83 FR 32268 - Supercalendered Paper From Canada: Final Results of Changed Circumstances Review and Revocation of Countervailing Duty Order

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 134 (July 12, 2018)

The Department of Commerce (Commerce) is revoking the countervailing duty (CVD) order on supercalendered paper (SC paper) from Canada.

[Federal Register Volume 83, Number 134 (Thursday, July 12, 2018)]
[Notices]
[Pages 32268-32269]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14921]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-854]


Supercalendered Paper From Canada: Final Results of Changed 
Circumstances Review and Revocation of Countervailing Duty Order

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

SUMMARY: The Department of Commerce (Commerce) is revoking the 
countervailing duty (CVD) order on supercalendered paper (SC paper) 
from Canada.

DATES: Applicable August 3, 2015.

FOR FURTHER INFORMATION CONTACT: Emily Halle or Nicholas Czajkowski, 
AD/CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone (202) 482-0176 or (202) 482-1395, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On December 10, 2015, Commerce published the CVD Order on SC paper 
from Canada.\1\ On March 21, 2018, Verso Corporation (Verso) (i.e., the 
petitioner) requested that Commerce conduct a changed circumstances 
review (CCR), pursuant to section 782(h)(2) of the Tariff Act of 1930, 
as amended (the Act) and 19 CFR 351.222(g)(l)(i). Verso expressed a 
lack of interest in the enforcement or existence of the CVD Order, and 
requested the retroactive revocation of the CVD Order, effective August 
3, 2015.\2\ Commerce published the initiation of this CCR on May 14, 
2018.\3\ The parties to this proceeding provided comments on May 21, 
2018.\4\ On June 21, 2018, pursuant to 19 CFR 351.302(b), Commerce 
extended the time limit for completing this CCR.\5\
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    \1\ See Supercalendered Paper from Canada: Countervailing Duty 
Order, 80 FR 76668 (December 10, 2015) (CVD Order).
    \2\ See Letter from Verso, ``Supercalendered Paper from Canada/
Request for Changed Circumstances Review,'' March 21, 2018 (Verso 
Request).
    \3\ See Supercalendered Paper from Canada: Initiation of Changed 
Circumstances Review, 83 FR 22249 (May 14, 2018) (Initiation 
Notice).
    \4\ See Letter from Verso, et. al., ``Supercalendered Paper from 
Canada (C-122-854): Joint Comments on Initiation of Changed 
Circumstances Review,'' May 21, 2018.
    \5\ See Letter to Verso Corporation, ``Countervailing Duty Order 
on Supercalendered Paper from Canada: Changed Circumstances Review; 
Extension of Deadline for Final Results,'' dated June 21, 2018.
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Final Results of Changed Circumstances Review, and Revocation of the 
Order

    Pursuant to section 751(d)(1) of the Act, and 19 CFR 351.222(g), 
Commerce may revoke an antidumping duty or CVD order, in whole or in 
part, based on a review under section 751(b) of the Act (i.e., a CCR). 
Section 751(b)(1) of the Act requires a CCR to be conducted upon 
receipt of a request which shows changed circumstances sufficient to 
warrant a review. Section 782(h)(2) of the Act gives Commerce the 
authority to revoke an order if producers accounting for substantially 
all of the production of the domestic like product have expressed a 
lack of interest in the order. Section 351.222(g) of Commerce's 
regulations provides that Commerce will conduct a CCR under 19 CFR 
351.216, and may revoke an order (in whole or in part), if it concludes 
that: (i) Producers accounting for substantially all of the production 
of the domestic like product to which the order pertains have expressed 
a lack of interest in the relief provided by the order, in whole or in 
part; or (ii) if other changed circumstances sufficient to warrant 
revocation exist. Both the Act and Commerce's regulations require that 
``substantially all'' domestic producers express a lack of interest in 
the order for Commerce to revoke the order, in whole or in part.\6\ 
Commerce has interpreted ``substantially all'' to represent producers 
accounting for at least 85 percent of U.S. production of the domestic 
like product.\7\ In the Initiation

[[Page 32269]]

Notice, we stated that Verso's request indicated it accounts for at 
least 85 percent of domestic production.\8\ We received no comments 
concerning Verso's claim regarding its production or otherwise 
indicating a lack of industry support with respect to this CCR.
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    \6\ See section 782(h) of the Act and 19 CFR 351.222(g).
    \7\ See Honey from Argentina; Antidumping and Countervailing 
Duty Changed Circumstances Reviews; Preliminary Intent to Revoke 
Antidumping and Countervailing Duty Orders, 77 FR 67790, 67791 
(November 14, 2012), unchanged in Honey from Argentina; Final 
Results of Antidumping and Countervailing Duty Changed Circumstances 
Reviews; Revocation of Antidumping and Countervailing Duty Orders, 
77 FR 77029 (December 31, 2012).
    \8\ See Initiation Notice, 83 FR at 22249.
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    As noted in the Initiation Notice, Verso requested the revocation 
of this CVD Order because it is no longer interested in maintaining the 
CVD Order or in the imposition of duties on the subject merchandise as 
of August 3, 2015.\9\ We conclude that producers accounting for 
substantially all of the production of the domestic like product, to 
which this CVD Order pertains, lack interest in the relief provided by 
the CVD Order. We find that the petitioner's affirmative statement of 
no interest in the CVD Order constitutes good cause for the conduct of 
this review.
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    \9\ Id.
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    On May 21, 2018, Commerce received comments from Verso, the 
Government of Canada, the Government of New Brunswick, the Government 
of Nova Scotia, the Government of Ontario, the Government of Quebec, 
Irving Paper Limited, Port Hawkesbury Paper L.P., Resolute FP Canada 
Inc., and Resolute FP US Inc. In a joint filing, these parties, who 
represent all of the interested parties to this proceeding, stated 
their agreement with the outcome proposed in the Initiation Notice. 
Moreover, the parties cited to 19 CFR 351.216(e), which provides that, 
when all parties agree to the outcome, Commerce will issue its final 
results of CCR within 45 days of the initiation.
    Accordingly, we are notifying the public that we are revoking the 
CVD Order, in whole. Based on Verso's request that revocation be 
retroactive to August 3, 2015, and because we have not completed any 
administrative reviews of the CVD Order, we will instruct U.S. Customs 
and Border Protection (CBP) to discontinue the suspension of 
liquidation and the collection of cash deposits of estimated 
countervailing duties, to liquidate all unliquidated entries that were 
entered on or after August 3, 2015, without regard to countervailing 
duties, and to refund all CVD cash deposits on all such merchandise, 
with applicable interest.

Scope of the Order

    The product covered by the order is SC paper. SC paper is uncoated 
paper that has undergone a calendering process in which the base sheet, 
made of pulp and filler (typically, but not limited to, clay, talc, or 
other mineral additive), is processed through a set of supercalenders, 
a supercalender, or a soft nip calender operation.\10\
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    \10\ Supercalendering and soft nip calendering processing, in 
conjunction with the mineral filler contained in the base paper, are 
performed to enhance the surface characteristics of the paper by 
imparting a smooth and glossy printing surface. Supercalendering and 
soft nip calendering also increase the density of the base paper.
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    The scope of this order covers all SC paper regardless of basis 
weight, brightness, opacity, smoothness, or grade, and whether in rolls 
or in sheets. Further, the scope covers all SC paper that meets the 
scope definition regardless of the type of pulp fiber or filler 
material used to produce the paper.
    Specifically excluded from the scope are imports of paper printed 
with final content of printed text or graphics.
    Subject merchandise primarily enters under Harmonized Tariff 
Schedule of the United States (HTSUS) subheading 4802.61.3035, but may 
also enter under subheadings 4802.61.3010, 4802.62.3000, 4802.62.6020, 
and 4802.69.3000. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the scope 
of the order is dispositive.

Instructions to U.S. Customs and Border Protection

    Because we determine that there are changed circumstances that 
warrant the revocation of the CVD Order, in whole, we will instruct CBP 
to discontinue the suspension of liquidation and the collection of cash 
deposits of estimated countervailing duties, to liquidate all 
unliquidated entries that were entered on or after August 3, 2015, 
without regard to countervailing duties, and to refund all CVD cash 
deposits on all such merchandise, with applicable interest.

Notification to Interested Parties

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition 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 sanctionable violation.
    We are issuing and publishing these final results and revocation, 
in whole, and notice in accordance with sections 751(b) and 777(i) of 
the Act and 19 CFR 351.216, 19 CFR 351.221(c)(3), and 19 CFR 351.222.

    Dated: July 5, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2018-14921 Filed 7-11-18; 8:45 am]
 BILLING CODE 3510-DS-P