[Federal Register Volume 89, Number 102 (Friday, May 24, 2024)]
[Notices]
[Pages 45829-45832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11478]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-153]
Certain Paper Shopping Bags From the People's Republic of China:
Final Affirmative Countervailing Duty Determination and Final
Affirmative Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers/exporters of
certain paper shopping bags (paper bags) from the People's Republic of
China (China). The period of investigation (POI) is January 1, 2022,
through December 31, 2022.
DATES: Applicable May 24, 2024.
FOR FURTHER INFORMATION CONTACT: Seth Brown, 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) 482-0029.
[[Page 45830]]
SUPPLEMENTARY INFORMATION:
Background
On November 6, 2023, Commerce published its Preliminary
Determination in the Federal Register and invited interested parties to
comment.\1\ Subsequently, on December 7, 2024, Commerce released its
Post-Preliminary Analysis.\2\ For a complete discussion of the events
that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\3\
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\1\ 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)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM); see also 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; Correction, 88 FR 80273
(November 17, 2023).
\2\ See Memorandum, ``Post-Preliminary Analysis Memorandum for
the Countervailing Duty Investigation of Certain Paper Shopping Bags
from the People's Republic of China,'' dated December 7, 2023 (Post-
Preliminary Analysis).
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Countervailing Duty
Investigation of Certain Paper Shopping 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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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.
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 interested 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 interested parties on the
Preliminary Scope Decision Memorandum, which we addressed in the Final
Scope Decision Memorandum.\5\ We did not make any changes to the scope
of the investigation from the scope published in the Preliminary
Determination, as noted in Appendix I.
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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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Verification
Commerce was unable to conduct on-site verification of the
information relied on in making its final determination in this
investigation. However, in December 2023 and January 2024, we took
additional steps in lieu of on-site verifications to verify the
information relied upon in making this final determination, in
accordance with section 782(i) of the Act, by conducting virtual
verifications of the mandatory respondents Fujian Nanwang Environment
Protection Scien-tech Co., Ltd. (Fujian Nanwang) and Dongzheng Paperbag
(DaLian) Factory (Dongzheng).
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by the parties in this investigation are
discussed in the Issues and Decision Memorandum. For a list of the
issues raised by interested parties and addressed in the Issues and
Decision Memorandum, see Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found to be countervailable, Commerce determines that
there is a subsidy, i.e., a financial contribution by an ``authority''
that gives rise to a benefit to the recipient, and that the subsidy is
specific.\6\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
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In making this final determination, Commerce relied, in part, on
facts otherwise available, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of adverse facts available (AFA), see the
Preliminary Determination PDM \7\ and the Issues and Decision
Memorandum at the section entitled ``Uses of Facts Available and
Application of Adverse Inferences.''
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\7\ See Preliminary Determination PDM at 7-28.
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Final Affirmative Determination of Critical Circumstances
In the Preliminary Determination, Commerce preliminary determined,
in accordance with sections 703(e)(1) and (b) of the Act, and 19 CFR
351.206, that critical circumstances exist with respect to imports of
subject merchandise for Dongzheng, Fujian Nanwang, the non-responsive
companies,\8\ and all other producers and/or exporters.\9\ For this
final determination, in accordance with section 705(a)(2) of the Act as
well as our analysis of comments received regarding our affirmative
preliminary determination of critical circumstances,\10\ Commerce
continues to find that critical circumstances exist with respect to
imports of subject merchandise for Dongzheng, Fujian Nanwang, the non-
responsive companies, and all other producers and/or exporters. For a
full description of the methodology and results of our critical
circumstances analysis, see the Issues and Decision Memorandum.
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\8\ The non-responsive companies are: (1) Bagitan Packaging; (2)
Changzhou Anjucheng; (3) Courage Packaging; (4) Evertrust Packaging;
(5) Geotegrity EcoPack; (6) GrandIntelligent; (7) Li & Fung; (8)
Qingdao Chenyu Packaging Co., Ltd.; (9) Shanghai Macolink Supply
Chain Management Co., Ltd.; (10) Shanghai Sanxi Paper Co., Ltd.;
(11) Xiamen C&D Pulp & Paper Co., Ltd.; (12) Xiamen Champion FMCG;
(13) Xiamen New Idea Packaging Co., Ltd.; and (14) Xiamen Wonderful
Bag Import and Export Co., Ltd.
\9\ See Preliminary Determination PDM at 47-49.
\10\ See Issues and Decision Memorandum at Comment 6.
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Changes Since the Preliminary Determination and Post-Preliminary
Analysis
Based on our review and analysis of the information at verification
and comments received from interested parties, we made changes to the
subsidy rate calculations for Fujian Nanwang. For a discussion of these
changes, see the Issues and Decision Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted-average
countervailable subsidy rates
[[Page 45831]]
established for exporters and/or producers individually investigation,
excluding any zero and de minimis countervailable subsidy rates, and
any rates determined entirely under section 776 of the Act. We continue
to calculate individual estimated countervailable subsidy rates for
Fujian Nanwang and Dongzheng that are not zero, de minimis, or based
entirely on facts otherwise available. Therefore, we calculated the
all-others rate using a simple average of the individual estimated
subsidy rates calculated for Fujian Nanwang and Dongzheng.\11\
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\11\ See Memorandum, ``Calculation of the All Others Rate,''
dated concurrently with this notice, at 1.
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Final Determination
Commerce determines that the following estimated countervailable
subsidy rate exist for the period January 1, 2022, through December 31,
2022: \12\
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\12\ As discussed in the Preliminary Determination, Commerce has
found the following companies to be cross-owned with Fujian Nanwang:
Zhuhai Zhongyue Paper Cup Container Co., Ltd.; Anhui Nanwang
Environmental Protection Technology Co., Ltd.; Xianghe Nanwang
Environmental Protection Technology Co., Ltd.; and Hubei Nanwang
Environmental Protection Technology Co., Ltd.
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Subsidy rate
Company (percent ad
valorem)
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Bagitan Packaging....................................... 172.36
Changzhou Anjucheng..................................... 172.36
Courage Packaging....................................... 172.36
Dongzheng Paperbag (DaLian) Factory..................... 40.76
Evertrust Packaging..................................... 172.36
Fujian Nanwang Environment Protection Scien-tech Co., 42.36
Ltd \12\...............................................
Geotegrity EcoPack...................................... 172.36
GrandIntelligent........................................ 172.36
Li & Fung............................................... 172.36
Qingdao Chenyu Packaging Co., Ltd....................... 172.36
Shanghai Macolink Supply Chain Management Co., Ltd...... 172.36
Shanghai Sanxi Paper Co., Ltd........................... 172.36
Xiamen C&D Pulp & Paper Co., Ltd........................ 172.36
Xiamen Champion FMCG.................................... 172.36
Xiamen New Idea Packaging Co., Ltd...................... 172.36
Xiamen Wonderful Bag Import and Export Co., Ltd......... 172.36
All Others.............................................. 41.56
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Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of publication of this notice in accordance with
19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, pursuant to sections
703(d)(1)(B) and (d)(2) of the Act, and because we preliminarily
determined that critical circumstances existed with respect to
Dongzheng, Fujian Nanwang, the non-responsive companies, and all other
producers and/or exporters, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of entries of subject
merchandise from China that were entered, or withdrawn from warehouse,
for consumption, on or after August 8, 2023, which is 90 days prior to
the date of the publication of the Preliminary Determination in the
Federal Register.\13\ In accordance with section 703(d) of the Act, we
instructed CBP to discontinue the suspension of liquidation of all
entries of subject merchandise entered or withdrawn from warehouse, on
or after March 5, 2024, but to continue the suspension of liquidation
of all entries of subject merchandise on or before March 4, 2024.
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\13\ See Preliminary Determination, 88 FR at 76180.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
(CVD) order, reinstate the suspension of liquidation under section
706(a) of the Act, and require a cash deposit of estimated
countervailing duties for entries of subject merchandise in the amounts
indicated above. If the ITC determines that material injury, or threat
of material injury, does not exist, this proceeding will be terminated,
and all estimated duties deposited or securities posted as a result of
the suspension of liquidation will be refunded or cancelled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of paper bags
in China. Because the final determination is affirmative, in accordance
with section 705(b) 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 our final
determination. In addition, we are making available to the ITC all non-
privileged and nonproprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance. If
the ITC determines that material injury or threat of material injury
does not exist, this proceeding will be terminated and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, CVDs on all imports of the subject
merchandise that are entered, or withdrawn, for consumption on or after
the effective date of the suspension of liquidation, as discussed above
in the ``Continuation of Suspension of Liquidation'' section.
[[Page 45832]]
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an 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/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 is issued and published in accordance with
sections 705(d) and 777(i) 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 fabric20 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.
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. Period of Investigation
IV. Final Critical Circumstances Determination
V. Subsidies Valuation Information
VI. Interest Rates and Benchmarks
VII. Use of Facts Available and Adverse Inferences
VIII. Analysis of Programs
IX. Discussion of the Issues
Comment 1: Whether Commerce Should Apply Adverse Facts Available
(AFA) to the Export Buyer's Credit Program (EBCP)
Comment 2: Whether the Income Tax Reductions for High and New
Technology Enterprises (HTNE) and Income Tax Deductions for Research
and Development Expenses Under the Enterprise Income Tax (EIT) Law
Are Specific
Comment 3: Whether To Apply AFA to Find that the Provision of
Kraft Paper for Less Than Adequate Remuneration (LTAR) is Specific
and Provides a Financial Contribution From the GOC
Comment 4: Whether Commerce Should Apply AFA to Fujian Nanwang's
Kraft Paper Purchases
Comment 5: Whether Commerce Should Use Fujian Nanwang's Total
Sales as the Denominator for the Provision of Kraft Paper for LTAR
Comment 6: Whether Commerce Should Reverse Its Preliminary
Affirmative Critical Circumstances Finding
Comment 7: Whether To Use Fujian Nanwang's Corrected Sales and
Electricity Usage Data
Comment 8: The Countervailability of the Provision of
Electricity for LTAR
Comment 9: Whether Policy Loans to the Paper Bags Industry
Constitute a Financial Contribution and Are Specific
Comment 10: Whether To Apply AFA to the Provision of Land-Use
Rights for LTAR in the Huidong Industrial Zone
Comment 11: Whether the Provision of Land-Use Rights Should Be
Treated as a Financial Contribution in the Form of Revenue Forgone
X. Recommendation
Appendix I: Other Subsidies Determined To Be Countervailable
Appendix II: Identification of Export-Specific Subsidies
Appendix III: AFA Rate Calculation
[FR Doc. 2024-11478 Filed 5-23-24; 8:45 am]
BILLING CODE 3510-DS-P