[Federal Register Volume 74, Number 201 (Tuesday, October 20, 2009)]
[Notices]
[Pages 53710-53716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25213]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-823, A-570-958]


Certain Coated Paper Suitable for High-Quality Print Graphics 
Using Sheet-Fed Presses From Indonesia and the People's Republic of 
China: Initiation of Antidumping Duty Investigations

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

DATES:  Effective Date: October 20, 2009.

FOR FURTHER INFORMATION CONTACT: Gemal Brangman (Indonesia) or Frances 
Veith (People's Republic of China), AD/CVD Operations, Office 2 and 
Office 8, respectively, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3773 or (202) 482-4295, respectively.

SUPPLEMENTARY INFORMATION:

The Petitions

    On September 23, 2009, the Department of Commerce (``the 
Department'') received Petitions concerning imports of certain coated 
paper, suitable for high-quality print graphics using sheet fed presses 
(``certain coated paper'') from Indonesia and the People's Republic of 
China (``PRC'') filed in proper form by Appleton Coated LLC, NewPage 
Corporation, S.D. Warren Company d/b/a Sappi Fine Paper North America, 
and the United Steel, Paper and Forestry, Rubber, Manufacturing, 
Energy, Allied Industrial and Service Workers International Union 
(collectively, ``Petitioners''). See Petition for the Imposition of 
Antidumping Duties on Certain Coated Paper from Indonesia (``Indonesia 
petition'') dated September 23, 2009; and Petition for the Imposition 
of Antidumping Duties on Certain Coated Paper from the People's 
Republic of China dated September 23, 2009 (``PRC petition'') 
(collectively, ``the Petitions''). On September 29, and October 7, 
2009, the Department issued requests for additional information and 
clarification of certain areas of the Petitions. Based on the 
Department's request, Petitioners filed supplements to the Petitions 
for both countries on October 2, 8, and 9, 2009.
    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (``the Act''), Petitioners allege that imports of certain 
coated paper from Indonesia and the PRC are being, or are likely to be, 
sold in the United States at less than fair value, within the meaning 
of section 731 of the Act, and that such imports materially injure, or 
threaten material injury to, an industry in the United States.
    The Department finds that Petitioners filed these Petitions on 
behalf of the domestic industry because Petitioners are interested 
parties as defined in sections 771(9)(C) and 771(9)(D) of the Act, and 
they have demonstrated sufficient industry support with respect to the 
investigations that they are requesting the Department to initiate (see 
``Determination of Industry Support for the Petitions'' below).

Scope of Investigations

    The products covered by these investigations are certain coated 
paper from Indonesia and the PRC. For a full description of the scope 
of the investigations, please see the ``Scope of Investigations,'' in 
Appendix I of this notice.

Comments on Scope of Investigations

    During our review of the Petitions, we discussed the scope with 
Petitioners to

[[Page 53711]]

ensure that it is an accurate reflection of the products for which the 
domestic industry is seeking relief. Moreover, as discussed in the 
preamble to the regulations (Antidumping Duties; Countervailing Duties; 
Final Rule, 62 FR 27296, 27323 (May 19, 1997)), we are setting aside a 
period for interested parties to raise issues regarding product 
coverage. The Department encourages all interested parties to submit 
such comments by November 2, 2009, the next business day after 20 
calendar days from the date of signature of this notice. Comments 
should be addressed to Import Administration's APO/Dockets Unit, Room 
1870, U.S. Department of Commerce, 14th Street and Constitution Avenue, 
NW., Washington, DC 20230. The period of scope consultations is 
intended to provide the Department with ample opportunity to consider 
all comments and to consult with parties prior to the issuance of the 
preliminary determinations.

Comments on Product Characteristics for Antidumping Duty Questionnaires

    We are requesting comments from interested parties regarding the 
appropriate physical characteristics of certain coated paper to be 
reported in response to the Department's antidumping questionnaires. 
This information will be used to identify the key physical 
characteristics of the subject merchandise in order to more accurately 
report the relevant factors and costs of production, as well as to 
develop appropriate product comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate listing of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as (1) general product 
characteristics and (2) the product comparison criteria. We note that 
it is not always appropriate to use all product characteristics as 
product comparison criteria. We base product comparison criteria on 
meaningful commercial differences among products. In other words, while 
there may be some physical product characteristics utilized by 
manufacturers to describe certain coated paper, it may be that only a 
select few product characteristics take into account commercially 
meaningful physical characteristics. In addition, interested parties 
may comment on the order in which the physical characteristics should 
be used in product matching. Generally, the Department attempts to list 
the most important physical characteristics first and the least 
important characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the antidumping duty questionnaires, we must 
receive comments at the above-referenced address by November 2, 2009. 
Additionally, rebuttal comments must be received by November 9, 2009.

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (``ITC''), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product (see section 771(10) of the Act), they do so for different 
purposes and pursuant to a separate and distinct authority. In 
addition, the Department's determination is subject to limitations of 
time and information. Although this may result in different definitions 
of the like product, such differences do not render the decision of 
either agency contrary to law. See USEC, Inc. v. United States, 132 F. 
Supp. 2d 1, 8 (Ct. Int'l Trade 2001), citing Algoma Steel Corp., Ltd. 
v. United States, 688 F. Supp. 639, 644 (Ct. Int'l Trade 1988), aff'd 
865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 U.S. 919 (1989).
    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, Petitioners offer a 
definition of domestic like product that includes sheeter rolls (rolls 
of certain coated paper intended to be slit and used in sheet-fed 
presses) and, therefore, is broader than the scope of the 
investigations, which does not include sheeter rolls. Based on our 
analysis of the information submitted on the record, we have determined 
that certain coated paper described in the scope of the investigations 
and sheeter rolls constitute a single domestic like product and we have 
analyzed industry support in terms of that domestic like product. For a 
discussion of the domestic like product analysis in this case, see 
Antidumping Duty Investigation Initiation Checklist: PRC Initiation 
Checklist at Attachment II, Analysis of Industry Support for the 
Petitions Covering Certain Coated Paper Suitable for High-Quality Print 
Graphics Using Sheet-Fed Presses from the People's Republic of China 
and Indonesia, and Antidumping Duty Investigation Initiation Checklist: 
Indonesia Initiation Checklist at Attachment II, Analysis of Industry 
Support for the Petitions Covering Certain Coated Paper Suitable for 
High-Quality Print Graphics Using Sheet-Fed Presses from the People's 
Republic of China and Indonesia, dated concurrently with this notice 
and on file in the Central Records Unit (``CRU''), Room 1117 of the 
main Department of Commerce building.
    In determining whether Petitioners have standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the Petitions. To establish industry support, Petitioners 
provided their own 2008 shipments of the domestic like product, as well 
as the 2008 shipments of one supporting company (SMART Papers), and 
compared the total to the 2008 shipments of the entire domestic 
industry. See Volume I of the Petitions, at 2-3, Exhibits I-3, I-4, and 
I-19, and Supplement to the AD/CVD Petitions,

[[Page 53712]]

dated October 2, 2009, at 19-22 and Exhibit 4. Petitioners estimated 
total 2008 shipments of the domestic like product based on the American 
Forest & Paper Association Annual Coated Printing Papers Survey. See 
Volume I of the Petitions, at 3 and Exhibits I-3 and I-4, and 
Supplement to the AD/CVD Petitions, dated October 2, 2009, at 22 and 
Exhibit 4; see also PRC Initiation Checklist at Attachment II, and 
Indonesia Initiation Checklist at Attachment II.
    Our review of the data provided in the Petitions, supplemental 
submissions, and other information readily available to the Department 
indicates that Petitioners have established industry support. First, 
the Petitions established support from domestic producers (or workers) 
accounting for more than 50 percent of the total production of the 
domestic like product and, as such, the Department is not required to 
take further action in order to evaluate industry support (e.g., 
polling). See section 732(c)(4)(D) of the Act; see also PRC Initiation 
Checklist at Attachment II, and Indonesia Initiation Checklist at 
Attachment II. Second, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 732(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
Petitions account for at least 25 percent of the total production of 
the domestic like product. See PRC Initiation Checklist at Attachment 
II, and Indonesia Initiation Checklist at Attachment II. Finally, the 
domestic producers (or workers) have met the statutory criteria for 
industry support under section 732(c)(4)(A)(ii) of the Act because the 
domestic producers (or workers) who support the Petitions account for 
more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the Petitions. Accordingly, the Department determines 
that the Petitions were filed on behalf of the domestic industry within 
the meaning of section 732(b)(1) of the Act. See id.
    The Department finds that Petitioners filed the Petitions on behalf 
of the domestic industry because they are interested parties as defined 
in sections 771(9)(C) and 771(9)(D) of the Act and they have 
demonstrated sufficient industry support with respect to the 
antidumping duty investigations that they are requesting the Department 
initiate. See id.

Allegations and Evidence of Material Injury and Causation

    Petitioners allege that the U.S. industry producing the domestic 
like product is being materially injured, or is threatened with 
material injury, by reason of the imports of the subject merchandise 
sold at less than normal value (``NV''). In addition, Petitioners 
allege that subject imports exceed the negligibility threshold provided 
for under section 771(24)(A) of the Act.
    Petitioners contend that the industry's injured condition is 
illustrated by reduced market share, underselling and price depressing 
and suppressing effects, increased import penetration, lost sales and 
revenue, reduced production, capacity, and capacity utilization, 
reduced shipments and inventories, reduced employment, and reduced 
financial performance. We have assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, and 
causation, and we have determined that these allegations are properly 
supported by adequate evidence and meet the statutory requirements for 
initiation. See PRC Initiation Checklist at Attachment III, Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Petitions Covering Certain Coated Paper Suitable for High-Quality Print 
Graphics Using Sheet-Fed Presses from the People's Republic of China 
and Indonesia, and Indonesia Initiation Checklist at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and Causation 
for the Petitions Covering Certain Coated Paper Suitable for High-
Quality Print Graphics Using Sheet-Fed Presses from the People's 
Republic of China and Indonesia.

Period of Investigations

    In accordance with 19 CFR 351.204(b), because these Petitions were 
filed on September 23, 2009, the anticipated period of investigation 
(``POI'') is July 1, 2008, through June 30, 2009, for Indonesia, and 
January 1, 2009, through June 30, 2009, for the PRC.

Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value upon which the Department has based its decision to 
initiate investigations with respect to Indonesia and the PRC. The 
sources of, and adjustments to, the data relating to export price 
(``EP'') and NV are discussed in greater detail in the Indonesia 
Initiation Checklist and the PRC Initiation Checklist.

Indonesia

Export Price
    Petitioners calculated EPs using two sources: (1) The average unit 
customs values (``AUVs'') derived from import data collected by the 
U.S. Census Bureau; and (2) a price quote from Indonesian producers for 
the sale of subject merchandise to U.S. customers. They adjusted the 
price quote for international freight and insurance (``CIF'') charges, 
U.S. inland freight charges, and brokerage and handling expenses. 
Petitioners used import data for the POI to calculate an average CIF 
cost, and relied upon a price quote obtained from a freight company to 
calculate U.S. freight charges. Petitioners based U.S. brokerage and 
handling charges on data contained in the public questionnaire response 
of the Indonesian respondents in the 2005-2006 Investigation of Coated 
Free Sheet Paper from Indonesia. See Indonesia Initiation Checklist.
Normal Value
    Petitioners claimed that Indonesia has a viable market for certain 
coated paper, based on information from the website of the parent 
company of two Indonesian producers/exporters of the subject 
merchandise. Petitioners obtained, through a market researcher, 
delivered price quotes for certain coated paper products to Indonesian 
customers, and adjusted these prices for VAT tax, distributor's markup, 
and freight costs. Petitioners obtained information on Indonesian VAT 
taxes and the distributor's markup from the market research report. 
They based estimated freight costs on data contained in the public 
questionnaire response of the Indonesian respondents in the 2005-2006 
Investigation of Coated Free Sheet Paper from Indonesia. See Indonesia 
Initiation Checklist.
Sales-Below-Cost Allegation
    Petitioners provided information demonstrating reasonable grounds 
to believe or suspect that sales of certain coated paper products in 
the Indonesian market were made at prices below the fully-absorbed cost 
of production (``COP''), within the meaning of section 773(b) of the 
Act, and requested that the Department conduct a country-wide sales-
below-cost investigation. The Statement of Administrative Action 
(``SAA''), submitted to the Congress in connection with the 
interpretation and application of the Uruguay Round Agreements Act, 
states that an allegation of sales below COP need not be specific to 
individual exporters or producers. See SAA, H.R. Doc. No. 103-316 at 
833

[[Page 53713]]

(1994). The SAA, at 833, states that ``Commerce will consider 
allegations of below-cost sales in the aggregate for a foreign country, 
just as Commerce currently considers allegations of sales at less than 
fair value on a country-wide basis for purposes of initiating an 
antidumping investigation.''
    Further, the SAA provides that section 773(b)(2)(A) of the Act 
retains the requirement that the Department have ``reasonable grounds 
to believe or suspect'' that below-cost sales have occurred before 
initiating such an investigation. Reasonable grounds exist when an 
interested party provides specific factual information on costs and 
prices, observed or constructed, indicating that sales in the foreign 
market in question are at below-cost prices. Id.
Cost of Production
    Pursuant to section 773(b)(3) of the Act, COP consists of the cost 
of manufacturing (``COM''); selling, general and administrative 
(``SG&A'') expenses; financial expenses; and packing expenses. 
Petitioners calculated the quantity of each of the inputs into COM 
(except factory overhead) and packing based on the production 
experience of a U.S. coated paper producer during the POI, multiplied 
by the value of inputs used to manufacture coated paper in Indonesia 
using publicly available data. Petitioners stated that to the best of 
their knowledge that the coated paper manufacturing processes in 
Indonesia are very similar to their own manufacturing processes, and 
therefore it is reasonable to estimate the Indonesian producers' usage 
rates based on the usage rates experienced by a U.S. coated paper 
producer. To value all raw materials, packing materials, and certain 
energy inputs (coal and woodwaste), Petitioners used Indonesian import 
statistics for the most recent twelve-month period available. To value 
labor, Petitioners relied on a monthly wage rate for the Indonesian 
paper industry as reported by the International Labor Organization. To 
value electricity, fuel oil, and natural gas, Petitioners used prices 
published by the International Energy Agency and the U.S. Embassy in 
Jakarta, Indonesia. To calculate the average factory overhead 
(exclusive of labor and energy), SG&A, and financial expense rates, 
Petitioners relied on the fiscal year 2008 financial statements of an 
Indonesian producer of packaging paper, products in the same general 
category of merchandise as certain coated paper. See Indonesia 
Initiation Checklist for further discussion.
    Based upon a comparison of the prices of the foreign like product 
in the home market to the calculated COP of the product, we find 
reasonable grounds to believe or suspect that sales of the foreign like 
product were made below the COP, within the meaning of section 
773(b)(2)(A)(i) of the Act. Accordingly, the Department is initiating a 
country-wide cost investigation.
Normal Value Based on Constructed Value
    Because it alleged sales below cost, pursuant to sections 
773(a)(4), 773(b) and 773(e) of the Act, Petitioners calculated NV 
based on constructed value (``CV''). Petitioners calculated CV using 
the same average COM, SG&A, financial and packing figures used to 
compute the COP. See Indonesian Initiation Checklist.

PRC

Export Price
    Petitioners calculated EPs for certain coated paper based on actual 
sales and sales confirmations in 2009. Petitioners made adjustments to 
EPs for certain movement expenses. See PRC Initiation Checklist.
Normal Value
    Petitioners state that in every previous administrative review and 
less-than-fair value investigation involving merchandise from the PRC, 
the Department has concluded that the PRC is a non-market economy 
country (``NME'') and, as the Department has not revoked this 
determination, its NME status remains in effect today. See Id. The 
Department has previously examined the PRC's market status and 
determined that NME status should continue for the PRC.\1\ In addition, 
in recent investigations, the Department has continued to determine 
that the PRC is an NME country.\2\
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    \1\ See Memorandum from the Office of Policy to David M. 
Spooner, Assistant Secretary for Import Administration, regarding 
The People's Republic of China Status as a Non-Market Economy, dated 
May 15, 2006. This document is available online at http://ia.ita.doc.gov/download/prc-nme-status/prc-nme-status-memo.pdf.
    \2\ See Certain Circular Welded Carbon Quality Steel Line Pipe 
from the People's Republic of China: Final Determination of Sales at 
Less Than Fair Value, 74 FR 14514 (March 31, 2009); Frontseating 
Service Valves from the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value and Final Negative 
Determination of Critical Circumstances, 74 FR 10886 (March 13, 
2009); 1-Hydroxyethylidene-1, 1-Diphosphonic Acid From the People's 
Republic of China: Final Determination of Sales at Less Than Fair 
Value, 74 FR 10545 (March 11, 2009).
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    In accordance with section 771(18)(C)(i) of the Act, the 
presumption of NME status remains in effect until revoked by the 
Department. The presumption of NME status for the PRC has not been 
revoked by the Department and, therefore, remains in effect for 
purposes of the initiation of this investigation. Accordingly, the NV 
of the product is appropriately based on factors of production valued 
in a surrogate market economy country, in accordance with section 
773(c) of the Act. In the course of this investigation, all parties 
will have the opportunity to provide relevant information related to 
the issues of the PRC's NME status and the granting of separate rates 
to individual exporters.
    Petitioners argue that India is the appropriate surrogate country 
for the PRC because it is at a comparable level of economic development 
and it is a significant producer of comparable merchandise. Petitioners 
state that the Department has determined in previous investigations and 
administrative reviews that India is at a level of development 
comparable to the PRC. Petitioners identified three producers of 
comparable merchandise in India, Seshasayee Paper and Boards, Ltd. 
(``Seshasayee''), JK Paper, Ltd. (``JK Paper''), and Rama Newsprint and 
Papers Ltd., (``Rama Paper''), and assert that the Department has used 
Seshasayee and JK Paper as surrogate producers in the investigation of 
coated free sheet from the PRC. See id. and see Final Determination of 
Sales at Less Than Fair Value: Coated Free Sheet Paper from the 
People's Republic of China, 72 FR 60632 (October 25, 2007) (``CFS from 
the PRC'').
    Based on the information provided by Petitioners, the Department 
believes that the use of India as a surrogate country is appropriate 
for purposes of initiation. See PRC Initiation Checklist. However, 
after initiation of the investigation, interested parties will have the 
opportunity to submit comments regarding surrogate country selection 
and, pursuant to 19 CFR 351.301(c)(3)(i), will be provided an 
opportunity to submit publicly available information to value factors 
of production up to 40 days after the date of publication of the 
preliminary determination.
    Petitioners provided dumping margin calculations using the 
Department's NME methodology as required by 19 CFR 351.202(b)(7)(i)(C) 
and 19 CFR 351.408. Petitioners calculated NVs for several certain 
coated paper products based on both integrated production operations 
and non-integrated production operations. See id.
    Petitioners valued the factors of production using reasonably 
available, public surrogate country data, including India import data 
from the Monthly Statistics of the Foreign Trade of India

[[Page 53714]]

for the period September 2008 through February 2009. See PRC Initiation 
Checklist.
    Petitioners stated that they valued certain chemicals using the 
general paper finishing agent classification because these chemicals 
could not be identified at a more specific level. See id. Further, 
Petitioners valued calcium carbonate using the HTS classification for 
marble based on the Department's similar determination in CFS from the 
PRC. See PRC Initiation Checklist.
    Petitioners valued electricity based on the surrogate value used in 
Tapered Roller Bearings and Parts Thereof, Finished or Unfinished, from 
the People's Republic of China: Preliminary Results of the 2007-2008 
Administrative Review of the Antidumping Duty Order, 74 FR 32539 (July 
8, 2009). See PRC Initiation Checklist. For natural gas, Petitioners 
used Indian import statistics for liquefied natural gas and converted 
the value from rupees per kilogram to rupees per million British 
thermal units (``MMBTU''). See id. For fuel oil, Petitioners used 
Indian import statistics and converted the value from rupees per ton to 
rupees per MMBTU. See id. For coal, Petitioners used Indian import data 
under the HTS number for steam coal. See id.
    Petitioners valued labor using the wage rate data published on the 
Department's Web site, at http://ia.ita.doc.gov/wages/05wages/05wages-051608.html. See id.
    Where Petitioners were unable to find input prices contemporaneous 
with the POI, they adjusted for inflation using the wholesale price 
index for India, as published in International Financial Statistics by 
the International Monetary Fund. Further, Petitioners used exchange 
rates, as provided on the Department's Web site, to convert Indian 
rupees to U.S. dollars. See id.
    To calculate factory overhead, selling, general and administrative 
expenses, and profit for integrated producers, Petitioners relied on 
the financial statements of Seshasayee and JK Paper, Indian producers 
of comparable merchandise. For non-integrated producer financial 
ratios, Petitioners used the financial statements of Rama Paper, a 
producer of comparable merchandise. See id.
Fair-Value Comparisons
    Based on the data provided by Petitioners, there is reason to 
believe that imports of certain coated paper from Indonesia and the PRC 
are being, or are likely to be, sold in the United States at less than 
fair value. Based on the comparisons of EP to CV, as discussed above, 
the estimated dumping margins for Indonesia range from 33 percent to 41 
percent. Based on the comparisons of EP to NV, as discussed above, the 
estimated dumping margins for the PRC range from 25.7 percent to 135.8 
percent. See id.
Initiation of Antidumping Investigations
    Based upon the examination of the Petitions on certain coated paper 
from Indonesia and the PRC and other information reasonably available 
to the Department, the Department finds that these Petitions meet the 
requirements of section 732 of the Act. Therefore, we are initiating 
antidumping duty investigations to determine whether imports of certain 
coated paper from Indonesia and the PRC are being, or are likely to be, 
sold in the United States at less than fair value. In accordance with 
section 733(b)(1)(A) of the Act, unless postponed, we will make our 
preliminary determinations no later than 140 days after the date of 
this initiation.
Targeted-Dumping Allegations
    On December 10, 2008, the Department issued an interim final rule 
for the purpose of withdrawing 19 CFR 351.414(f) and (g), the 
regulatory provisions governing the targeted-dumping analysis in 
antidumping duty investigations, and the corresponding regulation 
governing the deadline for targeted-dumping allegations, 19 CFR 
351.301(d)(5). See Withdrawal of the Regulatory Provisions Governing 
Targeted Dumping in Antidumping Duty Investigations, 73 FR 74930 
(December 10, 2008). The Department stated that ``{w{time} ithdrawal 
will allow the Department to exercise the discretion intended by the 
statute and, thereby, develop a practice that will allow interested 
parties to pursue all statutory avenues of relief in this area.'' See 
id. at 74931.
    In order to accomplish this objective, if any interested party 
wishes to make a targeted-dumping allegation in any of these 
investigations pursuant to section 777A(d)(1)(B) of the Act, such 
allegations are due no later than 45 days before the scheduled date of 
the country-specific preliminary determination.

Respondent Selection

Indonesia

    The petition identifies two subsidiaries of the Asia Pulp & Paper/
Sinar Mas Group, PT. Pabrik Kertas Tjiwi Kimia Tbk. (``Tjiwi Kimia'') 
and PT Pindo Deli Pulp and Paper (``Pindo Deli''), as significant 
producers/exporters of certain coated paper in Indonesia. We have 
placed on the record import data from U.S. Customs and Border 
Protection (``CBP''), which supports Petitioners' contention. 
Therefore, we are selecting Tjiwi Kimia and Pindo Deli as mandatory 
respondents in this investigation, pursuant to section 777A(c)(2)(B) of 
the Act.
    We will release the CBP data under APO to the parties covered by 
APO on the day this initiation is announced. We will consider comments 
from interested parties on respondent selection. Parties wishing to 
comment must do so within five days of the publication of this notice 
in the Federal Register.
    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Instructions for filing such 
applications may be found on the Department's Web site at http://ia.ita.doc.gov/apo.

PRC

    For the PRC, the Department will request quantity and value 
information from all known exporters and producers identified, with 
complete contact information, in the Petition. The quantity and value 
data received from NME exporters/producers will be used as the basis to 
select the mandatory respondents.
    The Department requires that the respondents submit a response to 
both the quantity and value questionnaire and the separate-rate 
application by the respective deadlines in order to receive 
consideration for separate-rate status.\3\ Appendix II of this notice 
contains the quantity and value questionnaire that must be submitted by 
all NME exporters/producers no later than November 3, 2009. In 
addition, the Department will post the quantity and value questionnaire 
along with the filing instructions on the Import Administration Web 
site, at http://ia.ita.doc.gov/ia-highlights-and-news.html. The 
Department will send the quantity and value questionnaire to those PRC 
companies identified in the General Issues and Injury Supplement to the 
Petitions, dated October 2, 2009, at Exhibit 8.
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    \3\ See Circular Welded Austenitic Stainless Pressure Pipe from 
the People's Republic of China: Initiation of Antidumping Duty 
Investigation, 73 FR 10221, 10225 (February 26, 2008); and 
Initiation of Antidumping Duty Investigation: Certain Artist Canvas 
From the People's Republic of China, 70 FR 21996, 21999 (April 28, 
2005).
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Separate Rates
    In order to obtain separate-rate status in NME investigations, 
exporters and producers must submit a separate-rate status application. 
See Certain Circular

[[Page 53715]]

Welded Carbon Quality Steel Line Pipe from the Republic of Korea and 
the People's Republic of China: Initiation of Antidumping Duty 
Investigations, 73 FR 23188, 23193 (April 29, 2008) (Certain Circular 
Welded Carbon Quality Steel Line Pipe from the PRC). The specific 
requirements for submitting the separate-rate application in this 
investigation are outlined in detail in the application itself, 
available on the Department's Web site at http://ia.ita.doc.gov/ia-highlights-and-news.html on the date of publication of this initiation 
notice in the Federal Register. The separate-rate application will be 
due sixty (60) days from the date of publication of this initiation 
notice in the Federal Register. For exporters and producers who submit 
a separate-rate status application and subsequently are selected as 
mandatory respondents, these exporters and producers will no longer be 
eligible for consideration for separate rate status unless they respond 
to all parts of the questionnaire as mandatory respondents.
Use of Combination Rates in an NME Investigation
    The Department will calculate combination rates for certain 
respondents that are eligible for a separate rate in this 
investigation. The Separate Rates and Combination Rates Bulletin 
states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME investigations will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of combination rates because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.

    See Separate Rates and Combination Rates Bulletin at 6 (emphasis 
added).
Distribution of Copies of the Petitions
    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions and 
amendments thereto, have been provided to the representatives of the 
Governments of Indonesia and the PRC. To the extent practicable, we 
will attempt to provide a copy of the public version of the of the 
Petitions to each exporter named in the petition, as provided under 19 
CFR 351.203(c)(2).
International Trade Commission (ITC) Notification
    We have notified the ITC of our initiation, as required by section 
732(d) of the Act.
Preliminary Determination by the ITC
    The ITC will preliminarily determine, no later than November 9, 
2009, whether there is a reasonable indication that imports of certain 
coated paper from Indonesia and the PRC materially injure, or threaten 
material injury to, a U.S. industry. A negative ITC determination with 
respect to any country would result in the termination of the 
investigation with respect to that country. Otherwise, these 
investigations will proceed according to statutory and regulatory time 
limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: October 13, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix I--Scope of the Investigations

    The merchandise covered by each of these investigations includes 
certain coated paper and paperboard \4\ 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 \5\; 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'').
---------------------------------------------------------------------------

    \4\ `` `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.' ''
    \5\ 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.
---------------------------------------------------------------------------

    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 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. While HTSUS subheadings are 
provided for convenience and customs purposes, the written 
description of the scope of the investigations is dispositive.

Appendix II

    Where it is not practicable to examine all known exporters/
producers of subject merchandise, section 777A(c)(2) of the Tariff 
Act of 1930, as amended, permits us to investigate (1) a sample of 
exporters, producers, or types of products that is statistically 
valid based on the information available at the time of selection, 
or (2) exporters and producers accounting for the largest volume and 
value of the subject merchandise that can reasonably be examined.
    In the chart below, please provide the total quantity and total 
value of all your sales of merchandise covered by the scope of this 
investigation (see ``Scope of Investigation'' section of this 
notice), produced in the PRC, and exported/shipped to the United 
States during the period January 1, 2009, through June 30, 2009.

----------------------------------------------------------------------------------------------------------------
                                                                  Total quantity
                             Market                               in metric tons   Terms of sale    Total value
----------------------------------------------------------------------------------------------------------------
                                                  United States
----------------------------------------------------------------------------------------------------------------
1. Export Price Sales...........................................  ..............  ..............  ..............
2. a. Exporter Name.............................................  ..............  ..............  ..............

[[Page 53716]]

 
b. Address......................................................  ..............  ..............  ..............
c. Contact......................................................  ..............  ..............  ..............
d. Phone No.....................................................  ..............  ..............  ..............
e. Fax No.......................................................  ..............  ..............  ..............
3. Constructed Export Price Sales...............................  ..............  ..............  ..............
4. Further Manufactured.........................................  ..............  ..............  ..............
                                                                 -----------------------------------------------
    Total Sales.................................................  ..............  ..............  ..............
----------------------------------------------------------------------------------------------------------------

    Total Quantity:
    <bullet> Please report quantity on a metric ton basis. If any 
conversions were used, please provide the conversion formula and 
source.
    Terms of Sales:
    <bullet> Please report all sales on the same terms (e.g., free 
on board at port of export).
    Total Value:
    <bullet> All sales values should be reported in U.S. dollars. 
Please indicate any exchange rates used and their respective dates 
and sources.
    Export Price Sales:
    <bullet> Generally, a U.S. sale is classified as an export price 
sale when the first sale to an unaffiliated customer occurs before 
importation into the United States.
    <bullet> Please include any sales exported by your company 
directly to the United States.
    <bullet> Please include any sales exported by your company to a 
third-country market economy reseller where you had knowledge that 
the merchandise was destined to be resold to the United States.
    <bullet> If you are a producer of subject merchandise, please 
include any sales manufactured by your company that were 
subsequently exported by an affiliated exporter to the United 
States.
    <bullet> Please do not include any sales of subject merchandise 
manufactured in Hong Kong in your figures.
    Constructed Export Price Sales:
    <bullet> Generally, a U.S. sale is classified as a constructed 
export price sale when the first sale to an unaffiliated customer 
occurs after importation. However, if the first sale to the 
unaffiliated customer is made by a person in the United States 
affiliated with the foreign exporter, constructed export price 
applies even if the sale occurs prior to importation.
    <bullet> Please include any sales exported by your company 
directly to the United States;
    <bullet> Please include any sales exported by your company to a 
third-country market economy reseller where you had knowledge that 
the merchandise was destined to be resold to the United States.
    <bullet> If you are a producer of subject merchandise, please 
include any sales manufactured by your company that were 
subsequently exported by an affiliated exporter to the United 
States.
    <bullet> Please do not include any sales of subject merchandise 
manufactured in Hong Kong in your figures.
    Further Manufactured:
    <bullet> Sales of further manufactured or assembled (including 
re-packaged) merchandise is merchandise that undergoes further 
manufacture or assembly in the United States before being sold to 
the first unaffiliated customer.
    <bullet> Further manufacture or assembly costs include amounts 
incurred for direct materials, labor and overhead, plus amounts for 
general and administrative expense, interest expense, and additional 
packing expense incurred in the country of further manufacture, as 
well as all costs involved in moving the product from the U.S. port 
of entry to the further manufacturer.

[FR Doc. E9-25213 Filed 10-19-09; 8:45 am]
BILLING CODE 3510-DS-P