[Federal Register Volume 81, Number 12 (Wednesday, January 20, 2016)]
[Notices]
[Pages 3110-3112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01013]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-023]


Certain Uncoated Paper From the People's Republic of China: Final 
Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain uncoated paper (uncoated paper) from the People's Republic 
of China (PRC). For more information on the estimated subsidy rate, see 
the ``Final Determination and Suspension of Liquidation'' section of 
this notice. The period of investigation is January 1, 2014, through 
December 31, 2014.

DATES: Effective: January 20, 2016.

FOR FURTHER INFORMATION CONTACT: Patricia Tran or Joy Zhang, Office 
III, 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-
1503 or (202) 482-1168, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The events that have occurred since the Department published the 
Preliminary Determination on June 29, 2015 and Notice of Correction on 
July 9, 2015,\1\ are discussed in the Issues and Decision Memorandum, 
which is hereby incorporated in this notice.\2\ This memorandum also 
details the changes we made since the Preliminary Determination to the 
subsidy rates calculated for the mandatory respondents and all other 
producers/exporters. 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 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 Issues and Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed Issues and Decision Memorandum and the 
electronic version of the Issues and Decision Memorandum are identical 
in content.
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    \1\ See Certain Uncoated Paper From the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping Duty 
Determination, 80 FR 36968 (June 29, 2015) (Preliminary 
Determination), and Certain Uncoated Paper From the People's 
Republic of China: Notice of Correction to Preliminary Affirmative 
Countervailing Duty Determination, 80 FR 39409 (July 9, 2015) 
(Notice of Correction).
    \2\ See Memorandum to Paul Piquado, ``Issues and Decision 
Memorandum for the Final Affirmative Countervailing Duty 
Determination in the Countervailing Duty Investigation of Certain 
Uncoated Paper from the People's Republic of China'' (January 8, 
2016) (Issues and Decision Memorandum).

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[[Page 3111]]

Scope of the Investigation

    The scope of the investigation covers uncoated paper. For a 
complete description of the scope of the investigation, see Appendix I.

Analysis of Subsidy Programs and Comments Received

    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, dated concurrently 
with this notice. A list of the issues that parties raised, and to 
which we responded in the Issues and Decision Memorandum, is attached 
to this notice as Appendix II.

Use of Facts Otherwise Available, Including Adverse Inferences

    As described in the Preliminary Determination, Shandong Sun Paper 
Industry Joint Stock Co., Ltd., and Sun Paper (Hong Kong) Co., Ltd. 
(collectively, Sun Paper Companies) and UPM (China) Co., Ltd. (UPM) 
each notified the Department that it would not participate in this 
investigation.\3\ Thus, for the final determination, we are basing the 
countervailing duty (CVD) rate for Sun Paper Companies and UPM on facts 
otherwise available, pursuant to sections 776(a)(2)(C) and (D) of the 
Tariff Act of 1930, as amended (the Act). Further, because Sun Paper 
Companies and UPM did not cooperate to the best of their ability in 
this investigation, we also determine that an adverse inference is 
warranted, pursuant to section 776(b) of the Act. As adverse facts 
available (AFA), we have assigned Sun Paper Companies and UPM, each a 
rate of 185.25 percent. For a full discussion of this issue, see the 
Issues and Decision Memorandum.
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    \3\ See Letter from Sun Paper Companies, ``Certain Uncoated 
Paper from the People's Republic of China--Withdrawal of 
Participation in Investigation,'' (April 8, 2015) (Sun Paper 
Companies Withdrawal Letter) and UPM's submission, ``Uncoated Paper 
From the People's Republic of China (C-570-023) Investigation; UPM 
(China) Co. Ltd.'s Letter Regarding Questionnaire Responses,'' (May 
6, 2015) (UPM Withdrawal Letter).
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Final Determination and Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for Asia Symbol (Guangdong) Paper Co., Ltd. (AS 
Guangdong), Asia Symbol (Shandong) Pulp & Paper Co., Ltd. (AS 
Shandong), Asia Symbol (Guangdong) Omya Minerals Co., Ltd. (AS Omya), 
and Greenpoint Global Trading (Macao Commercial Offshore) Limited 
(Greenpoint) (collectively, Asia Symbol Companies). 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. Where the rates for investigated 
companies are zero or de minimis, or based entirely on facts otherwise 
available, section 705(c)(5)(A)(ii) of the Act instructs the Department 
to establish an ``all-others'' rate using ``any reasonable method.'' As 
discussed above, we determined Sun Paper Companies and UPM rates based 
entirely on AFA in accordance with sections 776(a) and (b) of the Act. 
Therefore, we used the rate calculated for Asia Symbol Companies as the 
``all-others'' rate. We intend to disclose to parties the calculations 
performed in this proceeding within five days of the public 
announcement of this final determination in accordance with 19 CFR 
351.224(b).
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
              Company                            Subsidy rate
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Asia Symbol (Guangdong) Paper Co.,   7.23 percent.
 Ltd. (AS Guangdong), Asia Symbol
 (Shandong) Pulp & Paper Co., Ltd.
 (AS Shandong), Asia Symbol
 (Guangdong) Omya Minerals Co.,
 Ltd. (AS Omya), and Greenpoint
 Global Trading (Macao Commercial
 Offshore) Limited (Greenpoint)
 (collectively, Asia Symbol
 Companies).
Shandong Sun Paper Industry Joint    176.75 percent.
 Stock Co., Ltd. (Shandong Sun
 Paper), and Sun Paper (Hong Kong)
 Co., Ltd. (Sun Paper HK)
 (collectively, Sun Paper
 Companies).
UPM (China) Co. Ltd. (UPM).........  176.75 percent.
All-Others.........................  7.23 percent.
------------------------------------------------------------------------

    As a result of our affirmative Preliminary Determination, pursuant 
to sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise from the PRC which were entered or withdrawn from 
warehouse, for consumption on or after June 29, 2015, the date of the 
publication of the Preliminary Determination in the Federal Register.
    In accordance with section 703(d) of the Act, we later issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after October 27, 2015, but to continue the suspension 
of liquidation of all entries from June 29, 2015, through October 26, 
2015, as appropriate.
    We will issue a CVD order and reinstate the suspension of 
liquidation in accordance with our final determination and under 
section 706(a) of the Act if the United States International Trade 
Commission (ITC) issues a final affirmative injury determination, and 
we will instruct CBP to require a cash deposit of estimated 
countervailing duties for such entries of merchandise in the amounts 
indicated above. 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 as a result of the suspension of 
liquidation will be refunded.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final 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

[[Page 3112]]

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 that is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: January 8, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by the 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 \4\ 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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    \4\ 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 ground wood 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. For 
purposes of this scope definition, paper shall be considered 
``printed with final content'' where at least one side of the sheet 
has printed text and/or graphics that cover at least five percent of 
the surface area of the entire sheet.
    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 II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Application of the Countervailing Duty Law to Imports From the 
PRC
V. Subsidies Valuation
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Analysis of Comments
    Comment 1: Whether To Reverse the Department's Government 
``Authorities'' Determination
    Comment 2: Whether To Reverse the Department's Specificity 
Determination for the Provision of Calcium Carbonate and Caustic 
Soda for Less Than Adequate Remuneration (LTAR)
    Comment 3: Whether To Reverse the Department's Market Distortion 
Determination
    Comment 4: Whether To Exclude Policy Loan Observation 95 From 
the Final Determination Calculations
    Comment 5: Whether To Include Surcharges in International 
Freight Calculations for Calcium Carbonate and Caustic Soda 
Benchmarks
    Comment 6: Whether To Incorporate the Minor Corrections Into the 
Final Calculations
    Comment 7: Whether To Revise the Provision of Coal for Less Than 
Adequate Remuneration Benchmark
    Comment 8: Whether the Provision of Water for LTAR Confers a 
Benefit
    Comment 9: Whether the Provision of Land to State-Owned 
Enterprises (SOEs) for LTAR is Countervailable
X. Recommendation

[FR Doc. 2016-01013 Filed 1-19-16; 8:45 am]
 BILLING CODE 3510-DS-P