[Federal Register Volume 89, Number 223 (Tuesday, November 19, 2024)]
[Notices]
[Pages 91331-91335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26888]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-555-006]
Paper File Folders From Cambodia: Initiation of Countervailing
Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable November 12, 2024.
FOR FURTHER INFORMATION CONTACT: Shane Subler, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230; telephone: (202) 482-6241.
SUPPLEMENTARY INFORMATION:
The Petition
On October 21, 2024, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
paper file folders from Cambodia filed in proper form on behalf of the
Coalition of Domestic Folder Manufacturers (the petitioner),\1\ the
members of which are domestic producers of paper file folders.\2\ The
CVD Petition was accompanied by antidumping duty (AD) petitions
concerning imports of paper file folders from Cambodia and Sri
Lanka.\3\
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\1\ The members of the Coalition of Domestic Folder
Manufacturers (the Coalition) are: Smead Manufacturing Company, Inc.
(Smead) and TOPS Products LLC (TOPS).
\2\ See Petitioners' Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties,'' dated October 21, 2024
(Petitions).
\3\ Id.
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Between October 25 and 28, 2024, Commerce requested supplemental
[[Page 91332]]
information pertaining to certain aspects of the Petition.\4\ Between
October 29 and November 1, 2024, the petitioner filed timely responses
to these requests for additional information.\5\
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\4\ See Commerce's Letter, ``Supplemental Questions,'' dated
October 25, 2024; see also Commerce's Letter, ``Supplemental
Questions,'' dated October 28, 2024.
\5\ See Petitioner's Letter, ``Response of Petitioner to Volume
I Supplemental Questionnaire,'' dated October 29, 2024 (General
Issues Supplement); see also Petitioner's Letter, ``Response of
Petitioner to Volume III Supplemental Questionnaire,'' dated
November 1, 2024.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of
Cambodia (GOC) is providing countervailable subsidies, within the
meaning of sections 701 and 771(5) of the Act, to producers of paper
file folders from Cambodia, and that such imports are materially
injuring, or threatening material injury to, the domestic industry
producing paper file folders in the United States. Consistent with
section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged
programs on which we are initiating a CVD investigation, the Petition
was accompanied by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(F) of the Act.\6\ Commerce also finds that
the petitioner demonstrated sufficient industry support with respect to
the initiation of the requested CVD investigation.\7\
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\6\ Smead and TOPS are interested parties under section
771(9)(C) of the Act, while the Coalition is an interested party
under section 771(9)(F) of the Act.
\7\ See section on ``Determination of Industry Support for the
Petition,'' infra.
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Period of Investigation
Because the Petition was filed on October 21, 2024, the period of
investigation for the CVD investigation is January 1, 2023, through
December 31, 2023.\8\
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\8\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation
The products covered by this investigation are paper file folders
from Cambodia. For a full description of the scope of this
investigation, see the appendix to this notice.
Comments on the Scope of the Investigation
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\9\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information, all such
factual information should be limited to public information.\10\ To
facilitate preparation of its questionnaire, Commerce requests that
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on December
2, 2024, which is 20 calendar days from the signature date of this
notice. Any rebuttal comments, which may include factual information,
must be filed by 5:00 p.m. ET on December 12, 2024, which is 10
calendar days from the initial comment deadline.
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\9\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
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Commerce requests that any factual information that parties
consider relevant to the scope of the investigation be submitted during
that time period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigation may be relevant, the party must contact Commerce and
request permission to submit the additional information. All scope
comments must be filed simultaneously on the records of the concurrent
AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\11\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
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\11\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014), for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at https://access.trade.gov/help.aspx and a handbook
can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
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Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the GOC of the receipt of the Petition and provided an
opportunity for consultations with respect to the Petition.\12\ The GOC
did not request consultations.
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\12\ See Commerce's Letter, ``Invitation for Consultation to
Discuss the Countervailing Duty Petition,'' dated October 22, 2024.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC apply the same statutory definition regarding the domestic like
product,\13\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\14\
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\13\ See section 771(10) of the Act.
\14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United
States, 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like,
[[Page 91333]]
most similar in characteristics and uses with, the article subject to
an investigation under this title.'' Thus, the reference point from
which the domestic like product analysis begins is ``the article
subject to an investigation'' (i.e., the class or kind of merchandise
to be investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\15\ Based on our analysis of the information
submitted on the record, we have determined that paper file folders, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\16\
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\15\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Checklist, ``Countervailing Duty Investigation Initiation Checklist:
Paper File Folders from Cambodia,'' dated concurrently with, and
hereby adopted by, this notice (Cambodia CVD Initiation Checklist),
at Attachment II, Analysis of Industry Support for the Antidumping
and Countervailing Duty Petitions Covering Paper File Folders from
Cambodia and Sri Lanka (Attachment II). This checklist is on file
electronically via ACCESS.
\16\ See Attachment II of the Cambodia CVD Initiation Checklist.
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In determining whether the petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided the
2023 total shipment values of the domestic like product for U.S.
producers that support the Petitions and compared this to the estimated
total shipment values of the domestic like product for the entire
domestic industry.\17\ Because total industry production data for the
domestic like product for 2023 are not reasonably available to the
petitioner, and the petitioner has established that shipments are a
reasonable proxy for production data,\18\ we have relied on data
provided by the petitioner for purposes of measuring industry
support.\19\
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\17\ Id.
\18\ Id.
\19\ For further discussion, see Attachment II of the Cambodia
CVD Initiation Checklist.
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Our review of the data provided in the Petition, the General Issues
Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\20\ First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\21\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
702(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\22\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 702(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition.\23\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.\24\
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\20\ Id.
\21\ Id.; see also section 702(c)(4)(D) of the Act.
\22\ See Attachment II of the Cambodia CVD Initiation Checklist.
\23\ Id.
\24\ Id.
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Injury Test
Because Cambodia is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from Cambodia materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefiting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioner
alleges that subject imports from Cambodia individually exceed the
negligibility threshold provided for under section 771(24)(A) of the
Act.\25\ Further, in the instance of a CVD petition, section 771(24)(B)
of the Act provides that imports of subject merchandise from developing
and least developed countries must exceed the negligibility threshold
of four percent. The petitioner also demonstrates that imports from
Cambodia, which has been designated as a least developed country under
section 771(36)(B) of the Act, exceed the negligibility threshold of
four percent.\26\
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\25\ For further information regarding negligibility and the
injury allegation, see Cambodia CVD Initiation Checklist at
Attachment III, Analysis of Allegations and Evidence of Material
Injury and Causation for the Antidumping and Countervailing Duty
Petitions Covering Paper File Folders from Cambodia and Sri Lanka
(Attachment III).
\26\ Id.
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The petitioner contends that the industry's injured condition is
illustrated by the significant and increasing volume of subject
imports; reduced market share; underselling and price depression and/or
suppression; lost sales and revenues; and declines in the domestic
industry's production, U.S. shipments, net sales, and financial
performance.\27\ We assessed the allegations and supporting evidence
regarding material injury, threat of material injury, causation,
cumulation, as well as negligibility, and we have determined that these
allegations are properly supported by adequate evidence and meet the
statutory requirements for initiation.\28\
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\27\ Id.
\28\ Id.
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Initiation of CVD Investigation
Based upon the examination of the Petition and supplemental
responses, we find that they meet the requirements of section 702 of
the Act. Therefore, we are initiating a CVD investigation to determine
whether imports of paper file folders benefit from countervailable
subsidies conferred by the GOC. In accordance with section 703(b)(1) of
the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determination no later than 65 days after the date of this
initiation.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on 12 of the 12
programs alleged by the petitioner. For a full discussion of the basis
for our decision to initiate on each program, see the Cambodia CVD
Initiation Checklist. A public version of the initiation checklist for
this investigation is available on ACCESS.
Respondent Selection
In the Petition, the petitioner identified four companies in
Cambodia as producers and/or exporters of paper file folders.\29\
Commerce intends to follow its standard practice in CVD investigations
and calculate company-specific subsidy rates in this investigation. In
the event that Commerce determines that the number
[[Page 91334]]
of companies is large and it cannot individually examine each company
based on Commerce's resources, Commerce normally selects mandatory
respondents in CVD investigations using U.S. Customs and Border
Protection (CBP) entry data for U.S. imports under the appropriate
Harmonized Tariff Schedule of the United States (HTSUS) subheading(s)
listed in the ``Scope of the Investigations'' in the appendix.
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\29\ See Petition at Volume I (page 18 and Exhibit I-18); see
also General Issues Supplement at 1-2 and Exhibit I-S1.
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On November 7, 2024, Commerce released CBP data on imports of paper
file folders from Cambodia under administrative protective order (APO)
to all parties with access to information protected by APO and
indicated that interested parties wishing to comment on CBP data and/or
respondent selection must do so within three business days of the
publication date of the notice of initiation of this investigation.\30\
Comments must be filed electronically using ACCESS. An electronically-
filed document must be received successfully in its entirety via ACCESS
by 5:00 p.m. ET on the specified deadline. Commerce will not accept
rebuttal comments regarding the CBP data or respondent selection.
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\30\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated November 7, 2024.
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Interested parties must submit applications for disclosure under
administrative protective order (APO) in accordance with 19 CFR
351.305(b). Instructions for filing such applications may be found on
Commerce's website at https://www.trade.gov/administrative-protective-orders.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the GOC via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the Petition to each
exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of paper file folders from Cambodia are
materially injuring, or threatening material injury to, a U.S.
industry.\31\ A negative ITC determination will result in the
investigation being terminated.\32\ Otherwise, this CVD investigation
will proceed according to statutory and regulatory time limits.
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\31\ See section 703(a)(1) of the Act.
\32\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors of production under 19 CFR 351.408(c) or
to measure the adequacy of remuneration under 19 CFR 351.511(a)(2);
(iv) evidence placed on the record by Commerce; and (v) evidence other
than factual information described in (i)-(iv). Section 351.301(b) of
Commerce's regulations requires any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted \33\ and, if the information is
submitted to rebut, clarify, or correct factual information already on
the record, to provide an explanation identifying the information
already on the record that the factual information seeks to rebut,
clarify, or correct.\34\ Time limits for the submission of factual
information are addressed in 19 CFR 351.301, which provides specific
time limits based on the type of factual information being submitted.
Interested parties should review the regulations prior to submitting
factual information in this investigation.
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\33\ See 19 CFR 351.301(b).
\34\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301, or as otherwise specified by
Commerce.\35\ For submissions that are due from multiple parties
simultaneously, an extension request will be considered untimely if it
is filed after 10:00 a.m. ET on the due date. Under certain
circumstances, Commerce may elect to specify a different time limit by
which extension requests will be considered untimely for submissions
which are due from multiple parties simultaneously. In such a case, we
will inform parties in a letter or memorandum of the deadline
(including a specified time) by which extension requests must be filed
to be considered timely. An extension request must be made in a
separate, standalone submission; under limited circumstances we will
grant untimely filed requests for the extension of time limits, where
we determine, based on 19 CFR 351.302, that extraordinary circumstances
exist. Parties should review Commerce's regulations concerning the
extension of time limits and the Time Limits Final Rule prior to
submitting factual information in this investigation.\36\
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\35\ See 19 CFR 351.302.
\36\ See 19 CFR 351.301; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final
Rule), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\37\
Parties must use the certification formats provided in 19 CFR
351.303(g).\38\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\37\ See section 782(b) of the Act.
\38\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in this investigation should ensure that they meet the requirements of
19 CFR 351.103(d) (e.g., by filing the required letters of appearance).
Note that Commerce has amended certain of its requirements pertaining
to the service of documents in 19 CFR 351.303(f).\39\
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\39\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
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This notice is issued and published pursuant to sections 702 and
777(i) of the Act, and 19 CFR 351.203(c).
Dated: November 12, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The products within the scope of this investigation are file
folders consisting primarily of paper, paperboard, pressboard, or
other cellulose material, whether coated or
[[Page 91335]]
uncoated, that has been folded (or creased in preparation to be
folded), glued, taped, bound, or otherwise assembled to be suitable
for holding documents. The scope includes all such folders,
regardless of color, whether or not expanding, whether or not
laminated, and with or without tabs, fasteners, closures, hooks,
rods, hangers, pockets, gussets, or internal dividers. The term
``primarily'' as used in the first sentence of this scope means 50
percent or more of the total product weight, exclusive of the weight
of fasteners, closures, hooks, rods, hangers, removable tabs, and
similar accessories, and exclusive of the weight of the packaging.
Subject folders have the following dimensions in their folded
and closed position: lengths and widths of at least 8 inches and no
greater than 17 inches, regardless of depth.
The scope covers all varieties of folders, including but not
limited to manila folders, hanging folders, fastener folders,
classification folders, expanding folders, pockets, jackets, and
wallets.
Excluded from the scope are:
mailing envelopes with a flap bearing one or more
adhesive strips that can be used permanently to seal the entire
length of a side such that, when sealed, the folder is closed on all
four sides;
binders, with two or more rings to hold documents in
place, made of paperboard or pressboard encased entirely in plastic;
binders consisting of a front cover, back cover, and
spine, with or without a flap; to be excluded, a mechanism with two
or more metal rings must be included on or adjacent to the interior
spine;
non-expanding folders with a depth exceeding 2.5 inches
and that are closed or closeable on the top, bottom, and all four
sides (e.g., boxes or cartons);
expanding folders that have: (1) 13 or more pockets;
(2) a flap covering the top; (3) a latching mechanism made of
plastic and/or metal to close the flap; and (4) an affixed plastic
or metal carry handle;
folders that have an outer surface (other than the
gusset, handles, and/or closing mechanisms, if any) that is covered
entirely with fabric, leather, and/or faux leather;
fashion folders, which are defined as folders with all
of the following characteristics: (1) plastic lamination covering
the entire exterior of the folder; (2) printing, foil stamping,
embossing (i.e., raised relief patterns that are recessed on the
opposite side), and/or debossing (i.e., recessed relief patterns
that are raised on the opposite side), covering the entire exterior
surface area of the folder; (3) at least two visible and printed or
foil stamped colors (other than the color of the base paper), each
of which separately covers no less than 10 percent of the entire
exterior surface area; and (4) patterns, pictures, designs, or
artwork covering no less than thirty percent of the exterior surface
area of the folder;
portfolios, which are folders having: (1) a width of at
least 16 inches when open flat; (2) no tabs or dividers; and (3) one
or more pockets that are suitable for holding letter size documents
and that cover at least 15 percent of the surface area of the
relevant interior side or sides; and
report covers, which are folders having: (1) no tabs,
dividers, or pockets; and (2) one or more fasteners or clips, each
of which is permanently affixed to the center fold, to hold papers
securely in place.
Imports of the subject merchandise are provided for under
Harmonized Tariff Schedule of the United States (HTSUS) category
4820.30.0040. Subject imports may also enter under other HTSUS
classifications. While the HTSUS subheading is provided for
convenience and customs purposes, the written description of the
scope of this investigation is dispositive.
[FR Doc. 2024-26888 Filed 11-18-24; 8:45 am]
BILLING CODE 3510-DS-P