Certain Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses From Indonesia: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 24885-24892 [2010-10682]
Download as PDF
Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices
Assessment
The Department will instruct U.S.
Customs and Border Protection (CBP) to
assess countervailing duties on all
appropriate entries. For Zhongce and
TUTRIC, countervailing duties shall be
assessed at rates equal to the cash
deposit or bonding rate of the estimated
countervailing duties required at the
time of entry, or withdrawal from
warehouse, for consumption, in
accordance with 19 CFR
351.212(c)(1)(i). The Department
intends to issue appropriate assessment
instructions directly to CBP 15 days
after publication of this notice.
Notification Regarding Administrative
Protective Order
This notice serves as a final reminder
to parties subject to administrative
protective orders (APO) of their
responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3), which
continues to govern business
proprietary information in this segment
of the proceeding. Timely written
notification of the return/destruction of
APO materials or conversion to judicial
protective order is hereby requested.
Failure to comply with the regulations
and terms of an APO is a violation
which is subject to sanction.
This notice is issued and published in
accordance with sections 751(a)(1) and
777(i)(1) of the Act, and 19 CFR
351.213(d)(4).
Dated: April 29, 2010.
Edward C. Yang,
Acting Deputy Assistant Secretary for
Antidumping and Countervailing Duty
Operations.
[FR Doc. 2010–10707 Filed 5–5–10; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–560–823]
mstockstill on DSKH9S0YB1PROD with NOTICES
Certain Coated Paper Suitable for
High-Quality Print Graphics Using
Sheet-Fed Presses From Indonesia:
Preliminary Determination of Sales at
Less Than Fair Value and
Postponement of Final Determination
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: May 6, 2010.
SUMMARY: The Department of Commerce
(the Department) preliminarily
determines that certain coated paper
suitable for high-quality print graphics
VerDate Mar<15>2010
16:53 May 05, 2010
Jkt 220001
using sheet-fed presses (coated paper)
from Indonesia is being, or is likely to
be, sold in the United States at less than
fair value (LTFV), as provided in section
733(b) of the Tariff Act of 1930, as
amended (the Act). The estimated
dumping margins are listed in the
‘‘Suspension of Liquidation’’ section of
this notice. Interested parties are invited
to comment on this preliminary
determination. Pursuant to requests
from interested parties, we are
postponing for 60 days the final
determination and extending
provisional measures from a four-month
period to not more than six months.
Accordingly, we will make our final
determination not later than 135 days
after publication of the preliminary
determination.
FOR FURTHER INFORMATION CONTACT:
Gemal Brangman or Brian Smith,
AD/CVD Operations, Office 2, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–3773 and (202)
482–1766, respectively.
SUPPLEMENTARY INFORMATION:
Background
In its initiation of this investigation
(see Certain Coated Paper Suitable for
High-Quality Print Graphics Using
Sheet-Fed Presses From Indonesia and
the People’s Republic of China:
Initiation of Antidumping Duty
Investigations, 74 FR 53710 (October 20,
2009) (Initiation Notice)), the
Department stated that it had selected
PT. Pabrik Kertas Tjiwi Kimia Tbk. (TK)
and PT. Pindo Deli Pulp and Paper (PD)
as the mandatory respondents in this
investigation. See Initiation Notice, 74
FR 53714. Since the Initiation Notice,
the following events have occurred.
The Department set aside a period of
time for parties to raise issues regarding
product coverage and encouraged all
parties to submit comments within 20
calendar days of publication of the
Initiation Notice. See Initiation Notice,
74 FR at 53710; see also Antidumping
Duties; Countervailing Duties; Final
Rule, 62 FR 27296, 27323 (May 19,
1997). We received several scope
comment submissions from interested
parties during the period November
2009 through April 2010. For further
details, see ‘‘Scope Comments’’ section
of this notice. The Department also set
aside a time for parties to comment on
product characteristics for use in the
antidumping questionnaire. We
received such comments from the
respondents on November 2, 2009, and
PO 00000
Frm 00021
Fmt 4703
Sfmt 4703
24885
from the petitioners1 on November 10,
2009.
On November 17, 2009, the U.S.
International Trade Commission (ITC)
preliminarily determined that there is a
reasonable indication that imports of
coated paper from Indonesia are
materially injuring the U.S. industry
and notified the Department of its
findings. See Certain Coated Paper
Suitable for High-Quality Print Graphics
Using Sheet-Fed Presses from China and
Indonesia, Investigation Nos. 701–TA–
470–471 and 731–TA–1169–1170
(Preliminary), 74 FR 61174 (November
23, 2009).
On November 20, 2009, we issued PD
and TK the antidumping duty
questionnaire.
On December 16, 2009, we issued a
memorandum detailing the reasons why
it would not be practicable in this
investigation to examine individually
more than the two Indonesian
producers/exporters of coated paper
named in the Initiation Notice. See
Memorandum from James Maeder,
Office Director, to John M. Andersen,
Acting Deputy Assistant Secretary,
entitled, ‘‘Certain Coated Paper Suitable
for High-Quality Print Graphics Using
Sheet-Fed Presses from Indonesia:
Selection of Respondents,’’ dated
December 16, 2009 (Respondent
Selection Memo).
On December 22, 2009, PD and TK
submitted a consolidated response to
section A (i.e., the section covering
general information about the company)
of the antidumping duty questionnaire.
In this submission, PD and TK indicated
that not only are they affiliated with
each other, but they are also affiliated
with a third company that produces
coated paper in Indonesia, PT Indah
Kiat Pulp and Paper Tbk. (IK). Based on
an analysis of the facts of record, as
discussed in the ‘‘Collapsing’’ section of
this notice below, we find that it is
appropriate to treat these companies as
a single entity, hereafter referred to as
PD/TK/IK.
On January 12, 2010, PD and TK
submitted their responses to sections B
(i.e., the section covering comparisonmarket sales) and C (i.e., the section
covering U.S. sales) of the antidumping
duty questionnaire). On January 19,
2010, PD and TK submitted their
response to section D (i.e., the section
covering cost of production (COP) and
constructed value (CV)) of the
1 The petitioners include the following
companies: Appleton Coated LLC, NewPage
Corporation, S.D. Warren Company d/b/a/ Sappi
Fine Paper North America, and the United Steel,
Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers International
Union.
E:\FR\FM\06MYN1.SGM
06MYN1
mstockstill on DSKH9S0YB1PROD with NOTICES
24886
Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices
antidumping duty questionnaire. These
responses did not include sales and cost
data for multi-ply coated paper products
the respondents produced and sold
during the POI. Therefore, on January
25, 2010, we requested that PD/TK/IK
provide such data, if the multi-ply
coated paper they produced and sold
during the POI met the description of
the merchandise in the scope, pending
the Department’s ruling on the matter.
PD/TK/IK provided the requisite data on
multi-ply coated paper on February 16,
2010.
On January 22, 2010, the petitioners
made a timely request pursuant to
section 733(c)(1)(A) of the Act and 19
CFR 351.205(e) for a 50-day
postponement of the preliminary
determination. Therefore, pursuant to
section 733(c)(1)(A) of the Act, on
February 4, 2010, the Department
postponed the preliminary
determination of this investigation until
April 21, 2010. See Certain Coated
Paper Suitable for High-Quality Print
Graphics Using Sheet-Fed Presses From
Indonesia and the People’s Republic of
China: Postponement of Preliminary
Determinations of Antidumping Duty
Investigations, 75 FR 7447 (February 19,
2010). As explained in the
memorandum from the Deputy
Assistant Secretary for Import
Administration, the Department has
exercised its discretion to toll deadlines
for the duration of the closure of the
Federal Government from February 5,
through February 12, 2010. Thus, all
deadlines in this proceeding have been
extended by seven days. The revised
deadline for the preliminary
determination of this investigation is
now April 28, 2010. See Memorandum
to the file regarding ‘‘Tolling of
Administrative Deadlines As a Result of
the Government Closure During the
Recent Snowstorm,’’ dated February 12,
2010.
On March 2, 2010, the Department
issued PD/TK/IK a supplemental
questionnaire concerning its responses
to sections A, B, and C of the
antidumping questionnaire, and
received PD/TK/IK’s responses to this
supplemental questionnaire during
March and April 2010. On March 12,
2010, the Department issued PD/TK/IK
a section D supplemental questionnaire
and received a response to this
questionnaire on April 2 and 9, 2010.
The Department requested additional
information from PD/TK/IK regarding
its responses to sections A through D of
the questionnaire in March and April
2010. PD/TK/IK provided the requested
information pertaining to sections A
through C of the questionnaire, and
some of the requested information
VerDate Mar<15>2010
16:53 May 05, 2010
Jkt 220001
pertaining to section D of the
questionnaire during the same months.
The Department expects to receive the
remaining information requested with
respect to section D in May 2010.
On March 12, 2010, the petitioners
filed an allegation of targeted dumping
by PD/TK/IK. See the ‘‘Targeted
Dumping Allegation’’ section below.
On April 6, 2010, the petitioners
submitted comments for consideration
with respect to the preliminary
determination.
On April 13, 2010, PD/TK/TK
requested that in the event of an
affirmative preliminary determination
in this investigation, the Department: (1)
Postpone its final determination by 60
days in accordance with 735(a)(2)(A) of
the Act and 19 CFR 351.210(b)(2)(ii);
and 2) extend the application of the
provisional measures prescribed under
19 CFR 351.210(e)(2) from a four-month
period to a six-month period.
Similarly, on April 16, 2010, the
petitioners requested that in the event of
a negative preliminary determination in
this investigation, the Department
postpone its final determination by 60
days in accordance with 735(a)(2)(B) of
the Act and 19 CFR 351.210(b)(2)(i). For
further discussion, see the
‘‘Postponement of Final Determination
and Extension of Provisional Measures’’
section of this notice, below.
Period of Investigation
The period of investigation (POI) is
July 1, 2008, to June 30, 2009. This
period corresponds to the four most
recent fiscal quarters prior to the month
of the filing of the petition.
Scope of Investigation
The merchandise covered by this
investigation includes certain coated
paper and paperboard 2 in sheets
suitable for high quality print graphics
using sheet-fed presses; coated on one
or both sides with kaolin (China or other
clay), calcium carbonate, titanium
dioxide, and/or other inorganic
substances; with or without a binder;
having a GE brightness level of 80 or
higher; 3 weighing not more than 340
grams per square meter; whether gloss
2 ‘‘ ‘Paperboard’ refers to Certain Coated Paper that
is heavier, thicker and more rigid than coated paper
which otherwise meets the product description. In
the context of Certain Coated Paper, paperboard
typically is referred to as ‘cover,’ to distinguish it
from ‘text.’ ’’
3 One of the key measurements of any grade of
paper is brightness. Generally speaking, the brighter
the paper the better the contrast between the paper
and the ink. Brightness is measured using a GE
Reflectance Scale, which measures the reflection of
light off of a grade of paper. One is the lowest
reflection, or what would be given to a totally black
grade, and 100 is the brightest measured grade.
PO 00000
Frm 00022
Fmt 4703
Sfmt 4703
grade, satin grade, matte grade, dull
grade, or any other grade of finish;
whether or not surface-colored, surfacedecorated, printed (except as described
below), embossed, or perforated; and
irrespective of dimensions (‘‘Certain
Coated Paper’’).
Certain Coated Paper includes (a)
coated free sheet paper and paperboard
that meets this scope definition; (b)
coated groundwood paper and
paperboard produced from bleached
chemi-thermo-mechanical pulp
(‘‘BCTMP’’) that meets this scope
definition; and (c) any other coated
paper and paperboard that meets this
scope definition.
Certain Coated Paper is typically (but
not exclusively) used for printing multicolored graphics for catalogues, books,
magazines, envelopes, labels and wraps,
greeting cards, and other commercial
printing applications requiring high
quality print graphics.
Specifically excluded from the scope
are imports of paper and paperboard
printed with final content printed text
or graphics.
As of 2009, imports of the subject
merchandise are provided for under the
following categories of the Harmonized
Tariff Schedule of the United States
(‘‘HTSUS’’): 4810.14.11, 4810.14.1900,
4810.14.2010, 4810.14.2090,
4810.14.5000, 4810.14.6000, 4810.14.70,
4810.19.1100, 4810.19.1900,
4810.19.2010, 4810.19.2090,
4810.22.1000, 4810.22.50, 4810.22.6000,
4810.22.70, 4810.29.1000, 4810.29.5000,
4810.29.6000, 4810.29.70. While
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the scope of the
investigation is dispositive.
Scope Comments
As discussed in the preamble to the
regulations, we set aside a period for
interested parties to raise issues
regarding product coverage. See
Antidumping Duties; Countervailing
Duties; Final Rule, 62 FR 27296, 27323
(May 19, 1997). The Department
encouraged all interested parties to
submit such comments within 20
calendar days of signature of the
Initiation Notice. See Initiation Notice,
74 FR at 31692. As we stated in Certain
Coated Paper Suitable For High-Quality
Print Graphics Using Sheet-Fed Presses
from the People’s Republic of China:
Preliminary Affirmative Countervailing
Duty Determination and Alignment of
Final Countervailing Duty
Determination with Final Antidumping
Duty Determination, 75 FR 10774
(March 9, 2010) (PRC Coated Paper CVD
Prelim) and Certain Coated Paper from
Indonesia: Preliminary Affirmative
E:\FR\FM\06MYN1.SGM
06MYN1
Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices
mstockstill on DSKH9S0YB1PROD with NOTICES
Countervailing Duty Determination and
Alignment of Final Countervailing Duty
Determination with Final Antidumping
Duty Determination, 75 FR 10761
(March 9, 2010) (Indonesia Coated
Paper CVD Prelim), the Department
received scope comments from
interested parties on November 6,
2009,4 November 16, 2009,5 December
16, 2009,6 December 28, 2009,7 and
March 12, 2010,8 with respect to
whether multi-ply coated paper
products are covered by the scope of the
AD/CVD investigations of certain coated
paper from the PRC and Indonesia. As
the Department stated in the PRC
Coated Paper CVD Prelim and Indonesia
Coated Paper CVD Prelim, based on our
review of the scope, we find that the
number of plies is not among the
specific physical characteristics (e.g.,
brightness, coating, weight, etc.)
defining the subject merchandise.
Accordingly, we preliminarily find that
multi-ply coated paper is covered by the
scope of these investigations, to the
extent that it meets the description of
the merchandise in the scope.
On February 25, 2010, the petitioners
filed additional comments rebutting
certain documents filed by the PRC and
Indonesian respondents which
contained scope comments and restating
their prior claims. In response to a
question the Department posed during
an ex parte meeting, the petitioners
stated that the phrase ‘‘suitable for high
quality print graphics’’ could be stricken
from the description of the subject
merchandise without altering the scope
of these investigations. In the PRC
Coated Paper CVD Prelim and Indonesia
Coated Paper CVD Prelim, the
Department invited interested parties to
comment within 20 calendar days of
publication of the PRC Coated Paper
4 See ‘‘Scope Comments: Coated Paper Suitable
For High-Quality Print Graphics Using Sheet-Fed
Presses from China and Indonesia,’’ dated
November 6, 2009.
5 See ‘‘Certain Coated Paper Suitable For HighQuality Print Graphics Using Sheet-Fed Presses
(‘‘Certain Coated Paper’’) from Indonesia and the
People’s Republic of China: Petitioners’ Rebuttal
Comments on Scope,’’ dated November 16, 2009.
6 See ‘‘Request to Re-Examine the Department’s
Industry Support Calculation Coated Paper Suitable
For High-Quality Print Graphics Using Sheet-Fed
Presses from China,’’ dated December 16, 2009.
7 See ‘‘Certain Coated Paper Suitable For HighQuality Print Graphics Using Sheet-Fed Presses
from Indonesia and the People’s Republic of China:
Petitioners’ Response to Chinese and Indonesian
Respondents’ Request to Re-examine the
Department’s Industry Support Calculation,’’ dated
December 28, 2009.
8 See ‘‘Ex Parte Meeting Regarding Scope: Records
Documents, Certain Coated Paper Suitable For
High-Quality Print Graphics Using Sheet-Fed
Presses from Indonesia and the People’s Republic
of China,’’ originally dated February 23, 2010,
resubmitted on March 12, 2010.
VerDate Mar<15>2010
16:53 May 05, 2010
Jkt 220001
CVD Prelim and Indonesia Coated Paper
CVD Prelim with respect to whether
striking the language ‘‘suitable for high
quality print graphics’’ from the
description of the subject merchandise
would alter the scope of these
investigations. We received comments
from interested parties on March 29,
2010,9 and April 8, 2010.10 Based on the
information contained in these
submissions, on April 23, 2010, the
Department requested additional
information from the petitioners with
respect to this scope issue. The
submission of this information is due
May 3, 2010. Therefore, we intend to
address this issue for the final
determination in these coated paper
AD/CVD investigations.
In their February 25, 2010,
submission, the petitioners also stated
that the phrase in the scope, ‘‘(c) any
other coated paper that meets the scope
definition’’ should also include the word
‘‘paperboard.’’ As the Department stated
in the PRC Coated Paper CVD Prelim
and Indonesia Coated Paper CVD
Prelim, we agree that the word
‘‘paperboard’’ was inadvertently omitted
(e.g., it is already explicitly included in
the first sentence of the scope language
and in ‘‘(b)’’ of the second paragraph)
and have corrected the scope language
to read ‘‘(c) any other coated paper and
paperboard that meets this scope
definition.’’
Collapsing
On December 22, 2009, PD and TK
submitted a consolidated questionnaire
response, based on a claim that they are
producers of subject merchandise in
Indonesia that are affiliated via common
ownership and membership in the
companies’ Boards of Directors. In this
response, PD and TK claimed that they
are also affiliated with an additional
producer of certain coated paper in
Indonesia, IK, by reason of a common
parent company, as well as certain
common board members.
In their March 26, 2010, response to
the Department’s section A
supplemental questionnaire, PD, TK and
IK provided additional information
regarding their relationship during the
POI. After an analysis of this
information, we preliminarily determine
that, in accordance with 19 CFR
351.401(f), it is appropriate to collapse
9 See ‘‘Additional Scope Comments: Certain
Coated Paper Suitable For High-Quality Print
Graphics Using Sheet-Fed Presses from China and
Indonesia,’’ dated March 29, 2010.
10 See ‘‘Certain Coated Paper Suitable For HighQuality Print Graphics Using Sheet-Fed Presses
(Certain Coated Paper) from Indonesia and the
People’s Republic of China: Petitioners’ Rebuttal
Comments on Scope,’’ dated April 8, 2010.
PO 00000
Frm 00023
Fmt 4703
Sfmt 4703
24887
these entities for purposes of this
investigation because: (1) These entities
are affiliated pursuant to section
771(33)(F) of the Act because they are
under the control of a common parent
company, PT. Purinusa Ekapersada
(Purinusa), which owns a majority of
the shares in each company; (2) PD, TK
and IK have the facilities to produce
identical or similar products, such that
substantial retooling would not be
required to restructure manufacturing
priorities; and (3) we find that there
exists a significant potential for
manipulation of price or production if
PD, TK and IK do not receive the same
antidumping duty rate. With respect to
the significant potential for
manipulation, we find, in accordance
with 19 CFR 351.401(f)(2), that: (1)
There is common ownership through
the shared parent, Purinusa; (2) PD, TK
and IK share members on their Boards
of Directors and other employees; and
(3) these companies have intertwined
operations. For further discussion, see
Memorandum to John M. Andersen,
Deputy Assistant Secretary for Import
Administration, from the Team entitled,
‘‘Whether to Treat Respondents as a
Single Entity for Margin Calculation
Purposes in the Antidumping Duty
Investigation of Certain Coated Paper
Suitable for High-Quality Print Graphics
Using Sheet-Fed Presses From
Indonesia,’’ dated April 21, 2010
(Collapsing Memo).
Targeted Dumping Allegation
The statute allows the Department to
employ the average-to-transaction
margin-calculation methodology under
the following circumstances: (1) There
is a pattern of export prices that differ
significantly among purchasers, regions,
or periods of time; (2) the Department
explains why such differences cannot be
taken into account using the average-toaverage or transaction-to-transaction
methodology. See section 777A(d)(1)(B)
of the Act.
On March 12, 2010, the petitioners
submitted allegations of targeted
dumping with respect to PD/TK/IK and
asserted that the Department should
apply the average-to-transaction
methodology in calculating the margin
for this entity. In their allegations, the
petitioners assert that there are patterns
of export prices (EPs) (or constructed
export prices (CEPs)) for comparable
merchandise that differ significantly
among purchasers, regions, and time
periods. The petitioners relied on the
Department’s targeted-dumping test in
Certain Steel Nails from the United
Arab Emirates: Notice of Final
Determination of Sales at Not Less Than
Fair Value, 73 FR 33985 (June 16, 2008),
E:\FR\FM\06MYN1.SGM
06MYN1
24888
Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices
and Certain Steel Nails from the
People’s Republic of China: Final
Determination of Sales at Less Than
Fair Value and Partial Affirmative
Determination of Critical
Circumstances, 73 FR 33977 (June 16,
2008) (collectively Nails), as applied in
more recent investigations such as
Notice of Final Determination of Sales
at Less Than Fair Value: Polyethylene
Retail Carrier Bags from Taiwan, 75 FR
14569 (March 26, 2010) (PRCBs from
Taiwan).11 See Petitioners’ Submission
of Targeted Dumping Allegations dated
March 12, 2010, at pages 3–8.
On April 6, 2010, the petitioners filed
additional comments urging the
Department to follow the practice it
recently adopted in PRCBs from
Taiwan, and make average-totransaction price comparisons for all of
PD/TK/IK’s U.S. sales if it finds any
targeted dumping by PD/TK/IK. Given
the Department’s current practice in
investigations of allowing the dumped
U.S. sales to be offset by non-dumped
U.S. sales, the petitioners maintain that
the only way for the Department to
ensure that targeted dumping is
captured in its final determination in
this investigation without being offset
by any non-dumped sales is to employ
the alternative (average-to-transaction)
price comparison methodology to all of
PD/TK/IK’S U.S. sales.
A. Targeted-Dumping Test
mstockstill on DSKH9S0YB1PROD with NOTICES
We conducted customer, regional, and
time-period targeted-dumping analyses
for PD/TK/IK using the methodology we
adopted in Nails and most recently
articulated in PRCBs from Taiwan and
Polyethylene Retail Carrier Bags from
Indonesia: Final Determination of Sales
at Less Than Fair Value, 75 FR 16431
(April 1, 2010), and accompanying
Issues and Decision Memorandum at
Comment 1 (PRCBs from Indonesia)
(collectively PRCBs); and Certain Oil
Country Tubular Goods from the
People’s Republic of China: Final
Determination of Sales at Less Than
11 In addition to a targeted dumping analysis
based on the methodology established in Nails, the
petitioners provided an alternative analysis based
on two elements which they maintain are
permissible options for the Department to consider
in addressing targeted dumping under the statute:
(1) Identification of product-specific weightedaverage prices to a targeted entity that are two
percent below the weighted-average prices of those
products to non-targeted entities (a methodology
rejected by the Department in recent prior
investigations such as Nails and PRCBs from
Taiwan); and (2) identification of any sales to a
targeted entity that are below cost (a methodology
which is not price-based and, therefore, not relevant
to addressing targeted dumping under the
Department’s current practice). See Petitioners’
Submission of Targeted Dumping Allegations dated
March 12, 2010, at pages 8–12.
VerDate Mar<15>2010
16:53 May 05, 2010
Jkt 220001
Fair Value, Affirmative Final
Determination of Critical Circumstances
and Final Determination of Targeted
Dumping, 75 FR 20335 (April 19, 2010)
and accompanying Issues and Decision
Memorandum at Comment 2 (OCTG).
The methodology we employed
involves a two-stage test; the first stage
addresses the pattern requirement and
the second stage addresses the
significant-difference requirement. See
section 777A(d)(1)(B)(i) of the Act,
Nails, PRCBs, and OCTG. In this test we
made all price comparisons on the basis
of identical merchandise (i.e., by control
number or CONNUM). The test
procedures are the same for the
customer, region, and time-period
targeted-dumping allegations. We based
all of our targeted-dumping calculations
on the U.S. net price which we
determined for U.S. sales by PD/TK/IK
in our standard margin calculations. For
further discussion of the test and
results, see the Department’s
memorandum entitled, ‘‘Calculations
Performed for PT. Pindo Deli Pulp and
Paper Mills (‘‘PD’’), PT. Pabrik Kertas
Tjiwi Kimia Tbk (‘‘TK’’), and PT Indah
Kiat Pulp & Paper Tbk (‘‘IK’’) for the
Preliminary Determination in the
Antidumping Duty Investigation of
Certain Coated Paper Suitable for HighQuality Print Graphics Using Sheet-Fed
Presses from Indonesia,’’ dated April 28,
2010 (Calculation Memo). As a result of
our analysis, we preliminarily
determine that there is a pattern of EPs
for comparable merchandise that differ
significantly among certain customers,
regions and time periods for PD/TK/IK
in accordance with section
777A(d)(1)(B)(i) of the Act and our
current practice as discussed in Nails,
PRCBs, and OCTG.
B. Price-Comparison Method
Section 777A(d)(1)(B)(ii) of the Act
states that the Department may compare
the weighted average of the normal
value (NV) to EPs (or CEPs) of
individual transactions for comparable
merchandise if the Department explains
why differences in the patterns of EPs
(or CEPs) cannot be taken into account
using the average-to-average
methodology. As described above, we
preliminarily determine that, with
respect to sales by PD/TK/IK for certain
customers, regions and time periods,
there was a pattern of prices that
differed significantly. We find that these
differences can be taken into account
using the average-to-average
methodology because the average-toaverage methodology does not conceal
differences in the patterns of prices
between the targeted and non-targeted
groups by averaging low-priced sales to
PO 00000
Frm 00024
Fmt 4703
Sfmt 4703
the targeted group with high-priced
sales to the non-targeted group.
Therefore, for the preliminary
determination, we find that the standard
average-to-average methodology takes
into account the price differences
because the alternative average-totransaction methodology yields no
difference in the margin or yields a
difference in the margin that is so
insignificant relative to the size of the
resulting margin as to be immaterial.
Accordingly, for this preliminary
determination we have applied the
standard average-to-average
methodology to all U.S. sales. See
Calculation Memo for further
discussion.
Product Comparisons
We have taken into account the
comments that were submitted by the
interested parties concerning productcomparison criteria. In accordance with
section 771(16) of the Act, we
considered all products produced by
PD/TK/IK that fit the description in the
‘‘Scope of Investigation’’ section of this
notice, and sold in Indonesia during the
POI, to be foreign like products for
purposes of determining appropriate
product comparisons to U.S. sales. In
making the product comparisons, we
matched U.S. sales of the subject
merchandise to home market sales of
the foreign like product based on the
physical characteristics reported by PD/
TK/IK in the following order of
importance: cast coating, coating sides,
basis weight, brightness, finish, opacity,
and sheet size.
Where there were no sales of identical
merchandise in the home market made
in the ordinary course of trade and
produced by PD/TK/IK to compare to
U.S. sales, we compared U.S. sales to
sales of the next most similar foreign
like product on the basis of the
characteristics listed above, which were
made in the ordinary course of trade.
Fair Value Comparisons
To determine whether sales of coated
paper from Indonesia to the United
States made by PD/TK/IK were made at
LTFV, we compared, where appropriate,
the EP to the NV, as described in the
‘‘Export Price,’’ and ‘‘Normal Value’’
sections of this notice, below. In
accordance with section
777A(d)(1)(A)(i) of the Act, we
compared POI weighted-average EPs to
POI weighted-average NVs. See
discussion below.
Export Price
Section 772(a) of the Act defines EP
as the price at which the subject
merchandise is first sold (or agreed to be
E:\FR\FM\06MYN1.SGM
06MYN1
mstockstill on DSKH9S0YB1PROD with NOTICES
Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices
sold) before the date of importation by
the producer or exporter outside of the
United States to an unaffiliated
purchaser for exportation to the United
States, as adjusted under subsection (c).
During the POI, PD/TK/IK’s U.S. sales
were made through the following
general channels of distribution: (1)
Sales directly to unaffiliated customers
in the United States; (2) sales to
unaffiliated customers in the United
States via affiliated trading companies
located in countries other than
Indonesia and the United States, but
shipped directly from the producer; and
(3) sales to unaffiliated customers in the
United States via an affiliated trading
company located in a country other than
Indonesia and the United States,
shipped out of that company’s
inventory. In accordance with section
772(a) of the Act, we have applied the
EP methodology for sales made through
the first channel of distribution noted
above because they were made by the
respondent and exported from
Indonesia to the first unaffiliated
purchaser in the United States prior to
importation.
Regarding the second channel of
distribution noted above, PD/TK/IK
claimed that it was affiliated with all
but one of the trading companies used
in this distribution channel 12 because
it: (1) Was involved in agreements
legally binding the trading companies to
buy all products they sell from PD/TK/
IK and its affiliates; and (2) exercised
almost total control of the trading
companies’ day-to-day operations,
including establishing all prices and
sales agreements with the U.S.
customers. We have analyzed the
information on the record with respect
to this affiliation claim and
preliminarily find that the trading
companies are affiliated with PD/TK/IK
pursuant to section 771(33)(G) of the
Act given that there is, in essence, an
agent relationship in which PD/TK/IK
controls each trading company used in
this second channel of distribution.
Evidence on the record indicates that,
among other things, PD/TK/IK
establishes all prices and sales
agreements with the U.S. customer, the
affiliated trading companies do not
inventory subject merchandise, and the
merchandise is shipped directly from
the respondent to the U.S. customer. See
e.g., Coated Free Sheet Paper from
Indonesia: Notice of Preliminary
12 The remaining trading company involved in
this channel of distribution also made sales of
subject merchandise to unaffiliated customers in
the United States out of its inventory. PD/TK/IK’s
claim of affiliation with this company is discussed
in the context of the third channel of distribution
below.
VerDate Mar<15>2010
16:53 May 05, 2010
Jkt 220001
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination, 72 FR 30753, 30755
(June 4, 2007) (unchanged in Notice of
Final Determination of Sales at Less
Than Fair Value: Coated Free Sheet
Paper from Indonesia, 72 FR 60636
(October 25, 2007)) (CFS from
Indonesia). Accordingly, we have
applied EP methodology for sales made
through this second channel of
distribution because they were made by
the producer’s affiliate outside the
United States to the first unaffiliated
purchaser in the United States prior to
importation. We intend to examine each
trading company’s involvement in the
U.S. sales process and the affiliation
claim further at verification.
Regarding the third channel of
distribution noted above, PD/TK/IK
claimed that it was affiliated with the
trading company involved in this
distribution channel by reason of a
common parent company (Purinusa),
which owns a majority of the shares in
each company, as well as certain
common board members. Based on the
record evidence, we find that PD/TK/IK
is affiliated with this company pursuant
to section 771(33)(F) of the Act because
they are under the common control of
Purinusa. Accordingly, we have applied
EP methodology for sales made through
this third channel of distribution
because they were made by the
producer’s affiliate outside the United
States to the first unaffiliated purchaser
in the United States prior to
importation.
PD/TK/IK claimed that a portion of its
U.S. sales through affiliated trading
companies during the POI involved an
affiliated U.S. company. PD/TK/IK
reported these sales as CEP sales.
According to PD/TK/IK, the U.S.
company at issue was affiliated by
reason of an exclusive selling agent
arrangement with PD/TK/IK during the
POI. After analyzing the information on
the record with respect to this affiliation
claim, we preliminarily find that the
U.S. company is not affiliated with PD/
TK/IK because the written agreement
between PD/TK/IK and this company
does not establish the exclusive nature
of the relationship. The U.S. company is
not precluded from selling merchandise
produced by other manufacturers, and
there is no evidence that PD/TK/IK
otherwise has the ability to control this
company. See, e.g., CFS from Indonesia,
at 72 FR 30755; and Notice of Final
Determination of Sales at Less Than
Fair Value: Carbon and Certain Alloy
Steel Wire Rod from Mexico, 67 FR
55800 (August 30, 2002), and
accompanying Issues and Decision
Memorandum at Comment 1c.
PO 00000
Frm 00025
Fmt 4703
Sfmt 4703
24889
Accordingly, we have applied EP
methodology (vs. CEP methodology) to
these sales for purposes of the
preliminary determination. We intend
to examine the U.S. company’s
involvement in the U.S. sales process
and PD/TK/IK’s affiliation claim further
at verification.
We based EP on the packed FOB,
CFR, CIF, or DDU prices to unaffiliated
purchasers in the United States. We
adjusted the starting price, where
appropriate, for billing adjustments. In
accordance with section 772(c)(2)(A) of
the Act, we made deductions, where
appropriate, for foreign inland freight
from plant to the port of exportation,
insurance (including domestic, marine,
and U.S. inland), freight and
warehousing expenses (incurred on
sales of subject merchandise sold out of
the inventory of an affiliated trading
company located in a third country),
international freight (including foreign
and U.S. brokerage and handling
expenses and U.S. inland freight), and
U.S. importation fees. We also added
freight revenue, where applicable, and
capped it by the amount of freight
expenses incurred, in accordance with
our practice. See Certain Orange Juice
from Brazil: Final Results of
Antidumping Administrative Review, 74
FR 40167 (August 11, 2009), and
accompanying Issues and Decision
Memorandum at Comment 3.
Normal Value
A. Home Market Viability and
Comparison-Market Selection
To determine whether there is a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product is equal to or
greater than five percent of the aggregate
volume of U.S. sales), we compared PD/
TK/IK’s volume of home market sales of
the foreign like product to the volume
of U.S. sales of the subject merchandise.
See section 773(a)(1)(C) of the Act.
Based on this comparison, we
determined that PD/TK/IK had a viable
home market during the POI.
Consequently, we based NV on home
market sales.
B. Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on
sales in the comparison market at the
same level of trade (LOT) as the EP or
CEP. Pursuant to 19 CFR 351.412(c)(1),
the NV LOT is that of the starting-price
sales in the comparison market or, when
NV is based on constructed value (CV),
E:\FR\FM\06MYN1.SGM
06MYN1
mstockstill on DSKH9S0YB1PROD with NOTICES
24890
Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices
that of the sales from which we derive
selling, general and administrative
expenses (SG&A) and profit. For EP, the
U.S. LOT is also the level of the startingprice sale, which is usually from
exporter to importer. For CEP, it is the
level of the constructed sale from the
exporter to the importer.
To determine whether NV sales are at
a different LOT than EP or CEP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the unaffiliated customer. See 19 CFR
351.412(c)(2). If the comparison-market
sales are at a different LOT, and the
difference affects price comparability, as
manifested in a pattern of consistent
price differences between the sales on
which NV is based and comparisonmarket sales at the LOT of the export
transaction, we make an LOT
adjustment under section 773(a)(7)(A) of
the Act. Finally, for CEP sales, if the NV
level is more remote from the factory
than the CEP level and there is no basis
for determining whether the difference
in levels between NV and CEP affects
price comparability, we adjust NV
under section 773(a)(7)(B) of the Act
(the CEP-offset provision). See Notice of
Final Determination of Sales at Less
Than Fair Value: Certain Cut-to-Length
Carbon Steel Plate from South Africa,
62 FR 61731, 61732 (Nov. 19, 1997).
In this investigation, we obtained
information from PD/TK/IK regarding
the marketing stages involved in making
their reported home market and U.S.
sales, including a description of the
selling activities performed by the
respondent (and its affiliates) for each
channel of distribution.
PD/TK/IK reported that it made EP
sales in the U.S. market through the
following general channels of
distribution: (1) Direct sales to U.S.
customers (Channel 1); (2) direct sales
through affiliated trading companies
(Channel 2); and (3) out-of-inventory
sales through an affiliated trading
company (Channel 3). PD/TK/IK stated
that its U.S. sales were made at the same
LOT, regardless of distribution channel.
We examined the selling activities
performed for all three channels and
found that PD/TK/IK performed the
following selling functions for all three
channels: Sales forecasting, strategic/
economic planning, personnel training/
exchange, order input/processing,
provision of direct sales personnel,
packing, payment of commissions, and
freight and delivery services. Regarding
sales through Channel 2, we found that,
in addition to the selling functions
performed by PD/TK/IK on these sales,
the trading companies further
performed the following selling
VerDate Mar<15>2010
16:53 May 05, 2010
Jkt 220001
functions: Order input/processing and
payment of commissions. Regarding
sales through Channel 3, we found that
the trading company performed the
following selling functions: Sales
promotion, inventory maintenance,
order input/processing, provision of
direct sales personnel, sales/marketing
support, technical assistance, freight
and delivery services, and repacking.
These selling activities can be generally
grouped into four categories for
analysis: (1) Sales and marketing; (2)
freight and delivery; (3) inventory
maintenance and warehousing; and (4)
warranty and technical support.
Accordingly, we found that PD/TK/IK
(and its affiliates) performed sales and
marketing and freight and delivery
services for all U.S. sales. We also note
that PD/TK/IK’s affiliated trading
company performed certain selling
activities (e.g., inventory maintenance
and technical services) for PD/TK/IK’s
sales through Channel 3 that were not
performed for PD/TK/IK’s sales through
Channels 1 and 2. However, there is no
evidence on the record to support
finding these differences to be material
selling function distinctions significant
enough to warrant a separate LOT in the
U.S. market, as the respondent did not
provide information on the extent to
which the selling activities identified
above are performed in one channel or
the other. Therefore, we preliminarily
determine that there is one LOT in the
U.S. market.
With respect to the home market, PD/
TK/IK made sales through a single
channel of distribution (i.e., sales to
unaffiliated customers through an
affiliated reseller).13 We examined the
selling activities performed for this
channel and found that PD/TK/IK
performed the following selling
functions: Sales forecasting, strategic/
economic planning, personnel training/
exchange, packing, inventory
maintenance, order input/processing,
provision of direct sales personnel,
technical assistance, after-sales services,
and freight and delivery services. In
addition, PD/TK/IK’s affiliated reseller
performed the following sales functions:
13 PD/TK/IK
reported that it also made some sales
directly to unaffiliated customers in the home
market. However, these sales were not included in
the home market database PD/TK/IK submitted to
the Department. Given that the quantity of these
sales constitute an insignificant percentage of the
total home market sales quantity that PD/TK/IK
reported in its home market sales database, we have
excluded these sales from our preliminary LOT
(and margin) analysis. See, e.g., Notice of Final
Determination of Sales at Less Than Fair Value and
Negative Final Determination of Critical
Circumstances: Certain Color Television Receivers
From the People’s Republic of China, 69 FR 20594
(April 16, 2004), and accompanying Issues and
Decision Memorandum at Comment 27.
PO 00000
Frm 00026
Fmt 4703
Sfmt 4703
Sales forecasting, strategic/economic
planning, personnel training/exchange,
advertising, sales promotion,
distributor/dealer training, inventory
maintenance, order input/processing,
provision of direct sales personnel,
sales/marketing support, market
research, technical assistance, provision
of cash discounts, and after-sales
services. Accordingly, based on the four
selling function categories identified
above, we find that PD/TK/IK and its
affiliated reseller performed sales and
marketing, freight and delivery services,
inventory maintenance and
warehousing, and warranty and
technical services in the home market.
Because all sales in the home market
were made through a single distribution
channel, we preliminarily determine
that there is one LOT in the home
market.
Finally, we compared the EP LOT to
the home market LOT and found that
the home market selling functions
differed from the U.S. selling functions
with respect to: (1) Inventory
maintenance and technical services
performed in the home market that are
performed only on certain sales to the
United States; and (2) certain sales and
marketing activities performed in the
home market that are either not
performed on U.S. sales or are
performed only on certain U.S. sales.
However, there is no evidence on the
record to support a finding that these
differences are significant enough to
distinguish the home market LOT from
the EP LOT, as the respondent did not
provide information on the extent to
which the selling activities identified
above are performed in one market or
the other. Notwithstanding this fact, we
note that given that PD/TK/IK sold at
only one LOT in the home market, and
there is no additional information on
the record that would allow for an LOT
adjustment, no LOT adjustment is
possible for PD/TK/IK.
C. Cost of Production Analysis
Based on our analysis of the
petitioners’ sales-below-cost of
production (COP) allegation in the
petition, we found reasonable grounds
to believe or suspect that coated paper
sales were made in Indonesia at prices
below the COP, and initiated a countrywide cost investigation. See section
773(b)(2)(A)(i) of the Act and Initiation
Notice at 74 FR 53713. Accordingly, we
conducted a sales-below-cost
investigation to determine whether PD/
TK/IK’s sales were made at prices below
their COP.
E:\FR\FM\06MYN1.SGM
06MYN1
mstockstill on DSKH9S0YB1PROD with NOTICES
Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices
1. Calculation of COP
In accordance with section 773(b)(3)
of the Act, we calculated COP based on
the sum of the cost of materials and
fabrication for the foreign like product,
plus an amount for general and
administrative expenses (G&A), and
financial expenses. See ‘‘Test of Home
Market Sales Prices’’ section below for
treatment of home market selling
expenses and packing costs. We relied
on the COP data submitted by PD/TK/
IK in the April 15, 2010, response to
section D of the Department’s
questionnaire, except where noted
below.
1. We applied the major input rule
under section 773(f)(3) of the Act to PD/
TK’s purchases of certain pulp from an
affiliated supplier. As a result, we
adjusted PD/TK’s reported cost of
manufacturing to reflect the higher of
transfer price, market price or COP for
pulp. Regarding the affiliated supplier’s
COP of the pulp, we currently have
outstanding requests for information
concerning affiliated log purchases by
this company used in the production of
pulp and will consider this information
for the final determination.
2. We applied the transactions
disregarded rule under section 773(f)(2)
of the Act to purchases of certain pulp
from affiliated parties, and we adjusted
PD’s reported cost of manufacturing to
the higher of transfer price or market
price.
3. We eliminated the inter-company
profit arising from the affiliated pulp
transactions between IK and PD/TK. We
currently have outstanding requests for
information concerning affiliated log
purchases by IK used in the production
of pulp and will consider this
information for the final determination.
4. We adjusted the COP of certain
pulp PD/TK purchased from IK and an
affiliated supplier to reflect the total
financial expenses of an affiliated
trading company.
5. We revised PD/TK/IK’s G&A
expense ratios to include
unconsolidated non-operating expenses
in the numerator of the ratios.
6. We revised the reported financial
expense ratio of the parent company
(Purinusa) to exclude that portion of the
interest income offset that we are unable
to determine was generated from shortterm interest-bearing assets from the
numerator of the ratio.
7. We revised the denominator of the
financial expense ratio to exclude TK’s
and PD’s reported packing expenses.
8. We applied the parent company’s
financial expense ratio against each
company’s reported total cost of
manufacturing to determine the
company’s per-unit financial expenses.
VerDate Mar<15>2010
16:53 May 05, 2010
Jkt 220001
See the April 28, 2010, Memorandum
from LaVonne Clark and Robert Greger,
Senior Accountants, to Neal M. Halper,
Director, Office of Accounting, entitled,
‘‘Cost of Production and Constructed
Value Calculation Adjustments for the
Preliminary Determination—PT. Pabrik
Kertas Tjiwi Kimia Tbk., PT. Pindo Deli
Pulp and Paper, and PT Indah Kiat Pulp
and Paper Tbk.,’’ for further discussion.
For the preliminary determination, we
have relied upon the POI weightedaverage COP PD/TK/IK reported, as
adjusted above. However, depending on
the extent to which production costs
changed throughout the cost reporting
period, we are considering whether it is
more appropriate to use the
Department’s alternative cost averaging
methodology for the final
determination. Accordingly, we have
requested product-specific quarterly
cost information from PD/TK/IK for
consideration prior to the final
determination.
2. Test of Home Market Sales Prices
On a product-specific basis, we
compared the adjusted weightedaverage COP to the home market sales
prices of the foreign like product, as
required under section 773(b) of the Act,
to determine whether the sale prices
were below the COP. The sales prices
were exclusive of any applicable
discounts, movement charges, direct
and indirect selling expenses, and
packing expenses. For purposes of this
comparison, we used the COP exclusive
of selling and packing expenses.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C)(i) of
the Act, where less than 20 percent of
the respondent’s sales of a given
product during the POI are at prices less
than the COP, we do not disregard any
below-cost sales of that product,
because we determined that the belowcost sales were not made in ‘‘substantial
quantities.’’ Where 20 percent or more of
the respondent’s sales of a given
product during the POI were at prices
less than the COP, we determine that
such sales have been made in
‘‘substantial quantities.’’ See section
773(b)(2)(C) of the Act. Further, we
determine that the sales were made
within an extended period of time, in
accordance with section 773(b)(2)(B) of
the Act, because we examine below-cost
sales occurring during the entire POI. In
accordance with section 773(b)(2)(D) of
the Act, we compare prices to the POIaverage costs to determine whether the
prices permit recovery of costs within a
reasonable period of time.
In this case, we found that, for certain
products, more than 20 percent of PD/
PO 00000
Frm 00027
Fmt 4703
Sfmt 4703
24891
TK/IK’s sales were made at prices less
than the COP and, in addition, such
sales did not provide for the recovery of
costs within a reasonable period of time.
We, therefore, excluded these sales and
used the remaining sales as the basis for
determining NV, in accordance with
section 773(b)(1) of the Act.
4. Calculation of Normal Value Based on
Comparison-Market Prices
We based NV for PD/TK/IK on packed
CIF prices to unaffiliated customers.
Where appropriate, we made
adjustments for quantity discounts. We
made deductions for movement
expenses, including foreign inland
freight, warehousing, and insurance
expenses, under section 773(a)(6)(B)(ii)
of the Act.
Pursuant to section 773(a)(6)(C)(iii) of
the Act and 19 CFR 351.410(b), we
made, where appropriate, circumstanceof-sale adjustments for imputed credit
expenses, bank charges, courier
expenses, and commissions. Regarding
commissions, PD/TK/IK incurred
commissions only in relation to U.S.
sales. Therefore, pursuant to 19 CFR
351.410(e), we offset U.S. commissions
by the lesser of the commission amount
or home market indirect selling
expenses.
Furthermore, we made adjustments
for differences in costs attributable to
differences in the physical
characteristics of the merchandise in
accordance with section 773(a)(6)(C)(ii)
of the Act and 19 CFR 351.411. We also
deducted home market packing costs
and added U.S. packing costs in
accordance with sections 773(a)(6)(A)
and (B) of the Act.
Currency Conversion
We made currency conversions into
U.S. dollars in accordance with section
773A(a) of the Act and 19 CFR 351.415
based on the exchange rates in effect on
the dates of the U.S. sales as certified by
the Federal Reserve Bank.
Verification
As provided in section 782(i)(1) of the
Act, we intend to verify the information
relied upon in making our final
determination for PD/TK/IK.
Suspension of Liquidation
In accordance with section 733(d)(2)
of the Act, we will direct U.S. Customs
and Border Protection (CBP) to suspend
liquidation of all entries of coated paper
from Indonesia that are entered, or
withdrawn from warehouse, for
consumption on or after the date of
publication of this notice in the Federal
Register. We will also instruct CBP to
require a cash deposit or the posting of
E:\FR\FM\06MYN1.SGM
06MYN1
24892
Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices
351.210(e)(2), require that requests by
respondents for postponement of a final
determination be accompanied by a
request for extension of provisional
measures from a four-month period to
not more than six months.
On April 13, 2010, PD/TK/IK
requested that in the event of an
Weightedaffirmative preliminary determination
Average
in this investigation, the Department
Manufacturer/Exporter
margin
postpone its final determination by 60
(percent)
days. At the same time, PD/TK/IK
requested that the Department extend
PT. Pabrik Kertas Tjiwi Kimia
Tbk./PT. Pindo Deli Pulp and
the application of the provisional
Paper/PT. Indah Kiat Pulp
measures prescribed under section
and Paper Tbk ......................
10.62 733(d) of the Act and 19 CFR
All Others ..................................
10.62 351.210(e)(2), from a four-month period
to a six-month period. In accordance
All Others Rate
with section 735(a)(2) of the Act and 19
CFR 351.210(b)(2), because (1) our
Section 735(c)(5)(A) of the Act
provides that the estimated ‘‘All Others’’ preliminary determination is
affirmative, (2) the requesting exporters
rate shall be an amount equal to the
account for a significant proportion of
weighted average of the estimated
exports of the subject merchandise, and
weighted-average dumping margins
(3) no compelling reasons for denial
established for exporters and producers
individually investigated, excluding any exist, we are granting this request and
are postponing the final determination
zero or de minimis margins, and any
until no later than 135 days after the
margins determined entirely under
publication of this notice in the Federal
section 776 of the Act. As mentioned
above in this notice, the collapsed entity Register. Suspension of liquidation will
be extended accordingly.
(i.e., PD/TK/IK) is the only respondent
in this investigation for which the
ITC Notification
Department calculated a companyIn accordance with section 733(f) of
specific rate. Therefore, for purposes of
the Act, we have notified the ITC of the
determining the all-others rate and
Department’s preliminary affirmative
pursuant to section 735(c)(5)(A) of the
determination. If the Department’s final
Act, we are using the weighted-average
determination is affirmative, the ITC
dumping margin calculated for PD/TK/
will determine before the later of 120
IK, as referenced above. See, e.g., CFS
days after the date of this preliminary
from Indonesia, 72 FR at 60637; and
determination or 45 days after our final
Notice of Final Determination of Sales
determination whether imports of
at Less Than Fair Value: Stainless Steel
coated paper from Indonesia are
Sheet and Strip in Coils From Italy, 64
materially injuring, or threatening
FR 30750, 30755 (June 8, 1999).
material injury to, the U.S. industry (see
Disclosure
section 735(b)(2) of the Act). Because we
The Department will disclose to
are postponing the deadline for our final
parties the calculations performed in
determination to 135 days from the date
connection with this preliminary
of the publication of this preliminary
determination within five days of the
determination, the ITC will make its
date of publication of this notice. See 19 final determination no later than 45
CFR 351.224(b).
days after our final determination.
mstockstill on DSKH9S0YB1PROD with NOTICES
a bond equal to the weighted-average
dumping margins, as indicated in the
chart below. These suspension-ofliquidation instructions will remain in
effect until further notice.
The weighted-average dumping
margins are as follows:
Postponement of Final Determination
and Extension of Provisional Measures
Section 735(a)(2) of the Act provides
that a final determination may be
postponed until not later than 135 days
after the date of the publication of the
preliminary determination if, in the
event of an affirmative preliminary
determination, a request for such
postponement is made by exporters,
who account for a significant proportion
of exports of the subject merchandise, or
in the event of a negative preliminary
determination, a request for such
postponement is made by the petitioner.
The Department’s regulations, at 19 CFR
VerDate Mar<15>2010
16:53 May 05, 2010
Jkt 220001
Public Comment
Interested parties are invited to
comment on the preliminary
determination. Interested parties may
submit case briefs to the Department no
later than seven days after the date of
the issuance of the last sales or cost
verification report in this proceeding.
See 19 CFR 351.309(c). Rebuttal briefs,
the content of which is limited to the
issues raised in the case briefs, must be
filed within five days from the deadline
date for the submission of case briefs.
See 19 CFR 351.309(d). A list of
authorities used, a table of contents, and
an executive summary of issues should
PO 00000
Frm 00028
Fmt 4703
Sfmt 4703
accompany any briefs submitted to the
Department. Executive summaries
should be limited to five pages total,
including footnotes. Further, we request
that parties submitting briefs and
rebuttal briefs provide the Department
with a copy of the public version of
such briefs on diskette.
In accordance with section 774 of the
Act, the Department will hold a public
hearing, if timely requested, to afford
interested parties an opportunity to
comment on arguments raised in case or
rebuttal briefs, provided that such a
hearing is requested by an interested
party. See also 19 CFR 351.310(d). If a
timely request for a hearing is made in
this investigation, we intend to hold the
hearing two days after the rebuttal brief
deadline date at the U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230, at
a time and in a room to be determined.
See 19 CFR 351.310. Parties should
confirm by telephone, the date, time,
and location of the hearing 48 hours
before the scheduled date.
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,
U.S. Department of Commerce, Room
1870, within 30 days of the publication
of this notice. Requests should contain:
(1) The party’s name, address, and
telephone number; (2) the number of
participants; and (3) a list of the issues
to be discussed. At the hearing, oral
presentations will be limited to issues
raised in the briefs.
This determination is issued and
published pursuant to sections 733(f)
and 777(i)(1) of the Act.
Dated: April 28, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–10682 Filed 5–5–10; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–958]
Certain Coated Paper Suitable for
High-Quality Print Graphics Using
Sheet-Fed Presses From the People’s
Republic of China: Notice of
Preliminary Determination of Sales at
Less Than Fair Value and
Postponement of Final Determination
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
E:\FR\FM\06MYN1.SGM
06MYN1
Agencies
[Federal Register Volume 75, Number 87 (Thursday, May 6, 2010)]
[Notices]
[Pages 24885-24892]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-10682]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-560-823]
Certain Coated Paper Suitable for High-Quality Print Graphics
Using Sheet-Fed Presses From Indonesia: Preliminary Determination of
Sales at Less Than Fair Value and Postponement of Final Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: May 6, 2010.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that certain coated paper suitable for high-quality print
graphics using sheet-fed presses (coated paper) from Indonesia is
being, or is likely to be, sold in the United States at less than fair
value (LTFV), as provided in section 733(b) of the Tariff Act of 1930,
as amended (the Act). The estimated dumping margins are listed in the
``Suspension of Liquidation'' section of this notice. Interested
parties are invited to comment on this preliminary determination.
Pursuant to requests from interested parties, we are postponing for 60
days the final determination and extending provisional measures from a
four-month period to not more than six months. Accordingly, we will
make our final determination not later than 135 days after publication
of the preliminary determination.
FOR FURTHER INFORMATION CONTACT: Gemal Brangman or Brian Smith, AD/CVD
Operations, Office 2, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3773 and (202) 482-1766, respectively.
SUPPLEMENTARY INFORMATION:
Background
In its initiation of this investigation (see Certain Coated Paper
Suitable for High-Quality Print Graphics Using Sheet-Fed Presses From
Indonesia and the People's Republic of China: Initiation of Antidumping
Duty Investigations, 74 FR 53710 (October 20, 2009) (Initiation
Notice)), the Department stated that it had selected PT. Pabrik Kertas
Tjiwi Kimia Tbk. (TK) and PT. Pindo Deli Pulp and Paper (PD) as the
mandatory respondents in this investigation. See Initiation Notice, 74
FR 53714. Since the Initiation Notice, the following events have
occurred.
The Department set aside a period of time for parties to raise
issues regarding product coverage and encouraged all parties to submit
comments within 20 calendar days of publication of the Initiation
Notice. See Initiation Notice, 74 FR at 53710; see also Antidumping
Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19,
1997). We received several scope comment submissions from interested
parties during the period November 2009 through April 2010. For further
details, see ``Scope Comments'' section of this notice. The Department
also set aside a time for parties to comment on product characteristics
for use in the antidumping questionnaire. We received such comments
from the respondents on November 2, 2009, and from the petitioners\1\
on November 10, 2009.
---------------------------------------------------------------------------
\1\ The petitioners include the following companies: Appleton
Coated LLC, NewPage Corporation, S.D. Warren Company d/b/a/ Sappi
Fine Paper North America, and the United Steel, Paper and Forestry,
Rubber, Manufacturing, Energy, Allied Industrial and Service Workers
International Union.
---------------------------------------------------------------------------
On November 17, 2009, the U.S. International Trade Commission (ITC)
preliminarily determined that there is a reasonable indication that
imports of coated paper from Indonesia are materially injuring the U.S.
industry and notified the Department of its findings. See Certain
Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed
Presses from China and Indonesia, Investigation Nos. 701-TA-470-471 and
731-TA-1169-1170 (Preliminary), 74 FR 61174 (November 23, 2009).
On November 20, 2009, we issued PD and TK the antidumping duty
questionnaire.
On December 16, 2009, we issued a memorandum detailing the reasons
why it would not be practicable in this investigation to examine
individually more than the two Indonesian producers/exporters of coated
paper named in the Initiation Notice. See Memorandum from James Maeder,
Office Director, to John M. Andersen, Acting Deputy Assistant
Secretary, entitled, ``Certain Coated Paper Suitable for High-Quality
Print Graphics Using Sheet-Fed Presses from Indonesia: Selection of
Respondents,'' dated December 16, 2009 (Respondent Selection Memo).
On December 22, 2009, PD and TK submitted a consolidated response
to section A (i.e., the section covering general information about the
company) of the antidumping duty questionnaire. In this submission, PD
and TK indicated that not only are they affiliated with each other, but
they are also affiliated with a third company that produces coated
paper in Indonesia, PT Indah Kiat Pulp and Paper Tbk. (IK). Based on an
analysis of the facts of record, as discussed in the ``Collapsing''
section of this notice below, we find that it is appropriate to treat
these companies as a single entity, hereafter referred to as PD/TK/IK.
On January 12, 2010, PD and TK submitted their responses to
sections B (i.e., the section covering comparison-market sales) and C
(i.e., the section covering U.S. sales) of the antidumping duty
questionnaire). On January 19, 2010, PD and TK submitted their response
to section D (i.e., the section covering cost of production (COP) and
constructed value (CV)) of the
[[Page 24886]]
antidumping duty questionnaire. These responses did not include sales
and cost data for multi-ply coated paper products the respondents
produced and sold during the POI. Therefore, on January 25, 2010, we
requested that PD/TK/IK provide such data, if the multi-ply coated
paper they produced and sold during the POI met the description of the
merchandise in the scope, pending the Department's ruling on the
matter. PD/TK/IK provided the requisite data on multi-ply coated paper
on February 16, 2010.
On January 22, 2010, the petitioners made a timely request pursuant
to section 733(c)(1)(A) of the Act and 19 CFR 351.205(e) for a 50-day
postponement of the preliminary determination. Therefore, pursuant to
section 733(c)(1)(A) of the Act, on February 4, 2010, the Department
postponed the preliminary determination of this investigation until
April 21, 2010. See Certain Coated Paper Suitable for High-Quality
Print Graphics Using Sheet-Fed Presses From Indonesia and the People's
Republic of China: Postponement of Preliminary Determinations of
Antidumping Duty Investigations, 75 FR 7447 (February 19, 2010). As
explained in the memorandum from the Deputy Assistant Secretary for
Import Administration, the Department has exercised its discretion to
toll deadlines for the duration of the closure of the Federal
Government from February 5, through February 12, 2010. Thus, all
deadlines in this proceeding have been extended by seven days. The
revised deadline for the preliminary determination of this
investigation is now April 28, 2010. See Memorandum to the file
regarding ``Tolling of Administrative Deadlines As a Result of the
Government Closure During the Recent Snowstorm,'' dated February 12,
2010.
On March 2, 2010, the Department issued PD/TK/IK a supplemental
questionnaire concerning its responses to sections A, B, and C of the
antidumping questionnaire, and received PD/TK/IK's responses to this
supplemental questionnaire during March and April 2010. On March 12,
2010, the Department issued PD/TK/IK a section D supplemental
questionnaire and received a response to this questionnaire on April 2
and 9, 2010. The Department requested additional information from PD/
TK/IK regarding its responses to sections A through D of the
questionnaire in March and April 2010. PD/TK/IK provided the requested
information pertaining to sections A through C of the questionnaire,
and some of the requested information pertaining to section D of the
questionnaire during the same months. The Department expects to receive
the remaining information requested with respect to section D in May
2010.
On March 12, 2010, the petitioners filed an allegation of targeted
dumping by PD/TK/IK. See the ``Targeted Dumping Allegation'' section
below.
On April 6, 2010, the petitioners submitted comments for
consideration with respect to the preliminary determination.
On April 13, 2010, PD/TK/TK requested that in the event of an
affirmative preliminary determination in this investigation, the
Department: (1) Postpone its final determination by 60 days in
accordance with 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii);
and 2) extend the application of the provisional measures prescribed
under 19 CFR 351.210(e)(2) from a four-month period to a six-month
period.
Similarly, on April 16, 2010, the petitioners requested that in the
event of a negative preliminary determination in this investigation,
the Department postpone its final determination by 60 days in
accordance with 735(a)(2)(B) of the Act and 19 CFR 351.210(b)(2)(i).
For further discussion, see the ``Postponement of Final Determination
and Extension of Provisional Measures'' section of this notice, below.
Period of Investigation
The period of investigation (POI) is July 1, 2008, to June 30,
2009. This period corresponds to the four most recent fiscal quarters
prior to the month of the filing of the petition.
Scope of Investigation
The merchandise covered by this investigation includes certain
coated paper and paperboard \2\ in sheets suitable for high quality
print graphics using sheet-fed presses; coated on one or both sides
with kaolin (China or other clay), calcium carbonate, titanium dioxide,
and/or other inorganic substances; with or without a binder; having a
GE brightness level of 80 or higher; \3\ weighing not more than 340
grams per square meter; whether gloss grade, satin grade, matte grade,
dull grade, or any other grade of finish; whether or not surface-
colored, surface-decorated, printed (except as described below),
embossed, or perforated; and irrespective of dimensions (``Certain
Coated Paper'').
---------------------------------------------------------------------------
\2\ `` `Paperboard' refers to Certain Coated Paper that is
heavier, thicker and more rigid than coated paper which otherwise
meets the product description. In the context of Certain Coated
Paper, paperboard typically is referred to as `cover,' to
distinguish it from `text.' ''
\3\ One of the key measurements of any grade of paper is
brightness. Generally speaking, the brighter the paper the better
the contrast between the paper and the ink. Brightness is measured
using a GE Reflectance Scale, which measures the reflection of light
off of a grade of paper. One is the lowest reflection, or what would
be given to a totally black grade, and 100 is the brightest measured
grade.
---------------------------------------------------------------------------
Certain Coated Paper includes (a) coated free sheet paper and
paperboard that meets this scope definition; (b) coated groundwood
paper and paperboard produced from bleached chemi-thermo-mechanical
pulp (``BCTMP'') that meets this scope definition; and (c) any other
coated paper and paperboard that meets this scope definition.
Certain Coated Paper is typically (but not exclusively) used for
printing multi-colored graphics for catalogues, books, magazines,
envelopes, labels and wraps, greeting cards, and other commercial
printing applications requiring high quality print graphics.
Specifically excluded from the scope are imports of paper and
paperboard printed with final content printed text or graphics.
As of 2009, imports of the subject merchandise are provided for
under the following categories of the Harmonized Tariff Schedule of the
United States (``HTSUS''): 4810.14.11, 4810.14.1900, 4810.14.2010,
4810.14.2090, 4810.14.5000, 4810.14.6000, 4810.14.70, 4810.19.1100,
4810.19.1900, 4810.19.2010, 4810.19.2090, 4810.22.1000, 4810.22.50,
4810.22.6000, 4810.22.70, 4810.29.1000, 4810.29.5000, 4810.29.6000,
4810.29.70. While HTSUS subheadings are provided for convenience and
customs purposes, the written description of the scope of the
investigation is dispositive.
Scope Comments
As discussed in the preamble to the regulations, we set aside a
period for interested parties to raise issues regarding product
coverage. See Antidumping Duties; Countervailing Duties; Final Rule, 62
FR 27296, 27323 (May 19, 1997). The Department encouraged all
interested parties to submit such comments within 20 calendar days of
signature of the Initiation Notice. See Initiation Notice, 74 FR at
31692. As we stated in Certain Coated Paper Suitable For High-Quality
Print Graphics Using Sheet-Fed Presses from the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Countervailing Duty Determination with Final
Antidumping Duty Determination, 75 FR 10774 (March 9, 2010) (PRC Coated
Paper CVD Prelim) and Certain Coated Paper from Indonesia: Preliminary
Affirmative
[[Page 24887]]
Countervailing Duty Determination and Alignment of Final Countervailing
Duty Determination with Final Antidumping Duty Determination, 75 FR
10761 (March 9, 2010) (Indonesia Coated Paper CVD Prelim), the
Department received scope comments from interested parties on November
6, 2009,\4\ November 16, 2009,\5\ December 16, 2009,\6\ December 28,
2009,\7\ and March 12, 2010,\8\ with respect to whether multi-ply
coated paper products are covered by the scope of the AD/CVD
investigations of certain coated paper from the PRC and Indonesia. As
the Department stated in the PRC Coated Paper CVD Prelim and Indonesia
Coated Paper CVD Prelim, based on our review of the scope, we find that
the number of plies is not among the specific physical characteristics
(e.g., brightness, coating, weight, etc.) defining the subject
merchandise. Accordingly, we preliminarily find that multi-ply coated
paper is covered by the scope of these investigations, to the extent
that it meets the description of the merchandise in the scope.
---------------------------------------------------------------------------
\4\ See ``Scope Comments: Coated Paper Suitable For High-Quality
Print Graphics Using Sheet-Fed Presses from China and Indonesia,''
dated November 6, 2009.
\5\ See ``Certain Coated Paper Suitable For High-Quality Print
Graphics Using Sheet-Fed Presses (``Certain Coated Paper'') from
Indonesia and the People's Republic of China: Petitioners' Rebuttal
Comments on Scope,'' dated November 16, 2009.
\6\ See ``Request to Re-Examine the Department's Industry
Support Calculation Coated Paper Suitable For High-Quality Print
Graphics Using Sheet-Fed Presses from China,'' dated December 16,
2009.
\7\ See ``Certain Coated Paper Suitable For High-Quality Print
Graphics Using Sheet-Fed Presses from Indonesia and the People's
Republic of China: Petitioners' Response to Chinese and Indonesian
Respondents' Request to Re-examine the Department's Industry Support
Calculation,'' dated December 28, 2009.
\8\ See ``Ex Parte Meeting Regarding Scope: Records Documents,
Certain Coated Paper Suitable For High-Quality Print Graphics Using
Sheet-Fed Presses from Indonesia and the People's Republic of
China,'' originally dated February 23, 2010, resubmitted on March
12, 2010.
---------------------------------------------------------------------------
On February 25, 2010, the petitioners filed additional comments
rebutting certain documents filed by the PRC and Indonesian respondents
which contained scope comments and restating their prior claims. In
response to a question the Department posed during an ex parte meeting,
the petitioners stated that the phrase ``suitable for high quality
print graphics'' could be stricken from the description of the subject
merchandise without altering the scope of these investigations. In the
PRC Coated Paper CVD Prelim and Indonesia Coated Paper CVD Prelim, the
Department invited interested parties to comment within 20 calendar
days of publication of the PRC Coated Paper CVD Prelim and Indonesia
Coated Paper CVD Prelim with respect to whether striking the language
``suitable for high quality print graphics'' from the description of
the subject merchandise would alter the scope of these investigations.
We received comments from interested parties on March 29, 2010,\9\ and
April 8, 2010.\10\ Based on the information contained in these
submissions, on April 23, 2010, the Department requested additional
information from the petitioners with respect to this scope issue. The
submission of this information is due May 3, 2010. Therefore, we intend
to address this issue for the final determination in these coated paper
AD/CVD investigations.
---------------------------------------------------------------------------
\9\ See ``Additional Scope Comments: Certain Coated Paper
Suitable For High-Quality Print Graphics Using Sheet-Fed Presses
from China and Indonesia,'' dated March 29, 2010.
\10\ See ``Certain Coated Paper Suitable For High-Quality Print
Graphics Using Sheet-Fed Presses (Certain Coated Paper) from
Indonesia and the People's Republic of China: Petitioners' Rebuttal
Comments on Scope,'' dated April 8, 2010.
---------------------------------------------------------------------------
In their February 25, 2010, submission, the petitioners also stated
that the phrase in the scope, ``(c) any other coated paper that meets
the scope definition'' should also include the word ``paperboard.'' As
the Department stated in the PRC Coated Paper CVD Prelim and Indonesia
Coated Paper CVD Prelim, we agree that the word ``paperboard'' was
inadvertently omitted (e.g., it is already explicitly included in the
first sentence of the scope language and in ``(b)'' of the second
paragraph) and have corrected the scope language to read ``(c) any
other coated paper and paperboard that meets this scope definition.''
Collapsing
On December 22, 2009, PD and TK submitted a consolidated
questionnaire response, based on a claim that they are producers of
subject merchandise in Indonesia that are affiliated via common
ownership and membership in the companies' Boards of Directors. In this
response, PD and TK claimed that they are also affiliated with an
additional producer of certain coated paper in Indonesia, IK, by reason
of a common parent company, as well as certain common board members.
In their March 26, 2010, response to the Department's section A
supplemental questionnaire, PD, TK and IK provided additional
information regarding their relationship during the POI. After an
analysis of this information, we preliminarily determine that, in
accordance with 19 CFR 351.401(f), it is appropriate to collapse these
entities for purposes of this investigation because: (1) These entities
are affiliated pursuant to section 771(33)(F) of the Act because they
are under the control of a common parent company, PT. Purinusa
Ekapersada (Purinusa), which owns a majority of the shares in each
company; (2) PD, TK and IK have the facilities to produce identical or
similar products, such that substantial retooling would not be required
to restructure manufacturing priorities; and (3) we find that there
exists a significant potential for manipulation of price or production
if PD, TK and IK do not receive the same antidumping duty rate. With
respect to the significant potential for manipulation, we find, in
accordance with 19 CFR 351.401(f)(2), that: (1) There is common
ownership through the shared parent, Purinusa; (2) PD, TK and IK share
members on their Boards of Directors and other employees; and (3) these
companies have intertwined operations. For further discussion, see
Memorandum to John M. Andersen, Deputy Assistant Secretary for Import
Administration, from the Team entitled, ``Whether to Treat Respondents
as a Single Entity for Margin Calculation Purposes in the Antidumping
Duty Investigation of Certain Coated Paper Suitable for High-Quality
Print Graphics Using Sheet-Fed Presses From Indonesia,'' dated April
21, 2010 (Collapsing Memo).
Targeted Dumping Allegation
The statute allows the Department to employ the average-to-
transaction margin-calculation methodology under the following
circumstances: (1) There is a pattern of export prices that differ
significantly among purchasers, regions, or periods of time; (2) the
Department explains why such differences cannot be taken into account
using the average-to-average or transaction-to-transaction methodology.
See section 777A(d)(1)(B) of the Act.
On March 12, 2010, the petitioners submitted allegations of
targeted dumping with respect to PD/TK/IK and asserted that the
Department should apply the average-to-transaction methodology in
calculating the margin for this entity. In their allegations, the
petitioners assert that there are patterns of export prices (EPs) (or
constructed export prices (CEPs)) for comparable merchandise that
differ significantly among purchasers, regions, and time periods. The
petitioners relied on the Department's targeted-dumping test in Certain
Steel Nails from the United Arab Emirates: Notice of Final
Determination of Sales at Not Less Than Fair Value, 73 FR 33985 (June
16, 2008),
[[Page 24888]]
and Certain Steel Nails from the People's Republic of China: Final
Determination of Sales at Less Than Fair Value and Partial Affirmative
Determination of Critical Circumstances, 73 FR 33977 (June 16, 2008)
(collectively Nails), as applied in more recent investigations such as
Notice of Final Determination of Sales at Less Than Fair Value:
Polyethylene Retail Carrier Bags from Taiwan, 75 FR 14569 (March 26,
2010) (PRCBs from Taiwan).\11\ See Petitioners' Submission of Targeted
Dumping Allegations dated March 12, 2010, at pages 3-8.
---------------------------------------------------------------------------
\11\ In addition to a targeted dumping analysis based on the
methodology established in Nails, the petitioners provided an
alternative analysis based on two elements which they maintain are
permissible options for the Department to consider in addressing
targeted dumping under the statute: (1) Identification of product-
specific weighted-average prices to a targeted entity that are two
percent below the weighted-average prices of those products to non-
targeted entities (a methodology rejected by the Department in
recent prior investigations such as Nails and PRCBs from Taiwan);
and (2) identification of any sales to a targeted entity that are
below cost (a methodology which is not price-based and, therefore,
not relevant to addressing targeted dumping under the Department's
current practice). See Petitioners' Submission of Targeted Dumping
Allegations dated March 12, 2010, at pages 8-12.
---------------------------------------------------------------------------
On April 6, 2010, the petitioners filed additional comments urging
the Department to follow the practice it recently adopted in PRCBs from
Taiwan, and make average-to-transaction price comparisons for all of
PD/TK/IK's U.S. sales if it finds any targeted dumping by PD/TK/IK.
Given the Department's current practice in investigations of allowing
the dumped U.S. sales to be offset by non-dumped U.S. sales, the
petitioners maintain that the only way for the Department to ensure
that targeted dumping is captured in its final determination in this
investigation without being offset by any non-dumped sales is to employ
the alternative (average-to-transaction) price comparison methodology
to all of PD/TK/IK'S U.S. sales.
A. Targeted-Dumping Test
We conducted customer, regional, and time-period targeted-dumping
analyses for PD/TK/IK using the methodology we adopted in Nails and
most recently articulated in PRCBs from Taiwan and Polyethylene Retail
Carrier Bags from Indonesia: Final Determination of Sales at Less Than
Fair Value, 75 FR 16431 (April 1, 2010), and accompanying Issues and
Decision Memorandum at Comment 1 (PRCBs from Indonesia) (collectively
PRCBs); and Certain Oil Country Tubular Goods from the People's
Republic of China: Final Determination of Sales at Less Than Fair
Value, Affirmative Final Determination of Critical Circumstances and
Final Determination of Targeted Dumping, 75 FR 20335 (April 19, 2010)
and accompanying Issues and Decision Memorandum at Comment 2 (OCTG).
The methodology we employed involves a two-stage test; the first
stage addresses the pattern requirement and the second stage addresses
the significant-difference requirement. See section 777A(d)(1)(B)(i) of
the Act, Nails, PRCBs, and OCTG. In this test we made all price
comparisons on the basis of identical merchandise (i.e., by control
number or CONNUM). The test procedures are the same for the customer,
region, and time-period targeted-dumping allegations. We based all of
our targeted-dumping calculations on the U.S. net price which we
determined for U.S. sales by PD/TK/IK in our standard margin
calculations. For further discussion of the test and results, see the
Department's memorandum entitled, ``Calculations Performed for PT.
Pindo Deli Pulp and Paper Mills (``PD''), PT. Pabrik Kertas Tjiwi Kimia
Tbk (``TK''), and PT Indah Kiat Pulp & Paper Tbk (``IK'') for the
Preliminary Determination in the Antidumping Duty Investigation of
Certain Coated Paper Suitable for High-Quality Print Graphics Using
Sheet-Fed Presses from Indonesia,'' dated April 28, 2010 (Calculation
Memo). As a result of our analysis, we preliminarily determine that
there is a pattern of EPs for comparable merchandise that differ
significantly among certain customers, regions and time periods for PD/
TK/IK in accordance with section 777A(d)(1)(B)(i) of the Act and our
current practice as discussed in Nails, PRCBs, and OCTG.
B. Price-Comparison Method
Section 777A(d)(1)(B)(ii) of the Act states that the Department may
compare the weighted average of the normal value (NV) to EPs (or CEPs)
of individual transactions for comparable merchandise if the Department
explains why differences in the patterns of EPs (or CEPs) cannot be
taken into account using the average-to-average methodology. As
described above, we preliminarily determine that, with respect to sales
by PD/TK/IK for certain customers, regions and time periods, there was
a pattern of prices that differed significantly. We find that these
differences can be taken into account using the average-to-average
methodology because the average-to-average methodology does not conceal
differences in the patterns of prices between the targeted and non-
targeted groups by averaging low-priced sales to the targeted group
with high-priced sales to the non-targeted group. Therefore, for the
preliminary determination, we find that the standard average-to-average
methodology takes into account the price differences because the
alternative average-to-transaction methodology yields no difference in
the margin or yields a difference in the margin that is so
insignificant relative to the size of the resulting margin as to be
immaterial. Accordingly, for this preliminary determination we have
applied the standard average-to-average methodology to all U.S. sales.
See Calculation Memo for further discussion.
Product Comparisons
We have taken into account the comments that were submitted by the
interested parties concerning product-comparison criteria. In
accordance with section 771(16) of the Act, we considered all products
produced by PD/TK/IK that fit the description in the ``Scope of
Investigation'' section of this notice, and sold in Indonesia during
the POI, to be foreign like products for purposes of determining
appropriate product comparisons to U.S. sales. In making the product
comparisons, we matched U.S. sales of the subject merchandise to home
market sales of the foreign like product based on the physical
characteristics reported by PD/TK/IK in the following order of
importance: cast coating, coating sides, basis weight, brightness,
finish, opacity, and sheet size.
Where there were no sales of identical merchandise in the home
market made in the ordinary course of trade and produced by PD/TK/IK to
compare to U.S. sales, we compared U.S. sales to sales of the next most
similar foreign like product on the basis of the characteristics listed
above, which were made in the ordinary course of trade.
Fair Value Comparisons
To determine whether sales of coated paper from Indonesia to the
United States made by PD/TK/IK were made at LTFV, we compared, where
appropriate, the EP to the NV, as described in the ``Export Price,''
and ``Normal Value'' sections of this notice, below. In accordance with
section 777A(d)(1)(A)(i) of the Act, we compared POI weighted-average
EPs to POI weighted-average NVs. See discussion below.
Export Price
Section 772(a) of the Act defines EP as the price at which the
subject merchandise is first sold (or agreed to be
[[Page 24889]]
sold) before the date of importation by the producer or exporter
outside of the United States to an unaffiliated purchaser for
exportation to the United States, as adjusted under subsection (c).
During the POI, PD/TK/IK's U.S. sales were made through the
following general channels of distribution: (1) Sales directly to
unaffiliated customers in the United States; (2) sales to unaffiliated
customers in the United States via affiliated trading companies located
in countries other than Indonesia and the United States, but shipped
directly from the producer; and (3) sales to unaffiliated customers in
the United States via an affiliated trading company located in a
country other than Indonesia and the United States, shipped out of that
company's inventory. In accordance with section 772(a) of the Act, we
have applied the EP methodology for sales made through the first
channel of distribution noted above because they were made by the
respondent and exported from Indonesia to the first unaffiliated
purchaser in the United States prior to importation.
Regarding the second channel of distribution noted above, PD/TK/IK
claimed that it was affiliated with all but one of the trading
companies used in this distribution channel \12\ because it: (1) Was
involved in agreements legally binding the trading companies to buy all
products they sell from PD/TK/IK and its affiliates; and (2) exercised
almost total control of the trading companies' day-to-day operations,
including establishing all prices and sales agreements with the U.S.
customers. We have analyzed the information on the record with respect
to this affiliation claim and preliminarily find that the trading
companies are affiliated with PD/TK/IK pursuant to section 771(33)(G)
of the Act given that there is, in essence, an agent relationship in
which PD/TK/IK controls each trading company used in this second
channel of distribution. Evidence on the record indicates that, among
other things, PD/TK/IK establishes all prices and sales agreements with
the U.S. customer, the affiliated trading companies do not inventory
subject merchandise, and the merchandise is shipped directly from the
respondent to the U.S. customer. See e.g., Coated Free Sheet Paper from
Indonesia: Notice of Preliminary Determination of Sales at Less Than
Fair Value and Postponement of Final Determination, 72 FR 30753, 30755
(June 4, 2007) (unchanged in Notice of Final Determination of Sales at
Less Than Fair Value: Coated Free Sheet Paper from Indonesia, 72 FR
60636 (October 25, 2007)) (CFS from Indonesia). Accordingly, we have
applied EP methodology for sales made through this second channel of
distribution because they were made by the producer's affiliate outside
the United States to the first unaffiliated purchaser in the United
States prior to importation. We intend to examine each trading
company's involvement in the U.S. sales process and the affiliation
claim further at verification.
---------------------------------------------------------------------------
\12\ The remaining trading company involved in this channel of
distribution also made sales of subject merchandise to unaffiliated
customers in the United States out of its inventory. PD/TK/IK's
claim of affiliation with this company is discussed in the context
of the third channel of distribution below.
---------------------------------------------------------------------------
Regarding the third channel of distribution noted above, PD/TK/IK
claimed that it was affiliated with the trading company involved in
this distribution channel by reason of a common parent company
(Purinusa), which owns a majority of the shares in each company, as
well as certain common board members. Based on the record evidence, we
find that PD/TK/IK is affiliated with this company pursuant to section
771(33)(F) of the Act because they are under the common control of
Purinusa. Accordingly, we have applied EP methodology for sales made
through this third channel of distribution because they were made by
the producer's affiliate outside the United States to the first
unaffiliated purchaser in the United States prior to importation.
PD/TK/IK claimed that a portion of its U.S. sales through
affiliated trading companies during the POI involved an affiliated U.S.
company. PD/TK/IK reported these sales as CEP sales. According to PD/
TK/IK, the U.S. company at issue was affiliated by reason of an
exclusive selling agent arrangement with PD/TK/IK during the POI. After
analyzing the information on the record with respect to this
affiliation claim, we preliminarily find that the U.S. company is not
affiliated with PD/TK/IK because the written agreement between PD/TK/IK
and this company does not establish the exclusive nature of the
relationship. The U.S. company is not precluded from selling
merchandise produced by other manufacturers, and there is no evidence
that PD/TK/IK otherwise has the ability to control this company. See,
e.g., CFS from Indonesia, at 72 FR 30755; and Notice of Final
Determination of Sales at Less Than Fair Value: Carbon and Certain
Alloy Steel Wire Rod from Mexico, 67 FR 55800 (August 30, 2002), and
accompanying Issues and Decision Memorandum at Comment 1c. Accordingly,
we have applied EP methodology (vs. CEP methodology) to these sales for
purposes of the preliminary determination. We intend to examine the
U.S. company's involvement in the U.S. sales process and PD/TK/IK's
affiliation claim further at verification.
We based EP on the packed FOB, CFR, CIF, or DDU prices to
unaffiliated purchasers in the United States. We adjusted the starting
price, where appropriate, for billing adjustments. In accordance with
section 772(c)(2)(A) of the Act, we made deductions, where appropriate,
for foreign inland freight from plant to the port of exportation,
insurance (including domestic, marine, and U.S. inland), freight and
warehousing expenses (incurred on sales of subject merchandise sold out
of the inventory of an affiliated trading company located in a third
country), international freight (including foreign and U.S. brokerage
and handling expenses and U.S. inland freight), and U.S. importation
fees. We also added freight revenue, where applicable, and capped it by
the amount of freight expenses incurred, in accordance with our
practice. See Certain Orange Juice from Brazil: Final Results of
Antidumping Administrative Review, 74 FR 40167 (August 11, 2009), and
accompanying Issues and Decision Memorandum at Comment 3.
Normal Value
A. Home Market Viability and Comparison-Market Selection
To determine whether there is a sufficient volume of sales in the
home market to serve as a viable basis for calculating NV (i.e., the
aggregate volume of home market sales of the foreign like product is
equal to or greater than five percent of the aggregate volume of U.S.
sales), we compared PD/TK/IK's volume of home market sales of the
foreign like product to the volume of U.S. sales of the subject
merchandise. See section 773(a)(1)(C) of the Act. Based on this
comparison, we determined that PD/TK/IK had a viable home market during
the POI. Consequently, we based NV on home market sales.
B. Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on sales in the comparison market at
the same level of trade (LOT) as the EP or CEP. Pursuant to 19 CFR
351.412(c)(1), the NV LOT is that of the starting-price sales in the
comparison market or, when NV is based on constructed value (CV),
[[Page 24890]]
that of the sales from which we derive selling, general and
administrative expenses (SG&A) and profit. For EP, the U.S. LOT is also
the level of the starting-price sale, which is usually from exporter to
importer. For CEP, it is the level of the constructed sale from the
exporter to the importer.
To determine whether NV sales are at a different LOT than EP or CEP
sales, we examine stages in the marketing process and selling functions
along the chain of distribution between the producer and the
unaffiliated customer. See 19 CFR 351.412(c)(2). If the comparison-
market sales are at a different LOT, and the difference affects price
comparability, as manifested in a pattern of consistent price
differences between the sales on which NV is based and comparison-
market sales at the LOT of the export transaction, we make an LOT
adjustment under section 773(a)(7)(A) of the Act. Finally, for CEP
sales, if the NV level is more remote from the factory than the CEP
level and there is no basis for determining whether the difference in
levels between NV and CEP affects price comparability, we adjust NV
under section 773(a)(7)(B) of the Act (the CEP-offset provision). See
Notice of Final Determination of Sales at Less Than Fair Value: Certain
Cut-to-Length Carbon Steel Plate from South Africa, 62 FR 61731, 61732
(Nov. 19, 1997).
In this investigation, we obtained information from PD/TK/IK
regarding the marketing stages involved in making their reported home
market and U.S. sales, including a description of the selling
activities performed by the respondent (and its affiliates) for each
channel of distribution.
PD/TK/IK reported that it made EP sales in the U.S. market through
the following general channels of distribution: (1) Direct sales to
U.S. customers (Channel 1); (2) direct sales through affiliated trading
companies (Channel 2); and (3) out-of-inventory sales through an
affiliated trading company (Channel 3). PD/TK/IK stated that its U.S.
sales were made at the same LOT, regardless of distribution channel. We
examined the selling activities performed for all three channels and
found that PD/TK/IK performed the following selling functions for all
three channels: Sales forecasting, strategic/economic planning,
personnel training/exchange, order input/processing, provision of
direct sales personnel, packing, payment of commissions, and freight
and delivery services. Regarding sales through Channel 2, we found
that, in addition to the selling functions performed by PD/TK/IK on
these sales, the trading companies further performed the following
selling functions: Order input/processing and payment of commissions.
Regarding sales through Channel 3, we found that the trading company
performed the following selling functions: Sales promotion, inventory
maintenance, order input/processing, provision of direct sales
personnel, sales/marketing support, technical assistance, freight and
delivery services, and repacking. These selling activities can be
generally grouped into four categories for analysis: (1) Sales and
marketing; (2) freight and delivery; (3) inventory maintenance and
warehousing; and (4) warranty and technical support. Accordingly, we
found that PD/TK/IK (and its affiliates) performed sales and marketing
and freight and delivery services for all U.S. sales. We also note that
PD/TK/IK's affiliated trading company performed certain selling
activities (e.g., inventory maintenance and technical services) for PD/
TK/IK's sales through Channel 3 that were not performed for PD/TK/IK's
sales through Channels 1 and 2. However, there is no evidence on the
record to support finding these differences to be material selling
function distinctions significant enough to warrant a separate LOT in
the U.S. market, as the respondent did not provide information on the
extent to which the selling activities identified above are performed
in one channel or the other. Therefore, we preliminarily determine that
there is one LOT in the U.S. market.
With respect to the home market, PD/TK/IK made sales through a
single channel of distribution (i.e., sales to unaffiliated customers
through an affiliated reseller).\13\ We examined the selling activities
performed for this channel and found that PD/TK/IK performed the
following selling functions: Sales forecasting, strategic/economic
planning, personnel training/exchange, packing, inventory maintenance,
order input/processing, provision of direct sales personnel, technical
assistance, after-sales services, and freight and delivery services. In
addition, PD/TK/IK's affiliated reseller performed the following sales
functions: Sales forecasting, strategic/economic planning, personnel
training/exchange, advertising, sales promotion, distributor/dealer
training, inventory maintenance, order input/processing, provision of
direct sales personnel, sales/marketing support, market research,
technical assistance, provision of cash discounts, and after-sales
services. Accordingly, based on the four selling function categories
identified above, we find that PD/TK/IK and its affiliated reseller
performed sales and marketing, freight and delivery services, inventory
maintenance and warehousing, and warranty and technical services in the
home market. Because all sales in the home market were made through a
single distribution channel, we preliminarily determine that there is
one LOT in the home market.
---------------------------------------------------------------------------
\13\ PD/TK/IK reported that it also made some sales directly to
unaffiliated customers in the home market. However, these sales were
not included in the home market database PD/TK/IK submitted to the
Department. Given that the quantity of these sales constitute an
insignificant percentage of the total home market sales quantity
that PD/TK/IK reported in its home market sales database, we have
excluded these sales from our preliminary LOT (and margin) analysis.
See, e.g., Notice of Final Determination of Sales at Less Than Fair
Value and Negative Final Determination of Critical Circumstances:
Certain Color Television Receivers From the People's Republic of
China, 69 FR 20594 (April 16, 2004), and accompanying Issues and
Decision Memorandum at Comment 27.
---------------------------------------------------------------------------
Finally, we compared the EP LOT to the home market LOT and found
that the home market selling functions differed from the U.S. selling
functions with respect to: (1) Inventory maintenance and technical
services performed in the home market that are performed only on
certain sales to the United States; and (2) certain sales and marketing
activities performed in the home market that are either not performed
on U.S. sales or are performed only on certain U.S. sales. However,
there is no evidence on the record to support a finding that these
differences are significant enough to distinguish the home market LOT
from the EP LOT, as the respondent did not provide information on the
extent to which the selling activities identified above are performed
in one market or the other. Notwithstanding this fact, we note that
given that PD/TK/IK sold at only one LOT in the home market, and there
is no additional information on the record that would allow for an LOT
adjustment, no LOT adjustment is possible for PD/TK/IK.
C. Cost of Production Analysis
Based on our analysis of the petitioners' sales-below-cost of
production (COP) allegation in the petition, we found reasonable
grounds to believe or suspect that coated paper sales were made in
Indonesia at prices below the COP, and initiated a country-wide cost
investigation. See section 773(b)(2)(A)(i) of the Act and Initiation
Notice at 74 FR 53713. Accordingly, we conducted a sales-below-cost
investigation to determine whether PD/TK/IK's sales were made at prices
below their COP.
[[Page 24891]]
1. Calculation of COP
In accordance with section 773(b)(3) of the Act, we calculated COP
based on the sum of the cost of materials and fabrication for the
foreign like product, plus an amount for general and administrative
expenses (G&A), and financial expenses. See ``Test of Home Market Sales
Prices'' section below for treatment of home market selling expenses
and packing costs. We relied on the COP data submitted by PD/TK/IK in
the April 15, 2010, response to section D of the Department's
questionnaire, except where noted below.
1. We applied the major input rule under section 773(f)(3) of the
Act to PD/TK's purchases of certain pulp from an affiliated supplier.
As a result, we adjusted PD/TK's reported cost of manufacturing to
reflect the higher of transfer price, market price or COP for pulp.
Regarding the affiliated supplier's COP of the pulp, we currently have
outstanding requests for information concerning affiliated log
purchases by this company used in the production of pulp and will
consider this information for the final determination.
2. We applied the transactions disregarded rule under section
773(f)(2) of the Act to purchases of certain pulp from affiliated
parties, and we adjusted PD's reported cost of manufacturing to the
higher of transfer price or market price.
3. We eliminated the inter-company profit arising from the
affiliated pulp transactions between IK and PD/TK. We currently have
outstanding requests for information concerning affiliated log
purchases by IK used in the production of pulp and will consider this
information for the final determination.
4. We adjusted the COP of certain pulp PD/TK purchased from IK and
an affiliated supplier to reflect the total financial expenses of an
affiliated trading company.
5. We revised PD/TK/IK's G&A expense ratios to include
unconsolidated non-operating expenses in the numerator of the ratios.
6. We revised the reported financial expense ratio of the parent
company (Purinusa) to exclude that portion of the interest income
offset that we are unable to determine was generated from short-term
interest-bearing assets from the numerator of the ratio.
7. We revised the denominator of the financial expense ratio to
exclude TK's and PD's reported packing expenses.
8. We applied the parent company's financial expense ratio against
each company's reported total cost of manufacturing to determine the
company's per-unit financial expenses.
See the April 28, 2010, Memorandum from LaVonne Clark and Robert
Greger, Senior Accountants, to Neal M. Halper, Director, Office of
Accounting, entitled, ``Cost of Production and Constructed Value
Calculation Adjustments for the Preliminary Determination--PT. Pabrik
Kertas Tjiwi Kimia Tbk., PT. Pindo Deli Pulp and Paper, and PT Indah
Kiat Pulp and Paper Tbk.,'' for further discussion.
For the preliminary determination, we have relied upon the POI
weighted-average COP PD/TK/IK reported, as adjusted above. However,
depending on the extent to which production costs changed throughout
the cost reporting period, we are considering whether it is more
appropriate to use the Department's alternative cost averaging
methodology for the final determination. Accordingly, we have requested
product-specific quarterly cost information from PD/TK/IK for
consideration prior to the final determination.
2. Test of Home Market Sales Prices
On a product-specific basis, we compared the adjusted weighted-
average COP to the home market sales prices of the foreign like
product, as required under section 773(b) of the Act, to determine
whether the sale prices were below the COP. The sales prices were
exclusive of any applicable discounts, movement charges, direct and
indirect selling expenses, and packing expenses. For purposes of this
comparison, we used the COP exclusive of selling and packing expenses.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C)(i) of the Act, where less than 20
percent of the respondent's sales of a given product during the POI are
at prices less than the COP, we do not disregard any below-cost sales
of that product, because we determined that the below-cost sales were
not made in ``substantial quantities.'' Where 20 percent or more of the
respondent's sales of a given product during the POI were at prices
less than the COP, we determine that such sales have been made in
``substantial quantities.'' See section 773(b)(2)(C) of the Act.
Further, we determine that the sales were made within an extended
period of time, in accordance with section 773(b)(2)(B) of the Act,
because we examine below-cost sales occurring during the entire POI. In
accordance with section 773(b)(2)(D) of the Act, we compare prices to
the POI-average costs to determine whether the prices permit recovery
of costs within a reasonable period of time.
In this case, we found that, for certain products, more than 20
percent of PD/TK/IK's sales were made at prices less than the COP and,
in addition, such sales did not provide for the recovery of costs
within a reasonable period of time. We, therefore, excluded these sales
and used the remaining sales as the basis for determining NV, in
accordance with section 773(b)(1) of the Act.
4. Calculation of Normal Value Based on Comparison-Market Prices
We based NV for PD/TK/IK on packed CIF prices to unaffiliated
customers. Where appropriate, we made adjustments for quantity
discounts. We made deductions for movement expenses, including foreign
inland freight, warehousing, and insurance expenses, under section
773(a)(6)(B)(ii) of the Act.
Pursuant to section 773(a)(6)(C)(iii) of the Act and 19 CFR
351.410(b), we made, where appropriate, circumstance-of-sale
adjustments for imputed credit expenses, bank charges, courier
expenses, and commissions. Regarding commissions, PD/TK/IK incurred
commissions only in relation to U.S. sales. Therefore, pursuant to 19
CFR 351.410(e), we offset U.S. commissions by the lesser of the
commission amount or home market indirect selling expenses.
Furthermore, we made adjustments for differences in costs
attributable to differences in the physical characteristics of the
merchandise in accordance with section 773(a)(6)(C)(ii) of the Act and
19 CFR 351.411. We also deducted home market packing costs and added
U.S. packing costs in accordance with sections 773(a)(6)(A) and (B) of
the Act.
Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A(a) of the Act and 19 CFR 351.415 based on the exchange
rates in effect on the dates of the U.S. sales as certified by the
Federal Reserve Bank.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information relied upon in making our final determination for PD/
TK/IK.
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, we will direct
U.S. Customs and Border Protection (CBP) to suspend liquidation of all
entries of coated paper from Indonesia that are entered, or withdrawn
from warehouse, for consumption on or after the date of publication of
this notice in the Federal Register. We will also instruct CBP to
require a cash deposit or the posting of
[[Page 24892]]
a bond equal to the weighted-average dumping margins, as indicated in
the chart below. These suspension-of-liquidation instructions will
remain in effect until further notice.
The weighted-average dumping margins are as follows:
------------------------------------------------------------------------
Weighted-
Average
Manufacturer/Exporter margin
(percent)
------------------------------------------------------------------------
PT. Pabrik Kertas Tjiwi Kimia Tbk./PT. Pindo Deli Pulp and 10.62
Paper/PT. Indah Kiat Pulp and Paper Tbk...................
All Others................................................. 10.62
------------------------------------------------------------------------
All Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated ``All
Others'' rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins established for exporters
and producers individually investigated, excluding any zero or de
minimis margins, and any margins determined entirely under section 776
of the Act. As mentioned above in this notice, the collapsed entity
(i.e., PD/TK/IK) is the only respondent in this investigation for which
the Department calculated a company-specific rate. Therefore, for
purposes of determining the all-others rate and pursuant to section
735(c)(5)(A) of the Act, we are using the weighted-average dumping
margin calculated for PD/TK/IK, as referenced above. See, e.g., CFS
from Indonesia, 72 FR at 60637; and Notice of Final Determination of
Sales at Less Than Fair Value: Stainless Steel Sheet and Strip in Coils
From Italy, 64 FR 30750, 30755 (June 8, 1999).
Disclosure
The Department will disclose to parties the calculations performed
in connection with this preliminary determination within five days of
the date of publication of this notice. See 19 CFR 351.224(b).
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters, who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. The Department's regulations, at 19 CFR 351.210(e)(2),
require that requests by respondents for postponement of a final
determination be accompanied by a request for extension of provisional
measures from a four-month period to not more than six months.
On April 13, 2010, PD/TK/IK requested that in the event of an
affirmative preliminary determination in this investigation, the
Department postpone its final determination by 60 days. At the same
time, PD/TK/IK requested that the Department extend the application of
the provisional measures prescribed under section 733(d) of the Act and
19 CFR 351.210(e)(2), from a four-month period to a six-month period.
In accordance with section 735(a)(2) of the Act and 19 CFR
351.210(b)(2), because (1) our preliminary determination is
affirmative, (2) the requesting exporters account for a significant
proportion of exports of the subject merchandise, and (3) no compelling
reasons for denial exist, we are granting this request and are
postponing the final determination until no later than 135 days after
the publication of this notice in the Federal Register. Suspension of
liquidation will be extended accordingly.
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of the Department's preliminary affirmative determination. If the
Department's final determination is affirmative, the ITC will determine
before the later of 120 days after the date of this preliminary
determination or 45 days after our final determination whether imports
of coated paper from Indonesia are materially injuring, or threatening
material injury to, the U.S. industry (see section 735(b)(2) of the
Act). Because we are postponing the deadline for our final
determination to 135 days from the date of the publication of this
preliminary determination, the ITC will make its final determination no
later than 45 days after our final determination.
Public Comment
Interested parties are invited to comment on the preliminary
determination. Interested parties may submit case briefs to the
Department no later than seven days after the date of the issuance of
the last sales or cost verification report in this proceeding. See 19
CFR 351.309(c). Rebuttal briefs, the content of which is limited to the
issues raised in the case briefs, must be filed within five days from
the deadline date for the submission of case briefs. See 19 CFR
351.309(d). A list of authorities used, a table of contents, and an
executive summary of issues should accompany any briefs submitted to
the Department. Executive summaries should be limited to five pages
total, including footnotes. Further, we request that parties submitting
briefs and rebuttal briefs provide the Department with a copy of the
public version of such briefs on diskette.
In accordance with section 774 of the Act, the Department will hold
a public hearing, if timely requested, to afford interested parties an
opportunity to comment on arguments raised in case or rebuttal briefs,
provided that such a hearing is requested by an interested party. See
also 19 CFR 351.310(d). If a timely request for a hearing is made in
this investigation, we intend to hold the hearing two days after the
rebuttal brief deadline date at the U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW., Washington, DC 20230, at a time
and in a room to be determined. See 19 CFR 351.310. Parties should
confirm by telephone, the date, time, and location of the hearing 48
hours before the scheduled date.
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, U.S.
Department of Commerce, Room 1870, within 30 days of the publication of
this notice. Requests should contain: (1) The party's name, address,
and telephone number; (2) the number of participants; and (3) a list of
the issues to be discussed. At the hearing, oral presentations will be
limited to issues raised in the briefs.
This determination is issued and published pursuant to sections
733(f) and 777(i)(1) of the Act.
Dated: April 28, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-10682 Filed 5-5-10; 8:45 am]
BILLING CODE 3510-DS-P