Notice2024-12114
Certain Glass Wine Bottles From the People's Republic of China: Preliminary Affirmative Countervailing Duy Determination and Preliminary Affirmative Determination of Critical Circumstances
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
June 3, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain glass wine bottles from the People's Republic of China (China). The period of investigation (POI) is January 1, 2022, through December 31, 2022. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 107 (Monday, June 3, 2024)</title>
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[Federal Register Volume 89, Number 107 (Monday, June 3, 2024)]
[Notices]
[Pages 47533-47536]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-12114]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-163]
Certain Glass Wine Bottles From the People's Republic of China:
Preliminary Affirmative Countervailing Duy Determination and
Preliminary Affirmative Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain glass wine bottles from the People's
Republic of China (China). The period of investigation (POI) is January
1, 2022, through December 31, 2022. Interested parties are invited to
comment on this preliminary determination.
DATES: Applicable June 3, 2024.
FOR FURTHER INFORMATION CONTACT: Preston Cox or Theodora Mattei, 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) 482-5041 or (202) 482-4834,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this countervailing duty (CVD)
investigation on January 18, 2024.\1\ On March 8, 2024, Commerce
postponed the preliminary determination until May 28, 2024.\2\
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\1\ See Certain Glass Wine Bottles from the People's Republic of
China: Initiation of Countervailing Duty Investigation, 89 FR 4905
(January 18, 2024) (Initiation Notice).
\2\ See Certain Glass Wine Bottles from the People's Republic of
China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 89 FR 16723 (March 8, 2024).
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For a complete description of events that followed the initiation
of this investigation, see the Preliminary Decision Memorandum.\3\ A
list of topics discussed in the Preliminary Decision Memorandum is
included as Appendix II to this notice. The Preliminary Decision
Memorandum is a public document and is on file electronically via
Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). ACCESS is available to
registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Certain Glass Wine Bottles 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 certain glass wine
bottles from China. For a complete description of the scope of this
investigation, see Appendix I.
[[Page 47534]]
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ To date, numerous
interested parties have commented on the scope of the antidumping duty
(AD) and countervailing duty investigations as it appeared in the
Initiation Notice. For a summary of the product coverage comments and
rebuttal comments submitted to the record for this preliminary
determination, and accompanying discussion and analysis of all comments
received, see the Preliminary Scope Memorandum.\6\ We have
preliminarily not made any changes to the scope language as it appeared
in the Initiation Notice.
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\4\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Less-than-Fair Value Investigations of
Glass Wine Bottles from the People's Republic of China, Chile, and
Mexico and Countervailing Duty Investigation of Glass Wine Bottles
from the People's Republic of China: Preliminary Scope Decision
Memorandum,'' dated concurrently with, and hereby adopted by, this
notice (Preliminary Scope Decision Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\7\ For a full description of the methodology underlying our
preliminary determination, see the Preliminary Decision Memorandum.
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\7\ 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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Moreover, Commerce notes that, in making its findings of
countervailability, it relied, in part, on facts available, and,
because it finds that certain of the respondents and the Government of
China failed to cooperate by not acting to the best of their abilities
to respond to Commerce's requests for information, it drew an adverse
inference where appropriate in selecting from among the facts otherwise
available.\8\ For further information, see the ``Use of Facts Otherwise
Available and Adverse Inferences'' section in the Preliminary Decision
Memorandum.
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\8\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination of Critical Circumstances
In accordance with section 703(e)(1) of the Act, we preliminarily
find that critical circumstances exist with respect to imports of
subject merchandise for Shandong Changyu Glass Co., Ltd. (Shandong
Changyu), the non-responsive companies, and all other producers and/or
exporters. For a full discussion of our preliminary critical
circumstances determination, see the ``Critical Circumstances'' section
of the Preliminary Decision Memorandum.
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
rates that are zero, de minimis, or based entirely under section 776 of
the Act.
In this investigation, Commerce preliminarily calculated an
individual estimated countervailable subsidy rate for Shandong Changyu,
the only individually-examined exporter/producer in this investigation
for which Commerce is calculating an estimated countervailable subsidy
rate. Because the only individually calculated rate is not zero, de
minimis, or based entirely on facts otherwise available, the estimated
countervailable subsidy rate calculated for Shandong Changyu is the
rate assigned to all other producers and exporters, pursuant to section
705(c)(5)(A)(i) of the Act.
Rate for Non-Responsive Companies
Eight potential exporters and/or producers of wine bottles from
China did not respond to Commerce's quantity and value (Q&V)
questionnaire (i.e., the non-responsive companies).\9\ We find that, by
not responding to the Q&V questionnaire, these companies withheld
requested information and significantly impeded this proceeding. Thus,
in reaching our preliminary determination, pursuant to sections
776(a)(2)(A) and (C) of the Act, we are basing the CVD subsidy rate for
the non-responsive companies on facts otherwise available.
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\9\ The companies that failed to respond to Commerce's quantity
and value questionnaire are: (1) Bright Glassware, (2) Boliva
International Ltd.; (3) Shandong Dingxin Electronic; (4) Wenden
Wensheng Glass Co., Ltd.; (5) Wuixi Hua Zhong Glass Co. Ltd.; (6)
Yamamura Glass Qinhuangdao; (7) Xiamen Jane Jonson Co. Ltd.; and (8)
Zibo Regal Glass Products Co. Ltd. We refer to these companies,
collectively, as the ``non-responsive companies.''
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We further preliminarily determine that an adverse inference is
warranted, pursuant to section 776(b) of the Act. By failing to submit
responses to Commerce's Q&V Questionnaire, the non-responsive companies
did not cooperate to the best of their ability in this investigation.
Accordingly, we preliminarily find that an adverse inference is
warranted to ensure that the non-responsive companies will not obtain a
more favorable result than had they fully complied with our request for
information. For more information on the application of adverse facts
available to the non-responsive companies, see ``Use of Facts Otherwise
Available and Adverse Inferences'' in the Preliminary Determination
Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Shandong Changyu Glass Co., Ltd......................... 21.14
Boliva International Limited............................ * 202.70
Bright Glassware........................................ * 202.70
Shandong Dingxin Electronic............................. * 202.70
Wenden Wensheng Glass Co., Ltd.......................... * 202.70
Wuixi Hua Zhong Glass Co. Ltd........................... * 202.70
Xiamen Jane Jonson Co. Ltd.............................. * 202.70
Yamamura Glass Qinhuangdao.............................. * 202.70
Zibo Regal Glass Products Co. Ltd....................... * 202.70
All Others.............................................. 21.14
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* Rate based on adverse facts available.
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
accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR
[[Page 47535]]
351.205(d), Commerce will instruct CBP to require a cash deposit equal
to the rates indicated above.
Section 703(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 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 produced and/or exported by for Shandong Changyu, the non-
responsive companies, and all other producers and/or exporters. In
accordance with section 703(e)(2)(A) of the Act, the suspension of
liquidation shall apply to unliquidated entries of merchandise from the
exporters/producers identified in this paragraph that were entered, or
withdrawn from warehouse, for consumption on or after the date which is
90 days before the publication of this notice.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
All interested parties are invited to comment on the preliminary
scope decision made in this investigation, according to the schedule
provided in the Preliminary Scope Decision Memorandum. The Preliminary
Scope Decision Memorandum provides the schedule for parties to comment
on the preliminary scope decision. For all scope case and rebuttal
briefs, parties must file identical documents simultaneously on the
records of the ongoing companion AD and CVD investigations. No new
factual information or business proprietary information may be included
in either scope case or rebuttal briefs.
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than seven days after the date on which the last 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.\10\ 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.\11\
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\10\ 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).
\11\ See 19 CFR 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.
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).\12\
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\12\ 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 via ACCESS
within 30 days after the date of publication of this notice. Requests
should contain the party's name, address, and telephone number, the
number of participants, and a list of the issues to be discussed. Oral
presentations at the hearing will be limited to issues raised in the
briefs. If a request for a hearing is made, parties will be notified of
the time and date for the hearing.\13\ Parties should confirm by
telephone the date, time, and location of the hearing two days before
the scheduled date.
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\13\ See 19 CFR 351.310(d).
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U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination whether imports of certain
glass wine bottles from China 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 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: May 28, 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 merchandise covered by the investigation 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 investigation 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 investigation 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
[[Page 47536]]
customs purposes only. The written description of the scope of the
investigation is dispositive.
Appendix II--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Injury Test
IV. Analysis of China's Financial System
V. Diversification of China's Economy
VI. Critical Circumstances
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation
[FR Doc. 2024-12114 Filed 5-31-24; 8:45 am]
BILLING CODE 3510-DS-P
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