[Federal Register Volume 89, Number 68 (Monday, April 8, 2024)]
[Notices]
[Pages 24433-24435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07346]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-157]
Aluminum Lithographic Printing Plates From the People's Republic
of China: Preliminary Determination of Critical Circumstances, in Part,
in the Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
critical circumstances exist, in part, with respect to imports of
aluminum lithographic printing plates (printing plates) from certain
producers and exporters from the People's Republic of China (China).
DATES: Applicable April 8, 2024.
FOR FURTHER INFORMATION CONTACT: Ajay Menon, AD/CVD Operations, Office
IX, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-0208.
SUPPLEMENTARY INFORMATION:
Background
In response to a countervailing duty (CVD) petition filed on
September 28, 2023, Commerce published the initiation of a CVD
investigation on printing plates from China.\1\ Further, on March 1,
2024, Commerce published its affirmative Preliminary Determination.\2\
In the Preliminary Determination, we examined one participating
mandatory respondent, Fujifilm Printing Plate (China) Co., Ltd. (FFPS),
and assigned a second respondent which failed to participate, Shanghai
National Ink Co. Ltd. (Shanghai National), a rate based on adverse
facts available (AFA).\3\
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\1\ See Aluminum Lithographic Printing Plates from the People's
Republic of China: Initiation of Countervailing Duty Investigation,
88 FR 73313 (October 25, 2023) (Initiation Notice).
\2\ See Aluminum Lithographic Printing Plates from the People's
Republic of China: Preliminary Affirmative Countervailing Duty
Determination, and Alignment of Final Determination with Final
Antidumping Duty Determination, 89 FR 15134 (March 1, 2024)
(Preliminary Determination), and accompanying Preliminary
Determination Memorandum (PDM).
\3\ Id.
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On March 8, 2024, the petitioner, Eastman Kodak Company, filed a
timely allegation, pursuant to section 703(e)(1) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.206, that critical
circumstances exist with respect to imports of printing plates from
China.\4\ On March 14, 2024, FFPS filed comments on the petitioner's
critical circumstances allegation,\5\ to which the petitioner responded
on March 18, 2024.\6\
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\4\ See Petitioner's Letter, ``Petitioner's Allegation of
Critical Circumstances,'' dated March 8, 2024 (Critical
Circumstances Allegation).
\5\ See FFPS' Letter, ``FFPS Response to Critical Circumstances
Allegation,'' dated March 14, 2024 (FFPS' Critical Circumstances
Response).
\6\ See Petitioner's Letter, ``Petitioner's Comments on
FUJIJFILM Printing Plate (China) Co., Ltd.'s Response to Critical
Circumstances Allegation,'' dated March 18, 2024 (Petitioner's
Critical Circumstances Rebuttal Comments).
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In accordance with section 703(e)(1) of the Act and 19 CFR
351.206(c)(1) and (2)(ii), because the petitioner submitted its
critical circumstances allegation more than 30 days before the
scheduled date of the final determination, Commerce will make a
preliminary finding as to whether there is a reasonable basis to
believe or suspect that critical circumstances exist and will issue a
preliminary critical circumstances determination within 30 days after
the allegation is filed.
Critical Circumstances Allegation
The petitioner alleges that there was a massive increase of imports
of printing plates from China and provided monthly import data
comparing a base period of May 2023 through September 2023 to a
comparison period of October 2023 through February 2024.\7\ The
petitioner asserts that this comparison shows that imports of printing
plates from China increased by 56.10 percent,\8\ which is ``massive''
under 19 CFR 351.206(h)(2). The petitioner also alleges that there is a
reasonable basis to believe that there are subsidies in this
investigation which are inconsistent with the World Trade
Organization's Agreement on Subsidies and Countervailing Measures
Agreement (SCM Agreement).\9\
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\7\ See Critical Circumstances Allegation at Attachment 1.
\8\ Id. at 7.
\9\ Id. at 4.
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Critical Circumstances Analysis
Section 703(e)(1) of the Act provides that Commerce will
preliminarily
[[Page 24434]]
determine that critical circumstances exist in a CVD investigation if
there is a reasonable basis to believe or suspect that: (A) the alleged
countervailable subsidy is inconsistent with the SCM Agreement; \10\
and (B) there have been massive imports of the subject merchandise over
a relatively short period. Pursuant to 19 CFR 351.206(h)(2), imports
must increase by at least 15 percent during the ``relatively short
period'' to be considered ``massive,'' and 19 CFR 351.206(i) defines a
``relatively short period'' as normally being the period beginning on
the date the proceeding begins (i.e., the date the petition is filed)
and ending at least three months later.\11\ However, the regulations
also provide that if Commerce finds that importers, or exporters or
producers, had reason to believe, at some time prior to the beginning
of the proceeding, that a proceeding was likely, Commerce may consider
a period of not less than three months from the earlier time.\12\
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\10\ Commerce limits its critical circumstances findings to
those subsidies contingent upon export performance or use of
domestic over imported goods (i.e., those prohibited under Article 3
of the SCM Agreement). See, e.g., Final Affirmative Countervailing
Duty Determination and Final Negative Critical Circumstances
Determination: Carbon and Certain Alloy Steel Wire from Germany, 67
FR 55808, 55809-10 (August 30, 2002).
\11\ See 19 CFR 351.206.
\12\ See 19 CFR 351.206(i).
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Alleged Countervailable Subsidies Are Inconsistent With the SCM
Agreement
To determine whether an alleged countervailable subsidy is
inconsistent with the SCM Agreement, in accordance with section
703(e)(1)(A) of the Act, Commerce considered the evidence currently on
the record of this investigation. As discussed in the Preliminary
Determination, we applied AFA to find that the non-cooperating
mandatory respondent Shanghai National received countervailable
subsidies under the following programs which the record indicates are
export-contingent, rendering them inconsistent with the SCM Agreement:
Export Buyer's Credit from China Export-Import (Ex-Im) Bank, Export
Loans from State-Owned Banks, Export Seller's Credit from China Ex-Im
Bank, Development of Famous Brands and China World Top Brands, Foreign
Trade Development Fund Grants, and Export Assistance Grants.\13\
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\13\ See Preliminary Determination PDM at Appendix I.
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In the Preliminary Determination, we found that FFPS' unaffiliated
producer JRT received countervailable subsidies under the Foreign Trade
Development Fund Grants program during the POI and average useful life
period.\14\ As discussed in the Preliminary Determination, because the
Government of China failed to cooperate by not acting to the best of
its ability to respond to our requests for information regarding the
Foreign Trade Development Fund Grants program, we relied on sections
776(a)(1), (a)(2)(A)-(C), and 776(b) of the Act to find that this
program constitutes a financial contribution and meets the specificity
requirements of the Act.\15\ However, information from the petition
indicates that this program is export contingent.\16\ Thus, because we
find that the Foreign Trade Development Fund Grants program is export
contingent, we primarily find that the criterion under section
703(e)(1)(A) of the Act has been met for FFPS.\17\
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\14\ As discussed in the PDM, FFPS provided responses from
Huangshan Jinruitai Technology Co., Ltd., an unaffiliated producer
of subject merchandise and the parent of Zhejiang Jinruitai New
Material Co., Ltd., a trading company and producer of subject
merchandise (collectively, JRT). See Preliminary Determination PDM
at 2-3.
\15\ See Preliminary Determination PDM at 6-7.
\16\ Id. at 48; see also Checklist, ``Countervailing Duty
Investigation Initiation Checklist,'' dated October 18, 2023, at 16.
\17\ We disagree with FFPS that there is an error in Commerce's
attribution of the benefit JRT received under this program. See
FFPS' Critical Circumstances Response; see also Petitioner's
Critical Circumstances Rebuttal Comments. Commerce attributed the
benefit JRT received under this program in the manner intended;
thus, our attribution of JRT's benefits is a methodological
decision, not an error that would lead us to determine that the
benefits attributed to FFPS under this program are not measurable.
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Therefore, Commerce preliminarily determines for purposes of this
critical circumstances determination that there are subsidies in this
investigation that are inconsistent with the SCM Agreement.
Massive Imports
In determining whether there have been ``massive imports'' over a
``relatively short period,'' pursuant to section 703(e)(1)(B) of the
Act, Commerce normally compares the import volumes of the subject
merchandise for at least three months immediately preceding the filing
of the petition (i.e., the ``base period'') to a comparable period of
at least three months following the filing of the petition (i.e., the
``comparison period''). In this case, Commerce compared the import
volumes of subject merchandise, as provided by the cooperating
mandatory respondent FFPS, for the four months immediately preceding
and four months following the filing of the petition. Imports normally
will be considered massive when imports during the comparison period
have increased by 15 percent or more compared to imports during the
base period.\18\
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\18\ See 19 CFR 351.206(h)(2).
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Because the petition was filed on September 28, 2023, to determine
whether there was a massive surge in imports for FFPS, Commerce
compared the total volume of shipments during the period of June 2023
through September 2023 with the volume of shipments during the period
of October 2023 through January 2024.\19\ Based on this analysis, we
primarily determine that there was a massive surge in imports between
the base and comparison periods for FFPS.\20\
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\19\ See FFPS's Letter, ``Fujifilm's Response to Request for
Quantity & Value Data,'' dated March 19, 2024.
\20\ See Memorandum, ``Critical Circumstances Analysis,'' dated
concurrently with this memorandum at Attachment 1 (Critical
Circumstances Analysis Memo).
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For all other exporters and producers, in accordance with our
practice,\21\ we examined monthly shipment data for the same time
periods noted above using import data from Global Trade Atlas (GTA),
adjusted to remove FFPS' shipment data.\22\ After subtracting FFPS'
shipment data from the GTA data, we analyzed the overall shipment data
by comparing the base and comparison periods, respectively. Based on
this analysis, we find that there were no massive imports for all other
exporters and producers from China.\23\
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\21\ See Countervailing Duty Investigation of Tin Mill Products
from the People's Republic of China: Preliminary Determination of
Critical Circumstances, in Part, 88 FR 46738 (July 20, 2023).
\22\ Id.
\23\ Id.
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Finally, as explained in the Preliminary Determination,we
preliminarily applied AFA to Shanghai National because it failed to
cooperate in this proceeding.\24\ Therefore, for Shanghai National, we
preliminarily determine, in accordance with section 776(b) of the Act,
that there was a massive surge in imports between the base and
comparison periods.
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\24\ See Preliminary Determination PDM at 7.
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Conclusion
Based on the criteria and findings discussed above, we
preliminarily determine that critical circumstances exist with respect
to imports of printing plates from China produced or exported by FFPS
and Shanghai National. We preliminarily determine that critical
circumstances do not exist with respect to imports of printing plates
from China with respect to all other exporters and producers.
[[Page 24435]]
Final Critical Circumstances Determination
We will make a final critical circumstances determination in the
final CVD determination, which is currently scheduled for July 9, 2024.
Public Comment
Case briefs or other written comments related to this preliminary
determination of critical circumstances 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.\25\ 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.\26\
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\25\ 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).
\26\ 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.\27\
Further, we request that interested parties limit their public
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public 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 public 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).\28\
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\27\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\28\ See APO and Service Final Rule, 88 FR at 67069.
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Electronically filed documents must be received successfully in
their entirety by 5:00 p.m. Eastern Time on the due dates
established.\29\
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\29\ See 19 CFR 351.303(b)(1).
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Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, for FFPS and
Shanghai National, we intend to direct U.S. Customs and Border
Protection (CBP) to suspend liquidation of any unliquidated entries of
subject merchandise from the China entered, or withdrawn from warehouse
for consumption, on or after December 1, 2023, which is 90 days prior
to the date of publication of the Preliminary Determination in the
Federal Register. For such entries, CBP shall require a cash deposit
equal to the estimated preliminary subsidy rates established in the
Preliminary Determination. This suspension of liquidation will remain
in effect until further notice.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, we intend to notify
the ITC of this preliminary determination of critical circumstances.
This determination is issued and published pursuant to sections
703(f) and 777(i)(1) of the Act.
Dated: April 1, 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.
[FR Doc. 2024-07346 Filed 4-5-24; 8:45 am]
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