[Federal Register Volume 85, Number 121 (Tuesday, June 23, 2020)]
[Notices]
[Pages 37624-37626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13493]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-917]
Laminated Woven Sacks From the People's Republic of China:
Preliminary Results of Countervailing Duty Administrative Review and
Intent To Rescind, in Part; 2018
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that Shandong Shouguang Jianyuan Chun Co., Ltd. (Shouguang) received
countervailable subsidies during the period of review, January 1, 2018
through December 31, 2018. In addition, we intend to rescind this
review with respect to the 18 companies listed in Appendix II of this
notice. Interested parties are invited to comment on these preliminary
results.
DATES: Applicable June 23, 2020.
FOR FURTHER INFORMATION CONTACT: Chien-Min Yang, 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) 482-5484.
SUPPLEMENTARY INFORMATION:
Background
On August 2, 2019, Commerce published in the Federal Register a
notice of opportunity to request an administrative review of the Sacks
CVD Order \1\ for the period of review (POR) January 1, 2018 through
December 31, 2018.\2\ On August 30, 2019, Commerce received a timely
request for an administrative review of the Sacks CVD Order from the
Laminated Woven Sacks Fair Trade Coalition and its individual members,
Polytex Fibers Corporation and ProAmpac Holdings Inc. (collectively,
the petitioners).\3\ On October 7, 2019, in accordance with 19 CFR
351.221(c)(l)(i), Commerce published in the Federal Register a notice
of initiation of an administrative review of the Sacks CVD Order for
the POR with respect to 20 companies.\4\
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\1\ See Laminated Woven Sacks from the People's Republic of
China: Countervailing Duty Order, 73 FR 45955 (August 7, 2008)
(Sacks CVD Order).
\2\ See Antidumping or Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity to Request Administrative
Review, 84 FR 37834 (August 2, 2019).
\3\ See Petitioners' Letter, ``Laminated Woven Sacks from the
People's Republic of China: Request for Countervailing Duty
Administrative Review,'' dated August 30, 2019.
\4\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 84 FR 53411 (October 7, 2019) (Initiation
Notice). We initiated a review of 20 companies: (1) Cangnan Color
Make The Bag; (2) Changle Baodu Plastic Co., Ltd.; (3) First Way
(H.K.) Limited; (4) Han Shing Chemical Co., Ltd.; (5) Jiangsu Hotson
Plastics Co., Ltd.; (6) Ningbo Yong Feng Packaging Co., Ltd.; (7)
Polywell Industrial Co.; (8) Polywell Plastic Product Factory; (9)
Shandong Longxing Plastic Products Company Ltd.; (10) Shandong Qikai
Plastics Product Co., Ltd.; (11) Shandong Qilu Plastic Fabric Group,
Ltd.; (12) Shandong Shouguang Jianyuan Chun Co., Ltd.; (13) Shandong
Youlian Co., Ltd.; (14) Wenzhou Hotson Plastics Co., Ltd.; (15) Zibo
Aifudi Plastic Packaging Co., Ltd.; (16) Zibo Linzi Luitong Plastic
Fabric Co., Ltd.; (17) Zibo Linzi Qitianli Plastic Fabric Co., Ltd.;
(18) Zibo Linzi Shuaiqiang Plastics Co., Ltd.; (19) Zibo Linzi Worun
Packing Product Co., Ltd.; and (20) Zibo Qigao Plastic Cement Co.,
Ltd.
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We stated in the Initiation Notice that, in the event Commerce
limits the
[[Page 37625]]
number of respondents for individual examination, we intended to base
our selection of mandatory respondents on U.S. Customs and Border
Protection (CBP) import data.\5\ On February 24, 2020, we placed CBP
import data for entries of laminated woven sacks from the People's
Republic of China (China) that entered the United States during the
POR.\6\ No parties filed comments. On March 13, 2020, Commerce issued
the respondent selection memorandum,\7\ in which we found that the CBP
entry data indicated that, of the 20 companies subject to review,
Shouguang was the only company with entries of subject merchandise
during the POR.\8\ Therefore, we selected Shouguang as the sole
mandatory respondent in this administrative review. We issued a
questionnaire on March 16, 2020 seeking information regarding the
alleged subsidies.\9\ Neither the Government of China (GOC) nor
Shouguang responded to the questionnaire.
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\5\ Id., 84 FR at 53412.
\6\ See Memorandum, ``Countervailing Duty Administrative Review
of Laminated Woven Sacks from the People's Republic of China: U.S.
Customs Entries,'' dated February 24, 2020.
\7\ See Memorandum, ``2018 Administrative Review of the
Countervailing Duty Order on Laminated Woven Sacks from the People's
Republic of China: Respondent Selection,'' dated March 13, 2020
(Respondent Selection Memo).
\8\ Id. at 2. We note that Shouguang was found to be cross-owned
with Shandong Longxing Plastic Products Co., Ltd. in the underlying
investigation. See Memorandum, ``Cross-ownership and the Application
of Adverse Facts Available to Shandong Shouguang Jianyuanchun Co.,
Ltd. and Shandong Longxing Plastic Products Co., Ltd., (SSJ/SLP),''
dated April 22, 2008, unchanged in Laminated Woven Sacks from the
People's Republic of China: Final Affirmative Countervailing Duty
Determination and Final Affirmative Determination, in Part, of
Critical Circumstances, 73 FR 35639 (June 24, 2008). Thus, Shandong
Longxing Plastic Products Co., Ltd. is subject to the same rate as
Shouguang.
\9\ See Commerce's Letter, ``2018 Administrative Review of the
Countervailing Duty Order on Laminated Woven Sacks from China:
Initial Questionnaire,'' (March 16, 2020) (Initial Questionnaire).
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On April 24, 2020, Commerce tolled all deadlines in administrative
reviews by 50 days, thereby extending the deadline for these
preliminary results until June 23, 2020.\10\
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\10\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Administrative Reviews in Response to
Operational Adjustments Due to COVID-19,'' dated April 24, 2020.
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Scope of the Order
The merchandise covered by this countervailing duty order is
laminated woven sacks. For a complete description of the scope of the
Sacks CVD Order, see the Preliminary Decision Memorandum.\11\
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\11\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of and Rescission, in Part, of the Countervailing Duty
Administrative Review of Laminated Woven Sacks from the People's
Republic of China; 2018,'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
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Methodology
Commerce is conducting this administrative review in accordance
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the
Act). In reaching these preliminary results, Commerce relied on facts
otherwise available, with the application of adverse inferences.\12\
For further information, see ``Use of Facts Otherwise Available and
Application of Adverse Inferences'' in the accompanying Preliminary
Decision Memorandum. A list of topics discussed in the Preliminary
Decision Memorandum is provided at Appendix I to this notice.
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\12\ See section 776 of the Act.
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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. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/index.html.
The signed and electronic versions of the Preliminary Decision
Memorandum are identical in content.
Intent To Rescind Review, In Part
It is Commerce's practice to rescind an administrative review of a
countervailing duty order, pursuant to 19 CFR 351.213(d)(3), when there
are no reviewable entries of subject merchandise during the POR for
which liquidation is suspended.\13\ Normally, upon completion of an
administrative review, the suspended entries are liquidated at the
countervailing duty assessment rate calculated for the review
period.\14\ Therefore, for an administrative review of a company to be
conducted, there must be a reviewable, suspended entry that Commerce
can instruct CBP to liquidate at the calculated countervailing duty
assessment rate calculated for the review period.\15\
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\13\ See, e.g., Lightweight Thermal Paper from the People's
Republic of China: Notice of Rescission of Countervailing Duty
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); see also
Circular Welded Carbon Quality Steel Pipe from the People's Republic
of China: Rescission of Countervailing Duty Administrative Review;
2017, 84 FR 14650 (April 11, 2019).
\14\ See 19 CFR 351.212(b)(2).
\15\ See 19 CFR 351.213(d)(3).
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As noted in the ``Background'' section above, according to the CBP
import data, 19 of the 20 companies subject to this review did not have
reviewable entries of subject merchandise during the POR for which
liquidation is suspended. However, as noted above, Commerce has
previously found one of these 19 companies, Shandong Longxing Plastic
Products Co., Ltd., to be cross-owned with Shouguang. Thus, Shandong
Longxing Plastic Products Co., Ltd. remains subject to this review and
is subject to the same rate as Shouguang. Accordingly, in the absence
of reviewable, suspended entries of subject merchandise during the POR
by the other 18 companies at issue, we intend to rescind this
administrative review, in part, with respect to these 18 companies, in
accordance with 19 CFR 351.213(d)(3).\16\
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\16\ See Appendix II for a list of the eighteen companies for
whom we are rescinding this review because each that had no
reviewable, suspended entries during the POR.
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Preliminary Results of Review
Pursuant to section 776(a) of the Act, Commerce is preliminarily
relying upon facts otherwise available because both the GOC and
Shouguang have not participated in this review or responded to the
initial questionnaire. As a result, necessary information is not
available on the record. Additionally, by not responding to the initial
questionnaire, the GOC and Shouguang withheld information that had been
requested of them, failed to provide information within the deadlines
established, and significantly impeded this proceeding. Moreover,
pursuant to 776(b) of the Act, we preliminarily find that an adverse
inference is warranted because, by not responding to the initial
questionnaire, the GOC and Shouguang did not cooperate to the best of
their ability to comply with Commerce's requests for information in
this review. We preliminarily determine the net adverse facts available
countervailable subsidy rate for Shouguang to be 398.62 percent ad
valorem.
Disclosure, Public Comment, and Opportunity To Request a Hearing
Normally, Commerce discloses to interested parties the calculations
performed in connection with preliminary results within five days of
the date of publication of the preliminary results, in accordance with
19 CFR 351.224(b). However, because Commerce has preliminarily applied
a rate based on total facts otherwise
[[Page 37626]]
available with an adverse inference to the sole mandatory respondent in
this review, in accordance with section 776 of the Act, and because the
method for determining the subsidy rate is outlined in the Preliminary
Decision Memorandum, there are no calculations to disclose.
Case briefs or other written comments may be submitted no later
than 30 days after the date on which these preliminary results publish
in the Federal Register. Rebuttal briefs, limited to issues raised in
case briefs, may be submitted no later than seven days after the
deadline date for case briefs. Pursuant to 19 CFR 351.309(c)(2) and
(d)(2), parties who submit case briefs or rebuttal briefs in this
proceeding 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.\17\ All electronically filed documents must be received
successfully in their entirety via Commerce's electronic records
system, ACCESS, by the date and time it is due. Note that Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary information, until July 17, 2020,
unless extended.\18\
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\17\ See 19 CFR 351.309(c)(2).
\18\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18,
2020).
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Pursuant to 19 CFR 351.310, any interested party may request a
hearing within 30 days of publication of this notice. Hearing requests
should contain the following information: (1) The party's name,
address, and telephone number; (2) the number of participants; and (3)
a list of the issues to be discussed. Oral presentations will be
limited to issues raised in the case and rebuttal briefs. If a party
requests a hearing, Commerce will inform parties of the scheduled date
for the hearing at a time and location to be determined. Parties should
confirm by telephone the date, time, and location of the hearing.
Commerce intends to issue the final results of this review,
including the results of its analysis of the issues raised in any
written briefs, not later than 120 days after the date of publication
of this notice, pursuant to section 751(a)(3)(A) of the Act.
Assessment Rates and Cash Deposit Requirement
Upon issuance of the final results, Commerce shall determine, and
CBP shall assess, countervailing duties on all appropriate entries
covered by this review. If the preliminary results are unchanged for
the final results, Commerce will instruct CBP to apply an assessment
rate of 398.62 percent ad valorem to all entries of subject merchandise
during the POR which were produced and/or exported by Shouguang. If
this review is rescinded for the 18 companies listed in Appendix II,
Commerce will instruct CBP to assess countervailing duties on all
appropriate entries at a rate equal to the cash deposit of estimated
countervailing duties required at the time of entry, or withdrawal from
warehouse, for consumption, during the period January 1, 2018 through
December 31, 2018, in accordance with 19 CFR 351.212(c)(1)(i). Commerce
intends to issue appropriate assessment instructions directly to CBP 15
days after publication of this notice.
Pursuant to section 751(a)(2)(C) of the Act, Commerce also intends
to instruct CBP to collect cash deposits of estimated countervailing
duties in the amount of 398.62 percent ad valorem for Shouguang on
shipments of subject merchandise entered, or withdrawn from warehouse,
for consumption on or after the date of publication of the final
results of this review. For all non-reviewed firms, we will instruct
CBP to continue to collect cash deposits at the most-recent company-
specific or all-others rate applicable to the company, as appropriate.
These cash deposit requirements, when imposed, shall remain in effect
until further notice.
Notification to Interested Parties
Commerce is issuing and publishing these results in accordance with
sections 751(a)(l) and 777(i)(l) of the Act and 19 CFR 351.213 and
351.221(b)(4).
Dated: June 17, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Intent to Rescind Review, In Part
V. Use of Facts Otherwise Available and Application of Adverse
Inferences
VI. Disclosure and Public Comment
VII. Recommendation
Appendix II
List of Non-Selected Companies for Rescission
1. Cangnan Color Make The Bag
2. Changle Baodu Plastic Co., Ltd.
3. First Way (H.K.) Limited
4. Han Shing Chemical Co., Ltd.
5. Jiangsu Hotson Plastics Co., Ltd.
6. Ningbo Yong Feng Packaging Co., Ltd.
7. Polywell Industrial Co.
8. Polywell Plastic Product Factory
9. Shandong Qikai Plastics Product Co., Ltd.
10. Shandong Qilu Plastic Fabric Group, Ltd.
11. Shandong Youlian Co., Ltd.
12. Wenzhou Hotson Plastics Co., Ltd.
13. Zibo Aifudi Plastic Packaging Co., Ltd.
14. Zibo Linzi Luitong Plastic Fabric Co., Ltd.
15. Zibo Linzi Qitianli Plastic Fabric Co., Ltd.
16. Zibo Linzi Shuaiqiang Plastics Co., Ltd.
17. Zibo Linzi Worun Packing Product Co., Ltd.
18. Zibo Qigao Plastic Cement Co., Ltd.
[FR Doc. 2020-13493 Filed 6-22-20; 8:45 am]
BILLING CODE 3510-DS-P