[Federal Register Volume 89, Number 102 (Friday, May 24, 2024)]
[Notices]
[Pages 45841-45843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11476]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-555-002]


Certain Paper Shopping Bags From Cambodia: Final Affirmative 
Determination of Sales at Less Than Fair Value and Final Affirmative 
Determination of Critical Circumstances, In Part

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
certain paper shopping bags (paper bags) from Cambodia are being, or 
are likely to be, sold in the United States at less-than-fair value 
(LTFV). The period of investigation (POI) is April 1, 2022, through 
March 31, 2023.

DATES: Applicable May 24, 2024.

FOR FURTHER INFORMATION CONTACT: Charles Doss or Kyle Clahane, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4474 or (202) 482-1168, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On January 3, 2024, Commerce published in the Federal Register its 
preliminary affirmative determination in the LTFV investigation of 
paper bags from Cambodia, in which we also postponed the final 
determination until May 17, 2024.\1\ We invited interested parties to 
comment on the Preliminary Determination.
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    \1\ See Certain Paper Shopping Bags from Cambodia: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Preliminary Affirmative Determination of Critical Circumstances, in 
Part, Postponement of Final Determination, and Extension of 
Provisional Measures, 89 FR 325 (January 3, 2024) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum.\2\ The Issues and 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 Issues 
and Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \2\ See Memorandum, ``Decision Memorandum for the Final 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of Certain Paper Shopping Bags from Cambodia,'' dated concurrently 
with, and hereby adopted by, this notice (Issues and Decision 
Memorandum).
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Scope of the Investigation

    The products covered by this investigation are paper bags from 
Cambodia. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    During the course of this investigation, Commerce received scope 
comments from parties. Commerce issued a Preliminary Scope Decision

[[Page 45842]]

Memorandum to address these comments and set aside a period of time for 
parties to address scope issues in scope-specific case and rebuttal 
briefs.\3\ We received comments from interested parties on the 
Preliminary Scope Decision Memorandum, which we addressed in the Final 
Scope Decision Memorandum.\4\ We made no changes to the scope of the 
investigation from the scope published in the Preliminary 
Determination, as noted in Appendix I to this notice.
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    \3\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated December 27, 2023 (Preliminary Scope Decision Memorandum).
    \4\ See Memorandum, ``Final Scope Decision Memorandum,'' dated 
March 11, 2024 (Final Scope Decision Memorandum).
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Final Affirmative Determination of Critical Circumstances, in Part

    We continue find that that critical circumstances do not exist with 
respect to imports of paper bags from Cambodia for Nice Packaging 
(Cambodia) Co., Ltd. (Nice), UUPak, and all other producers and 
exporters, but do exist with respect to imports of paper bags from Pan 
Pacific. For a full description of the methodology and results of 
Commerce's critical circumstances analysis, see the Issues and Decision 
Memorandum.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), we conducted verifications of the sales and cost information 
submitted by Nice Packaging (Cambodia) Co., Ltd. (Nice) for use in our 
final determination.\5\ In addition, Commerce was unable to conduct an 
on-site verification of the information relied upon in making its final 
determination with respect to UUPak Company Limited (UUPak). However, 
from February 21 through 22, 2024, we took additional steps, in lieu of 
an on-site verification to verify the information relied upon in making 
this final determination, in accordance with section 782(i) of the Act, 
by conducting virtual verification of UUPak.\6\
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    \5\ See Memoranda, ``Verification of Nice Packaging (Cambodia) 
Co., Ltd. Sales Responses,'' dated March 26, 2024; and 
``Verification of the Cost Response of Nice Packing (Cambodia) Co., 
Ltd. in the Antidumping Duty Investigation of Paper Shopping Bags 
from Cambodia,'' dated March 28, 2024.
    \6\ See Memorandum, ``Verification of the Questionnaire 
Responses of UUPak Company Limited,'' dated March 15, 2024.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs submitted by 
interested parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of the issues addressed in the Issues 
and Decision Memorandum is attached as Appendix II to this notice.

Changes Since the Preliminary Determination

    We have made certain changes to the margin calculations for Nice 
since the Preliminary Determination. For a discussion of these changes, 
see the Issues and Decision Memorandum.\7\
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    \7\ See Memorandum, ``Nice Packaging (Cambodia) Co. Ltd. Final 
Analysis Memorandum,'' dated concurrently with this notice (Nice's 
Final Sales Analysis Memorandum).
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Use of Adverse Facts Available (AFA)

    As discussed in the Preliminary Determination, Commerce assigned to 
Pan Pacific Plastics Manufacturing, Inc. (Pan Pacific) an estimated 
weighted-average dumping margin on the basis of adverse facts available 
(AFA), pursuant to sections 776(a) and (b) of the Act.\8\ For the 
reasons explained in the Issues and Decision Memorandum, and consistent 
with Commerce's practice, as AFA, we assigned Pan Pacific the highest 
corroborated dumping margin alleged in the petition.\9\
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    \8\ See Preliminary Determination, 89 FR at 325.
    \9\ See Preliminary Determination PDM at 6-8.
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All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
not individually investigated shall be equal to the weighted average of 
the estimated weighted-average dumping margins established for 
individually investigated exporters and producers, excluding rates that 
are zero, de minimis, or determined entirely under section 776 of the 
Act.
    Commerce calculated an individual estimated weighted-average 
dumping margin for Nice. As explained in the Preliminary Determination 
PDM, Commerce continues to determine that, under section 772(a) of the 
Act, UUPak did not have any reviewable sales during the POI and, as 
such, has not calculated a final margin for UUPak.\10\ As a result, 
because we have only calculated one margin and that margin is not zero, 
de minimis, or based entirely on facts otherwise available, the 
estimated weighted-average dumping margin calculated for Nice is the 
margin assigned to UUPak and all other producers and exporters, 
pursuant to section 735(c)(5)(A) of the Act.
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    \10\ See Preliminary Determination PDM at, ``Treatment of 
UUPak's Sales.'' Our treatment of UUPak remains unchanged for 
purposes of this final determination.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                               Weighted
                                                                average
                      Producer/exporter                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Nice Packaging (Cambodia) Co., Ltd..........................        7.07
UUPak Company Limited.......................................        7.07
Pan Pacific Plastics Manufacturing, Inc.....................    * 248.81
All Others..................................................        7.07
------------------------------------------------------------------------
* Rate based on AFA.

Disclosure

    We intend to disclose the calculations performed in this final 
determination within five days of the date of publication of this 
notice in the Federal Register in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, for Nice, 
UUPak, and all-other producers/exporters, Commerce will instruct U.S. 
Customs and Border Protection (CBP) to continue to suspend liquidation 
of subject merchandise as described in Appendix I of this notice, which 
were entered, or withdrawn from warehouse, for consumption, on or after 
January 3, 2024, the date of publication in the Federal Register of the 
Preliminary Determination.
    In accordance with section 735(c)(4) of the Act, because Commerce 
continues to find that critical circumstances exist for Pan Pacific, we 
will instruct CBP to continue to suspend liquidation of all entries of 
subject merchandise, as described in Appendix I to this notice, which 
were entered, or withdrawn from warehouse for consumption on or after 
October 5, 2023, which is 90 days before the publication of the 
Preliminary Determination in the Federal Register, at the cash deposit 
rate indicated above.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), upon the publication of this notice, we will instruct CBP 
to require a cash deposit for estimated antidumping duties for such 
entries as follows: (1) the cash deposit rate for each respondent 
listed above will be equal to the company-specific estimated weighted-
average dumping margin determined in this final determination; (2) if 
the exporter is not the respondent identified above but the producer 
is, then the cash deposit rate will be equal to the company-specific 
estimated weighted-average dumping margin listed for the producer

[[Page 45843]]

of the subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters is the all-others estimated weighted-average 
dumping margin. These suspension of liquidation instructions will 
remain in effect until further notice.

U.S. International Trade Commission Notification

    In accordance with section 735(d) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determination as to whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of imports or sales (or the likelihood of 
sales) for importation of paper bags from Cambodia no later than 45 
days after this final determination. If the ITC determines that such 
injury does not exist, this proceeding will be terminated, all cash 
deposits posted will be refunded, and suspension of liquidation will be 
lifted. If the ITC determines that such injury does exist, Commerce 
will issue an antidumping duty order directing CBP to assess, upon 
further instruction by Commerce, antidumping duties on all imports of 
the subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed in the ``Continuation of Suspension of 
Liquidation'' section above.

Administrative Protective Order

    This notice will serve as the final reminder to parties subject to 
an administrative protective order (APO) of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and the terms of an APO is a violation 
which is subject to sanction.

Notification to Interested Parties

    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act, and 19 CFR 
351.210(c).

    Dated: May 17, 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 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 \11\ 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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    \11\ 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Final Affirmative Determination of Critical Circumstances, in 
Part
IV. Changes Since the Preliminary Determination
V. Discussion of the Issues
    Comment 1: Whether Commerce's Application of the Adverse Facts 
Available Rate to Pan Pacific is Unreasonable
    Comment 2: Whether Commerce Should Clarify the Scope
    Comment 3: Whether Commerce Should Alter Its Application of 
Constructed Value
    Comment 4: Whether Commerce Should Continue To Adjust Nice's 
Cost of Production
    Comment 5: Whether Commerce Should Make Changes to Nice's Final 
Margin Calculations
VI. Recommendation

[FR Doc. 2024-11476 Filed 5-23-24; 8:45 am]
BILLING CODE 3510-DS-P