[Federal Register Volume 84, Number 70 (Thursday, April 11, 2019)]
[Notices]
[Pages 14651-14653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07198]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-823]
Laminated Woven Sacks From the Socialist Republic of Vietnam:
Final Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports
of laminated woven sacks (LWS) from the Socialist Republic of Vietnam
(Vietnam) are being, or are likely to be, sold in the United States at
less than fair value (LTFV). The period of investigation is July 1,
2017, through December 31, 2017.
DATES: Applicable April 11, 2019.
FOR FURTHER INFORMATION CONTACT: Drew Jackson or Celeste Chen, AD/CVD
Operations, Office IV, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4406 or (202) 482-0890,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 11, 2018, Commerce published in the Federal Register the
Preliminary Determination and invited interested parties to comment.\1\
On October 23, 2018, Commerce postponed the final determination of this
investigation until February 25, 2019.\2\ Commerce exercised its
discretion to toll all deadlines affected by the partial federal
government closure from December 22, 2018, through the resumption of
operations on January 29, 2019.\3\ If the new deadline falls on a non-
business day, in accordance with Commerce's practice, the deadline will
become the next business day. Accordingly, the revised deadline for the
final determination is now April 4, 2019. A summary of the events that
occurred since Commerce published the Preliminary Determination may be
found in the Issues and Decision Memorandum that is dated concurrently
with this determination and hereby adopted by this notice.\4\
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\1\ See Laminated Woven Sacks from the Socialist Republic of
Vietnam: Preliminary Determination of Sales at Less Than Fair Value,
83 FR 51436 (October 11, 2018) (Preliminary Determination) and
accompanying Preliminary Decision Memorandum (PDM).
\2\ See Laminated Woven Sacks from the Socialist Republic of
Vietnam: Postponement of Final Determination of Sales at Less Than
Fair Value Investigation, 83 FR 53452 (October 23, 2018).
\3\ See memorandum to the Record from Gary Taverman, Deputy
Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance, ``Deadlines
Affected by the Partial Shutdown of the Federal Government,'' dated
January 28, 2019. All deadlines in this segment of the proceeding
have been extended by 40 days.
\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Laminated Woven Sacks from
the Socialist Republic of Vietnam,'' (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 July 1, 2017, through December 31,
2017.
Scope of the Investigation
The products covered by this investigation are laminated woven
sacks from Vietnam. For a full description of the scope of this
investigation, see the ``Scope of the Investigation,'' at Appendix I.
Scope Comments
During the course of this investigation and the concurrent
countervailing duty (CVD) investigation of LWS from Vietnam, Commerce
received scope comments from interested parties. Commerce issued a
Preliminary Scope Decision Memorandum to address these comments.\5\ In
response to Commerce's invitation to comment on its preliminary scope
determination, Commerce received scope comments from Halsted
Corporation (Halsted),\6\ and rebuttal comments from the
petitioners.\7\ However, Commerce rejected Halsted's scope comments
because they contained untimely filed new factual information.\8\
Because Halsted's scope comments have been removed from the record of
these investigations and Halsted did not file a redacted version of its
scope comments within the deadline allotted by Commerce, Halsted's
comments have not been considered in these investigations.\9\
Furthermore, because
[[Page 14652]]
the petitioners' rebuttal comments respond to Halsted's comments, which
have been removed from the record of these investigations, Commerce has
not considered the petitioners' comments. Therefore, Commerce has made
no changes to the scope of these investigations since the Preliminary
Determination.
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\5\ See Memorandum, ``Antidumping and Countervailing Duty
Investigations of Laminated Woven Sacks from the Socialist Republic
of Vietnam: Preliminary Scope Determination,'' dated October 3, 2018
(Preliminary Scope Decision Memorandum).
\6\ See Letter, ``Antidumping and Countervailing Duty
Investigations of Laminated Woven Sacks from the Socialist Republic
of Vietnam: Rejection of Untimely Filed Factual Information,'' dated
December 12, 2018 (rejecting Halsted Corporation's November 13, 2018
scope brief).
\7\ See Petitioners' Letter, ``Investigation of Laminated Woven
Sacks from the Socialist Republic of Vietnam: Petitioners' Rebuttal
Scope Brief,'' dated November 19, 2018.
\8\ See Letter, ``Antidumping and Countervailing Duty
Investigations of Laminated Woven Sacks from the Socialist Republic
of Vietnam: Rejection of Untimely Filed Factual Information,'' dated
December 12, 2018. See also Letter, ``Antidumping and Countervailing
Duty Investigations of Laminated Woven Sacks from the Socialist
Republic of Vietnam: Request for Withdrawal of Scope Comments,''
dated February 8, 2019.
\9\ Id.
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Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), Commerce verified the sales and factors of production data
reported by Duong Vinh Hoa Packaging Company Limited (DVH Packaging)
for use in our final determination. We used standard verification
procedures, including an examination of relevant accounting and
production records, and original source documents provided by the
respondent.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs that were
submitted by parties in this investigation are addressed in the Issues
and Decision Memorandum accompanying this notice. A list of the issues
addressed in the Issues and Decision Memorandum is attached to this
notice at Appendix II.
For the final determination Commerce continues to rely upon facts
otherwise available, with adverse inferences (AFA), for the Vietnam-
wide entity, which includes Xinsheng Plastic Industry Co., Ltd.
(Xinsheng Plastic) a mandatory respondent, pursuant to sections 776(a)
and (b) of the Act.
Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings at
verification, we made certain changes to the margin calculations for
DVH Packaging since the Preliminary Determination. For a discussion of
these changes, see the Issues and Decision Memorandum.
Separate Rates
For the final determination, we continue to find that four
exporters are entitled to a separate rate, as noted below. In the
Preliminary Determination, we assigned, as the separate rate, the
margin calculated for DVH Packaging, the sole mandatory respondent for
which we preliminarily calculated an estimated weighted-average dumping
margin, consistent with our practice.\10\ For the final determination,
we continue to assign the estimated weighted-average dumping margin
calculated for DVH Packaging to the exporters that are entitled to a
separate rate.
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\10\ See Preliminary Determination, 83 FR 51436 and accompanying
PDM at 11-18.
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Vietnam-Wide Entity
For the final determination, we continue to find that the Vietnam-
wide entity, which includes certain Vietnamese exporters and/or
producers that did not respond to Commerce's requests for information,
failed to provide necessary information, failed to provide information
in a timely manner, and significantly impeded this proceeding by not
submitting the requested information. We also continue to find that the
Vietnam-wide entity failed to cooperate. As a result, we continue to
determine for the Vietnam-wide entity an estimated weighted-average
dumping margin on the basis of AFA pursuant to section 776(b) of the
Act. In the Preliminary Determination, Commerce based the AFA rate for
the Vietnam-wide entity on the petition margin of 292.61 percent.\11\
For this final determination, we continue to rely on AFA in determining
the rate for the Vietnam-wide entity and, as AFA, we continue to select
the petition margin of 292.61 percent as the estimated weighted-average
dumping margin for the Vietnam-wide entity (including Xinsheng
Plastic), as corroborated in the Preliminary Determination.
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\11\ Id. at 51437 and accompanying PDM at 17-18.
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Combination Rates
In the Initiation Notice,\12\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\13\
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\12\ See Laminated Woven Sacks from the Socialist Republic of
Vietnam: Initiation of Less-Than-Fair-Value Investigation, 83 FR
14257 (April 3, 2018) (Initiation Notice).
\13\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Final Determination
The final estimated weighted-average dumping margins are as
follows:
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\14\ The Vietnam-wide entity includes Xinsheng Plastic Industry
Co., Ltd.
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Estimated Cash deposit
weighted- rate
average (adjusted for
Exporter Producer dumping subsidy
margin offsets)
(percent) (percent)
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Duong Vinh Hoa Packaging Company Limited...... Duong Vinh Hoa Packaging Company 109.46 108.33
Limited.
C.P. Packaging (Vietnam) Industry Co., Ltd.... C.P. Packaging (Vietnam) 109.46 108.33
Industry Co., Ltd.
Tan Dai Hung d.b.a. Tan Dai Hung Joint Stock Tan Dai Hung d.b.a. Tan Dai Hung 109.46 108.33
Co. and Tan Dai Hung Plastic Joint Stock Joint Stock Co. and Tan Dai
Company. Hung Plastic Joint Stock
Company.
TKMB Joint Stock Company...................... TKMB Joint Stock Company........ 109.46 108.33
Trung Dong Corporation........................ Trung Dong Corporation.......... 109.46 108.33
Vietnam-wide entity \14\...................... ................................ 292.61 291.48
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Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, for this final
determination, we will direct U.S. Customs and Border Protection (CBP)
to continue to suspend liquidation of all entries of LWS from Vietnam,
as described in Appendix I of this notice, which are entered, or
withdrawn from warehouse, for consumption on or after October 11, 2018,
the date of publication in the Federal Register of the affirmative
Preliminary Determination. Further, pursuant to section 733(d)(1)(B) of
the Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a
cash deposit equal to the weighted average amount by which normal value
exceeds U.S. price, as indicated in the chart above as follows: (1) For
the producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
[[Page 14653]]
Vietnamese producers/exporters of merchandise under consideration that
have not established eligibility for their own separate rates, the cash
deposit rate will be equal to the estimated weighted-average dumping
margin established for the Vietnam-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the
table above, the cash deposit rate is the cash deposit rate applicable
to the Vietnamese producer/exporter combination (or the Vietnam-wide
entity) that supplied that third-country exporter. Commerce normally
adjusts the estimated weighted-average dumping margin by the amount of
export subsidies countervailed in a companion countervailing duty (CVD)
proceeding when the CVD measures are in effect. Accordingly, where
Commerce made an affirmative determination for countervailable
subsidies that are export contingent,\15\ Commerce has offset the
estimated weighted-average dumping margin by the appropriate CVD
rate(s). Any such adjusted cash deposit rates may be found in the
``Final Determination Margin'' section, above. These suspension of
liquidation instructions will remain in effect until further notice.
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\15\ In the CVD final determination, we found the ``Import duty
exemptions on imports of raw materials for exporting goods'' program
to be an export subsidy. See Laminated Woven Sacks from the
Socialist Republic of Vietnam: Final Affirmative Countervailing Duty
Determination, and accompanying Issues and Decision Memorandum,
dated concurrently with this AD final determination. The rate
applied to that program was 1.13 percent.
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Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this final determination within five days
of any public announcement or, if there is no public announcement,
within five days of the date of publication of the notice of final
determination in the Federal Register, in accordance with 19 CFR
351.224(b).
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because Commerce's final determination
is affirmative, in accordance with section 735(b)(2) 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 or sales (or the likelihood of
sales) for importation of LWS, no later than 45 days after this final
determination. If the ITC determines that such injury does not exist,
this proceeding will be terminated and all cash deposits posted will be
refunded. If the ITC determines that such injury does exist, Commerce
will issue an antidumping duty order directing CBP to assess, upon
further instruction by Commerce, antidumping 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. 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: April 4, 2019.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is laminated woven
sacks. Laminated woven sacks are bags consisting of one or more
plies of fabric consisting of woven polypropylene strip and/or woven
polyethylene strip, regardless of the width of the strip; with or
without an extrusion coating of polypropylene and/or polyethylene on
one or both sides of the fabric; laminated by any method either to
an exterior ply of plastic film such as biaxially-oriented
polypropylene (BOPP), polyester (PET), polyethylene (PE), nylon, or
any film suitable for printing, or to an exterior ply of paper;
printed; displaying, containing, or comprising three or more visible
colors (e.g., laminated woven sacks printed with three different
shades of blue would be covered by the scope), not including the
color of the woven fabric; regardless of the type of printing
process used; with or without lining; with or without handles; with
or without special closing features (including, but not limited to,
closures that are sewn, glued, easy-open (e.g., tape or thread), re-
closable (e.g., slider, hook and loop, zipper), hot-welded,
adhesive-welded, or press- to-close); whether finished or unfinished
(e.g., whether or not closed on one end and whether or not in roll
form, including, but not limited to, sheets, lay-flat, or formed in
tubes); not exceeding one kilogram in actual weight. Laminated woven
sacks produced in the Socialist Republic of Vietnam are subject to
the scope regardless of the country of origin of the fabric used to
make the sack.
The scope of this investigation excludes laminated woven sacks
having each of the following physical characteristics: (1) No side
greater than 24 inches, (2) weight less than 100 grams, (3) an open
top that is neither sealable nor closable, the rim of which is
hemmed or sewn around the entire circumference, (4) carry handles
sewn on the open end, (5) side gussets, and (6) either a bottom
gusset or a square or rectangular bottom. The excluded items with
the above-mentioned physical characteristics may be referred to as
reusable shopping bags.
Subject laminated woven sacks are currently classifiable under
Harmonized Tariff Schedule of the United States (HTSUS) subheadings
6305.33.0040 and 6305.33.0080. If entered with plastic coating on
both sides of the fabric consisting of woven polypropylene strip
and/or woven polyethylene strip, laminated woven sacks may be
classifiable under HTSUS subheadings 3923.21.0080, 3923.21.0095, and
3923.29.0000. If entered not closed on one end or in roll form
(including, but not limited to, sheets, lay-flat tubing, and
sleeves), laminated woven sacks may be classifiable under other
HTSUS subheadings, including 3917.39.0050, 3921.90.1100,
3921.90.1500, and 5903.90.2500. If the polypropylene strips and/or
polyethylene strips making up the fabric measure more than 5
millimeters in width, laminated woven sacks may be classifiable
under other HTSUS subheadings including 4601.99.0500,4601.99.9000,
and 4602.90.0000. Although HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
scope is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Changes from the Preliminary Determination
IV. Discussion of the Issues
Comment 1: Surrogate Value for Colored Ink
Comment 2: Financial Statements Used to Value Overhead; Selling,
General and Administrative Expenses; and Profit
V. Recommendation
[FR Doc. 2019-07198 Filed 4-10-19; 8:45 am]
BILLING CODE 3510-DS-P