[Federal Register Volume 76, Number 44 (Monday, March 7, 2011)]
[Notices]
[Pages 12323-12325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5123]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-827]


Certain Cased Pencils From the People's Republic of China: Final 
Results of the Expedited Third Sunset Review of the Antidumping Duty 
Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

DATES: Effective Date: March 7, 2011.

SUMMARY: On November 1, 2010, the Department of Commerce 
(``Department'') published in the Federal Register the notice of 
initiation of the third sunset review of the antidumping duty order on 
certain cased pencils (``pencils'') from the People's Republic of China 
(``PRC''), pursuant to section 751(c) of the Tariff Act of 1930, as 
amended (``the Act''). See Initiation of Five-Year (``Sunset'') Review, 
75 FR 67082 (November 1, 2010). The Department has conducted an 
expedited sunset review of this order pursuant to section 751(c)(3)(B) 
of the Act and 19

[[Page 12324]]

CFR 351.218(e)(1)(ii)(C)(2). As a result of the sunset review, the 
Department finds that revocation of the antidumping duty order would be 
likely to lead to continuation or recurrence of dumping at the margins 
identified in the ``Final Results of Review'' section of this notice.

FOR FURTHER INFORMATION CONTACT: Seth Isenberg or Yasmin Nair, 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-
0588 and (202) 482-3813, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The antidumping duty order that covers pencils from the PRC was 
published in the Federal Register on December 28, 1994. See Antidumping 
Duty Order: Certain Cased Pencils from the People's Republic of China, 
59 FR 66909 (December 28, 1994), amended at Certain Cased Pencils From 
the People's Republic of China; Notice of Amended Final Determination 
of Sales at Less Than Fair Value and Amended Antidumping Duty Order in 
Accordance With Final Court Decision, 64 FR 25275 (May 11, 1999). On 
November 1, 2010, the Department initiated the third sunset review of 
this order, pursuant to section 751(c) of the Act. See Initiation of 
Five-Year (``Sunset'') Review, 75 FR 67082 (November 1, 2010). The 
Department received a notice of intent to participate from domestic 
interested parties Sanford Corp.; General Pencil Co., Inc.; and 
Musgrave Pencil Co. (collectively, ``Petitioners''), within the 
deadline specified in 19 CFR 351.218(d)(1)(i). Petitioners claimed 
interested party status under section 771(9)(C) of the Act, as 
manufacturers of a domestic-like product in the United States. The 
Department also received a notice of intent to participate from Dixon 
Ticonderoga Company (``Dixon''), within the deadline specified in 19 
CFR 351.218(d)(1)(i). Dixon claimed interested party status under 
section 771(4)(B) of the Act, as an importer of the subject merchandise 
that is related to a foreign producer and exporter of the subject 
merchandise.
    On December 1, 2010, the Department received a substantive response 
from Petitioners. In addition to meeting the other requirements of 19 
CFR 351.218(d)(3), Petitioners provided information on the volume and 
value of exports of pencils from the PRC. The Department did not 
receive a substantive response from Dixon. The Department did not 
receive adequate substantive responses, or any response at all, from 
any respondent interested parties to this proceeding. As a result, 
pursuant to section 751(c)(3)(B) of the Act and 19 CFR 
351.218(e)(1)(ii)(C)(2), the Department conducted an expedited (120-
day) sunset review of the antidumping duty order on pencils from the 
PRC.

Scope of the Order

    Imports covered by the order are shipments of certain cased pencils 
of any shape or dimension (except as described below) which are writing 
and/or drawing instruments that feature cores of graphite or other 
materials, encased in wood and/or man-made materials, whether or not 
decorated and whether or not tipped (e.g., with erasers, etc.) in any 
fashion, and either sharpened or unsharpened. The pencils subject to 
the order are currently classifiable under subheading 9609.10.00 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''). 
Specifically excluded from the scope of the order are mechanical 
pencils, cosmetic pencils, pens, non-cased crayons (wax), pastels, 
charcoals, chalks, and pencils produced under U.S. patent number 
6,217,242, from paper infused with scents by the means covered in the 
above-referenced patent, thereby having odors distinct from those that 
may emanate from pencils lacking the scent infusion. Also excluded from 
the scope of the order are pencils with all of the following physical 
characteristics: (1) Length: 13.5 or more inches; (2) sheath diameter: 
not less than one-and-one quarter inches at any point (before 
sharpening); and (3) core length: Not more than 15 percent of the 
length of the pencil.
    In addition, pencils with all of the following physical 
characteristics are excluded from the scope of the order: Novelty jumbo 
pencils that are octagonal in shape, approximately ten inches long, one 
inch in diameter before sharpening, and three-and-one eighth inches in 
circumference, composed of turned wood encasing one-and-one half inches 
of sharpened lead on one end and a rubber eraser on the other end.
    Although the HTSUS subheading is provided for convenience and 
customs purposes, the written description of the scope of the order is 
dispositive.

Analysis of Comments Received

    All issues raised in this review are addressed in the Issues and 
Decision Memorandum (``Decision Memorandum'') from Christian Marsh, 
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for 
Import Administration, dated March 1, 2011, which is hereby adopted by 
this notice. The issues discussed in the Decision Memorandum include 
the likelihood of continuation or recurrence of dumping and the 
magnitude of the margins likely to prevail if the order were revoked. 
Parties can find a complete discussion of all issues raised in this 
review and the corresponding recommendations in this public memorandum, 
which is on file in the Central Records Unit in room 7046 of the main 
Commerce building.
    In addition, a complete version of the Decision Memorandum can be 
accessed directly on the Internet at http://ia.ita.doc.gov/frn. The 
paper copy and electronic version of the Decision Memorandum are 
identical in content.

Final Results of Review

    Pursuant to sections 752(c)(1) and (3) of the Act, we determine 
that revocation of the antidumping duty order on pencils from the PRC 
would be likely to lead to continuation or recurrence of dumping at the 
following weighted-average percentage margins:

------------------------------------------------------------------------
                                                                Margin
             Manufacturers/producers/exporters                (percent)
------------------------------------------------------------------------
China First Pencil Co., Ltd................................         8.60
Shanghai Three Star Stationery Industry Corp \1\...........         0.00
Shanghai Lansheng Corp.....................................        19.36
Shanghai Foreign Trade Corp................................        11.15
Guangdong Provincial Stationery & Sporting Goods Import &          53.65
 Export Corp \2\...........................................

[[Page 12325]]

 
PRC-Wide Rate..............................................        53.65
------------------------------------------------------------------------
\1\ In the original order and subsequent administrative reviews, China
  First Pencil Co. Ltd (``China First'') and Shanghai Three Star
  Stationery Industry Co., Ltd. (``Three Star'') were treated as
  separate entities. In the 1999-2000 administrative review, the
  Department determined that China First and Three Star should
  henceforth be treated as a single entity. See Certain Cased Pencils
  from the People's Republic of China; Final Results and Partial
  Rescission of Antidumping Duty Administrative Review, 67 FR 48612
  (July 25, 2002) (``99-00 Pencils Final'') and accompanying Issues and
  Decision Memorandum at Comment 12, amended at Notice of Amended Final
  Results and Partial Rescission of Antidumping Duty Administrative
  Review: Certain Cased Pencils from the People's Republic of China, 67
  FR 59049 (September 19, 2002). The Department continued to treat China
  First and Three Star as a single entity in the four successive
  administrative reviews. In the 2006-2007 administrative review, the
  Department determined that due to new evidence regarding the
  relationship between China First and Three Star there was no longer a
  sufficient basis to combine the two companies. See Certain Cased
  Pencils from the People's Republic of China; Final Results and Partial
  Rescission of Antidumping Duty Administrative Review, 74 FR 33406
  (July 13, 2009) and accompanying Issues and Decision Memorandum at
  Comment 1, amended at Certain Cased Pencils from the People's Republic
  of China: Amended Final Results of Antidumping Duty Administrative
  Review, 74 FR 45177 (September 1, 2009). The Department continues to
  view China First and Three Star as separate and distinct entities as a
  result of the 2006-2007 administrative review determination. See
  Certain Cased Pencils From the People's Republic of China; Final
  Results of the Antidumping Duty Administrative Review, 75 FR 38980
  (July 7, 2010).
\2\ The Department originally excluded from the order exports made by
  Guangdong Provincial Stationery & Sporting Goods Import & Export Corp.
  (``Guangdong'') and produced by Three Star. However, the Department
  determined in the 1999-2000 administrative review that the Guangdong/
  Three Star sales chain was no longer excluded from the order, and that
  all merchandise exported by Guangdong was subject to the cash deposit
  requirements at the PRC-Wide Rate. See 99-00 Pencils Final and
  accompanying Issues and Decision Memorandum at Comment 1, amended at
  67 FR 59049.

    This notice also serves as the only reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely 
notification of the return or destruction of APO materials or 
conversion to judicial protective orders is hereby requested. Failure 
to comply with the regulations and terms of an APO is a violation which 
is subject to sanction.
    We are issuing and publishing the final results and notice in 
accordance with sections 751(c), 752(c), and 777(i)(1) of the Act.

     Dated: March 1, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-5123 Filed 3-4-11; 8:45 am]
BILLING CODE 3510-DS-P