Notice2024-01398
Certain Glass Wine Bottles From Chile, the People's Republic of China, and Mexico: Initiation of Less-Than-Fair-Value Investigations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 25, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 17 (Thursday, January 25, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 17 (Thursday, January 25, 2024)]
[Notices]
[Pages 4911-4916]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01398]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-337-808, A-570-162, A-201-862]
Certain Glass Wine Bottles From Chile, the People's Republic of
China, and Mexico: Initiation of Less-Than-Fair-Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable January 18, 2024.
FOR FURTHER INFORMATION CONTACT: Dusten Hom (Chile) at (202) 482-5075;
Frank Schmitt (the People's Republic of China (China)) at (202) 482-
4880; and Elizabeth Bremer (Mexico) at (202) 482-4987, AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On December 29, 2023, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of certain
glass wine bottles (wine bottles) from Chile, China, and Mexico filed
in proper form on behalf of the U.S. Glass Producers Coalition (the
petitioner).\1\ These AD Petitions were accompanied by a countervailing
duty (CVD) petition concerning imports of wine bottles from China.\2\
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Certain Glass Wine Bottles from
the People's Republic of China, the United Mexican States, and
Chile: Petitions for the Imposition of Antidumping and
Countervailing Duties,'' dated December 29, 2023 (the Petitions).
The members of the U.S. Glass Producers Coalition are Ardagh Glass
Inc. (Ardagh) and the United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union (USW).
\2\ Id.
---------------------------------------------------------------------------
Between January 3 and 11, 2024, Commerce requested supplemental
information pertaining to certain aspects of the Petitions in separate
supplemental questionnaires.\3\ The petitioner filed responses to the
supplemental questionnaires between January 8 and 12, 2024.\4\
---------------------------------------------------------------------------
\3\ See Commerce's Letter, ``Supplemental Questions,'' dated
January 3, 2024 (General Issues Questionnaire); see also Country-
Specific Supplemental Questionnaires: Chile Supplemental, dated
January 3, 2024; Country-Specific Supplemental Questionnaires: China
Supplemental and Mexico Supplemental, dated January 4, 2024;
Memorandum, ``Phone Call,'' dated January 10, 2024 (January 10
Memorandum); and Memorandum, ``Phone Call,'' dated January 11, 2024.
\4\ See Petitioner's Letters, ``Response to First Supplemental
Questions Regarding Common Issues and Injury Petition Volume I of
the Petitions,'' dated January 8, 2024 (First General Issues
Supplement); Country-Specific Supplemental Responses: Chile
Supplemental, Mexico Supplemental, and China Supplemental, dated
January 9 and 10, 2024; Second Chile and Mexico Supplemental
Responses, dated January 11, 2024; ``Response to Second Supplemental
Scope Questions Regarding Common Issues and Injury Petition Volume I
of the Petition,'' dated January 12, 2024 (Second General Issues
Supplement); and ``Second China Supplemental Response,'' dated
January 12, 2024.
---------------------------------------------------------------------------
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of wine bottles
from Chile, China, and Mexico are being, or are likely to be, sold in
the United States at less than fair value (LTFV) within the meaning of
section 731 of the Act, and that imports of such products are
materially injuring, or threatening material injury to, the wine
bottles industry in the United States. Consistent with section
732(b)(1) of the Act, the Petitions are accompanied by information
reasonably available to the petitioner supporting its allegations.
Commerce finds that the petitioner filed the Petitions on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(F) of the Act.\5\ Commerce also finds that
the petitioner demonstrated sufficient industry support for the
initiation of the requested LTFV investigations.\6\
---------------------------------------------------------------------------
\5\ The members of the U.S. Glass Producers Coalition (Ardagh
and the USW) are interested parties as defined under section
771(9)(C) and (D) of the Act, respectively.
\6\ See section on ``Determination of Industry Support for the
Petitions,'' infra.
---------------------------------------------------------------------------
Periods of Investigation
Because the Petitions were filed on December 29, 2023, pursuant to
19 CFR 351.204(b)(1), the period of investigation (POI) for the Chile
and Mexico LTFV investigations is October 1, 2022, through September
30, 2023. Because China is a non-market economy (NME) country, pursuant
to 19 CFR 351.204(b)(1), the POI for the China LTFV investigation is
April 1, 2023, through September 30, 2023.
Scope of the Investigations
The products covered by these investigations are wine bottles from
Chile, China, and Mexico. For a full description of the scope of these
investigations, see the appendix to this notice.
Comments on the Scope of the Investigations
On January 3 and 10, 2024, Commerce requested information and
clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petitions is an accurate
reflection of the products for which the domestic industry is seeking
relief.\7\ On January 8 and 12, 2024, the petitioner provided
clarifications and revised the scope.\8\ The description of merchandise
covered by these investigations, as described in the appendix to this
notice, reflects these clarifications.
---------------------------------------------------------------------------
\7\ See General Issues Questionnaire; see also January 10
Memorandum.
\8\ See First General Issues Supplement at 2-4 and Exhibits I-
Supp-4 and I-Supp-5; see also Second General Issues Supplement at 1-
3.
---------------------------------------------------------------------------
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for parties to raise issues
[[Page 4912]]
regarding product coverage (i.e., scope).\9\ Commerce will consider all
scope comments received from interested parties and, if necessary, will
consult with interested parties prior to the issuance of the
preliminary determinations. If scope comments include factual
information,\10\ all such factual information should be limited to
public information. To facilitate preparation of its questionnaires,
Commerce requests that scope comments be submitted by 5 p.m. Eastern
Time (ET) on February 7, 2024, which is 20 calendar days from the
signature date of this notice. Any rebuttal comments, which may include
factual information, must be filed by 5 p.m. ET on February 20, 2024,
which is the next business day after 10 calendar days from the initial
comment deadline.\11\
---------------------------------------------------------------------------
\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'').
\11\ The deadline for rebuttal comments falls on February 17,
2024, which is a Saturday. In accordance with 19 CFR 351.303(b)(1),
Commerce will accept rebuttal comments filed by 5 p.m. ET on
February 20, 2024. Id. (``For both electronically filed and manually
filed documents, if the applicable due date falls on a non-business
day, the Secretary will accept documents that are filed on the next
business day.'').
---------------------------------------------------------------------------
Commerce requests that any factual information that parties
consider relevant to the scope of these investigations be submitted
during that period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party must contact Commerce and
request permission to submit the additional information. All such
submissions must be filed on the records of each of the concurrent LTFV
and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\12\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------
\12\ 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 help using
ACCESS can be found at <a href="https://access.trade.gov/help.aspx">https://access.trade.gov/help.aspx</a> and a
handbook can be found at <a href="https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf">https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf</a>.
---------------------------------------------------------------------------
Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of wine bottles to be
reported in response to Commerce's AD questionnaires. This information
will be used to identify the key physical characteristics of the
subject merchandise in order to report the relevant factors of
production (FOP) or costs of production (COP) accurately, as well as to
develop appropriate product comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) general product
characteristics; and (2) product comparison criteria. We note that it
is not always appropriate to use all product characteristics as product
comparison criteria. We base product comparison criteria on meaningful
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe wine bottles, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, Commerce attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all product
characteristics comments must be filed by 5 p.m. ET on February 7,
2024, which is 20 calendar days from the signature date of this
notice.\13\ Any rebuttal comments must be filed by 5 p.m. ET on
February 20, 2024, which is the next business day after 10 calendar
days from the initial comment deadline.\14\ All comments and
submissions to Commerce must be filed electronically using ACCESS, as
explained above, on the record of each of the AD investigations.
---------------------------------------------------------------------------
\13\ See 19 CFR 351.303(b)(1).
\14\ The deadline for rebuttal comments falls on February 17,
2024, which is a Saturday. In accordance with 19 CFR 351.303(b)(1),
Commerce will accept rebuttal comments filed by 5 p.m. ET on
February 20, 2024. Id. (``For both electronically filed and manually
filed documents, if the applicable due date falls on a non-business
day, the Secretary will accept documents that are filed on the next
business day.'').
---------------------------------------------------------------------------
Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(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 732(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.''
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,\15\ 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.\16\
---------------------------------------------------------------------------
\15\ See section 771(10) of the Act.
\16\ 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)).
---------------------------------------------------------------------------
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
[[Page 4913]]
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 petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigations.\17\ Based on our analysis of the information
submitted on the record, we have determined that wine bottles, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\18\
---------------------------------------------------------------------------
\17\ See Petitions at Volume I (pages 12-15); see also Second
General Issues Supplement at 3.
\18\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Antidumping Duty Investigation Initiation Checklists: Certain
Glass Wine Bottles from Chile, the People's Republic of China, and
Mexico, dated concurrently with this notice (Country-Specific AD
Initiation Checklists) at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing Duty Petitions
Covering Certain Glass Wine Bottles from Chile, the People's
Republic of China, and Mexico (Attachment II). These checklists are
on file electronically via ACCESS.
---------------------------------------------------------------------------
In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in the appendix to
this notice. To establish industry support, the petitioner provided the
total 2022 production of the domestic like product for the U.S.
producers that support the Petitions and compared this to the estimated
total 2022 production of the domestic like product for the entire
domestic industry.\19\ We relied on the data provided by the petitioner
for purposes of measuring industry support.\20\
---------------------------------------------------------------------------
\19\ See Petitions at Volume I (pages 2-3 and Exhibits I-3 and
I-4); see also First General Issues Supplement at 5-6 and Exhibits
I-Supp-6 through I-Supp-9.
\20\ See Petitions at Volume I (pages 2-3 and Exhibits I-3 and
I-4); see also First General Issues Supplement at 5-6 and Exhibits
I-Supp-6 through I-Supp-9; and Second General Issues Supplement at
3-4. For further discussion, see Attachment II of the Country-
Specific AD Initiation Checklists.
---------------------------------------------------------------------------
Our review of the data provided in the Petitions, the First General
Issues Supplement, the Second General Issues Supplement, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the Petitions.\21\ First, the
Petitions 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 732(c)(4)(A)(i)
of the Act because the domestic producers (or workers) who support the
Petitions 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 732(c)(4)(A)(ii) of the Act because the domestic producers (or
workers) who support the Petitions 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
Petitions.\24\ Accordingly, Commerce determines that the Petitions were
filed on behalf of the domestic industry within the meaning of section
732(b)(1) of the Act.\25\
---------------------------------------------------------------------------
\21\ See Petitions at Volume I (pages 2-3 and Exhibits I-3 and
I-4); see also First General Issues Supplement at 5-6 and Exhibits
I-Supp-6 through I-Supp-9; and Second General Issues Supplement at
3-4. For further discussion, see Attachment II of the Country-
Specific AD Initiation Checklists.
\22\ See Attachment II of the Country-Specific AD Initiation
Checklists; see also section 732(c)(4)(D) of the Act.
\23\ See Attachment II of the Country-Specific AD Initiation
Checklists.
\24\ Id.
\25\ Id.
---------------------------------------------------------------------------
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\26\
---------------------------------------------------------------------------
\26\ See Petitions at Volume I (pages 20-21 and Exhibit I-22).
---------------------------------------------------------------------------
The petitioner contends that the industry's injured condition is
illustrated by the significant volume and market share of subject
imports; underselling and price depression and/or suppression; lost
sales and revenues; negative impact on the domestic industry's
production and shipments; layoffs; and declining financial
performance.\27\ We assessed the allegations and supporting evidence
regarding material injury, threat of material injury, causation, 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\
---------------------------------------------------------------------------
\27\ Id. at Volume I (pages 15-30 and Exhibits I-14 and I-19
through I-29); see also General Issues Supplement at 6 and Exhibit
I-Supp-10.
\28\ See Country-Specific AD Initiation Checklists at Attachment
III, Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Certain Glass Wine Bottles from Chile, the People's
Republic of China, and Mexico.
---------------------------------------------------------------------------
Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate LTFV investigations
of imports of wine bottles from Chile, China, and Mexico. The sources
of data for the deductions and adjustments relating to U.S. price and
normal value (NV) are discussed in greater detail in the Country-
Specific AD Initiation Checklists.
U.S. Price
For Chile, China, and Mexico, the petitioner based export price
(EP) on pricing information for sales of, or offers for sale of, wine
bottles produced in and exported from each country.\29\ For each
country, the petitioner made certain adjustments to U.S. price to
calculate a net ex-factory U.S. price, where applicable.\30\
---------------------------------------------------------------------------
\29\ See Country-Specific AD Initiation Checklists.
\30\ Id.
---------------------------------------------------------------------------
Normal Value <SUP>31</SUP>
---------------------------------------------------------------------------
\31\ In accordance with section 773(b)(2) of the Act, for the
Chile and Mexico investigations, Commerce will request information
necessary to calculate the constructed value (CV) and COP to
determine whether there are reasonable grounds to believe or suspect
that sales of the foreign like product have been made at prices that
represent less than the COP of the product.
---------------------------------------------------------------------------
For Chile and Mexico, the petitioner stated that it was unable to
obtain home market or third country pricing information for wine
bottles to use as a basis for NV.\32\ Therefore, for Chile and Mexico,
the petitioner calculated NV based on CV.\33\ For further discussion of
CV, see the section ``Normal Value Based on Constructed Value,'' below.
---------------------------------------------------------------------------
\32\ See Country-Specific AD Initiation Checklists.
\33\ Id.
---------------------------------------------------------------------------
Commerce considers China to be an NME county.\34\ In accordance
with section 771(18)(C)(i) of the Act, any determination that a foreign
country is an NME country shall remain in effect
[[Page 4914]]
until revoked by Commerce. Therefore, we continue to treat China as an
NME country for purposes of the initiation of these investigations.
Accordingly, we base NV on FOPs valued in a surrogate market economy
country in accordance with section 773(c) of the Act.
---------------------------------------------------------------------------
\34\ See, e.g., Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Preliminary Affirmative
Determination of Sales at Less Than Fair Value and Preliminary
Affirmative Determination of Critical Circumstances, 88 FR 15372
(March 13, 2023), and accompanying Preliminary Decision Memorandum
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Final Affirmative Determination
of Sales at Less-Than-Fair Value and Final Affirmative Determination
of Critical Circumstances, 88 FR 34485 (May 30, 2023).
---------------------------------------------------------------------------
The petitioner claims that Chile is an appropriate surrogate
country for China because it is a market economy that is at a level of
economic development comparable to that of China and is a significant
producer of identical and comparable merchandise.\35\ The petitioner
provided publicly available information from Chile to value all
FOPs.\36\ Based on the information provided by the petitioner, we
believe it is appropriate to use Chile as a surrogate country to value
all FOPs for initiation purposes.
---------------------------------------------------------------------------
\35\ See China AD Initiation Checklist.
\36\ Id.
---------------------------------------------------------------------------
Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
Because information regarding the volume of inputs consumed by
Chinese producers/exporters was not reasonably available, the
petitioner used product-specific consumption rates from a U.S. producer
of wine bottles as a surrogate to value Chinese manufacturers'
FOPs.\37\ Additionally, the petitioner calculated factory overhead,
SG&A, and profit based on the experience of a Chilean producer of
comparable merchandise.\38\
---------------------------------------------------------------------------
\37\ Id.
\38\ Id.
---------------------------------------------------------------------------
Normal Value Based on Constructed Value
As noted above for Chile and Mexico, the petitioner stated that it
was unable to obtain home market or third-country prices for wine
bottles to use as a basis for NV. Therefore, for these countries, the
petitioner calculated NV based on CV.\39\
---------------------------------------------------------------------------
\39\ See Country-Specific AD Initiation Checklists.
---------------------------------------------------------------------------
Pursuant to section 773(e) of the Act, the petitioner calculated CV
as the sum of the cost of manufacturing, SG&A, financial expenses, and
profit.\40\ For each of these countries, in calculating the cost of
manufacturing, the petitioner relied on the production experience and
input consumption rates of a U.S. producer of wine bottles, valued
using publicly available information applicable to the respective
countries.\41\ In calculating SG&A, financial expenses, and profit
ratios, the petitioner relied on the calendar year 2022 financial
statements of a producer of identical or comparable merchandise
domiciled in each respective subject country.\42\
---------------------------------------------------------------------------
\40\ Id.
\41\ Id.
\42\ Id.
---------------------------------------------------------------------------
Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of wine bottles from Chile, China, and Mexico are
being, or are likely to be, sold in the United States at LTFV. Based on
comparisons of EP to NV in accordance with sections 772 and 773 of the
Act, the estimated dumping margins for wine bottles for each of the
countries covered by this initiation are as follows: (1) Chile--609.71
percent; (2) China--284.53 to 301.12 percent; and (3) Mexico--79.83 to
96.95 percent.\43\
---------------------------------------------------------------------------
\43\ Id.
---------------------------------------------------------------------------
Initiation of LTFV Investigations
Based upon the examination of the Petitions and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating LTFV investigations to determine
whether imports of wine bottles from Chile, China, and Mexico are
being, or are likely to be, sold in the United States at LTFV. In
accordance with section 733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determinations no later than 140 days after the date of these
initiations.
Respondent Selection
Chile and Mexico
In the Petitions, the petitioner identified three companies in
Chile and seven companies in Mexico as producers/exporters of wine
bottles.\44\ Following standard practice in LTFV investigations
involving market economy countries, in the event Commerce determines
that the number of companies is large, and it cannot individually
examine each company based upon Commerce's resources, where
appropriate, Commerce intends to select mandatory respondents based on
U.S. Customs and Border Protection (CBP) data for imports under the
appropriate Harmonized Tariff Schedule of the United States (HTSUS)
subheading(s) listed in the ``Scope of the Investigations,'' in the
appendix.
---------------------------------------------------------------------------
\44\ See Petitions at Volume I (page 10 and Exhibits I-12 and I-
13); see also First General Issues Supplement at 1 and Exhibits I-
Supp-1 and I-Supp-2.
---------------------------------------------------------------------------
On January 16, 2024, Commerce released CBP data on imports of wine
bottles from Chile and Mexico under administrative protective order
(APO) to all parties with access to information protected by APO and
indicated that interested parties wishing to comment on CBP data and/or
respondent selection must do so within three business days of the
publication date of the notice of initiation of these
investigations.\45\ Comments must be filed electronically using ACCESS.
An electronically filed document must be received successfully in its
entirety via ACCESS by 5 p.m. ET on the specified deadline. Commerce
will not accept rebuttal comments regarding the CBP data or respondent
selection.
---------------------------------------------------------------------------
\45\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated January 12, 2024; see also
Memorandum, ``Release of U.S. Customs and Border Protection Data,''
dated January 16, 2023; and Memorandum, ``Certain Glass Wine Bottles
from the People's Republic of China: Release of U.S. Customs and
Border Protection Entry Data,'' dated January 16, 2024.
---------------------------------------------------------------------------
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on Commerce's website at <a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
China
In the Petitions, the petitioner named 36 companies in China as
producers and/or exporters of wine bottles.\46\ Our standard practice
for respondent selection in AD investigations involving NME countries
is to select respondents based on Q&V questionnaires in cases where it
has determined that the number of companies is large and it cannot
individually examine each company based upon its resources. Therefore,
considering the number of producers and/or exporters identified in the
Petitions, Commerce will solicit Q&V information that can serve as a
basis for selecting exporters for individual examination in the event
that Commerce determines that the number is large and decides to limit
the number of respondents individually examined pursuant to section
777A(c)(2) of the Act. Because there are 36 Chinese producers and/or
exporters identified in the Petitions, Commerce has determined that it
will issue Q&V questionnaires to the largest producers and/or exporters
that are identified in the CBP data for which there is complete address
information on the record.
---------------------------------------------------------------------------
\46\ See Petitions at Volume I (page 10 and Exhibit I-11); see
also First General Issues Supplement at 1 and Exhibit I-Supp-3.
---------------------------------------------------------------------------
Commerce will post the Q&V questionnaires along with filing
[[Page 4915]]
instructions on Commerce's website at <a href="https://www.trade.gov/ec-adcvd-case-announcements">https://www.trade.gov/ec-adcvd-case-announcements</a>. Producers/exporters of wine bottles from China that
do not receive Q&V questionnaires may still submit a response to the
Q&V questionnaire and can obtain a copy of the Q&V questionnaire from
Commerce's website. Responses to the Q&V questionnaire must be
submitted by the relevant Chinese producers/exporters no later than
5:00 p.m. ET on February 1, 2024, which is two weeks from the signature
date of this notice. All Q&V questionnaire responses must be filed
electronically via ACCESS. An electronically filed document must be
received successfully, in its entirety, by ACCESS no later than 5:00
p.m. ET on the deadline noted above.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). As stated above, instructions
for filing such applications may be found on Commerce's website at
<a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
Separate Rates
In order to obtain separate rate status in an NME investigation,
exporters and producers must submit a separate rate application. The
specific requirements for submitting a separate rate application in an
NME investigation are outlined in detail in the application itself,
which is available on Commerce's website at <a href="https://access.trade.gov/Resources/nme/nme-sep-rate.html">https://access.trade.gov/Resources/nme/nme-sep-rate.html</a>. The separate rate application will be
due 30 days after publication of this initiation notice. Exporters and
producers must file a timely separate rate application if they want to
be considered for individual examination. Exporters and producers who
submit a separate rate application and have been selected as mandatory
respondents will be eligible for consideration for separate rate status
only if they respond to all parts of Commerce's AD questionnaire as
mandatory respondents. Commerce requires that companies from China
submit a response both to the Q&V questionnaire and to the separate
rate application by the respective deadlines in order to receive
consideration for separate rate status. Companies not filing a timely
Q&V questionnaire response will not receive separate rate
consideration.
Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that {Commerce{time}
will now assign in its NME Investigation will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the {weighted average{time} of the individually
calculated rates. This practice is referred to as the application of
``combination rates'' because such rates apply to specific
combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise
both exported by the firm in question and produced by a firm that
supplied the exporter during the period of investigation.\47\
---------------------------------------------------------------------------
\47\ See Enforcement and Compliance's Policy Bulletin 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigation involving NME Countries,'' (April
5, 2005) at 6 (emphasis added), available on Commerce's website at
<a href="https://access.trade.gov/Resources/policy/bull05-1.pdf">https://access.trade.gov/Resources/policy/bull05-1.pdf</a>.
---------------------------------------------------------------------------
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the governments of Chile, China, and Mexico via ACCESS. To
the extent practicable, we will attempt to provide a copy of the public
version of the Petitions to each exporter named in the Petitions, as
provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of our initiation, as required by
section 732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of wine bottles from Chile, China, and/or
Mexico are materially injuring, or threatening material injury to, a
U.S. industry.\48\ A negative ITC determination for any country will
result in the investigation being terminated with respect to that
country.\49\ Otherwise, these LTFV investigations will proceed
according to statutory and regulatory time limits.
---------------------------------------------------------------------------
\48\ See section 733(a) of the Act.
\49\ Id.
---------------------------------------------------------------------------
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 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 \50\ 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.\51\ 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 these investigations.
---------------------------------------------------------------------------
\50\ See 19 CFR 351.301(b).
\51\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------
Particular Market Situation Allegation
Section 773(e) of the Act addresses the concept of particular
market situation (PMS) for purposes of CV, stating that ``if a
particular market situation exists such that the cost of materials and
fabrication or other processing of any kind does not accurately reflect
the cost of production in the ordinary course of trade, the
administering authority may use another calculation methodology under
this subtitle or any other calculation methodology.'' When an
interested party submits a PMS allegation pursuant to section 773(e) of
the Act, Commerce will respond to such a submission consistent with 19
CFR 351.301(c)(2)(v). If Commerce finds that a PMS exists under section
773(e) of the Act, then it will modify its dumping calculations
appropriately.
Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set
a deadline for the submission of PMS allegations and supporting factual
information. However, in order to administer section 773(e) of the Act,
Commerce must receive PMS allegations and supporting factual
information with enough time to consider the submission. Thus, should
an interested party wish to submit a PMS allegation and supporting new
factual information pursuant to section 773(e) of the Act, it must do
so no later than 20 days after submission of a
[[Page 4916]]
respondent's initial section D questionnaire response.
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.\52\ 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 these investigations.\53\
---------------------------------------------------------------------------
\52\ 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 <a href="https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm</a>.
\53\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
---------------------------------------------------------------------------
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\54\
Parties must use the certification formats provided in 19 CFR
351.303(g).\55\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
---------------------------------------------------------------------------
\54\ See section 782(b) of the Act.
\55\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional
information regarding the Final Rule is available at <a href="https://access.trade.gov/Resources/filing/index.html">https://access.trade.gov/Resources/filing/index.html</a>.
---------------------------------------------------------------------------
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 these investigations should ensure that they meet the requirements
of 19 CFR 351.103(d) (e.g., by filing the required letter of
appearance). Note that Commerce has modified certain of its
requirements for serving documents containing business proprietary
information.\56\
---------------------------------------------------------------------------
\56\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
---------------------------------------------------------------------------
This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: January 18, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigations
The merchandise covered by the investigations is certain narrow
neck glass bottles, with a nominal capacity of 740 milliliters
(25.02 ounces) to 760 milliliters (25.70 ounces); a nominal total
height between 24.8 centimeters (9.75 inches) to 35.6 centimeters
(14 inches); a nominal base diameter between 4.6 centimeters (1.8
inches) to 11.4 centimeters (4.5 inches); and a mouth with an outer
diameter of between 25 millimeters (.98 inches) to 37.9 millimeters
(1.5 inches); frequently referred to as a ``wine bottle.'' In scope
merchandise may include but is not limited to the following shapes:
Bordeaux (also known as ``Claret''), Burgundy, Hock, Champagne,
Sparkling, Port, Provence, or Alsace (also known as ``Germanic'').
In scope glass bottles generally have an approximately round base
and have shapes including but not limited to, straight-sided, a
tapered slope from shoulder (i.e., the sloping part of the bottle
between the neck and the body) to base, or a long neck with sloping
shoulders to a wider base. The scope includes glass bottles, whether
or not clear, whether or not colored, with or without a punt (i.e.,
an indentation on the underside of the bottle), and with or without
design or functional enhancements (including, but not limited to,
embossing, labeling, or etching). In scope merchandise is made of
non-``free blown'' glass, i.e., in scope merchandise is produced
with the use of a mold and is distinguished by mold seams, joint
marks, or parting lines. In scope merchandise is unfilled and may be
imported with or without a closure, including a cork, stelvin (screw
cap), crown cap, or wire cage and cork closure.
Excluded from the scope of the investigations are: (1) glass
containers made of borosilicate glass, meeting United States
Pharmacopeia requirements for Type 1 pharmaceutical containers; and
(2) glass containers without a ``finish'' (i.e., the section of a
container at the opening including the lip and ring or collar,
threaded or otherwise compatible with a type of closure, including
but not limited to a cork, stelvin (screw cap), crown cap, or wire
cage and cork closure).
Glass bottles subject to the investigations are specified within
the Harmonized Tariff Schedule of the United States (HTSUS) under
subheading 7010.90.5019. The HTSUS subheading is provided for
convenience and customs purposes only. The written description of
the scope of the investigations is dispositive.
[FR Doc. 2024-01398 Filed 1-24-24; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on January 25, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.