81 FR 71703 - Certain Uncoated Paper From Portugal: Initiation and Preliminary Results of Antidumping Duty Changed Circumstances Review

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 201 (October 18, 2016)

The Department of Commerce (the ``Department'') preliminarily determines that The Navigator Company, S.A. and Navigator Fine Paper, S.A. (collectively ``Navigator'') is the successor in interest to Portucel, S.A. and Portucel Soporcel Fine Paper, S.A. (collectively ``Portucel'') for purposes of the antidumping duty order on certain uncoated paper from Portugal and, as such, is entitled to Portucel's cash deposit rate with respect to entries of subject merchandise. Interested parties are invited to comment on these preliminary results.

[Federal Register Volume 81, Number 201 (Tuesday, October 18, 2016)]
[Notices]
[Pages 71703-71705]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-25172]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-471-807]


Certain Uncoated Paper From Portugal: Initiation and Preliminary 
Results of Antidumping Duty Changed Circumstances Review

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

SUMMARY: The Department of Commerce (the ``Department'') preliminarily 
determines that The Navigator

[[Page 71704]]

Company, S.A. and Navigator Fine Paper, S.A. (collectively 
``Navigator'') is the successor in interest to Portucel, S.A. and 
Portucel Soporcel Fine Paper, S.A. (collectively ``Portucel'') for 
purposes of the antidumping duty order on certain uncoated paper from 
Portugal and, as such, is entitled to Portucel's cash deposit rate with 
respect to entries of subject merchandise. Interested parties are 
invited to comment on these preliminary results.

DATES: Effective October 18, 2016.

FOR FURTHER INFORMATION CONTACT: Carrie Bethea, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
1491.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the antidumping duty order for certain 
uncoated paper from Portugal in the Federal Register on March 3, 
2016.\1\ In the underlying less than fair value investigation, the 
Department collapsed Portucel, S.A. and Portucel Soporcel Fine Paper, 
S.A. for purposes of antidumping treatment.\2\ On August 26, 2016, the 
Department received a request on behalf of Navigator for an expedited 
changed circumstance review (``CCR'') to establish Navigator as the 
successor-in-interest to Portucel for purposes of the antidumping duty 
order on certain uncoated paper from Portugal.\3\ We received no 
comments opposing Navigator's request.
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    \1\ See Certain Uncoated Paper from Australia, Brazil, 
Indonesia, the People's Republic of China, and Portugal: Amended 
Final Affirmative Antidumping Determinations for Brazil and 
Indonesia and Antidumping Duty Orders, 42 FR 11174 (March 3, 2016) 
(``Order'').
    \2\ See Certain Uncoated Paper from Portugal: Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination, 80 FR 51777 (August 26, 2015) (unchanged in 
final results), Certain Uncoated Paper from Portugal: Final 
Determination of Sales at Less Than Fair Value and Final Negative 
Determination of Critical Circumstances, 81 FR 3105 (January 20, 
2016).
    \3\ Letter to the Secretary from Navigator, regarding, ``Certain 
Uncoated Paper from Portugal: Request for Changed Circumstances 
Review,'' dated August 26, 2016 (``CCR Request'').
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Scope of the Order

    The merchandise covered by this order 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 \4\ 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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    \4\ 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.
    The product is currently classified 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.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(``the Act'') and 19 CFR 351.216(c)-(d), the Department will only 
conduct a changed circumstances review less than 24 months after the 
date of publication of the final determination with good cause and upon 
receipt of information concerning, or a request from an interested 
party for a review of, an antidumping duty finding which shows changed 
circumstances sufficient to warrant a review of the order.
    Navigator has shown that good cause exists to conduct a changed 
circumstance review because the name change will affect its import 
documentation before U.S. Customs and Border Protection (``CBP''), thus 
affecting CBP's treatment of its entries. The information submitted by 
Navigator claiming that Navigator is the successor-in-interest to 
Portucel also demonstrates changed circumstances sufficient to warrant 
a review. Therefore, in accordance with section 751(b)(1) of the Act 
and 19 CFR 351.216(c)-(d), the Department is initiating a changed 
circumstances review to determine whether Navigator is the successor-
in-interest to Portucel.

Preliminary Results

    The Department may issue the notice of initiation of the review and 
the preliminary results concurrently when it concludes that expedited 
action is warranted.\5\ We find that expedited action is warranted 
because we have the information necessary on the record to make a 
preliminary finding. Therefore, we are combining the notice of 
initiation and the notice of preliminary results in accordance with 19 
CFR 351.221(c)(3)(ii).
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    \5\ 19 CFR 351.221(c)(3)(ii); see also Initiation and 
Preliminary Results of Antidumping Duty Changed Circumstances 
Review: Multilayered Wood Flooring from the People's Republic of 
China, 80 FR 7842 (Feb. 12, 2015); Certain Frozen Warmwater Shrimp 
from the Socialist Republic of Vietnam: Initiation and Preliminary 
Results of Changed Circumstances Review, 77 FR 4993 (February 1, 
2012).
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    In determining whether one company is the successor to another for 
purposes of applying the antidumping duty (``AD'') law, the Department 
examines a number of factors including, but not limited to, changes in 
(1) management, (2) production facilities, (3) suppliers, and (4) 
customer base.\6\ While no one or several of these factors will 
necessarily provide a dispositive indication of succession, the 
Department will generally consider one company to be the successor to 
another company if its resulting operation is essentially the same as 
that of its predecessor.\7\ Thus, if the evidence demonstrates that, 
with

[[Page 71705]]

respect to the production and sale of the subject merchandise, the new 
company operates as the same business entity as the prior company, the 
Department will assign the new company the cash deposit rate of its 
predecessor.\8\
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    \6\ See, e.g., Notice of Preliminary Results of Antidumping Duty 
Changed Circumstances Review: Polychloroprene Rubber from Japan, 69 
FR 61796, 61797 (October 21, 2004).
    \7\ Id.
    \8\ See, e.g.,Certain Circular Welded Carbon Steel Pipes and 
Tubes from Taiwan: Initiation of Antidumping Duty Changed 
Circumstance Review, 70 FR 17063, 17064 (April 4, 2005); Fresh and 
Chilled Atlantic Salmon from Norway: Final Results of Changed 
Circumstances Administrative Review, 64 FR 9979, 9980 (March 1, 
1999).
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    In its August 26, 2016 submission, Navigator provided documentation 
demonstrating that Navigator is the successor in interest to Portucel 
in that no major changes occurred with respect to management, 
production process, customer base, or suppliers.\9\
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    \9\ See, generally, CCR Request.
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    According to the information provided, no material changes in 
management,\10\ operations,\11\ or ownership \12\ have occurred in the 
businesses as a result of the name change from Portucel to Navigator. 
Navigator's General Managers, Board of Directors, and shareholders have 
not materially changed from Portucel's following its name change.\13\ 
Navigator's production facilities and production of subject merchandise 
remain the same as Portucel.\14\ Navigator has maintained Portucel's 
business model as a vertically integrated producer such that there are 
no material changes in its suppliers.\15\ Navigator continues to export 
to the same sole customer in the United States as Portucel, thus there 
are no material changes between Portucel's and Navigator's customer 
bases.\16\
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    \10\ Id. at Attachment 2 and 4 (showing any changes in Board of 
Directors to be routine and unrelated to the successor-in-interest 
claim).
    \11\ Id. at Attachment 1, 6, and 7.
    \12\ Id. at Attachment 8; see also Certain Pasta from Turkey: 
Preliminary Results of Countervailing Duty Changed Circumstances 
Review, 74 FR 47225 (September 15, 2009) (unchanged in final) (``the 
types of changes that we normally consider to be significant {. . . 
does not include. . .{time}  regular buying and selling of publicly 
owned shares held by a broad array of investors'').
    \13\ CCR Request at 3-4 and Attachments 2, 4, 6, and 7.
    \14\ Id. at Attachments 1, 6, and 7.
    \15\ Id. at Attachment 9.
    \16\ Id. at Attachment 10 (showing Navigator's U.S. affiliate's 
customers for fiscal year 2015 and January through July of 2016).
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    Should our final results remain the same as these preliminary 
results, effective the date of publication of the final results, we 
will instruct U.S. Customs and Border Protection to assign entries of 
subject merchandise exported by Navigator the antidumping duty cash-
deposit rate applicable to Portucel.

Public Comment

    Interested parties are invited to comment on these preliminary 
results. Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than 14 
days after the date of publication of this notice, 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.\17\ 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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    \17\ 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 14 days 
after the date of publication of this notice.\18\ 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.
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    \18\ See 19 CFR 351.310(c).
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    Consistent with 19 CFR 351.216(e), we will issue the final results 
of this changed circumstances review no later than 270 days after the 
date on which this review was initiated or within 45 days of 
publication of these preliminary results if all parties agree to our 
preliminary finding.
    We are issuing and publishing this initiation and preliminary 
results notice in accordance with sections 751(b)(1) and 777(i)(1) of 
the Act and 19 CFR 351.216 and 351.221(c)(3).

    Dated: October 7, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2016-25172 Filed 10-17-16; 8:45 am]
BILLING CODE 3510-DS-P