81 FR 3104 - Certain Uncoated Paper From Indonesia: Final Affirmative Countervailing Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 12 (January 20, 2016)

The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of certain uncoated paper from Indonesia. For information on the estimated subsidy rates, see the ``Final Determination and Suspension of Liquidation'' section of this notice. The period of investigation (POI) is January 1, 2014, through December 31, 2014.

[Federal Register Volume 81, Number 12 (Wednesday, January 20, 2016)]
[Notices]
[Pages 3104-3105]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01026]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-560-829]


Certain Uncoated Paper From Indonesia: Final Affirmative 
Countervailing Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain uncoated paper from Indonesia. For information on the 
estimated subsidy rates, see the ``Final Determination and Suspension 
of Liquidation'' section of this notice. The period of investigation 
(POI) is January 1, 2014, through December 31, 2014.

DATES: Effective: January 20, 2016.

FOR FURTHER INFORMATION CONTACT: David Goldberger or Brandon Custard, 
Office II, AD/CVD Operations, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4136 or (202) 482-1823, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The events that occurred since the Department published the 
Preliminary Determination \1\ on June 29, 2015, are discussed in the 
Issues and Decision Memorandum, which is hereby incorporated in this 
notice.\2\ This memorandum also details the changes we made since the 
Preliminary Determination to the subsidy rates calculated for the 
mandatory respondents and all other producers/exporters. The Issues and 
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 Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed Issues and Decision 
Memorandum and the electronic version of the Issues and Decision 
Memorandum are identical in content.
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    \1\ See Certain Uncoated Paper From Indonesia: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination With Final Antidumping Determination, 80 FR 36971 
(June 29, 2015) (Preliminary Determination), and accompanying 
Decision Memorandum for the Preliminary Affirmative Countervailing 
Duty Determination in the Countervailing Duty Investigation of 
Certain Uncoated Paper from Indonesia (Preliminary Decision 
Memorandum).
    \2\ See memorandum entitled, ``Countervailing Duty Investigation 
of Certain Uncoated Paper from Indonesia: Issues and Decision 
Memorandum for the Final Affirmative Determination,'' dated 
concurrently with this notice (Issues and Decision Memorandum).
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Scope of the Investigation

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

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum, dated concurrently 
with this notice. A list of the issues that parties raised, and to 
which we responded in the Issues and Decision Memorandum, is attached 
to this notice as Appendix II.

Use of Facts Otherwise Available, Including Adverse Inferences

    For purposes of this final determination, we continue to rely on 
facts available and to draw an adverse inference, in accordance with 
sections 776(a) and (b) of the Act, to determine the subsidy rates for 
Great Champ Trading Limited (Great Champ) and Indah Kiat Pulp & Paper 
TBK (IK) and Pabrik Kertas Tjiwi Kimia (TK) \3\ because these companies 
failed to participate in this investigation and the Government of 
Indonesia (GOI) failed to provide requested information with respect to 
certain programs upon which we initiated an investigation.\4\
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    \3\ We found IK, TK, and PT Pindo Deli Pulp and Paper Mills to 
be cross-owned and, therefore, are assigning them a single 
countervailing duty rate. For further discussion, see Memorandum 
entitled, ``Cross-Ownership of Asia Pulp and Paper/Sinar Mas Group 
Companies: Countervailing Duty Investigation of Uncoated Paper from 
Indonesia,'' dated June 22, 2015.
    \4\ See Issues and Decision Memorandum, at pages 3-9.
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Final Determination and Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for PT Anugrah Kertas Utama (AKU) and APRIL Fine 
Paper Macao Commercial Offshore Limited (AFPM) (collectively, the APRIL 
companies). Section 705(c)(5)(A)(i) of the Act states that, for 
companies not individually investigated, we will determine an ``all-
others'' rate equal to the weighted-average countervailable subsidy 
rates established for exporters and producers individually 
investigated, excluding any zero and de minimis countervailable subsidy 
rates, and any rates determined entirely under section 776 of the Act. 
Where the rates for investigated companies are zero or de minimis, or 
based entirely on facts otherwise available, section 705(c)(5)(A)(ii) 
of the Act instructs the Department to establish an ``all-others'' rate 
using ``any reasonable method.'' As discussed above, we determined 
Great Champ's and IK's/TK's rates based entirely on AFA in accordance 
with sections 776(a) and (b) of the Act. Therefore, we used the rate 
calculated for the APRIL companies as the ``all-others'' rate. We 
intend to disclose to parties the calculations performed in this 
proceeding within five days of the public announcement of this final 
determination in accordance with 19 CFR 351.224(b).
    We determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                               Subsidy
                          Company                                rate
                                                              (percent)
------------------------------------------------------------------------
APRIL Fine Paper Macao Commercial Offshore Limited/PT              21.22
 Anugrah Kertas Utama/PT Riau Andalan Kertas/PT Intiguna
 Primatama/PT Riau Andalan Pulp & Paper/PT Esensindo Cipta
 Cemerlang.................................................
Great Champ Trading Limited................................       104.00
Indah Kiat Pulp & Paper TBK/Pabrik Kertas Tjiwi Kimia/PT          109.15
 Pindo Deli Pulp and Paper Mills...........................
All-Others.................................................        21.22
------------------------------------------------------------------------

    As a result of our affirmative Preliminary Determination, pursuant 
to sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise from Indonesia which were entered or withdrawn from 
warehouse, for consumption on or after June 29, 2015, the date of the 
publication of the Preliminary Determination in the Federal Register.

[[Page 3105]]

    In accordance with section 703(d) of the Act, we later issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after October 27, 2015, but to continue the suspension 
of liquidation of all entries from June 29, 2015, through October 26, 
2015, as appropriate.
    We will issue a CVD order and reinstate the suspension of 
liquidation in accordance with our final determination and under 
section 706(a) of the Act if the United States International Trade 
Commission (ITC) issues a final affirmative injury determination, and 
we will instruct CBP to require a cash deposit of estimated 
countervailing duties for such entries of merchandise in the amounts 
indicated above. If the ITC determines that material injury, or threat 
of material injury, does not exist, this proceeding will be terminated 
and all estimated duties deposited as a result of the suspension of 
liquidation will be refunded.

International Trade Commission (ITC) Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    This notice serves as the only reminder to parties subject to the 
administrative protective order (APO) of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return/destruction of APO materials or conversion 
to judicial protective order is hereby requested. Failure to comply 
with the regulations and terms of an APO is a violation which is 
subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: January 8, 2016.
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. For 
purposes of this scope definition, paper shall be considered 
``printed with final content'' where at least one side of the sheet 
has printed text and/or graphics that cover at least five percent of 
the surface area of the entire sheet.
    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 Issues and Decision Memorandum

I. Summary
II. Background
III. Use of Facts Otherwise Available
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
    1. Adverse Facts Available for Great Champ
    2. Whether the Stumpage Program Meets the Specificity 
Requirement
    3. Whether the Stumpage Program Applies to Purchases of Felled 
Trees
    4. Whether To Include APRIL's Harvest of Mixed Hardwood Timber 
in Calculating Countervailable Benefits
    5. Whether To Use Malaysian Stumpage Fees as a Benchmark
    6. Whether the Log Export Ban Constitutes a Countervailable 
Subsidy
    7. Selection of Timber Benchmark Values
    8. Adjustments to Log Benchmark Values
    9. Corrections and Revisions to APRIL's Log Harvesting and 
Purchase Data
    10. Whether APRIL Received a Countervailable Debt Forgiveness 
Benefit
    11. Whether APRIL Received a Countervailable Benefit for 
Preferential Loans
    12. Uncreditworthiness
VII. Recommendation

[FR Doc. 2016-01026 Filed 1-19-16; 8:45 am]
BILLING CODE 3510-DS-P