[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]



[[Page 54432]]

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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

[[Page 54433]]

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:

------------------------------------------------------------------------
                                                  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