[Federal Register Volume 89, Number 102 (Friday, May 24, 2024)]
[Notices]
[Pages 45823-45826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11477]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-152]


Certain Paper Shopping Bags From the People's Republic of China: 
Final Affirmative Determination of Sales at Less Than Fair Value and 
Final Affirmative Critical Circumstances Determination

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 the People's Republic of 
China (China) are being, or are likely to be, sold in the United States 
at less than fair value (LTFV). The period of investigation is October 
1, 2022, through March 31, 2023.

DATES: Applicable May 24, 2024.

FOR FURTHER INFORMATION CONTACT: Jinny Ahn or Tyler Weinhold, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0339 or (202) 482-1121, 
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 China, in which we also postponed the final 
determination until May 17, 2024.\1\ We invited parties to comment on 
the Preliminary Determination.\2\
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    \1\ See Certain Paper Shopping Bags from the People's Republic 
of China: Preliminary Affirmative Determinations of Sales at Less 
Than Fair Value, Preliminary Affirmative Determination of Critical 
Circumstances, Postponement of Final Determination, and Extension of 
Provisional Measures, 89 FR 344 (January 3, 2024) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ Id.
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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.\3\ The Issues and Decision Memorandum 
is a public document and is made available to the public 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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    \3\ See Memorandum, ``Decision Memorandum for the Final 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of Certain Paper Bags from the People's Republic of China,'' 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 
China. 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 
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.\4\ We received comments from parties on the Preliminary Scope 
Decision Memorandum, which we address in the Final Scope Decision 
Memorandum.\5\ 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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    \4\ See Memorandum, ``Less-Than-Fair-Value and Countervailing 
Duty Investigations of 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: Preliminary Scope Decision Memorandum,'' dated December 27, 
2023 (Preliminary Scope Decision Memorandum).
    \5\ See Memorandum, '' Less-Than-Fair Value and Countervailing 
Duty Investigations of 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: Final Scope Decision Memorandum,'' dated March 11, 2024 
(Final Scope Decision Memorandum).
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Final Affirmative Determination of Critical Circumstances

    We continue to find that critical circumstances exist for imports 
of paper bags from China for Dongzheng Paperbag (DaLian) Factory 
(Dongzheng), the non-selected separate rate companies, and the China-
wide entity pursuant to section 735(a)(3)(B) of Tariff

[[Page 45824]]

Act of 1930, as amended (the Act), and 19 CFR 351.206, we continue to 
find that that critical circumstances exist with respect to imports of 
paper bags exported by the non-selected separate rate companies and the 
China-wide entity (including Dongzheng). In addition, we continue to 
find that critical circumstances do not exist for UUPAK Co., Ltd. 
(UUPAK). For further discussion of this issue, see the Issues and 
Decision Memorandum.

Verification

    Commerce was unable to conduct an on-site verification of the 
information relied upon in making its final determination. However, 
from March 4 through 8, 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,\6\ by conducting virtual verification of UUPAK.
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    \6\ See Memorandum, ``Verification of the Sales Responses of 
UUPAK Company Limited,'' dated March 25, 2024.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs submitted by 
interested parties in briefs 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

    As explained below, we have found Dongzheng to be part of the 
China-wide entity.\7\ Additionally, based on our review and analysis of 
the comments received from interested parties, we made one change to 
the margin calculations for UUPAK.\8\ For a discussion of this change, 
see the Issues and Decision Memorandum.
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    \7\ See the ``Final Determination'' section of this notice, 
infra, at footnote 23.
    \8\ See Issues and Decision Memorandum at Comment 2.
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Treatment of Dongzheng Paperbag (DaLian) Factory

    In the Preliminary Determination, Commerce granted a separate rate 
to Dongzheng, as a cooperative mandatory respondent.\9\ As explained in 
further detail in the Issues and Decision Memorandum, Dongzheng 
notified Commerce that it would not continue to cooperate with this 
investigation and withdrew its participation from the scheduled 
verification.\10\ Therefore, because we were unable to verify 
Dongzheng's information, we have found that Dongzheng is part of the 
China-wide entity.\11\
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    \9\ See Preliminary Determination, 89 FR at 344-45.
    \10\ See Issues and Decision Memorandum at the ``Application of 
Facts Available'' section and Comment 1.
    \11\ See the ``Final Determination'' section of this notice, 
infra; see also Issues and Decision Memorandum at the ``China-Wide 
Rate'' section and Comment 1, for a full discussion.
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Application of Total of Adverse Facts Available With Respect to the 
China-Wide Entity

    Consistent with the Preliminary Determination,\12\ Commerce 
continues to find, pursuant to sections 776(a)(1) and (a)(2)(A)-(D) of 
the Act, that the use of facts available is warranted in determining 
the rate of the China-wide entity, which includes, as noted above, 
Dongzheng, as well as Qingdao Deepack Co., Ltd. (Qingdao Deepack), 
which submitted a separate rate application (SRA) but did not respond 
adequately to all of our requests for information.\13\ Furthermore, we 
continue to find that an adverse inference is warranted in selecting 
from the facts otherwise available, pursuant to section 776(b) of the 
Act and 19 CFR 351.308(a), because the China-wide entity failed to 
cooperate by not acting to the best of their ability to comply with 
Commerce's requests for information. For the final determination, 
consistent with the Preliminary Determination,\14\ as adverse facts 
available, we are applying Dongzheng's highest individual calculated 
dumping margin, 146.32 percent, to the China-wide entity, because it is 
a rate derived from information submitted on the record and achieves 
the right balance between the goal of inducing future cooperation by 
the uncooperative respondent and the rate not being punitive.\15\
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    \12\ See Preliminary Determination PDM at 14-17.
    \13\ See the ``Final Determination'' section of this notice, 
infra, at footnote 18.
    \14\ See Preliminary Determination, 89 FR at 344-45.
    \15\ See the ``Final Determination'' section of this notice, 
infra; see also Issues and Decision Memorandum at the ``China-Wide 
Rate'' section and Comment 1, for a full discussion.
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Separate Rates

    We preliminarily found the mandatory respondents Dongzheng and 
UUPAK to be eligible for a separate rate in the Preliminary 
Determination.\16\ No party commented on our preliminary separate rate 
determination with respect to UUPAK and we have no basis to otherwise 
reconsider this determination. Accordingly, we continue to find that 
UUPAK is eligible for a separate rate in the final determination.\17\ 
As explained above, because Dongzheng refused to participate in 
verification of its SRA, we, have denied Dongzheng separate rate 
status. In addition, no party commented on our decision in the 
Preliminary Determination to grant separate status to certain other 
respondents that we did not select for individual examination or on our 
preliminary determination to deny a separate rate to Qingdao Deepack, 
which failed to establish its eligibility for a separate rate by not 
complying with all of our requests for information. Accordingly, we 
have continued to treat Qingdao Deepack as a part of the China-wide 
entity.
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    \16\ See Preliminary Determination PDM at 12-13.
    \17\ See Issues and Decision Memorandum at the ``Separate 
Rates'' section for further discussion.
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    Further, generally, Commerce looks to section 735(c)(5)(A) of the 
Act, which provides instructions for calculating the all-others rate in 
an investigation, for guidance when calculating the rate for separate 
rate respondents which we did not individually examine. The statute 
further provides that, where all margins are zero, de minimis, or based 
entirely on facts available under section 776 of the Act, Commerce may 
use ``any reasonable method'' for assigning the rate to non-selected 
respondents.\18\ In this final determination, the only participating 
mandatory respondent (i.e., UUPAK) has received a weighted-average 
dumping margin which is not zero, de minimis, or based entirely on 
facts available. Therefore, in accordance with section 735(c)(5)(A) of 
the Act, we have assigned UUPAK's calculated weighted-average dumping 
margin (i.e., 73.05 percent) to the non-examined separate rate 
respondents.
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    \18\ See section 735(c)(5)(B) of the Act.
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Combination Rates

    Consistent with the Initiation Notice,\19\ Preliminary 
Determination, and Policy Bulletin 05.1,\20\ Commerce calculated 
combination rates for the sole respondent that is eligible for a 
separate rate in this investigation.
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    \19\ 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, 
41594 (June 27, 2023) (Initiation Notice).
    \20\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' dated April 5, 2005 (Policy Bulletin 05.1), available 
on Commerce's website at https://enforcement.trade.gov/policy/bull05-1.pdf.
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Final Determination

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

[[Page 45825]]



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                                                                                                   Cash deposit
                                                                                       Weighted-  rate (adjusted
                                                                                        average     for export
                    Exporter                                   Producer                 dumping       subsidy
                                                                                        margin      offset(s))
                                                                                       (percent)     (percent)
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UUPAK Co., Ltd..................................  Tianjin Haishun Printing & Packing       73.05           62.07
                                                   Co., Ltd.
Fujian Eco Packaging Co., Ltd...................  Fujian Hongkai Packaging Co., Ltd.       73.05           62.07
Fujian Eco Packaging Co., Ltd...................  Fujian Yihe Packaging Co., Ltd....       73.05           62.07
Fujian Eco Packaging Co., Ltd...................  Guangdong Union Eco-Packaging            73.05           62.07
                                                   Scien-Tech Co., Ltd.
Fujian Eco Packaging Co., Ltd...................  Xiamen Huide Eco-friendly Paper          73.05           62.07
                                                   Bags Co., Ltd.
Fujian Eco Packaging Co., Ltd...................  Xiamen Jihong Technology Co., Ltd.       73.05           62.07
Fujian Nanwang Environment Protection Scien-tech  Anhui Nanwang Environmental              73.05           61.65
 Co., Ltd.                                         Protection Technology Co., Ltd.
Fujian Nanwang Environment Protection Scien-tech  Fujian Nanwang Environment               73.05           61.65
 Co., Ltd.                                         Protection Scien-tech CO., LTD.
Fujian Nanwang Environment Protection Scien-tech  Hubei Nanwang Environmental              73.05           61.65
 Co., Ltd.                                         Protection Scien-tech Co., Ltd.
Fujian Nanwang Environment Protection Scien-tech  Xianghe Nanwang Environmental            73.05           61.65
 Co., Ltd.                                         Protection Technology Co., Ltd.
Fujian Nanwang Environment Protection Scien-tech  Zhuhai Zhongyue Paper CUP                73.05           61.65
 Co., Ltd.                                         Container Co., Ltd.
Grand Intelligent Limited.......................  Ruichuang Limited.................       73.05           62.07
Max Fortune Industrial Ltd......................  Winner Printing and Packaging (He        73.05           62.07
                                                   Yuan) Ltd.
Ningbo Beiheng Import & Export Company Limited..  Wenzhou Weijie Packing Co., Ltd...       73.05           62.07
Shanghai Miho Package & Product Co., Ltd........  Zhejiang Shengxiang Industrial           73.05           62.07
                                                   Co., Ltd.
Union Packaging Group Limited...................  Guangdong Union Eco-Packaging            73.05           62.07
                                                   Scien-Tech Co., Ltd.
Wuxi Hualite Metal Plastic Products Co., Ltd....  Wuxi Hualite Paper Products Co.,         73.05           62.07
                                                   Ltd.
Xiamen Bag Imp. & Exp. Co., Ltd.................  Xiamen CYR Green-Tech Co., Ltd....       73.05           62.07
Xiamen Huide Xiesheng Packaging Co., Ltd........  Xiamen Huide Eco-Friendly Paper          73.05           62.07
                                                   Bags Co., Ltd.
Xiamen Jihong Technology Co., Ltd...............  Xiamen Jihong Technology Co., Ltd.       73.05           62.07
Xiamen Joy Supply Chain Co., Ltd................  Fujian Huian Nice Paper Products         73.05           62.07
                                                   Co., Ltd.
Xiamen Joy Supply Chain Co., Ltd................  Xiamen THINKER Packaging Products        73.05           62.07
                                                   Co., Ltd.
Xiamen Nice Packaging Products Co., Ltd.........  Fujian Huian Nice Paper Products         73.05           62.07
                                                   Co., Ltd.
Xiamen Nice Packaging Products Co., Ltd.........  Xiamen THINKER Packaging Products        73.05           62.07
                                                   Co., Ltd.
China-wide Entity \21\..........................  ..................................    * 146.32          135.77
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* Rate based on AFA.

Disclosure
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    \21\ As explained above, we have not granted a separate rate to 
Dongzheng or Qingdao Deepack; thus, the China-wide entity includes 
Dongzheng and Qingdao Deepack. See the Issues and Decision 
Memorandum for additional details.
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    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)(4) of the Act, because Commerce 
continues to find that critical circumstances exist for the non-
selected separate rate companies and the China-wide entity, we 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, entered, or withdrawn from warehouse, for consumption, 
on or after October 5, 2023, which is 90 days prior to the date of the 
date of publication of the affirmative Preliminary Determination in the 
Federal Register. For UUPAK, in accordance with section 735(c)(1)(B) of 
the Act, we will instruct CBP to continue to suspend liquidation of all 
entries of certain paper bags from China, 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.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce makes an affirmative 
determination for domestic subsidy pass-through or export subsidies, 
Commerce offsets the calculated estimated weighted-average dumping 
margin by the appropriate rates. Commerce has continued to adjust the 
cash deposit rate for the China-wide entity for export subsidies in the 
companion CVD investigation by the appropriate export subsidy rate as 
indicated in the above chart.\22\ However, suspension of liquidation of 
provisional measures in the companion CVD case has been discontinued; 
\23\ therefore, we are not instructing CBP to collect cash deposits 
based upon the adjusted estimated weighted-average dumping margin for 
those export subsidies at this time.
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    \22\ See Memorandum, ``Final Determination Analysis,'' dated 
concurrently with this notice, for more information.
    \23\ See Certain Paper Shopping Bags From the People's Republic 
of China: Preliminary Affirmative Determination of Countervailable 
Subsidies, Preliminary Affirmative Determination of Critical 
Circumstances, and Alignment of Final Determination With Final 
Antidumping Duty Determination, 88 FR 76180 (November 6, 2023); see 
also section 703(d) of the Act, which states that the provisional 
measures may not be in effect for more than four months, which in 
the companion CVD case is 120 days after the publication of the 
preliminary determination, or October 24, 2023.
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    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), we will instruct CBP to require a cash deposit for such 
entries of merchandise equal to the amount by which the normal value 
exceeds the U.S. price as follows: (1) for the producer/exporter 
combinations listed in the table above, the cash deposit rate is equal 
to the estimated

[[Page 45826]]

weighted-average dumping margin listed for that combination in the 
table; (2) for all combinations of Chinese producers/exporters of 
subject merchandise that have not established eligibility for their own 
separate rates, the cash deposit rate will be equal to the estimated 
weighted-average dumping margin established for the China-wide entity; 
and (3) for all third country exporters of subject merchandise not 
listed in the table above, the cash deposit rate is the cash deposit 
rate applicable to the Chinese producer/exporter combination (or China-
wide entity) that supplied that third-country exporter. 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, we will notify the 
U.S. International Trade Commission (ITC) of our final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding 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 of paper bags 
from China no later than 45 days after this final determination. If the 
ITC determines that material injury or threat of material injury does 
not exist, the proceeding will be terminated and all cash deposits will 
be refunded or canceled, 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 that are entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section.

Administrative Protective Order

    This notice will serve as the final reminder to the 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 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 in 
accordance with 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 Assistance 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 \24\ 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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    \24\ 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. Application of Facts Available and Use of Adverse Inference
IV. China-Wide Rate
V. Final Affirmative Determination of Critical Circumstances
VI. Changes Since the Preliminary Determination
VII. Discussion of the Issues
    Comment 1: Whether To Adjust the China-Wide Rate
    Comment 2: Whether To Adjust the Paper Surrogate Value (SV)
    Comment 3: Whether To Conduct a Seasonality Analysis as Part of 
the Critical Circumstances Analysis
VIII. Recommendation

[FR Doc. 2024-11477 Filed 5-23-24; 8:45 am]
BILLING CODE 3510-DS-P