Notice2023-28938
Certain Paper Shopping Bags From the People's Republic of China: Preliminary Affirmative Determinations of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures
Primary source
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Published
January 3, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that certain paper shopping bags (paper bags) from the People's Republic of China (China) are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is October 1, 2022, through March 31, 2023. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 2 (Wednesday, January 3, 2024)</title>
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[Federal Register Volume 89, Number 2 (Wednesday, January 3, 2024)]
[Notices]
[Pages 344-347]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-28938]
[[Page 344]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-152]
Certain Paper Shopping Bags From the People's Republic of China:
Preliminary Affirmative Determinations of Sales at Less Than Fair
Value, Preliminary Affirmative Determination of Critical Circumstances,
Postponement of Final Determination, and Extension of Provisional
Measures
AGENCY: Enforcement and Compliance, International Trade
Administration, Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that certain paper shopping bags (paper bags) from the
People's Republic of China (China) are being, or are likely to be, sold
in the United States at less than fair value (LTFV). The period of
investigation (POI) is October 1, 2022, through March 31, 2023.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable January 3, 2024.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold, AD/CVD Operations,
Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1211.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on June 27,
2023.\1\ On October 3, 2023, Commerce postponed the preliminary
determination of this investigation until December 27, 2023.\2\
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\1\ See Certain Paper Shopping Bags from Cambodia, the People's
Republic of China, Colombia, India, Malaysia, Portugal, Taiwan, the
Republic of Turkey, and the Socialist Republic of Vietnam:
Initiation of Less-Than-Fair-Value Investigations, 88 FR 41589 (June
27, 2023) (Initiation Notice).
\2\ See Certain Paper Shopping Bags from Cambodia, the People's
Republic of China, Colombia, India, Malaysia, Portugal, Taiwan, the
Republic of Turkey, and the Socialist Republic of Vietnam:
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 88 FR 68097 (October 3, 2023).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics included 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 Less-Than-Fair Value Investigation
of Certain Paper Shopping Bags from the People's Republic of
China,'' 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
China. 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\ in
the Initiation Notice, Commerce set aside a period of time for parties
to raise issues regarding product coverage (i.e., scope).\5\ Certain
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this investigation
and accompanying discussion and analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\6\ As
discussed in the Preliminary Scope Decision Memorandum, Commerce
preliminarily modified the scope language as it appeared in the
Initiation Notice. In the Preliminary Scope Decision Memorandum,
Commerce established the deadline for parties to submit scope case and
rebuttal briefs.
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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 41590.
\6\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated concurrently with this notice (Preliminary Scope Decision
Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Because China is a non-
market economy within the meaning of section 771(18) of the Act,
Commerce has calculated normal value in accordance with section 773(c)
of the Act.
In addition, pursuant to sections 776(a) and (b) of the Act because
the China-wide entity did not cooperate to the best of its ability in
responding to Commerce's request for data, Commerce preliminarily has
relied upon facts otherwise available, with adverse inferences, in
determining the estimated weighted-average dumping margin for the
China-wide entity. For a full description of the methodology underlying
Commerce's preliminary determination, see the Preliminary Decision
Memorandum.
Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 733(e)(1) of the Act and 19 CFR
351.206(c), Commerce preliminarily determines that critical
circumstances exist with respect to imports of paper bags from China
for Dongzheng Paperbag (DaLian) Factory (Dongzheng), the non-selected
respondents eligible for a separate rate, and the China-wide entity.
Commerce preliminarily determines that critical circumstances do not
exist with respect to imports of paper bags from China for UUPAK Co.,
Ltd. (UUPAK). For a full description of the methodology and results of
Commerce's analysis, see the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\7\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Commerce's
Policy Bulletin 05.1 describes this practice.\8\ In this investigation,
we calculated producer/exporter combination rates for respondents
eligible for separate rates.
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\7\ See Initiation Notice, 88 FR at 4811.
\8\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at <a href="http://enforcement.trade.gov/policy/bull05-1.pdf">http://enforcement.trade.gov/policy/bull05-1.pdf</a>.
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Separate Rates
In addition to Dongzheng and UUPAK, we have preliminarily granted a
separate rate to certain respondents that we did not select for
individual examination.\9\ In calculating the rate for non-individually
examined separate rate respondents in a non-market economy LTFV
investigation, Commerce normally looks to section 735(c)(5)(A) of the
Act, which pertains to the calculation of the all-others rate in a
market economy LTFV investigation, for guidance. Pursuant to section
735(c)(5)(A) of the Act, normally this rate shall be an amount equal to
the
[[Page 345]]
weighted average of the estimated weighted-average dumping margins
established for those companies individually examined, excluding zero
and de minimis and any rates based entirely under section 776 of the
Act. Commerce calculated individual estimated weighted-average dumping
margins for Dongzheng and UUPAK that are not zero, de minimis, or based
entirely on facts otherwise available. Thus, the weighted-average
dumping margins calculated for Dongzheng and UUPAK are the basis to
determine the weighted-average dumping margin for the non-examined,
separate rate companies, investigation. See the table below in the
``Preliminary Determination'' section of this notice.
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\9\ See the Preliminary Decision Memorandum for additional
details.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Cash deposit
Weighted- rate (adjusted
average for export
Exporter Producer dumping margin subsidy
(percent) offset(s)
(percent)
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Dongzheng Paperbag (DaLian) Factory........ Dongzheng Paperbag (DaLian) Factory 59.41 48.86
UUPAK Co., Ltd............................. Tianjin Haishun Printing & Packing 24.15 12.81
Co., Ltd.
Fujian Eco Packaging Co., Ltd.............. Fujian Hongkai Packaging Co., Ltd.. 40.55 29.21
Fujian Eco Packaging Co., Ltd.............. Fujian Yihe Packaging Co., Ltd..... 40.55 29.21
Fujian Eco Packaging Co., Ltd.............. Guangdong Union Eco-Packaging Scien- 40.55 29.21
Tech Co., Ltd.
Fujian Eco Packaging Co., Ltd.............. Xiamen Huide Eco-friendly Paper 40.55 29.21
Bags Co., Ltd.
Fujian Eco Packaging Co., Ltd.............. Xiamen Jihong Technology Co., Ltd.. 40.55 29.21
Fujian Nanwang Environment Protection Scien- Anhui Nanwang Environmental 40.55 29.15
tech Co., Ltd. Protection Technology Co., Ltd.
Fujian Nanwang Environment Protection Scien- Fujian Nanwang Environment 40.55 29.15
tech Co., Ltd. Protection Scien-tech CO., LTD.
Fujian Nanwang Environment Protection Scien- Hubei Nanwang Environmental 40.55 29.15
tech Co., Ltd. Protection Scien-tech Co., Ltd.
Fujian Nanwang Environment Protection Scien- Xianghe Nanwang Environmental 40.55 29.15
tech Co., Ltd. Protection Technology Co., Ltd.
Fujian Nanwang Environment Protection Scien- Zhuhai Zhongyue Paper CUP Container 40.55 29.15
tech Co., Ltd. Co., Ltd.
Grand Intelligent Limited.................. Ruichuang Limited.................. 40.55 29.21
Max Fortune Industrial Ltd................. Winner Printing and Packaging (He 40.55 29.21
Yuan) Ltd.
Ningbo Beiheng Import & Export Company Wenzhou Weijie Packing Co., Ltd.... 40.55 29.21
Limited.
Shanghai Miho Package & Product Co., Ltd... Zhejiang Shengxiang Industrial Co., 40.55 29.21
Ltd.
Union Packaging Group Limited.............. Guangdong Union Eco-Packaging Scien- 40.55 29.21
Tech Co., Ltd.
Wuxi Hualite Metal Plastic Products Co., Wuxi Hualite Paper Products Co., 40.55 29.21
Ltd. Ltd.
Xiamen Bag Imp. & Exp. Co., Ltd............ Xiamen CYR Green-Tech Co., Ltd..... 40.55 29.21
Xiamen Huide Xiesheng Packaging Co., Ltd... Xiamen Huide Eco-Friendly Paper 40.55 29.21
Bags Co., Ltd.
Xiamen Jihong Technology Co., Ltd.......... Xiamen Jihong Technology Co., Ltd.. 40.55 29.21
Xiamen Joy Supply Chain Co., Ltd........... Fujian Huian Nice Paper Products 40.55 29.21
Co., Ltd.
Xiamen Joy Supply Chain Co., Ltd........... Xiamen THINKER Packaging Products 40.55 29.2
Co., Ltd.
Xiamen Nice Packaging Products Co., Ltd.... Fujian Huian Nice Paper Products 40.55 29.21
Co., Ltd.
Xiamen Nice Packaging Products Co., Ltd.... Xiamen THINKER Packaging Products 40.55 29.21
Co., Ltd.
China-wide Entity \10\..................... ................................... 146.32 135.77
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Suspension of Liquidation
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\10\ We have not granted a separate rate to Qingdao Deepack Co.,
Ltd.; thus, the China-wide Entity preliminarily includes Qingdao
Deepack Co., Ltd. See the Preliminary Decision Memorandum for
additional details.
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In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
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 publication of this notice in the Federal Register,
or earlier, as discussed below. Further, pursuant to section
733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will instruct
CBP to require a cash deposit equal to the weighted average amount by
which normal value exceeds U.S. price, as indicated in the chart above,
as follows: (1) for the producer/exporter combinations listed in the
table above, the cash deposit rate is equal to the estimated weighted-
average dumping margin listed for that combination in the table; (2)
for all combinations of Chinese producers/exporters of subject
merchandise that have not established eligibility for their own
separate rates, the cash deposit rate will be equal to the estimated
weighted-average dumping margin established for the China-wide entity;
and (3) for all third-country exporters of subject merchandise not
listed in the table above, the cash deposit rate is the cash deposit
rate applicable to the Chinese producer/exporter combination (or China-
wide entity) that supplied that third-country exporter.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise
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entered, or withdrawn from warehouse, for consumption on or after the
later of (a) the date which is 90 days before the date on which the
suspension of liquidation was first ordered, or (b) the date on which
notice of initiation of the investigation was published. Commerce
preliminarily finds that critical circumstances exist for imports of
subject merchandise from Dongzheng, the non-selected respondents
eligible for a separate rate, and the China-wide entity.\11\ However,
we have found that critical circumstances do not exist for UUPAK.\12\
In accordance with section 733(e)(2)(A) of the Act, the suspension of
liquidation shall apply to all unliquidated entries of merchandise from
Dongzheng, the non-selected respondents eligible for a separate rate,
and the China-wide entity that were entered, or withdrawn from
warehouse, for consumption on or after the date which is 90 days before
the publication of this notice in the Federal Register.
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\11\ See Preliminary Decision Memorandum.
\12\ Id.
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To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce offset the calculated estimated weighted-average
dumping margin by the appropriate rate(s). Any such adjusted rates may
be found in the chart of estimated weighted-average dumping margins in
the ``Preliminary Determination'' section above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for
export subsidies at the time the CVD provisional measures expire. These
suspension of liquidation instructions will remain in effect until
further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in the
Federal Register in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the verification report is issued in this
investigation. Rebuttal briefs, limited to issues raised in the case
briefs, may be filed not later than five days after the date for filing
case briefs.\13\ Interested parties who submit case briefs or rebuttal
briefs in this proceeding must submit: (1) a table of contents listing
each issue; and (2) a table of authorities.\14\
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\13\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\14\ See 19 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\15\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\16\
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\15\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\16\ See APO and Service Final Rule.
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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.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
duty determination be accompanied by a request for extension of
provisional measures from a four-month period to a period not more than
six months in duration.
On November 21, 2023, the Coalition For Fair Trade in Shopping Bags
(the petitioner) timely requested that Commerce fully extend the
deadline for the final determination in the event of a negative
preliminary determination.\17\ On December 19, 2023, Dongzheng timely
requested that Commerce fully extend the deadline for the final
determination in the event of an affirmative preliminary
determination.\18\ In accordance with section 735(a)(2)(A) of the Act
and 19 CFR 351.210(b)(2)(ii), because: (1) the preliminary
determination is affirmative; (2) the requesting exporter accounts for
a significant proportion of exports of the subject merchandise; and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make its final determination no later than 135 days after
the date of
[[Page 347]]
publication of this preliminary determination, pursuant to section
735(a)(2) of the Act. Furthermore, as the final CVD determination has
been aligned with the final LTFV determination, Commerce will make its
final CVD determination no later than 135 days after the date of
publication of this preliminary determination.\19\
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\17\ See Petitioner's Letter, ``Request to Postpone Final
Determination,'' dated November 6, 2023.
\18\ See Dongzheng's Letter, ``Request to Extend Final
Determination,'' dated December 19, 2023.
\19\ See Certain Paper Shopping Bags from the People's Republic
of China and India: Preliminary Affirmative Countervailing Duty
Determination, Preliminary Affirmative Critical Circumstances
Determination, in Part, and Alignment of Final Determination with
Final Antidumping Duty Determination, 88 FR 76180 (November 6,
2023).
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U.S. International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. 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 these imports of the subject merchandise are
materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: December 27, 2023.
Abdelali Elouaradia,
Deputy 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> Paper sacks or bags (i) with non-paper handles made
wholly of woven ribbon or other similar woven fabric \20\ 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.
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\20\ Paper sacks or bags with handles made of braided or twisted
materials, such as rope or cord, do not qualify for this exclusion.
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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).
This 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. Period of Investigation
IV. Discussion of the Methodology
V. Critical Circumstances
VI. Adjustment Under Section 777A(f) of the Tariff Act of 1930, As
Amended
VII. Adjustment to Cash Deposit Rate for Export Subsidies
VIII. Currency Conversion
IX. Recommendation
[FR Doc. 2023-28938 Filed 1-2-24; 8:45 am]
BILLING CODE 3510-DS-P
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