[Federal Register Volume 89, Number 2 (Wednesday, January 3, 2024)]
[Notices]
[Pages 331-333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28943]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-872]


Certain Paper Shopping Bags From Taiwan: Preliminary Affirmative 
Determination 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 that certain paper shopping bags (paper bags) from 
Taiwan are being, or are likely to be, sold in the United States at 
less than fair value (LTFV). The period of investigation is April 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: Nathan James, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-5305.

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 in the Federal 
Register 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 discussed in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at 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 Taiwan,'' 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 certain paper 
shopping bags from Taiwan. 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 
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 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 for 
Haurtyi Paper Bag Co. (Haurtyi) in accordance with section 772(a) of 
the Act. Normal value for Haurtyi is calculated in accordance with 
section 773 of the Act. Furthermore, pursuant to sections 776(a) and 
(b) of the Act, Commerce has preliminarily relied on facts otherwise 
available, with adverse inferences (AFA), for Juang Jia Guoo Co., Ltd. 
(JJG). For a full description of the methodology underlying the 
preliminary determination, see the Preliminary Decision Memorandum.

Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 733(e) of the Act and 19 CFR 351.206(c), 
Commerce preliminarily determines that critical circumstances exist 
with respect to imports of paper bags from Taiwan for JJG and for all 
other producers and exporters. For a full description of the 
methodology and results of Commerce's critical circumstances analysis, 
see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that, 
in a preliminary determination, Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    Where the rates for individually investigated companies are all 
zero or de minimis, or determined entirely using facts otherwise 
available, section 735(c)(5)(B) of the Act instructs Commerce to rely 
on ``any reasonable method to establish the estimated all-others rate 
for exporters and producers not individually investigated, including 
averaging the estimated weighted-average dumping margins determined

[[Page 332]]

for the exporters and producers individually investigated.''
    Commerce has preliminarily determined the dumping margin for JJG 
under section 776 of the Act and has calculated an estimated weighted-
average dumping margin for Haurtyi of zero. Consequently, pursuant to 
section 735(c)(5)(B) of the Act, we calculated the all-others rate 
based on a simple average of the zero percent dumping margin and the 
dumping margin based on AFA.

Preliminary Determination

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

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Producer/exporter                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Haurtyi Paper Bag Co........................................        0.00
Juang Jia Guoo Co., Ltd.....................................     * 60.26
All Others..................................................       30.13
------------------------------------------------------------------------
* Rate based on AFA.

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. 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 estimated weighted-
average dumping margin or the estimated all-others rate, as follows: 
(1) the cash deposit rates for the respondents listed above will be 
equal to the company-specific estimated weighted-average dumping 
margins determined in this preliminary determination; (2) if the 
exporter is not a respondent identified above, but the producer is, 
then the cash deposit rate will be equal to the company-specific 
estimated weighted-average dumping margin established for that producer 
of the subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters will be equal to the all-others estimated 
weighted-average dumping margin.
    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 subject merchandise 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 produced or exported by JJG. In accordance with section 
733(e)(2)(A) of the Act, the suspension of liquidation shall apply to 
unliquidated entries of shipments of subject merchandise from the 
producer/exporter identified in this paragraph that were entered, or 
withdrawn from warehouse, for consumption on or after the date which is 
90 days before the publication of this notice.
    Because the estimated weighted-average dumping margin for Haurtyi 
is zero, entries of shipments of subject merchandise from this company 
will not be subject to suspension of liquidation or cash deposit 
requirements. In such situations, Commerce applies the exclusion to the 
provisional measures to the producer/exporter combination that was 
examined in the investigation. Accordingly, Commerce is directing CBP 
not to suspend liquidation of entries of subject merchandise produced 
and exported by Haurtyi. Entries of shipments of subject merchandise 
from Haurtyi in any other producer/exporter combination, or by third 
parties that sourced subject merchandise from the excluded producer/
exporter combination, are subject to the provisional measures at the 
all-others rate.
    Should the final estimated weighted-average dumping margin be zero 
or de minimis for Haurtyi, entries of shipments of subject merchandise 
produced and exported by the company will be excluded from the 
potential antidumping duty order. Such an exclusion would not be 
applicable to merchandise exported to the United States by this 
respondent in any other producer/exporter combination or by third 
parties that sourced subject merchandise from the excluded producer/
exporter combination. These suspension of liquidation measures will 
remain in effect until further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any 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 the 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 last 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.\7\ 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.\8\
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    \7\ 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).
    \8\ See 19 CFR 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.\9\ 
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).\10\
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    \9\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \10\ 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

[[Page 333]]

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 petitioner. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by exporters for postponement of the final 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) requested that Commerce postpone the final 
determination in the event of a negative preliminary determination.\11\ 
On December 13, 2023, Haurtyi requested that Commerce postpone the 
final determination and that provisional measures be extended to a 
period not to exceed six months.\12\ 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 publication of this preliminary 
determination.
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    \11\ See Petitioner's Letter, ``Petitioner's Request for 
Postponement of the Final Determinations,'' dated November 21, 2023.
    \12\ See Haurtyi's Letter, ``Request for Extension of Final 
Determination,'' dated December 13, 2023.
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U.S. 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. 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 paper bags from Taiwan are materially injuring, or 
threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This preliminary 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 \13\ 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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    \13\ 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. Use of Facts Available With Adverse Inferences
V. Discussion of the Methodology
VI. Critical Circumstances
VII. Currency Conversion
VIII. Recommendation

[FR Doc. 2023-28943 Filed 1-2-24; 8:45 am]
BILLING CODE 3510-DS-P