Notice2024-19069
Certain Glass Wine Bottles From the People's Republic of China: Final Affirmative Countervailing Duy Determination and Final 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
August 26, 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 glass wine bottles (wine bottles) from the People's Republic of China (China). The period of investigation is January 1, 2022, through December 31, 2022.
Full Text
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<title>Federal Register, Volume 89 Issue 165 (Monday, August 26, 2024)</title>
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[Federal Register Volume 89, Number 165 (Monday, August 26, 2024)]
[Notices]
[Pages 68395-68397]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19069]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-163]
Certain Glass Wine Bottles From the People's Republic of China:
Final Affirmative Countervailing Duy Determination and Final
Affirmative Determination of Critical Circumstances
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 glass wine bottles (wine bottles) from the People's Republic
of China (China). The period of investigation is January 1, 2022,
through December 31, 2022.
DATES: Applicable August 26, 2024.
FOR FURTHER INFORMATION CONTACT: Preston Cox, Scarlet Jaldin, 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, (202) 482-4275, or (202) 482-4834, respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 28, 2024, Commerce published the Preliminary Determination
in the Federal Register and invited interested parties to comment.\1\
Subsequently, on July 23, 2024, Commerce issued its Post-Preliminary
Analysis.\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 Glass Wine Bottles from the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Preliminary Affirmative Determination of Critical Circumstances, 89
FR 47533 (June 3, 2024) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Post-Preliminary Decision Memorandum for
the Countervailing Duty Investigation of Certain Glass Wine Bottles
from the People's Republic of China,'' dated July 23, 2024 (Post-
Preliminary Analysis).
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Countervailing Duty
Investigation of Certain Glass Wine Bottles from the People's
Republic of China,'' dated concurrently with, and herby adopted by,
this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are wine bottles from
China. For a complete description of the scope of this investigation,
see Appendix I.
[[Page 68396]]
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 parties on the Preliminary Scope
Decision Memorandum, which we address in the Final Scope Decision
Memorandum.\5\ We did not make any changes to the scope of the
investigation from the scope published in the Preliminary
Determination, as noted in Appendix I.
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\4\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated May 28, 2024 (Preliminary Scope Decision Memorandum).
\5\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
concurrently with this notice (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 that were submitted by parties in this
investigation, are discussed in the Issues and Decision Memorandum. For
a list of the issues raised by interested parties and addressed in the
Issues and Decision Memorandum, see Appendix II to this notice.
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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In making this final determination, Commerce relied, in part, on
facts otherwise available, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of adverse facts available, see the Preliminary
Determination \7\ and the Issues and Decision Memorandum at the section
entitled ``Use of Facts Otherwise Available and Application of Adverse
Inferences.''
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\7\ See Preliminary Determination PDM at 8-36.
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Verification
Commerce was unable to conduct on-site verification of the
information relied on in making its final determination in this
investigation. However, in June and July 2024, we took additional steps
in lieu of on-site verification to verify the information relied upon
in making this final determination, in accordance with section 782(i)
of the Act, by conducting virtual verification of Shandong Changyu
Glass Co., Ltd. (Shandong Changyu).\8\ Yantai Prime Packaging Co., Ltd.
(YPP) notified Commerce of its intent not to participate in a virtual
verification.\9\
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\8\ See Memorandum, ``Report on Verification of Shandong Changyu
Glass Co., Ltd. and Its Affiliates,'' dated July 15, 2024.
\9\ See YPP's Letter, ``Notification of Non-Participation,''
dated June 18, 2024.
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Changes Since the Preliminary Determination and Post-Preliminary
Analysis
Based on our review and analysis of the information received at
verification, for this final determination, we made certain changes to
the countervailable subsidy rate calculations for Shandong Changyu. For
a discussion of these changes, see the Issues and Decision Memorandum.
Final Affirmative Determination of Critical Circumstances
Pursuant to sections 705(a)(2), 776(a), and 776(b) of the Act, and
19 CFR 351.206, Commerce finds that critical circumstances exist with
respect to imports of wine bottles from China for Shandong Changyu,
YPP, all other producers and/or exporters, and the non-responsive
companies. For further information on Commerce's critical circumstances
analysis, see the section ``Final Critical Circumstances
Determination'' in the accompanying Issues and Decision Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted-average
countervailable subsidy rates established for exporters and/or
producers individually examined, excluding any rates that are zero, de
minimis, or based entirely under section 776 of the Act. In this
investigation, Commerce 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.
Final Determination
Commerce 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.\10\...................... 21.31
Boliva International Limited.............................. * 212.58
Bright Glassware.......................................... * 212.58
Shandong Dingxin Electronic............................... * 212.58
Wenden Wensheng Glass Co., Ltd............................ * 212.58
Wuixi Hua Zhong Glass Co. Ltd............................. * 212.58
Xiamen Jane Jonson Co. Ltd................................ * 212.58
Yamamura Glass Qinhuangdao................................ * 212.58
Yantai Prime Packaging Co., Ltd........................... * 212.58
Zibo Regal Glass Products Co. Ltd......................... * 212.58
All Others................................................ 21.31
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* Rate based on adverse facts available.\11\
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this final determination within five days
of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in the
Federal Register, in accordance with 19 CFR 351.224(b).
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\10\ Commerce finds that Shandong Changyu is cross-owned with
Yantai Changyu Glass Co., Ltd.; Yantai Changyu Investment Co., Ltd.;
Yantai Changyu Glass Printing Co., Ltd.; Yantai Changyu Fuel Co.,
Ltd.; and Yantai Changyu Storage and Transportation Co., Ltd.
\11\ See Memorandum, ``AFA Calculation Memorandum for the Final
Determination,'' dated concurrently with this notice.
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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 June 3, 2024, the date of
publication of the Preliminary Determination in the
[[Page 68397]]
Federal Register. Because we preliminarily determined that critical
circumstances existed with respect to Shandong Changyu, all other
producers and/or exporters, and the non-responsive companies, we
instructed CBP to suspend such entries on or after March 5, 2024, which
is 90 days prior to the date of the publication of the Preliminary
Determination in the Federal Register.
Pursuant to section 705(c)(1)(B)(ii) of the Act, and 19 CFR
351.210(d) where appropriate, Commerce will instruct CBP to require a
cash deposit equal to the estimated individual countervailable subsidy
rate or the estimated all-others rate, as indicated in the chart above,
effective on the date of publication of this final determination.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, and require a cash deposit of estimated countervailing duties
for such entries of subject merchandise in the amounts indicated above,
in accordance with section 706(a) of the Act. 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 wine bottles
from China. 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 threatened with material injury, by reason of
imports of wine bottles from China. 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.
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: August 19, 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 customs purposes only. The written description of
the scope of the investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Facts Otherwise Available and Application of Adverse
Inferences
V. Final Critical Circumstances Determination
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Whether Commerce Should Find that Shandong Changyu
Used the Export Buyer's Credit (EBC) Program as Adverse Facts
Available (AFA)
Comment 2: Whether Commerce Should Find Shandong Changyu
Uncreditworthy
Comment 3: Whether Commerce Should Find Countervailable the
Provision of Natural Gas for Less Than Adequate Remuneration (LTAR)
Program
Comment 4: Whether Commerce Should Conduct an On-site
Verification
Comment 5: Whether Commerce Should Attribute to Shandong Changyu
Countervailable Subsidies Received by Shandong Changyu's Cross-Owned
Affiliates
Comment 6: Whether the Application of AFA to the Provision of
Electricity for LTAR is Appropriate
Comment 7: Whether Commerce Should Find, based on AFA, that
Shandong Changyu Used the Silica Sand for LTAR Program
Comment 8: Whether Commerce Should Find, based on AFA, that
Shandong Changyu Used Other Subsidies
Comment 9: Whether Commerce Should Apply Total AFA to Shandong
Changyu for Its Reporting of Policy Loans to the Wine Bottles
Industry Program
IX. Recommendation
[FR Doc. 2024-19069 Filed 8-23-24; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on August 26, 2024.
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