[Federal Register Volume 80, Number 38 (Thursday, February 26, 2015)]
[Notices]
[Pages 10457-10458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-04081]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-827]


Certain Cased Pencils From the People's Republic of China: Notice 
of Initiation and Preliminary Results of Antidumping Duty Changed 
Circumstances Review

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) has received 
information sufficient to warrant initiation of a changed circumstances 
review of the antidumping duty order on certain cased pencils (pencils) 
from the People's Republic of China (PRC).\1\ Based upon the request, 
the Department is initiating a changed circumstances review (CCR) to 
determine whether pencils exported by Beijing FILA Dixon Stationery 
Co., Ltd.\2\ (Beijing Dixon) continue not to be subject to the Order. 
In response to the request, and pursuant to section 751(b) of the 
Tariff Act of 1930, as amended (the Act), 19 CFR 351.216, and 19 CFR 
351.221(c)(3), the Department preliminarily determines that Beijing 
Dixon, after the changed circumstances, is the successor-in-interest to 
Beijing Dixon at the time of the Revocation, such that the revocation 
of the antidumping duty order with respect to Beijing Dixon \3\ 
continues to apply to Beijing Dixon as currently structured. We invite 
interested parties to comment on these preliminary results.
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    \1\ See Antidumping Duty Order: Certain Cased Pencils From the 
People's Republic of China, 59 FR 66909 (December 28, 1994) (Order).
    \2\ A/k/a Beijing Dixon Ticonderoga Stationery Company, Ltd., 
and Beijing Dixon Stationery Company.
    \3\ See Certain Cased Pencils From the People's Republic of 
China: Final Results of Antidumping Duty Administrative Review and 
Determination To Revoke Order In Part; 2010-2011, 78 FR 42932 (July 
18, 2013) (Revocation) and accompanying Issues and Decision 
Memorandum (IDM).

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DATES: Effective: February 26, 2015.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, Department of Commerce, 14th Street and Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-6478.

SUPPLEMENTARY INFORMATION: On December 28, 1994, the Department 
published the Order on pencils from the PRC.\4\ On July 18, 2013, the 
Department revoked the Order on pencils from the PRC with respect to 
pencils exported by Beijing Dixon.\5\
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    \4\ See Order.
    \5\ See Revocation and accompanying IDM.
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Background

    On November 27, 2014, pursuant to 19 CFR 351.216 and 19 CFR 
351.221, Beijing Dixon, and the Dixon Ticonderoga Company 
(Ticonderoga), Beijing Dixon's U.S. parent company, requested a CCR 
because Beijing Dixon's production of pencils is now performed by Fila 
Dixon Stationery (Kunshan) Co., Ltd. (Kunshan Dixon), a wholly-owned 
subsidiary of Beijing Dixon formed after the Revocation.\6\ Beijing 
Dixon and Dixon Ticonderoga requested that the Department ``confirm 
that {Kunshan Dixon{time}  is the same entity as (or successor-in-
interest to) Beijing Dixon.'' \7\ Beijing Dixon produced and exported 
pencils at the time of the Revocation. Beijing Dixon has since amended 
its business license and continues to function as the exporter of 
pencils, now produced by its subsidiary Kunshan Dixon.\8\ Based on 
these events since the Revocation, Ticonderoga and Beijing Dixon 
contend that Kunshan Dixon is the successor-in-interest to Beijing 
Dixon; as such, they request that the Department apply its 
determination to revoke the Order with respect to Beijing Dixon to 
pencils produced by Kunshan Dixon and exported by Beijing Dixon.
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    \6\ See letter from Dixon, ``Request for Changed Circumstances 
Review pursuant to 19 CFR 351.216 on behalf of Dixon Ticonderoga 
Company'' dated November 27, 2014 at 4 (CCR Request) and refiled on 
December 10, 2014.
    \7\ Id. at 2.
    \8\ Id. at 5.
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Scope of the Order

    The merchandise subject to the order includes pencils from the PRC. 
Pencils are currently classifiable under Harmonized Tariff Schedule of 
the United States (HTSUS) subheading 9609.1010. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written product description is dispositive.\9\
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    \9\ For a complete description of the Scope of the Order, please 
see Memorandum to Paul Piquado, Assistant Secretary for Enforcement 
and Compliance, from Christian Marsh, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, ``Antidumping Duty 
Order on Certain Cased Pencils From the People's Republic of China: 
Decision Memorandum for Preliminary Results of Antidumping Duty 
Changed Circumstances Review Requested by the Dixon Ticonderoga 
Companies,'' dated concurrently with this notice (Preliminary 
Decision Memorandum).
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Methodology

    In making a successor-in-interest determination, the Department 
typically examines several factors including, but not limited to, 
changes in: (1) Management; (2) production facilities; (3) supplier 
relationships; and (4) customer base.\10\ While no single factor or 
combination of factors will necessarily be dispositive, the Department 
generally will consider the new company to be the successor to the 
predecessor if the resulting operations of the successor are not 
materially dissimilar to that of its predecessor.\11\

[[Page 10458]]

Thus, if the record demonstrates that, with respect to the production 
and sale of the subject merchandise, the new company operates as the 
same business entity as the predecessor company, the Department may 
assign the new company the cash deposit rate of its predecessor.\12\ 
For a full description of the methodology underlying our conclusions, 
see the Preliminary Decision Memorandum. A list of topics discussed in 
the Preliminary Decision Memorandum is included as Appendix I of this 
notice.
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    \10\ See, e.g., Certain Activated Carbon From the People's 
Republic of China: Notice of Initiation of Changed Circumstances 
Review, 74 FR 19934, 19935 (April 30, 2009).
    \11\ See, e.g., Notice of Initiation of Antidumping Duty Changed 
Circumstances Review: Certain Forged Stainless Steel Flanges from 
India, 71 FR 327, 327 (January 4, 2006).
    \12\ See, e.g., Fresh and Chilled Atlantic Salmon From Norway; 
Final Results of Changed Circumstances Antidumping Duty 
Administrative Review, 64 FR 9979, 9980 (March 1, 1999).
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Initiation and Preliminary Results of the Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Act and 19 CFR 351.216(d), the 
Department will conduct a CCR upon receipt of a request from an 
interested party or receipt of information concerning an antidumping 
duty order which shows changed circumstances sufficient to warrant a 
review of the order. Section 351.221(c)(3)(ii) of the Department's 
regulations permits the Department to combine the initiation and 
preliminary results of a CCR if the Department concludes that expedited 
action is warranted. In this instance, we have information on the 
record necessary to reach the preliminary results of CCR. As such, we 
find that expedited action is warranted. Accordingly, we have combined 
the preliminary results with the initiation.
    We preliminarily determine that Beijing Dixon, under its new 
business license, (i.e., Beijing Dixon is now registered as an 
exporter, and it exports pencils produced by Kunshan Dixon), is the 
successor-in-interest to Beijing Dixon for the purposes of 
administering the Order and it revocation with respect to Beijing 
Dixon. The Preliminary Decision Memorandum provides a full description 
of the analysis underlying our conclusions.

Public Comment

    Interested parties are invited to comment on these preliminary 
results in accordance with 19 CFR 351.309(c)(1)(ii). Pursuant to 19 CFR 
351.310(c), any interested party may request a hearing within 30 days 
of publication of this notice. Parties will be notified of the time and 
date of any hearing, if requested. Pursuant to 19 CFR 
351.309(c)(1)(ii), interested parties may submit case briefs and/or 
written comments not later than 30 days after the publication of this 
notice. Rebuttal briefs, and rebuttals to written comments, which must 
be limited to issues raised in such briefs or comments, may be filed 
not later than 5 days after the date of publication of this notice. 
Parties who submit case briefs or rebuttal briefs in this CCR are 
requested to submit with each argument: (1) A statement of the issue; 
and (2) a brief summary of the argument; and (3) a table of 
authorities. Interested parties who wish to comment on the preliminary 
results must file briefs electronically using ACCESS. An 
electronically-filed document must be received successfully in its 
entirety by the Department's electronic records system, ACCESS, by 5 
p.m. Eastern Time on the date the document is due.
    In accordance with 19 CFR 351.216(e), the Department intends to 
issue the final results of this changed circumstance review not later 
than 270 days after the date on which the review is initiated, or 
within 45 days if all parties agree to our preliminary finding.

Notification to Interested Parties

    This notice is issued and published in accordance with sections 
751(b) and 777(i)(1) of the Act, and 19 CFR 351.216 and 
351.221(c)(3)(ii).

    Dated: February 18, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

1. Summary
2. Background
3. Scope of the Order
4. Successor-in-Interest Analysis
    a. Analytical Framework
    b. Relevant Facts
    i. Management
    ii. Production Facilities
    iii. Customer Base
    iv. Suppliers
    c. Analysis
    i. Time Period
    ii. Successorship Analysis
    1. Management
    2. Production Facilities
    3. Customer Base
     Suppliers
5. Recommendation

[FR Doc. 2015-04081 Filed 2-25-15; 8:45 am]
BILLING CODE 3510-DS-P