As a result of the Commission's affirmative determination and the Department of Commerce's recent affirmative finding, the existing order on imports of cased pencils from China will remain in place.

All six Commissioners found that revoking the existing order would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

Today's action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. See the attached page for background on this five-year (sunset) review.

The Commission's public report Cased Pencils from China (Inv. No. 731-TA-669 (Second Review), USITC Publication 3820, November 2005) will contain the views of the Commission and information developed during the review.

Copies may be requested after December 21, 2005, by calling 202-205-1809 or by contacting the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by fax at 202-205-2104.

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (ITC) within a reasonably foreseeable time.

The Commission's institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the ITC's notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews. Commissioners base their injury determination in expedited reviews on the facts available, including the Commission's prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.

The five-year (sunset) review concerning Cased Pencils from China was instituted on July 1, 2005.

On October 4, 2005, the Commission voted to conduct an expedited review. All six Commissioners concluded that the domestic group response for this review was adequate and the respondent group response was inadequate and voted for an expedited review.

Information concerning the reasons for the Commission's vote to conduct an expedited review was published in the Federal Register on October 18, 2005. That notice and a record of the Commission's vote is posted on the ITC's Internet site at http://info.usitc.gov/oinv/sunset.NSF (under "Cased Pencils - China (2nd Review)").

In addition, a record of the Commission's vote to conduct an expedited review is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by telephone by calling 202-205-1802.