[Federal Register: September 29, 2005 (Volume 70, Number 188)]
[Notices]               
[Page 56889-56890]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29se05-33]                         

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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-827

 
Notice of Decision of the Court of International Trade: Certain 
Cased Pencils from the People's Republic of China

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On August 23, 2005, the Court of International Trade (CIT) 
sustained the Department of Commerce's (the Department's) 
redetermination regarding the 1999-2000 antidumping duty administrative 
review of certain cased pencils (pencils) from the People's Republic of 
China (PRC). Pursuant to the Court's remand order, in its 
redetermination the Department assigned Guangdong Provincial Stationery 
& Sporting Goods Import &

[[Page 56890]]

Export Corp. (Guangdong) a cash deposit rate of 13.91 percent, rather 
than the PRC-wide rate assigned to the company in the contested 
administrative review. Consistent with the decision of the United 
States Court of Appeals for the Federal Circuit (Federal Circuit) in 
The Timken Company v. United States and China National Machinery and 
Equipment Import and Export Corporation, 893 F. 2d 337 (Fed. Cir. 1990) 
(Timken), the Department is publishing this notice of the CIT's 
decision which is not in harmony with the Department's determination in 
the 1999-2000 antidumping duty administrative review of pencils from 
the PRC.

EFFECTIVE DATE: September 29, 2005.

FOR FURTHER INFORMATION CONTACT: Magd Zalok or Howard Smith at (202) 
482-4162 or (202) 482-5193, respectively; AD/CVD Operations, Office 4, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On December 28, 1994, the Department published the antidumping duty 
order on pencils from the PRC. See Antidumping Duty Order: Certain 
Cased Pencils from the People's Republic of China, 59 FR 66,909 
(December 28, 1994). The Department excluded from this order 
Guangdong's U.S. sales of pencils produced by Three Star Stationery 
Industry Corp. (Three Star). However, in the final determination that 
gave rise to the antidumping duty order, the Department stated that if 
Guangdong sold subject merchandise to the United States that was 
produced by manufacturers other than Three Star, such sales would be 
subject to a cash deposit rate equal to the rate applied to the PRC 
entity. See Notice of Final Determination of Sales at Less Than Fair 
Value: Certain Cased Pencils from the People's Republic from China, 59 
FR 55625, 55627 (November 8, 1994), see also Certain Cased Pencils From 
the People's Republic of China; Notice of Amended Final Determination 
of Sales at Less Than Fair Value and Amended Antidumping Duty Order in 
Accordance With Final Court Decision, 64 FR 25275 (May 11, 1999).
    In the 1999-2000 antidumping duty administrative review of pencils 
from the PRC, the Department ``collapsed'' Three Star with another 
entity, China First Pencil Co. Ltd. (China First), based upon 
information that came to light late in the review. Further, the 
Department determined that the combined entity, China First/Three Star, 
was distinct from the Three Star whose factors of production formed the 
basis for excluding Guangdong from the order. Because there was no 
information on the record of the 1999-2000 review from which to 
calculate a dumping margin for Guangdong, consistent with the 
investigation in this proceeding, in the final results of review the 
Department assigned Guangdong's sales of China First/Three Star 
produced subject merchandise a cash deposit rate equal to the PRC-wide 
rate. See Certain Cased Pencils from the People's Republic of China: 
Final Results and Partial Rescission of Antidumping Duty Administrative 
Review, 67 FR 48,612 (July 25, 2002), as amended in Notice of Amended 
Final Results and Partial Rescission of Antidumping Duty Administrative 
Review: Certain Cased Pencils from the People's Republic of China, 67 
FR 59,049 (September 19, 2002).
    Respondents in the 1999-2000 administrative review filed a motion 
of judgement upon the agency record contesting the final results of 
that review. After considering the respondents' arguments, the CIT 
remanded the case to the Department instructing it to, among other 
things, reevaluate the PRC-wide rate applied to Guangdong because the 
Court found the Department had effectively applied adverse facts 
available to a participating and cooperative respondent. See Kaiyuan 
Group Corp., et al v. United States and the Pencil Section Writing 
Instrument Manufacturers Ass'n, et al., 343 F. Supp. 2d 1289 (May 14, 
2004) (Kaiyuan I). Consistent with the Court's direction, under 
protest, in its redetermination the Department assigned Guangdong a 
cash deposit rate based on the weighted-average of the margins 
calculated for other respondents in the 1999-2000 administrative 
review. On August 23, 2005, the CIT sustained the Department's remand 
redetermination. See Kaiyuan Group Corp., et al v. United States and 
the Pencil Section Writing Instrument Manufacturers Association, et al. 
Slip Op. 05-103 (Kaiyuan II).

Notification

    In its decision in Timken, the Federal Circuit held that, pursuant 
to 19 U.S.C. 1516a(e), the Department must publish notice of a CIT 
decision which is ``not in harmony'' with the Department's 
determination. The CIT's decisions in Kaiyuan I & II regarding the rate 
assigned to Guangdong are not in harmony with the Department's 
determination in the final results of the 1999-2000 antidumping duty 
administrative review of pencils from the PRC. Therefore, publication 
of this notice fulfills the Department's obligation under 19 U.S.C. 
1516a(e).
    The Department will continue to suspend liquidation pending the 
expiration of the period to appeal the CIT's August 23, 2005, decision, 
or, if that decision is appealed, pending a ``conclusive'' decision by 
the Federal Circuit. Upon expiration of the period to appeal, or if the 
CIT's decision is appealed and the Federal Circuit's decision is not in 
harmony with the Department's determination in the 1999-2000 
antidumping duty administrative review of pencils from the PRC, the 
Department will publish in the Federal Register a notice of amended 
final results for the 1999-2000 administrative review of pencils.

    Dated: September 22, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 05-19506 Filed 9-28-05; 8:45 am]

BILLING CODE 3510-DS-S