[Federal Register Volume 75, Number 221 (Wednesday, November 17, 2010)]
[Notices]
[Pages 70201-70203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29118]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-959]
Certain Coated Paper Suitable for High-Quality Print Graphics
Using Sheet-Fed Presses From the People's Republic of China: Amended
Final Affirmative Countervailing Duty Determination and Countervailing
Duty Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of
Commerce (``the Department'') and the International Trade Commission
(``ITC''), the Department is issuing a countervailing duty order on
certain coated paper suitable for high-quality print graphics using
sheet-fed presses (``coated paper'') from the People's Republic of
China (``PRC''). Also, as explained in this notice, the Department is
amending its final determination to correct certain ministerial errors.
DATES: Effective Date: November 17, 2010.
FOR FURTHER INFORMATION CONTACT: David Neubacher, Jennifer Meek, and
Mary Kolberg, AD/CVD Operations, Office 1, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW., Washington, DC 20230; telephone:
(202) 482-5823, (202) 482-2778, and (202) 482-1785, respectively.
Background
On September 27, 2010, the Department published its final
determination that countervailable subsidies are being provided to
producers and exporters of coated paper from the PRC. See Certain
Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed
Presses From the People's Republic of China: Final Affirmative
Countervailing Duty Determination, 75 FR 59212 (September 27, 2010)
(``Final Determination'').
On November 10, 2010, the ITC notified the Department of its final
determination pursuant to sections 705(b)(1)(A)(ii) and 705(d) of the
Tariff Act of 1930, as amended (``the Act''), that an industry in the
United States is threatened with material injury by reason of
subsidized imports of subject merchandise from the PRC. See Certain
Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed
Presses From China and Indonesia, USITC Investigation Nos. 701-TA-470-
471 and 731-TA-1169-1170 (Final), Inv., USITC Publication 4192
(November 2010).
Scope of the Order
The merchandise covered by this order includes coated paper and
paperboard\1\ 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; \2\
[[Page 70202]]
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.
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\1\ ``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 coated paper,
paperboard typically is referred to as ``cover'', to distinguish it
from ``text.''
\2\ 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.
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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 that
meets this scope definition; and (c) any other coated paper and
paperboard that meets this scope definition.
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, 4810.32, 4810.39 and 4810.92. While HTSUS subheadings are
provided for convenience and customs purposes, the written description
of the scope of this order is dispositive.
Amendment to the Final Determination
On October 6, 2010, Appleton Coated LLC, NewPage Corporation, S.D.
Warren Company d/b/a Sappi Fine Paper North America, and United Steel,
Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial
and Service Workers International Union (collectively, ``Petitioners'')
filed timely allegations that the Department made ministerial errors in
its Final Determination. In summary, Petitioners alleged that the
Department made certain errors in the calculations of the preferential
lending to the coated paper industry program and the adjusted
consolidated sales denominator for respondent Gold East (Jiangsu) Co.,
Ltd. (``GE''). No interested party filed a rebuttal to Petitioners'
allegations.
After analyzing the allegations, we have determined, in accordance
with 19 CFR 351.224(e), that we made certain ministerial errors that
Petitioners alleged in the calculations. See Memorandum to Susan H.
Kuhbach, Acting Deputy Assistant Secretary, AD/CVD Operations, from The
Team, Office 1, AD/CVD Operations, ``Countervailing Duty Investigation:
Certain Coated Paper Suitable for High-Quality Print Graphics Using
Sheet-Fed Presses From the People's Republic of China: Ministerial
Errors for Final Determination'' (November 12, 2010) (``Ministerial
Error Memo''). Parties can find a complete discussion of all issues
raised by Petitioners and the corresponding recommendations in this
memorandum, a public version of which is on file in the Central Records
Unit, Room 7046 of the main Commerce building.
After correcting the ministerial errors above, we determine the ad
valorem subsidy rates for the relevant programs are: (1) 10.54 percent
under ``Preferential Lending to the Coated Paper Industry;'' (2) 1.11
percent under ``Two Free, Three Half;'' (3) 1.38 percent under ``Income
Tax Subsidies for FIEs Based on Geographic Location;'' (4) 0.35 percent
under ``Exemption from Maintenance and Construction Taxes and Education
Surcharges for FIEs;'' and (5) 3.51 percent under the ``Value Added-Tax
and Tariff Exemptions on Imported Equipment.'' See Attachments 4-5 of
the Ministerial Error Memo.
As a result of these corrections, the countervailing duty rate for
GE, Gold Huasheng Paper Co., Ltd., and its reported affiliated cross-
owned companies (collectively, ``Gold companies'') changed from 17.64
percent to 19.46 percent. The countervailing duty rate for the other
respondent in the coated paper investigation, Shandong Sun Paper
Industry Co., Ltd. and Yanzhou Tianzhang Paper Industry Co., Ltd.
(collectively, ``Sun companies''), also changed because the Gold
companies' rates for certain programs, which are included in the
calculation of Sun companies' adverse facts available rate, were
revised based on the Ministerial Error Memo. The Sun companies' rate
changed from 178.03 percent to 202.84 percent. Because the all-others
rate is based on the Gold companies' rate, the countervailing duty rate
for all-others changed from 17.64 percent to 19.46 percent. In
accordance with 19 CFR 351.224(e), we are amending the Final
Determination to reflect these changes.
Countervailing Duty Order
According to section 706(b)(2) of the Act, duties shall be assessed
on subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the date of publication of the ITC's notice of
final determination if that determination is based upon the threat of
material injury. Section 706(b)(1) of the Act states, ``{l{time} f the
Commission, in its final determination under section 705(b), finds
material injury or threat of material injury which, but for the
suspension of liquidation under section 703(d)(2), would have led to a
finding of material injury, then entries of the merchandise subject to
the countervailing duty order, the liquidation of which has been
suspended under section 703(d)(2), shall be subject to the imposition
of countervailing duties under section 701(a).'' In addition, section
706(b)(2) of the Act requires U.S. Customs and Border Protection
(``CBP'') to refund any cash deposits or bonds of estimated
countervailing duties posted before the date of publication of the
ITC's final affirmative determination, if the ITC's final determination
is based on threat other than the threat described in section 706(b)(1)
of the Act. Because the ITC's final determination in this case is based
on the threat of material injury and is not accompanied by a finding
that injury would have resulted but for the imposition of suspension of
liquidation of entries since the Department's Preliminary Determination
\3\ was published in the Federal Register, section 706(b)(2) of the Act
is applicable.
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\3\ See 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)
(``Preliminary Determination'').
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As a result of the ITC's determination and in accordance with
section 706(a)(1) of the Act, the Department will direct CBP to assess,
upon further instruction by the Department, countervailing duties equal
to the amount of the net countervailable subsidy for all relevant
entries of coated paper from the PRC. In accordance with section 706 of
the Act, the Department will direct CBP to reinstitute suspension of
liquidation,\4\
[[Page 70203]]
effective on the date of publication of the ITC's notice of final
determination in the Federal Register, and to require a cash deposit
for each entry of subject merchandise in an amount equal to the net
countervailable subsidy rates listed below. See section 706(a)(3) of
the Act. The all-others rate applies to all producers and exporters of
subject merchandise not specifically listed.
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\4\ The Department instructed CBP to discontinue the suspension
of liquidation on July 7, 2010, in accordance with section 703(d) of
the Act. Section 703(d) states that the suspension of liquidation
pursuant to a preliminary determination may not remain in effect for
more than four months. Entries of coated paper from the PRC made on
or after July 7, 2010, and prior to the date of publication of the
ITC's final determination in the Federal Register are not liable for
the assessment of countervailing duties because of the Department's
discontinuation, effective July 7, 2010, of the suspension of
liquidation.
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Net subsidy
Exporter/manufacturer rate
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Gold East Paper (Jiangsu) Co., Ltd, Gold Huasheng Paper 19.46
Co., Ltd., Gold East Trading (Hong Kong) Company Ltd.,
Ningbo Zhonghua Paper Co., Ltd., and Ningbo Asia Pulp &
Paper Co., Ltd.........................................
Shandong Sun Paper Industry Joint Stock Co., Ltd. and 202.84
Yanzhou Tianzhang Paper Industry Co., Ltd..............
All Others.............................................. 19.46
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Termination of the Suspension of Liquidation
The Department will instruct CBP to terminate the suspension of
liquidation for entries of coated paper from the PRC entered, or
withdrawn from warehouse, for consumption prior to the publication of
the ITC's notice of final determination. The Department will instruct
CBP to refund any cash deposits made and release any bonds posted with
respect to entries of coated paper entered of withdrawn from warehouse
for consumption on or after March 9, 2010 (i.e., the date of
publication of the Department's Preliminary Determination), but before
the date of publication of the ITC's final determination in the Federal
Register.
This notice constitutes the countervailing duty order with respect
to coated paper from the PRC, pursuant to section 706(a) of the Act.
Interested parties may contact the Department's Central Records Unit,
Room 7046 of the main Commerce Building, for copies of an updated list
of countervailing duty orders currently in effect.
This order is issued and published in accordance with section
706(a) of the Act, 19 CFR 351.224(e), and 19 CFR 351.211(b).
Dated: November 12, 2010.
Carole A. Showers,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-29118 Filed 11-16-10; 8:45 am]
BILLING CODE 3510-DS-P