[Federal Register Volume 84, Number 22 (Friday, February 1, 2019)]
[Notices]
[Pages 1064-1067]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00754]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-076]


Certain Plastic Decorative Ribbon From the People's Republic of 
China: Final Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
producers and exporters of certain plastic decorative ribbon from the 
People's Republic of China (China) received countervailable subsidies 
for the period of investigation (POI) January 1, 2016, through December 
31, 2016.

DATES: Applicable February 1, 2019.

FOR FURTHER INFORMATION CONTACT: Charlotte Baskin-Gerwitz or Mark 
Hoadley, AD/CVD Operations, Office VII, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone (202) 482-4880 
or (202) 482-3148, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the Preliminary Determination of this 
investigation in the Federal Register on June 22, 2018.\1\ 
Subsequently, Commerce postponed the deadline for the final 
determination to December 21, 2018.\2\ A summary of the events that 
occurred since Commerce published the Preliminary Determination, as 
well as a full discussion of the issues raised by parties for this 
final determination, may be found in the Issues and Decision 
Memorandum.\3\ A list of topics included in the Issues and Decision 
Memorandum is included as Appendix II to this notice.
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    \1\ See Certain Plastic Decorative Ribbon from the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Determination with 
Determination with Final Antidumping Duty Determination, 83 FR 29096 
(June 22, 2018) (Preliminary Determination).
    \2\ See Certain Plastic Decorative Ribbon from the People's 
Republic of China: Postponement of Final Determination of Sales at 
Less Than Fair Value, 83 FR 40226 (August 14, 2018).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Plastic Ribbon from the People's Republic of China,'' dated 
concurrently with this determination and hereby adopted by this 
notice (Issues and Decision Memorandum).
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    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/. The signed Issues and Decision 
Memorandum and the electronic version are identical in content.

Period of Investigation

    The period of investigation is January 1, 2016, through December 
31, 2016.

[[Page 1065]]

Scope of the Investigation

    The merchandise covered by this investigation is certain plastic 
decorative ribbon from China. For a complete description of the scope 
of this investigation, see Appendix I.

Scope Comments

    We invited parties to comment on Commerce's Scope Comments 
Preliminary Decision Memorandum.\4\ Commerce has reviewed the briefs 
submitted by interested parties, considered the arguments therein, and 
has made changes to the scope of the investigation, including 
additional exclusions and clarifying language. For a summary of the 
scope comments and rebuttal responses submitted to the record for this 
final determination, along with the accompanying discussion and 
analysis of all comments timely received, see the Issues and Decision 
Memorandum.
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    \4\ See Memorandum, ``Certain Plastic Decorative Ribbon from the 
People's Republic of China: Scope Comments Preliminary Decision 
Memorandum'' (Preliminary Scope Decision Memorandum), dated July 30, 
2018.
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Verification

    In June 2018, Commerce conducted verifications of the questionnaire 
responses submitted by mandatory respondents Seng San Enterprises Co., 
Ltd. and its affiliated producer Xin Seng San Handicraft (ShenZhen) 
Co., Ltd. (collectively, Seng San), and Joynice Gifts and Crafts Co., 
Ltd. (Joynice) in accordance with section 782(i) of the Act. We issued 
verification reports for Seng San and Joynice on July 18, 2018.\5\ We 
used standard verification procedures, including an examination of 
relevant accounting and financial records, and original source 
documents provided by Seng San and Joynice.
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    \5\ See Memorandum, ``Verification of the Questionnaire 
Responses of Seng San Enterprises Co., Ltd. in the Countervailing 
Duty Investigation of Certain Plastic Decorative Ribbon from the 
People's Republic of China,'' dated July 18, 2018; and Memorandum, 
``Verification of the Questionnaire Responses of Joynice Gifts and 
Crafts Co., Ltd. in the Countervailing Duty Investigation of Certain 
Plastic Decorative Ribbon from the People's Republic of China,'' 
dated July 18, 2018.
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Analysis of Subsidy Programs and Comments Received

    The issues raised in the case and rebuttal briefs that were 
submitted by interested parties are discussed in the Issues and 
Decision Memorandum. A list of the issues that parties raised, and to 
which we responded in the Issues and Decision Memorandum, is attached 
to this notice at Appendix II.

Use of Adverse Facts Available (AFA)

    Commerce relied on ``facts otherwise available,'' including AFA, 
for several findings in the Preliminary Determination. For the final 
determination, we are basing the countervailing duty (CVD) rates for 
Santa's Collection Shaoxing Co., Ltd. (Santa's Collection), Seng San, 
and Joynice on facts otherwise available, pursuant to sections 
776(a)(2)(A)-(C) and 776(b) of the Act. For a full discussion of AFA, 
see the Issues and Decision Memorandum.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received from parties and the 
minor corrections presented, we made certain changes to the 
respondents'' subsidy rate calculations set forth in the Preliminary 
Determination. For a discussion of these changes, see the Issues and 
Decision Memorandum.\6\
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    \6\ See Issues and Decision Memorandum.
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All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, Commerce 
calculated a countervailable subsidy rate for the individually 
investigated exporters/producers of the subject merchandise. Consistent 
with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of the Act, Commerce 
also calculated an estimated ``all-others'' rate for exporters and 
producers not individually investigated. Section 705(c)(5)(A)(i) of the 
Act provides that the ``all-others'' rate shall be an amount equal to 
the weighted-average of the countervailable subsidy rates established 
for individually investigated exporters and producers, excluding any 
rates that are zero or de minimis or any rates determined entirely 
under section 776 of the Act. In this investigation, Commerce 
calculated individual estimated countervailable subsidy rates for Seng 
San and Joynice that are not zero, de minimis, or based entirely on 
facts otherwise available. Because we do not have publicly ranged data 
from all company respondents with which to calculate the all-others 
rate using a weighted-average of the individual estimated subsidy 
rates, we calculated the all-others rate using a simple average of the 
individual estimated subsidy rates calculated for the examined 
respondents.

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established individual estimated countervailable subsidy rates for Seng 
San Enterprises Co., Ltd., and their cross-owned entities, Joynice 
Gifts & Crafts Co., Ltd, and Santa's Collection Shaoxing Co., Ltd.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Seng San Enterprises Co., Ltd...........................           18.03
Joynice Gifts & Crafts Co., Ltd.........................           14.27
Santa's Collection Shaoxing Co., Ltd....................           94.67
All-Others..............................................           16.15
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Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of public announcement of our final determination, in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and 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 all entries of 
merchandise under consideration from the PRC that were entered or 
withdrawn from warehouse, for consumption, on or after June 22, 2018, 
the date of publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we 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 20, 2018, but to continue the suspension 
of liquidation of all entries from June 22, 2018, as the case may be, 
through October 19, 2018.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject 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 or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of

[[Page 1066]]

the final affirmative determination of countervailable subsidies. 
Because the final determination in this proceeding is affirmative, in 
accordance with section 705(b) of the Act, the ITC will make its final 
determination as to whether the domestic industry in the United States 
is materially injured, or threatened with material injury, by reason of 
imports of certain plastic ribbon from China no later than 45 days 
after our final determination. If the ITC determines that material 
injury or threat of material injury does not exist, the proceeding will 
be terminated and all cash deposits will be refunded. If the ITC 
determines that such injury does exist, Commerce will issue a CVD order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing duties on all imports of the subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after the 
effective date of the suspension of liquidation, as discussed above in 
the ``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice will serve as a reminder to the parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305(a)(3). Timely written notification of 
return or 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.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: December 21, 2018.
P. Lee Smith,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is certain plastic 
decorative ribbon, having a width (measured at the narrowest span of 
the ribbon) of less than or equal to four (4) inches, but 
disregarding any features that measure 4 inches or less in width, 
such as tapering or cutting at the ends or in a bow knot, provided 
that aggregate length of such features comprises no more than 20% of 
the length of the ribbon. Subject merchandise includes but is not 
limited to ribbon wound onto itself; a spool, a core or a tube (with 
or without flanges); attached to a card or strip; wound into a keg- 
or egg-shaped configuration; made into bows, bow-like items, or 
other shapes or configurations; and whether or not packaged or 
labeled for retail sale. The subject merchandise is typically made 
of substrates of polypropylene, but may be made in whole or in part 
of any type of plastic, including without limitation, plastic 
derived from petroleum products and plastic derived from cellulose 
products. Unless the context otherwise clearly indicates, the word 
``ribbon'' used in the singular includes the plural and the plural 
``ribbons'' includes the singular.
    The subject merchandise includes ribbons comprised of one or 
more layers of substrates made, in whole or in part, of plastics 
adhered to each other, regardless of the method used to adhere the 
layers together, including without limitation, ribbons comprised of 
layers of substrates adhered to each other through a lamination 
process. Subject merchandise also includes ribbons comprised of (a) 
one or more layers of substrates made, in whole or in part, of 
plastics adhered to (b) one or more layers of substrates made, in 
whole or in part, of non-plastic materials, including, without 
limitation, substrates made, in whole or in part, of fabric.
    The ribbons subject to this investigation may be of any color or 
combination of colors (including without limitation, ribbons that 
are transparent, translucent or opaque) and may or may not bear 
words or images, including without limitation, those of a holiday 
motif. The subject merchandise includes ribbons with embellishments 
and/or treatments, including, without limitation, ribbons that are 
printed, hot-stamped, coated, laminated, flocked, crimped, die-cut, 
embossed (or that otherwise have impressed designs, images, words or 
patterns), and ribbons with holographic, metallic, glitter or 
iridescent finishes.
    Subject merchandise includes ``pull-bows'' an assemblage of 
ribbons connected to one another, folded flat, and equipped with a 
means to form such ribbons into the shape of a bow by pulling on a 
length of material affixed to such assemblage, and ``pre-notched'' 
bows, an assemblage of notched ribbon loops arranged one inside the 
other with the notches in alignment and affixed to each other where 
notched, and which the end user forms into a bow by separating and 
spreading the loops circularly around the notches, which form the 
center of the bow. Subject merchandise includes ribbons that are 
packaged with non-subject merchandise, including ensembles that 
include ribbons and other products, such as gift wrap, gift bags, 
gift tags and/or other gift packaging products. The ribbons are 
covered by the scope of this investigation; the ``other products'' 
(i.e., the other, non-subject merchandise included in the ensemble) 
are not covered by the scope of this investigation.
    Excluded from the scope of this investigation are the following: 
(1) Ribbons formed exclusively by weaving plastic threads together; 
(2) ribbons that have metal wire in, on, or along the entirety of 
each of the longitudinal edges of the ribbon; (3) ribbons with an 
adhesive coating covering the entire span between the longitudinal 
edges of the ribbon for the entire length of the ribbon; (4) ribbon 
formed into a bow without a tab or other means for attaching the bow 
to an object using adhesives, where the bow has: (a) An outer layer 
that is either flocked, made of fabric, or covered by any other 
decorative coating such as glitter (whether of plastic or non-
plastic materials), and (b) a flexible metal wire at the base which 
permits attachment to an object by twist-tying; (5) elastic ribbons, 
meaning ribbons that elongate when stretched and return to their 
original dimension when the stretching load is removed; (6) ribbons 
affixed as a decorative detail to non-subject merchandise, such as a 
gift bag, gift box, gift tin, greeting card or plush toy, or affixed 
(including by tying) as a decorative detail to packaging containing 
non-subject merchandise; (7) ribbons that are (a) affixed to non-
subject merchandise as a working component of such non-subject 
merchandise, such as where the ribbon comprises a book marker, bag 
cinch, or part of an identity card holder, or (b) affixed (including 
by tying) to non-subject merchandise as a working component that 
holds or packages such non-subject merchandise or attaches packaging 
or labeling to such non-subject merchandise, such as a ``belly 
band'' around a pair of pajamas, a pair of socks or a blanket; (8) 
imitation raffia made of plastics having a thickness not more than 
one (1) mil when measured in an unfolded/untwisted state; (9) cords, 
i.e., multiple strands of materials that have been braided, gimped 
or twisted together; and (10) ribbons in the form of bows having a 
diameter of less than seven-eighths (7/8) of an inch, or having a 
diameter of more than 16 inches, based on actual measurement. For 
purposes of this exclusion, the diameter of a bow is equal to the 
diameter of the smallest circular ring through which the bow will 
pass without compressing the bow.
    The scope of the investigation excludes shredded plastic film or 
shredded plastic strip, in each case where the shred does not exceed 
5 mm in width and does not exceed 18 inches in length.
    The scope of the investigation excludes plastic garlands and 
plastic tinsel garlands, imported in lengths of not less than three 
(3) feet. The longitudinal base of these garlands may be made of 
wire or non-wire material, and these garlands may include plastic 
die-cut pieces. Also excluded are items made of plastic garland and/
or plastic tinsel where the items do not have a tab or other means 
for attaching the item to an object using adhesives. This exclusion 
does not apply to plastic garland bows, plastic tinsel bows, or 
other bow-like products made of plastic garland or plastic tinsel.
    The scope of the investigation excludes ribbons made exclusively 
of fabric formed by weaving or knitting threads together, or by 
matting, condensing or pressing fibers together to create felt 
fabric, regardless of thread or fiber composition, including without 
limitation, fabric ribbons of polyester, nylon, acrylic or terylene 
threads or fibers. This exclusion does not apply to plastic ribbons 
that are flocked.
    The scope of the investigation excludes ribbons having a width 
of less than three (3) mm when incorporated by weaving into

[[Page 1067]]

mesh material (whether flat or tubular) or fabric ribbon (meaning 
ribbon formed by weaving all or any of the following: Man-made 
fibers, natural fibers, metal threads and/or metalized yarns), in 
each case only where the mesh material or fabric ribbon is imported 
in the form of a decorative bow or a decorative bow-like item.
    Further, excluded from the scope of the antidumping duty 
investigation are any products covered by the existing antidumping 
duty order on polyethylene terephthalate film, sheet, and strip (PET 
Film) from the People's Republic of China (China). See Polyethylene 
Terephthalate Film, Sheet, and Strip from Brazil, the People's 
Republic of China and the United Arab Emirates: Antidumping Duty 
Orders and Amended Final Determination of Sales at Less Than Fair 
Value for the United Arab Emirates, 73 FR 66595 (November 10, 2008).
    Merchandise covered by this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under subheadings 3920.20.0015 and 3926.40.0010. Merchandise 
covered by this investigation also may enter under subheadings 
3920.10.0000; 3920.20.0055; 3920.30.0000; 3920.43.5000; 
3920.49.0000; 3920.62.0050; 3920.62.0090; 3920.69.0000; 
3921.90.1100; 3921.90.1500; 3921.90.1910; 3921.90.1950; 
3921.90.4010; 3921.90.4090; 3926.90.9996; 5404.90.0000; 
9505.90.4000; 4601.99.9000; 4602.90.0000; 5609.00.3000; 
5609.00.4000; and 6307.90.9889. These HTSUS subheadings are provided 
for convenience and customs purposes; the written description of the 
scope of this investigation is dispositive.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Subsidies Valuation
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Discussion of the Issues
    Comment 1: Whether Plastic Garlands and Plastic Tinsel Garlands 
Should be Excluded From the Scope
    Comment 2: Whether Bows Made From Plastic Garland Should be 
Excluded From the Scope
    Comment 3: Whether Easter Grass, Tinsel, and Decorative 
Packaging Shred Should be Excluded From the Scope
    Comment 4: Whether Fabric Ribbon Should be Excluded From the 
Scope
    Comment 5: Whether Cords Should be Excluded From the Scope
    Comment 6: Clarification of the Exclusion for Ribbon Formed Into 
a Bow With Non-Plastic Decorative Coatings
    Comment 7: Clarification of the Exclusion for Ribbon Made of 
Both Plastic and Non-Plastic Strands
    Comment 8: Clarification Regarding the Measurement of the Width 
of Ribbon
    Comment 9: Whether Swirl Decorations Should be Excluded From the 
Scope
    Comment 10: Whether Bows Made From Plastic Sheet Should be 
Excluded From the Scope
    Comment 11: Whether Flocked and Unflocked Bows With Flexible 
Wire, Ribbon, String, or Other Type of Tie at the Base Should be 
Excluded From the Scope
    Comment 12: Whether Commerce Should Impose Partial AFA for Seng 
San's Failure to Disclose a Predecessor Company
    Comment 13: Whether Commerce Should Apply AFA to the Export 
Buyer's Credit Program
    Comment 14: Whether Commerce's Chosen AFA Rate for the Export 
Buyer's Credit Program is Appropriate
    Comment 15: Whether the Export Buyer's Credit Program Should be 
Considered an Export Subsidy
X. Conclusion

 [FR Doc. 2019-00754 Filed 1-31-19; 8:45 am]
 BILLING CODE 3510-DS-P