[Federal Register Volume 75, Number 221 (Wednesday, November 17, 2010)]
[Notices]
[Pages 70206-70208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29120]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-560-824]
Certain Coated Paper Suitable for High-Quality Print Graphics
Using Sheet-Fed Presses From Indonesia: 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 U.S. 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 (certain coated paper) from Indonesia.
DATES: Effective Date: November 17, 2010.
FOR FURTHER INFORMATION CONTACT: Gene Calvert or Nicholas Czajkowski,
AD/CVD Operations, Office 6, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3586 and (202) 482-1395, respectively.
SUPPLEMENTARY INFORMATION:
Background
In accordance with section 705(d) of the Tariff Act of 1930, as
amended (the Act), on September 27, 2010, the Department published its
final determination in the countervailing duty investigation of certain
coated paper from Indonesia. See Certain Coated Paper Suitable for
High-Quality Print Graphics Using Sheet-Fed Presses from Indonesia:
Final Affirmative Countervailing Duty Determination, 75 FR 59209
(September 27, 2010), and accompanying Issues and Decision Memorandum
(Decision Memorandum).
On November 10, 2010, the Department placed on the record of this
investigation a memorandum,\1\ which identifies an unintentional
misstatement regarding our discount rate calculation for allocable
subsidies received by the mandatory company respondents, PT Pabrik
Kertas Tjiwi Kimia Tbk., PT Pindo Deli Pulp and Paper Mills, and PT
Indah Kiat Pulp and Paper, Tbk. Specifically, in the Decision
Memorandum, we stated that ``{t{time} he discount rate is intended to
calculate a present value of a future stream of benefits based on a
company's own internal rate of return or cost of borrowing (or
approximation thereof) and is based on lending rates in the
respondent's home market currency. * * *'' \2\ However, we should have
stated that the discount rate in this investigation is based on lending
rates in U.S. dollars.
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\1\ See the memorandum to Barbara E. Tillman, Director, AD/CVD
Operations, Office 6, ``Ministerial Error Allegation and
Identification of Misstatement in the Issues and Decision Memorandum
in the Instant Investigation,'' dated November 10, 2010. This public
document is available in the Central Records Unit, Room 7046, of the
main Department of Commerce building.
\2\ See Decision Memorandum at 59.
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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
Act, that a U.S. industry is threatened with material injury by reason
of subsidized imports of subject merchandise from Indonesia. See
Certain Coated Paper Suitable for High-Quality Print Graphics Using
Sheet-Fed Presses from China and Indonesia, USITC Publication 4192,
Investigation Nos. 701-TA-470-471 and 731-TA-1169-1170 (Final)
(November 2010). Pursuant to section 706(a) of the
[[Page 70207]]
Act, the Department is publishing a countervailing duty order on the
subject merchandise.
Scope of the Order
The scope of this order includes certain coated paper and
paperboard\3\ 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; \4\ 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).
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\3\ `` `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.' ''
\4\ 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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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, 4810.32, 4810.39 and 4810.92. While HTSUS subheadings are
provided for convenience and customs purposes, the written description
of the scope of the order is dispositive.
Countervailing Duty Order
In accordance with section 706(a)(1) of the Act, the Department
will direct U.S. Customs and Border Protection (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 certain coated paper from Indonesia.
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 the ITC's notice of final
determination if that determination is based upon threat of material
injury. Section 706(b)(1) of the Act states, ``If 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 CBP to refund any cash deposits or bonds of estimated
countervailing duties posted since the Department's preliminary
countervailing duty determination, if the ITC's final determination is
threat-based. 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 was published in the Federal Register, \5\ section
706(b)(2) of the Act is applicable.
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\5\ See Certain Coated Paper from Indonesia: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Countervailing Duty Determination with Final Antidumping Duty
Determination, 75 FR 10761 (March 9, 2010) (Preliminary
Determination).
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Therefore, the Department will direct CBP to reinstitute suspension
of liquidation,\6\ and to assess, upon further instruction from the
Department, countervailing duties on all unliquidated entries of
certain coated paper from Indonesia entered, or withdrawn from
warehouse, for consumption on or after the date of publication of the
ITC's notice of final determination of threat of injury in the Federal
Register.
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\6\ 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 suspension of liquidation
pursuant to a preliminary determination may not remain in effect for
more than four months. Entries of certain coated paper from
Indonesia 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 of the suspension of
liquidation, effective July 7, 2010.
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Cash Deposit Requirements
Pursuant to section 706(a)(3) of the Act, effective on the date of
publication of the ITC's notice of final determination in the Federal
Register, CBP will require, at the same time as importers would
normally deposit estimated duties, cash deposits for the subject
merchandise equal to the net subsidy rates listed below. The all-others
rate applies to all producers and exporters of subject merchandise not
specifically listed.
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Net subsidy
Producer/exporter rate
(percent)
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PT Pabrik Kertas Tjiwi Kimia, Tbk, PT Pindo Deli Pulp
and Paper Mills, PT Indah Kiat Pulp and Paper, Tbk.....
(i.e., APP/SMG)......................................... 17.94
All Others.............................................. 17.94
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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 also
instruct CBP to refund any cash deposits made, and to release any bonds
posted between March 9, 2010 (i.e., the date of publication of the
Department's Preliminary Determination) and on or before July 7, 2010,
the date on which the Department discontinued the suspension of
liquidation pursuant to section 703(d) of the Act.
This notice constitutes the countervailing duty order with respect
to certain coated paper from Indonesia, 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.
[[Page 70208]]
This order is issued and published in accordance with section
706(a) of the Act, and 19 CFR 351.211(b).
Dated: November 12, 2010.
Carole A. Showers,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-29120 Filed 11-16-10; 8:45 am]
BILLING CODE 3510-DS-P