[Federal Register Volume 84, Number 203 (Monday, October 21, 2019)]
[Notices]
[Pages 56168-56171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22868]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-115]


Certain Glass Containers From the People's Republic of China: 
Initiation of Countervailing Duty Investigation

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

DATES: Applicable October 15, 2019.

FOR FURTHER INFORMATION CONTACT: Maliha Khan or Eli Lovely, 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) 482-0895 or (202) 482-1593, 
respectively.

SUPPLEMENTARY INFORMATION:

The Petition

    On September 25, 2019, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition (Petition) concerning 
imports of certain glass containers (glass containers) from the 
People's Republic of China (China) filed in proper form on behalf of 
the American Glass Packaging Coalition (the petitioner).\1\ The CVD 
Petition was accompanied by an antidumping duty (AD) Petition 
concerning imports of glass containers from China.
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    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Certain Glass Containers 
from the People's Republic of China,'' dated September 25, 2019 (the 
Petition).
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    On September 30, 2019, Commerce requested supplemental information 
pertaining to certain aspects of the Petition.\2\ The petitioner filed 
responses to this request on October 4, 2019.\3\
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    \2\ See Commerce's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Certain Glass 
Containers from the People's Republic of China: Supplemental 
Questions,'' dated September 30, 2019); see also Commerce's Letter, 
``Petition for the Imposition of Countervailing Duties on Imports of 
Certain Glass Containers from the People's Republic of China: 
Supplemental Questions,'' dated September 30, 2019.
    \3\ See Petitioner's Letters, ``Certain Glass Containers from 
the People's Republic of China: Responses to First Supplemental 
Questions on General Issues Volume I of the Petition,'' dated 
October 4, 2019; and ``Certain Glass Containers from the People's 
Republic of China: Responses to First Supplemental Questions on 
China CVD Volume III of the Petition,'' dated October 4, 2019.
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of China 
(GOC) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act, to producers of glass containers in 
China, and that such imports are materially injuring, or threatening 
material injury to, the domestic industry producing glass containers in 
the United States. Consistent with section 702(b)(1) of the Act and 19 
CFR 351.202(b), for those alleged programs on which we are initiating a 
CVD investigation, the Petition is accompanied by information 
reasonably available to the petitioner supporting its allegations.
    Commerce finds that the petitioner filed this Petition on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in sections 771(9)(C) and (E) of the Act. Commerce also finds 
that the petitioner demonstrated sufficient industry support with 
respect to the initiation of the requested CVD investigation.\4\
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    \4\ See ``Information Relating to the Degree of Industry Support 
for the Petition'' section, infra.
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Period of Investigation

    Because the Petition was filed on September 25, 2019, the period of 
investigation (POI) is January 1, 2018 through December 31, 2018.\5\
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    \5\ See 19 CFR 351.204(b)(1).
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Scope of the Investigation

    The merchandise covered by this investigation is glass containers 
from China. For a full description of the scope of this investigation, 
see the Appendix to this notice.

Comments on Scope of the Investigation

    During our review of the Petition, we contacted the petitioner 
regarding the proposed scope to ensure that the scope language in the 
Petition is an accurate reflection of the products for which the 
domestic industry is seeking relief.\6\ As a result, the scope of the 
Petition was modified to clarify the description of the merchandise 
covered by the Petition. The description of the merchandise covered by 
this investigation, as described in the Appendix to this notice, 
reflects these clarifications.
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    \6\ See AD Supplement Vol. I, at 1-4 and Exhibits I-Supp-2 
through I-Supp-4; see also Memorandum, ``Phone Call with Counsel to 
the Petitioner,'' dated October 8, 2019.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (scope).\7\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\8\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on November 4, 2019, which is 20 calendar days from the signature 
date of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on November 14, 2019, which 
is 10 calendar days from the initial comment deadline.\9\
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    \7\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \8\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \9\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information the parties consider 
relevant to the scope of the investigation be submitted during this 
time period. However, if a party subsequently finds that additional 
factual information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such comments must also be filed 
on the record of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\10\

[[Page 56169]]

An electronically filed document must be received successfully in its 
entirety by the time and date it is due. Documents exempted from the 
electronic submission requirements must be filed manually (i.e., in 
paper form) with Enforcement and Compliance's APO/Dockets Unit, Room 
18022, U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230, and stamped with the date and time of receipt by 
the applicable deadlines.
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    \10\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at https://access.trade.gov/help.aspx and a handbook 
can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the GOC of the receipt of the Petition and provided it the 
opportunity for consultations with respect to the CVD Petition.\11\ The 
GOC did not request consultations.
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    \11\ See Commerce's Letter, ``Countervailing Duty Petition on 
Certain Glass Containers from China,'' dated October 3, 2019.
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Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers, as a whole, of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\12\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\13\
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    \12\ See section 771(10) of the Act.
    \13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the Petition.\14\ Based on our analysis of the information submitted 
on the record, we have determined that glass containers, as defined in 
the scope, constitute a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\15\
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    \14\ See Volume I of the Petition, at 15-17 and Exhibit I-15; 
see also General Issues Supplement, at 7.
    \15\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Antidumping Duty Initiation Checklist: Certain Glass Containers from 
the People's Republic of China (AD Initiation Checklist), at 
Attachment II, Analysis of Industry Support for the Antidumping and 
Countervailing Duty Petitions Covering Certain Glass Containers from 
the People's Republic of China (Attachment II). This checklist is 
dated concurrently with this notice and on file electronically via 
ACCESS. Documents filed via ACCESS are also available in the Central 
Records Unit, Room B8024 of the main Commerce building.
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    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the Appendix to 
this notice. To establish industry support, the petitioner provided its 
own 2018 production of the domestic like product, as well as the 2018 
production of the company that supports the Petition.\16\ The 
petitioner compared the total production of the supporters of the 
Petition to the estimated total production of the domestic like product 
for the entire domestic industry.\17\ We relied on data provided by the 
petitioner for purposes of measuring industry support.\18\
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    \16\ See Volume I of the Petition, at 2-3 and Exhibits I-3 and 
I-4; see also General Issues Supplement, at 6 and Exhibit I-Supp-7.
    \17\ See Volume I of the Petition, at 2-3 and Exhibits I-2 
through I-4; see also General Issues Supplement, at 4-6 and Exhibits 
I-Supp-5 through I-Supp-7.
    \18\ See Volume I of the Petition, at 2-3 and Exhibits I-2 
through I-4; see also General Issues Supplement, at 4-6 and Exhibits 
I-Supp-5 through I-Supp-7. For further discussion, see China AD 
Initiation Checklist, at Attachment II.
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    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petition.\19\ First, the Petition established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\20\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
702(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition account for at least 25 percent of the total 
production of the domestic like product.\21\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 702(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition.\22\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 702(b)(1) of the Act.
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    \19\ See Countervailing Duty Initiation Checklist: Certain Glass 
Containers from the People's Republic of China Initiation Checklist 
(CVD Initiation Checklist) at Attachment II, Analysis of Industry 
Support for the Antidumping and Countervailing Duty Petitions 
Covering Certain Glass Containers from the People's Republic of 
China (Attachment II).
    \20\ Id.; see also section 702(c)(4)(D) of the Act.
    \21\ See CVD Initiation Checklist at Attachment II.
    \22\ Id.
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Injury Test

    Because China is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC

[[Page 56170]]

must determine whether imports of the subject merchandise from China 
materially injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that imports of the subject merchandise are 
benefitting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioner 
alleges that subject imports exceed the negligibility threshold 
provided for under section 771(24)(A) of the Act.\23\
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    \23\ See Volume I of the Petition at 17-19 and Exhibits I-13 and 
I-36.
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    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
lost sales and revenues; declining financial performance; a decline in 
the domestic industry's production, capacity utilization, and U.S. 
shipments; shuttered manufacturing facilities; and an adverse impact on 
employment variables.\24\ We have assessed the allegations and 
supporting evidence regarding material injury, threat of material 
injury, causation, as well as negligibility, and we have determined 
that these allegations are properly supported by adequate evidence, and 
meet the statutory requirements for initiation.\25\
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    \24\ Id. at 13, 17-34 and Exhibits I-13 and I-17 through I-33.
    \25\ See CVD Initiation Checklist at Attachment III, Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Antidumping and Countervailing Duty Petitions Covering Certain Glass 
Containers from the People's Republic of China.
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Initiation of CVD Investigation

    Based upon the examination of the Petition on glass containers from 
China, we find that the Petition meets the requirements of section 702 
of the Act. Therefore, we are initiating a CVD investigation to 
determine whether imports of glass containers from China benefit from 
countervailable subsidies conferred by the Government of China. Based 
on our review of the Petition, we find that there is sufficient 
information to initiate a CVD investigation on each of the alleged 
programs. For a full discussion of the basis for our decision to 
initiate on each program, see CVD Initiation Checklist. A public 
version of the initiation checklist for this investigation is available 
on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determination no later than 65 days after the date of this initiation.

Respondent Selection

    The petitioner named 75 companies in China as producers/exporters 
of glass containers.\26\ Commerce intends to follow its standard 
practice in CVD investigations and calculate company-specific subsidy 
rates in this investigation. In the event Commerce determines that the 
number of companies is large and it cannot individually examine each 
company based upon Commerce's resources, where appropriate, Commerce 
intends to select mandatory respondents based on U.S. Customs and 
Border Protection (CBP) data for U.S. imports of glass containers from 
China during the POI under the appropriate Harmonized Tariff Schedule 
of the United States numbers listed in the ``Scope of the 
Investigation,'' in the Appendix.
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    \26\ See Petition Volume I at Exhibit I-12.
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    On October 8, 2019, Commerce released CBP data on imports of glass 
containers from China under administrative protective order (APO) to 
all parties with access to information protected by APO and indicated 
that interested parties wishing to comment on the CBP data must do so 
within three business days of the publication date of the notice of 
initiation of this investigation.\27\ We further stated that we will 
not accept rebuttal comments.
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    \27\ See Memorandum, ``Certain Glass Containers from the 
People's Republic of China Countervailing Duty Petition: Release of 
Customs Data from U.S. Customs and Border Protection,'' dated 
October 8, 2019.
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    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on the Commerce website at http://enforcement.trade.gov/apo.
    Comments must be filed electronically using ACCESS. An 
electronically filed document must be received successfully, in its 
entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above. 
We intend to finalize our decisions regarding respondent selection 
within 20 days of publication of this notice.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the government of China via ACCESS.
    Furthermore, to the extent practicable, Commerce will attempt to 
provide a copy of the public version of the Petition to each exporter 
named in the Petition, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of its initiation, as required by 
section 702(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of glass containers from China are materially 
injuring or threatening material injury to a U.S. industry.\28\ A 
negative ITC determination will result in the investigation being 
terminated.\29\ Otherwise, this investigation will proceed according to 
statutory and regulatory time limits.
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    \28\ See section 733(a) of the Act.
    \29\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Any party, when submitting factual 
information, to specify under which subsection of 19 CFR 351.102(b)(21) 
the information is being submitted \30\ and, if the information is 
submitted to rebut, clarify, or correct factual information already on 
the record, to provide an explanation identifying the information 
already on the record that the factual information seeks to rebut, 
clarify, or correct.\31\ Time limits for the submission of factual 
information are addressed in 19 CFR 351.301, which provides specific 
time limits based on the type of factual information being submitted. 
Please review the regulations prior to submitting factual information 
in this investigation.
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    \30\ See 19 CFR 351.301(b).
    \31\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from

[[Page 56171]]

multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, Commerce may elect to specify a different 
time limit by which extension requests will be considered untimely, if 
the submissions are due from multiple parties simultaneously. In such a 
case, Commerce will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, standalone submission; under limited circumstances Commerce 
will grant untimely-filed requests for the extension of time limits. 
Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting extension requests 
or factual information in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\32\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\33\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \32\ See section 782(b) of the Act.
    \33\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Instructions for filing such 
applications may be found on the Commerce website at http://enforcement.trade.gov/apo.
    On January 22, 2008, Commerce published Antidumping and 
Countervailing Duty Proceedings: Documents Submission Procedures; APO 
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to 
participate in this investigation should ensure that they meet the 
requirements of these procedures (e.g., the filing of letters of 
appearance as discussed at 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act and 19 CFR 351.203(c).

    Dated: October 15, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Investigation

    The merchandise covered by this investigation are certain glass 
containers with a nominal capacity of 0.059 liters (2.0 fluid 
ounces) up to and including 4.0 liters (135.256 fluid ounces) and an 
opening or mouth with a nominal outer diameter of 14 millimeters up 
to and including 120 millimeters. The scope includes glass jars, 
bottles, flasks and similar containers; with or without their 
closures; whether clear or colored; and with or without, design or 
functional enhancements (including, but not limited to, handles, 
embossing, labeling, or etching).
    Excluded from the scope of the investigation are: (1) Glass 
containers made of borosilicate glass, meeting United States 
Pharmacopeia requirements for Type 1 pharmaceutical containers; (2) 
glass containers without `mold seams', `joint marks', or `parting 
lines'; and (3) glass containers without a `finish' (i.e., the 
section of a container at the opening including the lip and ring or 
collar, threaded or otherwise compatible with a type of closure to 
seal the container's contents, including but not limited to a lid, 
cap, or cork).
    Glass containers subject to this investigation are specified 
within the Harmonized Tariff Schedule of the United States (HTSUS) 
under subheadings 7010.90.5009, 7010.90.5019, 7010.90.5029, 
7010.90.5039, 7010.90.5049, 7010.90.5055, 7010.90.5005, 
7010.90.5015, 7010.90.5025, 7010.90.5035, and 7010.90.5045. The 
HTSUS subheadings are provided for convenience and customs purposes 
only. The written description of the scope of the investigations is 
dispositive.

[FR Doc. 2019-22868 Filed 10-18-19; 8:45 am]
 BILLING CODE 3510-DS-P