Notice2024-14406
Certain Paper Plates From the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Determination of Critical Circumstances, in Part, and Alignment of Final Determination With Antidumping Duty Determination
Primary source
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Published
July 1, 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 paper plates (paper plates) from the Socialist Republic of Vietnam (Vietnam) during the period of investigation, January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 126 (Monday, July 1, 2024)</title>
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[Federal Register Volume 89, Number 126 (Monday, July 1, 2024)]
[Notices]
[Pages 54429-54431]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-14406]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-552-840]
Certain Paper Plates From the Socialist Republic of Vietnam:
Preliminary Affirmative Countervailing Duty Determination, Preliminary
Affirmative Determination of Critical Circumstances, in Part, and
Alignment of Final Determination With Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain paper plates (paper plates) from the
Socialist Republic of Vietnam (Vietnam) during the period of
investigation, January 1, 2023, through December 31, 2023. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable July 1, 2024.
FOR FURTHER INFORMATION CONTACT: Mary Kolberg, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1785.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On February 21,
2024, Commerce published the notice of initiation of this
countervailing duty (CVD) investigation.\1\ On March 26, 2024, Commerce
postponed the preliminary determination until June 24, 2024.\2\
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\1\ See Certain Paper Plates from the People's Republic of China
and the Socialist Republic of Vietnam: Initiation of Countervailing
Duty Investigations, 89 FR 13043 (February 21, 2024) (Initiation
Notice).
\2\ See Certain Paper Plates from the People's Republic of China
and the Socialist Republic of Vietnam: Postponement of Preliminary
Determinations in the Countervailing Duty Investigations, 89 FR
20945 (March 26, 2024).
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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 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 Paper Plates from the Socialist Republic of Vietnam,''
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 plates from
Vietnam. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ No interested party
commented on the scope of the investigation 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, 89 FR at 13044.
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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
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.\6\ For a full description of the methodology underlying our
preliminary determination, see the Preliminary 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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Commerce notes that, in making these findings, it relied, in part,
on facts available, and, because it finds that certain respondents and
the Government of Vietnam did not act to the best of their ability to
respond to Commerce's requests for information, it drew an adverse
inference where appropriate in selecting from among the facts otherwise
available.\7\ For further information, see the ``Use of Facts Otherwise
Available and Adverse Inferences'' section in the Preliminary Decision
Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 703(e)(1) of the Act, we preliminarily
find that critical circumstances exist with respect to imports of
subject merchandise from Vietnam for Xie Li Vietnam International
Company (Xie Li), all other producers and exporters, and companies that
were not responsive to Commerce's quantity and value (Q&V)
questionnaire,\8\ but do not exist with respect to Go-Pak Paper
Products Vietnam Co., Ltd. (Go-Pak). For a full discussion of our
preliminary critical circumstances determination, see the ``Preliminary
Affirmative Determination of Critical Circumstances, in Part'' section
of the Preliminary Decision Memorandum.
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\8\ See Commerce's Letter, ``Quantity and Value Questionnaire,''
dated February 15, 2024.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final CVD determination in this
investigation with the final determination in the concurrent
antidumping duty (AD) investigation of paper plates from Vietnam, based
on a request made by the petitioner.\9\ Consequently, the final CVD
determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
November 5, 2024, unless postponed.\10\
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\9\ See Petitioner's Letter, ``Request for Alignment of Final
Determination with Deadline in Concurrent AD Investigations,'' dated
June 5, 2024.
\10\ See Certain Paper Plates from the People's Republic of
China, Thailand, and the Socialist Republic of Vietnam: Postponement
of Preliminary Determinations in the Less-Than-Fair-Value
Investigations, 89 FR 49833 (June 12, 2024).
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall 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.
[[Page 54430]]
In this investigation, Commerce calculated an individual estimated
countervailable subsidy rate for Go-Pak that is not zero, de minimis,
or based entirely under section 776 of the Act. As further discussed in
the Preliminary Decision Memorandum, the individual estimated
countervailable subsidy rate for Xie Li is based entirely upon section
776 of the Act. Therefore, Commerce is using the individual estimated
subsidy rate calculated for Go-Pak as the all-others rate.
Rate for Non-Responsive Companies
Four potential exporters and/or producers of paper plates from
Vietnam did not respond to Commerce's Q&V questionnaire and Xie Li did
not provide information requested in the Initial Questionnaire (i.e.,
the non-responsive companies).\11\ 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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\11\ The companies that failed to respond to Commerce's Q&V
questionnaire are: (1) Innovative Sonic Vietnam International; (2)
Ningbo Changya Plastic Vietnam Company; (3) Ningbo Changya Plastic
Vietnam; and (4) SCG Vietnam.
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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 Decision
Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate (percent
Company ad valorem)
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Go-Pak Paper Products Vietnam Co., Ltd......... 5.48
Innovative Sonic Vietnam International......... * 237.65
Ningbo Changya Plastic Vietnam Company......... * 237.65
Ningbo Changya Plastic Vietnam................. * 237.65
SCG Vietnam.................................... * 237.65
Xie Li Vietnam International Company Limited... * 237.65
All Others..................................... 5.48
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
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).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Suspension of Liquidation
In accordance with sections 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 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 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 the non-responsive companies
and all other producers and/or exporters. In accordance with section
703(e)(2)(A) of the Act, for the non-responsive companies and all other
producers and/or exporters, 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
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 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.\12\ 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.\13\
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\12\ 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).
\13\ See 19 351.309(c)(2) and (d)(2).
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[[Page 54431]]
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.\14\
Further, we request that interested parties limit their public
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public 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).\15\
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\14\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\15\ 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 and whether any participant is a foreign national, 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, 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.
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 paper
plates from Vietnam are materially injuring the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: June 24, 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 subject to these investigations is certain paper
plates. Paper plates subject to these investigations may be cut from
rolls, sheets, or other pieces of paper and/or paper board. Paper
plates subject to these investigations have a depth up to and
including two (2.0) inches, as measured vertically from the base to
the top of the lip, or the edge if the plate has no lip. Paper
plates subject to these investigations may be uncolored, white,
colored, or printed. Printed paper plates subject to these
investigations may have any type of surface finish, and may be
printed by any means with images, text and/or colors on one or both
surfaces. Colored paper plates subject to this investigation may be
colored by any method, including but not limited to printing,
beater-dyeing, and dip-dyeing. Paper plates subject to these
investigations may be produced from paper of any type (including,
but not limited to, bamboo, straws, bagasse, hemp, kenaf, jute,
sisal, abaca, cotton inters and reeds, or from non-plant sources,
such as synthetic resin (petroleum)-based resins), may have any
caliper or basis weight, may have any shape or size, may have one or
more than one section, may be embossed, may have foil or other
substances adhered to their surface, and/or may be uncoated or
coated with any type of coating.
The paper plates subject to these investigations remain covered
by the scope of these investigations whether imported alone, or in
any combination of subject and non-subject merchandise. When paper
plates subject to these investigations are imported in combination
with non-subject merchandise, only the paper plates subject to these
investigations are subject merchandise.
The paper plates subject to these investigations include paper
plates matching the above description that have been finished,
packaged, or otherwise processed in a third country by performing
finishing, packaging, or processing that would not otherwise remove
the merchandise from the scope of the investigations if performed in
the country of manufacture of the paper plates. Examples of
finishing, packaging, or other processing in a third country that
would not otherwise remove the merchandise from the scope of the
investigations if performed in the country of manufacture of the
paper plates include, but are not limited to, printing, application
of other surface treatments such as coatings, repackaging,
embossing, and application of foil surface treatments.
Excluded from the scope of these investigations are paper plates
molded or pressed directly from paper pulp (including but not
limited to unfelted pulp), which are currently classifiable under
subheading 4823.70.0020 of the Harmonized Tariff Schedule of the
United States (HTSUS).
Also excluded from the scope of these investigations are
articles that otherwise would be covered but which exhibit the
following two physical characteristics: (a) depth (measured
vertically from the base to the top of the lip, or edge if no lip)
equal to or greater than 1.25 inches but less than two (2.0) inches,
and (b) a base not exceeding five (5.0) inches in diameter if round,
or not exceeding 20 square inches in area if any other shape.
Also excluded from the scope of these investigations are paper
bowls, paper buckets, and paper food containers with closeable lids.
Paper plates subject to these investigations are currently
classifiable under HTSUS subheading 4823.69.0040. Paper plates
subject to these investigations also may be classified under HTSUS
subheading 4823.61.0040. If packaged with other articles, the paper
plates subject to these investigations also may be classified under
HTSUS subheadings 9505.90.4000 and 9505.90.6000. While the HTSUS
subheading(s) are provided for convenience and customs purposes, the
written description of the subject merchandise is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Preliminary Affirmative Determination of Critical Circumstances,
in Part
V. Use of Facts Available and Adverse Inferences
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Recommendation
[FR Doc. 2024-14406 Filed 6-28-24; 8:45 am]
BILLING CODE 3510-DS-P
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