[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)]
[Notices]
[Pages 2133-2135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00570]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-862]


Certain Uncoated Groundwood Paper From Canada: Preliminary 
Affirmative Countervailing Duty Determination, and Alignment of Final 
Determination With Final Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of certain uncoated groundwood paper (UGW paper) from Canada. 
The period of investigation is January 1, 2016, through December 31, 
2016.

DATES: Applicable January 16, 2018.

FOR FURTHER INFORMATION CONTACT: David Crespo or Whitley Herndon, AD/
CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-3693 or (202) 
482-6274, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on September 
1, 2017.\1\ On October 19, 2017, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
January 8, 2018.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics discussed in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary 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 http://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 Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Certain Uncoated Groundwood Paper from Canada: 
Initiation of Countervailing Duty Investigation, 82 FR 41603 
(September 1, 2017) (Initiation Notice).
    \2\ See Certain Uncoated Groundwood Paper from Canada: 
Postponement of Preliminary Determination of Countervailing Duty 
Investigation, 82 FR 48681 (October 19, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Countervailing Duty Investigation of Certain 
Uncoated Groundwood Paper from Canada,'' dated concurrently with, 
and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Investigation

    The product covered by this investigation is UGW paper from Canada. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e. , scope).\5\ Certain 
interested parties commented on the scope of the investigation as it 
appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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    Commerce intends to issue its preliminary decision regarding 
comments concerning the scope of the antidumping (AD) and 
countervailing duty (CVD) investigations in the preliminary 
determination of the companion AD investigation.

[[Page 2134]]

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e. , a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
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    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\7\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of UGW paper from 
Canada based on a request made by the petitioner.\8\ Consequently, the 
final CVD determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
May 22, 2018, unless postponed.
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    \8\ See Letter from the petitioner, ``Countervailing Duty 
Investigation of Certain Uncoated Groundwood Paper from Canada: 
Request for Alignment,'' dated December 18, 2017.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce calculated individually estimated 
countervailable subsidy rates for Catalyst Paper Corporation 
(Catalyst), Kruger Trois-Rivieres L.P. (Kruger), and Resolute FP Canada 
Inc. (Resolute), that are not zero, de minimis , or based entirely on 
facts otherwise available.\9\ Commerce calculated the all-others rate 
using a weighted-average of the individually estimated subsidy rates 
calculated for the examined respondents using each company's business 
proprietary data for the merchandise under consideration.\10\
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    \9\ See MacLean-Fogg Co. v. United States, 753 F.3d 1237 (Fed. 
Cir. 2014) (holding that voluntary respondents are considered 
``individually investigated'' for purposes of calculating the all-
others rate). Commerce accepted White Birch Paper Canada Company 
NSULC (White Birch) as a voluntary respondent in this investigation. 
However, we have preliminarily calculated a de minimis subsidy rate 
for White Birch; thus, in accordance with Sections 703(d) and 
705(c)(5)(A) of the Act, we have not included White Birch's de 
minimis subsidy rate in the calculation of the all-others rate for 
this preliminary determination.
    \10\ See Memorandum, ``Countervailing Duty Investigation of 
Certain Uncoated Groundwood Paper from Canada: All Others Rate 
Calculation for Preliminary Determination,'' dated January 8, 2018.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                             Ad Valorem,
                                                                subsidy
                          Company                                rate
                                                              (percent)
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Catalyst Paper Corporation 11..............................         6.09
Kruger Trois-Rivieres L.P 12...............................         9.93
Resolute FP Canada Inc 13..................................         4.42
White Birch Paper Canada Company NSULC 14..................       * 0.65
All-Others.................................................         6.53
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* de minimis.

Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register . Further, pursuant to 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the rates indicated above. Because the subsidy rate for White Birch 
is de minimis , Commerce is directing CBP not to suspend liquidation of 
entries of the merchandise from this company.
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    \11\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Catalyst Paper Corporation: Catalyst Paper, Catalyst Pulp Operations 
Limited, and Catalyst Pulp and Paper Sales Inc.
    \12\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Kruger Trois-Rivieres L.P.: Kruger Publication Papers Inc., Corner 
Brook Pulp and Paper Limited, Kruger Energy Bromptonville LP, Kruger 
Holdings L.P., Kruger Holdings GP Inc., and Kruger Inc.
    \13\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Resolute FP Canada Inc.: Resolute FP Canada, Fibrek General 
Partnership (Fibrek), and Resolute Growth.
    \14\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
White Birch Paper Canada Company NSULC: Papier Masson WB (White 
Birch) LP, FF Soucy WB LP, and Stadacona WB LP.
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Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\15\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \15\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of

[[Page 2135]]

the hearing two days before the scheduled date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: January 8, 2018.
Gary Taverman,
Deputy Assistant Secretary for Enforcement and Compliance, performing 
the non-exclusive function and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation includes certain 
paper that has not been coated on either side and with 50 percent or 
more of the cellulose fiber content consisting of groundwood pulp, 
including groundwood pulp made from recycled paper, weighing not 
more than 90 grams per square meter. Groundwood pulp includes all 
forms of pulp produced from a mechanical pulping process, such as 
thermo-mechanical process (TMP), chemi-thermo mechanical process 
(CTMP), bleached chemi-thermo mechanical process (BCTMP) or any 
other mechanical pulping process. The scope includes paper shipped 
in any form, including but not limited to both rolls and sheets.
    Certain uncoated groundwood paper includes but is not limited to 
standard newsprint, high bright newsprint, book publishing, 
directory, and printing and writing papers. The scope includes paper 
that is white, off-white, cream, or colored.
    Specifically excluded from the scope are imports of certain 
uncoated groundwood paper printed with final content of printed text 
or graphic. Also excluded are papers that otherwise meet this 
definition, but which have undergone a supercalendering process.\16\
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    \16\ Supercalendering imparts a glossy finish produced by the 
movement of the paper web through a supercalender which is a stack 
of alternating rollers of metal and cotton (or other softer 
material). The supercalender runs at high speed and applies 
pressure, heat, and friction which glazes the surface of the paper, 
imparting gloss to the surface and increasing the paper's smoothness 
and density.
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    Certain uncoated groundwood paper is classifiable in the 
Harmonized Tariff Schedule of the United States (HTSUS) in several 
subheadings, including 4801.00.0120, 4801.00.0140, 4802.61.1000, 
4802.61.2000, 4802.61.3110, 4802.61.3191, 4802.61.6040, 
4802.62.1000, 4802.62.2000, 4802.62.3000, 4802.62.6140, 
4802.69.1000, 4802.69.2000, and 4802.69.3000. Subject merchandise 
may also be imported under several additional subheadings including 
4805.91.5000, 4805.91.7000, and 4805.91.9000.\17\ Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise is dispositive.
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    \17\ The following HTSUS numbers are no longer active as of 
January 1, 2017: 4801.00.0020, 4801.00.0040, 4802.61.3010, 
4802.61.3091, and 4802.62.6040.
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Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Injury Test
V. Subsidies Valuation
VI. Application of Facts Otherwise Available and Facts Otherwise 
Available With an Adverse Inference
VII. Analysis of Programs
VIII. Conclusion
Appendix I: Not-Used and Not-Measurable Programs, by Company

 [FR Doc. 2018-00570 Filed 1-12-18; 8:45 am]
BILLING CODE 3510-DS-P