[Federal Register Volume 85, Number 41 (Monday, March 2, 2020)]
[Notices]
[Pages 12256-12259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04223]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-115]
Certain Glass Containers From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of certain glass containers (glass containers) from the
People's Republic of China (China) for the period of investigation
(POI) January 1, 2018 through December 31, 2018. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable March 2, 2020.
FOR FURTHER INFORMATION CONTACT: Maliha Khan or Stephen Bailey, 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) 482-0193,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on October 21,
2019.\1\ On December 4, 2019, pursuant to a request from the American
Glass Packaging Coalition (the petitioner),\2\ Commerce published the
postponement of the preliminary determination of this investigation to
February 24, 2020.\3\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\4\ A list of topics discussed in the Preliminary
Decision Memorandum is included as Appendix II to this notice. The
Preliminary 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 Commerce building. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of
[[Page 12257]]
the Preliminary Decision Memorandum are identical in content.
---------------------------------------------------------------------------
\1\ See Certain Glass Containers From the People's Republic of
China: Initiation of Countervailing Duty Investigation, 84 FR 56168
(October 21, 2019) (Initiation Notice).
\2\ See Petitioner's Letter, ``Certain Glass Containers from the
People's Republic of China: Request to Postpone Preliminary
Determination,'' dated November 19, 2019.
\3\ See Certain Glass Containers From the People's Republic of
China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 84 FR 66377 (December 4, 2019).
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Certain
Glass Containers from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are glass containers
from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\6\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice.\7\ Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the antidumping
duty (AD) and countervailing duty (CVD) investigations in the
preliminary determination of the companion AD investigation.
---------------------------------------------------------------------------
\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice.
\7\ See Shandong Pharmaceutical Glass Co., Ltd.'s Letter,
``Certain Glass Containers from the People's Republic of China:
Shandong Pharmaceutical Glass Co., Ltd.--Comments on Scope,'' dated
November 12, 2019, IKEA Supply AG's Letter, ``Antidumping and
Countervailing Duty Investigations on Certain Glass Containers from
the People's Republic of China--Scope Comments,'' dated November 12,
2019, Target General Merchandise, Inc.'s Letter, ``Certain Glass
Containers from the People's Republic of China: Scope Comments,''
dated November 12, 2019, Zibo Glass Container Exporter Coalition's
Letter, ``Certain Glass Containers from the People's Republic of
China: Submission of Scope Comments,'' dated November 8, 2019, and
Midwest Custom Bottling LLC's Letter, ``Certain Glass Containers
from the People's Republic of China: Scope Comments,'' dated
November 12, 2019.
---------------------------------------------------------------------------
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\8\
---------------------------------------------------------------------------
\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------
Commerce notes that, in making these findings, it relied, in part,
on the facts available, including on adverse facts available. Further,
at the outset of this investigation, several companies failed to
respond to Commerce's quantity and value questionnaire (Q&V)
questionnaire.\9\ Therefore, because Commerce finds that certain
respondents did not act to the best of their ability to respond to
Commerce's requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\10\
For a full description of the methodology underlying our preliminary
determination, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in the Preliminary Decision Memorandum.
---------------------------------------------------------------------------
\9\ The companies that failed to properly respond to Commerce's
quantity and value questionnaire were: Asia Trade Connection, Built
in China, Cangzhou Roter Faden Glass Products, Choicest
International, East Asia Glass Limited, Guangzhou Idealpak Business,
Haimen Sanlong Glass Products, Hebei Anyu Glass Products Co. Ltd.,
Hebei Zhengi Glass Products Co. Ltd., Huazhong Glass Co. Ltd.
(Changxing), Iboya Glass, Jiangmen Zhong'an Import and Export,
Jining Baolin Glass Product Co. Ltd., Kisco Trading Shanghai,
Lianyungang Chinamex Trade, Linlang (Shanghai) Glass Products Co.
Ltd., New Westgate Glass Packaging, Ningbo Vifa International Trade
Co., Qingdao Auro Pack, Qingdao Jutai International Trade Co.,
Rockwood & Hines (Jiaxing) Co. Ltd., SGS Bottle, Shandong Hongda
Glassware Co. Ltd., Shandong Mounttai Sheng Li Yuan GLA, Shandong
Qingguo Foods, Shandong Wensheng Glass Technology Co. Ltd., ShangHai
Misa Glass Co. Ltd., Shanghai Vista Packaging, Suzhou Yunbo Glass,
Unipack Glass, Value Chain Glass Ltd. (VCG), Wheaton Glass, Wuhan
Vanjoin Packaging Co. Ltd., Xiamen Cheer Imp & Exp Co. Ltd., Xuzhou
Dahua Glass Products Co. Ltd., Xuzhou Fangbao Glassware, Xuzhou
Huajing Glass Products, Xuzhou Livlong Glass Products Co. Ltd.,
Xuzhou Pretty Glass Products, Xuzhou Wan Xuan Import and Export,
Xuzhou Yanjia Glassware, Yantai NBC Glass Packaging Co. Ltd.,
Yuncheng Jinpeng Glass Co. Ltd., Zheijiang Industrial Minerals
Foreign Trade Co Ltd., Zibo CY International Trade Co. Ltd., Zibo
Regal Glassware and Zibo Rongdian Glass Co. Ltd. (collectively, the
47 non-responsive companies). We refer to these companies,
collectively, as the ``non-responsive companies.''
\10\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
All-Others Rate
Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that
in the preliminary determination, Commerce shall determine an estimated
all-others rate for companies not individually examined. This rate
shall be an amount equal to the weighted average of the estimated
subsidy rates established for those companies individually examined,
excluding any zero and de minimis rates and any rates based entirely
under section 776 of the Act.
Commerce calculated individual estimated countervailable subsidy
rates for Guangdong Huaxing Glass Co. Ltd. (Guangdong Huaxing) and
Qixia Changyu Glass Co. Ltd. (Qixia Changyu) that are not zero, de
minimis, or based entirely on section 776 of the Act. Therefore,
Commerce calculated the all-others rate using a simple average of the
individual estimated subsidy rates calculated for Guangdong Huaxing and
Qixia Changyu using each company's values for the merchandise under
consideration because publicly ranged sales data was unavailable.\11\
---------------------------------------------------------------------------
\11\ With two respondents under examination, Commerce normally
calculates (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale quantities for the merchandise under consideration. Commerce
then compares (B) and (C) to (A) and selects the rate closest to (A)
as the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010). As complete publicly ranged sales data was
available, Commerce based the all-others rate on the publicly ranged
sales data of the mandatory respondents. For a complete analysis of
the data, please see the All-Others' Rate Calculation Memorandum.
---------------------------------------------------------------------------
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
---------------------------------------------------------------------------
\12\ Guangdong Huaxing reported the following cross-owned
companies which also preliminarily will receive Guangdong Huaxing's
subsidy rate: Foshan Huaxing Glass Co. Ltd., Fujian Huaxing Glass
Co. Ltd., Daye Huaxing Glass Co. Ltd., Hunan Huaxing Glass Co. Ltd.,
Guizhou Huaxing Glass Co. Ltd., Zhejiang Huaxing Glass Co. Ltd.,
Foshan City San Shui Hua Xing Glass Co. Ltd., Fujian Changcheng
Huaxing Glass Co. Ltd., Jiangsu Huaxing Glass Co. Ltd., Hebei
Huaxing Glass Co. Ltd., Henan Huaxing Glass Co Ltd., and Xinjiang
Huaxing Glass Co. Ltd.
------------------------------------------------------------------------
Company Subsidy rate
------------------------------------------------------------------------
Guangdong Huaxing Glass Co., Ltd \12\............. 23.25
Qixia Changyu Glass Co., Ltd...................... 22.60
Asia Trade Connection............................. 315.73
Built in China.................................... 315.73
Cangzhou Roter Faden Glass Products............... 315.73
Choicest International............................ 315.73
East Asia Glass Limited........................... 315.73
[[Page 12258]]
Guangzhou Idealpak Business....................... 315.73
Haimen Sanlong Glass Products..................... 315.73
Hebei Anyu Glass Products Co. Ltd................. 315.73
Hebei Zhengi Glass Products Co. Ltd............... 315.73
Huazhong Glass Co. Ltd. (Changxing)............... 315.73
Iboya Glass....................................... 315.73
Jiangmen Zhong'an Import and Export............... 315.73
Jining Baolin Glass Product Co. Ltd............... 315.73
Kisco Trading Shanghai............................ 315.73
Lianyungang Chinamex Trade........................ 315.73
Linlang (Shanghai) Glass Products Co. Ltd......... 315.73
New Westgate Glass Packaging...................... 315.73
Ningbo Vifa International Trade Co................ 315.73
Qingdao Auro Pack................................. 315.73
Qingdao Jutai International Trade Co.............. 315.73
Rockwood & Hines (Jiaxing) Co. Ltd................ 315.73
SGS Bottle........................................ 315.73
Shandong Hongda Glassware Co. Ltd................. 315.73
Shandong Mounttai Sheng Li Yuan GLA............... 315.73
Shandong Qingguo Foods............................ 315.73
Shandong Wensheng Glass Technology Co. Ltd........ 315.73
ShangHai Misa Glass Co. Ltd....................... 315.73
Shanghai Vista Packaging.......................... 315.73
Suzhou Yunbo Glass................................ 315.73
Unipack Glass..................................... 315.73
Value Chain Glass Ltd. (VCG)...................... 315.73
Wheaton Glass..................................... 315.73
Wuhan Vanjoin Packaging Co. Ltd................... 315.73
Xiamen Cheer Imp & Exp Co. Ltd.................... 315.73
Xuzhou Dahua Glass Products Co. Ltd............... 315.73
Xuzhou Fangbao Glassware.......................... 315.73
Xuzhou Huajing Glass Products..................... 315.73
Xuzhou Livlong Glass Products Co. Ltd............. 315.73
Xuzhou Pretty Glass Products...................... 315.73
Xuzhou Wan Xuan Import and Export................. 315.73
Xuzhou Yanjia Glassware........................... 315.73
Yantai NBC Glass Packaging Co. Ltd................ 315.73
Yuncheng Jinpeng Glass Co. Ltd.................... 315.73
Zheijiang Industrial Minerals Foreign Trade Co Ltd 315.73
Zibo CY International Trade Co. Ltd............... 315.73
Zibo Regal Glassware.............................. 315.73
Zibo Rongdian Glass Co. Ltd....................... 315.73
All Others........................................ 22.93
------------------------------------------------------------------------
Suspension of Liquidation
In accordance with sections 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation entered, or withdrawn from warehouse,
for consumption on or after the date of publication of this notice in
the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce
will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than 14
days after the date of publication of this notice in the Federal
Register. Rebuttal briefs, limited to issues raised in case briefs, may
be submitted no later than five days after the deadline date for case
briefs.\13\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this investigation are
encouraged to submit with each argument: (1) A statement of the issue;
(2) a brief summary of the argument; and (3) a table of authorities.
---------------------------------------------------------------------------
\13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
---------------------------------------------------------------------------
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 21 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Final Determination
Section 705(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that
Commerce will issue the final determination within 75 days after the
date of its preliminary determination.
[[Page 12259]]
Accordingly, Commerce will make its final determination no later than
75 days after the signature date of this preliminary determination,
unless postponed.
International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. If the
final determination is affirmative, the ITC will determine before the
later of 120 days after the date of this preliminary determination or
45 days after the final determination, whether imports of the subject
merchandise are materially injuring, or threaten material injury to,
the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: February 24, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is 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 7010.90.5005, 7010.90.5009, 7010.90.5015,
7010.90.5019, 7010.90.5025, 7010.90.5029, 7010.90.5035,
7010.90.5039, 7010.90.5045, 7010.90.5049, and 7010.90.5055. The
HTSUS subheadings are provided for convenience and customs purposes
only. The written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Calculation of the All-Others Rate
XII. ITC Notification
XIII. Disclosure and Public Comment
XIV. Recommendation
[FR Doc. 2020-04223 Filed 2-28-20; 8:45 am]
BILLING CODE 3510-DS-P