Notice2024-11481
Certain Paper Shopping Bags From India: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, in Part
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
May 24, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) 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.
Full Text
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<title>Federal Register, Volume 89 Issue 102 (Friday, May 24, 2024)</title>
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[Federal Register Volume 89, Number 102 (Friday, May 24, 2024)]
[Notices]
[Pages 45834-45837]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-11481]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-918]
Certain Paper Shopping Bags From India: Final Affirmative
Countervailing Duty Determination and Final Affirmative Critical
Circumstances Determination, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) 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.
DATES: Applicable May 24, 2024.
FOR FURTHER INFORMATION CONTACT: Drew Jackson or Paul Kebker, 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) 482-4406 or (202) 482-2254,
respectively.
SUPPLEMENTARY INFORMATION:
[[Page 45835]]
Background
On November 6, 2023, Commerce published the Preliminary
Determination in the Federal Register.\1\ Commerce invited parties to
comment on the Preliminary Determination.\2\ For a complete description
of the events that followed the Preliminary Determination, see the
Issues and Decision Memorandum.\3\ The Issues and 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 Issues
and Decision Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\1\ See 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, 88 FR 76185 (November 6, 2023)(Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ Id.
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Certain Paper Shopping Bags from India,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
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 the investigation,
see Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from parties. Commerce issued a Preliminary Scope Decision
Memorandum to address these comments and set aside a period of time for
parties to address scope issues in scope-specific case and rebuttal
briefs.\4\ We received comments from interested parties on the
Preliminary Scope Decision Memorandum, which we addressed in the Final
Scope Decision Memorandum.\5\ As a result of these comments, we made
certain changes to the scope of this investigation from that published
in the Preliminary Determination. See Appendix I.
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\4\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of 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: Preliminary Scope Decision Memorandum,'' dated December 27,
2023 (Preliminary Scope Decision Memorandum).
\5\ See Memorandum, ``Less-Than-Fair Value and Countervailing
Duty Investigations of 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: Final Scope Decision Memorandum,'' dated March 11, 2024
(Final Scope Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs by parties in this investigation, are
discussed in the Issues and Decision Memorandum. For a list of the
issues raised by parties, and to which we responded in the Issues and
Decision Memorandum, see Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found to be countervailable, Commerce 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.\6\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\6\ 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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Verification
Consistent with section 782(i) of the Act, in January 2024,
Commerce verified all information reported by Aeroplast Packaging
Solution Private Limited (Aeroplast Packaging),\7\ Velvin Paper
Products (Velvin Paper), and the Government of India (GOI). We used
standard verification procedures, including an examination of relevant
account records and original source documents provided by the
respondents.\8\
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\7\ In the Preliminary Determination, Commerce identified this
respondent as ``Aero Plast Packaging Solutions Private Limited.''
Commerce has corrected the name of this respondent. See Issues and
Decision Memorandum at Comment 5.
\8\ See Memoranda, ``Verification of the Questionnaire Responses
of the Government of India,'' dated March 22, 2024; ``Verification
of the Questionnaire Responses of Aeroplast Packaging Solution
Private Limited,'' dated March 22, 2024; and ``Verification of the
Questionnaire Responses of Velvin Paper Products,'' dated March 22,
2024.
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Final Affirmative Determination of Critical Circumstances, in Part
In accordance with sections 705(a)(2), and 776(a) and (b) of the
Act, and 19 CFR 351.206, as well as our analysis of comments received
regarding our affirmative preliminary determination of critical
circumstances,\9\ Commerce continues to find that critical
circumstances exist with respect to imports of paper bags from India
for one of the mandatory respondents, Velvin Paper. In addition, we
continue to find that critical circumstances do not exist with respect
to imports of paper bags from Aeroplast Packaging Solution Private
Limited (Aeroplast Packaging) and all other companies not individually
examined. For a full description of the methodology and results of
Commerce's critical circumstances analysis, see the Issues and Decision
Memorandum.
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\9\ See Preliminary Determination PDM.
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Changes Since the Preliminary Determination and Post-Preliminary
Analysis
Based on our review and analysis of the information received during
verification and comments received from parties, for this final
determination, we made certain changes to the countervailable subsidy
rate calculations for Aeroplast Packaging, Velvin Paper, and for all
other producers/exporters. For a discussion of these changes, see the
Issues and Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated an individual estimated countervailable subsidy rate for the
two mandatory respondents, Aeroplast Packaging and Velvin Paper.
Section 705(c)(5)(A)(i) of the Act states that, for companies not
individually investigated, Commerce will determine an all-others rate
equal to the weighted-average countervailable subsidy rates established
for exporters and/or producers individually investigated, excluding any
zero and de minimis countervailable subsidy rates, and any rates
determined entirely under section 776 of the Act.
We continue to calculate individual estimated countervailable
subsidy rates for Aeroplast Packaging and Velvin Paper that are not
zero, de minimis, or based entirely on facts otherwise available. We,
therefore, continue to calculate the all-others rate using a weighted
average of the individual estimated subsidy rates calculated for the
examined respondents (Aeroplast Packaging and Velvin Paper) using each
company's publicly-ranged sales value for their exports to the United
States of subject merchandise,\10\ in accordance with section
705(c)(5)(A)(i) of the Act.
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\10\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale quantities for the merchandise under consideration. Commerce
then compares (B) and (C) to (A) and selects the rate closest to (A)
as the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010); see also Forged Steel Fluid End Blocks from
Italy: Preliminary Affirmative Countervailing Duty Determination,
and Alignment of Final Determination with Final Antidumping Duty
Determination, 85 FR 31460, 31461 (May 26, 2020), unchanged in
Forged Steel Fluid End Blocks from Italy: Final Affirmative
Countervailing Duty Determination, 85 80022, 80023 (December 11,
2020).
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[[Page 45836]]
FOR FURTHER INFORMATION CONTACT:
Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist for the period January 1, 2022,
through December 31, 2022:
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\11\ Aeroplast Packaging Solution Private Limited is cross-owned
with Aero Business Solutions Private Limited and Aero Plast Limited.
\12\ 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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Aeroplast Packaging Solution Private Limited \11\....... 4.81
Velvin Paper Products \12\.............................. 2.38
All Others.............................................. 3.39
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Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this final 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 the
Federal Register, accordance with 19 CFR 351.244(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
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 November 6, 2023, the date of
publication of the Preliminary Determination in the Federal Register.
Because we preliminarily determined that critical circumstances existed
with respect to Velvin Paper, we instructed CBP to suspend such entries
on or after August 8, 2023, which is 90 days prior to the date of the
publication of the Preliminary Determination in the Federal
Register.\13\ In accordance with section 703(d) of the Act, on March 4,
2024, we instructed CBP to discontinue the suspension of liquidation of
all entries of subject merchandise entered or withdrawn from warehouse,
on or after March 5, 2024, but to continue the suspension of
liquidation of all entries of subject merchandise on or before March 4,
2024.
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\13\ See Preliminary Determination.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate the suspension of liquidation under section 706(a) of
the Act, and require a cash deposit of estimated countervailing duties
for such entries of subject merchandise in the amounts indicated above.
If the ITC determines that material injury, or threat of material
injury, does not exist, this proceeding will be terminated, and all
estimated duties deposited or securities posted as a result of the
suspension of liquidation will be refunded or cancelled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of paper bags
from India. As Commerce's final determination is affirmative, in
accordance with section 705(b) of the Act, the ITC will determine,
within 45 days, whether the domestic industry in the United States is
materially injured, or threated with material injury, by reason of
import of certain paper shopping bags from India. In addition, we are
making available to the ITC all non-privileged and non-proprietary
information in our files, provided the ITC confirms that it will not
disclose such information, either publicly or under administrative
protective order (APO), without the written consent of the Assistant
Secretary for Enforcement and Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise that are entered, or withdrawn,
for consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO, in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: May 17, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the 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
[[Page 45837]]
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 \14\ 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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\14\ 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 Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Determination of Critical Circumstances, in Part
V. Subsidies Valuation
VI. Changes Since the Preliminary Determination
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Whether Commerce Correctly Calculated the Benefits
Under Advance License Program (AAP)
Comment 2(a):Whether Remission of Duties and Taxes on Export
Products (RODTEP) Is Countervailable
Comment 2(b):Whether Commerce Incorrectly Calculated the
Benefits Under the RODTEP Program
Comment 3: Whether Duty Drawback (DDB) Is Countervailable
Comment 4: Whether Commerce Has Incorrectly Calculated Benefits
Under the Government of Haryana's Freight Assistance Scheme (FAS)
Comment 5: Whether Commerce Should Correct the Spelling of
Aeroplast Packaging Solution Private Limited
IX. Recommendation
[FR Doc. 2024-11481 Filed 5-23-24; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on May 24, 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.