[Federal Register Volume 85, Number 238 (Thursday, December 10, 2020)]
[Notices]
[Pages 79468-79470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27134]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-131]


Twist Ties From the People's Republic of China: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that twist ties from the People's Republic of China (China) 
are being, or are likely to be, sold in the United States at less than 
fair value (LTFV). The period of investigation is October 1, 2019 
through March 31, 2020. Interested parties are invited to comment on 
this preliminary determination.

DATES: Applicable December 10, 2020.

FOR FURTHER INFORMATION CONTACT: Alex Wood or Brittany Bauer, AD/CVD 
Operations, Office II, Enforcement & Compliance, International Trade 
Administration, Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230; telephone: (202) 482-1959 or (202) 482-3860, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on July 27, 
2020.\1\ For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\2\ A list of topics included 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 https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and the electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Twist Ties from the People's Republic of China: 
Initiation of Less-Than-Fair-Value Investigations, 85 FR 45161 (July 
27, 2020) (Initiation Notice).
    \2\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Less-Than-Fair-Value Investigation of Twist 
Ties from People's Republic of China (Preliminary Decision 
Memorandum), dated concurrently with, and hereby adopted by, this 
notice; see also Appendix I.
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Scope of the Investigation

    The products covered by this investigation are twist ties from 
China. For a complete description of the scope of this investigation, 
see Appendix I to this notice.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (scope).\4\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this investigation, 
and accompanying discussion and analysis of all comments timely 
received, see the Preliminary Scope Determination Memorandum.\5\ 
Commerce is preliminarily modifying the scope language as it appeared 
in the Initiation Notice. See the revised scope in Appendix I to this 
notice.
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    \3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \4\ See Initiation Notice.
    \5\ See Memorandum, ``Antidumping and Countervailing Duty 
Investigations of Twist Ties from the People's Republic of China: 
Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated November 23, 2020 (Preliminary Scope 
Determination Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Pursuant to sections 776(a) and (b) of the Act, 
Commerce preliminarily has relied upon facts otherwise available, with 
adverse

[[Page 79469]]

inferences, with respect to the China-wide entity. The China-wide 
entity includes mandatory respondents Zhenjiang Hongda Commodity Co., 
Ltd. (Zhenjiang Hongda) and Zhenjiang Zhonglian I/E Co., Ltd. 
(Zhenjiang Zhonglian).\6\ These companies failed to respond to 
Commerce's requests for information and withdrew from participation in 
this investigation. For a full description of the methodology 
underlying Commerce's preliminary determination, see the Preliminary 
Decision Memorandum.
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    \6\ See Memorandum, ``Less-Than-Fair-Value Investigation of 
Twist Ties from the People's Republic of China: Respondent 
Selection,'' dated August 17, 2020 (Respondent Selection 
Memorandum); see also Zhenjiang Hongda and Zhenjiang Zhonglian's 
Letter, ``Twist Ties from the People's Republic of China: Withdrawal 
of Zhenjiang Hongda and Zhenjiang Zhonglian from the Antidumping 
Duty Investigation and Counsel's Certification of Compliance with 
the Terms of the APO,'' dated August 24, 2020.
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Combination Rates

    In the Initiation Notice,7 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.\8\ In this investigation, we assigned 
producer/exporter combination rates for respondents eligible for 
separate rates.
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    \7\ See Initiation Notice at 45164.
    \8\ 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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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

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                                                                                       Estimated
                                                                                       weighted-   Cash deposit
                                                                                        average   rate (adjusted
                   Producer                                   Exporter                  dumping     for subsidy
                                                                                        margin       offsets)
                                                                                       (percent)     (percent)
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Rongfa Plastic Products Co., Ltd. (also known  Rongfa Plastic Products Co., Ltd.           72.96           62.42
 as Zhenjiang Rongfa Plastic Co., Ltd).         (also known as Zhenjiang Rongfa
                                                Plastic Co., Ltd).
Tianjin Kyoei Packaging Supplies Co., Ltd....  Tianjin Kyoei Packaging Supplies Co.,       72.96           62.42
                                                Ltd.
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                                China-Wide Entity \9\                                      72.96           62.42
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Suspension of Liquidation
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    \9\ The China-Wide Entity includes Zhenjiang Hongda and 
Zhenjiang Zhonglian.
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    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of subject merchandise as described in the scope of the investigation 
section entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of this notice in the Federal Register, 
as discussed below. 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 
Chinese 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 China-wide entity; and (3) for all third-
country exporters of merchandise under consideration not listed in the 
table above, the cash deposit rate is the cash deposit rate applicable 
to the Chinese producer/exporter combination (or China-wide entity) 
that supplied that third-country exporter.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion CVD 
proceeding when CVD provisional measures are in effect. Accordingly, 
Commerce has made a preliminary affirmative determination for an export 
subsidy adjustment. However, Commerce has not made a preliminary 
affirmative determination for a domestic subsidy pass-through 
adjustment in this investigation. Commerce has offset the estimated 
weighted-average dumping margin by the appropriate rate. Any such 
adjusted rates may be found in the chart of estimated weighted-average 
dumping margins in the ``Preliminary Determination'' section above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margins calculated in this preliminary determination unadjusted for 
export subsidies at the time the CVD provisional measures expire.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a preliminary determination within five 
days of its public announcement or, if there is no public announcement, 
within five days of the date of publication of this notice in 
accordance with 19 CFR 351.224(b). However, because Commerce 
preliminarily determined that the mandatory respondents should be 
considered to be part of the China-wide entity and assigned the China-
wide entity an AFA rate based solely on the petition, there are no 
calculations to disclose.

Verification

    Because the mandatory respondents in this investigation did not 
provide information requested by Commerce and Commerce preliminarily 
determines in accordance with section 776(b) of the Act that each of 
the mandatory respondents to have been uncooperative, verification will 
not be conducted.

Public Comment

    Case briefs or other written comments may be submitted to 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS) no later than 30 days 
after the date of publication of the preliminary determination, unless 
the Secretary alters the time limit. Rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than seven days after 
the deadline date for case

[[Page 79470]]

briefs.\10\ 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.\11\
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    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \11\ See 19 CFR 351.309(c)(2) and (d)(2).
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    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 30 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 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.
    Parties must file their case and rebuttal briefs, and any requests 
for a hearing, electronically using Commerce's electronic records 
system, ACCESS.\12\ Electronically filed documents must be received 
successfully in their entirety by 5:00 p.m. Eastern Time,\13\ on the 
due dates established above. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\14\
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    \12\ See 19 CFR 351.303(b)(2)(i).
    \13\ See 19 CFR 351.303(b)(1).
    \14\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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Final Determination

    Section 735(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. Accordingly, Commerce will make 
its final determination no later than 75 days after the signature date 
of this preliminary determination.

International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination of sales at LTFV. 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 in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: December 3, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation consists of twist 
ties, which are thin, bendable ties for closing containers, such as 
bags, bundle items, or identifying objects. A twist tie in most 
circumstances is comprised of one or more metal wires encased in a 
covering material, which allows the tie to retain its shape and bind 
against itself. However, it is possible to make a twist tie with 
plastic and no metal wires. The metal wire that is generally used in 
a twist tie is stainless or galvanized steel and typically measures 
between the gauges of 19 (.0410'' diameter) and 31 (.0132'') 
(American Standard Wire Gauge). A twist tie usually has a width 
between .075'' and 1'' in the cross-machine direction (width of the 
tie--measurement perpendicular with the wire); a thickness between 
.015'' and .045'' over the wire; and a thickness between .002'' and 
.020'' in areas without wire. The scope includes an all-plastic 
twist tie containing a plastic core as well as a plastic covering 
(the wing) over the core, just like paper and/or plastic in a metal 
tie. An all-plastic twist tie (without metal wire) would be of the 
same measurements as a twist tie containing one or more metal wires. 
Twist ties are commonly available individually in pre-cut lengths 
(``singles''), wound in large spools to be cut later by machine or 
hand, or in perforated sheets of spooled or single twist ties that 
are later slit by machine or by hand (``gangs'').
    The covering material of a twist tie may be paper (metallic or 
plain), or plastic, and can be dyed in a variety of colors with or 
without printing. A twist tie may have the same covering material on 
both sides or one side of paper and one side of plastic. When 
comprised of two sides of paper, the paper material is bound 
together with an adhesive or plastic. A twist tie may also have a 
tag or label attached to it or a pre-applied adhesive attached to 
it.
    Excluded from the scope of the order are twist ties packaged 
with bags for sale together where the quantity of twist ties does 
not exceed twice the number of bags in each package. Also excluded 
are twists ties that constitute part of the packaging of the 
imported product, for example, merchandise anchored/secured to a 
backing with twist ties in the retail package or a bag of bread that 
is closed with a twist tie.
    Twist ties are imported into the United States under Harmonized 
Tariff Schedule of the United States (HTSUS) subheadings 
8309.90.0000 and 5609.00.3000. Subject merchandise may also enter 
under HTSUS subheadings 3920.51.5000, 3923.90.0080, 3926.90.9990, 
4811.59.6000, 4821.10.2000, 4821.10.4000, 4821.90.2000, 
4821.90.4000, and 4823.90.8600. These HTSUS subheadings are provided 
for reference 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. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Discussion of the Methodology
VII. Adjustment Under Section 777A(f) of the Act
VIII. Adjustments to Cash Deposit Rates for Export Subsidies
IX. Verification
X. ITC Notification
XI. Recommendation

[FR Doc. 2020-27134 Filed 12-9-20; 8:45 am]
BILLING CODE 3510-DS-P