[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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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