[Federal Register Volume 89, Number 38 (Monday, February 26, 2024)]
[Notices]
[Pages 14046-14052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03863]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-164, A-549-849, A-552-839]
Certain Paper Plates From the People's Republic of China,
Thailand, 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 February 14, 2024.
FOR FURTHER INFORMATION CONTACT: Charles DeFilippo (the People's
Republic of China (China)) at (202) 482-3979; Theodore Pearson
(Thailand) at (202) 482-2631; and Bryan Hansen (the Socialist Republic
of Vietnam (Vietnam)) at (202) 482-3683, 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 January 25, 2024, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of certain
paper plates (paper plates) from China, Thailand, and Vietnam filed in
proper form on behalf of the American Paper Plate Coalition (the
petitioner).\1\ These AD Petitions were accompanied by countervailing
duty (CVD) petitions concerning imports of paper plates from China and
Vietnam.\2\
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\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties,'' dated January 25, 2024 (the
Petitions). The members of the American Paper Plate Coalition are
AJM Packaging Corporation, Aspen Products, Inc., Dart Container
Corporation, Hoffmaster Group, Inc., Huhtamaki Americas, Inc., and
Unique Industries, Inc.
\2\ Id.
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Between January 29 and February 6, 2024, Commerce requested
supplemental information pertaining to certain aspects of the Petitions
in separate supplemental questionnaires.\3\ The petitioner filed
responses to the
[[Page 14047]]
supplemental questionnaires between January 31 and February 8, 2024.\4\
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\3\ See Commerce's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Paper
Plates from the People's Republic of China, Thailand, and the
Socialist Republic of Vietnam: Supplemental Questions,'' dated
January 29, 2024 (General Issues Questionnaire); see also Country-
Specific Supplemental Questionnaires: China Supplemental, Thailand
Supplemental, and Vietnam Supplemental, dated January 29, 2024; and
Memorandum, ``Phone Call,'' dated February 6, 2024 (February 6
Memorandum).
\4\ See Petitioner's Letters, ``Petitioner's Responses to
Supplemental Questions--General Issues,'' dated February 2, 2024
(First General Issues Supplement); Country-Specific AD Supplemental
Responses: First China AD Supplement, First Thailand AD Supplement,
and First Vietnam AD Supplement, dated February 2, 2024; Country-
Specific AD Supplemental Responses: Second China AD Supplement,
Second Thailand AD Supplement, and Second Vietnam AD Supplement,
dated February 8, 2024; and ``Petitioner's Responses to Supplemental
Questions--General Issues,'' dated February 8, 2024 (Second General
Issues Supplement).
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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 plates
from China, Thailand, 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
plates industry in the United States. Consistent with section 732(b)(1)
of the Act, the Petitions were 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 LTFV investigations.\6\
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\5\ The members of the American Paper Plate Coalition are
interested parties as defined under section 771(9)(C) of the Act.
\6\ See section on ``Determination of Industry Support for the
Petitions,'' infra.
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Periods of Investigation
Because the Petitions were filed on January 25, 2024, pursuant to
19 CFR 351.204(b)(1), the period of investigation (POI) for the
Thailand LTFV investigation is January 1, 2023, through December 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
LTFV investigations is July 1, 2023, through December 31, 2023.
Scope of the Investigations
The products covered by these investigations are paper plates from
China, Thailand, 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 January 29 and February 6, 2024, Commerce requested information
and clarification 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 February 2 and 8, 2024, 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 February 6
Memorandum.
\8\ See First General Issues Supplement at 5-11; see also Second
General Issues Supplement at 3-6.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\9\ Commerce will consider all scope
comments received from interested parties 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 March 5, 2024, which is 20 calendar days from the
signature date of this notice.\11\ Any rebuttal comments, which may
include factual information, must be filed by 5:00 p.m. ET on March 15,
2024, which is 10 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'').
\11\ See 19 CFR 351.303(b)(1).
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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 scope
comments must be filed simultaneously on the records of the concurrent
LTFV and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\12\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
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\12\ 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 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 plates 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 cost 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 plates, 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 March 5,
2024, which is 20 calendar days from the signature date of this
notice.\13\ Any rebuttal comments must be filed by 5:00 p.m. ET on
March 15, 2024, which is 10 calendar days from the initial comment
deadline. All comments and submissions to Commerce must be filed
[[Page 14048]]
electronically using ACCESS, as explained above, on the record of each
of the LTFV investigations.
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\13\ 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 U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC apply the same statutory definition regarding the domestic like
product,\14\ 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.\15\
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\14\ See section 771(10) of the Act.
\15\ 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 Algoma Steel Corp., Ltd. v. United
States, 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.\16\ Based on our analysis of the information
submitted on the record, we have determined that paper plates, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\17\
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\16\ See Petitions at Volume I (pages 11-13); see also First
General Issues Supplement at 17-18.
\17\ 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 Plates from the People's Republic of China, Thailand, 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 Plates from the People's
Republic of China, Thailand, and the Socialist Republic of Vietnam
(Attachment II). These checklists are dated concurrently with this
notice and 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 its
own shipments of the domestic like product in 2023 and compared this to
the estimated total 2023 shipments of the domestic like product for the
entire domestic industry.\18\ Because total industry production data
for the domestic like product for 2023 are not reasonably available to
the petitioner, and the petitioner has established that shipments are a
reasonable proxy for production data,\19\ we have relied on the data
provided by the petitioner for purposes of measuring industry
support.\20\
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\18\ See First General Issues Supplement at 12-14, 16, and
Attachments 2-4; see also Second General Issues Supplement at 7-8
and Attachment 1.
\19\ See Petitions at Volume I (page 4 and Exhibit I-2); see
also First General Issues Supplement at 12 and 14.
\20\ See Petitions at Volume I (pages 3-4); see also First
General Issues Supplement at 11-16 and Attachments 2-4; and Second
General Issues Supplement at 7-8 and Attachment 1. 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 Second General Issues Supplement, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the Petitions.\21\ 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).\22\ 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.\23\ 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.\24\ 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.\25\
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\21\ See Petitions at Volume I (pages 3-4); see also First
General Issues Supplement at 11-16 and Attachments 2-4; and Second
General Issues Supplement at 6-8 and Attachments 1-3. For further
discussion, see Attachment II of the Country-Specific AD Initiation
Checklists.
\22\ See Attachment II of the Country-Specific AD Initiation
Checklists; see also section 732(c)(4)(D) of the Act.
\23\ See Attachment II of the Country-Specific AD Initiation
Checklists.
\24\ Id.
\25\ 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, the petitioner alleges that
subject imports from China and Vietnam exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\26\
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\26\ See Petitions at Volume I (pages 15-16 and Exhibit I-8).
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With regard to Thailand, while the allegedly dumped imports do not
exceed the statutory requirements for negligibility,\27\ the petitioner
alleges and provides supporting evidence that: (1)
[[Page 14049]]
there is a reasonable indication that data obtained in the ITC's
investigation will establish that imports exceed the negligibility
threshold; \28\ and (2) there is the potential that imports from
Thailand will imminently exceed the negligibility threshold and,
therefore, are not negligible for purposes of a threat
determination.\29\ The petitioner's arguments regarding the limitations
of publicly available import data and the collection of scope-specific
import data in the ITC's investigations are consistent with the SAA.
Furthermore, the petitioner's arguments regarding the potential for
imports from Thailand to imminently exceed the negligibility threshold
are consistent with the statutory criteria for ``negligibility in
threat analysis'' under section 771(24)(A)(iv) of the Act, which
provides that imports shall not be treated as negligible if there is a
potential that subject imports from a country will imminently exceed
the statutory requirements for negligibility.
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\27\ Id. at 16-17 and Exhibits I-8 through I-10, I-12, and I-13;
see also First General Issues Supplement at 18-19.
\28\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994)
(SAA), at 857; see also Petitions at Volume I (pages 16-17 and
Exhibits I-8 through I-10); and First General Issues Supplement at
18-19.
\29\ See section 771(24)(A)(iv) of the Act; see also First
General Issues Supplement at 19.
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The petitioner contends that the industry's injured condition is
illustrated by the significant volume of subject imports; underselling
and price depression and/or suppression; loss of market share; decrease
in production volume and capacity utilization; and lost sales and
revenues.\30\ 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.\31\
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\30\ See Petitions at Volume I (pages 15-39 and Exhibits I-2, I-
3, and I-7 through I-35); see also First General Issues Supplement
at 18-19.
\31\ 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 Plates from the People's Republic of China,
Thailand, 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 LTFV investigations
of imports of paper plates from China, Thailand, 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, Thailand, and Vietnam, the petitioner based export price
(EP) on pricing information for sales, or offers for sale, of paper
plates produced in and exported from each country.\32\ For each
country, the petitioner made certain adjustments to U.S. price to
calculate a net ex-factory U.S. price, where applicable.\33\
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\32\ See Country-Specific AD Initiation Checklists.
\33\ Id.
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Normal Value \34\
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\34\ In accordance with section 773(b)(2) of the Act, for the
Thailand investigation, Commerce will request information necessary
to calculate the 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 Thailand, the petitioner stated that it was unable to obtain
home market or third country pricing information for paper plates to
use as a basis for NV.\35\ Therefore, for Thailand, the petitioner
calculated NV based on constructed value (CV).\36\ For further
discussion of CV, see the section ``Normal Value Based on Constructed
Value,'' below.
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\35\ See Thailand AD Initiation Checklist.
\36\ Id.
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Commerce considers China and Vietnam to be NME countries.\37\ 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 FOPs valued in a surrogate
market economy country in accordance with section 773(c) of the Act.
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\37\ 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); and 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.\38\ The petitioner provided
publicly available information from Malaysia to value all FOPs except
labor.\39\ Consistent with Commerce's recent practice in cases
involving Malaysia as a surrogate country,\40\ to value labor, the
petitioner provided labor statistics from another surrogate country,
Turkey.\41\ Based on the information provided by the petitioner, we
believe it is appropriate to use Malaysia as a surrogate country for
China to value all FOPs except labor and to value labor using labor
statistics from Turkey for initiation purposes.
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\38\ See China AD Initiation Checklist.
\39\ Id.
\40\ See, e.g., Certain Collated Steel Staples from the People's
Republic of China: Final Results of Antidumping Duty Administrative
Review; and Final Determination of No Shipments; 2021-2022, 88 FR
85242 (December 7, 2023), and accompanying Issues and Decision
Memorandum (IDM) at Comment 2; and Light-Walled Rectangular Pipe and
Tube from the People's Republic of China: Final Results of
Antidumping Duty Administrative Review, 88 FR 15671 (March 14,
2023), and accompanying IDM at Comment 2.
\41\ 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.\42\ The petitioner
provided publicly available information from Indonesia to value all
FOPs.\43\ Based on the information provided by the petitioner, we
believe it is appropriate to use Indonesia as a surrogate country for
Vietnam to value all FOPs for initiation purposes.
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\42\ See Vietnam AD Initiation Checklist.
\43\ 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 determination.
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 plates as a surrogate to value Chinese and
Vietnamese manufacturers' FOPs.\44\ Additionally, the petitioner
calculated factory overhead, selling, general, and administrative
expenses (SG&A), and profit based on the experience of a Malaysian and
an
[[Page 14050]]
Indonesian producer of comparable merchandise for China and Vietnam,
respectively.\45\
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\44\ See China AD Initiation Checklist; see also Vietnam AD
Initiation Checklist.
\45\ See China AD Initiation Checklist; see also Vietnam AD
Initiation Checklist. As noted above, for China, the petitioner
calculated labor using information specific to Turkey. See China AD
Initiation Checklist.
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Normal Value Based on Constructed Value
As noted above for Thailand, the petitioner stated that it was
unable to obtain home market or third-country prices for paper plates
to use as a basis for NV. Therefore, for Thailand, the petitioner
calculated NV based on CV.\46\
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\46\ See Thailand AD Initiation Checklist.
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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, financial expenses, and
profit.\47\ For Thailand, in calculating the cost of manufacturing, the
petitioner relied on the production experience and input consumption
rates of a U.S. producer of paper plates, valued using publicly
available information applicable to Thailand.\48\ In calculating SG&A,
financial expenses, and profit ratios, the petitioner relied on the
fiscal year 2022 financial statements of a producer of identical
merchandise in Thailand.\49\
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\47\ Id.
\48\ Id.
\49\ 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 plates from China, Thailand, 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 plates for each
of the countries covered by this initiation are as follows: (1) China--
154.57 to 178.80 percent; (2) Thailand--61.03 to 73.17 percent; and (3)
Vietnam--153.09 to 165.27 percent.\50\
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\50\ See Country-Specific AD Initiation Checklists.
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Initiation of LTFV Investigations
Based upon the examination of the Petitions and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating LTFV investigations to determine
whether imports of paper plates from China, Thailand, 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
Thailand
In the Petitions, the petitioner identified nine companies in
Thailand as producers/exporters of paper plates.\51\ Following standard
practice in LTFV investigations involving market economy countries, 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 U.S. Customs and Border Protection (CBP) data for
imports under the appropriate Harmonized Tariff Schedule of the United
States (HTSUS) subheading(s) listed in the ``Scope of the
Investigations,'' in the appendix.
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\51\ See Petitions at Volume I (page 9 and Exhibit I-5); see
also First General Issues Supplement at 3 and Attachment 1.
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On February 9, 2024, Commerce released CBP data on imports of paper
plates from Thailand under administrative protective order (APO) to all
parties with access to information protected by APO and indicated that
interested parties wishing to comment on CBP data and/or respondent
selection must do so within three business days of the publication date
of the notice of initiation of these investigations.\52\ Comments must
be filed electronically using ACCESS. An electronically filed document
must be received successfully in its entirety via ACCESS by 5:00 p.m.
ET on the specified deadline. Commerce will not accept rebuttal
comments regarding the CBP data or respondent selection.
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\52\ See Memorandum, ``Release of Data from U.S. Customs and
Border Protection,'' dated February 9, 2024.
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Interested parties must submit applications for disclosure under
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.
China and Vietnam
In the Petitions, the petitioner named 149 companies in China and
nine companies in Vietnam as producers and/or exporters of paper
plates.\53\ Our standard practice for respondent selection in AD
investigations involving NME countries is to select respondents based
on quantity and value (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
Petitions, Commerce will solicit Q&V information that can serve as a
basis for selecting exporters for individual examination in the event
that Commerce determines that the number is large and decides to limit
the number of respondents individually examined pursuant to section
777A(c)(2) of the Act. For Vietnam, because there are nine 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.
For China, because there are 149 Chinese producers and/or exporters
identified in the Petitions, Commerce has determined that it will issue
Q&V questionnaires to the largest producers and/or exporters in China
that are identified in the CBP data for which there is complete address
information on the record.\54\
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\53\ See Petitions at Volume I (page 9 and Exhibit I-5); see
also First General Issues Supplement at 3-4 and Attachment 1.
\54\ See Memorandum, ``Release of U.S. Customs and Border
Protection Data,'' dated February 9, 2024.
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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 plates 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. 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 February 28, 2024,
which is two weeks from the signature date of this notice. 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.
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.
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
[[Page 14051]]
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/Resources/nme/nme-sep-rate.html. The separate rate
application will be due 30 days after publication of this initiation
notice. Exporters and producers must file a timely separate rate
application if they want to be considered for individual examination.
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 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} hile 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.\55\
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\55\ See Enforcement and Compliance's Policy Bulletin No. 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 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 Petitions have been
provided to the governments of China, Thailand, and Vietnam via ACCESS.
To the extent practicable, we will attempt to provide a copy of the
public version of the Petitions to each exporter named in the
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 Petitions were filed, whether there is a reasonable
indication that imports of paper plates from China, Thailand, and/or
Vietnam are materially injuring, or threatening material injury to, a
U.S. industry.\56\ A negative ITC determination for any country will
result in the investigation being terminated with respect to that
country.\57\ Otherwise, these LTFV investigations will proceed
according to statutory and regulatory time limits.
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\56\ See section 733(a) of the Act.
\57\ 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 \58\ 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.\59\ 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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\58\ See 19 CFR 351.301(b).
\59\ 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, or as otherwise specified by
Commerce.\60\ 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, Commerce 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, standalone submission; under limited
[[Page 14052]]
circumstances we will grant untimely filed requests for the extension
of time limits, where we determine, based on 19 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.\61\
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\60\ 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.
\61\ 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.\62\
Parties must use the certification formats provided in 19 CFR
351.303(g).\63\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\62\ See section 782(b) of the Act.
\63\ 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.
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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 modified certain of its
requirements for serving documents containing business proprietary
information and has made additional clarifications and corrections to
its AD/CVD regulations.\64\
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\64\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
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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: February 14, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix
Scope of the Investigations
The merchandise subject to these investigations is certain paper
plates. Paper plates subject to these investigations may be cut from
rolls, sheets, or other pieces of paper and/or paper board. Paper
plates subject to these investigations have a depth up to and
including two (2.0) inches, as measured vertically from the base to
the top of the lip, or the edge if the plate has no lip. Paper
plates subject to these investigations may be uncolored, white,
colored, or printed. Printed paper plates subject to these
investigations may have any type of surface finish, and may be
printed by any means with images, text and/or colors on one or both
surfaces. Colored paper plates subject to this investigation may be
colored by any method, including but not limited to printing,
beater-dyeing, and dip-dyeing. Paper plates subject to these
investigations may be produced from paper of any type (including,
but not limited to, bamboo, straws, bagasse, hemp, kenaf, jute,
sisal, abaca, cotton inters and reeds, or from non-plant sources,
such as synthetic resin (petroleum)-based resins), may have any
caliper or basis weight, may have any shape or size, may have one or
more than one section, may be embossed, may have foil or other
substances adhered to their surface, and/or may be uncoated or
coated with any type of coating.
The paper plates subject to these investigations remain covered
by the scope of these investigations whether imported alone, or in
any combination of subject and non-subject merchandise. When paper
plates subject to these investigations are imported in combination
with non-subject merchandise, only the paper plates subject to these
investigations are subject merchandise.
The paper plates subject to these investigations include paper
plates matching the above description that have been finished,
packaged, or otherwise processed in a third country by performing
finishing, packaging, or processing that would not otherwise remove
the merchandise from the scope of the investigations if performed in
the country of manufacture of the paper plates. Examples of
finishing, packaging, or other processing in a third country that
would not otherwise remove the merchandise from the scope of the
investigations if performed in the country of manufacture of the
paper plates include, but are not limited to, printing, application
of other surface treatments such as coatings, repackaging,
embossing, and application of foil surface treatments.
Excluded from the scope of these investigations are paper plates
molded or pressed directly from paper pulp (including but not
limited to unfelted pulp), which are currently classifiable under
subheading 4823.70.0020 of the Harmonized Tariff Schedule of the
United States (HTSUS).
Also excluded from the scope of these investigations are
articles that otherwise would be covered but which exhibit the
following two physical characteristics: (a) depth (measured
vertically from the base to the top of the lip, or edge if no lip)
equal to or greater than 1.25 inches but less than two (2.0) inches,
and (b) a base not exceeding five (5.0) inches in diameter if round,
or not exceeding 20 square inches in area if any other shape.
Also excluded from the scope of these investigations are paper
bowls, paper buckets, and paper food containers with closeable lids.
Paper plates subject to these investigations are currently
classifiable under HTSUS subheading 4823.69.0040. Paper plates
subject to these investigations also may be classified under HTSUS
subheading 4823.61.0040. If packaged with other articles, the paper
plates subject to these investigations also may be classified under
HTSUS subheadings 9505.90.4000 and 9505.90.6000. While the HTSUS
subheading(s) are provided for convenience and customs purposes, the
written description of the subject merchandise is dispositive.
[FR Doc. 2024-03863 Filed 2-23-24; 8:45 am]
BILLING CODE 3510-DS-P