米国 ティッシュ A/D、CVD 仮決定

米国 International Trade Administration は4月22日付で中国の Vietnam Quijiang Paper Co., Ltd. からのティシュペーパー輸入に対し、アンチダンピングおよび相殺関税を仮決定した。
90日以内に最終決定される見通し。
http://frwebgate6.access.gpo.gov/cgi-bin/waisgate.cgi?WAISdocID=12892245602+0+0+0&WAISaction=retrieve

米国 ティッシュ A/D、CVD 仮決定” への1件のコメント

  1. [Federal Register: April 22, 2008 (Volume 73, Number 78)]
    [Notices]
    [Page 21580-21588]
    From the Federal Register Online via GPO Access [wais.access.gpo.gov]
    [DOCID:fr22ap08-28]
    =======================================================================
    ———————————————————————–
    DEPARTMENT OF COMMERCE
    International Trade Administration
    [A-570-894]
    Certain Tissue Paper Products From the People’s Republic of
    China: Affirmative Preliminary Determination of Circumvention of the
    Antidumping Duty Order and Extension of Final Determination
    AGENCY: Import Administration, International Trade Administration,
    Department of Commerce.
    Preliminary Determination
    We preliminarily determine that certain tissue paper products
    (“tissue paper”) produced by Vietnam Quijiang Paper Co., Ltd.
    (“Quijiang”) are circumventing the antidumping duty order on tissue
    paper from the People’s Republic of China (“PRC”), as provided in
    section 781(b) of the Tariff Act of 1930, as amended (“the Act”). See
    Notice of Amended Final Determination of Sales at Less than Fair Value
    and Antidumping Duty Order: Certain Tissue Paper Products from the
    People’s Republic of China, 70 FR 16223 (March 30, 2005) (“Order”).
    DATES: Effective Date: April 22, 2008.
    FOR FURTHER INFORMATION CONTACT: Julia Hancock, Office 9, Import
    Administration, International Trade Administration, U.S. Department of
    Commerce, 14th Street and Constitution Avenue, NW., Washington, DC,
    20230; telephone: (202) 482-1394.
    SUPPLEMENTARY INFORMATION:
    Background
    On July 19, 2006, the Seaman Paper Company of Massachusetts, Inc.
    (“Petitioner”) requested that the Department of Commerce (“the
    Department”) initiate a circumvention inquiry pursuant to section
    781(b) of the Act, and 19 CFR 351.225(h), to determine whether imports
    of tissue paper from Vietnam made from PRC-origin jumbo rolls are
    circumventing the antidumping duty order on tissue paper from the PRC.
    See Petitioner’s Request for a circumvention Inquiry, (July 19, 2006)
    (“Circumvention Petition”); Order. Petitioner alleged that sending
    PRC-origin jumbo rolls of tissue paper to Vietnam for completion or
    assembly into tissue paper products covered by the Order constitutes
    circumvention pursuant to section 781(b) of the Act.
    On July 21, 2006, Petitioner amended the Circumvention Petition to
    include certain business proprietary information. On August 11, 2006,
    Quijiang submitted comments regarding Petitioner’s July 21, 2006,
    request for an anti-circumvention inquiry. On August 14, 2006, the
    Department requested that the Petitioner submit documentation
    referenced, but not included, in its July 21, 2006, request. On August
    18, 2006, Petitioner submitted a response to the Department’s August
    14, 2006, request. On August 21, 2006, Petitioner submitted comments on
    Quijiang’s August 11, 2006, submission.
    On September 5, 2006, the Department initiated a circumvention
    inquiry on certain imports of tissue paper from Vietnam. See Certain
    Tissue Paper Products from the People’s Republic of China: Initiation
    of Circumvention Inquiry, 71 FR 53662 (September 12, 2006)
    (“Initiation”). In the Initiation notice, the Department stated that
    it would focus its analysis on the significance of the production
    process in Vietnam by Quijiang, the company the Petitioner identified
    in its circumvention request.
    However, in the Initiation notice, the Department also stated that
    Quijiang had admitted on the record of the first administrative review
    of the Order that it received jumbo rolls of tissue paper produced by
    its PRC parent company, Guilin Qifeng Paper Co., Ltd. (“Guilin
    Qifeng”). Guilin Qifeng is the sole owner of Quijiang. According to
    Quijiang, Guilin Qifeng, which is a tissue paper processor and exporter
    located in Guangxi, PRC, established Quijiang in June 2004.
    Additionally, Quijiang stated that Guilin Qifeng was the sole supplier
    of the PRC-origin jumbo rolls, which Quijiang converted to cut-to-
    length tissue paper that was exported to the United States. See
    Quijiang’s First Questionnaire Response, (December 11, 2006) at 4-8.
    Accordingly, for purposes of this circumvention inquiry, the Department
    has focused its analysis on whether PRC-origin jumbo rolls supplied by
    Guilin Qifeng that were converted to cut-to-length tissue paper
    products by Quijiang are circumventing the Order, as provided in
    section 781(b) of the Act.
    Questionnaires
    On September 27, 2006, Petitioner submitted comments concerning the
    initial questionnaire to be issued to Quijiang. On October 6, 2006,
    Cleo Inc. (“Cleo”), a U.S. importer, submitted rebuttal comments to
    Petitioner’s September 27, 2006, submission. On October 26, 2006,
    Petitioner submitted surrebuttal comments to Cleo’s October 6, 2006,
    submission.
    Between November 2, 2006, and December 3, 2007, the Department
    issued six questionnaires to Quijiang soliciting information regarding
    Quijiang’s tissue paper production and exports to the United States to
    which Quijiang responded. Between January 8, 2007, and April 3, 2008,
    Petitioner and Cleo submitted comments on Quijiang’s questionnaire
    responses and whether the Department should suspend liquidation and
    collect cash deposits on all entries of tissue paper from Quijiang.
    Surrogate Country Comments
    In this case, both the country that produced the jumbo rolls and
    the country that produced the tissue paper products from the jumbo
    rolls are considered non-market economy (“NME”) countries.\1\
    Therefore, because the production of jumbo rolls and the cut-to-length
    tissue paper are performed in NME countries, we used surrogate values
    to determine whether the value of processing performed in Vietnam
    represents a small portion of the value of the merchandise sold in the
    United States. Accordingly, pursuant to section 773(c)(4) of the Act,
    in valuing the FOPs, the Department shall utilize, to the extent
    possible, the prices or costs of factors of production (“FOPs”) in
    one or more market-economy countries that are at a level of economic
    development comparable to that of the NME country and are significant
    producers of comparable merchandise.
    —————————————————————————
    \1\ In accordance with section 771(18)(C)(i) of the Act, any
    determination that a foreign country is an NME country shall remain
    in effect until revoked by the administering authority. See
    Preliminary Determination of Sales at Less Than Fair Value and
    Postponement of Final Determination: Coated Free Sheet Paper from
    the People’s Republic of China, 72 FR 30758, 30760 (June 4, 2007),
    unchanged in Final Determination of Sales at Less Than Fair Value:
    Coated Free Sheet Paper from the People’s Republic of China, 72 FR
    60632 (October 25, 2007); Certain Frozen Fish Fillets from the
    Socialist Republic of Vietnam: Final Results of the Second
    Administrative, 72 FR 13242 (March 21, 2007) (“FFF2 Final
    Results”). No party has challenged the designation of the PRC or
    Vietnam as an NME country in this investigation. Therefore, we
    continue to treat the PRC and Vietnam as NME countries for purposes
    of the preliminary determination of this circumvention inquiry.
    —————————————————————————
    On November 5, 2007, the Department determined that India,
    Indonesia, Sri Lanka, the Philippines, and Egypt are countries
    comparable to the PRC and also determined that Bangladesh, Pakistan,
    India, Sri Lanka, and Indonesia are countries comparable to
    [[Page 21581]]
    Vietnam in terms of economic development. See Memorandum from Ron
    Lorentzen, Director, Office of Policy, to Alex Villanueva, Program
    Manager, China/NME Group, Office 9: Circumvention Inquiry of the
    Antidumping Duty Order of Certain Tissue Paper Products from the
    People’s Republic of China (PRC): Request for a List of Surrogate
    Countries, (November 5, 2007) (“Surrogate Country List”).
    On November 8, 2007, the Department requested comments on the
    selection of a surrogate country from the interested parties in this
    circumvention inquiry. On November 29, 2007, Petitioner submitted
    surrogate country comments requesting that India be selected as the
    appropriate surrogate country for valuing factors of production for
    both the PRC and Vietnam. No other interested party commented on the
    selection of a surrogate country. For a detailed discussion of the
    selection of the surrogate country, see “Surrogate Country” section
    below.
    Surrogate Value Comments
    On December 20, 2008, Petitioner submitted surrogate factor
    valuation comments. No other interested party submitted surrogate
    factor valuation comments. For a detailed discussion of the selection
    of the surrogate values, see “Calculation of Value-Added” section
    below.
    Verification
    On January 10, 2008, the Department issued the verification outline
    to Guilin Qifeng and Quijiang notifying them that the Department would
    verify Guilin Qifeng from February 19 to February 22, 2008, and would
    verify Quijiang from February 25 to February 27, 2008.
    On February 14, 2008, Quijiang submitted a letter requesting that
    the Department postpone the scheduled verification by one month because
    neither Quijiang nor Guilin Qifeng would be prepared when verification
    was scheduled to commence. On Feburary 15, 2008, Petitioner submitted a
    letter opposing Quijiang’s request to delay the scheduled verification.
    On February 15, 2008, the Department notified Quijiang and Petitioner
    that it was not going to conduct the verification scheduled for
    February 19, 2008.
    Extension of Determination
    On June 29, 2007, August 14, 2007, and January 4, 2008, the
    Department extended the determination deadline of this circumvention
    inquiry. The preliminary determination of this circumvention inquiry is
    currently due April 14, 2008.
    Scope of the Antidumping Duty Order
    The tissue paper products subject to this order are cut-to-length
    sheets of tissue paper having a basis weight not exceeding 29 grams per
    square meter. Tissue paper products subject to this order may or may
    not be bleached, dye-colored, surface-colored, glazed, surface
    decorated or printed, sequined, crinkled, embossed, and/or die cut. The
    tissue paper subject to this order is in the form of cut-to-length
    sheets of tissue paper with a width equal to or greater than one-half
    (0.5) inch. Subject tissue paper may be flat or folded, and may be
    packaged by banding or wrapping with paper or film, by placing in
    plastic or film bags, and/or by placing in boxes for distribution and
    use by the ultimate consumer. Packages of tissue paper subject to this
    order may consist solely of tissue paper of one color and/or style, or
    may contain multiple colors and/or styles.
    The merchandise subject to this order does not have specific
    classification numbers assigned to them under the Harmonized Tariff
    Schedule of the United States (“HTSUS”). Subject merchandise may be
    under one or more of several different subheadings, including: 4802.30;
    4802.54; 4802.61; 4802.62; 4802.69; 4804.31.1000; 4804.31.2000;
    4804.31.4020; 4804.31.4040; 4804.31.6000; 4804.39; 4805.91.1090;
    4805.91.5000; 4805.91.7000; 4806.40; 4808.30; 4808.90; 4811.90;
    4823.90; 4820.50.00; 4802.90.00; 4805.91.90; 9505.90.40. The tariff
    classifications are provided for convenience and customs purposes;
    however, the written description of the scope of this order is
    dispositive.\2\
    —————————————————————————
    \2\ On January 30, 2007, at the direction of U.S. Customs and
    Border Protection (“CBP”), the Department added the following
    HTSUS classifications to the AD/CVD module for tissue paper:
    4802.54.3100, 4802.54.6100, and 4823.90.6700. However, we note that
    the six-digit classifications for these numbers were already listed
    in the scope.
    —————————————————————————
    Excluded from the scope of this order are the following tissue
    paper products: (1) Tissue paper products that are coated in wax,
    paraffin, or polymers, of a kind used in floral and food service
    applications; (2) tissue paper products that have been perforated,
    embossed, or die-cut to the shape of a toilet seat, i.e., disposable
    sanitary covers for toilet seats; (3) toilet or facial tissue stock,
    towel or napkin stock, paper of a kind used for household or sanitary
    purposes, cellulose wadding, and webs of cellulose fibers (HTSUS
    4803.00.20.00 and 4803.00.40.00).
    Scope of the Circumvention Inquiry
    The products covered by this inquiry are jumbo rolls of tissue
    paper that are exported from the PRC to Vietnam where they are
    converted, possibly dyed and/or printed, into tissue paper products, as
    described above in the “Scope of the Antidumping Duty Order” section.
    This inquiry only covers such products that are exported to the United
    States by Quijiang.
    Statutory Provisions Regarding Circumvention
    Section 781(b) of the Act provides that the Department may find
    circumvention of an antidumping duty order when merchandise of the same
    class or kind subject to the order is completed or assembled in a
    foreign country other than the country to which the order applies. In
    conducting circumvention inquiries under section 781(b) of the Act, the
    Department relies upon the following criteria: (A) Merchandise imported
    into the United States is of the same class or kind as any merchandise
    produced in a foreign country that is subject to an antidumping duty
    order; (B) before importation into the United States, such imported
    merchandise is completed or assembled in another foreign country from
    merchandise which is subject to the order or produced in the foreign
    country that is subject to the order; (C) the process of assembly or
    completion in the foreign country referred to in (B) is minor or
    insignificant; and (D) the value of the merchandise produced in the
    foreign country to which the antidumping duty order applies is a
    significant portion of the total value of the merchandise exported to
    the United States.
    The Department’s questionnaires issued to Quijiang and its PRC
    parent company, Guilin Qifeng, were designed to elicit information for
    purposes of conducting both qualitative and quantitative analyses in
    accordance with the criteria enumerated in section 781(b) of the Act,
    as outlined above. This approach is consistent with our analyses in
    prior circumvention inquiries. See Circumvention and Scope Inquiries on
    the Antidumping Duty Order on Certain Frozen Fish Fillets from the
    Socialist Republic of Vietnam: Partial Affirmative Final Determination
    of Circumvention of the Antidumping Duty Order, Partial Final
    Termination of Circumvention Inquiry and Final Rescission of Scope
    Inquiry, 71 FR 38608 (July 7, 2006) (“FFF Circumvention Final”);
    Anti-Circumvention Inquiry of the Antidumping and Countervailing Duty
    [[Page 21582]]
    Orders on Certain Pasta from Italy: Affirmative Final Determinations of
    Circumvention of Antidumping and Countervailing Duty Orders, 68 FR
    54888 (September 19, 2003) (“Pasta Circumvention Final”); Hot-Rolled
    Lead and Bismuth Carbon Steel Products from Germany and the United
    Kingdom; Negative Final Determinations of Circumvention of Antidumping
    and Countervailing Duty Orders, 64 FR 40336 (July 26, 1999). To
    ascertain the value of the completed merchandise exported to the United
    States we requested PRC production data of jumbo rolls produced by
    Guilin Qifeng and Vietnam production data of the processing and
    packaging operations performed by Quijiang.
    Statutory Analysis
    (A) Whether Merchandise Sold in the United States Is of the Same Class
    or Kind as Other Merchandise That Is Subject to the Order
    The Order covers cut-to-length sheets of tissue paper equal to or
    greater than 0.5 inches in width, with a basis weight not exceeding 29
    grams per square meter and other specified characteristics of the
    scope. The merchandise subject to this inquiry is tissue paper products
    exported to the United States by Quijiang produced from PRC-origin
    jumbo rolls. The information provided by Quijiang in its questionnaire
    responses indicates that the tissue paper products produced from PRC-
    origin jumbo rolls it exported to the United States meet the written
    description of the products subject to the Order. See Quijiang’s First
    Questionnaire Response, (December 11, 2006) at Appendix 7. Quijiang
    submitted a product list showing that all the tissue paper products it
    produced and exported to the United States were below the basis weight
    of 29 grams per square meter, which is the weight that merchandise
    subject to the Order is not to exceed. See Quijiang’s Second
    Questionnaire Response, (April 3, 2007) at Exhibit S1-2. A review of
    the product list also shows that Quijiang’s tissue paper products meet
    other criteria identified in the Order such as dyed, printed, etc.
    Finally, we note that Quijiang has not argued that its exports of
    tissue paper products to the United States are not of the same class or
    kind of merchandise as that subject to the Order. Accordingly, we find
    that the merchandise subject to this inquiry is the same class or kind
    of merchandise as that subject to the Order.
    (B) Whether Merchandise Sold in the United States Is Completed or
    Assembled in Another Foreign Country From Merchandise Which Is Subject
    to the Order or Produced in the Foreign Country That Is Subject to the
    Order
    In this proceeding, the merchandise exported to the United States
    is tissue paper products processed in Vietnam from PRC-origin jumbo
    rolls of tissue paper. Qujiang has reported that it exported tissue
    paper that was processed in Vietnam using PRC-origin jumbo rolls of
    tissue paper as the input. See Quijiang’s First Questionnaire Response,
    at 6. Specifically, Quijiang stated that it imported PRC-origin jumbo
    rolls of tissue paper produced by its parent company, Guilin Qifeng,
    which were then converted, possibly dyed and/or printed, into cut-to-
    length tissue paper. See id. at 6 and Appendix 1. Additionally,
    Quijiang reported that it exported tissue paper that was processed in
    Vietnam using PRC-origin jumbo rolls between July 2004 and July 2006.
    See Quijiang’s Sixth Questionnaire Response, (January 4, 2008) at 22.
    Accordingly, we find that the merchandise subject to this circumvention
    inquiry was completed in Vietnam from PRC-origin jumbo rolls that were
    produced in the country to which this Order applies.
    (C) Whether the Process of Assembly or Completion in the Foreign
    Country Is Minor or Insignificant
    Section 781(b)(2) of the Act provides the criteria for determining
    whether the process of assembly or completion is minor or
    insignificant. These criteria are:
    (a) The level of investment in the foreign country;
    (b) the level of research and development in the foreign country;
    (c) the nature of the production process in the foreign country;
    (d) the extent of the production facilities in the foreign country;
    and
    (e) whether the value of the processing performed in the foreign
    country represents a small proportion of the value of the merchandise
    imported into the United States.
    The Statement of Administrative Action (“SAA”) accompanying the
    Uruguay Round Agreements Act, H. Doc. No. 103-316, at 893 (1994),
    provides some guidance with respect to these criteria. It explains that
    no single factor listed in section 781(b)(2) of the Act will be
    controlling. Accordingly, it is the Department’s practice to evaluate
    each of the factors as they exist in the United States or foreign
    country depending on the particular circumvention scenario. Therefore,
    the importance of any one of the factors listed under section 781(b)(2)
    of the Act can vary from case to case depending on the particular
    circumstances unique to each circumvention inquiry.
    In this circumvention inquiry, we based our analysis on both
    qualitative and quantitative factors in determining whether the process
    of converting the jumbo rolls in Vietnam was minor or insignificant, in
    accordance with the criteria of section 781(b)(2) of the Act. This
    approach is consistent with our analysis in prior circumvention
    inquiries. See Anti-Circumvention Inquiry of the Antidumping and
    Countervailing Duty Orders on Certain Pasta From Italy: Affirmative
    Preliminary Determinations of Circumvention of Antidumping and
    Countervailing Duty Orders, 68 FR 46571 (August 6, 2003) (“Pasta
    Circumvention Prelim”) (unchanged in Pasta Circumvention Final, 68 FR
    54888).
    (a) The Level of Investment in Vietnam
    For purposes of this circumvention inquiry, we analyzed the level
    of investment in Quijiang that is associated with converting the PRC-
    origin jumbo rolls into finished cut-to-length tissue paper.
    Specifically, we reviewed the level of investment in Quijiang for the
    conversion process by Quijiang’s parent company, Guilin Qifeng, and
    Quijiang’s investment on its own behalf.
    Quijiang reported that its operations in Vietnam for converting
    jumbo rolls into cut-to-length tissue paper are comprised of equipment
    sourced in three ways: (1) Assets identified as “purchase from
    China,” which consist of equipment that Quijiang purchased from its
    parent company, Guilin Qifeng; (2) assets identified as “Guilin Qifeng
    Investment,” which are assets that Guilin Qifeng physically moved to
    Quijiang but nevertheless retained ownership; and (3) assets identified
    as “Vietnam domestic purchase,” which are assets or equipment that
    Quijiang purchased in Vietnam. See Quijiang’s Second Questionnaire
    Response, at 7. Additionally, Quijiang identified the types of
    equipment and where that equipment was used in the production of cut-
    to-length tissue paper products, (i.e., Quijiang identified what type
    of equipment, such as cutting machines, was used in the processing
    workshop where the jumbo rolls were converted). Id., at Exhibit S2-5.
    Moreover, Quijiang stated that for the assets that were sourced in
    these three ways, the first method, which is identified as “purchases
    from China,” is Guilin Qifeng’s investment and that the second
    [[Page 21583]]
    and third method, which are identified as “purchases from China” and
    “Vietnamese domestic purchases,” is Quijiang’s investment. Id.
    With respect to Guilin Qifeng’s investment in Quijiang for the
    conversion of the jumbo rolls, Quijiang stated that these assets were
    in use by Guilin Qifeng immediately prior to their physical transfer to
    Quijiang. See Quijiang’s Second Questionnaire Response, at 7.
    Specifically, Quijiang stated that these assets were transferred to
    Quijiang from Guilin Qifeng in the following manner: (1) Dissembling,
    packing, and loading the assets or equipment onto a truck; (2)
    transporting the assets or equipment across the border from China to
    Quijiang in Vietnam; and (3) unloading, assembling, and testing the
    assets or equipment. See Quijiang’s Sixth Questionnaire Response, at 25
    and Appendix S6-29. The facts show that the vast majority of the
    equipment or assets that were transferred from Guilin Qifeng to
    Quijiang to be used in converting the PRC-origin jumbo rolls to cut-to-
    length tissue paper were not new assets as nearly all of this equipment
    had been in use by Guilin Qifeng prior to their transfer. Therefore, we
    find that Guilin Qifeng’s investment in Quijiang that was used for
    converting the PRC-origin jumbo rolls to cut-to-length tissue paper was
    not new investment because almost all of the assets that consist of
    this investment were in prior use by Guilin Qifeng. However, we will
    use Guilin Qifeng’s investment in Quijiang for the conversion process
    in determining whether Quijiang’s own investment was minor or
    insignificant because the assets or equipment representing Guilin
    Qifeng’s investment were used in the conversion process and there were
    some expenses incurred for moving the equipment and getting it situated
    in Vietnam.
    We calculated the total level of investment in Quijiang for
    converting PRC-origin jumbo rolls into cut-length tissue paper and find
    that the Guilin Qifeng’s investment (i.e., assets transferred from
    Guilin Qifeng) is significant as compared to the level of investment,
    (i.e., purchases from China and Vietnamese domestic purchases),
    provided by Quijiang. See Memorandum to the File from Julia Hancock,
    Senior Case Analyst, through Alex Villanueva, Program Manager, AD/CVD
    Operations, Office 9: Circumvention Inquiry on Certain Tissue Paper
    Products from the People’s Republic of China: Proprietary Analysis of
    Certain Statutory Factors for Vietnam Quijiang for the Preliminary
    Determination, (April 14, 2008) (“Analysis Memorandum”).
    Specifically, Guilin Qifeng’s overall investment in the conversion of
    the PRC-origin jumbo rolls accounts for approximately 75 percent of
    total investment whereas Quijiang’s total investment accounts for
    approximately only 25 percent of the total investment for equipment
    used in converting PRC-origin jumbo rolls.\3\ Id. Accordingly, we find
    that the level of investment by Quijiang for equipment used in
    converting the PRC-origin jumbo rolls is minor or insignificant
    compared to the level of investment provided by Guilin Qifeng.
    —————————————————————————
    \3\ Because this information is business proprietary, the values
    have been ranged by plus or minus 10 percent.
    —————————————————————————
    (b) The Level of Research and Development (“R&D”) in Vietnam
    We find that the record evidence for this circumvention inquiry
    demonstrates that Quijiang has not undertaken a significant level of
    R&D in order to process tissue paper products. In describing the level
    of R&D in the tissue paper industry in Vietnam, Quijiang reported that
    the tissue paper industry is a mature, traditional and labor intensive
    industry and that there is not much research and development involved
    in this industry. See Quijiang’s First Questionnaire Response, at 10.
    Additionally, the limited role of R&D in the tissue paper industry in
    Vietnam is further supported by the fact that Quijiang confirmed that
    it did not undertake any R&D initiatives and expenditures involved with
    tissue paper processing. See Quijiang’s Sixth Questionnaire Response,
    at 25. Accordingly, based on facts on the record of this circumvention
    inquiry and because the conversion of jumbo rolls to tissue paper
    products is a technically mature process, we find that R&D into the
    process of producing tissue paper products is not a significant factor
    in the Vietnamese tissue paper industry.
    (c) The Nature of the Production Process in Vietnam
    As discussed above, the element of the tissue paper production
    process performed by Quijiang in Vietnam is the conversion of the PRC-
    origin jumbo rolls to cut-to-length tissue paper. According to
    Quijiang, the entire process to produce cut-to-length tissue paper from
    the raw input, paper pulp, occurs in six stages. See Quijiang’s First
    Questionnaire Response, at Exhibit 1. However, according to Quijiang’s
    questionnaire responses, Quijiang’s conversion of the PRC-origin jumbo
    rolls covers only the last two stages of the overall production
    process.\4\ Id. According to Quijiang, seasonal workers were used in
    the conversion of the PRC-origin jumbo rolls to cut-to-length tissue
    paper during the final stage of the overall production process, which
    is primarily a manual operation. In contrast to the production process
    of converting PRC-origin jumbo rolls to cut-to-length tissue, Quijiang
    stated that Guilin Qifeng’s production of the PRC-origin jumbo rolls
    involved the first four stages of the overall production process
    required to produce cut-to-length tissue paper.\5\ According to
    Quijiang, the fourth stage of the overall production process requires
    three shifts of workers and is labor intensive. Id.
    —————————————————————————
    \4\ The first of the final two stages of the overall production
    process that involve the conversion of the jumbo rolls involves the
    following: (1) Workers unrolling and re-rolling the jumbo roll
    during the surface coloring, decorating, or embossing process; (2)
    preparing the dye and dip-dying the jumbo rolls; (3) multi-color
    printing the jumbo rolls on the printing machines; and (4) cutting
    the jumbo rolls to length on the cutting machines. The second of the
    final two stages of the overall production process that involve the
    conversion of the jumbo rolls involves the following: (1) Counting
    and folding the sheets prior to packaging; (2) packaging the sheets
    in polyethylene bags, sealing, and labeling the bags; and (3)
    packing the bags of tissue paper in cartons, which are tied in
    plastic strip and then shipped to the customer.
    \5\ The first of the first four stages of the overall production
    process that involve the production of the jumbo rolls is the
    blending stage (i.e., this involves water and paper pulp being
    blended in a tank into a pulp mixture, which is pumped into crude
    stock storage). The second of the first four stages of the overall
    production process that involves the production of the jumbo rolls
    is the stock grinding stage (i.e., this involves refining the crude
    stock by grinding the fibers into shorter lengths and then
    cleaning). The third of the first four stages of the overall
    production process that involve the production of the jumbo rolls is
    the stock preparation stage (i.e., this involves the refined stock
    being pumped from a storage vat into a preparation tank where
    whiteners, dyes, or other fixatives may be added). The fourth of the
    first four stages of the overall production process that involve the
    production of the jumbo rolls is the paper-making stage (i.e., this
    involves the prepared stock being moved onto a porous cylinder where
    the wet paper is then transferred to a second spinning cylinder and
    is wrapped onto and passes over a heated drum as it rotates).
    —————————————————————————
    Based on the above descriptions, we find that, in contrast to the
    first four stages of the overall production process that involved the
    production of jumbo rolls, which require significant equipment involved
    in the process and labor, the final two stages of the overall
    production process that involved the conversion of PRC-origin jumbo
    rolls are limited to cutting, dyeing, printing, and packaging/packing
    the cut-to-length tissue paper. Moreover, the facts on the record show
    that there is limited equipment and labor involved in these two stages
    of the production process. Accordingly, we find that the
    [[Page 21584]]
    production process conducted by Quijiang in converting the PRC-origin
    jumbo rolls to cut-to-length tissue paper is limited and minor when
    compared to the production process of the jumbo rolls.
    (d) The Extent of Production Facilities in Vietnam
    In analyzing the extent of the production facilities, we have
    considered the capital equipment used in the production process, the
    types of employees, and whether the facilities used by Quijiang in the
    conversion process were permanent facilities.
    Quijiang states that when it began operations in July 2004, the
    facility had four conversion lines and dip-dyeing machines that were
    used to convert PRC-origin jumbo rolls to cut-to-length paper. See
    Quijiang’s First Questionnaire Response, at 8. A review of the records
    of the equipment at this facility shows that the capital equipment used
    to convert PRC-origin jumbo rolls to cut-to-length tissue paper
    consisted of paper-cutting machines, electronic scales, trolleys, and
    bed-plate. See Quijiang’s Second Questionnaire Response, at Exhibit S1-
    5. Additionally, Quijiang also reports that it leased two facilities to
    conduct the printing and packaging processes. A review of the records
    of the equipment at these facilities shows that the capital equipment
    used to print and package the cut-to-length tissue paper consisted of
    packaging working tables and printing machines. Id., at Exhibits S1-4
    and S1-5.
    In comparison, Quijiang states that Guilin Qifeng produced the PRC-
    origin jumbo rolls at one location in Guilin, PRC. See Quijiang’s Fifth
    Questionnaire Response, at 6. A review of Guilin Qifeng’s production
    process shows that the capital equipment used to produce the stock for
    the paper mixture consisted of numerous blending lines that have stock
    storage, storage vats, and numerous stock preparation tanks. See
    Quijiang’s Fourth Questionnaire Response, at Appendix S4-5.
    Additionally, Guilin Qifeng’s production process shows that the capital
    equipment used to produce the jumbo roll from the paper mixture
    consisted of two facilities that had numerous long net machines and
    numerous round net machines. Id. The facts on the record show that the
    capital equipment used by Guilin Qifeng to produce the PRC-origin jumbo
    rolls requires sophisticated machinery, such as blending lines and long
    net machines. In contrast, the capital equipment used by Quijiang to
    convert the PRC-origin jumbo rolls to cut-to-length tissue paper did
    not require sophisticated capital equipment since the machinery only
    consisted of paper-cutting machines, packaging tables, etc. Therefore,
    based on the facts on the record, we find that Quijiang has not made
    substantial purchases of sophisticated machinery to convert PRC-origin
    jumbo rolls to cut-to-length tissue paper.
    With regard to the level of employees involved in the conversion of
    PRC-origin jumbo rolls to cut-to-length tissue paper, Quijiang reported
    that skilled labor is involved in the first of the final two stages of
    the overall production process, cutting, dyeing, and printing of the
    jumbo rolls, is a semi-automatic operation. However, according to
    Quijiang, the last of the final two stages of the overall production
    process for converting the PRC-origin jumbo rolls to cut-to-length
    tissue paper is a manual operation, which involves unskilled labor
    folding and packaging the tissue paper. See Quijiang’s First
    Questionnaire Response, at 12. Additionally, Quijiang reported that the
    workers involved in the packaging and packing of the cut-to-length
    tissue paper are seasonal workers. Id., at Exhibit S1-5. Moreover,
    according to Quijiang, there are more workers involved during the last
    of the final two stages. Id. Based on a review of the labor involved in
    the conversion of PRC-origin jumbo rolls to cut-to-length tissue paper,
    we find that most of Quijiang’s labor force consists of unskilled
    workers that are employed on a temporary basis.
    Quijiang reports that the headquarters facility, which housed the
    conversion lines, and the two facilities which conducted the printing
    and packaging, were all leased by Quijiang from other, unaffiliated
    parties between July 2004 and July 2006. See Quijiang’s Second
    Questionnaire Response, at Exhibit S1-3. Because the three facilities
    where Quijiang converted the PRC-origin jumbo rolls to cut-to-length
    tissue paper were leased rather than owned, we find that Quijiang’s
    production facilities were temporary, rather than permanent.
    Accordingly, based on the fact that Quijiang’s capital equipment was
    not substantial, Quijiang’s labor force primarily consisted of
    unskilled temporary workers, and the facilities were leased, we find
    that the extent of Quijiang’s production facilities to convert PRC-
    origin jumbo rolls to cut-to-length tissue paper was minimal.
    (e) Whether the Value of the Processing Performed in Vietnam Represents
    a Small Portion of the Value of the Merchandise Sold in the United
    States
    In prior circumvention cases pursuant to section 781(a) and section
    781(b) of the Act, where the Department must determine whether the
    value of processing either in the United States or in a third country
    is minor, we used the U.S. sales and cost of production data because
    the countries at issue were market economy countries. See Pasta
    Circumvention Prelim, 68 FR at 46575 (unchanged in Pasta Circumvention
    Final, 68 FR 54888); Certain Carbon Steel Butt-Weld Pipe Fittings from
    the People’s Republic of China: Affirmative Final Determination of
    Circumvention of Antidumping Duty Order, 59 FR 15155, 15156 (March 31,
    1994). However, in this case, both the country that produced the jumbo
    rolls and the country that produced the tissue paper products from the
    jumbo rolls are considered NME countries. Therefore, because the
    production of jumbo rolls and the cut-to-length tissue paper is
    performed in NME countries, we used surrogate values to determine
    whether the value of processing performed in Vietnam represents a small
    portion of the value of the merchandise sold in the United States.
    In accordance with section 773(c)(4) of the Act, in valuing the
    factors of production (“FOPs”), the Department shall utilize, to the
    extent possible, the prices or costs of FOPs in one or more market-
    economy countries that are at a level of economic development
    comparable to that of the NME country and are significant producers of
    comparable merchandise. The Department selected India as the surrogate
    country for both the PRC and Vietnam on the basis that: (1) It is at a
    similar level of economic development pursuant to section 773(c)(4) of
    the Act; (2) it is a significant producer of comparable merchandise;
    and (3) we have reliable data from India. See Memorandum to the File
    from Julia Hancock, through Alex Villanueva, Program Manager, AD/CVD
    Operations, Office 9, and James C. Doyle, Director, AD/CVD Operations,
    Office 9: Circumvention Inquiry on Certain Tissue Paper Products from
    the People’s Republic of China: Surrogate Country and Surrogate Values
    for the Preliminary Determination (April 14, 2008) (“Surrogate Country
    and Value Memorandum”). Thus, we have calculated the value of
    processing performed in Vietnam and the value of the PRC-origin jumbo
    rolls using surrogate prices from India. The sources
    [[Page 21585]]
    of the surrogate values we have used in this circumvention inquiry are
    discussed in the Surrogate Country and Value Memorandum.
    To calculate the value of the PRC-origin jumbo rolls, we used
    publicly available Indian import prices for Harmonized Tariff Schedule
    (“HTS”) 4802.54.50, described as “Uncoated Paper in Rolls, under 40
    grams, Tissue Paper,” as reported in the Monthly Statistics of the
    Foreign Trade of India.\6\ We calculated the surrogate value for PRC-
    origin jumbo rolls using monthly data for July 2004 to July 2006
    because Quijiang reported that July 2006 was the last month that Guilin
    Qifeng produced jumbo rolls that were sold to Quijiang. See Quijiang’s
    Sixth Questionnaire Response, at 12 and Appendix S6-16. We converted
    the surrogate value into U.S. dollars, in accordance with section
    773A(a) of the Act, based on the exchange rates in effect for July 1,
    2004, to July 31, 2006, as certified by the Federal Reserve Bank. For
    further information, see Surrogate Country and Value Memorandum.
    —————————————————————————
    \6\ The same import prices are also available from the World
    Trade Atlas (“WTA”), published by Global Trade Information
    Services, Inc., which is a secondary electronic source based upon
    the publication Monthly Statistics of the Foreign Trade of India.
    Volume II: Imports.
    —————————————————————————
    To calculate the value of Quijiang’s processing of the finished
    merchandise, we used Quijiang’s FOPs for each stage of converting PRC-
    origin jumbo rolls to tissue paper, i.e., from the cutting of the jumbo
    rolls into cut-to-length sheets of tissue paper, dyeing (where
    appropriate), printing (where appropriate), and packaging of the final
    product. See Quijiang’s First Questionnaire Response, at Exhibit 1. We
    multiplied the reported per-unit factor consumption rates by the Indian
    surrogate values.\7\ In selecting the surrogate values, we considered
    the quality, specificity, and contemporaneity of the data.
    —————————————————————————
    \7\ As appropriate, we adjusted input prices by including
    freight costs to make them delivered prices. Specifically, we added
    to Indian import surrogate values a surrogate freight cost using the
    shorter of the reported distance from the domestic supplier to the
    factory or the distance from the nearest seaport to the factory
    where appropriate. This adjustment is in accordance with the Court
    of Appeals for the Federal Circuit’s decision in Sigma Corp. v.
    United States, 117 F.3d 1401, 1407-08 (Fed. Cir. 1997).
    Additionally, we made currency conversions into U.S. dollars, in
    accordance with section 773A(a) of the Act, based on the exchange
    rates in effect on the dates of the U.S. sales as certified by the
    Federal Reserve Bank.
    —————————————————————————
    To derive the value added to the finished merchandise by Quijiang’s
    processing, we divided the total value of the finished merchandise
    (i.e., sum of the surrogate value of the PRC-origin jumbo rolls and
    Quijiang’s value of processing), by Quijiang’s value of processing. The
    value added to the finished merchandise by Quijiang’s processing is an
    average value of approximately 34 percent.\8\ Based on our analysis of
    the value added, we find that the value of the processing performed by
    Quijiang to convert the PRC-origin jumbo rolls to cut-to-length tissue
    paper does not represent a small proportion of the value of the
    finished merchandise sold in the United States. See Analysis
    Memorandum.
    —————————————————————————
    \8\ Because this information is business proprietary, we have
    ranged the values by plus or minus 10 percent.
    —————————————————————————
    Summary of Analysis of Whether the Process of Assembly or Completion in
    the Foreign Country Is Minor or Insignificant
    In sum, we preliminarily conclude that the record evidence of this
    circumvention inquiry supports a finding that the process or completion
    of the PRC-origin jumbo rolls to cut-to-length tissue paper in Vietnam
    is minor or insignificant. Pursuant to section 781(b)(2)(A) of the Act,
    we find that the level of investment by Quijiang in the equipment used
    to convert the PRC-origin jumbo rolls is minor compared to the level of
    investment provided by Guilin Qifeng. Pursuant to section 781(b)(2)(B)
    of the Act, we find that the absence of R&D initiatives by Quijiang in
    the production of tissue paper products shows that R&D is not a
    significant factor in the Vietnamese tissue paper industry. Pursuant to
    section 781(b)(2)(C) of the Act, we find that the portion of the
    overall production process of cut-to-length tissue paper conducted by
    Quijiang in converting the PRC-origin jumbo rolls to cut-to-length
    tissue paper is limited and minor when compared to Guilin Qifeng’s
    share of the overall production process in the production of the jumbo
    rolls. Pursuant to section 781(b)(2)(D) of the Act, we find that the
    extent of Quijiang’s production facilities is minor with respect to
    converting PRC-origin jumbo rolls to cut-to-length tissue paper because
    the capital equipment used by Quijiang in converting the PRC-origin
    jumbo rolls is not substantial in comparison to the capital equipment
    used by Guilin Qifeng to produce the jumbo rolls, the labor force used
    by Quijiang is composed primarily unskilled workers, and Quijiang’s
    facilities were leased, not permanent. Finally, pursuant to section
    781(b)(2)(E) of the Act, we find that value of the processing performed
    by Quijiang to convert the PRC-origin jumbo rolls to cut-to-length
    tissue paper does not represent a small proportion of the value of the
    finished merchandise sold in the United States.
    While the statutory factor, section 781(b)(2)(E) of the Act, is
    inconclusive, the information on the record regarding the four other
    statutory factors, sections 781(b)(2)(A),(B),(C), and (D) of the Act,
    shows that the processing operation to convert PRC-origin jumbo rolls
    to cut-to-length tissue paper in Vietnam is minor or insignificant. We
    have based our decision as to whether the processing operation to
    convert PRC-origin jumbo rolls to cut-to-length tissue paper is minor
    or insignificant based on the totality of the record evidence of this
    circumvention inquiry. Specifically, the legislative history to section
    781(b) indicates that Congress intended the Department to make
    determinations regarding circumvention on a case-by-case basis in
    recognition that the facts of individual cases and the nature of
    specific industries vary widely. See S. Rep. No. 103-412 (1994), at 81-
    82.
    Although we find pursuant to section 781(b)(2)(E) of the Act, that
    the value of the processing performed by Quijiang to convert the PRC-
    origin jumbo rolls to cut-to-length tissue paper does not represent a
    small proportion of the value of the finished merchandise sold in the
    United States, the preponderance of the other record evidence, pursuant
    to sections 781(b)(2)(A),(B),(C), and (D) of the Act, shows that the
    value of the processing operation in Vietnam is minor or insignificant.
    Accordingly, based on a review of the record evidence, it is clear that
    the majority of the actual production process for cut-to-length tissue
    paper is concentrated in Guilin Qifeng’s production facilities in the
    PRC. Therefore, we find that the processing operation to convert PRC-
    origin jumbo rolls to cut-to-length tissue paper in Vietnam is minor or
    insignificant, pursuant to section 781(b)(1)(C) of the Act.
    (D) Whether the Value of the Merchandise Produced in the Foreign
    Country to Which the Order Applies Is a Significant Portion of the
    Total Value of the Merchandise Exported to the United States
    Under section 781(b)(1)(D) of the Act, the value of the merchandise
    produced in the foreign country to which the Order applies must be a
    significant portion of the total value of the merchandise sold in the
    United States in order to find circumvention. The major parts and
    components that consist of the total value of the cut-to-length tissue
    paper sold in the United States are: PRC-origin jumbo rolls, inks and
    dyes, and packaging materials. As
    [[Page 21586]]
    discussed in the section of “Whether Merchandise Sold in The United
    States is Completed or Assembled in Another Foreign Country From
    Merchandise Which Is Subject to the Order or Produced In the Foreign
    Country That Is Subject to the Order,” in all instances the PRC-origin
    jumbo rolls are imported from Guilin Qifeng, which is located in the
    PRC. Additionally, the value of the PRC-origin jumbo rolls is
    approximately an average value of 66 percent of the total value of the
    finished merchandise.\9\ As discussed above, although the value of the
    processing conducted in Vietnam is not small, we find that the value of
    the PRC-origin jumbo rolls constitutes a great majority of the value of
    the finished merchandise. Based on our analysis, the value of the PRC-
    origin jumbo rolls taken as a whole constitutes a significant portion
    of the value of the finished product ultimately sold in the United
    States.
    —————————————————————————
    \9\ Because this information is business proprietary, we have
    ranged the values by plus or minus 10 percent.
    —————————————————————————
    Other Factors To Consider
    In making a determination whether to include merchandise assembled
    or completed in a foreign country within an order, section 781(b)(3) of
    the Act instructs us to take into account such factors as: (A) The
    pattern of trade, including sourcing patterns; (B) whether affiliation
    exists between the exporter of the merchandise and the person who uses
    the merchandise to assemble or complete in the foreign country the
    merchandise that is sold in the United States; and (C) whether imports
    into the foreign country of the merchandise described in section
    781(b)(1)(B) have increased since the initiation of the original
    investigation. Each of these factors is examined below.
    (A) Pattern of Trade and Sourcing
    The first factor to consider under section 781(b)(3) is changes in
    the pattern of trade, including changes in the sourcing patterns. To
    evaluate the pattern of trade in this case, we examined Quijiang’s
    source channel of jumbo rolls. According to Quijiang, it started
    sourcing PRC-origin jumbo rolls from Guilin Qifeng in July 2004 to
    produce tissue paper products that Quijiang exported to the United
    States. See Quijiang’s First Questionnaire Response, at 12.
    Additionally, the record of this circumvention inquiry shows that
    between July 2004 and July 2006, Quijiang did not purchase PRC-origin
    jumbo rolls from any other supplier. See id., at Exhibit 11; Quijiang’s
    Sixth Questionnaire Response, at 13 and Appendix S6-16. Based on the
    facts on the record, we find that the fact that Quijiang sourced jumbo
    rolls from a PRC supplier to produce tissue paper products, which were
    exported to the United States, supports a finding that circumvention
    was occurring during this period.\10\
    —————————————————————————
    \10\ The Department recognizes that Petitioner submitted
    comments on February 4, 2008, alleging that Quijiang, contrary to
    its own declarations, continued to import semi-completed tissue
    paper products from the PRC after July 2006. However, the Department
    finds Petitioner’s evidence in support of its allegations to be
    inconclusive. Accordingly, a factual finding that Quijiang was not
    truthful in its statements to the Department with respect to this
    issue is not warranted. Thus, the Department cannot conclude either
    as a factual matter or based upon an adverse inference resulting
    from Quijiang’s failure to cooperate to the best of its ability that
    all exports of subject merchandise by Quijiang were produced from
    Chinese-origin semi-finished tissue paper products. However, if the
    Department reaches a final determination of circumvention in this
    proceeding, the 2007/2008 administrative review will cover all of
    Quijiang’s entries as of the date of initiation of this
    circumvention inquiry, and the Department will further investigate
    the issue of origin of all covered entries in the context of such
    review.
    —————————————————————————
    We also examined the timing and quantities of Quijiang’s exports to
    the United States of tissue paper that were produced from PRC-origin
    jumbo rolls since the initiation of the LTFV investigation in March
    2004. A review of Quijiang’s monthly total exports shows that from July
    2004 to July 2006, Quijiang’s exports of tissue paper products produced
    from PRC-origin rolls to the United States consisted of the majority of
    Quijiang’s total monthly exports. See Quijiang’s Fifth Questionnaire
    Response, at Exhibit 6. These data indicate that the monthly volume of
    Quijiang’s exports of tissue paper products produced from PRC-origin
    jumbo rolls to the United States was significant subsequent to the
    initiation of the LTFV investigation. Additionally, we examined the
    timing and quantities of exports of tissue paper from the PRC to the
    United States between 2004 and 2006, and exports of tissue paper from
    Vietnam to the United States between 2004 and 2006. A review of the
    data shows that PRC exports of tissue paper to the United States
    decreased by 59.2 percent between 2004 and 2006, whereas Vietnam
    exports of tissue paper to the United States increased by 1739.11
    percent between 2004 and 2006. See Analysis Memorandum. Accordingly,
    the data show that PRC exports have decreased significantly whereas
    Vietnamese exports have increased significantly since the initiation of
    the LTFV investigation. Therefore, based on the facts on the record, we
    find that the pattern of trade has changed since the initiation of the
    LTFV investigation and the imposition of the Order and thus, supports a
    finding that circumvention has occurred.
    (B) Affiliation
    The second factor to consider under section 781(b)(3) of the Act is
    whether the manufacturer or exporter of the tissue paper is affiliated
    with the entity that assembles or completes the merchandise sold in the
    United States from the imported PRC-origin jumbo rolls. Generally, we
    consider circumvention to be more likely to occur when the manufacturer
    of the covered merchandise is related to the third country assembler
    and is a critical element in our evaluation of circumvention. See Color
    Picture Tubes From Canada, Japan, Republic of Korea & Singapore:
    Negative Final Determinations of Circumvention of Antidumping Duty
    Orders, 56 FR 9667 (March 7, 1991) and accompanying Issues and Decision
    Memorandum at Comment 8. The record evidence of this circumvention
    inquiry indicates that the Vietnamese assembler, Quijiang, which
    converted the PRC-origin jumbo rolls into tissue paper products, is a
    wholly-owned subsidiary of Guilin Qifeng. See Quijiang’s First
    Questionnaire Response, at 4. Accordingly, because Quijiang is 100
    percent owned by Guilin Qifeng, we find that Quijiang and Guilin Qifeng
    are affiliated, pursuant to section 771(33) of the Act. Additionally,
    the record evidence shows that Guilin Qifeng was Quijiang’s sole
    supplier of PRC-origin jumbo rolls. See Quijiang’s Second Questionnaire
    Response, at 3. In sum, we find that the record evidence demonstrates
    that the relationship between Quijiang and Guilin Qifeng supports a
    finding that circumvention of the Order may have occurred during the
    period of investigation.
    (C) Whether Imports Have Increased
    The third factor to consider under section 781(b)(3) is whether
    imports into the foreign country of the merchandise described in
    section 781(b)(1)(B) have increased since the initiation of the
    original investigation. Generally, we consider circumvention to be more
    likely when imports of jumbo rolls, the merchandise imported from the
    PRC, have increased into Vietnam. Because Quijiang was not established
    until June 2004, we reviewed Quijiang’s imports of PRC-origin jumbo
    rolls from July 2004, which was when it began importing PRC-origin
    jumbo rolls, to the issuance of the Order, and compared these imports
    to those after the issuance of the Order. See Quijiang’s First
    [[Page 21587]]
    Questionnaire Response, at Exhibit 11. The Department finds that
    Quijiang’s imports of PRC-origin jumbo rolls were at their highest
    levels in the months after the issuance of the Order through July 2006.
    Id.
    Additionally, the Department obtained PRC export data of tissue
    paper products to Vietnam since 2004, which was the year that the LTFV
    investigation was initiated. The Department has obtained PRC export
    data of HTS 4802.54, which is defined as “Paper/Paperboard (Excluding
    Mechanical Fibers), Weighing

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