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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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.
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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.
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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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