[Federal Register: July 6, 2006 (Volume 71, Number 129)]
[Notices]
[Page 38366-38368]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06jy06-40]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-827]
Certain Cased Pencils from the People's Republic of China; Final
Results and Partial Rescission of Antidumping Duty Administrative
Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On December 28, 2005, the Department of Commerce (the
Department) published in the Federal Register the preliminary results
and intent to rescind in part the 2003-2004 administrative review of
the antidumping duty order on certain cased pencils (pencils) from the
People's Republic of China (PRC). See Certain Cased Pencils from the
People's Republic of China; Preliminary Results of Antidumping Duty
Administrative Review and Intent to Rescind in Part, 70 FR 76755
(December 28, 2005) (``Preliminary Results''). The period of review
(POR) is December 1, 2003, through November 30, 2004. We have now
completed the 2003-2004 administrative review of the order. Based on
comments received, we have made changes in the dumping margin
calculations. Therefore, the final results differ from the preliminary
results. For details regarding these changes, see the section of this
notice entitled ``Changes Since the Preliminary Results.'' The final
results are listed below in the ``Final Results of Review'' section.
EFFECTIVE DATE: July 6, 2006.
FOR FURTHER INFORMATION CONTACT: Paul Stolz or Charles Riggle, AD/CVD
Operations, Office 8, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC, 20230; telephone: (202) 482-
4474 and (202) 482-0650, respectively.
Background
On December 28, 2005, the Department published the preliminary
results of this review. See Preliminary Results. The POR is December 1,
2003, through November 30, 2004. On January 20, 2006, we extended the
deadline for submission of case briefs and rebuttal briefs to February
24, 2006, and March 1, 2006, respectively. We also extended the
deadline for submission of surrogate value information until February
14, 2006. On February 14, 2006, Sanford LP, Rose Moon, Inc., General
Pencil Company, Inc., and Musgrave Pencil Company (the domestic
interested parties) submitted surrogate value information.\1\ On
February 24, 2006, we received case briefs from respondents China First
Pencil Co., Ltd. (CFP)/Three Star Stationery Industry Corp. (Three
Star)(CFP/Three Star),\2\ Orient International Holding Shanghai Foreign
Trade Co., Ltd. (SFTC), and Shandong Rongxin Import & Export Co. Ltd.
(Rongxin), and from the domestic interested parties. We received
rebuttal briefs from CFP/Three Star, SFTC, Rongxin, and the domestic
interested parties on March 1, 2006.
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\1\ Domestic interested parties submitted a revised translation
of certain documents included in this submission on February 16,
2006.
\2\ The Department initiated separate reviews of China First
Pencil Company, Ltd. (CFP) and Shanghai Three Star Stationery
Industry Corp. (Three Star) based on timely requests from interested
parties. In the final results of the 2001-2002 administrative review
the Department collapsed CFP and Three Star for purposes of its
antidumping analysis. See Certain Cased Pencils from the People's
Republic of China; Final Results and Partial Rescission of
Antidumping Duty Administrative Review, 69 FR 29266 (May 21, 2004),
and the accompanying Issues and Decision Memorandum at Comment 6.
The Department continued to collapse CFP and Three Star in the final
results of the 2002-2003 administrative review. See Certain Cased
Pencils from the People's Republic of China; Final Results and
Partial Rescission of Antidumping Duty Administrative Review, 70 FR
42301 (July 22, 2005) (Pencils 02/03), and the accompanying Issues
and Decision Memorandum at Comment 1. For this review, the
Department continues to consider CFP and Three Star (hereinafter
referred to as CFP/Three Star) to be a single entity.
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On April 27, 2006, in accordance with section 751(a)(3)(A) of the
Tariff Act of 1930, as amended (the Act), the Department extended the
time limit for the final results of this review until June 26, 2006.
See Certain Cased Pencils from the People's Republic of China:
Extension of Time Limit for Final Results of Antidumping Duty
Administrative Review, 71 FR 24839 (April 27, 2006).
Due to the unexpected emergency closure of the main Commerce
building on Monday, June 26, 2006, the Department is issuing these
final results on June 27, 2006, the next business day. See Notice of
Clarification: Application of ``Next Business Day'' Rule for
Administrative Determination Deadlines Pursuant to the Tariff Act of
1930, As Amended, 70 FR 24533 (May 10, 2005).
Scope of the Order
Imports covered by this order are shipments of certain cased
pencils of any shape or dimension (except as noted 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
[[Page 38367]]
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, our written description of the scope of the order is
dispositive.
Partial Rescission
The Department is rescinding this review with respect to Tianjin
Custom Wood Processing Co., Ltd. (TCW) because TCW reported it did not
export subject merchandise to the United States during the POR. See the
Preliminary Results, 70 FR at 76756; see also TCW's February 22, 2005,
response to the Department's questionnaire. We reviewed U.S. Customs
and Border Protection (CBP) data and found no evidence that TCW made
shipments of subject merchandise to the United States during the POR.
Moreover, there is no evidence on the record of this segment of the
proceeding indicating that TCW exported subject merchandise during the
POR. Therefore, we are rescinding this review with respect to TCW.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this administrative review are addressed in the ``Issues and Decision
Memorandum'' (Decision Memorandum) from Stephen J. Claeys, Deputy
Assistant Secretary for Import Administration, to David M. Spooner,
Assistant Secretary for Import Administration, dated June 26, 2006,
which is hereby adopted by this notice. A list of the issues which
parties have raised and to which we have responded, all of which are in
the Decision Memorandum, is attached to this notice as an Appendix.
Parties can find a complete discussion of all issues raised in this
review and the corresponding recommendations in this public memorandum,
which is on file in the Central Records Unit, room B-099 of the main
Department of Commerce building. In addition, a complete version of the
Decision Memorandum can be accessed directly on Import Administration's
Web site at http://.ia.ita.doc.gov/frn. The paper copy and the
electronic version of the Decision Memorandum are identical in content.
Changes Since the Preliminary Results
Based on our analysis of the comments received, we have made
changes in the margin calculations for CFP/Three Star, SFTC and
Rongxin. The specific calculation changes can be found in the company-
specific calculation memoranda dated June 26, 2006. These changes are
listed below.
As discussed fully in the Decision Memorandum, the Department
corrected the calculation of the surrogate value for pencil slats to
account for wood lost when pencil slats are produced from lumber for
use in pencil production for CFP/Three Star, SFTC, and Rongxin. In
addition, we corrected the calculation of Rongxin's slat surrogate
value with respect to the percentage of wood lost when pencils are made
from slats. Furthermore, using updated contemporaneous data obtained
after publication of the Preliminary Results, we re-calculated the slat
surrogate value used for producers that produced slats from timber.\3\
Finally, we corrected a ministerial error made in CFP/Three Star's
preliminary margin calculation program with respect to the calculation
of the value of coal included in the normal value.
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\3\ We stated in the Preliminary Results that we would attempt
to obtain timber prices contemporaneous with the POR for use in the
final results. See the Preliminary Results, 70 FR at 76759.
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Final Results of Review
We determine that the following weighted-average, ad valorem,
percentage margins exist for the period December 1, 2003, through
November 30, 2004:
------------------------------------------------------------------------
Exporter/Manufacturer Margin (percent)
------------------------------------------------------------------------
CFP/Three Star/First/Great Wall/Fang Zheng.......... 26.62
SFTC................................................ 25.70
Rongxin............................................. 12.37
PRC Wide-Rate....................................... 114.90
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Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of this notice of final results of administrative review
for all shipments of pencils from the PRC entered, or withdrawn from
warehouse, for consumption on or after the date of publication, as
provided by section 751(a)(1) of the Act: (1) the cash deposit rates
for the reviewed companies will be the rates shown above; (2) for
previously reviewed or investigated companies not listed above, that
have separate rates, the cash deposit rate will continue to be the
company-specific rate published for the most recent period; (3) the
cash deposit rate for all other PRC exporters will be 114.90 percent;
and 4) the cash deposit rate for non-PRC exporters will be the rate
applicable to the PRC exporter that supplied that exporter.
These deposit requirements shall remain in effect until publication
of the final results of the next administrative review.
Assessment
The Department will determine, and CBP will assess, antidumping
duties on all appropriate entries of subject merchandise in accordance
with these final results of review. We have calculated customer-
specific antidumping duty assessment amounts for subject merchandise
based on the ratio of the total amount of antidumping duties calculated
for the examined sales to the total quantity of sales examined. We
calculated these assessment amounts because there is no information on
the record which identifies entered values or the importers of record.
The Department will issue appropriate assessment instructions directly
to CBP within 15 days of publication of these final results of review.
Reimbursement of Duties
This notice also serves as a final reminder to importers of their
responsibility under 19 CFR 351.402(f) to file a certificate regarding
the reimbursement of antidumping duties prior to liquidation of the
relevant entries during this review period. Failure to comply with this
requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the
[[Page 38368]]
subsequent assessment of doubled antidumping duties.
Administrative Protective Orders
This notice also serves as the only reminder to parties subject to
administrative protective orders (APOs) of their responsibility
concerning the return or destruction of proprietary information
disclosed under an APO in accordance with 19 CFR 351.305. 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.
We are issuing and publishing this determination and notice in
accordance with sections 751(a)(1) and 771(i) of the Act.
Dated: June 27, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
Appendix Issues in Decision Memorandum
Comments
Comment 1: Whether the Department properly valued pencil cores.
Comment 2: Whether the Department should use one or more respondents'
market-economy purchase prices of cores, erasers and lacquer to value
these factors for respondents that did not purchase these items from a
market-economy supplier.
Comment 3: Whether the Department excluded small quantity/high value
import transactions from its calculation of surrogate values.
Comment 4: Whether the Department used the wrong HTS category to
calculate a surrogate value for Rongxin's kaolin clay.
Comment 5: Whether the Department should continue to apply partial
adverse facts available to SFTC.
Comment 6: Whether the surrogate value for labor is correct.
Comment 7: Whether to continue to treat CFP and Three Star as a single
entity.
Comment 8: Whether the Department properly accounted for wood loss in
its calculation of a surrogate value for slats.
Comment 9: Whether the Department used the correct lumber dimensions to
calculate a surrogate value for slats.
Comment 10: Whether to continue to apply total adverse facts available
to Guangdong Stationery & Sporting Goods Import & Export Corp.
[FR Doc. E6-10568 Filed 7-5-06; 8:45 am]
BILLING CODE 3510-DS-S