[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.
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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