linked to
sales transactions). In accordance with section 773(a)(1)(B)(i) of the
Act, we based NV on LOT2 sales. See the ``Level of Trade'' section
above.
Finally, consistent with section 773(a)(6)(B)(iii) of the Act, we
made an adjustment for central excise taxes that Navneet paid on raw
material inputs used to produce merchandise that was sold in the home
market that were not paid on the same inputs used to produce
merchandise that was exported from India. Under Indian law, Navneet was
prohibited from charging this excise tax on sales of school supplies.
In addition, the excise tax that Navneet paid on inputs into school
supplies was not refunded and was not otherwise recovered by Navneet.
Therefore, we find the tax is included in the price and adjustment is
warranted. For products other than school supplies, Navneet reported
home market selling prices net of the excise tax.
Calculation of Normal Value Based on Constructed Value
In accordance with section 773(a)(4) of the Act, we based Super
Impex's NV on CV. In accordance with section 773(e) of the Act, we
calculated CV based on the sum of Super Impex's cost of materials and
fabrication for the foreign like product, plus amounts for SG&A,
profit, and U.S. packing costs. We calculated the cost of materials and
fabrication based on the CV information provided by Super Impex in its
section D response. Because Super Impex does not have Indian sales of
the foreign like product or third country sales, the Department does
not have comparison market selling expenses or profit to use in its
calculations, as directed by section 773(e) of the Act. As an
alternative, the Department has used as selling expenses and profit for
Super Impex, data from the March 31, 2009 financial statements of two
Indian companies which are already on the records: Blue Bird and
Navneet. We found that both Blue Bird and Navneet produce and sell
merchandise within the same general category of products as the foreign
like product in the Indian market.\3\ For purposes of these preliminary
results, we calculated the selling expenses and profit for Super Impex
based on the simple average ratios of the respective selling expenses
and profit of Blue Bird and Navneet. See Memorandum from Cindy Robinson
to Melissa Skinner, Director, AD/CVD Operations, Office 3, Cost of
Production and Constructed Value Calculation Adjustments for the
Preliminary Results--Super Impex Paper Limited, dated October 7, 2010
(COP/CV Memo).
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\3\ On July 19, 2010, petitioner also placed on record the March
31, 2009, financial statements of Cello Writing Instruments &
Containers Private Limited (Cello). However, we found that Cello is
not a producer and seller of merchandise within the same general
category of products as the foreign like product in the Indian
market. Therefore, for purposes of these preliminary results, we
have not included Cello's data in the derivation of selling and
profit ratios for Super Impex. See COP/CV Memo.
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Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A(a) of the Act based on exchange rates in effect on the
dates of the U.S. sales, as certified by the Federal Reserve Bank.
Non-Selected Rate
The statute and the Department's regulations do not directly
address the establishment of rates to be applied to companies not
selected for individual examination where the Department limited its
examination in an administrative review pursuant to section 777A(c)(2)
of the Act. However, the Department normally determines the rates for
non-selected companies in
[[Page 64993]]
reviews in a manner that is consistent with section 735(c)(5) of the
Act. Section 735(c)(5)(A) of the Act instructs the Department to
calculate an all-others rate using the weighted average of the dumping
margins established for the producers/exporters individually examined,
excluding any zero or de minimis margins or any margins based on total
facts available.
In this review, Super Impex is the only respondent for which the
Department has calculated a company-specific rate that is not zero, de
minimis, or based on total facts available. Therefore, for purposes of
these preliminary results, the 29 remaining non-selected companies
subject to this review will receive the rate calculated for Super Impex
in this review. See also the ``Suspension of Liquidation'' section,
below.
Preliminary Results of the Review
We preliminarily determine that weighted-average dumping margins
exist for the following respondents for the period September 1, 2008,
through August 31, 2009, as follows:
------------------------------------------------------------------------
Weighted average margin
Manufacturer/exporter (percent)
------------------------------------------------------------------------
Navneet Publications (India) Ltd........ De minimis.
Super Impex............................. 2.12.
------------------------------------------------------------------------
Review-Specific Average Rate Applicable to the 29 Non-Selected
Companies Subject to This Review:
------------------------------------------------------------------------
Weighted average
Manufacturer/exporter margin (percent)
------------------------------------------------------------------------
Abhinav Paper Products Pvt. Ltd..................... 2.12
American Scholar, Inc. and/or I-Scholar............. 2.12
Ampoules & Vials Mfg. Co. Ltd....................... 2.12
Bafna Exports....................................... 2.12
Cello International Pvt. Ltd. (M/S Cello Paper 2.12
Products)..........................................
Corporate Stationary Pvt. Ltd....................... 2.12
Creative Divya...................................... 2.12
D.D International................................... 2.12
Exmart International Pvt. Ltd....................... 2.12
Fatechand Mahendrakumar............................. 2.12
FFI International................................... 2.12
Freight India Logistics Pvt. Ltd.................... 2.12
International Greetings Pvt. Ltd.................... 2.12
Lodha Offset Limited................................ 2.12
Magic International................................. 2.12
Marigold ExIm Pvt. Ltd.............................. 2.12
Marisa International................................ 2.12
Paperwise Inc....................................... 2.12
Pioneer Stationery Pvt. Ltd......................... 2.12
Premier Exports..................................... 2.12
Riddhi Enterprises.................................. 2.12
SAB International................................... 2.12
Sar Transport Systems............................... 2.12
Seet Kamal International............................ 2.12
Solitaire Logistics Pvt. Ltd. (Eternity Int'l 2.12
Freight, forwarder on behalf of Solitaire Logistics
Pvt. Ltd.).........................................
Sonal Printers Pvt Ltd.............................. 2.12
Swati Growth Funds Ltd.............................. 2.12
V & M............................................... 2.12
Yash Laminates...................................... 2.12
------------------------------------------------------------------------
Public Comment
The Department will disclose calculations performed within five
days of the date of publication of this notice to the parties to this
proceeding in accordance with 19 CFR 351.224(b). Interested parties may
submit case briefs no later than 30 days after the date of publication
of these preliminary results of review. See 19 CFR 351.309(c)(ii).
Rebuttal briefs are limited to issues raised in the case briefs and may
be filed no later than five days after the time limit for filing the
case briefs. See 19 CFR 351.309(d). Parties submitting arguments in
this proceeding are requested to submit with the argument: (1) A
statement of the issue, (2) a brief summary of the argument, and (3) a
table of authorities, in accordance with 19 CFR 351.309(d)(2). Further,
parties submitting case and/or rebuttal briefs are requested to provide
the Department with an additional electronic copy of the public version
of any such comments on a computer diskette. Case and rebuttal briefs
must be served on interested parties in accordance with 19 CFR
351.303(f).
An interested party may request a hearing within 30 days of
publication of these preliminary results. See 19 CFR 351.310(c). Any
hearing, if requested, ordinarily will be held two days after the due
date of the rebuttal briefs in accordance with 19 CFR 351.310(d)(1).
The Department will issue the final results of this administrative
review, which will include the results of its analysis of issues raised
in any such comments, or at a hearing, if requested, within 120 days of
publication of these preliminary results, unless extended.
[[Page 64994]]
See section 751(a)(3)(A) of the Act, and 19 CFR 351.213(h).
Assessment Rate
Upon completion of the final results of this administrative review,
the Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. Pursuant to 19 CFR 351.212(b)(1),
the Department will calculate importer-specific assessment rates for
each respondent based on the ratio of the total amount of antidumping
duties calculated for the examined sales to the total entered value of
those sales. Where the respondent did not report the entered value for
U.S. sales, we have calculated importer-specific assessment rates for
the merchandise in question by aggregating the dumping margins
calculated for all U.S. sales to each importer and dividing this amount
by the total quantity of those sales. To determine whether the duty
assessment rates were de minimis, in accordance with the requirement
set forth in 19 CFR 351.106(c)(2), we calculated importer-specific ad
valorem rates based on the estimated entered value. Where the
assessment rate is above de minimis, we will instruct CBP to assess
duties on all entries of subject merchandise by that importer. Pursuant
to 19 CFR 351.106(c)(2), we will instruct CBP to liquidate without
regard to antidumping duties any entries for which the assessment rate
is de minimis (i.e., less than 0.50 percent). The Department intends to
issue assessment instructions directly to CBP 15 days after publication
of the final results of this review.
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003. See Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). This
clarification will apply to entries of subject merchandise during the
POR produced by the respondents subject to this review for which the
reviewed companies did not know that the merchandise which it sold to
an intermediary (e.g. a reseller, trading company, or exporter) was
destined for the United States. In such instances, we will instruct CBP
to liquidate unreviewed entries at the all-others rate if there is no
rate for the intermediary involved in the transaction. For a full
discussion of this clarification, see id.
Cash Deposit Requirements
To calculate the cash deposit rate for Navneet, we divided its
total dumping margin by the total net value of its sales during the
review period. For the responsive companies which were not selected for
individual review, we have calculated a cash deposit rate based on the
simple average of the cash deposit rates calculated for the companies
selected for individual review. In this instance, there is only one
non-AFA rate which we applied.
The following deposit rates will be effective upon publication of
the final results of this administrative review for all shipments of
CLPP from India entered, or withdrawn from warehouse, for consumption
on or after the publication date, as provided by section 751(a)(2)(C)
of the Act: (1) The cash deposit rate for companies subject to this
review will be the rate established in the final results of this
review, except if the rate is less than 0.5 percent and, therefore, de
minimis, no cash deposit will be required; (2) for previously reviewed
or investigated companies not listed above, the cash deposit rate will
continue to be the company-specific rate published for the most recent
final results for a review in which that manufacturer or exporter
participated; (3) if the exporter is not a firm covered in this review,
a prior review, or the original less-than-fair-value (LTFV)
investigation, but the manufacturer is, the cash deposit rate will be
the rate established for the most recent final results for the
manufacturer of the merchandise; and (4) if neither the exporter nor
the manufacturer is a firm covered in this or any previous review
conducted by the Department, the cash deposit rate will be 3.91
percent, the all-others rate established in the LTFV investigation. See
Lined Paper Orders.\4\ These cash deposit requirements, when imposed,
shall remain in effect until further notice.
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\4\ 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)
(Lined Paper Orders).
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Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) 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.
These preliminary results of administrative review are issued and
published in accordance with sections 751(a)(1) and 777(i)(1) of the
Act and 19 CFR 351.221(b)(4).
Dated: October 7, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-26191 Filed 10-20-10; 8:45 am]
BILLING CODE 3510-DS-P