Preliminary Determination of Sales at Less Than Fair Value: Certain Cased Pencils From Thailand

DEPARTMENT OF COMMERCE

[A-549-808]

Preliminary Determination of Sales at Less Than Fair Value:

Certain Cased Pencils From Thailand

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: June 16, 1994.

FOR FURTHER INFORMATION CONTACT: Vincent Kane or Thomas McGinty, Office

of Countervailing Investigations, Import Administration, International

Trade Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue NW., Washington, DC, 20230; telephone (202) 482-

2815 or 482-5055.

PRELIMINARY DETERMINATION: We preliminarily determine that imports of

certain cased pencils from Thailand are being, or are likely to be,

sold in the United States at less than fair value, as provided in

section 733 of the Tariff Act of 1930, as amended (the Act). The

estimated margins are shown in the ``Suspension of Liquidation''

section of this notice.

Case History

Since the initiation of this investigation on November 30, 1993,

(58 FR 64548, December 8, 1993), the following events have occurred:

On December 27, 1993, the U.S. International Trade Commission (ITC)

issued an affirmative preliminary injury determination in this case

(Investigation Nos.-731-TA-669-670 (Preliminary) (Publication 2713).

On January 5, 1994, the Department of Commerce (the Department)

delivered antidumping duty questionnaires to Aruna Company, Ltd.

(Aruna) and Nan Mee Industry Co., Ltd. (Nan Mee). At the time a

questionnaire was sent to Nan Mee, we did not know that Aruna accounted

for over 60 percent of exports of the subject merchandise to the United

States. On January 14, 1994, Nan Mee informed the Department that it

had no sales for export to the United States during the period of

investigation (POI). Based on import statistics obtained from the U.S.

Customs Service, we determined that Aruna accounted for at least 60

percent of exports of the subject merchandise to the United States

during the period of investigation (POI). These statistics also

confirmed that Nan Mee had no exports to the United States during the

POI. On January 28, 1994, Aruna notified the Department that it would

not participate in this investigation. No questionnaire response was

filed by Aruna.

On March 29, 1994, at the request of petitioner, the Department

postponed the preliminary determination until June 8, 1994, in

accordance with section 733 of the Act.

Scope of Investigation

The products covered by these investigation are certain cased

pencils of any shape or dimension which are writing and/or drawing

instruments that feature cores of graphite or other materials encased

in wood and/or man-made materials, whether or not decorated and whether

or not tipped (e.g., with erasers, etc.) in any fashion, and either

sharpened or unsharpened. The pencils subject to these investigations

are classified under subheading 9609.10.00 of the Harmonized Tariff

Schedule of the United States (``HTSUS'').

Specifically excluded from the scope of this investigation are

mechanical pencils, cosmetic pencils, pens, non-cased crayons (wax),

pastels, charcoals, or chalks.

Although the HTSUS subheading is provided for convenience and

customs purposes, our written description of the scope of this

investigation is dispositive.

Period of Investigation

The period of investigation is June 1, 1993, through November 30,

1993.

Best Information Available

Because Aruna failed to respond to our questionnaire, we based our

preliminary determination on best information available (BIA) in

accordance with section 776(c) of the Act. Section 776(c) states that

the Department may use BIA where a company has refused to provide

information requested in the form required, or has otherwise

significantly impeded the Department's investigation.

In determining what rate to use as BIA when a party refuses to

provide requested information, the Department follows a two-tiered

methodology. See, Final Determination of Sales at Less than Fair Value:

Certain Hot-Rolled Carbon Steel Flat Products, Certain Cold-Rolled

Carbon Steel Flat Products, and Certain Cut-to-Length Carbon Steel

Plate from Belgium, 58 FR 37083, (July 9, 1993). Under this

methodology, the Department uses as BIA the higher of (1) the margin

alleged in the petition; or (2) the highest calculated rate of any

respondent in the investigation. Since there is no calculated rate in

this investigation, we have assigned to Aruna and all other exporters

the highest rate contained in the petition with one adjustment.

Petitioner based the highest rate on a comparison of average U.S.

prices from import statistics with the highest of four home market

price quotes as the basis for foreign market value (FMV). Rather than

use the highest home market price quote as FMV, we have used an average

of the four home market price quotes. We have made this adjustment

because the petitioner used an average price derived from import

statistics as U.S. price. On this basis we have calculated a BIA rate

of 48.3 percent.

Suspension of Liquidation

In accordance with section 733(d)(1) of the Act, we are directing

the U.S. Customs Service to suspend liquidation of all entries of

certain cased pencils from Thailand that are entered, or withdrawn from

warehouse, for consumption on or after the date of publication of this

notice in the Federal Register. The Customs Service shall require a

cash deposit or posting of a bond equal to the estimated preliminary

dumping margin, as shown below. The suspension of liquidation will

remain in effect until further notice.

------------------------------------------------------------------------

Margin

Producer/Manufacturer/Exporter percentage

------------------------------------------------------------------------

All companies............................................... 48.3

------------------------------------------------------------------------

ITC Notification

In accordance with section 733(f) of the Act, we have notified the

ITC of our determination. If our final determination is affirmative,

the ITC will determine whether these imports are materially injuring,

or threaten material injury to, the U.S. industry before the later of

120 days after the date of this preliminary determination or 45 days

after our final determination.

Public Comment

In accordance with 19 CFR 353.38, case briefs or other written

comments in at least ten copies must be submitted to the Assistant

Secretary for Import Administration no later than July 1, 1994, and

rebuttal briefs, no later than July 8, 1994. In accordance with 19 CFR

353.38(b), we will hold a public hearing, if requested, to afford

interested parties an opportunity to comment on arguments raised in

case or rebuttal briefs. Tentatively, the hearing will be held on July

12, 1994, at 10:00 a.m. at the U.S. Department of Washington, DC 20230.

Parties should confirm by telephone the time, date, and place of the

hearing 48 hours before the scheduled time.

Interested parties who wish to request a hearing or to participate

if one is requested, must submit a written request to the Assistant

Secretary for Import Administration, U.S. Department of Commerce, room

B-099, within ten days of the publication of this notice. Requests

should contain (1) the party's name, address, and telephone number; (2)

the number of participants; and (3) a list of the issues to be

discussed. In accordance with 19 CFR 353.38(b), oral presentations will

be limited to issues raised in the briefs. If this investigation

proceeds normally, we will make our final determination by August 22,

1994.

This determination is published pursuant to section 733(f) of the

Act and 19 CFR 353.15(a)(4).

Dated: June 8, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-14625 Filed 6-15-94; 8:45 am]

BILLLING CODE 3510-DS-P