[Federal Register Volume 90, Number 171 (Monday, September 8, 2025)]
[Notices]
[Pages 43174-43178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-17224]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-867]
High Purity Dissolving Pulp From Brazil: Initiation of
Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable September 2, 2025.
FOR FURTHER INFORMATION CONTACT: Gorden Struck or Sarah Keith at, AD/
CVD Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-5969 and (202) 482-0264,
respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On August 12, 2025, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
high purity dissolving pulp from Brazil filed in proper form on behalf
of Rayonier Advanced Materials, Inc. (RYAM) and the United Steel, Paper
and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and
Service Workers International Union, AFL-CIO (USW) (the petitioners), a
domestic producer of high purity dissolving pulp and a certified union,
which represents workers engaged in the production of high purity
dissolving pulp in the United States.\1\ The CVD Petition was
accompanied by antidumping duty (AD) petitions concerning imports of
high purity dissolving pulp from Brazil and Norway.\2\
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\1\ See Petitioners' Letter, ``Antidumping and Countervailing
Duty Petitions,'' dated August 12, 2025 (Petition).
\2\ Id.
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Between August 14 and 21, 2025, Commerce requested supplemental
information pertaining to certain aspects of the Petition in
supplemental questionnaires.\3\ Between August 18 and 22, 2025, the
petitioners filed timely responses to these requests for additional
information.\4\
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\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
August 14, 2025 (First General Issues Questionnaire); ``Supplemental
Questions,'' dated August 14, 2025 (Brazil CVD Questionnaire); and
``Second General Issues Supplemental Questions,'' dated August 21,
2025 (Second General Issues Questionnaire).
\4\ See Petitioners' Letters, ``Antidumping and Countervailing
Duty Supplemental Questionnaire Response,'' dated August 18, 2025;
``Response to Countervailing Duty Petition Supplemental
Questionnaire,'' dated August 18, 2025 (Brazil CVD Supplement); and
``Response to Second General Issues Supplemental Questions,'' dated
August 22, 2025 (Second General Issues Supplement).
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[[Page 43175]]
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioners allege that the Government of Brazil
(GOB) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of high purity
dissolving pulp in Brazil, and that such imports are materially
injuring, or threatening material injury to, the domestic industry
producing high purity dissolving pulp 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
petitioners supporting their allegations.
Commerce finds that the petitioners filed the Petition on behalf of
the domestic industry, because the petitioners are interested parties,
as defined in sections 771(9)(C) and (D) of the Act. Commerce also
finds that the petitioners demonstrated sufficient industry support
with respect to the initiation of the requested CVD investigation.\5\
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\5\ See section on ``Determination of Industry Support for the
Petition,'' infra.
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Period of Investigation
Because the Petition was filed on August 12, 2025, the period of
investigation (POI) for the Brazil CVD investigation is January 1,
2024, through December 31, 2024.\6\
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\6\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation
The product covered by this investigation is high purity dissolving
pulp from Brazil. For a full description of the scope of this
investigation, see the appendix to this notice.
Comments on the Scope of the Investigation
On August 14 and 21, 2025, Commerce requested information and
clarification from the petitioners regarding the proposed scope to
ensure that the scope language in the Petition is an accurate
reflection of the products for which the domestic industry is seeking
relief.\7\ On August 18 and 22, 2025, the petitioners provided
clarifications and revised the scope.\8\ The description of the
merchandise covered by this investigation, as described in the appendix
to this notice, reflects these clarifications.
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\7\ See First General Issues Supplemental Questionnaire at 3-4;
see also Second General Issues Supplemental Questionnaire at 3.
\8\ See First General Issues Supplement at 3-6 and Exhibits I-
Supp-2; see also Second General Issues Supplement at 2-6.
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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\
Commerce requests that interested parties provide at the beginning of
their scope comments a public executive summary for each comment or
issue raised in their submission. Commerce further requests that
interested parties limit their public executive summary of each comment
or issue to no more than 450 words, not including citations. Commerce
intends to use the public executive summaries as the basis of the
comment summaries included in the analysis of scope comments. To
facilitate preparation of its questionnaires, Commerce requests that
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on September
22, 2025, which is 20 calendar days from the signature date of this
notice. Any rebuttal comments must be filed by 5:00 p.m. ET on October
2, 2025, 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); see also 19 CFR
351.312.
\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 this 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 GOB of the receipt of the Petition and provided an
opportunity for consultations with respect to the Petition.\12\
Commerce held consultations with the GOB on August 28, 2025.\13\
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\12\ See Commerce's Letter, ``Invitation for Consultations to
Discuss the Countervailing Duty Petition,'' dated August 12, 2025.
\13\ See Memorandum, ``Consultations with the Government of
Brazil,'' dated September 2, 2025.
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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.''
[[Page 43176]]
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 must apply the same statutory definition regarding the domestic
like product,\14\ 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.\15\
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\14\ See section 771(10) of the Act.
\15\ 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, 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 petitioners do not
offer a definition of the domestic like product distinct from the scope
of the investigation.\16\ Based on our analysis of the information
submitted on the record, we have determined that high purity dissolving
pulp, as defined in the scope, constitutes a single domestic like
product, and we have analyzed industry support in terms of that
domestic like product.\17\
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\16\ 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:
High Purity Dissolving Pulp from Brazil,'' dated concurrently with,
and hereby adopted by, this notice (Brazil CVD Initiation
Checklist), at Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions Covering High Purity
Dissolving Pulp from Brazil and Norway (Attachment II). This
checklist is on file electronically via ACCESS.
\17\ For further discussion, see Attachment II of the Brazil CVD
Initiation Checklist.
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In determining whether the petitioners have 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 petitioners provided
their own production of the domestic like product in 2024.\18\ The
petitioners identified RYAM as the sole remaining producer of the
domestic like product; therefore, the Petition is supported by 100
percent of the U.S. industry.\19\ We relied on data provided by the
petitioners for purposes of measuring industry support.\20\
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\18\ Id.
\19\ Id.
\20\ Id.
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Our review of the data provided in the Petition, the First General
Issues Supplement, and other information readily available to Commerce
indicates that the petitioners have established industry support for
the Petition.\21\ 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).\22\ 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.\23\ 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.\24\ 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.\25\
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\21\ Id.
\22\ Id.; see also section 702(c)(4)(D) of the Act.
\23\ See Attachment II of the Brazil CVD Initiation Checklist.
\24\ Id.
\25\ Id.
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Injury Test
Because Brazil 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 Brazil materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioners allege that imports of 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 petitioners
allege that subject imports exceed the negligibility threshold provided
for under section 771(24)(A) of the Act.\26\
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\26\ For further information regarding negligibility and the
injury allegation, see Brazil CVD Initiation Checklist at Attachment
III, Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping Duty and Countervailing Duty Petitions
Covering High Purity Dissolving Pulp from Brazil and Norway
(Attachment III).
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The petitioners contend that the industry's injured condition is
illustrated by the significant volume of subject imports; increased
market share of subject imports; underselling and price depression and/
or suppression; negative impact on financial performance; lost sales
and revenues; and adverse impact on production, capacity utilization,
U.S. shipments, and employment variables.\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 high purity dissolving pulp from Brazil benefit from
countervailable subsidies conferred by the GOB. 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 27 programs
alleged by the petitioners. For a full discussion of the basis for our
decision to initiate on each program, see the Brazil CVD
[[Page 43177]]
Initiation Checklist. A public version of the initiation checklist for
this investigation is available on ACCESS.
Respondent Selection
In the Petition, the petitioners identified one company in Brazil
(i.e., Bracell Bahia Specialty Celulose SA (Bracell)) as a producer
and/or an exporter of high purity dissolving pulp.\29\ We currently
know of no additional producers/exports of high purity dissolving pulp
from Brazil.
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\29\ See Petition at Volume I (page 11 and Exhibit I-4); see
also First General Issues Supplement at 1 and Exhibits I-Supp-1
through I-Supp-4.
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Accordingly, Commerce intends to individually examine the only
known producer/exporter in the investigation from Brazil (i.e.,
Bracell). We invite interested parties to comment on this issue. Such
comments may include factual information within the meaning of 19 CFR
351.102(b)(21). Parties wishing to comment must do so within three
business days of the publication of this notice in the Federal
Register. 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. Because
we intend to examine the only known producer/exporter in Brazil, if no
comments are received or if comments received further support the
existence of only this producer/exporter in Brazil, we do not intend to
conduct respondent selection and will proceed to issuing the initial
CVD questionnaire to the company identified. However, if comments are
received which create a need for a respondent selection process, we
intend to finalize our decisions regarding respondent selection within
20 days of publication of this notice.
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 GOB 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 high purity dissolving pulp from Brazil are
materially injuring, or threatening material injury to, a U.S.
industry.\30\ A negative ITC determination will result in the
investigation being terminated.\31\ Otherwise, this CVD investigation
will proceed according to statutory and regulatory time limits.
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\30\ See section 703(a)(1) of the Act.
\31\ 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 \32\ 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.\33\ 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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\32\ See 19 CFR 351.301(b).
\33\ 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.\34\ 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.\35\
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\34\ See 19 CFR 351.302.
\35\ 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.\36\
Parties must use the certification formats provided in 19 CFR
351.303(g).\37\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\36\ See section 782(b) of the Act.
\37\ 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).\38\
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\38\ 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).
[[Page 43178]]
Dated: September 2, 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
Scope of the Investigation
The merchandise subject to this investigation is high purity
dissolving pulp, which is a dissolving pulp with an alpha cellulose
percentage of 90 percent by weight or higher on an oven dry basis,
as calculated by: alpha cellulose percentage = (100-S10) + 0.5 *
(S10-S18) where S10 and S18 values are determined by International
Organization for Standardization (ISO) 692:1982, and having a
brightness level of 90 percent or higher, as measured by ISO 2470-
1:2016. High purity dissolving pulp may be derived from any virgin
or recycled cellulose fiber source (including, but not limited to,
those sourced from hardwoods, softwoods, woody crops, agricultural
crops/byproducts/residue, and agricultural/industrial/other waste).
High purity dissolving pulp may be produced from a chemical pulping
process including without limitation a kraft (sulfate) pulping and/
or sulfite pulping process.
High purity dissolving pulp can be shipped in any form,
including, but not limited to, a liquid slurry or in any dried form
such as flakes, powder, granules, pellets, shreds, rolls and sheets.
The scope includes merchandise matching the above description
that has been finished, packaged, or otherwise processed in a third
country, including but not limited to processes such as commingling,
blending, diluting, repackaging, or any other process that would not
otherwise remove the merchandise from the scope of the investigation
if performed in the subject country. The scope also includes high
purity dissolving pulp that is commingled or blended with high
purity dissolving pulp from sources not subject to this
investigation. Only the subject component of such commingled or
blended products is covered by the scope of this investigation.
Excluded from the scope is high purity dissolving pulp with an
intrinsic viscosity under 455 milliliters per gram (mL/g), as
measured by ISO 5351:2010.
Also excluded from the scope is cotton linters pulp that
consists of at least 90 percent by weight, on an oven-dried basis,
of cotton linters fibers.
High purity dissolving pulp products are classified under
subheadings 4702.00.0020 and 4702.00.0040, of the Harmonized Tariff
Schedule of the United States (HTSUS). High purity dissolving pulp
products may also enter under subheadings 4706.30.0000 or
4706.92.0100. Reference to the HTSUS classifications is provided for
convenience and customs purposes, and the written description of the
merchandise under investigation is dispositive.
[FR Doc. 2025-17224 Filed 9-5-25; 8:45 am]
BILLING CODE 3510-DS-P