Certain Lined Paper Products From India: Notice of Preliminary Results of Countervailing Duty Administrative Review, 58121-58126 [E8-23565]
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Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
affiliated producers pursuant to 19 CFR
351.401(f)(2). Therefore, we have treated
Hi-King and the affiliated entities in
question as a single entity for purposes
of this review.
Preliminary Results of the Review
As a result of our review, we
preliminarily determine that the
following percentage weighted-average
dumping margin exists for the period
September 1, 2006, through August 31,
2007:
Percent
Margin
Manufacturer/Exporter
Yancheng Hi-King Agriculture
Developing Co., Ltd. ...............
0.00
jlentini on PROD1PC65 with NOTICES
Comments
We will disclose the calculations used
in our analysis to parties in this review
within five days of the date of
publication of this notice in accordance
with 19 CFR 351.224(b). Interested
parties may submit publicly available
information to value factors no later
than 20 days after the date of
publication of these preliminary results
of review. See 19 CFR 351.301(c)(3)(ii).
Any interested party may request a
hearing within 30 days of the date of
publication of this notice. See 19 CFR
351.310. Interested parties who wish to
request a hearing or to participate in a
hearing if one is requested must submit
a written request to the Assistant
Secretary for Import Administration
within 30 days of the date of publication
of this notice. Requests should contain
the following: (1) the party’s name,
address, and telephone number; (2) the
number of participants; (3) a list of
issues to be discussed. See 19 CFR
351.310(c).
Issues raised in the hearing will be
limited to those raised in the case and
rebuttal briefs. See 19 CFR 351.310(c).
Case briefs from interested parties may
be submitted not later than 30 days after
the date of publication of this notice of
preliminary results of review. See 19
CFR 351.309(c)(1)(ii). Rebuttal briefs
from interested parties, limited to the
issues raised in the case briefs, may be
submitted not later than five days after
the time limit for filing the case briefs
or comments. See 19 CFR 351.309(d)(1).
If requested, any hearing will be held
two days after the scheduled date for
submission of rebuttal briefs. See 19
CFR 351.310(d). Parties who submit
case briefs or rebuttal briefs in this
proceeding are requested to submit with
each argument a statement of the issue,
a summary of the arguments not
exceeding five pages, and a table of
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statutes, regulations, and cases cited.
See 19 CFR 351.309(c)(2).
The Department will issue the final
results of this administrative review,
including the results of its analysis of
issues raised in any such written briefs
or at the hearing, if held, not later than
120 days after the date of publication of
this notice. See section 751(a)(3)(A) of
the Act.
Assessment Rates
Upon issuance of the final results, the
Department will determine, and CBP
shall assess, antidumping duties on all
appropriate entries. The Department
intends to issue assessment instructions
to CBP 15 days after the date of
publication of the final results of
review. If these preliminary results are
adopted in our final results of review,
because we calculated a margin of zero
percent for Hi-King, we will instruct
CBP to liquidate the entries of
merchandise exported by Hi-King
without regard to antidumping duties.
Cash Deposit Requirements
The following cash deposit
requirements will be effective upon
publication of the final results of this
review for all shipments of the subject
merchandise entered, or withdrawn
from warehouse, for consumption on or
after the publication date, as provided
by section 751(a)(2)(C) of the Act: (1) for
subject merchandise exported by HiKing, the cash-deposit rate will be that
established in the final results of review;
(2) for previously reviewed or
investigated companies not listed above
that have separate rates, the cashdeposit rate will continue to be the
company-specific rate published for the
most recent period; (3) for all other PRC
exporters of subject merchandise which
have not been found to be entitled to a
separate rate, the cash-deposit rate will
be PRC-wide rate of 223.01 percent; (4)
for all non-PRC exporters of subject
merchandise the cash-deposit rate will
be the rate applicable to the PRC entity
that supplied that exporter. These
deposit requirements, when imposed,
shall remain in effect until further
notice.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
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58121
occurred and the subsequent assessment
of double antidumping duties.
This administrative review and this
notice are in accordance with sections
751(a)(1) and 777(i) of the Act.
Dated: September 29, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E8–23572 Filed 10–3–08; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[C–533–844]
Certain Lined Paper Products From
India: Notice of Preliminary Results of
Countervailing Duty Administrative
Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) is conducting an
administrative review of the
countervailing duty (CVD) order on
certain lined paper products from India
for the period February 15, 2006,
through December 31, 2006, the period
of review (POR).1 For information on
the net subsidy rate for the reviewed
company, Navneet Publications (India)
Limited (Navneet), see the ‘‘Preliminary
Results of Review’’ section of this
notice. Interested parties are invited to
comment on these preliminary results.
See the ‘‘Public Comment’’ section of
this notice.
DATES: Effective Date: October 6, 2008.
FOR FURTHER INFORMATION CONTACT:
Jolanta Lawska or John Conniff, AD/
CVD Operations, Office 3, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, Room 4014, 14th Street and
Constitution Avenue, NW., Washington,
AGENCY:
1 Pursuant to 19 CFR 351.213(e)(2)(ii), because the
Department received Navneet’s request during the
first anniversary month after publication of the
order, this administrative review covers entries
from February 15, 2006, the date of suspension of
liquidation through December 31, 2006, the end of
the most recently completed calendar year. (The
date of suspension of liquidation corresponds to the
publication in the Federal Register of the Notice of
Preliminary Affirmative Countervailing Duty
Determination and Preliminary Negative Critical
Circumstances Determination: Certain Lined Paper
Products from India, 71 FR 7916 (February 15,
2006) (Preliminary Determination of Lined Paper
Investigation). However, for purposes of this
administrative review, we will analyze data
corresponding to calendar year 2006 (January 1,
2006, through December 31, 2006) to determine the
subsidy rate for exports of subject merchandise
made during the period in which liquidation of
entries was suspended.
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Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
DC 20230; telephone: (202) 482–8362 or
(202) 482–1009, respectively.
SUPPLEMENTARY INFORMATION:
Background
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On September 28, 2006, the
Department published in the Federal
Register the CVD order on certain lined
paper products from India. See Notice of
Amended Final Determination of Sales
at Less Than Fair Value: Certain Lined
Paper Products from the People’s
Republic of China; Notice of
Antidumping Duty Orders: Certain
Lined Paper Products from India,
Indonesia and the People’s Republic of
China; and Notice of Countervailing
Duty Orders: Certain Lined Paper
Products from India and Indonesia, 71
FR 56949 (September 28, 2006). On
September 4, 2007, the Department
published a notice of opportunity to
request an administrative review of this
CVD order. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
to Request Administrative Review, 72
FR 50657 (September 4, 2007)
(Opportunity to Request Review).2 On
September 21, 2007, we received a
timely request for review from Navneet,
an Indian producer and exporter of
subject merchandise.
On October 31, 2007, the Department
initiated an administrative review of the
CVD order on certain lined paper
products from India, covering the period
February 15, 2006, through December
31, 2006. See Initiation of Antidumping
and Countervailing Duty Administrative
Reviews, 72 FR 61621 (October 31,
2007).3
The Department issued a
questionnaire to the Government of
India (GOI) and Navneet (collectively,
the respondents) on November 6, 2007.
We received a questionnaire response
from Navneet on December 8, 2007, and
from the GOI on December 13, 2007.
Between March 31, 2008, and July 9,
2008, we issued supplemental
questionnaires to the respondents
regarding programs addressed in the
initial CVD questionnaire and received
responses. Between April 8, 2008, and
July 17, 2008 we received supplemental
questionnaire responses from the GOI
and Navneet.
2 On October 1, 2007, we published a correction
to the Opportunity to Request Review to correct the
POR. See Antidumping or Countervailing Duty
Order, Finding, or Suspended Investigation;
Opportunity to Request Administrative Review, 72
FR 55741 (October 1, 2007).
3 In the notice of initiation published October 31,
2007, we listed the POR for certain lined paper
products from India incorrectly. The correct POR is
listed above.
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On January 17, 2008, petitioners 4
submitted information on a new subsidy
allegation. On April 30, 2008, the
Department initiated an investigation of
the new subsidy allegation. See the
Memorandum to Melissa G. Skinner,
Director, Office 3, from Jolanta Lawska,
Case Analyst, entitled, ‘‘New Subsidy
Allegations for Navneet Publications
(India), Ltd. (Navneet),’’ a public
document on file in the Central Records
Unit (CRU), room 1117 of the main
Department building. On May 6, 2008,
we issued a questionnaire on this new
subsidy allegation to Navneet and the
GOI. On May 19, 2008, and June 3,
2008, we received responses to the new
subsidy questionnaires from the GOI
and Navneet, respectively. On July 8,
2008, we issued a supplemental
questionnaire to Navneet. On July 17,
2008, we received a Navneet’s response.
On May 16, 2008, the Department
published in the Federal Register an
extension of the deadline for the
preliminary results of this review to no
later than September 29, 2008. See
Certain Lined Paper Products from
India: Extension of Time Limit for
Preliminary Results of Countervailing
Duty Administrative Review, 73 FR
28431 (May 16, 2008).
In accordance with 19 CFR
351.213(b), this review covers only
those producers or exporters for which
a review was specifically requested. The
company subject to this review is
Navneet. This review covers 15 federal
programs and 7 state programs.
Scope of Order
The scope of this order includes
certain lined paper products, typically
school supplies, composed of or
including paper that incorporates
straight horizontal and/or vertical lines
on ten or more paper sheets, 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 83⁄4 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,
4 Petitioners are the Association of American
School Paper Suppliers and its members Mead
Westvaco Corporation, Top Flight Inc., and Norcom
Inc.
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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 the
order 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 order 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;
• 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: Preprinted
business forms, lined invoice pads and
paper, mailing and address labels,
manifests, and shipping log books;
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• Lined continuous computer paper;
• Boxed or packaged writing
stationery (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,5 measuring 6 inches by 9
inches;
Also excluded from the scope of this
order 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; 6
• 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.7
• FiveStar R 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 23⁄8″ 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
5 ‘‘Gregg ruling’’ consists of a single- or doublemargin 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.
6 Products found to be bearing an invalidly
licensed or used trademark are not excluded from
the scope.
7 Products found to be bearing an invalidly
licensed or used trademark are not excluded from
the scope.
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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 R Advance TM.8
• FiveStar Flex TM: A notebook, a
notebook organizer, or binder with
plastic polyolefin front and rear covers
joined by a 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.9
Merchandise subject to this order is
typically imported under headings
4820.10.2050, 4810.22.5044,
4811.90.9090, 4820.10.2010,
4820.10.2020, and 4820.10.4001 of the
Harmonized Tariff Schedule of the
United States (HTSUS). The HTSUS
headings are provided for convenience
and customs purposes; however, the
written description of the scope of this
order is dispositive.
8 Products found to be bearing an invalidly
licensed or used trademark are not excluded from
the scope.
9 Products found to be bearing an invalidly
licensed or used trademark are not excluded from
the scope.
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Subsidies Valuation Information
I. Benchmarks for Loans and Discount
Rates
In these preliminary results, we
require the use of rupee-denominated
long-term loans for purposes of our
benchmark discount rate and long-term
benchmark rate. Pursuant to 19 CFR
351.524(d)(3)(i), the Department will
use, when available, the companyspecific cost of long-term, fixed-rate
loans (excluding loans deemed to be
countervailable subsidies) as a discount
rate for allocating non-recurring benefits
over time. Similarly, pursuant to 19 CFR
351.505(a), the Department will
normally use the actual cost of
comparable commercial borrowing by a
company as a loan benchmark, when
available. According to 19 CFR
351.505(a)(2)(i), a comparable
commercial loan is defined as one that,
when compared to the loan being
examined, has similarities in the
structure of the loan (e.g., fixed interest
rate vs. variable interest rate), the
maturity of the loan (e.g., short-term vs.
long-term), and the currency in which
the loan is denominated.
However, when there are no
comparable commercial loans, the
Department may use a national average
interest rate as a benchmark discount
rate and long-term benchmark rate,
pursuant to 19 CFR 351.524(d)(3)(i)(B)
and 19 CFR 351.505(a)(3)(ii),
respectively. In addition, 19 CFR
351.505(a)(2)(ii) states that the
Department will not consider a loan
provided by a government-owned
special purpose bank for purposes of
selecting a benchmark rate.
Navneet reported rupee-denominated
and dollar-denominated commercial
short-term loans that were outstanding
during the POR.10 However, Navneet
did not report any comparable long-term
loans from commercial banks during the
years under consideration that the
Department could use for our
benchmark discount rate and long-term
benchmark rate. Therefore, in
accordance with 19 CFR
351.524(d)(3)(i)(B) and 19 CFR
351.505(a)(3)(ii), we used India’s prime
lending rate (PLR) as published by the
Reserve Bank of India (RBI), as our longterm benchmark interest rate. The use of
the PLR is consistent with the
Department’s practice in prior Indian
proceedings. See, e.g., Final Results of
Countervailing Duty Administrative
Review: Certain Hot-Rolled Carbon Steel
Flat Products from India, 69 FR 26549
10 In these preliminary results we are examining
a countervailable program that requires the use of
long-term benchmarks.
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Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
consumed in the production of an
export product. DEPS credits are valid
for 12 months and are transferable after
the foreign exchange is realized from the
export sales on which the DEPS credits
are earned. With respect to subject
merchandise, the GOI has established a
II. Allocation Period
SION for the lined paper industry.
Under 19 CFR 351.524(d)(2)(i), we
The Department has previously
presume the allocation period for nondetermined that DEPS is a
recurring subsidies to be the average
countervailable program. See, e.g.,
useful life (AUL) of renewable physical
Notice of Final Affirmative
assets for the industry concerned, as
Countervailing Duty Determination and
listed in the Internal Revenue Service’s
Final Negative Critical Circumstances
1977 Class Life Asset Depreciation
Determination: Certain Lined Paper
Range System (IRS tables), as updated
Products from India, 71 FR 45034
by the U.S. Department of the Treasury. (August 8, 2006) (Final Determination of
This presumption will apply unless a
Lined Paper Investigation), and
party claims and establishes that the IRS accompanying Issues and Decision
tables do not reasonably reflect the AUL Memorandum (Final Determination of
of the renewable physical assets for the
Lined Paper Investigation Decision
company or industry under review, and Memorandum) at IV. A.3. ‘‘Duty
the party can establish that the
Entitlement Passbook Scheme.’’
difference between the companySpecifically, we determined that under
specific or country-wide AUL for the
DEPS, a financial contribution, as
industry under review is significant,
defined under section 771(5)(D)(ii) of
pursuant to 19 CFR 351.524(d)(2)(i). For the Tariff Act of 1930, as amended (the
assets used to manufacture products
Act), is provided because (1) the GOI
such as lined paper products, the IRS
provides credits for the future payment
tables prescribe an AUL of 15 years.
of import duties, and (2) the GOI does
In its questionnaire responses,
not have in place and does not apply a
Navneet did not rebut the regulatory
system that is reasonable and effective
presumption of a 15-year AUL. We,
for determining what imports are
therefore, used a 15-year AUL to
consumed in the production of the
allocate any non-recurring subsidies for exported product and in what amounts.
purposes of these preliminary results.
Id. Therefore, under section 771(5)(E) of
Further, for non-recurring subsidies,
the Act and 19 CFR 351.519(a)(4), we
we have applied the ‘‘0.5 percent test’’
determined that the entire amount of
described in 19 CFR 351.524(b)(2).
import duty exemption earned during
Under this test, we compare the amount the POR constitutes a benefit. We also
of subsidies approved under a given
found DEPS to be specific under section
program in a particular year to sales
771(5A)(A) of the Act because the
(total sales or total export sales, as
program is limited to exporters. See
appropriate) for the same year. If the
Final Determination of Lined Paper
amount of subsidies is less than 0.5
Investigation Decision Memorandum at
percent of the relevant sales, then the
IV.A.3. ‘‘Duty Entitlement Passbook
benefits are allocated to the year of
Scheme.’’ No new information or
receipt rather than allocated over the
evidence of changed circumstances has
AUL period.
been presented in this review to warrant
reconsideration of the Department’s
Analysis Of Programs
finding.
We have previously determined that
I. Programs Preliminarily Determined To
this program provides a recurring
Be Countervailable
benefit under 19 CFR 351.519(c). See,
1. Duty Entitlement Passbook Scheme
e.g., Preliminary Determination of Lined
(DEPS)
Paper Investigation, 71 FR 7916, 7920
India’s DEPS was enacted on April 1,
(unchanged in Final Determination of
1997, as a successor program to the
Lined Paper Investigation). See also 19
Passbook Scheme (PBS). DEPS enables
CFR 351.524(c). In accordance with past
exporting companies to earn import
practice and pursuant to 19 CFR
duty exemptions in the form of
351.519(b)(2), we preliminarily find that
passbook credits rather than cash. All
benefits from the DEPS program are
exporters are eligible to earn DEPS
conferred as of the date of exportation
credits on a post-export basis, provided
of the shipment for which the DEPS
that the GOI has established a standard
credits are earned. See, e.g., Final
input/output norm (SION) for the
Affirmative Countervailing Duty
Determination: Certain Cut-to-Length
exported product. DEPS credits can be
Carbon-Quality Steel Plate from India,
used for any subsequent imports,
64 FR 73131 (December 29, 1999) (Final
regardless of whether they are
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(May 13, 2004) (Final Results of First
HRC Review), and accompanying Issues
and Decision Memorandum (Final
Results of First HRC Review Decision
Memorandum) at I.B. ‘‘Benchmarks for
Loans and Discount Rate.’’
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Determination of CTL Plate
Investigation), at Comment 4
(explaining that for programs such as
the DEPS, ‘‘We calculate the benefit on
an ‘earned’ basis (that is upon export)
where it is provided as a percentage of
the value of the exported merchandise
on a shipment-by-shipment basis and
the exact amount of the exemption is
known’’).
To calculate the benefit, we summed
the credits that Navneet earned during
the POR on each export shipment to the
United States during the POR. We then
subtracted as an allowable offset the
actual amount of application fees paid
for each license in accordance with
section 771(6) of the Act.
Because DEPS credits are earned on a
shipment-by-shipment basis, in
calculating the net subsidy rate under
the DEPS program, we normally divide
the DEPS credits, or benefits, earned on
exports of subject merchandise to the
United States during the POR by the
total sales of subject merchandise to the
United States during the POR. However,
in the case of Navneet, the U.S. sales on
which the company earned the DEPS
credits during the POR pertained to both
subject and non-subject merchandise.
Therefore, in these preliminary results,
we calculated the net subsidy rate by
dividing the benefit by Navneet’s total
export sales to the United States during
the POR. See, e.g., Final Determination
of Lined Paper Investigation Decision
Memorandum at IV.A.3. ‘‘Duty
Entitlement Passbook Scheme.’’
On this basis, we preliminarily
calculate the net countervailable
subsidy from the DEPS program to be
6.93 percent ad valorem.
2. Export Promotion Capital Goods
Scheme (EPCGS)
The EPCGS provides for a reduction
or exemption of customs duties and an
exemption from excise taxes on imports
of capital goods. Under this program,
producers may import capital
equipment at a reduced customs duty,
subject to an export obligation equal to
eight times the duty saved to be fulfilled
over a period of eight years (12 years
where the CIF value is Rs. 100 Crore) 11
from the date the license was issued.
For failure to meet the export obligation,
a company is subject to payment of all
or part of the duty reduction, depending
on the extent of the export shortfall,
plus penalty interest.
The Department has previously
determined that the import duty
reductions provided under the EPCGS
constitute a countervailable export
subsidy. See, e.g., Polyethylene
11 A
E:\FR\FM\06OCN1.SGM
crore is equal to 10,000,000 rupees.
06OCN1
jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
Terephthalate Film, Sheet, and Strip
from India: Final Results of
Countervailing Duty Administrative
Review, 72 FR 6530 (February 12, 2007)
(Final Results of 3rd PET Film Review),
and accompanying Issues and Decision
Memorandum (Final Results of 3rd PET
Film Review Decision Memorandum) at
‘‘Export Promotion Capital Good
Scheme.’’ See also Final Determination
of Lined Paper Investigation Decision
Memorandum at IV.A.2. ‘‘Export
Promotion Capital Goods Scheme.’’
Specifically, the Department has
found that under the EPCGS program,
the GOI provides a financial
contribution under section 771(5)(D)(ii)
of Act, in the form of revenue foregone
that otherwise would be due. See, e.g.,
Final Determination of Lined Paper
Investigation Decision Memorandum at
IV.A.2. ‘‘Export Promotion Capital
Goods Scheme.’’ The Department also
found this program to be specific under
section 771(5A)(A) of the Act because it
is contingent upon export performance.
We further found that the EPCGS
conferred a benefit under section
771(5)(E) of the Act. Id. No new
information or evidence of changed
circumstances has been provided with
respect to this program. Therefore, we
continue to find that import duty
reductions provided under the EPCGS
are countervailable export subsidies.
Navneet reported that it received
import duty exemptions under the
EPCGS program. For these preliminary
results, we have determined the benefit
for Navneet in accordance with our
findings and treatment of this program
in other Indian CVD proceedings. See,
e.g., Final Results of 3rd PET Film
Review Decision Memorandum at
‘‘Export Promotion Capital Good
Scheme;’’ See also Final Determination
of Lined Paper Investigation and Final
Determination of Lined Paper
Investigation Decision Memorandum at
IV.A.2. ‘‘Export Promotion Capital
Goods Scheme.’’ Under the
Department’s approach, there are two
types of benefits under the EPCGS
program. The first benefit is the amount
of unpaid duties that would have to be
paid to the GOI if the export
requirements are not met. The
repayment of this liability is contingent
on subsequent events, and in such
instances, it is the Department’s practice
to treat any balance on an unpaid
liability as an interest-free loan. See 19
CFR 351.505(d)(1).
Further, consistent with our policy,
absent acknowledgment in the form of
an official letter from the GOI that the
liability has been eliminated, we treat
benefits from these licenses as
contingent liabilities. See, e.g., Final
VerDate Aug<31>2005
17:44 Oct 03, 2008
Jkt 217001
Results of 3rd PET Film Review Decision
Memorandum at ‘‘Export Promotion
Capital Goods Scheme;’’ see also Final
Determination of Lined Paper
Investigation Decision Memorandum at
IV.A.2. ‘‘Export Promotion Capital
Goods Scheme.’’
For those EPCGS licenses for which
Navneet has not yet met the export
obligations specified in the licenses by
the end of the POR, we preliminarily
find that the company had outstanding
contingent liabilities during the POR.
We further determine that the amount of
the contingent liability will be treated as
an interest-free loan in the amount of
the import duty reduction or exemption.
Accordingly, for those unpaid duties
for which Navneet has yet to fulfill their
export obligations, we preliminarily
find the benefit to be the interest that
Navneet would have paid during the
POR had it borrowed the full amount of
the duty reduction at the time of import.
Pursuant to 19 CFR 351.505(d)(1), we
used a long-term interest rate as our
benchmark to calculate the benefit of a
contingent liability interest-free loan
because the event upon which
repayment of the duties depends (i.e.,
the date of expiration of the time period
for the company to fulfill its export
commitments) occurs at a point in time
more than one year after the date the
capital goods were imported.
Specifically, we used the long-term
benchmark interest rates as described in
the ‘‘Subsidies Valuation’’ section,
supra. The rate used corresponds to the
year in which Navneet imported the
items under the program.
The second benefit is the waiver of
duty on imports of capital equipment
covered by those EPCGS licenses for
which the export requirement has been
met. For certain licenses, Navneet
reported that it had completed its export
obligation under the EPCGS program,
thereby eliminating the outstanding
contingent liabilities on the
corresponding duty exemptions.
However, as explained above, in
keeping with our practice, we have only
accepted those claims that are
accompanied by official letters from the
GOI indicating that the company met its
export obligation. Thus, for purposes of
calculating the benefit, we treated
licenses without accompanying letters
from the GOI demonstrating satisfaction
of the company’s export obligations as
contingent liabilities.
For those licenses for which Navneet
demonstrated that it had fulfilled the
export obligations, we followed our
methodology set forth in the Final
Determination of Lined Paper
Investigation and treated the import
duty savings as grants received in the
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
58125
year in which the GOI waived the
contingent liability on the import duty
exemptions. See, e.g., Final
Determination of Lined Paper
Investigation Decision Memorandum. In
accordance with 19 CFR 351.524(b)(2),
for each of the grant amounts related to
the particular license, we performed the
‘‘0.5 percent test’’ to determine whether
the benefit should be fully expensed in
the year of receipt or allocated over the
AUL used in this proceeding pursuant
to the grant allocation methodology set
forth in 19 CFR 351.524(d)(1). In all
cases, the grant amounts of the licenses
exceeded 0.5 percent of Navneet’s
relevant sales. Therefore, we allocated
the grant amounts over time using the
methodology set forth under 19 CFR
351.524(d)(i).
To calculate the subsidy rate for this
program, we summed the benefits from
the waived licenses, which we
determined confer a benefit in the form
of a grant, and from those licenses that
have yet to be waived, which we
determined confer a benefit in the form
of contingent liability loans. We then
divided the total benefits received by
Navneet’s total export sales for the POR.
On this basis, we preliminarily
determine the net countervailable
subsidy from this program to be 1.35
percent ad valorem.
3. The Government of India’s Income
Deduction Program (80IB Tax Program)
Pursuant to the Income Tax Act of
1961, as amended by the Finance Act
2007, Chapter VIA, 80IB(4) (India)
(2007), the GOI has implemented a tax
policy to foster economic development
of certain ‘‘industrially backward’’
regions in India. The tax exemptions
allowed under the 80IB Tax Program are
only available to companies located in
designated geographical areas (referred
to as ‘‘backward areas’’ by the GOI)
within India.12 Under the 80IB Tax
Program, the GOI allows domestic
companies that invest in economically
less developed areas of India to reduce
their corporate taxable income by up
100 percent of profit gained at
production facilities located in
designated geographical areas for a
period of five years and by up to 30
percent for the next five years. The
benefit is applied to the gross total
income of the tax payer and is claimed
when a company files its income tax
return at the end of every financial year.
We preliminarily determine that the
80IB Tax Program is a countervailable
program. Specifically, we preliminarily
12 ‘‘Industrially backward’’ states are states and
union territories specified in the Eight Schedule of
the Indian tax code.
E:\FR\FM\06OCN1.SGM
06OCN1
58126
Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
determine that a financial contribution
is provided under this program, in the
form of foregone tax revenue, within the
meaning of section 771(5)(D)(ii) of the
Act. We further preliminarily determine
that the GOI provided a benefit under
this program in an amount equal to the
tax savings under section 771(5)(E) of
the Act. In addition, we preliminarily
determine that the program is limited to
enterprises in geographically limited
areas and, therefore, is specific within
the meaning of section 771(5A)(D)(iv) of
the Act.
One of Navneet’s manufacturing
plants operates in a region that is
designated by the GOI as an
‘‘industrially backward’’ territory of
India and therefore, the company is
eligible for the tax incentives described
above. Navneet reported that it received
tax deductions under this program
during the POR on its 2006 corporate
income tax return, which was the return
filed by the company during the POR.
The Department typically treats a tax
deduction as a recurring benefit in
accordance with 19 CFR 351.524(c)(1).
Under 19 CFR 351.509(a), the benefit is
equal to the difference between the
income tax that the company would
have paid absent the program and the
income tax the company paid under the
program. Therefore, to calculate the
benefit, we subtracted the amount of
2006 income tax Navneet paid under the
program from the amount of income tax
Navneet would have paid absent the
program.
To calculate the net subsidy rate, we
divided the benefit by Navneet’s total
sales for POR. On this basis, we
preliminarily calculated an ad valorem
rate of 0.47 percent.
II. Programs Preliminarily Determined
Not To Be Used
jlentini on PROD1PC65 with NOTICES
A. Programs Administered by the
Government of India
1. Duty Replenishment Certificate
Scheme.
2. Advance License Program.
3. Export Processing Zones and
Export Oriented Units.
4. Target Plus Scheme.
5. Export Processing Zones.
6. Income Tax Exemption Scheme
(Sections 10A, 10B, and 80HHC).
7. Market Development Assistance.
8. Status Certificate Program.
9. Market Access Initiative.
10. Loan guarantees from the GOI.
11. Exemption of Export Credit from
Interest Taxes.
12. Pre and Post-shipment Export
Financing.
VerDate Aug<31>2005
17:44 Oct 03, 2008
Jkt 217001
B. Programs Administered by the State
Governments
State Government of Gujarat
Programs:
1. State Government of Gujarat
Provided Tax Incentives.
State Government of Maharashtra
Programs:
2. Sales Tax Program from
Maharashtra.
3. Electricity Duty Exemptions Under
the State Government of Mahatrashtra’s
(SGM) Package Scheme of Incentives of
1993.
4. Refunds of Octroi Under the PSI of
1993, Maharashtra Industrial Policy
(MIP of 2001) and Maharashtra
Industrial Policy (MIP of 2006).
5. Infrastructure Subsidies to Mega
Projects.
6. Land for Less than Adequate
Remuneration (for firms operating in
areas outside of the Bombay and Pune
metropolitan areas).
7. Loan Guarantees Based on Octroi
Refunds by the SGM.
Preliminary Results of Review
In accordance with 19 CFR
351.221(b)(4)(i), we have calculated a
subsidy rate for Navneet for the period
February 15, 2006, through December
31, 2006. We preliminarily determine
the total estimated net countervailable
subsidy rate for Navneet is 8.75 percent
ad valorem for 2006.
If the final results of this review
remain the same as these preliminary
results, the Department intends to issue
assessment instructions to U.S. Customs
and Border Protection (CBP) 15 days
after the date of publication of the final
results of review. We will instruct CBP
to collect cash deposits for Navneet at
the CVD rate indicated above of the Free
On Board (F.O.B.) invoice price on all
shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the date of
publication of the final results of this
review. We will also instruct CBP to
continue to collect cash deposits for
non-reviewed companies at the most
recent company-specific or countrywide rate applicable to the company.
These deposit requirements, when
imposed, shall remain in effect until
further notice.
Public Comment
Pursuant to 19 CFR 351.224(b), the
Department will disclose to parties to
the proceeding any calculations
performed in connection with these
preliminary results not later than ten
days after the public announcement of
this notice. Pursuant to 19 CFR
351.309(c)(ii), interested parties may
PO 00000
Frm 00017
Fmt 4703
Sfmt 4703
submit written comments in response to
these preliminary results within 30 days
after the publication date of these
preliminary results. Rebuttal briefs,
limited to arguments raised in case
briefs, must be submitted no later than
five days after the time limit for filing
case briefs, unless otherwise specified
by the Department, pursuant to 19 CFR
351.309(d)(1). Parties who submit
argument in this proceeding are
requested to submit with the argument:
(1) A statement of the issues, (2) a brief
summary of the argument, and (3) a
table of statutes, regulations and case
citied. Parties submitting case and/or
rebuttal briefs are requested to provide
the Department copies of the public
version on disk. Case and rebuttal briefs
must be served on interested parties in
accordance with 19 CFR 351.303(f).
Also, pursuant to 19 CFR 351.310(c),
within 30 days of the date of publication
of this notice, interested parties may
request a public hearing on arguments
to be raised in the case and rebuttal
briefs. Unless the Secretary specifies
otherwise, the hearing, if requested, will
be held two days after the date for
submission of rebuttal briefs, that is, 37
days after the date of publication of
these preliminary results.
Pursuant to section 751(a)(3)(A) of the
Act and 19 CFR 351.213(h), the
Department will publish the final
results of this administrative review
within 120 days after the publication
date of preliminary results including the
results of its analysis of arguments made
in any case or rebuttal briefs.
These preliminary results of review
are issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of
the Act and 19 CFR 351.221(b)(4).
Dated: September 29, 2009.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E8–23565 Filed 10–3–08; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
Notice of Indirect Cost Rates for the
Office of National Marine Sanctuaries
for Fiscal Year 2006
National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
AGENCY:
Notice of indirect cost rates for
the Office of National Marine
Sanctuaries for Fiscal Year 2006.
ACTION:
E:\FR\FM\06OCN1.SGM
06OCN1
]]>Agencies
[Federal Register Volume 73, Number 194 (Monday, October 6, 2008)]
[Notices]
[Pages 58121-58126]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-23565]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-844]
Certain Lined Paper Products From India: Notice of Preliminary
Results of Countervailing Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an
administrative review of the countervailing duty (CVD) order on certain
lined paper products from India for the period February 15, 2006,
through December 31, 2006, the period of review (POR).\1\ For
information on the net subsidy rate for the reviewed company, Navneet
Publications (India) Limited (Navneet), see the ``Preliminary Results
of Review'' section of this notice. Interested parties are invited to
comment on these preliminary results. See the ``Public Comment''
section of this notice.
---------------------------------------------------------------------------
\1\ Pursuant to 19 CFR 351.213(e)(2)(ii), because the Department
received Navneet's request during the first anniversary month after
publication of the order, this administrative review covers entries
from February 15, 2006, the date of suspension of liquidation
through December 31, 2006, the end of the most recently completed
calendar year. (The date of suspension of liquidation corresponds to
the publication in the Federal Register of the Notice of Preliminary
Affirmative Countervailing Duty Determination and Preliminary
Negative Critical Circumstances Determination: Certain Lined Paper
Products from India, 71 FR 7916 (February 15, 2006) (Preliminary
Determination of Lined Paper Investigation). However, for purposes
of this administrative review, we will analyze data corresponding to
calendar year 2006 (January 1, 2006, through December 31, 2006) to
determine the subsidy rate for exports of subject merchandise made
during the period in which liquidation of entries was suspended.
---------------------------------------------------------------------------
DATES: Effective Date: October 6, 2008.
FOR FURTHER INFORMATION CONTACT: Jolanta Lawska or John Conniff, AD/CVD
Operations, Office 3, Import Administration, International Trade
Administration, U.S. Department of Commerce, Room 4014, 14th Street and
Constitution Avenue, NW., Washington,
[[Page 58122]]
DC 20230; telephone: (202) 482-8362 or (202) 482-1009, respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 28, 2006, the Department published in the Federal
Register the CVD order on certain lined paper products from India. See
Notice of Amended Final Determination of Sales at Less Than Fair Value:
Certain Lined Paper Products from the People's Republic of China;
Notice of Antidumping Duty Orders: Certain Lined Paper Products from
India, Indonesia and the People's Republic of China; and Notice of
Countervailing Duty Orders: Certain Lined Paper Products from India and
Indonesia, 71 FR 56949 (September 28, 2006). On September 4, 2007, the
Department published a notice of opportunity to request an
administrative review of this CVD order. See Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation;
Opportunity to Request Administrative Review, 72 FR 50657 (September 4,
2007) (Opportunity to Request Review).\2\ On September 21, 2007, we
received a timely request for review from Navneet, an Indian producer
and exporter of subject merchandise.
---------------------------------------------------------------------------
\2\ On October 1, 2007, we published a correction to the
Opportunity to Request Review to correct the POR. See Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation;
Opportunity to Request Administrative Review, 72 FR 55741 (October
1, 2007).
---------------------------------------------------------------------------
On October 31, 2007, the Department initiated an administrative
review of the CVD order on certain lined paper products from India,
covering the period February 15, 2006, through December 31, 2006. See
Initiation of Antidumping and Countervailing Duty Administrative
Reviews, 72 FR 61621 (October 31, 2007).\3\
---------------------------------------------------------------------------
\3\ In the notice of initiation published October 31, 2007, we
listed the POR for certain lined paper products from India
incorrectly. The correct POR is listed above.
---------------------------------------------------------------------------
The Department issued a questionnaire to the Government of India
(GOI) and Navneet (collectively, the respondents) on November 6, 2007.
We received a questionnaire response from Navneet on December 8, 2007,
and from the GOI on December 13, 2007. Between March 31, 2008, and July
9, 2008, we issued supplemental questionnaires to the respondents
regarding programs addressed in the initial CVD questionnaire and
received responses. Between April 8, 2008, and July 17, 2008 we
received supplemental questionnaire responses from the GOI and Navneet.
On January 17, 2008, petitioners \4\ submitted information on a new
subsidy allegation. On April 30, 2008, the Department initiated an
investigation of the new subsidy allegation. See the Memorandum to
Melissa G. Skinner, Director, Office 3, from Jolanta Lawska, Case
Analyst, entitled, ``New Subsidy Allegations for Navneet Publications
(India), Ltd. (Navneet),'' a public document on file in the Central
Records Unit (CRU), room 1117 of the main Department building. On May
6, 2008, we issued a questionnaire on this new subsidy allegation to
Navneet and the GOI. On May 19, 2008, and June 3, 2008, we received
responses to the new subsidy questionnaires from the GOI and Navneet,
respectively. On July 8, 2008, we issued a supplemental questionnaire
to Navneet. On July 17, 2008, we received a Navneet's response.
---------------------------------------------------------------------------
\4\ Petitioners are the Association of American School Paper
Suppliers and its members Mead Westvaco Corporation, Top Flight
Inc., and Norcom Inc.
---------------------------------------------------------------------------
On May 16, 2008, the Department published in the Federal Register
an extension of the deadline for the preliminary results of this review
to no later than September 29, 2008. See Certain Lined Paper Products
from India: Extension of Time Limit for Preliminary Results of
Countervailing Duty Administrative Review, 73 FR 28431 (May 16, 2008).
In accordance with 19 CFR 351.213(b), this review covers only those
producers or exporters for which a review was specifically requested.
The company subject to this review is Navneet. This review covers 15
federal programs and 7 state programs.
Scope of Order
The scope of this order includes certain lined paper products,
typically school supplies, composed of or including paper that
incorporates straight horizontal and/or vertical lines on ten or more
paper sheets, 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
the order 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 order 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;
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: Preprinted business forms, lined invoice pads and paper, mailing
and address labels, manifests, and shipping log books;
[[Page 58123]]
Lined continuous computer paper;
Boxed or packaged writing stationery (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,\5\
measuring 6 inches by 9 inches;
---------------------------------------------------------------------------
\5\ ``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.
---------------------------------------------------------------------------
Also excluded from the scope of this order 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; \6\
---------------------------------------------------------------------------
\6\ 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.\7\
---------------------------------------------------------------------------
\7\ Products found to be bearing an invalidly licensed or used
trademark are not excluded from the scope.
---------------------------------------------------------------------------
FiveStar R 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 R Advance TM.\8\
---------------------------------------------------------------------------
\8\ 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 a 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.\9\
---------------------------------------------------------------------------
\9\ Products found to be bearing an invalidly licensed or used
trademark are not excluded from the scope.
---------------------------------------------------------------------------
Merchandise subject to this order is typically imported under
headings 4820.10.2050, 4810.22.5044, 4811.90.9090, 4820.10.2010,
4820.10.2020, and 4820.10.4001 of the Harmonized Tariff Schedule of the
United States (HTSUS). The HTSUS headings are provided for convenience
and customs purposes; however, the written description of the scope of
this order is dispositive.
Subsidies Valuation Information
I. Benchmarks for Loans and Discount Rates
In these preliminary results, we require the use of rupee-
denominated long-term loans for purposes of our benchmark discount rate
and long-term benchmark rate. Pursuant to 19 CFR 351.524(d)(3)(i), the
Department will use, when available, the company-specific cost of long-
term, fixed-rate loans (excluding loans deemed to be countervailable
subsidies) as a discount rate for allocating non-recurring benefits
over time. Similarly, pursuant to 19 CFR 351.505(a), the Department
will normally use the actual cost of comparable commercial borrowing by
a company as a loan benchmark, when available. According to 19 CFR
351.505(a)(2)(i), a comparable commercial loan is defined as one that,
when compared to the loan being examined, has similarities in the
structure of the loan (e.g., fixed interest rate vs. variable interest
rate), the maturity of the loan (e.g., short-term vs. long-term), and
the currency in which the loan is denominated.
However, when there are no comparable commercial loans, the
Department may use a national average interest rate as a benchmark
discount rate and long-term benchmark rate, pursuant to 19 CFR
351.524(d)(3)(i)(B) and 19 CFR 351.505(a)(3)(ii), respectively. In
addition, 19 CFR 351.505(a)(2)(ii) states that the Department will not
consider a loan provided by a government-owned special purpose bank for
purposes of selecting a benchmark rate.
Navneet reported rupee-denominated and dollar-denominated
commercial short-term loans that were outstanding during the POR.\10\
However, Navneet did not report any comparable long-term loans from
commercial banks during the years under consideration that the
Department could use for our benchmark discount rate and long-term
benchmark rate. Therefore, in accordance with 19 CFR
351.524(d)(3)(i)(B) and 19 CFR 351.505(a)(3)(ii), we used India's prime
lending rate (PLR) as published by the Reserve Bank of India (RBI), as
our long-term benchmark interest rate. The use of the PLR is consistent
with the Department's practice in prior Indian proceedings. See, e.g.,
Final Results of Countervailing Duty Administrative Review: Certain
Hot-Rolled Carbon Steel Flat Products from India, 69 FR 26549
[[Page 58124]]
(May 13, 2004) (Final Results of First HRC Review), and accompanying
Issues and Decision Memorandum (Final Results of First HRC Review
Decision Memorandum) at I.B. ``Benchmarks for Loans and Discount
Rate.''
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\10\ In these preliminary results we are examining a
countervailable program that requires the use of long-term
benchmarks.
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II. Allocation Period
Under 19 CFR 351.524(d)(2)(i), we presume the allocation period for
non-recurring subsidies to be the average useful life (AUL) of
renewable physical assets for the industry concerned, as listed in the
Internal Revenue Service's 1977 Class Life Asset Depreciation Range
System (IRS tables), as updated by the U.S. Department of the Treasury.
This presumption will apply unless a party claims and establishes that
the IRS tables do not reasonably reflect the AUL of the renewable
physical assets for the company or industry under review, and the party
can establish that the difference between the company-specific or
country-wide AUL for the industry under review is significant, pursuant
to 19 CFR 351.524(d)(2)(i). For assets used to manufacture products
such as lined paper products, the IRS tables prescribe an AUL of 15
years.
In its questionnaire responses, Navneet did not rebut the
regulatory presumption of a 15-year AUL. We, therefore, used a 15-year
AUL to allocate any non-recurring subsidies for purposes of these
preliminary results.
Further, for non-recurring subsidies, we have applied the ``0.5
percent test'' described in 19 CFR 351.524(b)(2). Under this test, we
compare the amount of subsidies approved under a given program in a
particular year to sales (total sales or total export sales, as
appropriate) for the same year. If the amount of subsidies is less than
0.5 percent of the relevant sales, then the benefits are allocated to
the year of receipt rather than allocated over the AUL period.
Analysis Of Programs
I. Programs Preliminarily Determined To Be Countervailable
1. Duty Entitlement Passbook Scheme (DEPS)
India's DEPS was enacted on April 1, 1997, as a successor program
to the Passbook Scheme (PBS). DEPS enables exporting companies to earn
import duty exemptions in the form of passbook credits rather than
cash. All exporters are eligible to earn DEPS credits on a post-export
basis, provided that the GOI has established a standard input/output
norm (SION) for the exported product. DEPS credits can be used for any
subsequent imports, regardless of whether they are consumed in the
production of an export product. DEPS credits are valid for 12 months
and are transferable after the foreign exchange is realized from the
export sales on which the DEPS credits are earned. With respect to
subject merchandise, the GOI has established a SION for the lined paper
industry.
The Department has previously determined that DEPS is a
countervailable program. See, e.g., Notice of Final Affirmative
Countervailing Duty Determination and Final Negative Critical
Circumstances Determination: Certain Lined Paper Products from India,
71 FR 45034 (August 8, 2006) (Final Determination of Lined Paper
Investigation), and accompanying Issues and Decision Memorandum (Final
Determination of Lined Paper Investigation Decision Memorandum) at IV.
A.3. ``Duty Entitlement Passbook Scheme.'' Specifically, we determined
that under DEPS, a financial contribution, as defined under section
771(5)(D)(ii) of the Tariff Act of 1930, as amended (the Act), is
provided because (1) the GOI provides credits for the future payment of
import duties, and (2) the GOI does not have in place and does not
apply a system that is reasonable and effective for determining what
imports are consumed in the production of the exported product and in
what amounts. Id. Therefore, under section 771(5)(E) of the Act and 19
CFR 351.519(a)(4), we determined that the entire amount of import duty
exemption earned during the POR constitutes a benefit. We also found
DEPS to be specific under section 771(5A)(A) of the Act because the
program is limited to exporters. See Final Determination of Lined Paper
Investigation Decision Memorandum at IV.A.3. ``Duty Entitlement
Passbook Scheme.'' No new information or evidence of changed
circumstances has been presented in this review to warrant
reconsideration of the Department's finding.
We have previously determined that this program provides a
recurring benefit under 19 CFR 351.519(c). See, e.g., Preliminary
Determination of Lined Paper Investigation, 71 FR 7916, 7920 (unchanged
in Final Determination of Lined Paper Investigation). See also 19 CFR
351.524(c). In accordance with past practice and pursuant to 19 CFR
351.519(b)(2), we preliminarily find that benefits from the DEPS
program are conferred as of the date of exportation of the shipment for
which the DEPS credits are earned. See, e.g., Final Affirmative
Countervailing Duty Determination: Certain Cut-to-Length Carbon-Quality
Steel Plate from India, 64 FR 73131 (December 29, 1999) (Final
Determination of CTL Plate Investigation), at Comment 4 (explaining
that for programs such as the DEPS, ``We calculate the benefit on an
`earned' basis (that is upon export) where it is provided as a
percentage of the value of the exported merchandise on a shipment-by-
shipment basis and the exact amount of the exemption is known'').
To calculate the benefit, we summed the credits that Navneet earned
during the POR on each export shipment to the United States during the
POR. We then subtracted as an allowable offset the actual amount of
application fees paid for each license in accordance with section
771(6) of the Act.
Because DEPS credits are earned on a shipment-by-shipment basis, in
calculating the net subsidy rate under the DEPS program, we normally
divide the DEPS credits, or benefits, earned on exports of subject
merchandise to the United States during the POR by the total sales of
subject merchandise to the United States during the POR. However, in
the case of Navneet, the U.S. sales on which the company earned the
DEPS credits during the POR pertained to both subject and non-subject
merchandise. Therefore, in these preliminary results, we calculated the
net subsidy rate by dividing the benefit by Navneet's total export
sales to the United States during the POR. See, e.g., Final
Determination of Lined Paper Investigation Decision Memorandum at
IV.A.3. ``Duty Entitlement Passbook Scheme.''
On this basis, we preliminarily calculate the net countervailable
subsidy from the DEPS program to be 6.93 percent ad valorem.
2. Export Promotion Capital Goods Scheme (EPCGS)
The EPCGS provides for a reduction or exemption of customs duties
and an exemption from excise taxes on imports of capital goods. Under
this program, producers may import capital equipment at a reduced
customs duty, subject to an export obligation equal to eight times the
duty saved to be fulfilled over a period of eight years (12 years where
the CIF value is Rs. 100 Crore) \11\ from the date the license was
issued. For failure to meet the export obligation, a company is subject
to payment of all or part of the duty reduction, depending on the
extent of the export shortfall, plus penalty interest.
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\11\ A crore is equal to 10,000,000 rupees.
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The Department has previously determined that the import duty
reductions provided under the EPCGS constitute a countervailable export
subsidy. See, e.g., Polyethylene
[[Page 58125]]
Terephthalate Film, Sheet, and Strip from India: Final Results of
Countervailing Duty Administrative Review, 72 FR 6530 (February 12,
2007) (Final Results of 3rd PET Film Review), and accompanying Issues
and Decision Memorandum (Final Results of 3rd PET Film Review Decision
Memorandum) at ``Export Promotion Capital Good Scheme.'' See also Final
Determination of Lined Paper Investigation Decision Memorandum at
IV.A.2. ``Export Promotion Capital Goods Scheme.''
Specifically, the Department has found that under the EPCGS
program, the GOI provides a financial contribution under section
771(5)(D)(ii) of Act, in the form of revenue foregone that otherwise
would be due. See, e.g., Final Determination of Lined Paper
Investigation Decision Memorandum at IV.A.2. ``Export Promotion Capital
Goods Scheme.'' The Department also found this program to be specific
under section 771(5A)(A) of the Act because it is contingent upon
export performance. We further found that the EPCGS conferred a benefit
under section 771(5)(E) of the Act. Id. No new information or evidence
of changed circumstances has been provided with respect to this
program. Therefore, we continue to find that import duty reductions
provided under the EPCGS are countervailable export subsidies.
Navneet reported that it received import duty exemptions under the
EPCGS program. For these preliminary results, we have determined the
benefit for Navneet in accordance with our findings and treatment of
this program in other Indian CVD proceedings. See, e.g., Final Results
of 3rd PET Film Review Decision Memorandum at ``Export Promotion
Capital Good Scheme;'' See also Final Determination of Lined Paper
Investigation and Final Determination of Lined Paper Investigation
Decision Memorandum at IV.A.2. ``Export Promotion Capital Goods
Scheme.'' Under the Department's approach, there are two types of
benefits under the EPCGS program. The first benefit is the amount of
unpaid duties that would have to be paid to the GOI if the export
requirements are not met. The repayment of this liability is contingent
on subsequent events, and in such instances, it is the Department's
practice to treat any balance on an unpaid liability as an interest-
free loan. See 19 CFR 351.505(d)(1).
Further, consistent with our policy, absent acknowledgment in the
form of an official letter from the GOI that the liability has been
eliminated, we treat benefits from these licenses as contingent
liabilities. See, e.g., Final Results of 3rd PET Film Review Decision
Memorandum at ``Export Promotion Capital Goods Scheme;'' see also Final
Determination of Lined Paper Investigation Decision Memorandum at
IV.A.2. ``Export Promotion Capital Goods Scheme.''
For those EPCGS licenses for which Navneet has not yet met the
export obligations specified in the licenses by the end of the POR, we
preliminarily find that the company had outstanding contingent
liabilities during the POR. We further determine that the amount of the
contingent liability will be treated as an interest-free loan in the
amount of the import duty reduction or exemption.
Accordingly, for those unpaid duties for which Navneet has yet to
fulfill their export obligations, we preliminarily find the benefit to
be the interest that Navneet would have paid during the POR had it
borrowed the full amount of the duty reduction at the time of import.
Pursuant to 19 CFR 351.505(d)(1), we used a long-term interest rate as
our benchmark to calculate the benefit of a contingent liability
interest-free loan because the event upon which repayment of the duties
depends (i.e., the date of expiration of the time period for the
company to fulfill its export commitments) occurs at a point in time
more than one year after the date the capital goods were imported.
Specifically, we used the long-term benchmark interest rates as
described in the ``Subsidies Valuation'' section, supra. The rate used
corresponds to the year in which Navneet imported the items under the
program.
The second benefit is the waiver of duty on imports of capital
equipment covered by those EPCGS licenses for which the export
requirement has been met. For certain licenses, Navneet reported that
it had completed its export obligation under the EPCGS program, thereby
eliminating the outstanding contingent liabilities on the corresponding
duty exemptions. However, as explained above, in keeping with our
practice, we have only accepted those claims that are accompanied by
official letters from the GOI indicating that the company met its
export obligation. Thus, for purposes of calculating the benefit, we
treated licenses without accompanying letters from the GOI
demonstrating satisfaction of the company's export obligations as
contingent liabilities.
For those licenses for which Navneet demonstrated that it had
fulfilled the export obligations, we followed our methodology set forth
in the Final Determination of Lined Paper Investigation and treated the
import duty savings as grants received in the year in which the GOI
waived the contingent liability on the import duty exemptions. See,
e.g., Final Determination of Lined Paper Investigation Decision
Memorandum. In accordance with 19 CFR 351.524(b)(2), for each of the
grant amounts related to the particular license, we performed the ``0.5
percent test'' to determine whether the benefit should be fully
expensed in the year of receipt or allocated over the AUL used in this
proceeding pursuant to the grant allocation methodology set forth in 19
CFR 351.524(d)(1). In all cases, the grant amounts of the licenses
exceeded 0.5 percent of Navneet's relevant sales. Therefore, we
allocated the grant amounts over time using the methodology set forth
under 19 CFR 351.524(d)(i).
To calculate the subsidy rate for this program, we summed the
benefits from the waived licenses, which we determined confer a benefit
in the form of a grant, and from those licenses that have yet to be
waived, which we determined confer a benefit in the form of contingent
liability loans. We then divided the total benefits received by
Navneet's total export sales for the POR. On this basis, we
preliminarily determine the net countervailable subsidy from this
program to be 1.35 percent ad valorem.
3. The Government of India's Income Deduction Program (80IB Tax
Program)
Pursuant to the Income Tax Act of 1961, as amended by the Finance
Act 2007, Chapter VIA, 80IB(4) (India) (2007), the GOI has implemented
a tax policy to foster economic development of certain ``industrially
backward'' regions in India. The tax exemptions allowed under the 80IB
Tax Program are only available to companies located in designated
geographical areas (referred to as ``backward areas'' by the GOI)
within India.\12\ Under the 80IB Tax Program, the GOI allows domestic
companies that invest in economically less developed areas of India to
reduce their corporate taxable income by up 100 percent of profit
gained at production facilities located in designated geographical
areas for a period of five years and by up to 30 percent for the next
five years. The benefit is applied to the gross total income of the tax
payer and is claimed when a company files its income tax return at the
end of every financial year.
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\12\ ``Industrially backward'' states are states and union
territories specified in the Eight Schedule of the Indian tax code.
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We preliminarily determine that the 80IB Tax Program is a
countervailable program. Specifically, we preliminarily
[[Page 58126]]
determine that a financial contribution is provided under this program,
in the form of foregone tax revenue, within the meaning of section
771(5)(D)(ii) of the Act. We further preliminarily determine that the
GOI provided a benefit under this program in an amount equal to the tax
savings under section 771(5)(E) of the Act. In addition, we
preliminarily determine that the program is limited to enterprises in
geographically limited areas and, therefore, is specific within the
meaning of section 771(5A)(D)(iv) of the Act.
One of Navneet's manufacturing plants operates in a region that is
designated by the GOI as an ``industrially backward'' territory of
India and therefore, the company is eligible for the tax incentives
described above. Navneet reported that it received tax deductions under
this program during the POR on its 2006 corporate income tax return,
which was the return filed by the company during the POR. The
Department typically treats a tax deduction as a recurring benefit in
accordance with 19 CFR 351.524(c)(1). Under 19 CFR 351.509(a), the
benefit is equal to the difference between the income tax that the
company would have paid absent the program and the income tax the
company paid under the program. Therefore, to calculate the benefit, we
subtracted the amount of 2006 income tax Navneet paid under the program
from the amount of income tax Navneet would have paid absent the
program.
To calculate the net subsidy rate, we divided the benefit by
Navneet's total sales for POR. On this basis, we preliminarily
calculated an ad valorem rate of 0.47 percent.
II. Programs Preliminarily Determined Not To Be Used
A. Programs Administered by the Government of India
1. Duty Replenishment Certificate Scheme.
2. Advance License Program.
3. Export Processing Zones and Export Oriented Units.
4. Target Plus Scheme.
5. Export Processing Zones.
6. Income Tax Exemption Scheme (Sections 10A, 10B, and 80HHC).
7. Market Development Assistance.
8. Status Certificate Program.
9. Market Access Initiative.
10. Loan guarantees from the GOI.
11. Exemption of Export Credit from Interest Taxes.
12. Pre and Post-shipment Export Financing.
B. Programs Administered by the State Governments
State Government of Gujarat Programs:
1. State Government of Gujarat Provided Tax Incentives.
State Government of Maharashtra Programs:
2. Sales Tax Program from Maharashtra.
3. Electricity Duty Exemptions Under the State Government of
Mahatrashtra's (SGM) Package Scheme of Incentives of 1993.
4. Refunds of Octroi Under the PSI of 1993, Maharashtra Industrial
Policy (MIP of 2001) and Maharashtra Industrial Policy (MIP of 2006).
5. Infrastructure Subsidies to Mega Projects.
6. Land for Less than Adequate Remuneration (for firms operating in
areas outside of the Bombay and Pune metropolitan areas).
7. Loan Guarantees Based on Octroi Refunds by the SGM.
Preliminary Results of Review
In accordance with 19 CFR 351.221(b)(4)(i), we have calculated a
subsidy rate for Navneet for the period February 15, 2006, through
December 31, 2006. We preliminarily determine the total estimated net
countervailable subsidy rate for Navneet is 8.75 percent ad valorem for
2006.
If the final results of this review remain the same as these
preliminary results, the Department intends to issue assessment
instructions to U.S. Customs and Border Protection (CBP) 15 days after
the date of publication of the final results of review. We will
instruct CBP to collect cash deposits for Navneet at the CVD rate
indicated above of the Free On Board (F.O.B.) invoice price on all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the date of publication of the
final results of this review. We will also instruct CBP to continue to
collect cash deposits for non-reviewed companies at the most recent
company-specific or country-wide rate applicable to the company.
These deposit requirements, when imposed, shall remain in effect
until further notice.
Public Comment
Pursuant to 19 CFR 351.224(b), the Department will disclose to
parties to the proceeding any calculations performed in connection with
these preliminary results not later than ten days after the public
announcement of this notice. Pursuant to 19 CFR 351.309(c)(ii),
interested parties may submit written comments in response to these
preliminary results within 30 days after the publication date of these
preliminary results. Rebuttal briefs, limited to arguments raised in
case briefs, must be submitted no later than five days after the time
limit for filing case briefs, unless otherwise specified by the
Department, pursuant to 19 CFR 351.309(d)(1). Parties who submit
argument in this proceeding are requested to submit with the argument:
(1) A statement of the issues, (2) a brief summary of the argument, and
(3) a table of statutes, regulations and case citied. Parties
submitting case and/or rebuttal briefs are requested to provide the
Department copies of the public version on disk. Case and rebuttal
briefs must be served on interested parties in accordance with 19 CFR
351.303(f). Also, pursuant to 19 CFR 351.310(c), within 30 days of the
date of publication of this notice, interested parties may request a
public hearing on arguments to be raised in the case and rebuttal
briefs. Unless the Secretary specifies otherwise, the hearing, if
requested, will be held two days after the date for submission of
rebuttal briefs, that is, 37 days after the date of publication of
these preliminary results.
Pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h),
the Department will publish the final results of this administrative
review within 120 days after the publication date of preliminary
results including the results of its analysis of arguments made in any
case or rebuttal briefs.
These preliminary results of review are issued and published in
accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR
351.221(b)(4).
Dated: September 29, 2009.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-23565 Filed 10-3-08; 8:45 am]
BILLING CODE 3510-DS-P
