[Federal Register Volume 87, Number 137 (Tuesday, July 19, 2022)]
[Notices]
[Pages 42998-42999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15364]



[[Page 42998]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-827]


Certain Cased Pencils From the People's Republic of China: 
Preliminary Results of Antidumping Duty Administrative Review and 
Preliminary Determination of No Shipments; 2020-2021

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that the single entity Wah Yuen Stationery Co. Ltd./Shandong 
Wah Yuen Stationery Co. Ltd. (Wah Yuen) had no shipments of certain 
cased pencils (pencils) from the People's Republic of China (China) 
during the period of review (POR) December 1, 2020, through November 
30, 2021. Commerce also preliminarily determines that Tianjin Tonghe 
Stationery Co., Ltd. (Tianjin Tonghe) and Ningbo Homey Union Co., Ltd. 
(Ningbo Homey) are part of the China-wide entity. We invite interested 
parties to comment on these preliminary results.

DATES: Applicable July 19, 2022.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin, AD/CVD Operations, 
Office VIII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-6478.

SUPPLEMENTARY INFORMATION:

Background

    Commerce published the initiation of this administrative review on 
February 4, 2022, with respect to four companies: Tianjin Tonghe, 
Ningbo Homey, and Wah Yuen.\1\ The POR is December 1, 2020, through 
November 30, 2021.
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 6487 (February 4, 2022) (Initiation 
Notice). Commerce determined that Wah Yuen Stationery Co. Ltd. and 
Shandong Wah Yuen Stationery Co. Ltd. are affiliated, pursuant to 
section 771(33) of the Tariff Act of 1930, as amended (the Act), and 
should be treated as a single entity, pursuant to 19 CFR 351.401(f), 
in a prior administrative review. See Certain Cased Pencils from the 
People's Republic of China: Preliminary Results of Antidumping Duty 
New Shipper Review; 2014-2015, 81 FR 37573 (June 10, 2016), and 
accompanying Preliminary Decision Memorandum at 9-10, unchanged in 
Certain Cased Pencils from the People's Republic of China: Final 
Results of Antidumping Duty New Shipper Review; 2014-2015, 81 FR 
74764 (October 27, 2016); see also Certain Cased Pencils from the 
People's Republic of China: Amended Final Results of Antidumping 
Duty New Shipper Review; 2014-2015, 81 FR 92784 (December 20, 2016) 
(Amended New Shipper Review). Because there is no record evidence 
indicating that Commerce should revisit this determination, we are 
continuing to treat these two companies as a single entity for 
purposes of this administrative review.
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Scope of the Order 2
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    \2\ See Certain Cased Pencils from the People's Republic of 
China: Continuation of Antidumping Duty Order, 82 FR 41608 
(September 1, 2017); and Antidumping Duty Order: Certain Cased 
Pencils from the People's Republic of China, 59 FR 66909 (December 
28, 1994) (collectively, Order).
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    Imports covered by the Order are shipments of certain cased pencils 
of any shape or dimension (except as described below) which are writing 
and/or drawing instruments that feature cores of graphite or other 
materials, encased in wood and/or man-made materials, whether or not 
decorated and whether or not tipped (e.g., with erasers, etc.) in any 
fashion, and either sharpened or unsharpened. The pencils subject to 
the Order are currently classifiable under subheading 9609.10.00 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Specifically 
excluded from the scope of the Order are mechanical pencils, cosmetic 
pencils, pens, non-cased crayons (wax), pastels, charcoals, chalks, and 
pencils produced under U.S. patent number 6,217,242, from paper infused 
with scents by the means covered in the above-referenced patent, 
thereby having odors distinct from those that may emanate from pencils 
lacking the scent infusion. Also excluded from the scope of the Order 
are pencils with all of the following physical characteristics: (1) 
length: 13.5 or more inches; (2) sheath diameter: not less than one-
and-one quarter inches at any point (before sharpening); and (3) core 
length: not more than 15 percent of the length of the pencil.
    In addition, pencils with all of the following physical 
characteristics are excluded from the scope of the Order: novelty jumbo 
pencils that are octagonal in shape, approximately ten inches long, one 
inch in diameter before sharpening, and three-and-one eighth inches in 
circumference, composed of turned wood encasing one-and-one half inches 
of sharpened lead on one end and a rubber eraser on the other end.
    Although the HTSUS subheading is provided for convenience and 
customs purposes, the written description of the scope of the Order is 
dispositive.

Preliminary Determination of No Shipments

    In the Initiation Notice, we instructed producers or exporters 
under review that had no exports, sales, or entries during the POR to 
notify Commerce within 30 days of publication of the notice. Wah Yuen 
submitted a timely no-shipment certification stating that Wah Yuen did 
not export subject merchandise to the United States during the POR.\3\ 
Accordingly, we submitted a no-shipment inquiry to U.S. Customs and 
Border Protection (CBP) regarding Wah Yuen's no-shipment certification. 
In response, CBP reported that it has no evidence to contradict Wah 
Yuen's no-shipment claim.\4\ No party commented on CBP's report.
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    \3\ See Wah Yuen's Letter, ``Certain Cased Pencils from the 
People's Republic of China: Comments on CBP Data,'' dated February 
10, 2022.
    \4\ See CBP Instructions, ``No shipment inquiry for certain 
cased pencils from the People's Republic of China produced and/or 
exported by Wah Yuen Stationary Co., Ltd. and/or Shandong Wah Yuen 
Stationary Co., Ltd. (A-570-827)'' (message 2070421), dated March 
11, 2022; see also Memorandum, ``Certain Cased Pencils from The 
People's Republic of China; No Shipment Inquiry for Wah Yuen 
Stationery Co. Ltd. and/or Shandong Wah Yuen Stationery Co., Ltd. 
during the period 12/01/2020 through 11/30/2021,'' dated March 23, 
2021. No party commented on this Memorandum.
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    Based on record evidence, we preliminarily determine that Wah Yuen 
did not have shipments to the United States during the POR. Consistent 
with our practice in non-market economy (NME) cases, we are not 
rescinding the review of Wah Yuen but intend to complete the review and 
issue appropriate instructions to CBP based on the final results.\5\
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    \5\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694, 65694-95 (October 24, 2011).
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China-Wide Entity

    Commerce's policy regarding conditional review of the China-wide 
entity applies to this administrative review.\6\ Under this policy, the 
China-wide entity will not be under review unless a party specifically 
requests, or Commerce self-initiates, a review of the entity. Because 
no party requested a review of the China-wide entity, the entity is not 
under review, and the entity's rate of 114.90 percent is not subject to 
change.\7\
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    \6\ See Antidumping Proceedings: Announcement of Change in 
Department Practice for Respondent Selection in Antidumping Duty 
Proceedings and Conditional Review of the Nonmarket Economy Entity 
in NME Antidumping Duty Proceedings, 78 FR 65963 (November 4, 2013).
    \7\ See, e.g., Certain Cased Pencils from the People's Republic 
of China: Preliminary Results of Antidumping Duty Administrative 
Review and Partial Rescission; 2014-2015, 81 FR 83201, 83202 
(November 21, 2016), unchanged in Certain Cased Pencils from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review; 2014-2015, 82 FR 24675 (May 30, 2017), and 
accompanying Issues and Decision Memorandum.
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    Aside from Wah Yuen, which we preliminarily find made no shipments, 
Commerce considers all other

[[Page 42999]]

companies for which a review was requested and which did not 
demonstrate separate rate eligibility to be part of the China-wide 
entity.\8\ Accordingly, for the preliminary results, we consider 
Tianjin Tonghe and Ningbo Homey, neither of which submitted a separate 
rate application, to be part of the China-wide entity.
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    \8\ See Initiation Notice (``All firms listed below that wish to 
qualify for separate rate status in the administrative reviews 
involving NME countries must complete, as appropriate, either a 
separate rate application or certification, as described below.'')
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Disclosure and Public Comment

    Normally, Commerce discloses the calculations used in its analysis 
to parties in a review within five days of the date of publication of 
the notice of preliminary results, in accordance with 19 CFR 
351.224(b). However, in this case, there are no calculations to 
disclose.
    Interested parties may submit case briefs no later than 30 days 
after the date of publication of these preliminary results of 
review.\9\ Rebuttal briefs may be filed no later than seven days after 
the written comments are filed, and all rebuttal comments must be 
limited to comments raised in the case briefs.\10\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case or rebuttal briefs in 
this review 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. Note that Commerce has temporarily modified 
certain of its requirements for serving documents containing business 
proprietary information, until further notice.\11\
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    \9\ See 19 CFR 351.309(c).
    \10\ See 19 CFR 351.309(d); see also Temporary Rule Modifying 
AD/CVD Service Requirements Due to COVID-19, 85 FR 17006, 17007 
(March 26, 2020) (``To provide adequate time for release of case 
briefs via ACCESS, E&C intends to schedule the due date for all 
rebuttal briefs to be 7 days after case briefs are filed (while 
these modifications remain in effect).'').
    \11\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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    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 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, telephone number, the number of 
participants, and a list of the issues to be discussed. If a request 
for a hearing is made, we intend to hold the hearing at the date and 
time to be determined.\12\ Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.
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    \12\ Id.
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    Unless the deadline is otherwise extended, we intend to issue the 
final results of this review, which will include the results of our 
analysis of the issues raised in any briefs, within 120 days of 
publication of these preliminary results in the Federal Register, 
pursuant to section 751(a)(3)(A) of the Act, and 19 CFR 351.213(h).

Assessment Rates

    Upon issuance of the final results, Commerce will determine, and 
CBP shall assess, antidumping (AD) duties on all appropriate entries 
covered by this review, in accordance with 19 CFR 351.212(b). If 
Commerce continues to find that Tianjin Tonghe and Ningbo Homey are 
part of the China-wide entity in the final results, Commerce intends to 
instruct CBP to liquidate POR entries of subject merchandise from these 
companies at the China-wide rate. Moreover, if Commerce continues to 
make a no-shipment finding for Wah Yuen in the final results, any 
suspended entries of subject merchandise associated with Wah Yuen will 
also be liquidated at the China-wide rate. Commerce intends to issue 
assessment instructions to CBP no earlier than 35 days after the date 
of publication of the final results of this review. If a timely summons 
is filed at the U.S. Court of International Trade, the assessment 
instructions will direct CBP not to liquidate relevant entries until 
the time for parties to file a request for a statutory injunction has 
expired (i.e., within 90 days of publication).

Cash Deposit Requirements

    The following cash deposit requirements will be effective for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided for by section 
751(a)(2)(C) of the Act: (1) Wah Yuen's cash deposit rate will continue 
to be its existing exporter-specific rate; \13\ (2) for previously 
investigated or reviewed Chinese and non-Chinese exporters for which a 
review was not requested and that received a separate rate in a prior 
segment of this proceeding, the cash deposit rate will continue to be 
the existing exporter-specific rate; (3) for all Chinese exporters of 
subject merchandise that have not been found to be entitled to a 
separate rate, the cash deposit rate will be the rate for the China-
wide entity; and (4) for all non-Chinese exporters of subject 
merchandise that have not received their own rate, the cash deposit 
rate will be the rate applicable to the Chinese exporter that supplied 
that non-Chinese exporter. These cash deposit requirements, when 
imposed, shall remain in effect until further notice.
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    \13\ See Amended New Review.
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Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) to file a certificate 
regarding the reimbursement of AD duties prior to liquidation of the 
relevant entries during this review period. Failure to comply with this 
requirement could result in Commerce's presumption that reimbursement 
of AD duties occurred and the subsequent assessment of double AD 
duties.

Notification to Interested Parties

    We are issuing and publishing the preliminary results of this 
administrative review in accordance with sections 751(a)(l) and 
777(i)(l) of the Act, and 19 CFR 351.213 and 19 CFR 351.221(b)(4).

    Dated: July 12, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2022-15364 Filed 7-18-22; 8:45 am]
BILLING CODE 3510-DS-P