[Federal Register Volume 74, Number 195 (Friday, October 9, 2009)]
[Notices]
[Pages 52176-52178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-24463]



[[Page 52176]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-894]


Certain Tissue Paper Products From the People's Republic of 
China: Final Results and Partial Rescission of the 2007-2008 
Antidumping Duty Administrative Review and Determination Not To Revoke 
in Part

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

SUMMARY: On April 6, 2009, the Department of Commerce (the Department) 
published the preliminary results of the 2007-2008 administrative 
review of the antidumping duty order on certain tissue paper products 
from the People's Republic of China (PRC) covering the period March 1, 
2007, through February 29, 2008. This administrative review covers 
three mandatory respondents. We invited interested parties to comment 
on the preliminary results.
    Based on our analysis of the comments received, we have made 
changes to the margin calculations. The weighted-average dumping 
margins are listed below in the section entitled ``Final Results of 
Review.''

DATES: Effective Date: October 9, 2009.

FOR FURTHER INFORMATION CONTACT: Brian Smith or Brandon Custard, 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-
1766 or (202) 482-1823, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 6, 2009, the Department published the preliminary results 
of this administrative review. See Certain Tissue Paper Products From 
the People's Republic of China: Preliminary Results and Partial 
Rescission of the 2007-2008 Administrative Review and Intent Not to 
Revoke Order in Part, 74 FR 15449 (April 6, 2009) (Preliminary 
Results). In response to the interested parties' requests, we extended 
the deadlines for submitting publicly available information (PAI) and 
case and rebuttal briefs for consideration in the final results of this 
administrative review.
    On May 8, 2009, Max Fortune Industrial Limited and Max Fortune 
(FEDTE) Paper Products Co., Ltd. (Max Fortune) submitted certain 
information to correct alleged errors with respect to its reported 
plastic bag consumption factors. On May 13, 2009, we determined that 
this submission contained untimely new factual information and returned 
it to Max Fortune in accordance with 19 CFR 351.302(d).
    On May 20, 2009, Max Fortune attempted to resubmit this 
information. The Department rejected the submission for the second time 
on May 27, 2009, under 19 CFR 351.302(d).
    On May 21, 2009, Max Fortune and the petitioner, Seaman Paper 
Company of Massachusetts, Inc., submitted PAI.
    On June 15 and 29, 2009, Max Fortune and the petitioner submitted 
case and rebuttal briefs, respectively. No party requested a hearing.
    On July 15, 2009, the Department postponed the final results of 
this review until October 3, 2009.\1\ See Notice of Extension of Time 
Limit for Final Results of Antidumping Duty Administrative Review: 
Certain Tissue Paper Products From the People's Republic of China, 74 
FR 35842 (July 21, 2009).
---------------------------------------------------------------------------

    \1\ Since October 3, 2009, is a Saturday, the final results are 
due on the next business day, October 5, 2009.
---------------------------------------------------------------------------

    We have conducted this administrative review in accordance with 
sections 751(a) and 777(i)(1) of the Tariff Act of 1930, as amended 
(the Act), 19 CFR 351.213, and 19 CFR 351.221.

Period of Review

    The period of review (POR) is March 1, 2007, through February 29, 
2008.

Scope of the Order

    The tissue paper products covered by this order are cut-to-length 
sheets of tissue paper having a basis weight not exceeding 29 grams per 
square meter. Tissue paper products subject to this order may or may 
not be bleached, dye-colored, surface-colored, glazed, surface 
decorated or printed, sequined, crinkled, embossed, and/or die cut. The 
tissue paper subject to this order is in the form of cut-to-length 
sheets of tissue paper with a width equal to or greater than one-half 
(0.5) inch. Subject tissue paper may be flat or folded, and may be 
packaged by banding or wrapping with paper or film, by placing in 
plastic or film bags, and/or by placing in boxes for distribution and 
use by the ultimate consumer. Packages of tissue paper subject to this 
order may consist solely of tissue paper of one color and/or style, or 
may contain multiple colors and/or styles.
    The merchandise subject to this order does not have specific 
classification numbers assigned to them under the Harmonized Tariff 
Schedule of the United States (HTSUS). Subject merchandise may be under 
one or more of several different subheadings, including: 4802.30, 
4802.54, 4802.61, 4802.62, 4802.69, 4804.31.1000, 4804.31.2000, 
4804.31.4020, 4804.31.4040, 4804.31.6000, 4804.39, 4805.91.1090, 
4805.91.5000, 4805.91.7000, 4806.40, 4808.30, 4808.90, 4811.90, 
4823.90, 4802.50.00, 4802.90.00, 4805.91.90, 9505.90.40. The tariff 
classifications are provided for convenience and customs purposes; 
however, the written description of the scope of this order is 
dispositive.\2\
---------------------------------------------------------------------------

    \2\ On January 30, 2007, at the direction of CBP, the Department 
added the following HTSUS classifications to the AD/CVD module for 
tissue paper: 4802.54.3100, 4802.54.6100, and 4823.90.6700. However, 
we note that the six-digit classifications for these numbers were 
already listed in the scope.
---------------------------------------------------------------------------

    Excluded from the scope of this order are the following tissue 
paper products: (1) Tissue paper products that are coated in wax, 
paraffin, or polymers, of a kind used in floral and food service 
applications; (2) tissue paper products that have been perforated, 
embossed, or die-cut to the shape of a toilet seat, i.e., disposable 
sanitary covers for toilet seats; (3) toilet or facial tissue stock, 
towel or napkin stock, paper of a kind used for household or sanitary 
purposes, cellulose wadding, and webs of cellulose fibers (HTSUS 
4803.00.20.00 and 4803.00.40.00).

Final Partial Rescission

    In the Preliminary Results, the Department preliminarily rescinded 
this review with respect to the following companies: Foshan Sansico 
Co., Ltd., Sansico Asia Pacific Limited, PT Grafitecindo Ciptaprima, PT 
Printec Perkasa, PT Printec Perkasa II, and PT Sansico Utama. These 
companies reported, and we confirmed based on import data from U.S. 
Customs and Border Protection (CBP), that they made no shipments of 
subject merchandise to the United States during the POR. Subsequent to 
the Preliminary Results, no information was submitted on the record 
indicating that the above companies made sales to the United States of 
subject merchandise during the POR. Thus, in accordance with 19 CFR 
351.213(d)(3), and consistent with our practice, we are rescinding this 
review with respect to the above-named companies.

Separate Rates

    In our Preliminary Results, we determined that Max Fortune met the 
criteria for the application of a separate rate, as it is a wholly 
foreign-owned

[[Page 52177]]

company registered and located in Hong Kong. We have not received any 
information since the issuance of the Preliminary Results that provides 
a basis for the reconsideration of this determination. Therefore, the 
Department continues to find that Max Fortune meets the criteria for a 
separate rate for purposes of the final results of this review.
    Also in the Preliminary Results, the Department found that Vietnam 
Quijiang Paper Co., Ltd. (Vietnam Quijiang) and Guilin Qifeng Paper 
Co., Ltd. (Guilin Qifeng) did not qualify for a separate rate, as 
neither company responded to the Department's requests for information 
(including a separate-rate application and/or certification). 
Accordingly, the Department considered these companies to be a part of 
the PRC-wide entity for purposes of this review. See Preliminary 
Results, 74 FR at 15452. No party commented on the Department's 
preliminary finding with respect to Vietnam Quijiang and Guilin Qifeng. 
Therefore, the Department continues to find these two companies to be 
part of the PRC-wide entity in the final results of this review.

Application of Adverse Facts Available

    As discussed in the Preliminary Results, Vietnam Quijiang and 
Guilin Qifeng did not respond to the Department's requests for 
information. Accordingly, the Department determined that these two 
entities did not establish their eligibility for separate-rate status, 
and as a result, deemed them to be a part of the PRC-wide entity for 
purposes of this review. Based upon the failure of Vietnam Quijiang and 
Guilin Qifeng, as part of the PRC-wide entity, to submit responses to 
the Department's questionnaires, the Department found that the PRC-wide 
entity failed to cooperate to the best of its ability in responding to 
the Department's requests for information, and assigned it a rate based 
on total adverse facts available (AFA) pursuant to sections 
776(a)(2)(A), (B) and (C), and 776(b) of the Act. Consistent with the 
statute, court precedent, and its normal practice, as AFA, the 
Department assigned the PRC-wide entity the highest rate on the record 
of any segment of this proceeding (i.e., 112.64 percent). This rate was 
corroborated to the extent practicable in accordance with section 
776(c) of the Act, as discussed in the Preliminary Results. See 
Preliminary Results, 74 FR at 15452-15453.
    The Department did not receive comments regarding the Department's 
preliminary application of AFA to the PRC-wide entity, which includes 
Vietnam Quijiang and Guilin Qifeng. Therefore, for the final results, 
the Department has not altered its decision to apply a total AFA rate 
of 112.64 percent to the PRC-wide entity in accordance with sections 
776(a)(2)(A), (B) and (C), and 776(b) of the Act.

Determination Not To Revoke in Part

    Max Fortune requested that the Department revoke it from the 
antidumping duty order on certain tissue paper products from the PRC 
pursuant to 19 CFR 351.222(d)(1) and (e), based on three consecutive 
years of zero and/or de minimis margins.
    While the Department found either zero or de minimis dumping 
margins for Max Fortune during the 1st administrative review (i.e., 
2004-2006 POR) and 2nd administrative review (i.e., 2006-2007 POR) of 
this order, it has not done so in the current administrative review 
(i.e., 2007-2008 POR). As Max Fortune's final dumping margin in this 
review is above de minimis, we find that Max Fortune has not satisfied 
the regulatory criterion of 19 CFR 351.222(b)(2)(i) requiring three 
consecutive years of sales at not less than normal value, and is 
therefore not eligible for revocation.
    Notwithstanding this finding, we also find that Max Fortune did not 
make sales to the United States in commercial quantities during all 
three years forming the basis of its revocation request, as required 
under 19 CFR 351.222(d)(1) and (e)(1)(ii). In making this 
determination, we relied upon Max Fortune's sales activity during the 
period of investigation (POI) and the 2004-2006, 2006-2007, and 2007-
2008 PORs. For at least two of these periods, Max Fortune's sales to 
the United States were not made in commercial quantities.
    Therefore, we have determined not to revoke the order with respect 
to Max Fortune because it has not met two of the regulatory criteria 
for revocation set forth in 19 CFR 351.222(b) and (d). For a complete 
discussion, see Comment 1 of the Issues and Decision Memorandum from 
John M. Andersen, Acting Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, to Ronald K. Lorentzen, Acting 
Assistant Secretary for Import Administration (Issues and Decision 
Memorandum) accompanying this notice; and the October 5, 2009, 
Memorandum from the PRC Tissue Paper Team to James P. Maeder, Jr., 
Director, Office 2, AD/CVD Operations, entitled ``Request for 
Revocation by Max Fortune Industrial Limited (Max Fortune).''

Analysis of Comments Received

    All issues raised in the case briefs by the parties and to which we 
have responded are addressed in the Issues and Decision Memorandum, 
which is hereby adopted by this notice. A list of the issues raised, 
all of which are in the Issues and Decision Memorandum, is attached to 
this notice as Appendix I. Parties can find a complete discussion of 
all issues raised in the briefs and the corresponding recommendations 
in this public memorandum, which is on file in the Central Records Unit 
(CRU), room 1117 of the Department of Commerce. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
on the Web at http:[sol][sol]trade.gov/ia. The paper copy and 
electronic version of the Issues and Decision Memorandum are identical 
in content.

Changes From the Preliminary Results

    Based on the information submitted and our analysis of the comments 
received, we have made certain changes to the margin calculations for 
Max Fortune as follows:
    <bullet> We used the Indian import data from World Trade Atlas for 
Harmonized Tariff Schedule subheading 6305.39.00 to value polypropylene 
bags. See Comment 3 of the Issues and Decision Memorandum for further 
discussion; and
    <bullet> We corrected Max Fortune's reported polypropylene bag 
consumption factors for two products. See Comment 9 of the Issues and 
Decision Memorandum for further discussion.

Final Results of Review

    We determine that the following antidumping duty margins exist in 
these final results:

[[Page 52178]]



               Certain Tissue Paper Products From the PRC
------------------------------------------------------------------------
  Individually reviewed exporter 2007-      Weighted- average percent
       2008 administrative review                margin (percent)
------------------------------------------------------------------------
Max Fortune Industrial Limited.........  14.25
------------------------------------------------------------------------
             PRC-wide rate               Margin (percent)
------------------------------------------------------------------------
PRC-wide rate (including Guilin Qifeng   112.64
 Paper Co., Ltd. and Vietnam Quijiang
 Paper Co., Ltd.).
------------------------------------------------------------------------

Assessment

    Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b), 
the Department will determine, and CBP shall assess, antidumping duties 
on all appropriate entries. The Department intends to issue assessment 
instructions to CBP 15 days after the date of publication of these 
final results of review. In accordance with 19 CFR 351.212(b)(1), for 
Max Fortune, we calculated importer (or customer)-specific assessment 
rates for the merchandise subject to this review. Because we do not 
have entered values on the record for Max Fortune's sales, we 
calculated a per-unit assessment rate by aggregating the antidumping 
duties due for all U.S. sales to each importer (or customer) and 
dividing this amount by the total quantity sold to that importer (or 
customer). See 19 CFR 351.212(b)(1). To determine whether the duty 
assessment rates are de minimis, in accordance with the requirement set 
forth in 19 CFR 351.106(c)(2), we calculated importer (or customer)-
specific ad valorem ratios based on the estimated entered value. Where 
an importer (or customer)-specific ad valorem rate is zero or de 
minimis, we will instruct CBP to liquidate appropriate entries without 
regard to antidumping duties. See 19 CFR 351.106(c)(2).
    With respect to the PRC-wide entity (including Vietnam Quijiang and 
Guilin Qifeng), we will instruct CBP to liquidate appropriate entries 
at the PRC-wide rate of 112.64 percent.\3\
---------------------------------------------------------------------------

    \3\ In the final determination of the circumvention inquiry 
involving Vietnam Quijiang (see Certain Tissue Paper Products from 
the People's Republic of China: Affirmative Final Determination of 
Circumvention of the Antidumping Duty Order, 73 FR 57591 (October 3, 
2008), the Department stated that if Vietnam Quijiang did not 
participate in this administrative review, we would immediately 
revoke the certification program relevant to its entries of certain 
tissue paper products from Vietnam, thereby presuming all of its 
entries to be of PRC origin regardless of whether they are declared 
to be Vietnamese or PRC origin. See October 24, 2008, Memorandum 
entitled ``Discontinuation of Certification Program.''
---------------------------------------------------------------------------

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the notice of final results of the administrative review 
for all shipments of certain tissue paper products from the PRC 
entered, or withdrawn from warehouse, for consumption on or after the 
date of publication, as provided by section 751(a)(2)(C) of the Act: 
(1) A cash deposit rate of 14.25 percent will be required for certain 
tissue paper products from the PRC exported by Max Fortune; (2) for 
previously reviewed or investigated companies not listed above that 
have separate rates, the cash-deposit rate will continue to be the 
company-specific rate published for the most recent period; (3) for all 
other PRC exporters of subject merchandise, which have not been found 
to be entitled to a separate rate, the cash-deposit rate will be PRC-
wide rate of 112.64 percent; and (4) for all non-PRC exporters of 
subject merchandise, the cash-deposit rate will be the rate applicable 
to the PRC exporter that supplied that non-PRC exporter. These deposit 
requirements, when imposed, shall remain in effect until further 
notice.

Notification to Importers

    This notice also serves as the final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during this review period. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and in the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    This notice serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
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 sanctionable 
violation.
    We are issuing and publishing these final results of review in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.221(b)(5).

    Dated: October 5, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix--List of Issues

Comment 1: Max Fortune's Request for Revocation from the Antidumping 
Duty Order
Comment 2: Incorporating Negative Dumping Margins in the Calculation 
of the Overall Antidumping Margin
Comment 3: Selection of Plastic Bag Surrogate Value
Comment 4: Valuing Containerization Expenses Separately From 
Brokerage and Handling Expenses
Comment 5: Selection of Financial Statements for Surrogate Financial 
Ratio Calculations
Comment 6: Reclassifications and Adjustments to Surrogate Financial 
Ratio Calculations
Comment 7: Appropriate Labor Rate
Comment 8: Excluding Indian Imports From Hong Kong in WTA-Sourced 
Surrogate Value Calculations
Comment 9: Revisions to Plastic Bag Consumption
[FR Doc. E9-24463 Filed 10-8-09; 8:45 am]
BILLING CODE 3510-DS-P