[Federal Register Volume 80, Number 202 (Tuesday, October 20, 2015)]
[Notices]
[Pages 63535-63537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26634]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-854]


Supercalendered Paper From Canada: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of supercalendered paper (SC paper) from Canada. The period of 
investigation is January 1, 2014, through December 31, 2014.

DATES: Effective Date: October 20, 2015.

FOR FURTHER INFORMATION CONTACT: Dana Mermelstein or David Neubacher, 
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-
1391 and (202) 482-5823, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioner in this investigation is the Coalition for Fair 
Paper Imports. The Coalition for Fair Paper Imports is composed of 
Madison Paper Industries and Verso Corporation. In addition to the 
Government of Canada, the mandatory respondents in this investigation 
are (1) Port Hawkesbury Paper LP, 6879900 Canada Inc., Port Hawkesbury 
Investments Ltd., Port Hawkesbury Paper GP, Port Hawkesbury Paper 
Holdings Ltd., Port Hawkesbury Paper Inc., and Pacific West Commercial 
Corporation (collectively, Port Hawkesbury); and (2) Resolute FP Canada 
Inc., Fibrek General Partnership, Forest Products Mauricie LP, Produits 
Forestiers Petit-Paris Inc., and Soci[eacute]t[eacute] en Commandite 
Scierie Opitciwan (collectively, Resolute).

Case History

    The events that have occurred since the Department published the 
Preliminary Determination \1\ on August 3, 2015, are discussed in the 
Issues and Decision Memorandum.\2\ The Issues and 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 
https://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 Issues and

[[Page 63536]]

Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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    \1\ See Supercalendered Paper from Canada: Preliminary 
Affirmative Countervailing Duty Determination, 80 FR 45951 (August 
3, 2015) (Preliminary Determination), and accompanying Preliminary 
Decision Memorandum.
    \2\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance, regarding ``Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of 
Supercalendered Paper from Canada,'' dated concurrently with this 
notice (Issues and Decision Memorandum).
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Scope of the Investigation

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

Methodology

    The Department conducted this countervailing duty investigation in 
accordance with section 701 of the Tariff Act of 1930, as amended (the 
Act). The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum, which is hereby 
adopted by this notice. A list of the issues that parties have raised, 
and to which we responded in the Issues and Decision Memorandum, is 
attached to this notice as Appendix 2. Based on our analysis of the 
comments received and our findings at verification, we made certain 
changes to the respondents' subsidy rate calculations since the 
Preliminary Determination.
    For this determination, we have relied partially on facts available 
for Resolute. Further, we have drawn an adverse inference in selecting 
from among the facts otherwise available to calculate the ad valorem 
rate for Resolute, because the company did not act to the best of its 
ability when responding to the Department's request for information.\3\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Issues and Decision Memorandum.
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    \3\ See sections 776(a) and (b) of the Act.
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Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for each individually investigated respondent 
company. Section 705(c)(5)(A)(i) of the Act states that, for companies 
not individually investigated, we will determine 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.
    Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, 
we have calculated the ``all others'' rate as a weighted average of the 
rates of Port Hawkesbury and Resolute, using the publicly ranged values 
for each company's exports of subject merchandise to the United States 
to calculate the weighted average, because to use the actual sales 
values risks disclosure of proprietary information.\4\
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    \4\ See Memorandum to the File, ``Calculation of the All Others 
Rate for the Final Determination in the Countervailing Duty 
Investigation of Supercalendered Paper from Canada,'' (October 13, 
2015).
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    We determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Port Hawkesbury.............................................       20.18
Resolute....................................................       17.87
All Others..................................................       18.85
------------------------------------------------------------------------

    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of subject 
merchandise from Canada that were entered or withdrawn from warehouse, 
for consumption on or after August 3, 2013, the date of publication of 
the Preliminary Determination in the Federal Register, and to collect 
cash deposits of estimated countervailing duty at the rates determined 
in the Preliminary Determination.
    In accordance with section 705(c)(1)(B)(ii) of the Act, we are 
directing CBP to continue to suspend liquidation of all imports of the 
subject merchandise from Canada that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. The suspension of liquidation 
instructions will remain in effect until further notice. We are also 
directing CBP to collect cash deposit of estimated countervailing duty 
at the rates identified above.
    We will issue a countervailing duty order pursuant to section 
706(a) of the Act if the United States International Trade Commission 
(ITC) issues a final affirmative injury determination. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) 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 related 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 publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: October 13, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix 1

Scope of the Investigation

    The merchandise covered by this investigation is supercalendered 
paper (SC paper). SC paper is uncoated paper that has undergone a 
calendering process in which the base sheet, made of pulp and filler 
(typically, but not limited to, clay, talc, or other mineral 
additive), is processed through a set of supercalenders, a 
supercalender, or a soft nip calender operation.\1\
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    \1\ Supercalendering and soft nip calendering processing, in 
conjunction with the mineral filler contained in the base paper, are 
performed to enhance the surface characteristics of the paper by 
imparting a smooth and glossy printing surface. Supercalendering and 
soft nip calendering also increase the density of the base paper.
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    The scope of this investigation covers all SC paper regardless 
of basis weight, brightness, opacity, smoothness, or grade, and 
whether in rolls or in sheets. Further, the scope covers all SC 
paper that meets the scope definition regardless of the type of pulp 
fiber or filler material used to produce the paper.
    Specifically excluded from the scope are imports of paper 
printed with final content of printed text or graphics.
    Subject merchandise primarily enters under Harmonized Tariff 
Schedule of the United States (HTSUS) subheading 4802.61.3035, but 
may also enter under subheadings 4802.61.3010, 4802.62.3000, 
4802.62.6020, and 4802.69.3000. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the

[[Page 63537]]

written description of the scope of the investigation is 
dispositive.

Appendix 2

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
    a. Period of Investigation
    b. Allocation Period
    c. Attribution of Subsidies
    d. Denominators
    e. Loan Interest Rate Benchmarks and Discount Rates
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
    a. Programs Determined to be Countervailable
    b. Programs Determined To Be Not Used or Not to Confer a Benefit 
During the POI
    c. Program Determined To Be Not Countervailable
VII. Analysis of Comments
    Comment 1: The Department's Selection of Mandatory and Voluntary 
Respondents
    Comment 2: The Calculation of the All Other's Rate
    Comment 3: Whether the Department Should Allow Irving to Post 
Bonds Until the Final Results of an Expedited Review
    Comment 4: Whether Port Hawkesbury is Creditworthy
    Comment 5: Whether the GNS' Hot Idle Funding is Extinguished
    Comment 6: Whether the GNS' FIF Funding is Extinguished
    Comment 7: Whether Assistance Under the Outreach Agreement is 
Countervailable
    Comment 8: Whether Port Hawkesbury's Private Stumpage Purchases 
Provide an Appropriate Benchmark for Port Hawkesbury's Crown 
Stumpage Purchases
    Comment 9: Land for MTAR
    Comment 10 Whether the NSUARB is an Authority
    Comment 11: Whether the Government Entrusted or Directed NSPI to 
Provide a Financial Contribution
    Comment 12: Whether to Use a Tier 1 Benchmark
    Comment 13: Whether the Port Hawkesbury LRR is based on Market 
Principles
    Comment 14: Whether Steam for LTAR Provides a Countervailable 
Subsidy
    Comment 15: Whether the Property Tax Reduction in Richmond 
County Provides a Countervailable Subsidy
    Comment 16: Whether the PWCC Indemnity Loan Program Should be 
Excluded from Port Hawkesbury's Cash Deposit Rate
    Comment 17: Whether to Apply AFA to Resolute
    Comment 18: Whether the Support for the Forest Industry Program 
(Investissement Qu[eacute]bec Loans) Provides Countervailable 
Subsidies to Resolute's SC Paper Production
    Comment 19: Whether Certain Programs Provides Countervailable 
Subsidies to Resolute's SC Paper Production
    Comment 20: Whether Subsidies are Extinguished by Changes in 
Ownership
VIII. Conclusion
Appendix I: Acronym and Abbreviation Table
Appendix II: Litigation Table
Appendix III: Administrative Determinations and Notices Table
Appendix IV: Case-Related Documents
Appendix V: Miscellaneous Table (Regulatory, Statutory, Articles, 
etc.)

[FR Doc. 2015-26634 Filed 10-19-15; 8:45 am]
 BILLING CODE 3510-DS-P