Notice2023-05553

Paper File Folders From India: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With the Final Antidumping Duty Determination

Primary source

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Published
March 20, 2023

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of paper file folders from India for the period of investigation (POI) January 1, 2021, through December 31, 2021. Interested parties are invited to comment on this preliminary determination.

Full Text

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<title>Federal Register, Volume 88 Issue 53 (Monday, March 20, 2023)</title>
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[Federal Register Volume 88, Number 53 (Monday, March 20, 2023)]
[Notices]
[Pages 16590-16592]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-05553]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-911]


Paper File Folders From India: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final Determination 
With the Final Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of paper file folders from India for the period 
of investigation (POI) January 1, 2021, through December 31, 2021. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable March 20, 2023.

FOR FURTHER INFORMATION CONTACT: Thomas Martin, 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) 482-3936.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this countervailing duty (CVD) 
investigation on November 8, 2022.\1\ On December 28, 2022, Commerce 
postponed the preliminary determination of this investigation until 
March 13, 2023.\2\ For a complete description of events that followed 
the initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics discussed 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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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    \1\ See Paper File Folders from India: Initiation of 
Countervailing Duty Investigations, 87 FR 67447 (November 8, 2022) 
(Initiation Notice).
    \2\ See Paper File Folders from India: Postponement of 
Preliminary Determination in the Countervailing Duty Investigation, 
87 FR 79858 (December 28, 2022).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of Paper File Folders from India,'' 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 paper file folders 
from India. For a complete description of the scope of the 
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, (i.e., scope).\5\ We received 
comments concerning the scope of the antidumping duty (AD) and CVD 
investigations of paper file folders as it appeared in the Initiation 
Notice. We are currently evaluating the scope comments filed by the 
interested parties. We intend to issue our preliminary decision 
regarding the scope of the AD and CVD investigations in the preliminary 
determinations of the companion AD investigations, the deadline for 
which is May 10, 2023.\6\ We will incorporate the scope decisions from 
the AD investigations into the scope of the final CVD determination for 
this investigation after considering any relevant comments submitted in 
scope case and rebuttal briefs.\7\
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 87 FR at 67448.
    \6\ See Paper File Folders from the People's Republic of China, 
India, and the Socialist Republic of Vietnam: Postponement of 
Preliminary Determinations in the Less-Than-Fair-Value 
Investigations, 88 FR 9226, 9227 (February 13, 2023).
    \7\ The deadline for interested parties to submit scope case and 
rebuttal briefs will be established in the preliminary scope 
decision memorandum.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found to be 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\8\
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    \8\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one respondent, and also 
(in certain instances) the Government of India, did not act to the best 
of their ability to respond to Commerce's requests for information. 
Consequently, Commerce has drawn an adverse inference where appropriate 
in selecting from among the facts otherwise available.\9\ For further 
information, see the ``Use of Facts Otherwise Available and Adverse 
Inferences'' section in the Preliminary Decision Memorandum.
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    \9\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination in this investigation with the 
final

[[Page 16591]]

determination in the companion AD investigation of paper file folders 
from India based on a request made by the petitioner.\10\ Consequently, 
the final CVD determination will be issued on the same date as the 
final AD determination, which is currently scheduled to be issued no 
later than July 24, 2023, unless postponed.
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    \10\ The petitioner is Coalition of Domestic Folder 
Manufacturers. See Petitioner's Letter, ``Request to Align 
Countervailing Duty Investigation Final Determination with 
Antidumping Duty Investigation Final Determination,'' dated February 
24, 2023.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. Pursuant to 
section 705(c)(5)(A)(i) of the Act, this rate shall normally be an 
amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, the only individually calculated rate that 
is not zero, de minimis or based entirely on facts otherwise available 
is the rate calculated for Navneet Education Limited (Navneet).\11\ 
Consequently, the rate calculated for Navneet is also assigned as the 
rate for all other producers and exporters not individually examined in 
this investigation.
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    \11\ Commerce has assigned a rate to the non-responsive company 
(i.e., Lotus Global Pvt. Ltd.) based entirely on facts available, 
using adverse inferences, under section 776 of the Act.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:
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    \12\ Commerce has assigned a rate to Lotus Global Pvt. Ltd. 
based entirely on facts available, using adverse inferences, under 
section 776 of the Act. For details regarding the calculation of 
this rate, see the Preliminary Decision Memorandum at the Appendix.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Navneet Education Limited...............................            3.65
Lotus Global Pvt. Ltd...................................      \12\ 59.26
All Others..............................................            3.65
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of the publication of 
this notice in the Federal Register. Further, pursuant to 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the rates indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, in accordance with 19 CFR 
351.244(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    A timeline for the submission of case briefs and written comments 
will be notified to interested parties at a later date. Rebuttal 
briefs, limited to issues raised in case briefs, may be submitted no 
later than seven days after the deadline for case briefs.\13\ Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information, until 
further notice.\14\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) a statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \14\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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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 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and 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. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its determination. 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 paper file 
folders from India are materially injuring, or threaten material injury 
to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: March 13, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I--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 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 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:
    <bullet> 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;
    <bullet> binders, with two or more rings to hold documents in 
place, made from paperboard or pressboard encased entirely in 
plastic;
    <bullet> 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);
    <bullet> expanding folders that have (1) 13 or more pockets, (2) 
a flap covering the top, (3) a latching mechanism made of plastic 
and/

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or metal to close the flap, and (4) an affixed plastic or metal 
carry handle;
    <bullet> expanding folders that have an outer surface (other 
than the gusset, handles, and/or closing mechanisms) that is covered 
entirely with fabric, leather, and/or faux leather;
    <bullet> 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, and 
other than the printing of numbers, letters, words, or logos, 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;
    <bullet> 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
    <bullet> 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 the investigation is dispositive.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Subsidies Valuation Information
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Recommendation

[FR Doc. 2023-05553 Filed 3-17-23; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on March 20, 2023.

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