[Federal Register Volume 88, Number 122 (Tuesday, June 27, 2023)]
[Notices]
[Pages 41589-41595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13576]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-555-002, A-570-152, A-301-805, A-533-917, A-557-825, A-471-808, A-
583-872, A-489-849, A-552-836]


Certain Paper Shopping Bags From Cambodia, the People's Republic 
of China, Colombia, India, Malaysia, Portugal, Taiwan, the Republic of 
Turkey, and the Socialist Republic of Vietnam: Initiation of Less-Than-
Fair-Value Investigations

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

DATES: Applicable June 20, 2023.

FOR FURTHER INFORMATION CONTACT: Charles Doss (Cambodia) at (202) 482-
4474; Yang Jin Chun (the People's Republic of China (China)) at (202) 
482-5760; Laurel LaCivita (Colombia) at (202) 482-4243; David Crespo 
(India) at (202) 482-3693; Dan Alexander (Malaysia) at (202) 482-4313; 
Whitley Herndon (Portugal) at (202) 482-6274; Brittany Bauer (Taiwan) 
at (202) 482-3860; Magd Zalok (the Republic of Turkey (Turkey)) at 
(202) 482-4162; and Myrna Lobo (the Socialist Republic of Vietnam 
(Vietnam)) at (202) 482-2371, AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petitions

    On May 31, 2023, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) petitions concerning imports of certain 
paper shopping bags (paper bags) from Cambodia, China, Colombia, India, 
Malaysia, Portugal, Taiwan, Turkey, and Vietnam filed in proper form on 
behalf of the Coalition for Fair Trade in Shopping Bags (the 
petitioner).\1\ These AD petitions were accompanied by countervailing 
duty (CVD) petitions concerning imports of paper bags from China and 
India.\2\
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    \1\ See Petitioner's Letter, ``Petitions for The Imposition of 
Antidumping and Countervailing Duties on Certain Paper Shopping Bags 
from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, 
Turkey, and Vietnam,'' dated May 31, 2023 (the Petitions) at 2-3. 
The members of the Coalition for Fair Trade in Shopping Bags include 
Novolex Holdings, LLC (Novolex) and the United Steel, Paper and 
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and 
Service Workers International Union (USW) (collectively, the 
petitioner).
    \2\ See Petitioner's Letter, ``Petitions for The Imposition of 
Antidumping and Countervailing Duties on Certain Paper Shopping Bags 
from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, 
Turkey, and Vietnam,'' dated May 31, 2023.
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    On June 2, 5, and 13, 2023, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions in a 
separate supplemental questionnaires.\3\ The petitioner filed responses 
to the supplemental questionnaires on June 8, 9, 12, and 15, 2023.\4\
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    \3\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Certain Paper 
Shopping Bags from Cambodia, the People's Republic of China, 
Colombia, India, Malaysia, Portugal, Taiwan, the Republic of Turkey, 
and the Socialist Republic of Vietnam,'' dated June 2, 2023 (General 
Issues Questionnaire); and Country-Specific Supplemental 
Questionnaires: Cambodia Supplemental, China Supplemental, Colombia 
Supplemental, India Supplemental, Malaysia Supplemental, Portugal 
Supplemental, Taiwan Supplemental, Turkey Supplemental, and Vietnam 
Supplemental, dated June 5, 2023; see also Memorandum, ``Phone Call 
with Counsel to the Petitioner,'' dated June 13, 2023.
    \4\ See Petitioner's Letters, ``Certain Paper Shopping Bags from 
Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, 
Turkey, and Vietnam: Response of Petitioner to Volume I Supplemental 
Questionnaire,'' dated June 8, 2023 (First General Issues 
Supplement); Country-Specific Supplemental Responses, dated June 9 
and 12, 2023; ``Certain Paper Shopping Bags from Cambodia, China, 
Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam: 
Response of Petitioner to Commerce's Second Supplemental Questions 
Concerning Volumes I, VI, IX, and X,'' dated June 15, 2023 (Second 
General Issues Supplement); and Second Vietnam Supplement, dated 
June 15, 2023.
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of paper bags 
from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, 
Turkey, and Vietnam are being, or are likely to be, sold in the United 
States at less than fair value (LTFV) within the meaning of section 731 
of the Act, and that imports of such products are materially injuring, 
or threatening material injury to, the paper bag industry in the United 
States. Consistent with section 732(b)(1) of the Act, the Petitions are 
accompanied by information reasonably available to the petitioner 
supporting its allegations.
    Commerce finds that the petitioner filed the Petitions on behalf of 
the domestic industry, because the petitioner is an interested party, 
as defined in section 771(9)(F) of the Act.\5\ Commerce also finds that 
the petitioner demonstrated sufficient industry support for the 
initiation of the requested AD investigations.\6\
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    \5\ See Petitions at Volume I (pages 2-3). The members of the 
Coalition for Fair Trade in Shopping Bags (Novolex and the USW) are 
interested parties, as defined in sections 771(9)(C) and (D) of the 
Act, respectively.
    \6\ See, infra, section on ``Determination of Industry Support 
for the Petitions.''

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[[Page 41590]]

Periods of Investigation

    Because the Petitions were filed on May 31, 2023, pursuant to 19 
CFR 351.204(b)(1), the period of investigation (POI) for the Cambodia, 
Colombia, India, Malaysia, Portugal, Taiwan and Turkey AD 
investigations is April 1, 2022, through March 31, 2023. Because China 
and Vietnam are non-market economy (NME) countries, pursuant to 19 CFR 
351.204(b)(1), the POI for the China and Vietnam AD investigations is 
October 1, 2022, through March 31, 2023.

Scope of the Investigations

    The product covered by these investigations is paper bags from 
Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, 
and Vietnam. For a full description of the scope of these 
investigations, see the appendix to this notice.

Comments on the Scope of the Investigations

    On June 2 and 13, 2023, Commerce requested information from the 
petitioner regarding the proposed scope to ensure that the scope 
language in the Petitions is an accurate reflection of the products for 
which the domestic industry is seeking relief.\7\ On June 8 and 15, 
2023, the petitioner provided clarifications and revised the scope.\8\ 
The description of merchandise covered by these investigations, as 
described in the appendix to this notice, reflects these 
clarifications.
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    \7\ See General Issues Questionnaire; see also June 13, 2023, 
Memorandum.
    \8\ See General Issues Supplement at 2-7 and Exhibit I-S5; see 
also Second General Issues Supplement at 1 and Exhibit I-2S1.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for parties to raise issues regarding product 
coverage (i.e., scope).\9\ Commerce will consider all scope comments 
received and, if necessary, will consult with interested parties prior 
to the issuance of the preliminary determinations. If scope comments 
include factual information,\10\ all such factual information should be 
limited to public information. To facilitate preparation of its 
questionnaires, Commerce requests that scope comments be submitted by 
5:00 p.m. Eastern Time (ET) on July 10, 2023, 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 July 
20, 2023, which is ten calendar days from the initial comment deadline.
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    \9\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR 
351.312.
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
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    Commerce requests that any factual information that parties 
consider relevant to the scope of these investigations be submitted 
during that period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigations may be relevant, the party must contact Commerce and 
request permission to submit the additional information. All such 
submissions must be filed on the records of each 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), unless an exception 
applies.\11\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
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    \11\ 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 help 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_on_Electronic_Filing_Procedures.pdf.
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Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of paper bags to be 
reported in response to Commerce's AD questionnaires. This information 
will be used to identify the key physical characteristics of the 
subject merchandise in order to report the relevant factors of 
production (FOP) or costs of production (COP) accurately, as well as to 
develop appropriate product comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) general product 
characteristics; and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe paper bags, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, Commerce attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on July 10, 
2023, which is 20 calendar days from the signature date of this 
notice.\12\ Any rebuttal comments must be filed by 5:00 p.m. ET on July 
20, 2023, which is ten calendar days from the initial comment deadline. 
All comments and submissions to Commerce must be filed electronically 
using ACCESS, as explained above, on the record of each of the AD 
investigations.
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    \12\ See 19 CFR 351.303(b)(1).
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Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(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 732(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

[[Page 41591]]

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,\13\ 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.\14\
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    \13\ See section 771(10) of the Act.
    \14\ 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 investigations.\15\ Based on our analysis of the information 
submitted on the record, we have determined that paper bags, as defined 
in the scope, constitute a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\16\
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    \15\ See Petitions at Volume I (pages 10-15 and Exhibits I-10 
through I-12); see also First General Issues Supplement at 10.
    \16\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Antidumping Duty Investigation Initiation Checklists: Certain 
Paper Shopping Bags from Cambodia, the People's Republic of China, 
Colombia, India, Malaysia, Portugal, Taiwan, the Republic of Turkey, 
and the Socialist Republic of Vietnam, dated concurrently with this 
notice (Country-Specific AD Initiation Checklists) at Attachment II, 
Analysis of Industry Support for the Antidumping and Countervailing 
Duty Petitions Covering Certain Paper Shopping Bags from Cambodia, 
the People's Republic of China, Colombia, India, Malaysia, Portugal, 
Taiwan, the Republic of Turkey, and the Socialist Republic of 
Vietnam (Attachment II). These Initiation Checklists are on file 
electronically via ACCESS.
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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 Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the appendix to 
this notice. To establish industry support, the petitioner provided the 
2022 production of paper bags for the U.S. producers that support the 
Petitions and compared this to the estimated total 2022 production of 
paper bags by the U.S. industry.\17\ We relied on data provided by the 
petitioner for purposes of measuring industry support.\18\
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    \17\ See Petitions at Volume I (pages 4-5 and Exhibits I-2 
through I-4); see also First General Issues Supplement at 7-9 and 
Exhibits I-S6 through I-S8; Petitioner's Letter, ``Petitions for the 
Imposition of Antidumping and Countervailing Duties on Imports of 
Certain Paper Shopping Bags from Cambodia, China, Colombia, India, 
Malaysia, Portugal, Taiwan, Turkey, and Vietnam--Industry Support 
Calculation Revision,'' dated June 9, 2023 (Industry Support 
Supplement) at Attachments A and B; and Second General Issues 
Supplement at 2-3 and Exhibits I-2S2 through I-2S4.
    \18\ See Petitions at Volume I (pages 2-5 and Exhibits I-2 
through I-4); see also First General Issues Supplement at 7-9 and 
Exhibits I-S6 through I-S8; Industry Support Supplement at 1-2 and 
Attachments A and B; and Second General Issues Supplement at 2-3 and 
Exhibits I-2S2 through I-2S4. For further discussion, see Attachment 
II of the Country-Specific AD Initiation Checklists.
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    Our review of the data provided in the Petitions, the First General 
Issues Supplement, the Industry Support Supplement, the Second General 
Issues Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petitions.\19\ First, the Petitions 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 
732(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petitions 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 732(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petitions 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 Petitions.\22\ Accordingly, Commerce determines that the Petitions 
were filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act.\23\
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    \19\ See Petitions at Volume I (pages 2-5 and Exhibits I-2 
through I-4); see also First General Issues Supplement at 7-9 and 
Exhibits I-S6 through I-S8; Industry Support Supplement at 1-2 and 
Attachments A and B; and Second General Issues Supplement at 2-3 and 
Exhibits I-2S2 through I-2S4. For further discussion, see Attachment 
II of the Country-Specific AD Initiation Checklists.
    \20\ See Attachment II of the Country-Specific AD Initiation 
Checklists; see also section 732(c)(4)(D) of the Act.
    \21\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \22\ Id.
    \23\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, with regard to China, India, 
Taiwan, and Vietnam, the petitioner alleges that subject imports exceed 
the negligibility threshold provided for under section 771(24)(A) of 
the Act.\24\ With regard to Cambodia, Colombia, Malaysia, Portugal, and 
Turkey, while the allegedly dumped imports from each of these countries 
do not individually exceed the statutory requirements for 
negligibility, the petitioner provided data demonstrating that the 
aggregate import share from these five countries is 10.19 percent, 
which exceeds the seven percent threshold established by the exception 
in section 771(24)(A)(ii) of the Act.\25\
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    \24\ See Petitions at Volume I (pages 18-19 and Exhibit I-15).
    \25\ Id. at Volume I (page 19 and Exhibit I-15).
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    The petitioner contends that the industry's injured condition is 
illustrated by a significant volume of subject imports; reduced market 
share; underselling and price depression and/or suppression; lost sales 
and revenues; decline in the domestic industry's production, capacity 
utilization, and U.S. commercial shipments; and adverse impact on the 
domestic industry's profitability and financial performance.\26\ We 
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.\27\
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    \26\ See Petitions at Volume I (pages 16-31 and Exhibits I-13 
through I-18); see also First General Issues Supplement at 10-12 and 
Exhibit I-S9.
    \27\ See Country-Specific AD Initiation Checklists at Attachment 
III, ``Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Certain Paper Shopping Bags from Cambodia, the People's 
Republic of China, Colombia, India, Malaysia, Portugal, Taiwan, the 
Republic of Turkey, and the Socialist Republic of Vietnam.''
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Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate

[[Page 41592]]

AD investigations of imports of paper bags from Cambodia, China, 
Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam. The 
sources of data for the deductions and adjustments relating to U.S. 
price and normal value (NV) are discussed in greater detail in the 
Country-Specific AD Initiation Checklists.

U.S. Price

    For China, Colombia, India, Malaysia, Portugal, Taiwan, and Turkey, 
the petitioner based export price (EP) on pricing information for sales 
of, or offers for sale of, paper bags produced in and exported from 
each country. The petitioner made certain adjustments to U.S. price to 
calculate a net ex-factory U.S. price, where applicable.\28\
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    \28\ See Country-Specific AD Initiation Checklists.
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Normal Value 29
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    \29\ In accordance with section 773(b)(2) of the Act, for the 
Cambodia, Colombia, India, Malaysia, Portugal, Taiwan, and Turkey 
investigations, Commerce will request information necessary to 
calculate the constructed value (CV) and COP to determine whether 
there are reasonable grounds to believe or suspect that sales of the 
foreign like product have been made at prices that represent less 
than the COP of the product.
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    For Cambodia, Colombia, India, Malaysia, Portugal, Taiwan, and 
Turkey, the petitioner stated that it was unable to obtain home-market 
or third-country prices for paper bags to use as a basis for NV.\30\ 
Therefore, for these countries, the petitioner calculated NV based on 
CV.\31\ For further discussion of CV, see the section ``Normal Value 
Based on Constructed Value.''
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    \30\ See Country-Specific AD Initiation Checklists.
    \31\ Id.
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    Commerce considers China and Vietnam to be NME countries.\32\ In 
accordance with section 771(18)(C)(i) of the Act, any determination 
that a foreign country is an NME country shall remain in effect until 
revoked by Commerce. Therefore, we continue to treat China and Vietnam 
as NME countries for purposes of the initiation of these 
investigations. Accordingly, we base NV on factors of production (FOPs) 
valued in a surrogate market economy country in accordance with section 
773(c) of the Act.
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    \32\ See, e.g., Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value and Preliminary 
Affirmative Determination of Critical Circumstances, 88 FR 15372 
(March 13, 2023), and accompanying Preliminary Decision Memorandum 
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Final Affirmative Determination 
of Sales at Less-Than-Fair Value and Final Affirmative Determination 
of Critical Circumstances, 88 FR 34485 (May 30, 2023); see also 
Certain Frozen Fish Fillets from the Socialist Republic of Vietnam: 
Final Results, and Final Results of No Shipments of the Antidumping 
Duty Administrative Review; 2016-2017, 84 FR 18007 (April 29, 2019).
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    The petitioner claims that Malaysia is an appropriate surrogate 
country for China because it is a market economy that is at a level of 
economic development comparable to that of China and is a significant 
producer of comparable merchandise.\33\ The petitioner provided 
publicly available information from Malaysia to value all FOPs (except 
labor and overhead).\34\ To value labor and overhead, the petitioner 
provided labor statistics and financial statements from another 
surrogate country, Turkey.\35\ Based on the information provided by the 
petitioner, we believe it is appropriate to use Malaysia as a surrogate 
country to value all FOPs (except labor and overhead) and Turkey to 
value labor and overhead for initiation purposes.
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    \33\ See China AD Initiation Checklist.
    \34\ Id.
    \35\ See China AD Initiation Checklist.
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    The petitioner claims that Indonesia is an appropriate surrogate 
country for Vietnam because it is a market economy that is at a level 
of economic development comparable to that of Vietnam and is a 
significant producer of comparable merchandise.\36\ The petitioner 
provided publicly available information from Indonesia to value all 
FOPs.\37\ Based on the information provided by the petitioner, we 
believe it is appropriate to use Indonesia as a surrogate country for 
initiation purposes.
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    \36\ See Vietnam AD Initiation Checklist.
    \37\ Id.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determinations.

Factors of Production

    Because information regarding the volume of inputs consumed by 
Chinese and Vietnamese producers/exporters was not reasonably 
available, the petitioner used product-specific consumption rates from 
a U.S. producer of paper bags as a surrogate to value Chinese and 
Vietnamese manufacturers' FOPs.\38\ Additionally, the petitioner 
calculated factory overhead; selling, general and administrative (SG&A) 
expenses; and profit based on the experience of a Malaysian and 
Indonesian producer of identical merchandise for China and Vietnam, 
respectively.\39\
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    \38\ See China AD Initiation Checklist and Vietnam AD Initiation 
Checklist.
    \39\ See China AD Initiation Checklist and Vietnam AD Initiation 
Checklist. As noted above, the petitioner calculated labor and 
overhead using information specific to Turkey. See China AD 
Initiation Checklist.
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Normal Value Based on Constructed Value

    As noted above for Cambodia, Colombia, India, Malaysia, Portugal, 
Taiwan, and Turkey, the petitioner stated it was unable to obtain home-
market or third-country prices for paper bags to use as a basis for NV. 
Therefore, for these countries, the petitioner calculated NV based on 
CV.\40\
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    \40\ See Country-Specific AD Initiation Checklists.
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    Pursuant to section 773(e) of the Act, the petitioner calculated CV 
as the sum of the cost of manufacturing, SG&A expenses, financial 
expenses, and profit.\41\ For each of these countries, in calculating 
the cost of manufacturing, the petitioner relied on the production 
experience and input consumption rates of a U.S. producer of paper 
bags, valued using publicly available information applicable to the 
respective countries.\42\ In calculating SG&A expenses, financial 
expenses, and profit ratios (where applicable), the petitioner relied 
on the most recently available fiscal year financial statements of a 
producer of identical or comparable merchandise domiciled in the 
subject country or a third country, where applicable.\43\
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    \41\ Id.
    \42\ Id.
    \43\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of paper bags from Cambodia, China, Colombia, 
India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam, are being, or 
are likely to be, sold in the United States at LTFV. Based on 
comparisons of EP to NV in accordance with sections 772 and 773 of the 
Act, the estimated dumping margins for paper bags for each of the 
countries covered by this initiation are as follows: (1) Cambodia--
18.21 to 248.81 percent; China--93.10 to 237.02 percent; Colombia--
56.14 percent; India--26.45 to 96.15 percent; Malaysia--148.19 percent; 
Portugal--31.12 to 188.78 percent; Taiwan--60.26 to 65.81 percent; 
Turkey--13.65 to 47.56 percent; and Vietnam--27.64 to 92.34 
percent.\44\
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    \44\ Id.
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Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses,

[[Page 41593]]

we find that they meet the requirements of section 732 of the Act. 
Therefore, we are initiating AD investigations to determine whether 
imports of paper bags from Cambodia, China, Colombia, India, Malaysia, 
Portugal, Taiwan, Turkey, and Vietnam are being, or are likely to be, 
sold in the United States at LTFV. In accordance with section 
733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we 
will make our preliminary determinations no later than 140 days after 
the date of these initiations.

Respondent Selection

Cambodia, Colombia, India, Malaysia, Portugal, Taiwan, and Turkey

    In the Petitions, the petitioner identified three companies in 
Cambodia, three companies in Colombia, 18 companies in India, three 
companies in Malaysia, one company in Portugal, three companies in 
Taiwan, and 21 companies in Turkey as producers/exporters of paper 
bags.\45\ For Cambodia, Colombia, India, Malaysia, Taiwan and Turkey, 
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 quantity and value (Q&V) questionnaires issued to 
potential respondents. Following standard practice in AD investigations 
involving market economy countries, Commerce would normally select 
respondents based on U.S. Customs and Border Protection (CBP) entry 
data for imports under the appropriate Harmonized Tariff Schedule of 
the United States (HTSUS) subheadings listed in the scope of the 
investigations. However, for these investigations, the main HTSUS 
subheadings under which the subject merchandise would enter 
(4819.30.0040 and 4819.40.0040) are basket categories under which non-
subject merchandise may also enter. Therefore, we cannot rely on CBP 
entry data in selecting respondents. We, instead, intend to issue Q&V 
questionnaires to each potential respondent for which the petitioner 
has provided a complete address for Cambodia, Colombia, India, 
Malaysia, Taiwan and Turkey. For Portugal, the petitioner identified 
only one company as an exporter or producer of paper bags. Therefore, 
unless we receive voluntary responses to the Q&V questionnaire from 
companies not identified, as described below, we intend to examine this 
one exporter or producer of paper bags from Portugal.
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    \45\ See First General Issues Supplement at 1-2 and Exhibit I-
S2.
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    Exporters/producers of paper bags from Cambodia, Colombia, India, 
Malaysia, Portugal, Taiwan, and Turkey that do not receive Q&V 
questionnaires by mail may still submit a response to the Q&V 
questionnaire and can obtain a copy of the Q&V questionnaire from 
Enforcement and Compliance's website, at https://www.trade.gov/ec-adcvd-case-announcements. Responses to the Q&V questionnaire must be 
submitted by the relevant exporters/producers no later than 5:00 p.m. 
ET on July 5, 2023, which is the next business day after two weeks from 
the signature date of this notice.\46\ All Q&V responses must be filed 
electronically via ACCESS. An electronically filed document must be 
received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above.
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    \46\ See 19 CFR 351.303(b)(1) (``For both electronically filed 
and manually filed documents, if the applicable due date falls on a 
non-business day, the Secretary will accept documents that are filed 
on the next business day.''). Two weeks from the initiation of these 
investigation is July 4, 2023, which is a Federal holiday.
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    Interested parties must submit applications for disclosure under 
administrative protective order (APO) in accordance with 19 CFR 
351.305(b). Instructions for filing such applications may be found on 
Commerce's website at https://www.trade.gov/administrative-protective-orders. Commerce intends to make its decisions regarding respondent 
selection for Cambodia, Colombia, India, Malaysia, Portugal, Taiwan, 
and Turkey within 20 days of publication of this notice.

China and Vietnam

    In the Petitions, the petitioner named 26 companies in China and 14 
companies in Vietnam as producers and/or exporters of paper bags.\47\ 
In accordance with our standard practice for respondent selection in AD 
investigations involving NME countries, Commerce selects respondents 
based on Q&V questionnaires in cases where it has determined that the 
number of companies is large and it cannot individually examine each 
company based upon its resources. Therefore, considering the number of 
producers and/or exporters identified in the Petition, Commerce will 
solicit Q&V information that can serve as a basis for selecting 
exporters for individual examination in the event that Commerce decides 
to limit the number of respondents individually examined pursuant to 
section 777A(c)(2) of the Act. Because there are 26 Chinese and 14 
Vietnamese producers and/or exporters identified in the Petitions, 
Commerce has determined that it will issue Q&V questionnaires to each 
potential respondent for which the petitioner has provided a complete 
address.
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    \47\ See First General Issues Supplement at 1-2 and Exhibit I-
S2.
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    In addition, Commerce will post the Q&V questionnaires along with 
filing instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of paper bags from China 
and Vietnam that do not receive Q&V questionnaires may still submit a 
response to the Q&V questionnaire and can obtain a copy of the Q&V 
questionnaire from Commerce's website. In accordance with the standard 
practice for respondent selection in AD cases involving NME countries, 
in the event Commerce decides to limit the number of respondents 
individually investigated, Commerce intends to base respondent 
selection on the responses to the Q&V questionnaire that it receives.
    Responses to the Q&V questionnaire must be submitted by the 
relevant Chinese and Vietnamese producers/exporters no later than 5:00 
p.m. ET on July 5, 2023, which is the next business day after two weeks 
from the signature date of this notice.\48\ All Q&V questionnaire 
responses must be filed electronically via ACCESS. An electronically 
filed document must be received successfully, in its entirety, by 
ACCESS no later than 5:00 p.m. ET on the deadline noted above.
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    \48\ See 19 CFR 351.303(b)(1) (``For both electronically filed 
and manually filed documents, if the applicable due date falls on a 
non-business day, the Secretary will accept documents that are filed 
on the next business day.''). Two weeks from the initiation of these 
investigation is July 4, 2023, which is a Federal holiday.
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    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). As stated above, instructions 
for filing such applications may be found on Commerce's website at 
https://www.trade.gov/administrative-protective-orders. Commerce 
intends to make its decisions regarding respondent selection for China 
and Vietnam within 20 days of publication of this notice.

Separate Rates

    In order to obtain separate rate status in an NME investigation, 
exporters and producers must submit a separate rate application. The 
specific requirements for submitting a separate rate application in an 
NME investigation are outlined in detail in the application itself, 
which is available on Commerce's website at https://access.trade.gov/

[[Page 41594]]

Resources/nme/nme-sep-rate.html. The separate rate application will be 
due 30 days after publication of this initiation notice. Exporters and 
producers who submit a separate rate application and have been selected 
as mandatory respondents will be eligible for consideration for 
separate rate status only if they respond to all parts of Commerce's AD 
questionnaire as mandatory respondents. Commerce requires that 
companies from China and Vietnam submit a response both to the Q&V 
questionnaire and to the separate rate application by the respective 
deadlines in order to receive consideration for separate rate status. 
Companies not filing a timely Q&V questionnaire response will not 
receive separate rate consideration.

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

{w{time} while continuing the practice of assigning separate rates 
only to exporters, all separate rates that {Commerce{time}  will now 
assign in its NME Investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the {weighted 
average{time}  of the individually calculated rates. This practice 
is referred to as the application of ``combination rates'' because 
such rates apply to specific combinations of exporters and one or 
more producers. The cash-deposit rate assigned to an exporter will 
apply only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\49\
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    \49\ See Enforcement and Compliance's Policy Bulletin 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigation involving NME Countries,'' (April 
5, 2005) at 6 (emphasis added), available on Commerce's website at 
https://access.trade.gov/Resources/policy/bull05-1.pdf.
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Distribution of Copies of the AD Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the AD Petitions have been 
provided to the governments of Cambodia, China, Colombia, India, 
Malaysia, Portugal, Taiwan, Turkey, and Vietnam via ACCESS. To the 
extent practicable, we will attempt to provide a copy of the public 
version of the AD Petitions to each exporter named in the AD Petitions, 
as provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of our initiation, as required by 
section 732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the AD Petitions were filed, whether there is a reasonable 
indication that imports of paper bags from Cambodia, China, Colombia, 
India, Malaysia, Portugal, Taiwan, Turkey, and/or Vietnam are 
materially injuring, or threatening material injury to, a U.S. 
industry.\50\ A negative ITC determination for any country will result 
in the investigation being terminated with respect to that country.\51\ 
Otherwise, these AD investigations will proceed according to statutory 
and regulatory time limits.
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    \50\ See section 733(a) of the Act.
    \51\ 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). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \52\ 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.\53\ 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. Interested parties 
should review the regulations prior to submitting factual information 
in these investigations.
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    \52\ See 19 CFR 351.301(b).
    \53\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 773(e) of the Act addresses the concept of particular 
market situation (PMS) for purposes of CV, stating that ``if a 
particular market situation exists such that the cost of materials and 
fabrication or other processing of any kind does not accurately reflect 
the cost of production in the ordinary course of trade, the 
administering authority may use another calculation methodology under 
this subtitle or any other calculation methodology.'' When an 
interested party submits a PMS allegation pursuant to section 773(e) of 
the Act, Commerce will respond to such a submission consistent with 19 
CFR 351.301(c)(2)(v). If Commerce finds that a PMS exists under section 
773(e) of the Act, then it will modify its dumping calculations 
appropriately.
    Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set 
a deadline for the submission of PMS allegations and supporting factual 
information. However, in order to administer section 773(e) of the Act, 
Commerce must receive PMS allegations and supporting factual 
information with enough time to consider the submission. Thus, should 
an interested party wish to submit a PMS allegation and supporting new 
factual information pursuant to section 773(e) of the Act, it must do 
so no later than 20 days after submission of a respondent's initial 
section D questionnaire response.

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 Commerce. 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.\54\ For submissions that are 
due from 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, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we 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, stand-alone submission; under limited circumstances we will 
grant untimely filed requests for the extension of time limits, where 
we determine, based on 19

[[Page 41595]]

CFR 351.302, that extraordinary circumstances exist. Parties should 
review Commerce's regulations concerning the extension of time limits 
and the Time Limits Final Rule prior to submitting factual information 
in these investigations.\55\
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    \54\ See 19 CFR 351.301; see also Extension of Time Limits; 
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final 
Rule), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
    \55\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
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Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\56\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\57\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements. Note that Commerce has temporarily modified certain of 
its requirements for serving documents containing business proprietary 
information, until further notice.\58\
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    \56\ See section 782(b) of the Act.
    \57\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional 
information regarding the Final Rule is available at https://access.trade.gov/Resources/filing/index.html.
    \58\ 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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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Parties wishing to participate 
in these investigations should ensure that they meet the requirements 
of 19 CFR 351.103(d) (e.g., by filing the required letter of 
appearance). Note that Commerce has temporarily modified certain of its 
requirements for serving documents containing business proprietary 
information, until further notice.\59\
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    \59\ 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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    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: June 20, 2023.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix

Scope of the Investigations

    The products within the scope of these investigations are paper 
shopping bags with handles of any type, regardless of whether there 
is any printing, regardless of how the top edges are finished (e.g., 
folded, serrated, or otherwise finished), regardless of color, and 
regardless of whether the top edges contain adhesive or other 
material for sealing closed. Subject paper shopping bags have a 
width of at least 4.5 inches and depth of at least 2.5 inches.
    Paper shopping bags typically are made of kraft paper but can be 
made from any type of cellulose fiber, paperboard, or pressboard 
with a basis weight less than 300 grams per square meter (GSM).
    A non-exhaustive illustrative list of the types of handles on 
shopping bags covered by the scope include handles made from any 
materials such as twisted paper, flat paper, yarn, ribbon, rope, 
string, or plastic, as well as die-cut handles (whether the punchout 
is fully removed or partially attached as a flap).
    Excluded from the scope are:
     Paper sacks or bags that are of a \1/6\ or \1/7\ barrel 
size (i.e., 11.5-12.5 inches in width, 6.5-7.5 inches in depth, and 
13.5-17.5 inches in height) with flat paper handles or die-cut 
handles;
     Paper sacks or bags with die-cut handles, a grams per 
square meter paper weight of less than 86 GSM, and a height of less 
than 11.5 inches; and
     Shopping bags (i) with non-paper handles made wholly of 
woven ribbon or other similar woven fabric and (ii) that are 
finished with folded tops or for which tied knots or t-bar aglets 
(made of wood, metal, or plastic) are used to secure the handles to 
the bags.
    The above-referenced dimensions are provided for paper bags in 
the opened position. The height of the bag is the distance from the 
bottom fold edge to the top edge (i.e., excluding the height of 
handles that extend above the top edge). The depth of the bag is the 
distance from the front of the bag edge to the back of the bag edge 
(typically measured at the bottom of the bag). The width of the bag 
is measured from the left to the right edges of the front and back 
panels (upon which the handles typically are located).
    This merchandise is currently classifiable under Harmonized 
Tariff Schedule of the United States (HTSUS) subheadings 
4819.30.0040 and 4819.40.0040. The HTSUS subheadings are provided 
for convenience and customs purposes only; the written description 
of the scope is dispositive.

[FR Doc. 2023-13576 Filed 6-26-23; 8:45 am]
BILLING CODE 3510-DS-P