Notice2023-24472

Certain Paper Shopping Bags From India: Preliminary Affirmative Determination of Countervailable Subsidies, Preliminary Affirmative Determination of Critical Circumstances in Part, and Alignment of Final Determination With the Final Antidumping Duty Determination

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Published
November 6, 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 certain paper shopping bags (paper bags) from India. The period of investigation (POI) is January 1, 2022, through December 31, 2022. Interested parties are invited to comment on this preliminary determination.

Full Text

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<title>Federal Register, Volume 88 Issue 213 (Monday, November 6, 2023)</title>
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[Federal Register Volume 88, Number 213 (Monday, November 6, 2023)]
[Notices]
[Pages 76185-76187]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-24472]



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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-918]


Certain Paper Shopping Bags From India: Preliminary Affirmative 
Determination of Countervailable Subsidies, Preliminary Affirmative 
Determination of Critical Circumstances in Part, 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 certain paper shopping bags (paper bags) 
from India. The period of investigation (POI) is January 1, 2022, 
through December 31, 2022. Interested parties are invited to comment on 
this preliminary determination.

DATES: Applicable November 6, 2023.

FOR FURTHER INFORMATION CONTACT: Paul Kebker or Drew Jackson, 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) 482-2254 or (202) 482-4406, 
respectively.

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 June 26, 2023.\1\ On August 7, 2023, Commerce 
postponed the preliminary determination until October 30, 2023.\2\
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    \1\ See Certain Paper Shopping Bags from India and the People's 
Republic of China: Initiation of Countervailing Duty Investigations, 
88 FR 41380 (June 26, 2023) (Initiation Notice).
    \2\ See Certain Paper Shopping Bags from the People's Republic 
of China and India: Postponement of Preliminary Determinations in 
the Countervailing Duty Investigations, 88 FR 52122 (August 7, 
2023).
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    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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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of Certain Paper Shopping Bags from India,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Investigation

    The products covered by this investigation are paper bags from 
India. 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, (i.e., scope).\5\ We received 
comments concerning the scope of the concurrent antidumping duty (AD) 
and CVD investigations of paper bags as it appeared in the Initiation 
Notice, which are listed in the Preliminary Decision Memorandum.\6\ We 
are currently evaluating the scope comments filed by the interested 
parties and intend to issue our preliminary decision regarding the 
scope of the AD and CVD investigations prior to or concurrently with 
the AD preliminary determinations. 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, 88 FR at 41380-81.
    \6\ See Preliminary Decision Memorandum at 5-6.
    \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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Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    In accordance with section 703(e)(1) of the Act, we preliminarily 
find that critical circumstances exist with respect to imports of 
subject merchandise for Velvin Paper Products. Additionally, we find 
that critical circumstances do not exist for Aero Plast Packaging 
Solutions Private Limited and companies subject to the all-others 
subsidy rate. For a full discussion of our preliminary critical 
circumstances determination, see the ``Critical Circumstances'' section 
of the Preliminary Decision Memorandum.

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. For further information, see the ``Use of Facts 
Otherwise Available'' section in the Preliminary Decision Memorandum.

Alignment

    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 determination in the companion AD 
investigation of paper bags from India based on a request made by the 
Coalition For Fair Trade in Shopping Bags (the petitioner).\9\ 
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 March 11, 2024, unless postponed.
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    \9\ See Petitioner's Letter, ``Petitioner's Request to Align 
Countervailing Duty Investigation Final Determination with 
Antidumping Duty Investigation Final Determination,'' dated October 
5, 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. 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, Commerce preliminarily calculated individual 
estimated countervailable subsidy rates for both mandatory respondents 
that are not zero, de minimis, or based entirely on facts otherwise 
available. Therefore, Commerce calculated the all-others rate using a 
weighted average of the individually estimated subsidy rates calculated 
for the examined respondents

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using each company's public ranged data for the value of its exports of 
subject merchandise to the United States.\10\
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    \10\ See Memorandum, ``Calculation of the Weighted-Average 
Dumping Margin for Companies Noy Selected for Individual 
Examination,'' dated concurrently with this notice.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:
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    \11\ As discussed in the Preliminary Decision Memorandum, 
Commerce preliminarily determines that Aero Plast Packaging 
Solutions Private Limited is cross-owned with Aero Business 
Solutions Private Limited and Aero Plast Limited.
    \12\ As discussed in the Preliminary Decision Memorandum, 
Commerce preliminarily determines that Velvin Paper Products is 
cross-owned with Velvin Packaging Solutions Private Limited.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Aero Plast Packaging Solutions Private Limited \11\.....            5.00
Velvin Paper Products \12\..............................            2.37
All Others..............................................            3.47
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Suspension of Liquidation

    In accordance with section 703(e)(2)(A) of the Act, because we find 
that critical circumstances exists for Velvin Paper Products, 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 90 days prior to the date of 
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.
    For Aero Plast Packaging Solutions Private Limited and companies 
subject to the ``all-others'' subsidy rate, in accordance with section 
703(d)(1)(B) and (d)(2) of the Act, Commerce will direct 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, or if there is no public 
announcement, within five days of the date of the publication of this 
notice, 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

    All interested parties will have the opportunity to submit scope 
case and rebuttal briefs on the preliminary decision regarding the 
scope of the AD and CVD investigations. The deadlines to submit scope 
case and rebuttal briefs will be provided in the preliminary scope 
decision memorandum. For all scope case and rebuttal briefs, parties 
must file identical documents simultaneously on the records of the 
ongoing AD and CVD investigations. No new factual information or 
business proprietary information may be included in either scope case 
or rebuttal briefs.
    Case briefs or other written comments on non-scope issues 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. Rebuttal briefs, 
limited to issues raised in case briefs, may be submitted no later than 
seven days after the deadline date for case briefs after the deadline 
date for case briefs.\13\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case 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. 
Note that Commerce has amended certain of its requirements pertaining 
to the service of documents in 19 CFR 351.303(f).\14\
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    \13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \14\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings; Final 
Rule, 88 FR 67069 (September 29, 2023).
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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, and a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing.\15\
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    \15\ See 19 CFR 351.310(d).
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U.S. 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 preliminary 
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 bags 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: October 30, 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 paper 
shopping bags with handles of any type, regardless of whether there 
is any printing, regardless of how the top edges are finished (e.g., 
folded, serrated, or otherwise finished), regardless of color, and 
regardless of whether the top edges contain adhesive or other 
material for sealing closed. Subject paper shopping bags have a 
width of at least 4.5 inches and depth of at least 2.5 inches.
    Paper shopping bags typically are made of kraft paper but can be 
made from any type of cellulose fiber, paperboard, or pressboard 
with a basis weight less than 300 grams per square meter (GSM).
    A non-exhaustive illustrative list of the types of handles on 
shopping bags covered by the scope include handles made from any 
materials such as twisted paper, flat paper, yarn, ribbon, rope, 
string, or plastic, as well as die-cut handles (whether the punchout 
is fully removed or partially attached as a flap).
    Excluded from the scope are:
    <bullet> Paper sacks or bags that are of a \1/6\ or \1/7\ barrel 
size (i.e., 11.5-12.5 inches in width, 6.5- 7.5 inches in depth, and 
13.5-17.5 inches in height) with flat paper handles or die-cut 
handles;
    <bullet> Paper sacks or bags with die-cut handles, a grams per 
square meter paper weight of less than 86 GSM, and a height of less 
than 11.5 inches; and
    <bullet> Shopping bags (i) with non-paper handles made wholly of 
woven ribbon or

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other similar woven fabric and (ii) that are finished with folded 
tops or for which tied knots or t-bar aglets (made of wood, metal, 
or plastic) are used to secure the handles to the bags.
    The above-referenced dimensions are provided for paper bags in 
the opened position. The height of the bag is the distance from the 
bottom fold edge to the top edge (i.e., excluding the height of 
handles that extend above the top edge). The depth of the bag is the 
distance from the front of the bag edge to the back of the bag edge 
(typically measured at the bottom of the bag). The width of the bag 
is measured from the left to the right edges of the front and back 
panels (upon which the handles typically are located).
    The merchandise is currently classifiable under Harmonized 
Tariff Schedule of the United States (HTSUS) subheadings 
4819.30.0040 and 4819.40.0040. The HTSUS subheadings are provided 
for convenience and customs purposes only; the written description 
of the scope is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Injury Test
VI. Preliminary Determination of Critical Circumstances, In Part
VII. Use of Facts Otherwise Available
VIII. Subsidies Valuation
IX. Benchmark Interest Rates and Discount Rates
X. Diversification of India's Economy
XI. Analysis of Programs
XII. Recommendation

[FR Doc. 2023-24472 Filed 11-3-23; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on November 6, 2023.

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