[Federal Register Volume 89, Number 126 (Monday, July 1, 2024)]
[Notices]
[Pages 54432-54434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14405]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-165]
Certain Paper Plates From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, Preliminary
Affirmative Determination of Critical Circumstances, in Part, and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain paper plates (paper plates) from the
People's Republic of China (China). The period of investigation (POI)
is January 1, 2023, through December 31, 2023. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable July 1, 2024.
FOR FURTHER INFORMATION CONTACT: Eliza DeLong or Sun Cho, AD/CVD
Operations, Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3878 or (202) 482-6458,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this countervailing duty (CVD)
investigation on February 21, 2024.\1\ On March 26, 2024, Commerce
postponed the preliminary determination until June 24, 2024.\2\
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\1\ See Certain Paper Plates from the People's Republic of China
and the Socialist Republic of Vietnam: Initiation of Countervailing
Duty Investigations, 89 FR 13043 (February 21, 2024) (Initiation
Notice).
\2\ See Certain Paper Plates from the People's Republic of China
and the Socialist Republic of Vietnam: Postponement of Preliminary
Determinations in the Countervailing Duty Investigations, 89 FR
20945 (March 26, 2024).
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For a complete description of events that followed the initiation
of this investigation, see the Preliminary Decision Memorandum.\3\ A
list of topics discussed in the Preliminary Decision Memorandum is
included as Appendix II to this notice. The Preliminary 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 Preliminary 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 Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Certain Paper Plates from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are paper plates from
China. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 89 FR at 13044.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce preliminarily 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
preliminary determination, see the Preliminary Decision Memorandum.
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available, and, because it finds that certain respondents and
the Government of China did not act to the best of their ability to
respond to Commerce's requests for information, it drew an adverse
inference where appropriate in selecting from among the facts otherwise
available.\7\ For further information, see the ``Use of Facts Otherwise
Available and Adverse Inferences'' section in the Preliminary Decision
Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination Critical Circumstances
In accordance with section 703(e)(1) of the Act, we preliminarily
find that critical circumstances exist with respect to imports of
subject merchandise from Fuzhou Hengli Paper Co., Ltd. (Fuzhou Hengli),
the companies who did not respond to our quantity and value (Q&V)
questionnaire (i.e., the non-responsive companies),\8\ and all other
producers and/or exporters. We also preliminarily find that critical
circumstances do not exist with respect to imports of subject
merchandise from Jinhua P&P Product Co., Ltd (Jinhua P&P). For a full
discussion of our preliminary critical circumstances determination, see
the ``Preliminary Critical Circumstances'' section of the Preliminary
Decision Memorandum.
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\8\ The companies that failed to respond to Commerce's Q&V
questionnaire are: (1) Ningbo Artcool Co., Ltd.; (2) Ningbo Fenghua
Yongfa Printing Stationery Co., Ltd.; (3) Zhejiang Kingsun Eco-Pack
Co., Ltd.; and (4) Zhejiang Lingrong Crafts Co., Ltd.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final CVD determination in this
investigation with the final determination in the concurrent
antidumping duty (AD) investigation of paper plates from China, based
on a request made by the petitioner.\9\ Consequently, the final CVD
determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
November 5, 2024, unless postponed.\10\
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\9\ See Petitioner's Letter, ``Petitioner's Request for
Alignment of Final Determinations with Deadline in Concurrent AD
Investigations,'' dated June 5, 2024.
\10\ See Certain Paper Plates from the People's Republic of
China, Thailand, and the Socialist Republic of Vietnam: Postponement
of Preliminary Determinations in the Less-Than-Fair-Value
Investigations, 89 FR 49833 (June 12, 2024).
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
rates that are zero, de minimis, or based entirely under section 776 of
the Act.
In this investigation, Commerce preliminarily calculated total net
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subsidy rates for Fuzhou Hengli and Jinhua P&P that are not zero, de
minimis, or based entirely on the facts otherwise available. Because
Commerce calculated individual estimated countervailable subsidy rates
for Fuzhou Hengli and Jinhua P&P that are not zero, de minimis, or
based entirely on the facts otherwise available, we have preliminarily
calculated the all-others rate using a weighted-average of the
individual estimated subsidy rates calculated for the examined
respondents using each company's publicly-ranged sales values.\11\
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\11\ See Memorandum, ``Calculation of Subsidy Rate for All
Others,'' dated concurrently with this notice.
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Rate for Non-Responsive Companies
Four potential exporters and/or producers of paper plates from
China did not respond to Commerce's Q&V questionnaire.\12\ We find
that, by not responding to the Q&V questionnaire, these companies
withheld requested information and significantly impeded this
proceeding. Thus, in reaching our preliminary determination, pursuant
to sections 776(a)(2)(A) and (C) of the Act, we are basing the CVD
subsidy rate for the non-responsive companies on facts otherwise
available.
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\12\ As noted above, these companies are: (1) Ningbo Artcool
Co., Ltd.; (2) Ningbo Fenghua Yongfa Printing Stationery Co., Ltd.;
(3) Zhejiang Kingsun Eco-Pack Co., Ltd.; and (4) Zhejiang Lingrong
Crafts Co., Ltd.
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We further preliminarily determine that an adverse inference is
warranted, pursuant to section 776(b) of the Act. By failing to submit
responses to Commerce's Q&V questionnaire, the non-responsive companies
did not cooperate to the best of their abilities in this investigation.
Accordingly, we preliminarily find that an adverse inference is
warranted to ensure that the non-responsive companies will not obtain a
more favorable result than had they fully complied with our request for
information. For more information on the application of adverse facts
available to the non-responsive companies, see ``Use of Facts Otherwise
Available and Adverse Inferences'' in the Preliminary Determination
Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate (percent
Company ad valorem)
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Fuzhou Hengli Paper Co., Ltd................... 11.53
Jinhua P&P Product Co., Ltd.................... 3.54
Ningbo Artcool Co., Ltd........................ * 313.14
Ningbo Fenghua Yongfa Printing Stationery Co., * 313.14
Ltd...........................................
Zhejiang Kingsun Eco-Pack Co., Ltd............. * 313.14
Zhejiang Lingrong Crafts Co., Ltd.............. * 313.14
All Others..................................... 10.64
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its 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).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation entered, or withdrawn from warehouse,
for consumption on or after the date of publication of this notice in
the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce
will instruct CBP to require a cash deposit equal to the rates
indicated above.
Section 703(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered; or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise produced and/or exported by all companies except Jinhua P&P
(i.e., Fuzhou Hengli, the non-responsive companies, and all other
producers and/or exporters). In accordance with section 703(e)(2)(A) of
the Act, for Fuzhou Hengli, the non-responsive companies, and all other
producers and/or exporters, the suspension of liquidation shall apply
to unliquidated entries of merchandise from the exporters/producers
identified in this paragraph that were entered, or withdrawn from
warehouse, for consumption on or after the date which is 90 days before
the publication of this notice.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments 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.\13\ Interested parties who submit case briefs or
rebuttal briefs in this proceeding must submit: (1) a table of contents
listing
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each issue; and (2) a table of authorities.\14\
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\13\ 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).
\14\ 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.\15\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the 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 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).\16\
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\15\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\16\ See APO and Service Final Rule, 88 FR at 67069.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce via ACCESS
within 30 days after the date of publication of this notice. Requests
should contain the party's name, address, and telephone number, the
number of participants and whether any participant is a foreign
national, and a list of the issues to be discussed. Oral presentations
at the hearing will be limited to issues raised in the briefs. If a
request for a hearing is made, parties will be notified of the time and
date for the hearing.\17\ Parties should confirm by telephone the date,
time, and location of the hearing two days before the scheduled date.
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\17\ See 19 CFR 351.310(d).
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U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination whether imports of paper
plates from China are materially injuring, or threaten material injury
to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: June 24, 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 merchandise subject to this investigation is certain paper
plates. Paper plates subject to this investigation may be cut from
rolls, sheets, or other pieces of paper and/or paper board. Paper
plates subject to this investigation 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 this investigation may be uncolored, white,
colored, or printed. Printed paper plates subject to this
investigation 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 this
investigation 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 this investigation remain covered by
the scope of this investigation whether imported alone, or in any
combination of subject and non-subject merchandise. When paper
plates subject to this investigation are imported in combination
with non-subject merchandise, only the paper plates subject to this
investigation are subject merchandise.
The paper plates subject to this investigation 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 investigation 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
investigation 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 this investigation 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 this investigation 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 this investigation are paper
bowls, paper buckets, and paper food containers with closeable lids.
Paper plates subject to this investigation are currently
classifiable under HTSUS subheading 4823.69.0040. Paper plates
subject to this investigation also may be classified under HTSUS
subheading 4823.61.0040. If packaged with other articles, the paper
plates subject to this investigation 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.
Appendix II--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Injury Test
IV. Preliminary Affirmative Determination of Critical Circumstances,
in Part
V. Analysis of China's Financial System
VI. Diversification of China's Economy
VII. Use of Facts Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation
[FR Doc. 2024-14405 Filed 6-28-24; 8:45 am]
BILLING CODE 3510-DS-P