[Federal Register Volume 89, Number 165 (Monday, August 26, 2024)]
[Notices]
[Pages 68395-68397]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19069]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-163]


Certain Glass Wine Bottles From the People's Republic of China: 
Final Affirmative Countervailing Duy 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 and exporters 
of certain glass wine bottles (wine bottles) from the People's Republic 
of China (China). The period of investigation is January 1, 2022, 
through December 31, 2022.

DATES: Applicable August 26, 2024.

FOR FURTHER INFORMATION CONTACT: Preston Cox, Scarlet Jaldin, or 
Theodora Mattei, 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) 482-5041, (202) 482-4275, or (202) 482-4834, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 28, 2024, Commerce published the Preliminary Determination 
in the Federal Register and invited interested parties to comment.\1\ 
Subsequently, on July 23, 2024, Commerce issued its Post-Preliminary 
Analysis.\2\ For a complete description of the events that followed the 
Preliminary Determination, see the Issues and Decision Memorandum.\3\ 
The Issues and 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 Issues and Decision Memorandum can 
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \1\ See Certain Glass Wine Bottles from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Preliminary Affirmative Determination of Critical Circumstances, 89 
FR 47533 (June 3, 2024) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Post-Preliminary Decision Memorandum for 
the Countervailing Duty Investigation of Certain Glass Wine Bottles 
from the People's Republic of China,'' dated July 23, 2024 (Post-
Preliminary Analysis).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Countervailing Duty 
Investigation of Certain Glass Wine Bottles from the People's 
Republic of China,'' dated concurrently with, and herby adopted by, 
this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are wine bottles from 
China. For a complete description of the scope of this investigation, 
see Appendix I.

[[Page 68396]]

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 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, ``Preliminary Scope Decision Memorandum,'' 
dated May 28, 2024 (Preliminary Scope Decision Memorandum).
    \5\ See Memorandum, ``Final Scope Decision Memorandum,'' dated 
concurrently with this notice (Final Scope Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs that were submitted by 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 to this notice.

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; 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, see the Preliminary 
Determination \7\ and the Issues and Decision Memorandum at the section 
entitled ``Use of Facts Otherwise Available and Application of Adverse 
Inferences.''
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    \7\ See Preliminary Determination PDM at 8-36.
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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 June and July 2024, we took additional steps 
in lieu of on-site verification to verify the information relied upon 
in making this final determination, in accordance with section 782(i) 
of the Act, by conducting virtual verification of Shandong Changyu 
Glass Co., Ltd. (Shandong Changyu).\8\ Yantai Prime Packaging Co., Ltd. 
(YPP) notified Commerce of its intent not to participate in a virtual 
verification.\9\
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    \8\ See Memorandum, ``Report on Verification of Shandong Changyu 
Glass Co., Ltd. and Its Affiliates,'' dated July 15, 2024.
    \9\ See YPP's Letter, ``Notification of Non-Participation,'' 
dated June 18, 2024.
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Changes Since the Preliminary Determination and Post-Preliminary 
Analysis

    Based on our review and analysis of the information received at 
verification, for this final determination, we made certain changes to 
the countervailable subsidy rate calculations for Shandong Changyu. For 
a discussion of these changes, see the Issues and Decision Memorandum.

Final Affirmative Determination of Critical Circumstances

    Pursuant to sections 705(a)(2), 776(a), and 776(b) of the Act, and 
19 CFR 351.206, Commerce finds that critical circumstances exist with 
respect to imports of wine bottles from China for Shandong Changyu, 
YPP, all other producers and/or exporters, and the non-responsive 
companies. For further information on Commerce's critical circumstances 
analysis, see the section ``Final Critical Circumstances 
Determination'' in the accompanying 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 established for exporters and/or 
producers individually examined, excluding any rates that are zero, de 
minimis, or based entirely under section 776 of the Act. In this 
investigation, Commerce calculated an individual estimated 
countervailable subsidy rate for Shandong Changyu, the only 
individually-examined exporter/producer in this investigation for which 
Commerce is calculating an estimated countervailable subsidy rate. 
Because the only individually calculated rate is not zero, de minimis, 
or based entirely on facts otherwise available, the estimated 
countervailable subsidy rate calculated for Shandong Changyu is the 
rate assigned to all other producers and exporters, pursuant to section 
705(c)(5)(A)(i) of the Act.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                            Subsidy rate
                          Company                            (percent ad
                                                              valorem)
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Shandong Changyu Glass Co., Ltd.\10\......................         21.31
Boliva International Limited..............................      * 212.58
Bright Glassware..........................................      * 212.58
Shandong Dingxin Electronic...............................      * 212.58
Wenden Wensheng Glass Co., Ltd............................      * 212.58
Wuixi Hua Zhong Glass Co. Ltd.............................      * 212.58
Xiamen Jane Jonson Co. Ltd................................      * 212.58
Yamamura Glass Qinhuangdao................................      * 212.58
Yantai Prime Packaging Co., Ltd...........................      * 212.58
Zibo Regal Glass Products Co. Ltd.........................      * 212.58
All Others................................................         21.31
------------------------------------------------------------------------
* Rate based on adverse facts available.\11\

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this final 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 the 
Federal Register, in accordance with 19 CFR 351.224(b).
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    \10\ Commerce finds that Shandong Changyu is cross-owned with 
Yantai Changyu Glass Co., Ltd.; Yantai Changyu Investment Co., Ltd.; 
Yantai Changyu Glass Printing Co., Ltd.; Yantai Changyu Fuel Co., 
Ltd.; and Yantai Changyu Storage and Transportation Co., Ltd.
    \11\ See Memorandum, ``AFA Calculation Memorandum for the Final 
Determination,'' dated concurrently with this notice.
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Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to collect cash deposits and 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after June 3, 2024, the date of 
publication of the Preliminary Determination in the

[[Page 68397]]

Federal Register. Because we preliminarily determined that critical 
circumstances existed with respect to Shandong Changyu, all other 
producers and/or exporters, and the non-responsive companies, we 
instructed CBP to suspend such entries on or after March 5, 2024, which 
is 90 days prior to the date of the publication of the Preliminary 
Determination in the Federal Register.
    Pursuant to section 705(c)(1)(B)(ii) of the Act, and 19 CFR 
351.210(d) where appropriate, Commerce will instruct CBP to require a 
cash deposit equal to the estimated individual countervailable subsidy 
rate or the estimated all-others rate, as indicated in the chart above, 
effective on the date of publication of this final determination.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, and require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise in the amounts indicated above, 
in accordance with section 706(a) of the Act. 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, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of wine bottles 
from China. As Commerce's final determination is affirmative, in 
accordance with section 705(b) of the Act, the ITC will determine, 
within 45 days, whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports of wine bottles from China. In addition, we are making 
available to the ITC all non-privileged and non-proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under administrative protective order 
(APO), without the written consent of the Assistant Secretary for 
Enforcement and Compliance.

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 the 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 pursuant to sections 
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: August 19, 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 covered by the investigation is certain narrow 
neck glass bottles, with a nominal capacity of 740 milliliters 
(25.02 ounces) to 760 milliliters (25.70 ounces); a nominal total 
height between 24.8 centimeters (9.75 inches) to 35.6 centimeters 
(14 inches); a nominal base diameter between 4.6 centimeters (1.8 
inches) to 11.4 centimeters (4.5 inches); and a mouth with an outer 
diameter of between 25 millimeters (.98 inches) to 37.9 millimeters 
(1.5 inches); frequently referred to as a ``wine bottle.'' In scope 
merchandise may include but is not limited to the following shapes: 
Bordeaux (also known as ``Claret''), Burgundy, Hock, Champagne, 
Sparkling, Port, Provence, or Alsace (also known as ``Germanic''). 
In scope glass bottles generally have an approximately round base 
and have shapes including but not limited to, straight-sided, a 
tapered slope from shoulder (i.e., the sloping part of the bottle 
between the neck and the body) to base, or a long neck with sloping 
shoulders to a wider base. The scope includes glass bottles, whether 
or not clear, whether or not colored, with or without a punt (i.e., 
an indentation on the underside of the bottle), and with or without 
design or functional enhancements (including, but not limited to, 
embossing, labeling, or etching). In scope merchandise is made of 
non-``free blown'' glass, i.e., in scope merchandise is produced 
with the use of a mold and is distinguished by mold seams, joint 
marks, or parting lines. In scope merchandise is unfilled and may be 
imported with or without a closure, including a cork, stelvin (screw 
cap), crown cap, or wire cage and cork closure.
    Excluded from the scope of the investigation are: (1) glass 
containers made of borosilicate glass, meeting United States 
Pharmacopeia requirements for Type 1 pharmaceutical containers; and 
(2) glass containers without a ``finish'' (i.e., the section of a 
container at the opening including the lip and ring or collar, 
threaded or otherwise compatible with a type of closure, including 
but not limited to a cork, stelvin (screw cap), crown cap, or wire 
cage and cork closure).
    Glass bottles subject to the investigation are specified within 
the Harmonized Tariff Schedule of the United States (HTSUS) under 
subheading 7010.90.5019. The HTSUS subheading is provided for 
convenience and customs purposes only. The written description of 
the scope of the investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Facts Otherwise Available and Application of Adverse 
Inferences
V. Final Critical Circumstances Determination
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Discussion of the Issues
    Comment 1: Whether Commerce Should Find that Shandong Changyu 
Used the Export Buyer's Credit (EBC) Program as Adverse Facts 
Available (AFA)
    Comment 2: Whether Commerce Should Find Shandong Changyu 
Uncreditworthy
    Comment 3: Whether Commerce Should Find Countervailable the 
Provision of Natural Gas for Less Than Adequate Remuneration (LTAR) 
Program
    Comment 4: Whether Commerce Should Conduct an On-site 
Verification
    Comment 5: Whether Commerce Should Attribute to Shandong Changyu 
Countervailable Subsidies Received by Shandong Changyu's Cross-Owned 
Affiliates
    Comment 6: Whether the Application of AFA to the Provision of 
Electricity for LTAR is Appropriate
    Comment 7: Whether Commerce Should Find, based on AFA, that 
Shandong Changyu Used the Silica Sand for LTAR Program
    Comment 8: Whether Commerce Should Find, based on AFA, that 
Shandong Changyu Used Other Subsidies
    Comment 9: Whether Commerce Should Apply Total AFA to Shandong 
Changyu for Its Reporting of Policy Loans to the Wine Bottles 
Industry Program
IX. Recommendation

[FR Doc. 2024-19069 Filed 8-23-24; 8:45 am]
BILLING CODE 3510-DS-P