[Federal Register Volume 75, Number 221 (Wednesday, November 17, 2010)]
[Notices]
[Pages 70201-70203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29118]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-959]


Certain Coated Paper Suitable for High-Quality Print Graphics 
Using Sheet-Fed Presses From the People's Republic of China: Amended 
Final Affirmative Countervailing Duty Determination and Countervailing 
Duty Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (``the Department'') and the International Trade Commission 
(``ITC''), the Department is issuing a countervailing duty order on 
certain coated paper suitable for high-quality print graphics using 
sheet-fed presses (``coated paper'') from the People's Republic of 
China (``PRC''). Also, as explained in this notice, the Department is 
amending its final determination to correct certain ministerial errors.

DATES: Effective Date: November 17, 2010.

FOR FURTHER INFORMATION CONTACT: David Neubacher, Jennifer Meek, and 
Mary Kolberg, AD/CVD Operations, Office 1, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
(202) 482-5823, (202) 482-2778, and (202) 482-1785, respectively.

Background

    On September 27, 2010, the Department published its final 
determination that countervailable subsidies are being provided to 
producers and exporters of coated paper from the PRC. See Certain 
Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed 
Presses From the People's Republic of China: Final Affirmative 
Countervailing Duty Determination, 75 FR 59212 (September 27, 2010) 
(``Final Determination'').
    On November 10, 2010, the ITC notified the Department of its final 
determination pursuant to sections 705(b)(1)(A)(ii) and 705(d) of the 
Tariff Act of 1930, as amended (``the Act''), that an industry in the 
United States is threatened with material injury by reason of 
subsidized imports of subject merchandise from the PRC. See Certain 
Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed 
Presses From China and Indonesia, USITC Investigation Nos. 701-TA-470-
471 and 731-TA-1169-1170 (Final), Inv., USITC Publication 4192 
(November 2010).

Scope of the Order

    The merchandise covered by this order includes coated paper and 
paperboard\1\ in sheets suitable for high quality print graphics using 
sheet-fed presses; coated on one or both sides with kaolin (China or 
other clay), calcium carbonate, titanium dioxide, and/or other 
inorganic substances; with or without a binder; having a GE brightness 
level of 80 or higher; \2\

[[Page 70202]]

weighing not more than 340 grams per square meter; whether gloss grade, 
satin grade, matte grade, dull grade, or any other grade of finish; 
whether or not surface-colored, surface-decorated, printed (except as 
described below), embossed, or perforated; and irrespective of 
dimensions.
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    \1\ ``Paperboard'' refers to certain coated paper that is 
heavier, thicker and more rigid than coated paper which otherwise 
meets the product description. In the context of coated paper, 
paperboard typically is referred to as ``cover'', to distinguish it 
from ``text.''
    \2\ One of the key measurements of any grade of paper is 
brightness. Generally speaking, the brighter the paper the better 
the contrast between the paper and the ink. Brightness is measured 
using a GE Reflectance Scale, which measures the reflection of light 
off of a grade of paper. One is the lowest reflection, or what would 
be given to a totally black grade, and 100 is the brightest measured 
grade.
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    Coated paper includes: (a) Coated free sheet paper and paperboard 
that meets this scope definition; (b) coated groundwood paper and 
paperboard produced from bleached chemi-thermo-mechanical pulp that 
meets this scope definition; and (c) any other coated paper and 
paperboard that meets this scope definition.
    Coated paper is typically (but not exclusively) used for printing 
multi-colored graphics for catalogues, books, magazines, envelopes, 
labels and wraps, greeting cards, and other commercial printing 
applications requiring high quality print graphics.
    Specifically excluded from the scope are imports of paper and 
paperboard printed with final content printed text or graphics.
    As of 2009, imports of the subject merchandise are provided for 
under the following categories of the Harmonized Tariff Schedule of the 
United States (``HTSUS''): 4810.14.11, 4810.14.1900, 4810.14.2010, 
4810.14.2090, 4810.14.5000, 4810.14.6000, 4810.14.70, 4810.19.1100, 
4810.19.1900, 4810.19.2010, 4810.19.2090, 4810.22.1000, 4810.22.50, 
4810.22.6000, 4810.22.70, 4810.29.1000, 4810.29.5000, 4810.29.6000, 
4810.29.70, 4810.32, 4810.39 and 4810.92. While HTSUS subheadings are 
provided for convenience and customs purposes, the written description 
of the scope of this order is dispositive.

Amendment to the Final Determination

    On October 6, 2010, Appleton Coated LLC, NewPage Corporation, S.D. 
Warren Company d/b/a Sappi Fine Paper North America, and United Steel, 
Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial 
and Service Workers International Union (collectively, ``Petitioners'') 
filed timely allegations that the Department made ministerial errors in 
its Final Determination. In summary, Petitioners alleged that the 
Department made certain errors in the calculations of the preferential 
lending to the coated paper industry program and the adjusted 
consolidated sales denominator for respondent Gold East (Jiangsu) Co., 
Ltd. (``GE''). No interested party filed a rebuttal to Petitioners' 
allegations.
    After analyzing the allegations, we have determined, in accordance 
with 19 CFR 351.224(e), that we made certain ministerial errors that 
Petitioners alleged in the calculations. See Memorandum to Susan H. 
Kuhbach, Acting Deputy Assistant Secretary, AD/CVD Operations, from The 
Team, Office 1, AD/CVD Operations, ``Countervailing Duty Investigation: 
Certain Coated Paper Suitable for High-Quality Print Graphics Using 
Sheet-Fed Presses From the People's Republic of China: Ministerial 
Errors for Final Determination'' (November 12, 2010) (``Ministerial 
Error Memo''). Parties can find a complete discussion of all issues 
raised by Petitioners and the corresponding recommendations in this 
memorandum, a public version of which is on file in the Central Records 
Unit, Room 7046 of the main Commerce building.
    After correcting the ministerial errors above, we determine the ad 
valorem subsidy rates for the relevant programs are: (1) 10.54 percent 
under ``Preferential Lending to the Coated Paper Industry;'' (2) 1.11 
percent under ``Two Free, Three Half;'' (3) 1.38 percent under ``Income 
Tax Subsidies for FIEs Based on Geographic Location;'' (4) 0.35 percent 
under ``Exemption from Maintenance and Construction Taxes and Education 
Surcharges for FIEs;'' and (5) 3.51 percent under the ``Value Added-Tax 
and Tariff Exemptions on Imported Equipment.'' See Attachments 4-5 of 
the Ministerial Error Memo.
    As a result of these corrections, the countervailing duty rate for 
GE, Gold Huasheng Paper Co., Ltd., and its reported affiliated cross-
owned companies (collectively, ``Gold companies'') changed from 17.64 
percent to 19.46 percent. The countervailing duty rate for the other 
respondent in the coated paper investigation, Shandong Sun Paper 
Industry Co., Ltd. and Yanzhou Tianzhang Paper Industry Co., Ltd. 
(collectively, ``Sun companies''), also changed because the Gold 
companies' rates for certain programs, which are included in the 
calculation of Sun companies' adverse facts available rate, were 
revised based on the Ministerial Error Memo. The Sun companies' rate 
changed from 178.03 percent to 202.84 percent. Because the all-others 
rate is based on the Gold companies' rate, the countervailing duty rate 
for all-others changed from 17.64 percent to 19.46 percent. In 
accordance with 19 CFR 351.224(e), we are amending the Final 
Determination to reflect these changes.

Countervailing Duty Order

    According to section 706(b)(2) of the Act, duties shall be assessed 
on subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the ITC's notice of 
final determination if that determination is based upon the threat of 
material injury. Section 706(b)(1) of the Act states, ``{l{time} f the 
Commission, in its final determination under section 705(b), finds 
material injury or threat of material injury which, but for the 
suspension of liquidation under section 703(d)(2), would have led to a 
finding of material injury, then entries of the merchandise subject to 
the countervailing duty order, the liquidation of which has been 
suspended under section 703(d)(2), shall be subject to the imposition 
of countervailing duties under section 701(a).'' In addition, section 
706(b)(2) of the Act requires U.S. Customs and Border Protection 
(``CBP'') to refund any cash deposits or bonds of estimated 
countervailing duties posted before the date of publication of the 
ITC's final affirmative determination, if the ITC's final determination 
is based on threat other than the threat described in section 706(b)(1) 
of the Act. Because the ITC's final determination in this case is based 
on the threat of material injury and is not accompanied by a finding 
that injury would have resulted but for the imposition of suspension of 
liquidation of entries since the Department's Preliminary Determination 
\3\ was published in the Federal Register, section 706(b)(2) of the Act 
is applicable.
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    \3\ See Certain Coated Paper Suitable For High-Quality Print 
Graphics Using Sheet-Fed Presses from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Countervailing Duty Determination with Final 
Antidumping Duty Determination, 75 FR 10774 (March 9, 2010) 
(``Preliminary Determination'').
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    As a result of the ITC's determination and in accordance with 
section 706(a)(1) of the Act, the Department will direct CBP to assess, 
upon further instruction by the Department, countervailing duties equal 
to the amount of the net countervailable subsidy for all relevant 
entries of coated paper from the PRC. In accordance with section 706 of 
the Act, the Department will direct CBP to reinstitute suspension of 
liquidation,\4\

[[Page 70203]]

effective on the date of publication of the ITC's notice of final 
determination in the Federal Register, and to require a cash deposit 
for each entry of subject merchandise in an amount equal to the net 
countervailable subsidy rates listed below. See section 706(a)(3) of 
the Act. The all-others rate applies to all producers and exporters of 
subject merchandise not specifically listed.
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    \4\ The Department instructed CBP to discontinue the suspension 
of liquidation on July 7, 2010, in accordance with section 703(d) of 
the Act. Section 703(d) states that the suspension of liquidation 
pursuant to a preliminary determination may not remain in effect for 
more than four months. Entries of coated paper from the PRC made on 
or after July 7, 2010, and prior to the date of publication of the 
ITC's final determination in the Federal Register are not liable for 
the assessment of countervailing duties because of the Department's 
discontinuation, effective July 7, 2010, of the suspension of 
liquidation.

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                                                            Net subsidy
                  Exporter/manufacturer                        rate
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Gold East Paper (Jiangsu) Co., Ltd, Gold Huasheng Paper            19.46
 Co., Ltd., Gold East Trading (Hong Kong) Company Ltd.,
 Ningbo Zhonghua Paper Co., Ltd., and Ningbo Asia Pulp &
 Paper Co., Ltd.........................................
Shandong Sun Paper Industry Joint Stock Co., Ltd. and             202.84
 Yanzhou Tianzhang Paper Industry Co., Ltd..............
All Others..............................................           19.46
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Termination of the Suspension of Liquidation

    The Department will instruct CBP to terminate the suspension of 
liquidation for entries of coated paper from the PRC entered, or 
withdrawn from warehouse, for consumption prior to the publication of 
the ITC's notice of final determination. The Department will instruct 
CBP to refund any cash deposits made and release any bonds posted with 
respect to entries of coated paper entered of withdrawn from warehouse 
for consumption on or after March 9, 2010 (i.e., the date of 
publication of the Department's Preliminary Determination), but before 
the date of publication of the ITC's final determination in the Federal 
Register.
    This notice constitutes the countervailing duty order with respect 
to coated paper from the PRC, pursuant to section 706(a) of the Act. 
Interested parties may contact the Department's Central Records Unit, 
Room 7046 of the main Commerce Building, for copies of an updated list 
of countervailing duty orders currently in effect.
    This order is issued and published in accordance with section 
706(a) of the Act, 19 CFR 351.224(e), and 19 CFR 351.211(b).

     Dated: November 12, 2010.
Carole A. Showers,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-29118 Filed 11-16-10; 8:45 am]
BILLING CODE 3510-DS-P