[Federal Register Volume 80, Number 124 (Monday, June 29, 2015)]
[Notices]
[Pages 36971-36973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15901]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-560-829]


Certain Uncoated Paper From Indonesia: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final Determination 
With Final Antidumping Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and/or exporters of certain uncoated paper from Indonesia. 
The period of investigation is January 1, 2014, through December 31, 
2014. Interested parties are invited to comment on this preliminary 
determination.

DATES: Effective Date: June 29, 2015.

FOR FURTHER INFORMATION CONTACT: David Goldberger or Kate Johnson, 
Office II, AD/CVD Operations, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4136 and (202) 482-4929, respectively.

Alignment of Final Countervailing Duty (CVD) Determination With Final 
Antidumping Duty (AD) Determination

    On the same day that the Department initiated this CVD 
investigation, the Department also initiated a CVD investigation of 
certain uncoated paper from the People's Republic of China (PRC) and AD 
investigations of certain uncoated paper from Australia, Brazil, the 
PRC, Indonesia, and Portugal.\1\ The AD and CVD investigations cover 
the same merchandise. On June 17, 2015, in accordance with section 
705(a)(1) of the Tariff Act of 1930, as amended (the Act) and 19 CFR 
351.210(b)(4)(i), the petitioners \2\ requested alignment of the final 
CVD determination with the final AD determination of certain uncoated

[[Page 36972]]

paper from Indonesia.\3\ Therefore, in accordance with section 
705(a)(1) of the Act and 19 CFR 351.210(b)(4)(i), we are aligning the 
final CVD determination with the final AD determination. Consequently, 
the final CVD determination will be issued on the same date as the 
final AD determination, which is currently scheduled to be issued no 
later than November 2, 2015, unless postponed.
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    \1\ See Certain Uncoated Paper From the People's Republic of 
China and Indonesia: Initiation of Countervailing Duty 
Investigations, 80 FR 8598 (February 18, 2015); and Certain Uncoated 
Paper From Australia, Brazil, the People's Republic of China, 
Indonesia, and Portugal: Initiation of Less-Than-Fair-Value 
Investigations, 80 FR 8608 (February 18, 2015).
    \2\ The petitioners are United Steel, Paper and Forestry, 
Rubber, Manufacturing, Energy, Allied Industrial and Service Workers 
International Union; Domtar Corporation; Finch Paper LLC; P.H. 
Glatfelter Company; and Packaging Corporation of America.
    \3\ See Letter from the petitioners regarding ``Petitioners' 
Request for Alignment of Countervailing Duty Investigation Final 
Determination Deadline with Antidumping Investigation Final 
Determination Deadline'' (June 17, 2015).
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Scope of the Investigation

    The product covered by this investigation is certain uncoated paper 
from Indonesia. For a complete description of the scope of the 
investigation, see Appendix 1 to this notice.

Methodology

    The Department is conducting this CVD investigation in accordance 
with section 701 of the Act. For a full description of the methodology 
underlying our preliminary conclusions, see the Preliminary Decision 
Memorandum.\4\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix 2 to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at http://access.trade.gov and is available to all 
parties in the Central Records Unit, Room B8024 of the main Department 
of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly on the 
Internet at http://enforcement.trade.gov/frn/index.html. The signed 
Preliminary Decision Memorandum and the electronic version of the 
Preliminary Decision Memorandum are identical in content.
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    \4\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance 
regarding ``Decision Memorandum for the Preliminary Affirmative 
Countervailing Duty Determination in the Countervailing Duty 
Investigation of Certain Uncoated Paper from Indonesia,'' dated 
concurrently with this notice (Preliminary Decision Memorandum).
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    For this preliminary determination, we relied on facts available 
pursuant to section 776(a) of the Act because certain companies 
selected for individual examination--Great Champ Trading Limited (Great 
Champ), Indah Kiat Pulp & Paper TBK (IK), and Pabrik Kertas Tjiwi Kimia 
(TK)--failed to provide information requested by the Department within 
the deadlines established and, by refusing to participate as 
respondents, significantly impeded the investigation.5 In 
addition, the Government of Indonesia (GOI) did not provide requested 
information with respect to certain programs upon which we initiated an 
investigation, thereby also resulting in the Department's reliance on 
facts otherwise available, pursuant to section 776(a). Because the GOI 
did not provide the information requested for certain programs, with 
respect to those programs, we drew an adverse inference that these 
programs provide a financial contribution and are specific, pursuant to 
sections 771(5)(D) and 771(5A) of the Act. Because Great Champ, IK, and 
TK failed to cooperate by not acting to the best of their ability to 
respond to the Department's requests for necessary information, 
pursuant to section 776(b) of the Act, in selecting from among the 
facts otherwise available, we drew an adverse inference that these 
programs confer a benefit. Therefore, the Department applied an adverse 
inference in its calculation of the ad valorem estimated 
countervailable subsidy rate for Great Champ, IK, and TK. For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' section in the Preliminary Decision Memorandum.

Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated a CVD rate for each individually investigated producer/
exporter of the subject merchandise. In accordance with sections 703(d) 
and 705(c)(5)(A)(i) of the Act, for companies not individually 
investigated, we apply an ``all-others'' rate equal to the weighted-
average countervailable subsidy rates established for exporters and 
producers individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates determined entirely under 
section 776 of the Act. Therefore, we used the rate calculated for our 
sole cooperating respondent as the all-others rate.
    We preliminarily determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
APRIL Fine Paper Macao Commercial Offshore Limited, PT             43.19
 Anugrah Kertas Utama, PT Riau Andalan Kertas, PT
 Intiguna Primatama, PT Riau Andalan Pulp & Paper, PT
 Esensindo Cipta Cemerlang..............................
Great Champ Trading Limited.............................          125.97
Indah Kiat Pulp & Paper TBK, Pabrik Kertas Tjiwi Kimia..      \6\ 131.12
All Others..............................................           43.19
------------------------------------------------------------------------

    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, we 
are directing U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of certain uncoated paper from Indonesia 
that are entered, or withdrawn from warehouse, for consumption on or 
after the date of the publication of this notice in the Federal 
Register, and to require a cash deposit for such entries of merchandise 
in the amounts indicated above.
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    \5\ See sections 776(a)(2)(A)(B), and (C) of the Act.
    \6\ We are also assigning to PT Pindo Deli Pulp and Paper Mills 
the rate assigned to IK and TK. For further discussion, see the 
Memorandum to the File, ``Cross-Ownership: Countervailing Duty 
Investigation of Uncoated Paper from Indonesia,'' dated concurrently 
with this notice.
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Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondent prior to making our final 
determination.

Disclosure and Public Comment

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement.\7\ 
Interested parties may submit case and rebuttal briefs. For a schedule 
of the deadlines for filing case briefs, rebuttal briefs, and hearing 
requests, see the Preliminary Decision Memorandum.
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    \7\ See 19 CFR 351.224(b).
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U.S. International Trade Commission (ITC) Notification

    In accordance with section 703(f) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information relating to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either

[[Page 36973]]

publicly or under an administrative protective order, without the 
written consent of the Assistant Secretary for Enforcement and 
Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act.

    Dated: June 22, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix 1--Scope of the Investigation

    The merchandise covered by this investigation includes uncoated 
paper in sheet form; weighing at least 40 grams per square meter but 
not more than 150 grams per square meter; that either is a white 
paper with a GE brightness level \1\ of 85 or higher or is a colored 
paper; whether or not surface-decorated, printed (except as 
described below), embossed, perforated, or punched; irrespective of 
the smoothness of the surface; and irrespective of dimensions 
(Certain Uncoated Paper).
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    \1\ 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 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. ``Colored paper'' as used in this scope definition means a 
paper with a hue other than white that reflects one of the primary 
colors of magenta, yellow, and cyan (red, yellow, and blue) or a 
combination of such primary colors.
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    Certain Uncoated Paper includes (a) uncoated free sheet paper 
that meets this scope definition; (b) uncoated groundwood paper 
produced from bleached chemi-thermo-mechanical pulp (BCTMP) that 
meets this scope definition; and (c) any other uncoated paper that 
meets this scope definition regardless of the type of pulp used to 
produce the paper.
    Specifically excluded from the scope are (1) paper printed with 
final content of printed text or graphics and (2) lined paper 
products, typically school supplies, composed of paper that 
incorporates straight horizontal and/or vertical lines that would 
make the paper unsuitable for copying or printing purposes.
    Imports of the subject merchandise are provided for under 
Harmonized Tariff Schedule of the United States (HTSUS) categories 
4802.56.1000, 4802.56.2000, 4802.56.3000, 4802.56.4000, 
4802.56.6000, 4802.56.7020, 4802.56.7040, 4802.57.1000, 
4802.57.2000, 4802.57.3000, and 4802.57.4000. Some imports of 
subject merchandise may also be classified under 4802.62.1000, 
4802.62.2000, 4802.62.3000, 4802.62.5000, 4802.62.6020, 
4802.62.6040, 4802.69.1000, 4802.69.2000, 4802.69.3000, 4811.90.8050 
and 4811.90.9080. While HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope of the investigation is dispositive.

Appendix 2--List of Topics Discussed in the Preliminary Decision 
Memorandum

1. Summary
2. Background
3. Alignment
4. Scope Comments
5. Scope of the Investigation
6. Injury Test
7. Use of Facts Otherwise Available and Adverse Inference
8. Subsidies Valuation
9. Analysis of Programs
10. ITC Notification
11. Disclosure and Public Comment
12. Verification
13. Conclusion

[FR Doc. 2015-15901 Filed 6-26-15; 8:45 am]
 BILLING CODE 3510-DS-P