[Federal Register Volume 90, Number 140 (Thursday, July 24, 2025)]
[Notices]
[Pages 34844-34845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-13947]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-557-833]
Float Glass Products From Malaysia: Preliminary Negative Critical
Circumstances Determination in the Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that critical circumstances do not exist with respect to
imports of float glass products in the countervailing duty (CVD)
investigation of float glass products from Malaysia. The period of
investigation is January 1, 2023, through December 31, 2023.
DATES: Applicable July 24, 2025.
FOR FURTHER INFORMATION CONTACT: Mira Warrier or Benjamin Nathan, AD/
CVD Operations, Office II, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW Washington, DC 20230; telephone: (202) 482-8031 or (202) 482-
3834, respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the notice of initiation of this investigation
on January 8, 2025.\1\ On May 7, 2025, Vitro Flat Glass, LLC and Vitro
Meadville Flat Glass, LLC (the petitioners) filed a timely critical
circumstances allegation, pursuant to pursuant to section 703(e)(1) of
the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.206, that
critical circumstances exist with respect to float glass products from
Malaysia.\2 \ Commerce published its preliminary CVD determination on
May 19, 2025.\3\
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\1\ See Float Glass Products from the People's Republic of China
and Malaysia: Initiation of Countervailing Duty Investigations, 90
FR 1443 (January 8, 2025) (Initiation Notice).
\2\ See Petitioners'' Letter, ``Petitioner's Allegation of
Critical Circumstances,'' dated May 7, 2025 (Critical Circumstances
Allegation).
\3\ See Float Glass Products from Malaysia: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination With Final Antidumping Duty Determination, 90 FR 21278
(May 19, 2025).
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In accordance with sections 703(e)(1) of the Act and 19 CFR
351.206(c)(1) and (2)(ii), because the petitioners submitted the
critical circumstances allegations more than 30 days before the
scheduled date of the final determinations, Commerce will make
preliminary findings as to whether there is a reasonable basis to
believe or suspect that critical circumstances exist. Section 703(e)(1)
of the Act provides that Commerce will preliminarily determine that
critical circumstances exist in a CVD investigation if there is a
reasonable basis to believe or suspect that: (A) the alleged
countervailable subsidy is inconsistent with the World Trade
Organization Agreement on Subsidies and Countervailing Measures (SCM
Agreement); \4\ and (B) there have been massive imports of the subject
merchandise over a relatively short period.
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\4\ Commerce limits its critical circumstances findings to those
subsidies contingent upon export performance or use of domestic over
imported goods (i.e., those prohibited under Article 3 of the SCM
Agreement). See, e.g., Final Affirmative Countervailing Duty
Determination and Final Negative Critical Circumstances
Determination: Carbon and Certain Alloy Steel Wire from Germany, 67
FR 55808, 55809-10 (August 30, 2002).
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Critical Circumstances Allegation
The petitioner alleges that imports of float glass products from
Malaysia were massive over a relatively short period, and provided
monthly import data comparing a base period of August 2024 through
November 2024, to a comparison period of December 2024 through March
2025.\5\ The petitioner's allegation of massive imports utilizes base
and comparison periods established in accordance with 19 CFR 351.206(i)
and reflects an increase of
[[Page 34845]]
27.5 percent in U.S. float glass product imports from Malaysia, which
is ``massive'' under section 703(e)(1)(b) of the Act and 19 CFR
351.206(h)(2).\6\ The petitioners also allege that there is a
reasonable basis to believe that there are subsidies in this
investigation which are inconsistent with the SCM Agreement.\7\
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\5\ See Critical Circumstances Allegation at Exhibit 1.
\6\ Id. at 5.
\7\ See section 771(8)(A) of the Act.
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Analysis
Alleged Countervailable Subsidies Are Inconsistent With the SCM
Agreement
Commerce considered the evidence on the record pertaining to the
petitioner's allegation that the Pioneer Status Direct Tax Incentives,
Double Deduction for Promotion of Exports, and Policy Lending from
Chinese Banks for Belt and Road Initiative (BRI) Capacity Cooperation
Projects are inconsistent with the SCM Agreement because they are
export-contingent.\8\ Record evidence in the Initiation Checklist
indicates that the Double Deduction for Promotion of Exports provides a
deduction to companies on expenses related to the export of goods
(i.e., export contingent) which would render the program inconsistent
with the SCM Agreement.
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\8\ See Critical Circumstances Allegation at 3-4.
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Commerce initiated an investigation into an export specific
allegation of a tax exemption under Malaysia's 2018 Sales Tax Act;
however, no determination has been made as to whether it is
countervailable or whether the alleged program is inconsistent with the
SCM Agreement. Commerce considered evidence on the record pertaining to
the petitioner's allegation of the Pioneer Status Direct Tax Incentives
and Policy Lending from Chinese Banks for BRI and preliminarily
rendered both programs to not be inconsistent with the SCM Agreement.
Massive Imports
In determining whether there have been ``massive imports'' over a
``relatively short period,'' pursuant to section 703(e)(1)(B) of the
Act and 19 CFR 351.206(h), Commerce normally compares the import
volumes of the subject merchandise for at least three months
immediately preceding the filing of the petition (i.e., the ``base
period'') to a comparable period of at least three months following the
filing of the petition (i.e., the ``comparison period''). Commerce's
practice is to include as many months of data as are available up to
and including the month of publication of the CVD preliminary
determination. Imports normally will be considered massive when imports
during the comparison period have increased by 15 percent or more
compared to imports during the base period.\9\ The regulations also
provide that if Commerce finds that importers, exporters, or producers
had reason to believe, at some time prior to the beginning of the
proceeding, that a proceeding was likely, Commerce may consider a
period of not less than three months from that earlier time.\10\ In
this case, Commerce compared the import volumes of subject merchandise
for an equivalent period immediately preceding, and following, the
filing of the petition.\11\
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\9\ See 19 CFR 351.206(h)(2).
\10\ See 19 CFR 351.206(i).
\11\ We note that we are able to analyze six months prior to and
following the petition for the mandatory respondents, and five
months prior to and following the petition for non-selected
producers/exporters. For more information, see Memorandum,
``Analysis of Critical Circumstances,'' dated concurrently with this
notice (Critical Circumstances Memo).
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Preliminary Determination
Because the petition was filed on November 21, 2024, to determine
whether there was a massive surge in imports for the cooperating
mandatory respondent, Commerce compared the total volume of shipments
during the period June 2024 through November 2024 with the volume of
shipments during the following six-month period of December 2024
through May 2025 for mandatory respondents Jinjing Malaysia and Xinyi
Malaysia.\12\ For all other producers/exporters, because country-wide
data for May are not yet available, we compared the period July 2024
through November 2024 with the period December 2024 through April
2025.\13\ With respect to Jinjing Malaysia, Xinyi Malaysia, and all
other producers/exporters, we preliminarily determine that there was no
massive surge in imports between the base and comparison periods.\14\
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\12\ See Critical Circumstances Memo.
\13\ Id.
\14\ Id.
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Conclusion
For the investigation, based on the criteria and findings discussed
above, as well as the mandatory respondent specific-analysis and all
others specific-analysis explained in the accompanying Critical
Circumstances Memo,\15\ we preliminarily determine that critical
circumstances do not exist regarding Jinjing Malaysia, Xinyi Malaysia,
and all other producers/exporters.
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\15\ Id.
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Final Critical Circumstances Determination
We will make a final critical circumstances determination
concerning critical circumstances in the final CVD determination, which
is currently due no later than November 28, 2025.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Interested parties
will be notified of the timeline for the submission of case briefs and
written comments at a later date.\16\
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\16\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069, 67077 (September 29, 2023).
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U.S. International Trade Commission (ITC) Notification
In accordance with sections 703(f) and 733(f) of the Act, we will
notify the ITC of these preliminary determinations of critical
circumstances.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f), 733(f), and 777(i) of the Act and 19 CFR 351.206.
Dated: July 17, 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.
[FR Doc. 2025-13947 Filed 7-23-25; 8:45 am]
BILLING CODE 3510-DS-P