80 FR 51783 - Certain Uncoated Paper From Australia: Preliminary Determination of Sales at Less Than Fair Value, Negative Preliminary Determination of Critical Circumstances, and Postponement of Final Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 80, Issue 165 (August 26, 2015)

The Department of Commerce (Department) preliminarily determines that certain uncoated paper from Australia is being, or is likely to be, sold in the United States at less than fair value (LTFV), as provided in section 733(b) of the Tariff Act of 1930, as amended (the Act). The period of investigation (POI) is January 1, 2014, through December 31, 2014. The estimated weighted-average dumping margins of sales at LTFV are shown in the ``Preliminary Determination'' section of this notice. Interested parties are invited to comment on this preliminary determination.

[Federal Register Volume 80, Number 165 (Wednesday, August 26, 2015)]
[Notices]
[Pages 51783-51786]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21170]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-602-807]


Certain Uncoated Paper From Australia: Preliminary Determination 
of Sales at Less Than Fair Value, Negative Preliminary Determination of 
Critical Circumstances, and Postponement of Final Determination

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

SUMMARY: The Department of Commerce (Department) preliminarily 
determines that certain uncoated paper from Australia is being, or is 
likely to be, sold in the United States at less than fair value (LTFV), 
as provided in section 733(b) of the Tariff Act of 1930, as amended 
(the Act). The period of investigation (POI) is January 1, 2014, 
through December 31, 2014. The estimated weighted-average dumping 
margins of sales at LTFV are shown in the ``Preliminary Determination'' 
section of this notice. Interested parties

[[Page 51784]]

are invited to comment on this preliminary determination.

DATES: Effective Date: August 26, 2015.

FOR FURTHER INFORMATION CONTACT: Eve Wang or George McMahon, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
6231 or (202) 482-1167, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the notice of initiation of this 
investigation on February 18, 2015.\1\ For a complete description of 
the events that followed the initiation of this investigation, see the 
Preliminary Decision Memorandum that is dated concurrently with this 
determination and hereby adopted by this notice.\2\ 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 https://access.trade.gov, and 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 found at http://enforcement.trade.gov/frn/. The 
signed Preliminary Decision Memorandum and the electronic version of 
the Preliminary Decision Memorandum are identical in content.
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    \1\ See Certain Uncoated Paper From Australia, Brazil, the 
People's Republic of China, Indonesia, and Portugal: Initiation of 
Less-Than-Fair-Value Investigations, 80 FR 8608 (February 18, 2015) 
(Initiation Notice).
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
entitled ``Decision Memorandum for the Preliminary Determination in 
the Antidumping Duty Investigation of Certain Uncoated Paper from 
Australia'' (Preliminary Decision Memorandum), dated concurrently 
with this notice.
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Scope of the Investigation

    The product covered by this investigation is uncoated paper from 
Australia. For a full description of the scope of this investigation, 
see the ``Scope of the Investigation,'' in Appendix I of this notice.

Scope Comments

    Certain interested parties commented on the scope of the 
investigation as it appeared in the Initiation Notice. For discussion 
of those comments, see the Preliminary Decision Memorandum.\3\
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    \3\ See also Memorandum from Erin Begnal, Director, Office III, 
to Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement 
and Compliance, entitled ``Scope Comments Decision Memorandum for 
the Preliminary Determinations,'' dated August 3, 2015.
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Postponement of Deadline for Preliminary Determination

    On May 15, 2015, the Petitioners \4\ made a timely request for a 
50-day postponement of the preliminary determination in this 
investigation pursuant to section 733(c)(1)(A) of the Act and 19 CFR 
351.205(e).\5\ On June 1, 2015, we postponed the preliminary 
determination by 50 days, to August 19, 2015.\6\
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    \4\ The Petitioners in this proceeding are United Steel, Paper 
and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and 
Service Workers International Union; Domtar Corporation; Finch Paper 
LLC; P.H. Glatfelter Company; and Packaging Corporation of America 
(collectively, the Petitioners).
    \5\ See the Petitioners' letter to the Department dated May 15, 
2015.
    \6\ See Certain Uncoated Paper from Australia, Brazil, the 
People's Republic of China, Indonesia, and Portugal: Postponement of 
Preliminary Determinations of Antidumping Duty Investigations, 80 FR 
31017 (June 1, 2015).
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. There is one respondent in this investigation, 
Paper Australia Pty. Ltd. (Australian Paper). Constructed export price 
and export price for this company are calculated in accordance with 
section 772 of the Act. Normal value (NV) is calculated in accordance 
with section 773 of the Act. For a full description of the methodology 
underlying our preliminary conclusions, see the Preliminary Decision 
Memorandum.

All-Others Rate

    Consistent with sections 733(d)(1)(A)(ii) and 735(c)(5) of the Act, 
the Department also calculated an estimated all-others rate. Section 
735(c)(5)(A) of the Act provides that the estimated all-others rate 
shall be an amount equal to the weighted average of the estimated 
weighted-average dumping margins established for exporters and 
producers individually investigated, excluding any zero and de minimis 
margins, and any margins determined entirely under section 776 of the 
Act.
    Australian Paper is the only respondent for which the Department 
has calculated a company-specific rate. Therefore, for purposes of 
determining the ``all others'' rate and pursuant to section 
735(c)(5)(A) of the Act, we are using the dumping margin calculated for 
Australian Paper, as referenced in the ``Preliminary Determination'' 
section below.

Negative Preliminary Determinations of Critical Circumstances

    On July 15, 2015, the Petitioners filed timely a critical 
circumstances allegation, pursuant to section 733(e)(1) of the Act and 
19 CFR 351.206(c), alleging that critical circumstances exist with 
respect to imports of the merchandise under consideration from 
Australia.\7\ In accordance with 19 CFR 351.206(c)(2)(i), when a 
critical circumstances allegation is submitted more than 20 days before 
the scheduled date of the preliminary determination, the Department 
must issue a preliminary finding whether there is a reasonable basis to 
believe or suspect that critical circumstances exist no later than the 
date of the preliminary determination. We conducted analyses of 
critical circumstances for Australian Paper in accordance with section 
733(e) of the Act and 19 CFR 351.206, and preliminarily determined 
that: (1) Importers of uncoated paper from Australian Paper knew or 
should have known that the exporter was selling the merchandise under 
consideration at LTFV and that there was likely to be material injury 
in accordance with section 733(e)(1)(A)(ii) of the Act; and (2) imports 
of the subject merchandise from these companies have not been massive 
over a relatively short period in accordance with section 733(e)(1)(B) 
of the Act. Further, for the companies subject to the ``all others'' 
rate, it is the Department's normal practice to conduct its critical 
circumstances analysis for these companies based on the experience of 
investigated companies.\8\ Accordingly, we find that the critical 
circumstances determination for Australian Paper should also be applied 
to all others, given that Australian Paper is the only known, 
identified producer in the petition and the initiation.\9\ For a full 
description of

[[Page 51785]]

the methodology and results of our analysis, see the Preliminary 
Decision Memorandum.
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    \7\ See the letter from the petitioners entitled, ``Certain 
Uncoated Paper from Australia--Allegation of Critical 
Circumstances,'' dated July 15, 2015.
    \8\ See, e.g., Sodium Metal from France: Notice of Final 
Determination of Sales at Less Than Fair Value and Negative Critical 
Circumstances, 73 FR 62252, 62254 (October 20, 2008); Notice of 
Final Determination of Sales at Less Than Fair Value and Negative 
Critical Circumstances Determination: Bottom Mount Combination 
Refrigerator-Freezers From the Republic of Korea, 77 FR 17413, 
17415-416 (March 26, 2012).
    \9\ See Initiation Notice, 80 FR at 8614; see also Volume II of 
the Petitions, at II-1--II-2 at footnote 1, and Exhibit II-3;Volume 
V of the Petitions, at V-1 through V-2 and Exhibit V-1; Volume VI of 
the Petitions, at Exhibits VI-1 and VI-2.
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Preliminary Determination

    The Department preliminarily determines that the following 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter/manufacturer                       dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Paper Australia Pty. Ltd....................................       40.65
All Others..................................................       40.65
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we are directing 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of certain uncoated paper from Australia, as described in 
Appendix I of this notice, for Australian Paper and the companies 
covered by the all others rate which are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. However, because we have preliminarily 
found that critical circumstances do not exist with regard to 
Australia, we will not instruct CBP to suspend liquidation of covered 
entries from those companies entered, or withdrawn from warehouse for 
consumption up to 90 days prior to the date of publication of this 
notice in the Federal Register.\10\
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    \10\ See section 733(e)(2) of the Act.
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    Pursuant to section 733(d) of the Act and 19 CFR 351.205(d), we 
will instruct CBP to require cash deposits \11\ equal to the dumping 
margins, as indicated in the chart above, as follows: (1) The rate for 
the mandatory respondents listed above will be the respondent-specific 
rate we determined in this preliminary determination; (2) if the 
exporter is not a mandatory respondent identified above, but the 
producer is, the rate will be the specific rate established for the 
producer of the subject merchandise; and (3) the rate for all other 
producers or exporters will be the all others rate. These suspension of 
liquidation instructions will remain in effect until further notice.
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    \11\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
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Disclosure

    We will disclose the calculations performed to interested parties 
in this proceeding within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i) of the Act, we intend to verify 
information relied upon in making our final determination.

Public Comment

    Interested parties are invited to comment on this preliminary 
determination. 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 final verification report is 
issued in this proceeding, and rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than five days after 
the deadline date for case briefs.\12\ Pursuant to 19 CFR 351.309(c)(2) 
and (d)(2), parties who submit case briefs or rebuttal briefs in this 
proceeding 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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    \12\ See 19 CFR 351.309.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce. 
All documents must be filed electronically using ACCESS. An 
electronically-filed request must be received successfully in its 
entirety by ACCESS by 5:00 p.m. Eastern Standard Time, within 30 days 
after the date of publication of this notice.\13\ Requests should 
contain the party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 14th Street and 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 the hearing 
two days before the scheduled date.
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    \13\ See 19 CFR 351.310(c).
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Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. 19 CFR 351.210(e)(2) requires that requests by 
respondents for postponement of a final antidumping determination be 
accompanied by a request for extension of provisional measures from a 
four-month period to a period not more than six months in duration.
    Australian Paper requested that, in the event of an affirmative 
preliminary determination in this investigation, the Department 
postpone its final determination by 60 days (i.e., to 135 days after 
publication of the preliminary determination) pursuant to section 
735(a)(2)(A) and 19 CFR 351.210(b)(2)(ii), and agreed to extend the 
application of the provisional measures prescribed under section 733(d) 
of the Act and 19 CFR 351.210(e)(2), from a four-month period to a 
period not to exceed six months.\14\
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    \14\ See letter from Australian Paper entitled, ``Certain 
Uncoated Paper from Australia: Respondents' Comments on the 
Extension of Final Determination,'' dated August 11, 2015.
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    In accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii) and (e)(2), because (1) our preliminary determination 
is affirmative; (2) the requesting exporters account for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, we are postponing the final determination and 
extending the provisional measures from a four-month period to a period 
not greater than six months. Accordingly, we will make our final 
determination no later than 135 days after the date of publication of 
this preliminary determination, pursuant to section 735(a)(2) of the 
Act.\15\
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    \15\ See also 19 CFR 351.210(e).
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International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, we are notifying the 
ITC of our affirmative preliminary determination of sales at LTFV. 
Because the preliminary determination in this proceeding is 
affirmative, section 735(b)(2) of the Act requires that the ITC make 
its final determination whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of uncoated paper from Australia before the later of 
120 days after the date of this preliminary determination or 45 days 
after our final determination. Because we are postponing the deadline 
for our final determination to 135 days from the date of publication of 
this preliminary

[[Page 51786]]

determination, as discussed above, the ITC will make its final 
determination no later than 45 days after our final determination.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: August 19, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by the investigation includes uncoated 
paper in sheet form; weighing at least 40 grams per square meter but 
not more than 150 grams per square meter; that either is a white 
paper with a GE brightness level \1\ of 85 or higher or is a colored 
paper; whether or not surface-decorated, printed (except as 
described below), embossed, perforated, or punched; irrespective of 
the smoothness of the surface; and irrespective of dimensions 
(Certain Uncoated Paper).
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    \1\ 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 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. ``Colored paper'' as used in this scope definition means a 
paper with a hue other than white that reflects one of the primary 
colors of magenta, yellow, and cyan (red, yellow, and blue) or a 
combination of such primary colors.
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    Certain Uncoated Paper includes (a) uncoated free sheet paper 
that meets this scope definition; (b) uncoated ground wood paper 
produced from bleached chemi-thermo-mechanical pulp (BCTMP) that 
meets this scope definition; and (c) any other uncoated paper that 
meets this scope definition regardless of the type of pulp used to 
produce the paper.
    Specifically excluded from the scope are (1) paper printed with 
final content of printed text or graphics and (2) lined paper 
products, typically school supplies, composed of paper that 
incorporates straight horizontal and/or vertical lines that would 
make the paper unsuitable for copying or printing purposes.
    Imports of the subject merchandise are provided for under 
Harmonized Tariff Schedule of the United States (HTSUS) categories 
4802.56.1000, 4802.56.2000, 4802.56.3000, 4802.56.4000, 
4802.56.6000, 4802.56.7020, 4802.56.7040, 4802.57.1000, 
4802.57.2000, 4802.57.3000, and 4802.57.4000. Some imports of 
subject merchandise may also be classified under 4802.62.1000, 
4802.62.2000, 4802.62.3000, 4802.62.5000, 4802.62.6020, 
4802.62.6040, 4802.69.1000, 4802.69.2000, 4802.69.3000, 4811.90.8050 
and 4811.90.9080. While HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope of the investigation is dispositive.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional 
Measures
V. Scope Comments
VI. Discussion of the Methodology
    a. Determination of the Comparison Method
    b. Results of the Differential Pricing Analysis
VII. Date of Sale
VIII. Product Comparisons
IX. Constructed Export Price
X. Normal Value
    a. Home Market Viability
    b. Level of Trade
    c. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    d. Calculation of NV Based on Comparison Market Prices
XI. Currency Conversion
XII. Critical Circumstances

[FR Doc. 2015-21170 Filed 8-25-15; 8:45 am]
 BILLING CODE 3510-DS-P