[Federal Register Volume 89, Number 126 (Monday, July 1, 2024)]
[Notices]
[Pages 54429-54431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14406]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-840]


Certain Paper Plates From the Socialist Republic of Vietnam: 
Preliminary Affirmative Countervailing Duty Determination, Preliminary 
Affirmative Determination of Critical Circumstances, in Part, and 
Alignment of Final Determination With 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 
Socialist Republic of Vietnam (Vietnam) during the period of 
investigation, 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: Mary Kolberg, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1785.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). On February 21, 
2024, Commerce published the notice of initiation of this 
countervailing duty (CVD) investigation.\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 the 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 Socialist Republic of Vietnam,'' 
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 
Vietnam. 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 
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 Vietnam 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 of Critical Circumstances, in 
Part

    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 Vietnam for Xie Li Vietnam International 
Company (Xie Li), all other producers and exporters, and companies that 
were not responsive to Commerce's quantity and value (Q&V) 
questionnaire,\8\ but do not exist with respect to Go-Pak Paper 
Products Vietnam Co., Ltd. (Go-Pak). For a full discussion of our 
preliminary critical circumstances determination, see the ``Preliminary 
Affirmative Determination of Critical Circumstances, in Part'' section 
of the Preliminary Decision Memorandum.
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    \8\ See Commerce's Letter, ``Quantity and Value Questionnaire,'' 
dated February 15, 2024.
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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 Vietnam, 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, ``Request for Alignment of Final 
Determination 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.

[[Page 54430]]

    In this investigation, Commerce calculated an individual estimated 
countervailable subsidy rate for Go-Pak that is not zero, de minimis, 
or based entirely under section 776 of the Act. As further discussed in 
the Preliminary Decision Memorandum, the individual estimated 
countervailable subsidy rate for Xie Li is based entirely upon section 
776 of the Act. Therefore, Commerce is using the individual estimated 
subsidy rate calculated for Go-Pak as the all-others rate.

Rate for Non-Responsive Companies

    Four potential exporters and/or producers of paper plates from 
Vietnam did not respond to Commerce's Q&V questionnaire and Xie Li did 
not provide information requested in the Initial Questionnaire (i.e., 
the non-responsive companies).\11\ 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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    \11\ The companies that failed to respond to Commerce's Q&V 
questionnaire are: (1) Innovative Sonic Vietnam International; (2) 
Ningbo Changya Plastic Vietnam Company; (3) Ningbo Changya Plastic 
Vietnam; and (4) SCG Vietnam.
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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 ability 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 Decision 
Memorandum.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                  Subsidy rate (percent
                    Company                            ad valorem)
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Go-Pak Paper Products Vietnam Co., Ltd.........                     5.48
Innovative Sonic Vietnam International.........                 * 237.65
Ningbo Changya Plastic Vietnam Company.........                 * 237.65
Ningbo Changya Plastic Vietnam.................                 * 237.65
SCG Vietnam....................................                 * 237.65
Xie Li Vietnam International Company Limited...                 * 237.65
All Others.....................................                     5.48
------------------------------------------------------------------------
* Rate based on facts available with adverse inferences.

Disclosure

    Commerce intends to disclose its calculations and analysis 
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 sections 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 the non-responsive companies 
and all other producers and/or exporters. In accordance with section 
703(e)(2)(A) of the Act, for 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.\12\ Interested parties who submit case briefs or 
rebuttal briefs in this proceeding must submit: (1) a table of contents 
listing each issue; and (2) a table of authorities.\13\
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    \12\ 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).
    \13\ See 19 351.309(c)(2) and (d)(2).

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[[Page 54431]]

    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.\14\ 
Further, we request that interested parties limit their public 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the public 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).\15\
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    \14\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \15\ See APO and Service Final Rule.
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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 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, Commerce intends to hold the hearing at a time and 
date to be determined. Parties should confirm by telephone the date, 
time, and location of the hearing two days before the scheduled date.

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 Vietnam are materially injuring the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 703(f) and 777(i) 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 these investigations is certain paper 
plates. Paper plates subject to these investigations may be cut from 
rolls, sheets, or other pieces of paper and/or paper board. Paper 
plates subject to these investigations 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 these investigations may be uncolored, white, 
colored, or printed. Printed paper plates subject to these 
investigations 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 these 
investigations 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 these investigations remain covered 
by the scope of these investigations whether imported alone, or in 
any combination of subject and non-subject merchandise. When paper 
plates subject to these investigations are imported in combination 
with non-subject merchandise, only the paper plates subject to these 
investigations are subject merchandise.
    The paper plates subject to these investigations 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 investigations 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 
investigations 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 these investigations 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 these investigations 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 these investigations are paper 
bowls, paper buckets, and paper food containers with closeable lids.
    Paper plates subject to these investigations are currently 
classifiable under HTSUS subheading 4823.69.0040. Paper plates 
subject to these investigations also may be classified under HTSUS 
subheading 4823.61.0040. If packaged with other articles, the paper 
plates subject to these investigations 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. Use of Facts Available and Adverse Inferences
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Recommendation

[FR Doc. 2024-14406 Filed 6-28-24; 8:45 am]
BILLING CODE 3510-DS-P