[Federal Register Volume 83, Number 53 (Monday, March 19, 2018)]
[Notices]
[Pages 11960-11963]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05486]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-861]


Certain Uncoated Groundwood Paper From Canada: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that certain uncoated groundwood paper (UGW paper) from Canada is 
being, or is likely to be, sold in the United States at less than fair 
value (LTFV). The period of investigation (POI) is July 1, 2016, 
through June 30, 2017.

DATES: Applicable March 19, 2018.

FOR FURTHER INFORMATION CONTACT: David Goldberger or Terre Keaton 
Stefanova, AD/CVD Operations, Office II, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4136 
or (202) 482-1280, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on September 
1, 2017.\1\ On December 21, 2017, Commerce postponed the preliminary 
determination of this investigation until March 7, 2018.\2\ Commerce 
exercised its discretion to toll all deadlines affected by the closure 
of the Federal Government from January 20 through January 22, 2018. If 
the new

[[Page 11961]]

deadline falls on a non-business day, in accordance with Commerce's 
practice, the deadline will become the next business day. The revised 
deadline for the preliminary determination of this investigation is now 
March 12, 2018.\3\
---------------------------------------------------------------------------

    \1\ See Certain Uncoated Groundwood Paper from Canada: 
Initiation of Less-Than-Fair-Value Investigation, 82 FR 41599 
(September 1, 2017) (Initiation Notice).
    \2\ See Certain Uncoated Groundwood Paper From Canada: 
Postponement of Preliminary Determination in the Less-Than-Fair-
Value Investigation, 82 FR 60586 (December 21, 2017).
    \3\ See Memorandum, ``Deadlines Affected by the Shutdown of the 
Federal Government,'' dated January 23, 2018. All deadlines in this 
segment of the proceeding have been extended by three days.
---------------------------------------------------------------------------

    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\4\ A list of topics included in the Preliminary Decision 
Memorandum is included as Appendix II 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 https://access.trade.gov, and 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 at http://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary 
Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Certain 
Uncoated Groundwood Paper,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The product covered by this investigation is UGW paper from Canada. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\6\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\7\
---------------------------------------------------------------------------

    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \6\ See Initiation Notice.
    \7\ See Memorandum, ``Certain Uncoated Groundwood Paper from 
Canada: Scope Comments Decision Memorandum for the Preliminary 
Determination'' (Preliminary Scope Decision Memorandum), dated 
concurrently with this preliminary determination.
---------------------------------------------------------------------------

    After evaluating these comments, Commerce has preliminarily 
modified the scope language as it appeared in the Initiation Notice to 
exclude: 1) Paper that has undergone a creping process over the entire 
surface area of the paper; 2) UGW construction paper and UGW manila 
drawing paper in sheet or roll format; and 3) directory paper. See the 
revised scope in Appendix I to this notice. For further discussion, see 
the Preliminary Scope Decision Memorandum.

Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce calculated export price in accordance 
with section 772(a) of the Act. Alternatively, as appropriate, Commerce 
calculated constructed export price in accordance with section 772(b) 
of the Act. Normal value (NV) is calculated in accordance with section 
773 of the Act. For a full description of the methodology underlying 
the preliminary determination, see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that, 
in the preliminary determination, Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    In this investigation, Commerce preliminarily found zero rates for 
Resolute FP Canada Inc. and Donohue Malbaie Inc. (collectively, 
Resolute), and White Birch Paper Canada Company, Papier Masson WB LP, 
FF Soucy WB LP, and Stadacona WB LP (collectively, White Birch Paper). 
Therefore, the only rate that is not zero, de minimis, or based 
entirely on facts otherwise available is the rate calculated for 
Catalyst Pulp and Paper Sales, Inc. and Catalyst Paper General 
Partnership (collectively, Catalyst). Consequently, the rate calculated 
for Catalyst is also assigned as the rate for all-other producers and 
exporters in this investigation.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Catalyst Pulp and Paper Sales, Inc./Catalyst Paper General         22.16
 Partnership................................................
Resolute FP Canada Inc/Donohue Malbaie Inc..................        0.00
White Birch Paper Canada Company/Papier Masson WB LP/FF             0.00
 Soucy WB LP/Stadacona WB LP................................
All Others..................................................       22.16
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will 
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows: 
(1) The cash deposit rate for the respondents listed above will be 
equal to the company-specific estimated weighted-average dumping 
margins determined in this preliminary determination, except if that 
rate is zero or de minimis, no cash deposit will be required; (2) if 
the exporter is not a respondent identified above, but the producer is, 
then the cash deposit rate will be equal to the company-specific 
estimated weighted-average dumping margin established for that producer 
of the subject merchandise, except as explained below; and (3) the cash 
deposit rate for all other producers and exporters will be equal to the 
all-others estimated weighted-average dumping margin.
    Because the estimated weighted-average dumping margins for Resolute 
and White Birch Paper are zero, entries of shipments of subject 
merchandise from these companies will not be subject to suspension of 
liquidation or cash deposit requirements. In such situations, Commerce 
applies the exclusion to the provisional measures to the producer/
exporter combination that was examined in the investigation. 
Accordingly, Commerce is directing CBP not to suspend liquidation of

[[Page 11962]]

entries of subject merchandise produced and exported by: (1) Resolute; 
and (2) White Birch Paper. Entries of shipments of subject merchandise 
from Resolute or White Birch Paper in any other producer/exporter 
combination, or by third parties that sourced subject merchandise from 
the excluded producer/exporter combination, or by third parties that 
sourced subject merchandise from the excluded producer/exporter 
combinations, are subject to the provisional measures at the all others 
rate.
    Should the final estimated weighted-average dumping margin be zero 
or de minimis for Resolute and White Birch Paper, entries of shipments 
of subject merchandise produced and exported by either Resolute or 
White Birch Paper will be excluded from the potential antidumping duty 
order. Such exclusion is not applicable to merchandise exported to the 
United States by Resolute or White Birch Paper in any other producer/
exporter combinations or by third parties that sourced subject 
merchandise from the excluded producer/exporter combinations.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\8\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
---------------------------------------------------------------------------

    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On January 23, 2018, pursuant to 19 CFR 351.210(e), the petitioner 
requested that Commerce postpone the final determination and that 
provisional measures be extended to a period not to exceed six 
months.\9\ Additionally, on January 16, January 19, and January 23, 
2018, White Birch Paper, Catalyst, and Resolute, respectively, 
requested that Commerce postpone the final determination and that 
provisional measures be extended to a period not to exceed six 
months.\10\ In accordance with section 735(a)(2)(A) of the Act and 19 
CFR 351.210(b)(2)(ii), because: (1) The preliminary determination is 
affirmative; (2) the requesting exporters account for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, Commerce is postponing the final 
determination and extending the provisional measures from a four-month 
period to a period not greater than six months. Accordingly, Commerce 
will make its final determination no later than 135 days after the date 
of publication of this preliminary determination.
---------------------------------------------------------------------------

    \9\ See Petitioner's Letter, ``Antidumping Duty Investigation of 
Certain Uncoated Groundwood Paper from Canada: Petitioner's Request 
for Postponement of Final Determination,'' dated January 23, 2018.
    \10\ See White Birch Paper's Letter, ``Certain Uncoated 
Groundwood Paper from Canada, Case No. A-122-861: Request to 
postpone Final Determination,'' dated January 16, 2018; Catalyst's 
Letter, ``Certain Uncoated Groundwood Paper from Canada: Catalyst 
Request to Postpone Final Determination,'' dated January 19, 2018; 
and Resolute's Letter, ``Uncoated Groundwood Paper from Canada: 
Request for Extension of Final Determination in Antidumping Duty 
Investigation,'' dated January 23, 2018.
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

     Dated: March 12, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation includes certain 
paper that has not been coated on either side and with 50 percent or 
more of the cellulose fiber content consisting of groundwood pulp, 
including groundwood pulp made from recycled paper, weighing not 
more than 90 grams per square meter. Groundwood pulp includes all 
forms of pulp produced from a mechanical pulping process, such as 
thermo-mechanical process (TMP), chemi-thermo mechanical process 
(CTMP), bleached chemi-thermo mechanical process (BCTMP) or any 
other mechanical pulping process. The scope includes paper shipped 
in any form, including but not limited to both rolls and sheets.

[[Page 11963]]

    Certain uncoated groundwood paper includes but is not limited to 
standard newsprint, high bright newsprint, book publishing, and 
printing and writing papers. The scope includes paper that is white, 
off-white, cream, or colored.
    Specifically excluded from the scope are imports of certain 
uncoated groundwood paper printed with final content of printed text 
or graphic. Also excluded are papers that otherwise meet this 
definition, but which have undergone a supercalendering process.\11\ 
Additionally, excluded are papers that otherwise meet this 
definition, but which have undergone a creping process over the 
entire surface area of the paper.
---------------------------------------------------------------------------

    \11\ Supercalendering imparts a glossy finish produced by the 
movement of the paper web through a supercalender which is a stack 
of alternating rollers of metal and cotton (or other softer 
material). The supercalender runs at high speed and applies 
pressure, heat, and friction which glazes the surface of the paper, 
imparting gloss to the surface and increasing the paper's smoothness 
and density.
---------------------------------------------------------------------------

    Also excluded are uncoated groundwood construction paper and 
uncoated groundwood manila drawing paper in sheet or roll format. 
Excluded uncoated groundwood construction paper and uncoated 
groundwood manila drawing paper: (a) Have a weight greater than 61 
grams per square meter; (b) have a thickness greater than 6.1 
caliper, i.e., greater than .0061'' or 155 microns; (c) are produced 
using at least 50 percent thermomechanical pulp; and (d) have a 
shade, as measured by CIELAB, as follows: L* less than or 75.0 or b* 
greater than or equal to 25.0.
    Also excluded is uncoated groundwood directory paper that: (a) 
Has a basis weight of 34 grams per square meter or less; and (b) has 
a thickness of 2.6 caliper mils or 66 microns or less.
    Certain uncoated groundwood paper is classifiable in the 
Harmonized Tariff Schedule of the United States (HTSUS) in several 
subheadings, including 4801.00.0120, 4801.00.0140, 4802.61.1000, 
4802.61.2000, 4802.61.3110, 4802.61.3191, 4802.61.6040, 
4802.62.1000, 4802.62.2000, 4802.62.3000, 4802.62.6140, 
4802.69.1000, 4802.69.2000, and 4802.69.3000. Subject merchandise 
may also be imported under several additional subheadings including 
4805.91.5000, 4805.91.7000, and 4805.91.9000.\12\ Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise is dispositive.
---------------------------------------------------------------------------

    \12\ The following HTSUS numbers are no longer active as of 
January 1, 2017: 4801.00.0020, 4801.00.0040, 4802.61.3010, 
4802.61.3091, and 4802.62.6040.
---------------------------------------------------------------------------

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

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
VI. Date of Sale
VII. Product Comparisons
VIII. Export Price and Constructed Export Price
IX. Normal Value
    A. Home Market Viability
    B. Level of Trade
    C. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    D. Calculation of NV Based on Comparison Market Prices
    E. Calculation of NV Based on Constructed Value
X. Currency Conversion
XI. Conclusion

[FR Doc. 2018-05486 Filed 3-16-18; 8:45 am]
 BILLING CODE 3510-DS-P