Notice of Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination: Certain Lined Paper Products from India, 45034-45037 [E6-12809]

Download as PDF 45034 Federal Register / Vol. 71, No. 152 / Tuesday, August 8, 2006 / Notices know their merchandise was destined for the United States. In such instances, the Department will instruct CBP to liquidate unreviewed entries at the all– others rate if there is no rate for the intermediate company(ies) involved in the transaction. For a full discussion of this clarification, see Antidumping and Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). jlentini on PROD1PC65 with NOTICES The following deposit rates will be effective upon publication of the final results of this administrative review for all shipments of rebar from Latvia entered, or withdrawn from warehouse, for consumption on or after the publication date, as provided by section 751(a)(1) of the Act: (1) The cash deposit rate listed above for LM will be the rate established in the final results of this review, except if a rate is less than 0.5 percent, and therefore de minimis, the cash deposit will be zero; (2) for previously reviewed or investigated companies not listed above, the cash deposit rate will continue to be the company–specific rate published for the most recent period; (3) if the exporter is not a firm covered in this review, a prior review, or the less–than-fair–value (LTFV) investigation, but the manufacturer is, the cash deposit rate will be the rate established for the most recent period for the manufacturer of the merchandise; and (4) if neither the exporter nor the manufacturer is a firm covered in this or any previous review conducted by the Department, the cash deposit rate will be 17.21 percent, the ‘‘All Others’’ rate established in the LTFV investigation. These cash deposit requirements, when imposed, shall remain in effect until publication of the final results of the next administrative review. This notice serves as a preliminary 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 entities 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 subsequent assessment of double antidumping duties. This determination is issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act. 20:06 Aug 07, 2006 BILLING CODE 3510–DS–S DEPARTMENT OF COMMERCE International Trade Administration (C–533–844) Cash Deposit Requirements VerDate Aug<31>2005 Dated: August 1, 2006. David M. Spooner, Assistant Secretary for Import Administration. [FR Doc. E6–12865 Filed 8–7–06; 8:45 am] Jkt 208001 Notice of Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination: Certain Lined Paper Products from India Import Administration, International Trade Administration, Department of Commerce. SUMMARY: We determine that countervailable subsidies are being provided to producers and exporters of certain lined paper products from India. For information on the estimated subsidy rates, see the ‘‘Suspension of Liquidation’’ section of this notice. Moreover, we determine that critical circumstances do not exist with regard to exports of CLPP from India. See the ‘‘Critical Circumstances’’ section below. EFFECTIVE DATE: August 8, 2006. FOR FURTHER INFORMATION CONTACT: Robert Copyak, AC/CVD Operations, Office 3, Import Administration, International Trade Administration, U.S. Department of Commerce, Room 4012, 14th Street and Constitution Avenue, N.W., Washington, D.C. 20230; Telephone: 202–482–2209. SUPPLEMENTARY INFORMATION: AGENCY: Background This investigation covers 12 programs and the following manufacturer/ exporters: Aero Exports (Aero), Kejriwal Exports, a division of Kejriwal Paper Limited (Kejriwal), and Navneet Publications India Ltd. (Navneet). On February 15, 2006, the Department of Commerce (the Department) published in the Federal Register its preliminary affirmative determination in the countervailing duty investigation of certain lined paper products from India. See Notice of Preliminary Affirmative Countervailing Duty Determination and Preliminary Negative Critical Circumstances Determination: Certain Lined Paper Products from India, 71 FR 7196 (February 15, 2006) (Preliminary Determination). We invited interested parties to comment on the Preliminary Determination. On June 14, 2006, we received comments from petitioners and PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 respondents.1 On June 19, 2006, we received rebuttal comments from petitioners and respondents. Period of Investigation The period of investigation (POI) is April 1, 2004, through March 31, 2005. Critical Circumstances As explained in the Preliminary Determination, petitioners requested that, pursuant to 19 CFR 351.206, the Department make an expedited finding that critical circumstances exist with respect to imports of lined paper products from India. In the Preliminary Determination, we determined that critical circumstances did not exist. See Preliminary Determination, 71 FR at 7917. For purposes of this final determination, we continue to find that critical circumstances do not exist as petitioners’ allegation does not provide a sufficient factual basis for making an affirmative finding. See Memorandum to Stephen J. Claeys, Deputy Assistant Secretary for Import Administration, from: Melissa G. Skinner, Director, Operations, Office 3: Final Negative Critical Circumstances Determination, (July 31, 2006) (publicly on file in the Central Records Unit (CRU), Room B– 099 of the main building of the Commerce Department). Scope of the Investigation For scope information, see Appendix I. Analysis of Comments Received All issues raised in the case and rebuttal briefs by parties to this investigation are addressed in the ‘‘Issues and Decision Memorandum’’ (Decision Memorandum) dated July 31, 2006, which is hereby adopted by this notice. A list of issues that parties have raised and to which we have responded, all of which are in the Decision Memorandum, is attached to this notice as Appendix II. Parties can find a complete discussion of all issues raised in this investigation and the corresponding recommendations in this public memorandum, which is on file in the CRU. In addition, a complete version of the Decision Memorandum can be accessed directly on the World Wide Web at https://ia.ita.doc.gov/frn. The paper copy and electronic version of the Decision Memorandum are identical in content. Suspension of Liquidation In accordance with section 705(c)(1)(B)(i)(I) of the Tariff Act fo 1930 1 Petitioners are the Association of American School Paper Suppliers. E:\FR\FM\08AUN1.SGM 08AUN1 45035 Federal Register / Vol. 71, No. 152 / Tuesday, August 8, 2006 / Notices (as amended) (the Act), we have calculated individual rates for the companies under investigation. For the period April 1, 2004, through March 31, 2005, we determine the net subsidy rates for the investigated companies are as follows: Producer/Exporter Net Subsidy Rate jlentini on PROD1PC65 with NOTICES Aero Exports (Aero) ....................................................................................................................................... Kejriwal Exports, a division of Kejriwal Paper Limited (Kejriwal) .................................................................. Navneet Publications India Ltd. (Navneet) .................................................................................................... All Others Rate .............................................................................................................................................. To calculate the ‘‘All Others’’ rate, we weight averaged the individual rates of Aero, Kejriwal, and Navneet by each company’s respective sales of subject merchandise made to the United States during the POI, pursuant to section 705(c)(5)(A) of the Act. In accordance with our preliminary affirmative determination, we instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of certain lined paper products from India, which were entered or withdrawn from warehouse, for consumption on or after February 15, 2006, the date of the publication of our Preliminary Determination in the Federal Register. In accordance with section 703(d) of the Act, we instructed the CBP to discontinue the suspension of liquidation for merchandise entered on or after June 15, 2006, but to continue the suspension of liquidation of entries made between February 15, 2006, and June 14, 2006. With the exception of Kejriwal, we will reinstate suspension of liquidation under section 706(a) of the Act for all entries if the International Trade Commission (ITC) issues a final affirmative injury determination and will require a cash deposit of estimated countervailing duties for such entries of merchandise in the amounts indicated above. Because we have determined that Kejriwal’s net subsidy rate is de minimis, we will direct CBP to terminate the suspension of liquidation for Kejriwal’s shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after February 15, 2006, the publication date of the Preliminary Determination, and to release any bond or other security, and refund any cash deposit. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled. ITC Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. In addition, we are VerDate Aug<31>2005 20:06 Aug 07, 2006 Jkt 208001 making available to the ITC all non– privileged and non–proprietary information related to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided that the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Import Administration. If the ITC determines that material injury, or threat of material injury, does not exist, these proceedings will be terminated. If however, the ITC determines that such injury does exist, we will issue a countervailing duty order. Return or Destruction of Proprietary Information In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to APO of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Failure to comply is a violation of the APO. This determination is published pursuant to sections 705(d) and 777(i) of the Act. Dated: July 31, 2006. David M. Spooner, Assistant Secretary for Import Administration. Appendix I Scope of the Investigation The scope of this investigation includes certain lined paper products, typically school supplies (for purposes of this scope definition, the actual use of or labeling these products as school supplies or non–school supplies is not a defining characteristic) composed of or including paper that incorporates straight horizontal and/or vertical lines on ten or more paper sheets (there shall be no minimum page requirement for looseleaf filler paper) including but not limited to such products as single- and multi–subject notebooks, composition books, wireless notebooks, looseleaf or PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 7.05 percent ad valorem de minimis 10.24 percent ad valorem 9.42 percent ad valorem glued filler paper, graph paper, and laboratory notebooks, and with the smaller dimension of the paper measuring 6 inches to 15 inches (inclusive) and the larger dimension of the paper measuring 8–3/4 inches to 15 inches (inclusive). Page dimensions are measured size (not advertised, stated, or ‘‘tear–out’’ size), and are measured as they appear in the product (i.e., stitched and folded pages in a notebook are measured by the size of the page as it appears in the notebook page, not the size of the unfolded paper). However, for measurement purposes, pages with tapered or rounded edges shall be measured at their longest and widest points. Subject lined paper products may be loose, packaged or bound using any binding method (other than case bound through the inclusion of binders board, a spine strip, and cover wrap). Subject merchandise may or may not contain any combination of a front cover, a rear cover, and/or backing of any composition, regardless of the inclusion of images or graphics on the cover, backing, or paper. Subject merchandise is within the scope of this investigation whether or not the lined paper and/or cover are hole punched, drilled, perforated, and/or reinforced. Subject merchandise may contain accessory or informational items including but not limited to pockets, tabs, dividers, closure devices, index cards, stencils, protractors, writing implements, reference materials such as mathematical tables, or printed items such as sticker sheets or miniature calendars, if such items are physically incorporated , included with, or attached to the product, cover and/or backing thereto. Specifically excluded from the scope of this investigation are: • unlined copy machine paper; • writing pads with a backing (including but not limited to products commonly known as ‘‘tablets,’’ ‘‘note pads,’’ ‘‘legal pads,’’ and ‘‘quadrille pads’’), provided that they do not have a front cover (whether permanent or removable). This exclusion does not apply to such writing pads if they consist of hole– punched or drilled filler paper; E:\FR\FM\08AUN1.SGM 08AUN1 jlentini on PROD1PC65 with NOTICES 45036 Federal Register / Vol. 71, No. 152 / Tuesday, August 8, 2006 / Notices • three–ring or multiple–ring binders, or notebook organizers incorporating such a ring binder provided that they do not include subject paper; • index cards; • printed books and other books that are case bound through the inclusion of binders board, a spine strip, and cover wrap; • newspapers; • pictures and photographs; • desk and wall calendars and organizers (including but not limited to such products generally known as ‘‘office planners,’’ ‘‘time books,’’ and ‘‘appointment books’’); • telephone logs; • address books; • columnar pads & tablets, with or without covers, primarily suited for the recording of written numerical business data; • lined business or office forms, including but not limited to: pre– printed business forms, lined invoice pads and paper, mailing and address labels, manifests, and shipping log books; • lined continuous computer paper; • boxed or packaged writing stationary (including but not limited to products commonly known as ‘‘fine business paper,’’ ‘‘parchment paper, ‘‘ and ‘‘letterhead’’), whether or not containing a lined header or decorative lines; • Stenographic pads (‘‘steno pads’’), Gregg ruled (‘‘Gregg ruling’’ consists of a single- or double–margin vertical ruling line down the center of the page. For a six–inch by nine–inch stenographic pad, the ruling would be located approximately three inches from the left of the book.), measuring 6 inches by 9 inches; Also excluded from the scope of this investigation are the following trademarked products: • FlyTM lined paper products: A notebook, notebook organizer, loose or glued note paper, with papers that are printed with infrared reflective inks and readable only by a FlyTM pen–top computer. The product must bear the valid trademark FlyTM (products found to be bearing an invalidly licensed or used trademark are not excluded from the scope). • ZwipesTM: A notebook or notebook organizer made with a blended polyolefin writing surface as the cover and pocket surfaces of the notebook, suitable for writing using a specially– developed permanent marker and erase system (known as a ZwipesTM pen). This system allows the marker portion to mark the writing surface with a permanent ink. The eraser portion of the marker dispenses a solvent capable of solubilizing the permanent ink allowing VerDate Aug<31>2005 20:06 Aug 07, 2006 Jkt 208001 the ink to be removed. The product must bear the valid trademark ZwipesTM (products found to be bearing an invalidly licensed or used trademark are not excluded from the scope). • FiveStarAdvanceTM: A notebook or notebook organizer bound by a continuous spiral, or helical, wire and with plastic front and rear covers made of a blended polyolefin plastic material joined by 300 denier polyester, coated on the backside with PVC (poly vinyl chloride) coating, and extending the entire length of the spiral or helical wire. The polyolefin plastic covers are of specific thickness; front cover is 0.019 inches (within normal manufacturing tolerances) and rear cover is 0.028 inches (within normal manufacturing tolerances). Integral with the stitching that attaches the polyester spine covering, is captured both ends of a 1’’ wide elastic fabric band. This band is located 2–3/8’’ from the top of the front plastic cover and provides pen or pencil storage. Both ends of the spiral wire are cut and then bent backwards to overlap with the previous coil but specifically outside the coil diameter but inside the polyester covering. During construction, the polyester covering is sewn to the front and rear covers face to face (outside to outside) so that when the book is closed, the stitching is concealed from the outside. Both free ends (the ends not sewn to the cover and back) are stitched with a turned edge construction. The flexible polyester material forms a covering over the spiral wire to protect it and provide a comfortable grip on the product. The product must bear the valid trademarks FiveStarAdvanceTM (products found to be bearing an invalidly licensed or used trademark are not excluded from the scope). • FiveStar FlexTM: A notebook, a notebook organizer, or binder with plastic polyolefin front and rear covers joined by 300 denier polyester spine cover extending the entire length of the spine and bound by a 3–ring plastic fixture. The polyolefin plastic covers are of a specific thickness; front cover is 0.019 inches (within normal manufacturing tolerances) and rear cover is 0.028 inches (within normal manufacturing tolerances). During construction, the polyester covering is sewn to the front cover face to face (outside to outside) so that when the book is closed, the stitching is concealed from the outside. During construction, the polyester cover is sewn to the back cover with the outside of the polyester spine cover to the inside back cover. Both free ends (the ends not sewn to the cover and back) are stitched with a turned edge construction. Each PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 ring within the fixture is comprised of a flexible strap portion that snaps into a stationary post which forms a closed binding ring. The ring fixture is riveted with six metal rivets and sewn to the back plastic cover and is specifically positioned on the outside back cover. The product must bear the valid trademark FiveStar FlexTM (products found to be bearing an invalidly licensed or used trademark are not excluded from the scope). Merchandise subject to this investigation is typically imported under headings 4820.10.2050, 4810.22.5044, 4811.90.9090, 4820.10.2010, 4820.10.2020 of the Harmonized Tariff Schedule of the United States (‘‘HTSUS’’). During the investigation additional HTS codes may be identified. The tariff classifications are provided for convenience and customs purposes; however, the written description of the scope of the investigation is dispositive. Appendix II – Issues and Decision Memorandum I. Summary A. General Comments Comment 1. Treatment of Contingent Liability Benefits Under the Export Promotion Capital Goods Scheme (EPCGS) Comment 2. Valuation of DEPS Benefits B. Navneet Comment 3: Benchmark Used Under the EPCGS Program Comment 4: Benchmark Used for Navneet Under the Pre–Shipment Export Financing Program Comment 5: Navneet’s Use of the 80 HHC Income Tax Exemption Comment 6: Denominator Used to Calculate Navneet’s Net Subsidy Rate Under the Pre–Shipment Export Financing Program Comment 7: Denominator Used to Calculate Navneet’s Net Subsidy Rate Under the Duty–Free Replenishment Certificate (DFRC) Scheme C. Kejriwal Comment 8: Benchmark Used to Calculate Countervailable Benefits Received by Kejriwal under the Post–Shipment Export Financing Program Comment 9: Fulfillment of Export Obligation Under the EPCGS D. Aero Comment 10: Countervailability of the Advance License Program (ALP) Comment 11: Program–Wide Changes With Respect to the ALP E:\FR\FM\08AUN1.SGM 08AUN1 Federal Register / Vol. 71, No. 152 / Tuesday, August 8, 2006 / Notices Comment 12: Attribution of Subsidies Aero Received under the Post– Shipment Export Financing Program II. Subsidies Valuation Information A. Benchmark for Short–Term Loans B. Benchmark for Long–Term Loans Issued III. Critical Circumstances IV. Analysis Of Programs A. Programs Determined to Confer Subsidies 1. Pre- and Post–Shipment Export Financing 2. Export Promotion Capital Goods Scheme (EPCGS) 3. Duty Entitlement Passbook Scheme (DEPS) 4. Duty Free Replenishment Certificate (DFRC) Scheme 5. Advance License Program (ALP) 6. Income Tax Exemption Scheme under 80HHC (80HHC) B. Programs Determined Not to be Used 1. Export Processing Zones (EPZ) and Export Oriented Units (EOU) 2. Income Tax Exemption Scheme (Sections 10A and 10B) 3. Market Development Assistance (MDA) 4. Status Certificate Program 5. Market Access Initiative 6. State of Gujarat Sales Tax Incentives 7. State of Maharashtra Sales Tax Incentives V. Total Ad Valorem Rates VI. Analysis Of Comments [FR Doc. E6–12809 Filed 8–7–06; 8:45 am] BILLING CODE 3510–DS–S DEPARTMENT OF COMMERCE International Trade Administration (C–533–825) Notice of Preliminary Results and Rescission, in Part, of Countervailing Duty Administrative Review: Polyethylene Terephthalate Film, Sheet, and Strip from India Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) is conducting an administrative review of the countervailing duty order on polyethylene terephthalate (PET) film from India for the period January 1, jlentini on PROD1PC65 with NOTICES AGENCY: VerDate Aug<31>2005 20:06 Aug 07, 2006 Jkt 208001 2004 through December 31, 2004. We preliminarily determine that subsidies are being provided on the production and export of PET film from India. See the ‘‘Preliminary Results of Administrative Review’’ section, below. If the final results remain the same as the preliminary results of this review, we will instruct U.S. Customs and Border Protection (CBP) to assess countervailing duties. Interested parties are invited to comment on the preliminary results of this administrative review. See the ‘‘Public Comment’’ section of this notice. In addition, we are rescinding this review with respect to Garware Polyester Limited (Garware). See the ‘‘Partial Rescission of Review’’ section, below. EFFECTIVE DATE: August 8, 2006 FOR FURTHER INFORMATION CONTACT: Elfi Blum, Nicholas Czajkowski, or Toni Page, AD/CVD Operations, Office 6, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482–0197, (202) 482–1395, or (202) 482–1398, respectively. SUPPLEMENTARY INFORMATION: Background On July 1, 2002, the Department published in the Federal Register the countervailing duty (CVD) order on PET film from India. See Countervailing Duty Order: Polyethylene Terephthalate Film, Sheet and Strip (PET Film) from India, 67 FR 44179 (July 1, 2002) (PET Film Order). On July 1, 2005, the Department published in the Federal Register a notice of opportunity to request an administrative review of this order. See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity to Request Administrative Review, 70 FR 38099 (July 1, 2005). On July 27, 2005, MTZ Polyfilms, Ltd. (MTZ), and on July 29, 2005, Jindal Poly Films Limited of India (Jindal), formerly named Jindal Polyester Limited, Indian producers and exporters of subject merchandise, requested that the Department conduct an administrative review of the CVD order on PET film from India with respect to their exports to the United States. On July 29, 2005, Dupont Teijin Films, Mitsubishi Polyester Film of America, and Toray Plastics (America), (collectively, petitioners), requested that the Department conduct an administrative review of the CVD order on PET film from India with respect to Jindal and Polyplex Corporation Ltd. (Polyplex) (collectively, respondents). Also, on PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 45037 August 1, 2005, Garware requested that the Department conduct an administrative review of the CVD order on PET film from India with respect to its exports to the United States. On August 19, 2005, MTZ withdrew its request for review of the CVD order of PET film from India. See Memorandum to File through Howard Smith from Drew Jackson: ‘‘Withdrawal of Countervailing Duty Administrative Review Request’’ (August 23, 2005) (on file in the Central Records Unit (CRU), room B–099 of the main Commerce building). Since this company was the sole requestor for an administrative review, and since its withdrawal occurred prior to the date of initiation, we did not include this company in the initiation of the administrative review. On August 29, 2005, the Department initiated an administrative review of the CVD order on PET film from India covering Jindal, Garware, and Polyplex, for the period January 1, 2004 through December 31, 2004. See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for Revocation in Part, 70 FR 51009 (August 29, 2005). The Department issued questionnaires to the Government of India (GOI) and all three respondents. On September 14, 2005, pursuant to 19 CFR § 351.213(d)(1), Garware timely withdrew its request for an administrative review of the CVD order on PET film from India. Because no other party requested an administrative review of this respondent, the Department is rescinding its review with respect to Garware. See the ‘‘Partial Rescission of Review’’ section below. On September 29, 2005, the GOI submitted its questionnaire response. Jindal and Polyplex submitted their questionnaire responses on October 3, 2005 and October 4, 2005, respectively. The Department issued its first supplemental questionnaires to Jindal and Polyplex on November 4, 2005 and November 7, 2005, respectively. On November 28, 2005, both Jindal and Polyplex submitted their first supplemental responses. On February 21, 2006, the Department extended the preliminary results until July 31, 2006. See Extension of Time Limit for the Preliminary Results of Administrative Review: Polyethylene Terephthalate (PET) Film from India, 71 FR 8840 (February 21, 2006). On April 14, 2006, the Department issued a second supplemental questionnaire to Jindal and Polyplex, and its first supplemental questionnaire to the GOI. The GOI submitted its response to the supplemental questionnaire on April 28, 2006, and Jindal and Polyplex E:\FR\FM\08AUN1.SGM 08AUN1

Agencies

[Federal Register Volume 71, Number 152 (Tuesday, August 8, 2006)]
[Notices]
[Pages 45034-45037]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-12809]


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DEPARTMENT OF COMMERCE

International Trade Administration

(C-533-844)


Notice of Final Affirmative Countervailing Duty Determination and 
Final Negative Critical Circumstances Determination: Certain Lined 
Paper Products from India

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: We determine that countervailable subsidies are being provided 
to producers and exporters of certain lined paper products from India. 
For information on the estimated subsidy rates, see the ``Suspension of 
Liquidation'' section of this notice. Moreover, we determine that 
critical circumstances do not exist with regard to exports of CLPP from 
India. See the ``Critical Circumstances'' section below.

EFFECTIVE DATE: August 8, 2006.

FOR FURTHER INFORMATION CONTACT: Robert Copyak, AC/CVD Operations, 
Office 3, Import Administration, International Trade Administration, 
U.S. Department of Commerce, Room 4012, 14\th\ Street and Constitution 
Avenue, N.W., Washington, D.C. 20230; Telephone: 202-482-2209.

SUPPLEMENTARY INFORMATION:

Background

    This investigation covers 12 programs and the following 
manufacturer/exporters: Aero Exports (Aero), Kejriwal Exports, a 
division of Kejriwal Paper Limited (Kejriwal), and Navneet Publications 
India Ltd. (Navneet).
    On February 15, 2006, the Department of Commerce (the Department) 
published in the Federal Register its preliminary affirmative 
determination in the countervailing duty investigation of certain lined 
paper products from India. See Notice of Preliminary Affirmative 
Countervailing Duty Determination and Preliminary Negative Critical 
Circumstances Determination: Certain Lined Paper Products from India, 
71 FR 7196 (February 15, 2006) (Preliminary Determination).
    We invited interested parties to comment on the Preliminary 
Determination. On June 14, 2006, we received comments from petitioners 
and respondents.\1\ On June 19, 2006, we received rebuttal comments 
from petitioners and respondents.
---------------------------------------------------------------------------

    \1\ Petitioners are the Association of American School Paper 
Suppliers.
---------------------------------------------------------------------------

Period of Investigation

    The period of investigation (POI) is April 1, 2004, through March 
31, 2005.

Critical Circumstances

    As explained in the Preliminary Determination, petitioners 
requested that, pursuant to 19 CFR 351.206, the Department make an 
expedited finding that critical circumstances exist with respect to 
imports of lined paper products from India. In the Preliminary 
Determination, we determined that critical circumstances did not exist. 
See Preliminary Determination, 71 FR at 7917. For purposes of this 
final determination, we continue to find that critical circumstances do 
not exist as petitioners' allegation does not provide a sufficient 
factual basis for making an affirmative finding. See Memorandum to 
Stephen J. Claeys, Deputy Assistant Secretary for Import 
Administration, from: Melissa G. Skinner, Director, Operations, Office 
3: Final Negative Critical Circumstances Determination, (July 31, 2006) 
(publicly on file in the Central Records Unit (CRU), Room B-099 of the 
main building of the Commerce Department).

Scope of the Investigation

    For scope information, see Appendix I.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) dated July 31, 2006, which is hereby 
adopted by this notice. A list of issues that parties have raised and 
to which we have responded, all of which are in the Decision 
Memorandum, is attached to this notice as Appendix II. Parties can find 
a complete discussion of all issues raised in this investigation and 
the corresponding recommendations in this public memorandum, which is 
on file in the CRU. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the World Wide Web at https://
ia.ita.doc.gov/frn. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Tariff Act fo 
1930

[[Page 45035]]

(as amended) (the Act), we have calculated individual rates for the 
companies under investigation. For the period April 1, 2004, through 
March 31, 2005, we determine the net subsidy rates for the investigated 
companies are as follows:

------------------------------------------------------------------------
         Producer/Exporter                     Net Subsidy Rate
------------------------------------------------------------------------
Aero Exports (Aero)................              7.05 percent ad valorem
Kejriwal Exports, a division of                               de minimis
 Kejriwal Paper Limited (Kejriwal).
Navneet Publications India Ltd.                 10.24 percent ad valorem
 (Navneet).........................
All Others Rate....................              9.42 percent ad valorem
------------------------------------------------------------------------

    To calculate the ``All Others'' rate, we weight averaged the 
individual rates of Aero, Kejriwal, and Navneet by each company's 
respective sales of subject merchandise made to the United States 
during the POI, pursuant to section 705(c)(5)(A) of the Act.
    In accordance with our preliminary affirmative determination, we 
instructed U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of certain lined paper products from India, 
which were entered or withdrawn from warehouse, for consumption on or 
after February 15, 2006, the date of the publication of our Preliminary 
Determination in the Federal Register. In accordance with section 
703(d) of the Act, we instructed the CBP to discontinue the suspension 
of liquidation for merchandise entered on or after June 15, 2006, but 
to continue the suspension of liquidation of entries made between 
February 15, 2006, and June 14, 2006.
    With the exception of Kejriwal, we will reinstate suspension of 
liquidation under section 706(a) of the Act for all entries if the 
International Trade Commission (ITC) issues a final affirmative injury 
determination and will require a cash deposit of estimated 
countervailing duties for such entries of merchandise in the amounts 
indicated above. Because we have determined that Kejriwal's net subsidy 
rate is de minimis, we will direct CBP to terminate the suspension of 
liquidation for Kejriwal's shipments of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after February 15, 
2006, the publication date of the Preliminary Determination, and to 
release any bond or other security, and refund any cash deposit.
    If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated and all 
estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided that the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Import Administration.
    If the ITC determines that material injury, or threat of material 
injury, does not exist, these proceedings will be terminated. If 
however, the ITC determines that such injury does exist, we will issue 
a countervailing duty order.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Failure to comply is a violation of the APO.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: July 31, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I

Scope of the Investigation

The scope of this investigation includes certain lined paper products, 
typically school supplies (for purposes of this scope definition, the 
actual use of or labeling these products as school supplies or non-
school supplies is not a defining characteristic) composed of or 
including paper that incorporates straight horizontal and/or vertical 
lines on ten or more paper sheets (there shall be no minimum page 
requirement for looseleaf filler paper) including but not limited to 
such products as single- and multi-subject notebooks, composition 
books, wireless notebooks, looseleaf or glued filler paper, graph 
paper, and laboratory notebooks, and with the smaller dimension of the 
paper measuring 6 inches to 15 inches (inclusive) and the larger 
dimension of the paper measuring 8-3/4 inches to 15 inches (inclusive). 
Page dimensions are measured size (not advertised, stated, or ``tear-
out'' size), and are measured as they appear in the product (i.e., 
stitched and folded pages in a notebook are measured by the size of the 
page as it appears in the notebook page, not the size of the unfolded 
paper). However, for measurement purposes, pages with tapered or 
rounded edges shall be measured at their longest and widest points. 
Subject lined paper products may be loose, packaged or bound using any 
binding method (other than case bound through the inclusion of binders 
board, a spine strip, and cover wrap). Subject merchandise may or may 
not contain any combination of a front cover, a rear cover, and/or 
backing of any composition, regardless of the inclusion of images or 
graphics on the cover, backing, or paper. Subject merchandise is within 
the scope of this investigation whether or not the lined paper and/or 
cover are hole punched, drilled, perforated, and/or reinforced. Subject 
merchandise may contain accessory or informational items including but 
not limited to pockets, tabs, dividers, closure devices, index cards, 
stencils, protractors, writing implements, reference materials such as 
mathematical tables, or printed items such as sticker sheets or 
miniature calendars, if such items are physically incorporated , 
included with, or attached to the product, cover and/or backing 
thereto.
Specifically excluded from the scope of this investigation are:
 unlined copy machine paper;
 writing pads with a backing (including but not limited to 
products commonly known as ``tablets,'' ``note pads,'' ``legal pads,'' 
and ``quadrille pads''), provided that they do not have a front cover 
(whether permanent or removable). This exclusion does not apply to such 
writing pads if they consist of hole-punched or drilled filler paper;

[[Page 45036]]

 three-ring or multiple-ring binders, or notebook organizers 
incorporating such a ring binder provided that they do not include 
subject paper;
 index cards;
 printed books and other books that are case bound through the 
inclusion of binders board, a spine strip, and cover wrap;
 newspapers;
 pictures and photographs;
 desk and wall calendars and organizers (including but not 
limited to such products generally known as ``office planners,'' ``time 
books,'' and ``appointment books'');
 telephone logs;
 address books;
 columnar pads & tablets, with or without covers, primarily 
suited for the recording of written numerical business data;
 lined business or office forms, including but not limited to: 
pre-printed business forms, lined invoice pads and paper, mailing and 
address labels, manifests, and shipping log books;
 lined continuous computer paper;
 boxed or packaged writing stationary (including but not 
limited to products commonly known as ``fine business paper,'' 
``parchment paper, `` and ``letterhead''), whether or not containing a 
lined header or decorative lines;
 Stenographic pads (``steno pads''), Gregg ruled (``Gregg 
ruling'' consists of a single- or double-margin vertical ruling line 
down the center of the page. For a six-inch by nine-inch stenographic 
pad, the ruling would be located approximately three inches from the 
left of the book.), measuring 6 inches by 9 inches;
Also excluded from the scope of this investigation are the following 
trademarked products:
 Fly\TM\ lined paper products: A notebook, notebook organizer, 
loose or glued note paper, with papers that are printed with infrared 
reflective inks and readable only by a Fly\TM\ pen-top computer. The 
product must bear the valid trademark Fly\TM\ (products found to be 
bearing an invalidly licensed or used trademark are not excluded from 
the scope).
 Zwipes\TM\: A notebook or notebook organizer made with a 
blended polyolefin writing surface as the cover and pocket surfaces of 
the notebook, suitable for writing using a specially-developed 
permanent marker and erase system (known as a Zwipes\TM\ pen). This 
system allows the marker portion to mark the writing surface with a 
permanent ink. The eraser portion of the marker dispenses a solvent 
capable of solubilizing the permanent ink allowing the ink to be 
removed. The product must bear the valid trademark Zwipes\TM\ (products 
found to be bearing an invalidly licensed or used trademark are not 
excluded from the scope).
 FiveStar[reg]Advance\TM\: A notebook or notebook organizer 
bound by a continuous spiral, or helical, wire and with plastic front 
and rear covers made of a blended polyolefin plastic material joined by 
300 denier polyester, coated on the backside with PVC (poly vinyl 
chloride) coating, and extending the entire length of the spiral or 
helical wire. The polyolefin plastic covers are of specific thickness; 
front cover is 0.019 inches (within normal manufacturing tolerances) 
and rear cover is 0.028 inches (within normal manufacturing 
tolerances). Integral with the stitching that attaches the polyester 
spine covering, is captured both ends of a 1'' wide elastic fabric 
band. This band is located 2-3/8'' from the top of the front plastic 
cover and provides pen or pencil storage. Both ends of the spiral wire 
are cut and then bent backwards to overlap with the previous coil but 
specifically outside the coil diameter but inside the polyester 
covering. During construction, the polyester covering is sewn to the 
front and rear covers face to face (outside to outside) so that when 
the book is closed, the stitching is concealed from the outside. Both 
free ends (the ends not sewn to the cover and back) are stitched with a 
turned edge construction. The flexible polyester material forms a 
covering over the spiral wire to protect it and provide a comfortable 
grip on the product. The product must bear the valid trademarks 
FiveStar[reg]Advance\TM\ (products found to be bearing an invalidly 
licensed or used trademark are not excluded from the scope).
 FiveStar Flex\TM\: A notebook, a notebook organizer, or binder 
with plastic polyolefin front and rear covers joined by 300 denier 
polyester spine cover extending the entire length of the spine and 
bound by a 3-ring plastic fixture. The polyolefin plastic covers are of 
a specific thickness; front cover is 0.019 inches (within normal 
manufacturing tolerances) and rear cover is 0.028 inches (within normal 
manufacturing tolerances). During construction, the polyester covering 
is sewn to the front cover face to face (outside to outside) so that 
when the book is closed, the stitching is concealed from the outside. 
During construction, the polyester cover is sewn to the back cover with 
the outside of the polyester spine cover to the inside back cover. Both 
free ends (the ends not sewn to the cover and back) are stitched with a 
turned edge construction. Each ring within the fixture is comprised of 
a flexible strap portion that snaps into a stationary post which forms 
a closed binding ring. The ring fixture is riveted with six metal 
rivets and sewn to the back plastic cover and is specifically 
positioned on the outside back cover. The product must bear the valid 
trademark FiveStar Flex\TM\ (products found to be bearing an invalidly 
licensed or used trademark are not excluded from the scope).
Merchandise subject to this investigation is typically imported under 
headings 4820.10.2050, 4810.22.5044, 4811.90.9090, 4820.10.2010, 
4820.10.2020 of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). During the investigation additional HTS codes may be 
identified. The tariff classifications are provided for convenience and 
customs purposes; however, the written description of the scope of the 
investigation is dispositive.

Appendix II - Issues and Decision Memorandum

I. Summary
A. General Comments
    Comment 1. Treatment of Contingent Liability Benefits Under the 
Export Promotion Capital Goods Scheme (EPCGS)
    Comment 2. Valuation of DEPS Benefits
B. Navneet
    Comment 3: Benchmark Used Under the EPCGS Program
    Comment 4: Benchmark Used for Navneet Under the Pre-Shipment Export 
Financing Program
    Comment 5: Navneet's Use of the 80 HHC Income Tax Exemption
    Comment 6: Denominator Used to Calculate Navneet's Net Subsidy Rate 
Under the Pre-Shipment Export Financing Program
    Comment 7: Denominator Used to Calculate Navneet's Net Subsidy Rate 
Under the Duty-Free Replenishment Certificate (DFRC) Scheme
C. Kejriwal
    Comment 8: Benchmark Used to Calculate Countervailable Benefits 
Received by Kejriwal under the Post-Shipment Export Financing Program
    Comment 9: Fulfillment of Export Obligation Under the EPCGS
D. Aero
    Comment 10: Countervailability of the Advance License Program (ALP)
    Comment 11: Program-Wide Changes With Respect to the ALP

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    Comment 12: Attribution of Subsidies Aero Received under the Post-
Shipment Export Financing Program
II. Subsidies Valuation Information
A. Benchmark for Short-Term Loans
B. Benchmark for Long-Term Loans Issued
III. Critical Circumstances
IV. Analysis Of Programs
A. Programs Determined to Confer Subsidies
    1. Pre- and Post-Shipment Export Financing
    2. Export Promotion Capital Goods Scheme (EPCGS)
    3. Duty Entitlement Passbook Scheme (DEPS)
    4. Duty Free Replenishment Certificate (DFRC) Scheme
    5. Advance License Program (ALP)
    6. Income Tax Exemption Scheme under 80HHC (80HHC)
B. Programs Determined Not to be Used
    1. Export Processing Zones (EPZ) and Export Oriented Units (EOU)
    2. Income Tax Exemption Scheme (Sections 10A and 10B)
    3. Market Development Assistance (MDA)
    4. Status Certificate Program
    5. Market Access Initiative
    6. State of Gujarat Sales Tax Incentives
    7. State of Maharashtra Sales Tax Incentives
V. Total Ad Valorem Rates
VI. Analysis Of Comments
[FR Doc. E6-12809 Filed 8-7-06; 8:45 am]
BILLING CODE 3510-DS-S
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