[Federal Register Volume 89, Number 2 (Wednesday, January 3, 2024)]
[Notices]
[Pages 344-347]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28938]



[[Page 344]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-152]


Certain Paper Shopping Bags From the People's Republic of China: 
Preliminary Affirmative Determinations of Sales at Less Than Fair 
Value, Preliminary Affirmative Determination of Critical Circumstances, 
Postponement of Final Determination, and Extension of Provisional 
Measures

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

SUMMARY:  The U.S. Department of Commerce (Commerce) preliminarily 
determines that certain paper shopping bags (paper bags) 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 (POI) is October 1, 2022, through March 31, 2023. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable January 3, 2024.

FOR FURTHER INFORMATION CONTACT: Tyler Weinhold, AD/CVD Operations, 
Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1211.

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 June 27, 
2023.\1\ On October 3, 2023, Commerce postponed the preliminary 
determination of this investigation until December 27, 2023.\2\
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    \1\ See 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, 88 FR 41589 (June 
27, 2023) (Initiation Notice).
    \2\ See 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: 
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 88 FR 68097 (October 3, 2023).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Less-Than-Fair Value Investigation 
of Certain Paper Shopping Bags from the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are paper bags 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,\4\ in 
the Initiation Notice, Commerce set aside a period of time for parties 
to raise issues regarding product coverage (i.e., scope).\5\ Certain 
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 Decision Memorandum.\6\ As 
discussed in the Preliminary Scope Decision Memorandum, Commerce 
preliminarily modified the scope language as it appeared in the 
Initiation Notice. In the Preliminary Scope Decision Memorandum, 
Commerce established the deadline for parties to submit scope case and 
rebuttal briefs.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 88 FR at 41590.
    \6\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated concurrently with this notice (Preliminary Scope Decision 
Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Because China is a non-
market economy within the meaning of section 771(18) of the Act, 
Commerce has calculated normal value in accordance with section 773(c) 
of the Act.
    In addition, pursuant to sections 776(a) and (b) of the Act because 
the China-wide entity did not cooperate to the best of its ability in 
responding to Commerce's request for data, Commerce preliminarily has 
relied upon facts otherwise available, with adverse inferences, in 
determining the estimated weighted-average dumping margin for the 
China-wide entity. For a full description of the methodology underlying 
Commerce's preliminary determination, see the Preliminary Decision 
Memorandum.

Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    In accordance with section 733(e)(1) of the Act and 19 CFR 
351.206(c), Commerce preliminarily determines that critical 
circumstances exist with respect to imports of paper bags from China 
for Dongzheng Paperbag (DaLian) Factory (Dongzheng), the non-selected 
respondents eligible for a separate rate, and the China-wide entity. 
Commerce preliminarily determines that critical circumstances do not 
exist with respect to imports of paper bags from China for UUPAK Co., 
Ltd. (UUPAK). For a full description of the methodology and results of 
Commerce's analysis, see the Preliminary Decision Memorandum.

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. Commerce's 
Policy Bulletin 05.1 describes this practice.\8\ In this investigation, 
we calculated producer/exporter combination rates for respondents 
eligible for separate rates.
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    \7\ See Initiation Notice, 88 FR at 4811.
    \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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Separate Rates

    In addition to Dongzheng and UUPAK, we have preliminarily granted a 
separate rate to certain respondents that we did not select for 
individual examination.\9\ In calculating the rate for non-individually 
examined separate rate respondents in a non-market economy LTFV 
investigation, Commerce normally looks to section 735(c)(5)(A) of the 
Act, which pertains to the calculation of the all-others rate in a 
market economy LTFV investigation, for guidance. Pursuant to section 
735(c)(5)(A) of the Act, normally this rate shall be an amount equal to 
the

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weighted average of the estimated weighted-average dumping margins 
established for those companies individually examined, excluding zero 
and de minimis and any rates based entirely under section 776 of the 
Act. Commerce calculated individual estimated weighted-average dumping 
margins for Dongzheng and UUPAK that are not zero, de minimis, or based 
entirely on facts otherwise available. Thus, the weighted-average 
dumping margins calculated for Dongzheng and UUPAK are the basis to 
determine the weighted-average dumping margin for the non-examined, 
separate rate companies, investigation. See the table below in the 
``Preliminary Determination'' section of this notice.
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    \9\ See the Preliminary Decision Memorandum for additional 
details.
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Preliminary Determination

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

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                                                                                                   Cash deposit
                                                                                     Weighted-    rate (adjusted
                                                                                      average       for export
                  Exporter                                 Producer               dumping margin      subsidy
                                                                                     (percent)       offset(s)
                                                                                                     (percent)
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Dongzheng Paperbag (DaLian) Factory........  Dongzheng Paperbag (DaLian) Factory           59.41           48.86
UUPAK Co., Ltd.............................  Tianjin Haishun Printing & Packing            24.15           12.81
                                              Co., Ltd.
Fujian Eco Packaging Co., Ltd..............  Fujian Hongkai Packaging Co., Ltd..           40.55           29.21
Fujian Eco Packaging Co., Ltd..............  Fujian Yihe Packaging Co., Ltd.....           40.55           29.21
Fujian Eco Packaging Co., Ltd..............  Guangdong Union Eco-Packaging Scien-          40.55           29.21
                                              Tech Co., Ltd.
Fujian Eco Packaging Co., Ltd..............  Xiamen Huide Eco-friendly Paper               40.55           29.21
                                              Bags Co., Ltd.
Fujian Eco Packaging Co., Ltd..............  Xiamen Jihong Technology Co., Ltd..           40.55           29.21
Fujian Nanwang Environment Protection Scien- Anhui Nanwang Environmental                   40.55           29.15
 tech Co., Ltd.                               Protection Technology Co., Ltd.
Fujian Nanwang Environment Protection Scien- Fujian Nanwang Environment                    40.55           29.15
 tech Co., Ltd.                               Protection Scien-tech CO., LTD.
Fujian Nanwang Environment Protection Scien- Hubei Nanwang Environmental                   40.55           29.15
 tech Co., Ltd.                               Protection Scien-tech Co., Ltd.
Fujian Nanwang Environment Protection Scien- Xianghe Nanwang Environmental                 40.55           29.15
 tech Co., Ltd.                               Protection Technology Co., Ltd.
Fujian Nanwang Environment Protection Scien- Zhuhai Zhongyue Paper CUP Container           40.55           29.15
 tech Co., Ltd.                               Co., Ltd.
Grand Intelligent Limited..................  Ruichuang Limited..................           40.55           29.21
Max Fortune Industrial Ltd.................  Winner Printing and Packaging (He             40.55           29.21
                                              Yuan) Ltd.
Ningbo Beiheng Import & Export Company       Wenzhou Weijie Packing Co., Ltd....           40.55           29.21
 Limited.
Shanghai Miho Package & Product Co., Ltd...  Zhejiang Shengxiang Industrial Co.,           40.55           29.21
                                              Ltd.
Union Packaging Group Limited..............  Guangdong Union Eco-Packaging Scien-          40.55           29.21
                                              Tech Co., Ltd.
Wuxi Hualite Metal Plastic Products Co.,     Wuxi Hualite Paper Products Co.,              40.55           29.21
 Ltd.                                         Ltd.
Xiamen Bag Imp. & Exp. Co., Ltd............  Xiamen CYR Green-Tech Co., Ltd.....           40.55           29.21
Xiamen Huide Xiesheng Packaging Co., Ltd...  Xiamen Huide Eco-Friendly Paper               40.55           29.21
                                              Bags Co., Ltd.
Xiamen Jihong Technology Co., Ltd..........  Xiamen Jihong Technology Co., Ltd..           40.55           29.21
Xiamen Joy Supply Chain Co., Ltd...........  Fujian Huian Nice Paper Products              40.55           29.21
                                              Co., Ltd.
Xiamen Joy Supply Chain Co., Ltd...........  Xiamen THINKER Packaging Products             40.55            29.2
                                              Co., Ltd.
Xiamen Nice Packaging Products Co., Ltd....  Fujian Huian Nice Paper Products              40.55           29.21
                                              Co., Ltd.
Xiamen Nice Packaging Products Co., Ltd....  Xiamen THINKER Packaging Products             40.55           29.21
                                              Co., Ltd.
China-wide Entity \10\.....................  ...................................          146.32          135.77
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Suspension of Liquidation
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    \10\ We have not granted a separate rate to Qingdao Deepack Co., 
Ltd.; thus, the China-wide Entity preliminarily includes Qingdao 
Deepack Co., Ltd. See the Preliminary Decision Memorandum for 
additional details.
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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, 
or earlier, 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 subject 
merchandise 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 subject merchandise 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.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise

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entered, or withdrawn from warehouse, for consumption on or after the 
later of (a) the date which is 90 days before the date on which the 
suspension of liquidation was first ordered, or (b) the date on which 
notice of initiation of the investigation was published. Commerce 
preliminarily finds that critical circumstances exist for imports of 
subject merchandise from Dongzheng, the non-selected respondents 
eligible for a separate rate, and the China-wide entity.\11\ However, 
we have found that critical circumstances do not exist for UUPAK.\12\ 
In accordance with section 733(e)(2)(A) of the Act, the suspension of 
liquidation shall apply to all unliquidated entries of merchandise from 
Dongzheng, the non-selected respondents eligible for a separate rate, 
and the China-wide entity that were entered, or withdrawn from 
warehouse, for consumption on or after the date which is 90 days before 
the publication of this notice in the Federal Register.
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    \11\ See Preliminary Decision Memorandum.
    \12\ Id.
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    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 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce has made a preliminary 
affirmative determination for domestic subsidy pass-through or export 
subsidies, Commerce offset the calculated estimated weighted-average 
dumping margin by the appropriate rate(s). 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

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this 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 the 
Federal Register in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the verification report is issued in this 
investigation. Rebuttal briefs, limited to issues raised in the case 
briefs, may be filed not later than five days after the date for filing 
case briefs.\13\ Interested parties who submit case briefs or rebuttal 
briefs in this proceeding must submit: (1) a table of contents listing 
each issue; and (2) a table of authorities.\14\
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    \13\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \14\ See 19 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public, executive summary for each issue raised in their briefs.\15\ 
Further, we request that interested parties limit their executive 
summary of each issue to no more than 450 words, not including 
citations. We intend to use the executive summaries as the basis of the 
comment summaries included in the issues and decision memorandum that 
will accompany the final determination in this investigation. We 
request that interested parties include footnotes for relevant 
citations in the executive summary of each issue. Note that Commerce 
has amended certain of its requirements pertaining to the service of 
documents in 19 CFR 351.303(f).\16\
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    \15\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \16\ See APO and Service Final Rule.
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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.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for postponement of a final antidumping 
duty determination be accompanied by a request for extension of 
provisional measures from a four-month period to a period not more than 
six months in duration.
    On November 21, 2023, the Coalition For Fair Trade in Shopping Bags 
(the petitioner) timely requested that Commerce fully extend the 
deadline for the final determination in the event of a negative 
preliminary determination.\17\ On December 19, 2023, Dongzheng timely 
requested that Commerce fully extend the deadline for the final 
determination in the event of an affirmative preliminary 
determination.\18\ In accordance with section 735(a)(2)(A) of the Act 
and 19 CFR 351.210(b)(2)(ii), because: (1) the preliminary 
determination is affirmative; (2) the requesting exporter accounts for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the date of

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publication of this preliminary determination, pursuant to section 
735(a)(2) of the Act. Furthermore, as the final CVD determination has 
been aligned with the final LTFV determination, Commerce will make its 
final CVD determination no later than 135 days after the date of 
publication of this preliminary determination.\19\
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    \17\ See Petitioner's Letter, ``Request to Postpone Final 
Determination,'' dated November 6, 2023.
    \18\ See Dongzheng's Letter, ``Request to Extend Final 
Determination,'' dated December 19, 2023.
    \19\ See Certain Paper Shopping Bags from the People's Republic 
of China and India: Preliminary Affirmative Countervailing Duty 
Determination, Preliminary Affirmative Critical Circumstances 
Determination, in Part, and Alignment of Final Determination with 
Final Antidumping Duty Determination, 88 FR 76180 (November 6, 
2023).
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U.S. International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the U.S. 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 these 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 27, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The products within the scope of this investigation 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
     Paper sacks or bags (i) with non-paper handles made 
wholly of woven ribbon or other similar woven fabric \20\ 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.
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    \20\ Paper sacks or bags with handles made of braided or twisted 
materials, such as rope or cord, do not qualify for this exclusion.
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    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.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Discussion of the Methodology
V. Critical Circumstances
VI. Adjustment Under Section 777A(f) of the Tariff Act of 1930, As 
Amended
VII. Adjustment to Cash Deposit Rate for Export Subsidies
VIII. Currency Conversion
IX. Recommendation

[FR Doc. 2023-28938 Filed 1-2-24; 8:45 am]
BILLING CODE 3510-DS-P