Coated Free Sheet Paper from the Republic of Korea: Notice of Final Affirmative Countervailing Duty Determination, 60639-60642 [E7-21036]

Download as PDF Federal Register / Vol. 72, No. 206 / Thursday, October 25, 2007 / Notices February 28, 2008, in accordance with section 751(a)(3)(A) of the Act. We are issuing and publishing this notice in accordance with sections 751(a)(3)(A) and 777(i)(1) of the Act. DEPARTMENT OF COMMERCE International Trade Administration A–533–810 Stainless Steel Bar from India: Extension of Time Limit for the Preliminary Results of the Antidumping Duty Administrative Review Dated: October 18, 2007. Stephen J. Claeys, Deputy Assistant Secretary for Import Administration. [FR Doc. E7–21038 Filed 10–24–07; 8:45 am] Import Administration, International Trade Administration, Department of Commerce. EFFECTIVE DATE: October 25, 2007. FOR FURTHER INFORMATION CONTACT: Scott Holland and/or Brandon Farlander, AD/CVD Operations, Office 1, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington DC 20230; telephone (202) 482–1279 or (202) 482–0182, respectively. SUPPLEMENTARY INFORMATION: BILLING CODE 3510–DS–S AGENCY: Background On March 28, 2007, the Department of Commerce (‘‘the Department’’) published a notice of initiation of an administrative review of the antidumping duty order on stainless steel bar from India covering the period February 1, 2006, through January 31, 2007 (72 FR 14516). The preliminary results for this administrative review are currently due no later than October 31, 2007. mstockstill on PROD1PC66 with NOTICES Extension of Time Limits for Preliminary Results Section 751(a)(3)(A) of the Tariff Act of 1930, as amended (‘‘the Act’’), requires the Department to issue the preliminary results of an administrative review within 245 days after the last day of the anniversary month of an antidumping duty order for which a review is requested and issue the final results within 120 days after the date on which the preliminary results are published. However, if it is not practicable to complete the review within the time period, section 751(a)(3)(A) of the Act allows the Department to extend these deadlines to a maximum of 365 days and 180 days, respectively. Due to the complexity of the issues in this case, including affiliation and cost of production, and outstanding supplemental responses, it is not practicable to complete the preliminary results of this review within the original time limit (i.e., October 31, 2007). Therefore, the Department is extending the time limit for completion of the preliminary results to no later than VerDate Aug<31>2005 17:26 Oct 24, 2007 Jkt 214001 DEPARTMENT OF COMMERCE International Trade Administration [A–583–816] Certain Stainless Steel Butt–Weld Pipe Fittings from Taiwan: Notice of Extension of Time Limit for the Final Results of Antidumping Duty Administrative Review Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) is extending the time limit for the final results of the administrative review of the antidumping duty order on certain stainless steel butt–weld pipe fittings from Taiwan. The period of review is June 1, 2005, through May 31, 2006. This extension is made pursuant to section 751(a)(3)(A) of the Tariff Act of 1930, as amended (the Act). EFFECTIVE DATE: October 25, 2007. FOR FURTHER INFORMATION CONTACT: Judy Lao or John Drury, Office 7, AD/CVD Operations, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230, telephone: (202) 482–7924 and (202) 482–0195, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On July 2, 2007, the Department published the preliminary results of the administrative review of the antidumping duty order on certain stainless steel butt–weld pipe fittings from Taiwan covering the period June 1, 2005, through May 31, 2006. See Certain Stainless Steel Butt–Weld Pipe Fittings from Taiwan: Preliminary Results of Antidumping Duty Administrative Review and Intent to Rescind in Part, 72 FR 35970 (July 2, 2007). The final results for the antidumping duty administrative review of certain stainless steel butt–weld pipe fittings from Taiwan are currently due no later than October 30, 2007. PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 60639 Extension of Time Limits for Final Results Section 751(a)(3)(A) of the Act requires the Department to issue the results in an administrative review within 120 days of the publication of the preliminary results. However, if it is not practicable to complete the review within this time period, section 751(a)(3)(A) of the Act allows the Department to extend the time limit for the final results to 180 days (or 300 days if the Department does not extend the time limit for the preliminary results) from the date of publication of the preliminary results. In accordance with section 751(a)(3)(A) of the Act, and 19 CFR 351.213(h)(2), the Department finds that it is not practicable to complete the review within the original time frame (i.e., by October 30, 2007). Specifically, the Department requires additional time to review complex issues raised in the case briefs. In addition, the Department accepted new factual information late in the proceeding and finds it necessary to take additional time to complete an analysis of that information. Because it is not practicable to complete this administrative review within the time limit mandated by section 751(a)(3)(A) of the Act and 19 CFR 351.213(h)(2), the Department is extending the time limit for completion of the final results of this administrative review by 45 days, to no later than December 14, 2007. This notice is published pursuant to sections 751(a)(1) and 777(i)(1) of the Act. Dated: October 18, 2007. Stephen J. Clays, Acting Deputy Assistant Secretary for Import Administration. [FR Doc. E7–21037 Filed 10–24–07; 8:45 am] BILLING CODE 3510–DS–S DEPARTMENT OF COMMERCE International Trade Administration (C–580–857) Coated Free Sheet Paper from the Republic of Korea: Notice of Final Affirmative Countervailing Duty Determination Import Administration, International Trade Administration, Department of Commerce. SUMMARY: We determine that countervailable subsidies are being provided to producers and exporters of coated free sheet paper from the Republic of Korea. For information on the estimated subsidy rates, see the AGENCY: E:\FR\FM\25OCN1.SGM 25OCN1 60640 Federal Register / Vol. 72, No. 206 / Thursday, October 25, 2007 / Notices ‘‘Suspension of Liquidation’’ section of this notice. EFFECTIVE DATE: October 25, 2007. FOR FURTHER INFORMATION CONTACT: Robert Copyak, AD/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: mstockstill on PROD1PC66 with NOTICES Background This investigation covers 19 programs and the following manufacturer/ exporters: EN Paper Mfg. Co., Ltd. (EN Paper) (formerly Shinho Paper Co., Ltd. (Shinho Paper)), Kyesung Paper Co., Ltd. and its affiliate Namhan Paper Co., Ltd. (collectively, Kyesung), Moorim Paper Co. Ltd. (formerly Shinmoorim Paper Mfg. Co., Ltd.) and its affiliate Moorim SP (collectively, Moorim), and Hansol Paper Co., Ltd. (Hansol) (collectively, respondents). On April 9, 2007, the Department of Commerce (the Department) published in the Federal Register its preliminary affirmative determination in the countervailing duty investigation of coated free sheet paper from the Republic of Korea. See Coated Free Paper from the Republic of Korea: Preliminary Affirmative Countervailing Duty Determination, 72 FR 17507, 17520 (April 9, 2007) (Preliminary Determination). On May 8, 2007, the Department published in the Federal Register the Notice of Amended Preliminary Countervailing Duty Determination: Coated Free Sheet Paper from the Republic of Korea, 72 FR 26074 (May 8, 2007) (Amended Preliminary Determination). From June 11 through June 29, 2007, we conducted verification of the questionnaire responses submitted by the Government of Korea and respondents. In the Preliminary Determination, we found that we required additional information in order to determine whether respondents’ short–term financing from GOK–owned banks and commercial banks conferred countervailable benefits. Similarly, regarding the Industrial Base Fund (IBF), we found that we required additional information in order to determine whether the program conferred a countervailable subsidy. On September 6, 2007, we issued our preliminary findings regarding these programs. See Memorandum to David M. Spooner, Assistant Secretary for Import Administration, through Stephen J. Claeys, Deputy Assistant Secretary for VerDate Aug<31>2005 17:26 Oct 24, 2007 Jkt 214001 Import Administration (Preliminary Decision Memorandum). We invited interested parties to comment on the Preliminary Determination and Preliminary Decision Memorandum. We received case and rebuttal briefs from petitioner and respondents regarding the Preliminary Determination on August 13 and August 22, 2007, respectively.1 On September 14 and September 19, 2007, we received case and rebuttal briefs from petitioner and respondents regarding the Preliminary Decision Memorandum. Period of Investigation The period of investigation (POI) is January 1, 2005, through December 31, 2005. Scope of Investigation The merchandise covered by this investigation includes coated free sheet paper and paperboard of a kind used for writing, printing or other graphic purposes. Coated free sheet paper is produced from not–more-than 10 percent by weight mechanical or combined chemical/mechanical fibers. Coated free sheet paper is coated with kaolin (China clay) or other inorganic substances, with or without a binder, and with no other coating. Coated free sheet paper may be surface–colored, surface–decorated, printed (except as described below), embossed, or perforated. The subject merchandise includes single- and double–side-coated free sheet paper; coated free sheet paper in both sheet or roll form; and is inclusive of all weights, brightness levels, and finishes. The terms ‘‘wood free’’ or ‘‘art’’ paper may also be used to describe the imported product. Excluded from the scope are: (1) coated free sheet paper that is imported printed with final content printed text or graphics; (2) base paper to be sensitized for use in photography; and (3) paper containing by weight 25 percent or more cotton fiber. Coated free sheet paper is classifiable under subheadings 4810.13.1900, 4810.13.2010, 4810.13.2090, 4810.13.5000, 4810.13.7040, 4810.14.1900, 4810.14.2010, 4810.14.2090, 4810.14.5000, 4810.14.7040, 4810.19.1900, 4810.19.2010, and 4810.19.2090 of the Harmonized Tariff Schedule of the United States (HTSUS). While HTSUS subheadings are provided for convenience and customs purposes, our written description of the scope of this investigation is dispositive. 1 Petitioner PO 00000 is the New Page Corporation. Frm 00024 Fmt 4703 Sfmt 4703 Scope Comments On August 20, August 28, and September 10, 2007, the petitioner requested that the Department clarify the scope of the antidumping and countervailing duty investigations of CFS paper from Indonesia, Korea and the People’s Republic of China. Specifically, the petitioner asked the Department to ‘‘clarify that the scope of the investigation includes coated free sheet paper containing hardwood BCTMP.’’ Because this was a general issue pertaining to all six investigations, the Department set up a general issues file to handle this scope request. A hearing on the scope request was held on September 26, 2007. The hearing comprised a public session, a closed session for the antidumping investigation from Korea, and a closed session for the countervailing duty investigation from the PRC. After considering the comments submitted by the parties to these investigations, we have determined not to adopt the scope clarification sought by the petitioner. See Memorandum to Stephen J. Claeys, Deputy Assistant Secretary for Import Administration, entitled ‘‘Scope Clarification Request: NewPage Corporation’’ dated concurrently with this notice, which is appended to ‘‘Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Coated Free Sheet Paper from the People’s Republic of China.’’ 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 October 17, 2007, 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 I. 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 Central Records Unit. In addition, a complete version of the Decision Memorandum can be accessed directly on the World Wide Web at http:// 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 of 1930 (as amended) (the Act), we have E:\FR\FM\25OCN1.SGM 25OCN1 Federal Register / Vol. 72, No. 206 / Thursday, October 25, 2007 / Notices calculated individual rates for the companies under investigation. For the period January 1, 2005, through December 31, 2005, we determine the net subsidy rates for the investigated companies are as follows: Producer/Exporter EN Paper Mfg. Co., Ltd. (EN Paper) ................ Kyesung Paper Co., Ltd. and its affiliate Namhan Paper Co., Ltd. (collectively, Kyesung) ................... mstockstill on PROD1PC66 with NOTICES Moorim Paper Co. Ltd. and its affiliate Moorim SP (collectively, Moorim) ........... Hansol Paper Co., Ltd. (Hansol) ..................... exist, we will issue a countervailing duty order. ITC Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. In addition, we are Net Subsidy Rate making available to the ITC all non– privileged and non–proprietary information related to this investigation. 0.04 percent (de We will allow the ITC access to all minimis) privileged and business proprietary information in our files, provided that the ITC confirms that it will not disclose such information, either publicly or 1.46 percent ad under an administrative protective order valorem (APO), without the written consent of the Assistant Secretary for Import Administration. Return or Destruction of Proprietary Information 0.17 percent (de In the event that the ITC issues a final minimis) All Others Rate ............. 1.46 percent ad negative injury determination, this valorem notice will serve as the only reminder to parties subject to APO of their Under section 705(c)(5)(A) of the Act, responsibility concerning the the ‘‘All Others’’ rate is equal to the destruction of proprietary information weight–averaged countervailable disclosed under APO in accordance subsidy rates established for exporters with 19 CFR 351.305(a)(3). Failure to and producers individually comply is a violation of the APO. investigated, excluding any zero and de This determination is published minimis countervailable subsidy rates pursuant to sections 705(d) and 777(i) of and any rates determined under section the Act. 776 of the Act. In this investigation, the Dated: October 17, 2007. ‘‘All Others’’ rate is equal to the David M. Spooner, countervailable net subsidy rate Assistant Secretary for Import calculated for Kyesung, the only Administration. individually investigated respondent with an affirmative net subsidy rate. Appendix I In accordance with our Amended I. SUMMARY Preliminary Determination, we II. SCOPE COMMENTS instructed U.S. Customs and Border III. PERIOD OF INVESTIGATION Protection (CBP) to terminate IV. SUBSIDIES VALUATION suspension of liquidation of all entries INFORMATION of subject merchandise from Korea on or A. Benchmark for Short–Term Loans after April 9, 2007, the date of the B. Benchmark for Long–Term Loans publication of our Preliminary C. Benchmark Discount Rates Determination in the Federal Register. D. Allocation Period We will reinstate suspension of V. CROSS–OWNERSHIP liquidation under sections 705(c)(1)(C) VI. CREDITWORTHINESS and 703(d)(2) of the Act for all entries VII. EQUITYWORTHINESS of subject merchandise other than those VIII. PROGRAMS DETERMINED TO BE produced and exported by EN Paper, COUNTERVAILABLE Hansol, and Moorim and will require a A. Poongman Restructuring cash deposit or posting of a bond equal B. Export and Import Credit Financing to estimated countervailing duties in the from KEXIM amounts indicated above, effective the C. Sale of Pulp for Less Than publication date of our final Adequate Remuneration determination in the Federal Register. D. Sales of Pulp From Raw Material If the International Trade Commission Reserve for Less Than Adequate (ITC) determines that material injury, or Remuneration threat of material injury, does not exist, E. Reduction in Taxes for Operation this proceeding will be terminated and in Regional and National Industrial all estimated duties deposited or Complexes securities posted as a result of the F. Duty Drawback on Non–Physically suspension of liquidation will be Incorporated Items and Excess Loss refunded or canceled. If however, the Rate ITC determines that such injury does G. Loans Under the Industrial Base VerDate Aug<31>2005 17:26 Oct 24, 2007 0.00 percent Jkt 214001 PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 60641 Fund (IBF) H. Export Loans by Commercial Banks Under KEXIM’s Trade Bill Rediscounting Program I. D/A Loans Issued by the KDB and Other Government–Owned Banks IX. PROGRAMS DETERMINED TO BE NOT COUNTERVAILABLE A. Long–Term Lending Provided by the KDB and Other GOK–Owned Institutions B. Direction of Credit to the Pulp and Paper Sector C. Usance Loans Issued by the KDB and Other Government–Owned Banks D. Shinho Restructuring 1. Debt–to-Equity Swaps and Conversion of Convertible Bonds to Equity 2. Extension of Debt Maturities 3. New Loans X. OTHER PROGRAMS: LOANS UNDER THE ACCL PROGRAM A. Trade Financing Under the ACCL Program B. Commercial Paper Loans Under the ACCL Program C. Corporate Procurement Loans Under the ACCL Program D. Electronically Processed Secured Receivables Loans E. Funds for the Production of Basic Materials or Parts XI. TERMINATED PROGRAMS A. Loans Under the KDB’s Rediscount Program XII. ANALYSIS OF COMMENTS Comment 1: Whether the GOK Directed Credit to the Pulp and Paper Industry Comment 2: Stainless Steel Is Not Applicable to Poongman’s Restructuring Comment 3: GOK Assisted and Directed Credit to Poongman During its Restructuring Comment 4: Poongman Was Unequityworthy and Uncreditworthy Comment 5: Poongman Did Not Benefit from Debt Forgiveness Comment 6: Evidence of Entrustment or Direction of Shinho’s Creditors Comment 7: GOK Ownership of Shinho’s Creditors and the Corporate Restructuring Process Comment 8: Whether Shinho Was Uncreditworthy During its 1998, 2000, and 2002 Restructurings and 2004 Syndicated Loan Comment 9: Whether Shinho Was Unequityworthy During its 1998, 2000, and 2002 Restructurings Comment 10: The Validity of the Analyses of Shinho’s Financial Status Conducted by Third Parties Comment 11: Donghae Pulp’s Sale of Chemical Pulp for Less Than Adequate Remuneration Comment 12: Commerce Correctly Calculated the Benefits from Donghae E:\FR\FM\25OCN1.SGM 25OCN1 60642 Federal Register / Vol. 72, No. 206 / Thursday, October 25, 2007 / Notices Pulp Based On Monthly Weighted– Average Prices Comment 13: If the Department Continues to Calculate Monthly Weighted–Average Prices for Donghae Pulp, Certain Methodological Corrections Are Required Comment 14: Hansol’s Arguments that Donghae Pulp is Owned or Controlled by the GOK Comment 15: The Benefit Calculation for Donghae Pulp’s Sale of Pulp Must Account for Prevailing Market Conditions Comment 16: Whether Usance and Document Acceptance Loans Provided Outside of the ACCL Program Are Countervailable Comment 17: Whether the Department Should Pro–Rate Benefits on D/A Loans Under the Korea Export Import Bank (KEXIM ) Program Comment 18: Source Data of the Benchmark To Be Applied to D/A Loans Under the KEXIM Rediscount Program and Usance Loans Issued by GOK Authorities Comment 19: Calculation of Benchmark To Be Applied to D/A Loans Under the KEXIM Rediscount Program Comment 20: Whether Commercial Paper and Corporate Procurement Loans are Countervailable Comment 21: Use of Company–Specific Benchmark to Measure the Benefit to Hansol Under KEXIM’s Export and Import Credit Financing Program Comment 22: Use of Non–CompanySpecific Benchmarks for KEXIM’s Import and Export Credit Financing Program Comment 23: Whether Hansol Received Countervailable Benefits Through the KDB’s Placement of its Corporate Bonds Comment 24: Whether Loans from the Industrial Base Fund (IBF) Constitute Countervailable Export Subsidies Comment 25: Benchmark Rates for Long–Term Korean Won–Denominated Loans XIII. RECOMMENDATION [FR Doc. E7–21036 Filed 10–24–07; 8:45 am] BILLING CODE 3510–DS–S DEPARTMENT OF COMMERCE International Trade Administration mstockstill on PROD1PC66 with NOTICES C–560–821 Coated Free Sheet Paper from Indonesia: Final Affirmative Countervailing Duty Determination Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) has reached a final AGENCY: VerDate Aug<31>2005 17:26 Oct 24, 2007 Jkt 214001 determination that countervailable subsidies are being provided to producers and exporters of coated free sheet paper (CFS) from Indonesia. For information on the countervailable subsidy rates, please see the ‘‘Final Determination’’ section of this notice. EFFECTIVE DATE: October 25, 2007. FOR FURTHER INFORMATION CONTACT: Sean Carey, Nicholas Czajkowski, or Gene Calvert, AD/CVD Operations, Office 6, Import Administration, International Trade Administration, U.S. Department of Commerce, Room 7866, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482–3964, (202) 482– 1395, or (202) 482–3586, respectively. SUPPLEMENTARY INFORMATION: Case History On April 9, 2007, the Department published Coated Free Sheet Paper from Indonesia: Notice of Preliminary Affirmative Countervailing Duty Determination, 72 FR 17498 (April 9, 2007) (Preliminary Determination). Since the issuance of the Preliminary Determination, the following events have occurred. On April 10 and May 18, 2007, the Department issued supplemental questionnaires to the Government of Indonesia (GOI) and to PT. Pabrik Kertas Tjiwi Kimia Tbk. (TK) and Pindo Deli Pulp and Paper Mills (PD) (the respondent companies). On April 20 and May 24, 2007, the Department issued initial and supplemental questionnaires to the GOI and to the respondent companies regarding the petitioner’s December 15, 2007 additional allegations concerning debt forgiveness. Both parties submitted timely responses to all of the Department’s questionnaires and supplemental questionnaires. On May 2, 2007, the Department aligned the final determination in this countervailing duty investigation with the final determination in the companion antidumping duty investigation. See Coated Free Sheet Paper from Indonesia, the People’s Republic of China, and the Republic of Korea: Alignment of Final Countervailing Duty Determinations with Final Antidumping Duty Determinations, 72 FR 24277 (May 2, 2007). On May 10, 2007, NewPage Corporation (the petitioner) requested a hearing pursuant to 19 CFR 351.310(c) and the Department’s Preliminary Determination. On June 18 and June 19, 2007, the petitioner and the respondent companies submitted new factual information concerning the Department’s investigation of the ‘‘GOI PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 Provision of Standing Timber for Less than Adequate Remuneration,’’ or ‘‘stumpage.’’ On June 28, 2007, the petitioner submitted rebuttal comments regarding the respondent companies’ new factual information submission. From June 25 through July 13, 2007, the Department conducted verification of the questionnaire responses provided by the GOI and the respondent companies. On July 13, 2007, the petitioner filed an upstream subsidy allegation, claiming, in accordance with section 771A(a) of the Tariff Act of 1930, as amended, (the Act), that (1) a subsidy, other than an export subsidy, has been paid or bestowed on an input product that is used in the manufacture or production of merchandise subject to a countervailing duty proceeding; (2) the subsidy bestows a competitive benefit on the merchandise; and (3) the subsidy has a significant effect on the cost of manufacturing or producing the merchandise. On July 23, 2007, the respondent companies filed rebuttal comments, and on August 10, 2007, the petitioner filed surrebuttal comments on this allegation. The Department issued verification reports on August 24, 2007: see Memoranda to the File, Countervailing Duty Investigation of Coated Free Sheet (CFS) Paper from Indonesia: Verification of the Questionnaire Responses Submitted by Ministry of Forestry and the Ministry of Finance; Countervailing Duty Investigation of Coated Free Sheet Paper from Indonesia: Verification of Cross– Ownership and Debt Restructuring for the Asia Pulp and Paper/Sinar Mas Group; Countervailing Duty Investigation of Coated Free Sheet Paper from Indonesia: Verification of PT Pindo Deli Pulp & Paper Mills and PT. Pabrik Kertas Tjiwi Kimia (Paper Producers/ Exports) and PT Cakrawala Mega Indah (trading company); Countervailing Duty Investigation of Coated Free Sheet (CFS) Paper from Indonesia: Verification of the Questionnaire Responses Submitted by Pulp Producers PT. Lontar Papyrus Pulp and Paper and Indah Kiat Pulp and Paper Tbk.; and, Countervailing Duty Investigation of Coated Free Sheet (CFS) Paper from Indonesia: Verification of the Questionnaire Responses Submitted by Forestry Companies PT. Arara Abadi, PT. Wirakarya Sakti, PT. Finnantara Intiga, and PT. Riau Abadi Lestari. On September 5 and September 6, 2007, the petitioner, the GOI, the respondent companies, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL–CIO, CLC E:\FR\FM\25OCN1.SGM 25OCN1

Agencies

[Federal Register Volume 72, Number 206 (Thursday, October 25, 2007)]
[Notices]
[Pages 60639-60642]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21036]


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DEPARTMENT OF COMMERCE

International Trade Administration

(C-580-857)


Coated Free Sheet Paper from the Republic of Korea: Notice of 
Final Affirmative Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: We determine that countervailable subsidies are being provided 
to producers and exporters of coated free sheet paper from the Republic 
of Korea. For information on the estimated subsidy rates, see the

[[Page 60640]]

``Suspension of Liquidation'' section of this notice.

EFFECTIVE DATE: October 25, 2007.

FOR FURTHER INFORMATION CONTACT: Robert Copyak, AD/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:

Background

    This investigation covers 19 programs and the following 
manufacturer/exporters: EN Paper Mfg. Co., Ltd. (EN Paper) (formerly 
Shinho Paper Co., Ltd. (Shinho Paper)), Kyesung Paper Co., Ltd. and its 
affiliate Namhan Paper Co., Ltd. (collectively, Kyesung), Moorim Paper 
Co. Ltd. (formerly Shinmoorim Paper Mfg. Co., Ltd.) and its affiliate 
Moorim SP (collectively, Moorim), and Hansol Paper Co., Ltd. (Hansol) 
(collectively, respondents).
    On April 9, 2007, the Department of Commerce (the Department) 
published in the Federal Register its preliminary affirmative 
determination in the countervailing duty investigation of coated free 
sheet paper from the Republic of Korea. See Coated Free Paper from the 
Republic of Korea: Preliminary Affirmative Countervailing Duty 
Determination, 72 FR 17507, 17520 (April 9, 2007) (Preliminary 
Determination).
    On May 8, 2007, the Department published in the Federal Register 
the Notice of Amended Preliminary Countervailing Duty Determination: 
Coated Free Sheet Paper from the Republic of Korea, 72 FR 26074 (May 8, 
2007) (Amended Preliminary Determination). From June 11 through June 
29, 2007, we conducted verification of the questionnaire responses 
submitted by the Government of Korea and respondents.
    In the Preliminary Determination, we found that we required 
additional information in order to determine whether respondents' 
short-term financing from GOK-owned banks and commercial banks 
conferred countervailable benefits. Similarly, regarding the Industrial 
Base Fund (IBF), we found that we required additional information in 
order to determine whether the program conferred a countervailable 
subsidy. On September 6, 2007, we issued our preliminary findings 
regarding these programs. See Memorandum to David M. Spooner, Assistant 
Secretary for Import Administration, through Stephen J. Claeys, Deputy 
Assistant Secretary for Import Administration (Preliminary Decision 
Memorandum).
    We invited interested parties to comment on the Preliminary 
Determination and Preliminary Decision Memorandum. We received case and 
rebuttal briefs from petitioner and respondents regarding the 
Preliminary Determination on August 13 and August 22, 2007, 
respectively.\1\ On September 14 and September 19, 2007, we received 
case and rebuttal briefs from petitioner and respondents regarding the 
Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \1\ Petitioner is the New Page Corporation.
---------------------------------------------------------------------------

Period of Investigation

    The period of investigation (POI) is January 1, 2005, through 
December 31, 2005.

Scope of Investigation

    The merchandise covered by this investigation includes coated free 
sheet paper and paperboard of a kind used for writing, printing or 
other graphic purposes. Coated free sheet paper is produced from not-
more-than 10 percent by weight mechanical or combined chemical/
mechanical fibers. Coated free sheet paper is coated with kaolin (China 
clay) or other inorganic substances, with or without a binder, and with 
no other coating. Coated free sheet paper may be surface-colored, 
surface-decorated, printed (except as described below), embossed, or 
perforated. The subject merchandise includes single- and double-side-
coated free sheet paper; coated free sheet paper in both sheet or roll 
form; and is inclusive of all weights, brightness levels, and finishes. 
The terms ``wood free'' or ``art'' paper may also be used to describe 
the imported product.
    Excluded from the scope are: (1) coated free sheet paper that is 
imported printed with final content printed text or graphics; (2) base 
paper to be sensitized for use in photography; and (3) paper containing 
by weight 25 percent or more cotton fiber.
    Coated free sheet paper is classifiable under subheadings 
4810.13.1900, 4810.13.2010, 4810.13.2090, 4810.13.5000, 4810.13.7040, 
4810.14.1900, 4810.14.2010, 4810.14.2090, 4810.14.5000, 4810.14.7040, 
4810.19.1900, 4810.19.2010, and 4810.19.2090 of the Harmonized Tariff 
Schedule of the United States (HTSUS). While HTSUS subheadings are 
provided for convenience and customs purposes, our written description 
of the scope of this investigation is dispositive.

Scope Comments

    On August 20, August 28, and September 10, 2007, the petitioner 
requested that the Department clarify the scope of the antidumping and 
countervailing duty investigations of CFS paper from Indonesia, Korea 
and the People's Republic of China. Specifically, the petitioner asked 
the Department to ``clarify that the scope of the investigation 
includes coated free sheet paper containing hardwood BCTMP.''
    Because this was a general issue pertaining to all six 
investigations, the Department set up a general issues file to handle 
this scope request. A hearing on the scope request was held on 
September 26, 2007. The hearing comprised a public session, a closed 
session for the antidumping investigation from Korea, and a closed 
session for the countervailing duty investigation from the PRC. After 
considering the comments submitted by the parties to these 
investigations, we have determined not to adopt the scope clarification 
sought by the petitioner. See Memorandum to Stephen J. Claeys, Deputy 
Assistant Secretary for Import Administration, entitled ``Scope 
Clarification Request: NewPage Corporation'' dated concurrently with 
this notice, which is appended to ``Issues and Decision Memorandum for 
the Final Determination in the Countervailing Duty Investigation of 
Coated Free Sheet Paper from the People's Republic of China.''

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 October 17, 2007, 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 I. 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 Central Records Unit. In addition, a complete version of 
the Decision Memorandum can be accessed directly on the World Wide Web 
at http://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 of 
1930 (as amended) (the Act), we have

[[Page 60641]]

calculated individual rates for the companies under investigation. For 
the period January 1, 2005, through December 31, 2005, we determine the 
net subsidy rates for the investigated companies are as follows:

------------------------------------------------------------------------
                  Producer/Exporter                    Net Subsidy Rate
------------------------------------------------------------------------
EN Paper Mfg. Co., Ltd. (EN Paper)..................    0.04 percent (de
                                                                minimis)
Kyesung Paper Co., Ltd. and its affiliate Namhan         1.46 percent ad
 Paper Co., Ltd. (collectively, Kyesung)............             valorem
Moorim Paper Co. Ltd. and its affiliate Moorim SP           0.00 percent
 (collectively, Moorim).............................
Hansol Paper Co., Ltd. (Hansol).....................    0.17 percent (de
                                                                minimis)
All Others Rate.....................................     1.46 percent ad
                                                                 valorem
------------------------------------------------------------------------

    Under section 705(c)(5)(A) of the Act, the ``All Others'' rate is 
equal to the weight-averaged countervailable subsidy rates established 
for exporters and producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates and any rates 
determined under section 776 of the Act. In this investigation, the 
``All Others'' rate is equal to the countervailable net subsidy rate 
calculated for Kyesung, the only individually investigated respondent 
with an affirmative net subsidy rate.
    In accordance with our Amended Preliminary Determination, we 
instructed U.S. Customs and Border Protection (CBP) to terminate 
suspension of liquidation of all entries of subject merchandise from 
Korea on or after April 9, 2007, the date of the publication of our 
Preliminary Determination in the Federal Register.
    We will reinstate suspension of liquidation under sections 
705(c)(1)(C) and 703(d)(2) of the Act for all entries of subject 
merchandise other than those produced and exported by EN Paper, Hansol, 
and Moorim and will require a cash deposit or posting of a bond equal 
to estimated countervailing duties in the amounts indicated above, 
effective the publication date of our final determination in the 
Federal Register.
    If the International Trade Commission (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. If however, the ITC determines that such injury 
does exist, we will issue a countervailing duty order.

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.

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: October 17, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I

I. SUMMARY
II. SCOPE COMMENTS
III. PERIOD OF INVESTIGATION
IV. SUBSIDIES VALUATION INFORMATION
    A. Benchmark for Short-Term Loans
    B. Benchmark for Long-Term Loans
    C. Benchmark Discount Rates
    D. Allocation Period
V. CROSS-OWNERSHIP
VI. CREDITWORTHINESS
VII. EQUITYWORTHINESS
VIII. PROGRAMS DETERMINED TO BE COUNTERVAILABLE
    A. Poongman Restructuring
    B. Export and Import Credit Financing from KEXIM
    C. Sale of Pulp for Less Than Adequate Remuneration
    D. Sales of Pulp From Raw Material Reserve for Less Than Adequate 
Remuneration
    E. Reduction in Taxes for Operation in Regional and National 
Industrial Complexes
    F. Duty Drawback on Non-Physically Incorporated Items and Excess 
Loss Rate
    G. Loans Under the Industrial Base Fund (IBF)
    H. Export Loans by Commercial Banks Under KEXIM's Trade Bill 
Rediscounting Program
    I. D/A Loans Issued by the KDB and Other Government-Owned Banks
IX. PROGRAMS DETERMINED TO BE NOT COUNTERVAILABLE
    A. Long-Term Lending Provided by the KDB and Other GOK-Owned 
Institutions
    B. Direction of Credit to the Pulp and Paper Sector
    C. Usance Loans Issued by the KDB and Other Government-Owned Banks
    D. Shinho Restructuring
    1. Debt-to-Equity Swaps and Conversion of Convertible Bonds to 
Equity
    2. Extension of Debt Maturities
    3. New Loans
X. OTHER PROGRAMS: LOANS UNDER THE ACCL PROGRAM
    A. Trade Financing Under the ACCL Program
    B. Commercial Paper Loans Under the ACCL Program
    C. Corporate Procurement Loans Under the ACCL Program
    D. Electronically Processed Secured Receivables Loans
    E. Funds for the Production of Basic Materials or Parts
XI. TERMINATED PROGRAMS
    A. Loans Under the KDB's Rediscount Program
XII. ANALYSIS OF COMMENTS
Comment 1: Whether the GOK Directed Credit to the Pulp and Paper 
Industry
Comment 2: Stainless Steel Is Not Applicable to Poongman's 
Restructuring
Comment 3: GOK Assisted and Directed Credit to Poongman During its 
Restructuring
Comment 4: Poongman Was Unequityworthy and Uncreditworthy
Comment 5: Poongman Did Not Benefit from Debt Forgiveness
Comment 6: Evidence of Entrustment or Direction of Shinho's Creditors
Comment 7: GOK Ownership of Shinho's Creditors and the Corporate 
Restructuring Process
Comment 8: Whether Shinho Was Uncreditworthy During its 1998, 2000, and 
2002 Restructurings and 2004 Syndicated Loan
Comment 9: Whether Shinho Was Unequityworthy During its 1998, 2000, and 
2002 Restructurings
Comment 10: The Validity of the Analyses of Shinho's Financial Status 
Conducted by Third Parties
Comment 11: Donghae Pulp's Sale of Chemical Pulp for Less Than Adequate 
Remuneration
Comment 12: Commerce Correctly Calculated the Benefits from Donghae

[[Page 60642]]

Pulp Based On Monthly Weighted-Average Prices
Comment 13: If the Department Continues to Calculate Monthly Weighted-
Average Prices for Donghae Pulp, Certain Methodological Corrections Are 
Required
Comment 14: Hansol's Arguments that Donghae Pulp is Owned or Controlled 
by the GOK
Comment 15: The Benefit Calculation for Donghae Pulp's Sale of Pulp 
Must Account for Prevailing Market Conditions
Comment 16: Whether Usance and Document Acceptance Loans Provided 
Outside of the ACCL Program Are Countervailable
Comment 17: Whether the Department Should Pro-Rate Benefits on D/A 
Loans Under the Korea Export Import Bank (KEXIM ) Program
Comment 18: Source Data of the Benchmark To Be Applied to D/A Loans 
Under the KEXIM Rediscount Program and Usance Loans Issued by GOK 
Authorities
Comment 19: Calculation of Benchmark To Be Applied to D/A Loans Under 
the KEXIM Rediscount Program
Comment 20: Whether Commercial Paper and Corporate Procurement Loans 
are Countervailable
Comment 21: Use of Company-Specific Benchmark to Measure the Benefit to 
Hansol Under KEXIM's Export and Import Credit Financing Program
Comment 22: Use of Non-Company-Specific Benchmarks for KEXIM's Import 
and Export Credit Financing Program
Comment 23: Whether Hansol Received Countervailable Benefits Through 
the KDB's Placement of its Corporate Bonds
Comment 24: Whether Loans from the Industrial Base Fund (IBF) 
Constitute Countervailable Export Subsidies
Comment 25: Benchmark Rates for Long-Term Korean Won-Denominated Loans
XIII. RECOMMENDATION
[FR Doc. E7-21036 Filed 10-24-07; 8:45 am]
BILLING CODE 3510-DS-S