[Federal Register Volume 90, Number 90 (Monday, May 12, 2025)]
[Notices]
[Pages 20153-20156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-08305]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-845]
Thermoformed Molded Fiber Products From the Socialist Republic of
Vietnam: Preliminary Affirmative Determination of Sales at Less Than
Fair Value, Postponement of Final Determination and Extension of
Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that thermoformed molded fiber products from the Socialist
Republic of Vietnam (Vietnam) are being, or are likely to be, sold in
the United States at less than fair value (LTFV). The period of
investigation is April 1, 2024, through September 30, 2024. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable May 12, 2025.
FOR FURTHER INFORMATION CONTACT: Zachary Shaykin, AD/CVD Operations,
Office IV, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2638.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on November 4,
2024.\1\ On March 4, 2025, Commerce postponed the preliminary
determination of this investigation, and the revised deadline is now
May 6, 2025.\2\
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\1\ See Thermoformed Molded Fiber Products from the People's
Republic of China and the Socialist Republic of Vietnam: Initiation
of Less-Than-Fair-Value Investigations, 89 FR 87551 (November 4,
2024) (Initiation Notice); see also Thermoformed Molded Fiber
Products from the People's Republic of China and the Socialist
Republic of Vietnam: Initiation of Less-Than-Fair-Value
Investigations; Correction, 89 FR 91330 (November 19, 2024).
\2\ See Thermoformed Molded Fiber Products from the Socialist
Republic of Vietnam: Postponement of Preliminary Determinations of
Antidumping Duty Investigations, 90 FR 11153 (March 4, 2025).
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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 included 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 in the Less-Than-Fair-Value Investigation
of Thermoformed Molded Fiber Products 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 product covered by this investigation is thermoformed molded
fiber products 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 (scope).\5\ On November 25, 2024,
interested parties submitted comments on the scope of this
investigation and, on December 5, 2024, the American Molded Fiber
Coalition (the petitioners) responded to these scope comments.\6\ For a
summary of the product coverage comments and rebuttal responses
submitted to the record for this investigation and accompanying
discussion and analysis of all comments timely received, see the
Preliminary Scope Decision Memorandum.\7\ Commerce is preliminarily
modifying the scope language as it appeared in the Initiation Notice.
See the revised scope in Appendix I to this 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 87552.
\6\ See Eco-Products, PBC's Letter, ``Scope Comments,'' dated
November 25, 2024; see also World Centric's Letter, ``World Centric
Scope Comments,'' dated November 25, 2024; Target General
Merchandise, Inc.'s Letter, ``Scope Comments on Behalf of Target
General Merchandise, Inc.,'' dated November 25, 2024; and
Petitioners' Letter, ``Petitioners' Response to Scope Comments,''
dated December 5, 2024.
\7\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of Thermoformed Molded Fiber Products from the
People's Republic of China and the Socialist Republic of Vietnam:
Preliminary Scope Decision Memorandum,'' dated concurrently with
this notice (Preliminary Scope Decision Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Because Vietnam is a non-
market economy (NME), within the meaning of section 771(18) of the Act,
Commerce has calculated normal value in accordance with section 773(c)
of the Act. In addition, Commerce has relied on partial adverse facts
available under sections 776(a) and (b) of the Act for Vietnam Yuzhan
Packaging Technology Company Limited (Yuzhan). For a full description
of the methodology underlying Commerce's preliminary determination, see
the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\8\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\9\
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\8\ See Initiation Notice, 89 FR at 87554-87555.
\9\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at https://enforcement.trade.gov/policy/bull05-1.pdf.
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Separate Rates
We preliminarily granted a separate rate to a certain respondent
that we did not select for individual examination.\10\ In calculating
the rate for non-individually examined separate rate respondents in an
NME LTFV investigation, Commerce normally looks to section 735(c)(5)(A)
of the Act, which pertains to the calculation of the all-others rate in
a market economy LTFV investigation, for guidance. Pursuant to section
735(c)(5)(A) of the Act, normally
[[Page 20154]]
this rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins those companies individually
examined, excluding any margins that are zero, de minimis, or based
entirely under section 776 of the Act.
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\10\ See Preliminary Decision Memorandum for additional details.
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In this investigation, Commerce calculated an individual estimated
weighted-average dumping margin for Yuzhan that is not zero, de
minimis, or based entirely on facts otherwise available. Therefore, we
are preliminarily determining the dumping margin for the non-examined,
separate rate company based on the calculated rate of the sole
mandatory respondent, Yuzhan, in accordance with section 735(c)(5)(A)
of the Act. See the table below in the ``Preliminary Determination''
section of this notice.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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\11\ The companies that will receive the Vietnam-wide rate
because they did not respond to Commerce's quantity and value
questionnaire and/or provide a separate rate application are: (1) HC
Packaging Asia (Industrial Park); (2) Honha Eco Pulp Viet Nam Paper
Tray; (3) Pulp Tray, Martin Vietnam Co. Ltd.; (4) Vietnam Yuhua
Packaging Technology Co., Ltd.; (5) Zhong Xin Ya Tai Viet Nam Co.,
Ltd.; and (6) Cong Ty TNHH Cong Nghe Bao Bi Yuzhan.
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Estimated Cash deposit
weighted- rate (adjusted
Producer Exporter average for Subsidy
dumping margin Offsets)
(percent) (percent)
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Vietnam Yuzhan Packaging Technology Company Vietnam Yuzhan Packaging 3.86 0.76
Limited. Technology Company Limited.
Ningbo Changya Plastic (Vietnam) Co., Ltd..... Ningbo Changya Plastic (Vietnam) 3.86 0.76
Co., Ltd.
Ningbo Changya Plastic (Vietnam) Co., Ltd..... Changya Newmaterial Technology 3.86 0.76
Co., Ltd.
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Vietnam-Wide Entity \11\ * 260.56 211.60
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* This rate is based on facts available with adverse inferences.
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted average amount by which normal value
exceeds U.S. price, as indicated in the chart above as follows: (1) for
the producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
Vietnamese producers/exporters of merchandise under consideration that
have not established eligibility for their own separate rates, the cash
deposit rate will be equal to the estimated weighted-average dumping
margin established for the Vietnam-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the
table above, the cash deposit rate is the cash deposit rate applicable
to the Vietnamese producer/exporter combination (or the Vietnam-wide
entity) that supplied that third-country exporter.
Should the final estimated weighted-average dumping margin be zero
or de minimis for the producer/exporter combinations identified above,
entries of merchandise from these producer/exporter combinations will
be excluded from the order. Such exclusion(s) will not be applicable to
merchandise exported to the United States by any other producer/
exporter combinations or by third-country exporters that sourced from
the excluded producer/exporter combination(s).
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted
rates may be found in the ``Preliminary Determination'' section's chart
of estimated weighted-average dumping margins, above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
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
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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.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify information relied upon in making its final determination.
Public Comment
All interested parties are invited to comment on Commerce's
Preliminary Scope Decision Memorandum in scope case and scope rebuttal
briefs. The deadline for interested parties to submit scope case briefs
is 30 days after the issuance of the Preliminary Scope Decision
Memorandum. Scope rebuttal briefs, limited to issues raised in the
scope case briefs, may be submitted no later than seven days after the
deadline for the scope case briefs. Scope case and rebuttal briefs must
be filed simultaneously, via ACCESS, on the records of the LTFV and CVD
investigations of thermoformed molded fiber products from the People's
Republic of China and Vietnam.
Case briefs or other written comments, excluding scope comments,
may be submitted to the Assistant Secretary for Enforcement and
Compliance no later than seven days after the date on which the last
final verification report is issued in this investigation.\12\ A
timeline for the submission of case briefs and written comments will be
provided to interested parties at a later date. 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 or rebuttal briefs in this proceeding must
submit: (1) a table of contents listing each issue; and (2) a table of
authorities.\14\
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\12\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for
general filing requirements).
\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 67077.
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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
(1) the party's name, address, and telephone number; (2) the number of
participants and whether any participant is a foreign national; and (3)
a list of the issues to be discussed. If a request for a hearing is
made, Commerce intends to hold the hearing at a time and date to be
determined.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On May 1, 2025, pursuant to 19 CFR 351.210(e), Yuzhan requested
that Commerce postpone the final determination and that provisional
measures be extended to a period not to exceed six months.\17\ In
accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii), because: (1) the preliminary determination is
affirmative; (2) the requesting exporter accounts for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, Commerce is postponing the final
determination and extending the provisional measures from a four-month
period to a period not greater than six months. Accordingly, Commerce
will make its final determination no later than 135 days after the date
of publication of this preliminary determination.
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\17\ See Yuzhan's Letter, ``Thermoformed Molded Fiber Products
from the Socialist Republic of Vietnam: Request to Extend Final
Determination,'' dated May, 1, 2025.
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U.S. International Trade Commission (ITC) Notification
In accordance with section 733(f) of the Act, Commerce will notify
the ITC of its preliminary determination of sales at LTFV. 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 the subject
merchandise 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 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: May 6, 2025.
Christopher Abbott,
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 consists of
thermoformed molded fiber products regardless of shape, form,
function, fiber source, or finish. Thermoformed molded fiber
products are formed with cellulose fibers, thermoformed using one or
more heated molds, and dried/cured in the mold.
Thermoformed molded fiber products include, but are not limited
to, plates, bowls, clamshells, trays, lids, food or foodservice
contact packaging, and consumer or other product packaging.
Thermoformed molded fiber products are relatively dense, with a
typical fiber density above 0.5 grams per cubic centimeter, and are
generally characterized by relatively smooth surfaces. They may be
derived from any
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virgin or recycled cellulose fiber source (including, but not
limited to, those sourced from wood, woody crops, agricultural
crops/byproducts/residue, and agricultural/industrial/other waste).
They may have any weight, shape, dimensionality, design, or size,
and may be bleached, unbleached, dyed, colored, or printed. They may
include ingredients, additives, or chemistries to enhance
functionality including, but not limited to, anti-microbial, anti-
fungal, anti-bacterial, heat/flame resistant, hydrophobic,
oleophobic, absorbent, or adsorbent. Thermoformed molded fiber
products may also be subject to other processing or treatments,
including, but not limited to, hot or after pressing, die-cutting,
punching, trimming, padding, perforating, printing, labeling, dying,
coloring, coating, laminating, embossing, debossing, repacking, or
denesting. Thermoformed molded fiber products subject to this
investigation may also have additional design features, including,
but not limited to, tab closures, venting, channeling, or
stiffening.
Thermoformed molded fiber products remain covered by the scope
of this investigation if the subject product is encased by exterior
packaging. They also remain covered by the scope of this
investigation whether imported alone, or in any combination of
subject and non-subject merchandise (e.g., a lid or cover of any
type packaged with a molded fiber bowl, addition of any items to
make the thermoformed molded fiber packaging suitable for end-use
such as absorbent pads). When thermoformed molded fiber products are
imported in combination with non-subject merchandise, only the
thermoformed molded fiber products are subject merchandise.
Also excluded from the scope of this investigation are products
covered by the scope of the antidumping and countervailing duty
orders on paper plates from People's Republic of China, the Kingdom
of Thailand, and the Socialist Republic of Vietnam.
Excluded from the scope of this investigation are thermoformed
molded fiber products imported as packaging material that enclose
and/or surround non-subject merchandise prepackaged for final sale
upon importation into the United States (e.g., molded fiber
packaging surrounding a cellular phone).
Thermoformed molded fiber products include thermoformed molded
fiber products 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 thermoformed
molded fiber products. 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 thermoformed molded fiber products
include, but are not limited to, hot or after pressing, die-cutting,
punching, trimming, padding, perforating, printing, labeling, dying,
coloring, coating, laminating, embossing, debossing, repacking, or
denesting.
Thermoformed molded fiber products are classified under
subheadings 7823.70.0020 and 4823.70.0040, Harmonized Tariff
Schedule of the United States (HTSUS). Imports may also be
classified under subheadings 4823.61.0020, 4823.61.0040,
4823.69.0020, 4823.69.0040, 4823.90.1000, HTSUS. References to the
HTSUS classification are provided for convenience and customs
purposes, and the written description of the merchandise under
investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Discussion of the Methodology
V. Currency Conversion
VI. Adjustment Under Section 777(A)(F) of the Act
VII. Adjustments to Cash Deposit Rates for Export Subsidies in the
Companion Countervailing Duty Investigation
VIII. Recommendation
[FR Doc. 2025-08305 Filed 5-9-25; 8:45 am]
BILLING CODE 3510-DS-P