Certain Uncoated Paper From Indonesia: Final Determination of Sales at Less Than Fair Value, 3101-3104 [2016-01023]

Download as PDF tkelley on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 81, No. 12 / Wednesday, January 20, 2016 / Notices submitted a notification of proposed production activity to the FTZ Board for its facilities in Asheboro and Candor, North Carolina. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on January 5, 2016. KFI currently has authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see Board Order 1745, 76 FR 11426, March 2, 2011). Board Order 1745 authorized the production of upholstered furniture (sofas, sleep sofas, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (5.79 million square yards per year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process (i.e., authorized fabrics). All foreign upholstery fabrics other than micro-denier suede finished with a hot caustic soda solution process (i.e., unauthorized fabrics) used in KFI’s production within Subzone 230D are subject to full customs duties. The current request seeks to extend KFI’s existing FTZ authority indefinitely (with no increase in the company’s annual quantitative limit of 5.79 million square yards) and to add foreign-status leather and certain polyurethane-type fabrics to the scope of authority. KFI has also requested that the authority under Board Order 1745 be revised by modifying Condition #2 to allow KFI to admit unauthorized fabrics to Subzone 230D in privileged foreign status (19 CFR 146.41), which would preclude any change in customs classification through transformation under FTZ procedures. Pursuant to 15 CFR 400.14(b), additional FTZ authority would be limited to the specific foreignstatus materials and components and specific finished products described in the submitted notification (as described below) and subsequently authorized by the FTZ Board. Production under FTZ procedures could exempt KFI from customs duty payments on the foreign-status fabrics used in export production. On its domestic sales, KFI would be able to apply the finished upholstery cover set (i.e., furniture part) or finished furniture duty rate (free) for the authorized fabrics and the additional fabrics (indicated below). Customs duties also could possibly be deferred or reduced on foreign-status production equipment. Authority to admit imported fabrics to Subzone 230D in non-privileged foreign status (19 CFR 146.42)—under which VerDate Sep<11>2014 18:12 Jan 19, 2016 Jkt 238001 the fabrics’ customs classification could change through transformation under FTZ procedures—would only involve micro-denier suede upholstery fabrics finished with a hot caustic soda solution process (classified within HTSUS Headings 5407, 5512, 5515, 5516, 5801, 5903, 6001, 6005, and 6006), polyurethane fabrics backed with ground leather (5903.20.2500), upholstery leather (Heading 4107), and wet coagulation process, 100 percent polyurethane coated fabrics (5903.20.2500), as detailed in the notification (duty rate ranges from free to 17.2%). Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board’s Executive Secretary at the address below. The closing period for their receipt is February 29, 2016. A copy of the notification will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230–0002, and in the ‘‘Reading Room’’ section of the FTZ Board’s Web site, which is accessible via www.trade.gov/ftz. For further information, contact Pierre Duy at Pierre.Duy@trade.gov or (202) 482–1378. Dated: January 13, 2016. Andrew McGilvray, Executive Secretary. [FR Doc. 2016–01031 Filed 1–19–16; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–560–828] Certain Uncoated Paper From Indonesia: Final Determination of Sales at Less Than Fair Value Enforcement and Compliance, International Trade Administration, Commerce. SUMMARY: The Department of Commerce (the Department) determines that certain uncoated paper (uncoated 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 735(a) of the Tariff Act of 1930, as amended (the Act). The period of investigation (POI) is January 1, 2014, through December 31, 2014. The final dumping margins of sales at LTFV are listed below in the ‘‘Final Determination’’ section of this notice. DATES: Effective: January 20, 2016. AGENCY: PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 3101 FOR FURTHER INFORMATION CONTACT: Blaine Wiltse, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–6345. SUPPLEMENTARY INFORMATION: Background On August 26, 2015, the Department published the Preliminary Determination of this antidumping duty (AD) investigation.1 The following events occurred since the Preliminary Determination was issued. On October 30, 2015, we received case briefs from Petitioners 2 and PT Anugerah Kertas Utama/PT Riau Andalan Kertas/APRIL Fine Paper Macao Commercial Offshore Limited (collectively, APRIL). On November 4, 2015, we received rebuttal briefs from the same interested parties. On November 12, 2015, we held a public hearing at the request of Petitioners. The Department is issuing a scope comments decision memorandum for the final determinations of the AD and countervailing duty (CVD) investigations of uncoated paper, which is incorporated by reference in, and hereby adopted by, this final determination.3 Scope of the Investigation and Scope Comments The product covered by this investigation is uncoated paper from Indonesia. For a complete description of the scope of this investigation, see the ‘‘Scope of the Investigation,’’ in Appendix I of this notice, which incorporates changes made subsequent to the Preliminary Determination. On October 2, 2015, Gartner Studios, Inc. submitted its case brief on the scope 1 See Certain Uncoated Paper From Indonesia: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 80 FR 51771 (August 26, 2015) (Preliminary Determination). 2 Petitioners in this investigation are United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union; Domtar Corporation; Finch Paper LLC; P.H. Glatfelter Company; and Packaging Corporation of America. 3 See the Department’s memorandum to the file titled, ‘‘Less-Than-Fair-Value Investigations of Certain Uncoated Paper from Australia, Brazil, the People’s Republic of China, Indonesia, and Portugal; and Countervailing Duty Investigations of Certain Uncoated Paper from the People’s Republic of China and Indonesia: Scope Comments Decision Memorandum for the Final Determinations,’’ dated January 8, 2016 (Final Scope Decision Memorandum). E:\FR\FM\20JAN1.SGM 20JAN1 3102 Federal Register / Vol. 81, No. 12 / Wednesday, January 20, 2016 / Notices of the investigations.4 On October 19, 2015, American Greetings Corporation (American Greetings) submitted its case brief regarding the scope of the investigations.5 On October 29, 2015, Petitioners submitted their rebuttal brief regarding the scope of the investigations.6 The Department is issuing a scope comments decision memorandum for the final determinations of the AD and CVD investigations of uncoated paper, which is incorporated by reference in, and hereby adopted by, this final determination.7 As explained in the Final Scope Decision Memorandum, to facilitate the scope’s administrability and enforcement, we have clarified the scope language such that uncoated paper with ‘‘final printed content’’ is excluded from the scope of the investigations. at https://access.trade.gov and it is available to all parties in the Central Records Unit, room B–8024 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https:// enforcement.trade.gov/frn/. The signed and electronic versions of the Issues and Decision Memorandum are identical in content. Analysis of Comments Received Changes Since the Preliminary Determination All issues raised in the case and rebuttal briefs by parties in this investigation that are not related to the scope of this investigation are addressed in the Issues and Decision Memorandum, which is incorporated by reference by, and hereby adopted by, this notice.8 A list of the issues raised is attached to this notice as Appendix II. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users Verification As provided in section 782(i) of the Act, in September 2015, the Department verified the sales and cost information submitted by APRIL for use in our final determination. We used standard verification procedures, including an examination of relevant accounting and production records, and original source documents provided by APRIL.9 Based on our analysis of the comments received and findings at verification, we made certain changes to the margin calculations for APRIL. For a discussion of these changes, see the ‘‘Margin Calculations’’ section of the Issues and Decision Memorandum. In addition, we changed the dumping margin assigned to two additional mandatory respondents in this investigation, Great Champ Trading Limited (Great Champ) and Indah Kiat Pulp & Paper TBK/Pabrik Kertas Tjiwi Kimia/PT. Pindo Deli Pulp and Paper Mills (APP/SMG). Because these companies failed to respond to the Department’s questionnaire, in the Preliminary Determination, we based the preliminary dumping margin for these companies on adverse facts available (AFA), in accordance with sections 776(a) and (b) of the Act and 19 CFR 351.308. As AFA, we preliminarily assigned a rate of 51.75 percent (i.e., the highest transaction-specific dumping margin for APRIL). For the final determination, we assigned these companies an AFA margin of 17.39 percent, which is the highest transaction-specific dumping margin for APRIL. For further discussion, see the Issues and Decision Memorandum at Comment 1. We also revised the allothers rate. 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 margins determined entirely under section 776 of the Act. For the Final Determination, the Department calculated the ‘‘all-others’’ rate based on APRIL’s final dumping margin of 2.05 percent. Final Determination The Department determines that the final weighted-average dumping margins are as follows: Weighted-average dumping margin (percent) Exporter/Manufacturer Great Champ Trading Limited ..................................................................................................................................................... Indah Kiat Pulp & Paper TBK/Pabrik Kertas Tjiwi Kimia/PT. Pindo Deli Pulp and Paper Mills (APP/SMG) ............................. April Fine Paper Macao Limited/PT Anugerah Kertas Utama/PT Riau Andalan Kertas (APRIL) .............................................. All-Others ..................................................................................................................................................................................... Disclosure tkelley on DSK4VPTVN1PROD with NOTICES We will disclose the calculations performed to interested parties within five days of the public announcement of this final determination in accordance with 19 CFR 351.224(b). 4 See Letter to Secretary Pritzker, from Gartner Studios, Inc., ‘‘Certain Uncoated Paper from Australia, Brazil, the People’s Republic of China, Indonesia, and Portugal: Case Brief’’ (October 2, 2015). 5 See Letter to Secretary Pritzker, from American Greetings, ‘‘Certain Uncoated Paper from Australia, Brazil, the People’s Republic of China, Indonesia, and Portugal: Case Brief of American Greetings Corporation’’ (October 19, 2015). 6 See Letter to Secretary Pritzker, from Petitioners, ‘‘Certain Uncoated Paper from Australia, Brazil, the VerDate Sep<11>2014 18:12 Jan 19, 2016 Jkt 238001 17.39 17.39 2.05 2.05 In accordance with section 735(c)(1)(B) of the Act, the Department will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all appropriate entries of uncoated paper from Indonesia, as described in Appendix I of this notice, which were entered, or withdrawn from warehouse, for consumption on or after August 26, 2015, the date of publication of the preliminary determination of this investigation in the Federal Register. People’s Republic of China, Indonesia, and Portugal: Scope Rebuttal Brief’’ (October 29, 2015). 7 See Final Scope Decision Memorandum. 8 See Memorandum to Paul Piquado, ‘‘Issues and Decision Memorandum for the Final Affirmative Determination in the Less-Than-Fair-Value Investigation of Certain Uncoated Paper from Indonesia’’ (January 8, 2016) (Issues and Decision Memorandum). 9 See Memorandum to the File from Heidi K. Schriefer and Ji Young Oh, Senior Accountants, entitled ‘‘Verification of the Cost Response of APRIL Fine Paper Macao Offshore Limited in the Antidumping Duty Investigation of Certain Uncoated Paper from Indonesia,’’ dated October 20, 2015; and Memorandum to the File from Blaine Wiltse, Senior Analyst, entitled ‘‘Verification of the Sales Response of PT Anugerah Kertas Utama (AKU), PT Riau Andalan Kertas (RAK), and APRIL Fine Paper Macao Commercial Offshore Limited (AFPM) (collectively, APRIL) in the Antidumping Duty Investigation of Certain Uncoated Paper from Indonesia,’’ dated October 22, 2015. Continuation of Suspension of Liquidation PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 E:\FR\FM\20JAN1.SGM 20JAN1 Federal Register / Vol. 81, No. 12 / Wednesday, January 20, 2016 / Notices Further, CBP shall require a cash deposit equal to the estimated amount by which the normal value exceeds the U.S. price, as follows: (1) The rate for the mandatory respondents listed above will be the respondent-specific rates we determined in this final determination; (2) if the exporter is not a firm identified in this investigation, but the producer is, the rate will be the rate established for the producer of the subject merchandise; and (3) the rate for all other producers or exporters will be 2.05 percent. Consistent with our practice,10 where the product under investigation is also subject to a concurrent CVD investigation, we instruct CBP to require a cash deposit less the amount of the countervailing duty determined to constitute an export subsidy.11 Therefore, in the event that a CVD order is issued and suspension of liquidation is resumed in the companion CVD investigation on uncoated paper from Indonesia, the Department will instruct CBP to require cash deposits adjusted for export subsidies, as appropriate, found in the final determination of the companion CVD investigation. Specifically, for cash deposit purposes, we will subtract from the applicable cash deposit rate that portion of the CVD rate attributable to the export subsidies found in the final affirmative countervailing duty determination for each respondent (i.e., 57.78 percent for Great Champ and APP/SMG).12 After this adjustment, the resulting cash deposit rates will be 0.00 percent for Great Champ and APP/SMG. Because the Department found no export subsidies for APRIL, the cash deposit rate for APRIL and firms covered by the all-others rate will remain 2.05 percent. The instructions suspending liquidation will remain in effect until further notice. tkelley on DSK4VPTVN1PROD with NOTICES 10 The Department terminated the suspension of liquidation associated with the CVD investigation effective October 27, 2015. See CBP message no. 5300305 dated October 27, 2015. Therefore, until and unless suspension of liquidation is resumed, we will not adjust the AD cash deposit rate for collection of duties associated with export subsidies. 11 See, e.g., Notice of Final Determination of Sales at Less Than Fair Value: Carbazole Violet Pigment 23 From India, 69 FR 67306, 67307 (November 17, 2004); and Notice of Final Determination of Sales at Less Than Fair Value and Negative Critical Circumstances Determination: Bottom Mount Combination Refrigerator-Freezers From the Republic of Korea, 77 FR 17413 (March 26, 2012). 12 See the Memorandum to the File, through Shawn Thompson, Program Manager, Office II, AD/ CVD Operations, from Blaine Wiltse, Senior Analyst, Office II, AD/CVD Operations, entitled, ‘‘Placing Information on the Record: Export Subsidies Calculated in the Countervailing Duty Final Determination of Certain Uncoated Paper from Indonesia,’’ dated January 8, 2016. VerDate Sep<11>2014 18:12 Jan 19, 2016 Jkt 238001 International Trade Commission (ITC) Notification In accordance with section 735(d) of the Act, we will notify the ITC of the final affirmative determination of sales at LTFV. Because the final determination in this proceeding is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of uncoated paper from Indonesia no later than 45 days after our final determination. If the ITC determines that material injury or threat of material injury does not exist, the proceeding will be terminated and all cash deposits will be refunded. If the ITC determines that such injury does exist, the Department will issue an antidumping duty order directing CBP to assess, upon further instruction by the Department, antidumping duties on all imports of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation. Notification Regarding Administrative Protective Orders (APO) This notice serves as a reminder to parties subject to an APO of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and the terms of an APO is a violation subject to sanction. This determination and this notice are issued and published pursuant to sections 735(d) and 777(i)(1) of the Act. Dated: January 8, 2016. Paul Piquado, Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigation The merchandise covered by the investigation includes uncoated paper in sheet form; weighing at least 40 grams per square meter but not more than 150 grams per square meter; that either is a white paper with a GE brightness level 1 of 85 or higher 1 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 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 00010 Fmt 4703 Sfmt 4703 3103 or is a colored paper; whether or not surfacedecorated, printed (except as described below), embossed, perforated, or punched; irrespective of the smoothness of the surface; and irrespective of dimensions (Certain Uncoated Paper). Certain Uncoated Paper includes (a) uncoated free sheet paper that meets this scope definition; (b) uncoated ground wood paper produced from bleached chemithermo-mechanical pulp (BCTMP) that meets this scope definition; and (c) any other uncoated paper that meets this scope definition regardless of the type of pulp used to produce the paper. Specifically excluded from the scope are (1) paper printed with final content of printed text or graphics and (2) lined paper products, typically school supplies, composed of paper that incorporates straight horizontal and/or vertical lines that would make the paper unsuitable for copying or printing purposes. For purposes of this scope definition, paper shall be considered ‘‘printed with final content’’ where at least one side of the sheet has printed text and/ or graphics that cover at least five percent of the surface area of the entire sheet. Imports of the subject merchandise are provided for under Harmonized Tariff Schedule of the United States (HTSUS) categories 4802.56.1000, 4802.56.2000, 4802.56.3000, 4802.56.4000, 4802.56.6000, 4802.56.7020, 4802.56.7040, 4802.57.1000, 4802.57.2000, 4802.57.3000, and 4802.57.4000. Some imports of subject merchandise may also be classified under 4802.62.1000, 4802.62.2000, 4802.62.3000, 4802.62.5000, 4802.62.6020, 4802.62.6040, 4802.69.1000, 4802.69.2000, 4802.69.3000, 4811.90.8050 and 4811.90.9080. While HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive. Appendix II List of Topics Discussed in the Issues and Decision Memorandum: I. Summary II. Background III. Period of Investigation IV. Margin Calculations V. List of Comments VI. Discussion of Comments Comment 1: Selection and Corroboration of the AFA Rate for Great Champ and APP/ SMG Comment 2: Stock Lot Sales Comment 3: Unreported Home Market Rebates Comment 4: Additional Changes to APRIL’s Margin Program Comment 5: APRIL’s Variable and Fixed Overhead Costs Comment 6: APRIL’s Costs Associated with Broke Paper Comment 7: Adjustments to APRIL’s Cost Reconciliation ‘‘Colored paper’’ as used in this scope definition means a paper with a hue other than white that reflects one of the primary colors of magenta, yellow, and cyan (red, yellow, and blue) or a combination of such primary colors. E:\FR\FM\20JAN1.SGM 20JAN1 3104 Federal Register / Vol. 81, No. 12 / Wednesday, January 20, 2016 / Notices Comment 8: Calculating APRIL’s Financial Expenses VII. Conclusion [FR Doc. 2016–01023 Filed 1–19–16; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–560–829] Certain Uncoated Paper From Indonesia: Final Affirmative Countervailing Duty Determination Enforcement and Compliance, International Trade Administration, Commerce. SUMMARY: The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of certain uncoated paper from Indonesia. For information on the estimated subsidy rates, see the ‘‘Final Determination and Suspension of Liquidation’’ section of this notice. The period of investigation (POI) is January 1, 2014, through December 31, 2014. DATES: Effective: January 20, 2016. FOR FURTHER INFORMATION CONTACT: David Goldberger or Brandon Custard, Office II, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–4136 or (202) 482–1823, respectively. AGENCY: Background The events that occurred since the Department published the Preliminary Determination 1 on June 29, 2015, are discussed in the Issues and Decision Memorandum, which is hereby incorporated in this notice.2 This memorandum also details the changes we made since the Preliminary Determination to the subsidy rates tkelley on DSK4VPTVN1PROD with NOTICES Certain Uncoated Paper From Indonesia: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Determination, 80 FR 36971 (June 29, 2015) (Preliminary Determination), and accompanying Decision Memorandum for the Preliminary Affirmative Countervailing Duty Determination in the Countervailing Duty Investigation of Certain Uncoated Paper from Indonesia (Preliminary Decision Memorandum). 2 See memorandum entitled, ‘‘Countervailing Duty Investigation of Certain Uncoated Paper from Indonesia: Issues and Decision Memorandum for the Final Affirmative Determination,’’ dated concurrently with this notice (Issues and Decision Memorandum). VerDate Sep<11>2014 18:12 Jan 19, 2016 Jkt 238001 Scope of the Investigation The product covered by this investigation is certain uncoated paper. For a complete description of the scope of the investigation, see Appendix I. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation and the issues raised in the case and rebuttal briefs by parties in this investigation are discussed in the Issues and Decision Memorandum, dated concurrently with this notice. A list of the issues that parties raised, and to which we responded in the Issues and Decision Memorandum, is attached to this notice as Appendix II. Final Determination and Suspension of Liquidation In accordance with section 705(c)(1)(B)(i) of the Act, we calculated a rate for PT Anugrah Kertas Utama (AKU) and APRIL Fine Paper Macao Commercial Offshore Limited (AFPM) (collectively, the APRIL companies). Section 705(c)(5)(A)(i) of the Act states that, for companies not individually investigated, we will determine an ‘‘allothers’’ rate equal to the weightedaverage countervailable subsidy rates established for exporters and producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. Where the rates for investigated companies are zero or de minimis, or based entirely on facts otherwise available, section 705(c)(5)(A)(ii) of the Act instructs the Department to establish an ‘‘all-others’’ rate using ‘‘any reasonable method.’’ As discussed above, we determined Great Champ’s and IK’s/TK’s rates based entirely on AFA in accordance with sections 776(a) and (b) of the Act. Therefore, we used the rate calculated for the APRIL companies as the ‘‘all-others’’ rate. We intend to disclose to parties the calculations performed in this proceeding within five days of the public announcement of this final determination in accordance with 19 CFR 351.224(b). We determine the countervailable subsidy rates to be: Use of Facts Otherwise Available, Including Adverse Inferences SUPPLEMENTARY INFORMATION: 1 See calculated for the mandatory respondents and all other producers/ exporters. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov, and is available to all parties in the Central Records Unit, room B8024 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https:// enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and the electronic version of the Issues and Decision Memorandum are identical in content. For purposes of this final determination, we continue to rely on facts available and to draw an adverse inference, in accordance with sections 776(a) and (b) of the Act, to determine the subsidy rates for Great Champ Trading Limited (Great Champ) and Indah Kiat Pulp & Paper TBK (IK) and Pabrik Kertas Tjiwi Kimia (TK) 3 because these companies failed to participate in this investigation and the Government of Indonesia (GOI) failed to provide requested information with respect to certain programs upon which we initiated an investigation.4 3 We found IK, TK, and PT Pindo Deli Pulp and Paper Mills to be cross-owned and, therefore, are assigning them a single countervailing duty rate. For further discussion, see Memorandum entitled, ‘‘Cross-Ownership of Asia Pulp and Paper/Sinar Mas Group Companies: Countervailing Duty Investigation of Uncoated Paper from Indonesia,’’ dated June 22, 2015. 4 See Issues and Decision Memorandum, at pages 3–9. PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 Company APRIL Fine Paper Macao Commercial Offshore Limited/PT Anugrah Kertas Utama/PT Riau Andalan Kertas/PT Intiguna Primatama/PT Riau Andalan Pulp & Paper/PT Esensindo Cipta Cemerlang Great Champ Trading Limited .. Indah Kiat Pulp & Paper TBK/ Pabrik Kertas Tjiwi Kimia/PT Pindo Deli Pulp and Paper Mills ....................................... All-Others .................................. Subsidy rate (percent) 21.22 104.00 109.15 21.22 As a result of our affirmative Preliminary Determination, pursuant to sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise from Indonesia which were entered or withdrawn from warehouse, for consumption on or after June 29, 2015, the date of the publication of the Preliminary Determination in the Federal Register. E:\FR\FM\20JAN1.SGM 20JAN1

Agencies

[Federal Register Volume 81, Number 12 (Wednesday, January 20, 2016)]
[Notices]
[Pages 3101-3104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01023]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-828]


Certain Uncoated Paper From Indonesia: Final Determination of 
Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
certain uncoated paper (uncoated 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 735(a) of the Tariff Act of 1930, as amended 
(the Act). The period of investigation (POI) is January 1, 2014, 
through December 31, 2014. The final dumping margins of sales at LTFV 
are listed below in the ``Final Determination'' section of this notice.

DATES: Effective: January 20, 2016.

FOR FURTHER INFORMATION CONTACT: Blaine Wiltse, AD/CVD Operations, 
Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
6345.

SUPPLEMENTARY INFORMATION:

Background

    On August 26, 2015, the Department published the Preliminary 
Determination of this antidumping duty (AD) investigation.\1\ The 
following events occurred since the Preliminary Determination was 
issued.
---------------------------------------------------------------------------

    \1\ See Certain Uncoated Paper From Indonesia: Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination, 80 FR 51771 (August 26, 2015) (Preliminary 
Determination).
---------------------------------------------------------------------------

    On October 30, 2015, we received case briefs from Petitioners \2\ 
and PT Anugerah Kertas Utama/PT Riau Andalan Kertas/APRIL Fine Paper 
Macao Commercial Offshore Limited (collectively, APRIL). On November 4, 
2015, we received rebuttal briefs from the same interested parties. On 
November 12, 2015, we held a public hearing at the request of 
Petitioners.
---------------------------------------------------------------------------

    \2\ Petitioners in this investigation are United Steel, Paper 
and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and 
Service Workers International Union; Domtar Corporation; Finch Paper 
LLC; P.H. Glatfelter Company; and Packaging Corporation of America.
---------------------------------------------------------------------------

    The Department is issuing a scope comments decision memorandum for 
the final determinations of the AD and countervailing duty (CVD) 
investigations of uncoated paper, which is incorporated by reference 
in, and hereby adopted by, this final determination.\3\
---------------------------------------------------------------------------

    \3\ See the Department's memorandum to the file titled, ``Less-
Than-Fair-Value Investigations of Certain Uncoated Paper from 
Australia, Brazil, the People's Republic of China, Indonesia, and 
Portugal; and Countervailing Duty Investigations of Certain Uncoated 
Paper from the People's Republic of China and Indonesia: Scope 
Comments Decision Memorandum for the Final Determinations,'' dated 
January 8, 2016 (Final Scope Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation and Scope Comments

    The product covered by this investigation is uncoated paper from 
Indonesia. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix I of 
this notice, which incorporates changes made subsequent to the 
Preliminary Determination.
    On October 2, 2015, Gartner Studios, Inc. submitted its case brief 
on the scope

[[Page 3102]]

of the investigations.\4\ On October 19, 2015, American Greetings 
Corporation (American Greetings) submitted its case brief regarding the 
scope of the investigations.\5\ On October 29, 2015, Petitioners 
submitted their rebuttal brief regarding the scope of the 
investigations.\6\ The Department is issuing a scope comments decision 
memorandum for the final determinations of the AD and CVD 
investigations of uncoated paper, which is incorporated by reference 
in, and hereby adopted by, this final determination.\7\ As explained in 
the Final Scope Decision Memorandum, to facilitate the scope's 
administrability and enforcement, we have clarified the scope language 
such that uncoated paper with ``final printed content'' is excluded 
from the scope of the investigations.
---------------------------------------------------------------------------

    \4\ See Letter to Secretary Pritzker, from Gartner Studios, 
Inc., ``Certain Uncoated Paper from Australia, Brazil, the People's 
Republic of China, Indonesia, and Portugal: Case Brief'' (October 2, 
2015).
    \5\ See Letter to Secretary Pritzker, from American Greetings, 
``Certain Uncoated Paper from Australia, Brazil, the People's 
Republic of China, Indonesia, and Portugal: Case Brief of American 
Greetings Corporation'' (October 19, 2015).
    \6\ See Letter to Secretary Pritzker, from Petitioners, 
``Certain Uncoated Paper from Australia, Brazil, the People's 
Republic of China, Indonesia, and Portugal: Scope Rebuttal Brief'' 
(October 29, 2015).
    \7\ See Final Scope Decision Memorandum.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation that are not related to the scope of this 
investigation are addressed in the Issues and Decision Memorandum, 
which is incorporated by reference by, and hereby adopted by, this 
notice.\8\ A list of the issues raised is attached to this notice as 
Appendix II. The Issues and Decision Memorandum is a public document 
and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov and it is available to all parties in the Central 
Records Unit, room B-8024 of the main Department of Commerce building. 
In addition, a complete version of the Issues and Decision Memorandum 
can be accessed directly at https://enforcement.trade.gov/frn/. The signed and electronic versions of the Issues and 
Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \8\ See Memorandum to Paul Piquado, ``Issues and Decision 
Memorandum for the Final Affirmative Determination in the Less-Than-
Fair-Value Investigation of Certain Uncoated Paper from Indonesia'' 
(January 8, 2016) (Issues and Decision Memorandum).
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Verification

    As provided in section 782(i) of the Act, in September 2015, the 
Department verified the sales and cost information submitted by APRIL 
for use in our final determination. We used standard verification 
procedures, including an examination of relevant accounting and 
production records, and original source documents provided by APRIL.\9\
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    \9\ See Memorandum to the File from Heidi K. Schriefer and Ji 
Young Oh, Senior Accountants, entitled ``Verification of the Cost 
Response of APRIL Fine Paper Macao Offshore Limited in the 
Antidumping Duty Investigation of Certain Uncoated Paper from 
Indonesia,'' dated October 20, 2015; and Memorandum to the File from 
Blaine Wiltse, Senior Analyst, entitled ``Verification of the Sales 
Response of PT Anugerah Kertas Utama (AKU), PT Riau Andalan Kertas 
(RAK), and APRIL Fine Paper Macao Commercial Offshore Limited (AFPM) 
(collectively, APRIL) in the Antidumping Duty Investigation of 
Certain Uncoated Paper from Indonesia,'' dated October 22, 2015.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and findings at 
verification, we made certain changes to the margin calculations for 
APRIL. For a discussion of these changes, see the ``Margin 
Calculations'' section of the Issues and Decision Memorandum. In 
addition, we changed the dumping margin assigned to two additional 
mandatory respondents in this investigation, Great Champ Trading 
Limited (Great Champ) and Indah Kiat Pulp & Paper TBK/Pabrik Kertas 
Tjiwi Kimia/PT. Pindo Deli Pulp and Paper Mills (APP/SMG). Because 
these companies failed to respond to the Department's questionnaire, in 
the Preliminary Determination, we based the preliminary dumping margin 
for these companies on adverse facts available (AFA), in accordance 
with sections 776(a) and (b) of the Act and 19 CFR 351.308. As AFA, we 
preliminarily assigned a rate of 51.75 percent (i.e., the highest 
transaction-specific dumping margin for APRIL). For the final 
determination, we assigned these companies an AFA margin of 17.39 
percent, which is the highest transaction-specific dumping margin for 
APRIL. For further discussion, see the Issues and Decision Memorandum 
at Comment 1. We also revised the all-others rate.

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 margins determined entirely under section 776 of 
the Act. For the Final Determination, the Department calculated the 
``all-others'' rate based on APRIL's final dumping margin of 2.05 
percent.

Final Determination

    The Department determines that the final weighted-average dumping 
margins are as follows:

------------------------------------------------------------------------
                                                       Weighted-average
                Exporter/Manufacturer                   dumping margin
                                                           (percent)
------------------------------------------------------------------------
Great Champ Trading Limited.........................               17.39
Indah Kiat Pulp & Paper TBK/Pabrik Kertas Tjiwi                    17.39
 Kimia/PT. Pindo Deli Pulp and Paper Mills (APP/SMG)
April Fine Paper Macao Limited/PT Anugerah Kertas                   2.05
 Utama/PT Riau Andalan Kertas (APRIL)...............
All-Others..........................................                2.05
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed to interested parties 
within five days of the public announcement of this final determination 
in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of uncoated paper from 
Indonesia, as described in Appendix I of this notice, which were 
entered, or withdrawn from warehouse, for consumption on or after 
August 26, 2015, the date of publication of the preliminary 
determination of this investigation in the Federal Register.

[[Page 3103]]

    Further, CBP shall require a cash deposit equal to the estimated 
amount by which the normal value exceeds the U.S. price, as follows: 
(1) The rate for the mandatory respondents listed above will be the 
respondent-specific rates we determined in this final determination; 
(2) if the exporter is not a firm identified in this investigation, but 
the producer is, the rate will be the rate established for the producer 
of the subject merchandise; and (3) the rate for all other producers or 
exporters will be 2.05 percent.
    Consistent with our practice,\10\ where the product under 
investigation is also subject to a concurrent CVD investigation, we 
instruct CBP to require a cash deposit less the amount of the 
countervailing duty determined to constitute an export subsidy.\11\ 
Therefore, in the event that a CVD order is issued and suspension of 
liquidation is resumed in the companion CVD investigation on uncoated 
paper from Indonesia, the Department will instruct CBP to require cash 
deposits adjusted for export subsidies, as appropriate, found in the 
final determination of the companion CVD investigation. Specifically, 
for cash deposit purposes, we will subtract from the applicable cash 
deposit rate that portion of the CVD rate attributable to the export 
subsidies found in the final affirmative countervailing duty 
determination for each respondent (i.e., 57.78 percent for Great Champ 
and APP/SMG).\12\ After this adjustment, the resulting cash deposit 
rates will be 0.00 percent for Great Champ and APP/SMG. Because the 
Department found no export subsidies for APRIL, the cash deposit rate 
for APRIL and firms covered by the all-others rate will remain 2.05 
percent.
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    \10\ The Department terminated the suspension of liquidation 
associated with the CVD investigation effective October 27, 2015. 
See CBP message no. 5300305 dated October 27, 2015. Therefore, until 
and unless suspension of liquidation is resumed, we will not adjust 
the AD cash deposit rate for collection of duties associated with 
export subsidies.
    \11\ See, e.g., Notice of Final Determination of Sales at Less 
Than Fair Value: Carbazole Violet Pigment 23 From India, 69 FR 
67306, 67307 (November 17, 2004); and Notice of Final Determination 
of Sales at Less Than Fair Value and Negative Critical Circumstances 
Determination: Bottom Mount Combination Refrigerator-Freezers From 
the Republic of Korea, 77 FR 17413 (March 26, 2012).
    \12\ See the Memorandum to the File, through Shawn Thompson, 
Program Manager, Office II, AD/CVD Operations, from Blaine Wiltse, 
Senior Analyst, Office II, AD/CVD Operations, entitled, ``Placing 
Information on the Record: Export Subsidies Calculated in the 
Countervailing Duty Final Determination of Certain Uncoated Paper 
from Indonesia,'' dated January 8, 2016.
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    The instructions suspending liquidation will remain in effect until 
further notice.

International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of the final affirmative determination of sales at LTFV. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2) of the Act, the ITC will make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of uncoated paper from Indonesia no later than 45 
days after our final determination. If the ITC determines that material 
injury or threat of material injury does not exist, the proceeding will 
be terminated and all cash deposits will be refunded. If the ITC 
determines that such injury does exist, the Department will issue an 
antidumping duty order directing CBP to assess, upon further 
instruction by the Department, antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders (APO)

    This notice serves as a reminder to parties subject to an APO of 
their responsibility concerning the disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely notification of the return or destruction of APO 
materials, or conversion to judicial protective order, is hereby 
requested. Failure to comply with the regulations and the terms of an 
APO is a violation subject to sanction.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.

     Dated: January 8, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the investigation includes uncoated 
paper in sheet form; weighing at least 40 grams per square meter but 
not more than 150 grams per square meter; that either is a white 
paper with a GE brightness level \1\ of 85 or higher or is a colored 
paper; whether or not surface-decorated, printed (except as 
described below), embossed, perforated, or punched; irrespective of 
the smoothness of the surface; and irrespective of dimensions 
(Certain Uncoated Paper).
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    \1\ 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 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. ``Colored paper'' as used in this scope definition means a 
paper with a hue other than white that reflects one of the primary 
colors of magenta, yellow, and cyan (red, yellow, and blue) or a 
combination of such primary colors.
---------------------------------------------------------------------------

    Certain Uncoated Paper includes (a) uncoated free sheet paper 
that meets this scope definition; (b) uncoated ground wood paper 
produced from bleached chemi-thermo-mechanical pulp (BCTMP) that 
meets this scope definition; and (c) any other uncoated paper that 
meets this scope definition regardless of the type of pulp used to 
produce the paper.
    Specifically excluded from the scope are (1) paper printed with 
final content of printed text or graphics and (2) lined paper 
products, typically school supplies, composed of paper that 
incorporates straight horizontal and/or vertical lines that would 
make the paper unsuitable for copying or printing purposes. For 
purposes of this scope definition, paper shall be considered 
``printed with final content'' where at least one side of the sheet 
has printed text and/or graphics that cover at least five percent of 
the surface area of the entire sheet.
    Imports of the subject merchandise are provided for under 
Harmonized Tariff Schedule of the United States (HTSUS) categories 
4802.56.1000, 4802.56.2000, 4802.56.3000, 4802.56.4000, 
4802.56.6000, 4802.56.7020, 4802.56.7040, 4802.57.1000, 
4802.57.2000, 4802.57.3000, and 4802.57.4000. Some imports of 
subject merchandise may also be classified under 4802.62.1000, 
4802.62.2000, 4802.62.3000, 4802.62.5000, 4802.62.6020, 
4802.62.6040, 4802.69.1000, 4802.69.2000, 4802.69.3000, 4811.90.8050 
and 4811.90.9080. While HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope of the investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum:

I. Summary
II. Background
III. Period of Investigation
IV. Margin Calculations
V. List of Comments
VI. Discussion of Comments
    Comment 1: Selection and Corroboration of the AFA Rate for Great 
Champ and APP/SMG
    Comment 2: Stock Lot Sales
    Comment 3: Unreported Home Market Rebates
    Comment 4: Additional Changes to APRIL's Margin Program
    Comment 5: APRIL's Variable and Fixed Overhead Costs
    Comment 6: APRIL's Costs Associated with Broke Paper
    Comment 7: Adjustments to APRIL's Cost Reconciliation

[[Page 3104]]

    Comment 8: Calculating APRIL's Financial Expenses
VII. Conclusion

[FR Doc. 2016-01023 Filed 1-19-16; 8:45 am]
 BILLING CODE 3510-DS-P
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