Notice2025-04093
Thermoformed Molded Fiber Products From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
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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
March 14, 2025
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 thermoformed molded fiber products (molded fiber products) from the People's Republic of China (China). The period of investigation is 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 90 Issue 49 (Friday, March 14, 2025)</title>
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[Federal Register Volume 90, Number 49 (Friday, March 14, 2025)]
[Notices]
[Pages 12123-12126]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-04093]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-183]
Thermoformed Molded Fiber Products From the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final 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 thermoformed molded fiber products (molded
fiber products) from the People's Republic of China (China). The period
of investigation is January 1, 2023, through December 31, 2023.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable March 14, 2025.
FOR FURTHER INFORMATION CONTACT: Allison Hollander or Ashley Cossaart,
AD/CVD Operations, Office IX, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-2805 or (202)
482-0462, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is issued in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On November 4,
2024, Commerce published the notice of initiation of this
countervailing duty (CVD) investigation.\1\ On December 19, 2024,
Commerce postponed the
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deadline for this preliminary determination until March 7, 2025.\2\
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\1\ See Thermoformed Molded Fiber Products from the People's
Republic of China and the Socialist Republic of Vietnam: Initiation
of Countervailing Duty Investigations, 89 FR 87556 (November 4,
2024) (Initiation Notice); and Thermoformed Molded Fiber Products
from the People's Republic of China and the Socialist Republic of
Vietnam: Initiation of Countervailing Duty Investigations;
Correction, 89 FR 91321 (November 19, 2024) (correcting a
typographical error in the Harmonized Tariff Schedule of the United
States subheadings listed in the scope).
\2\ See Thermoformed Molded Fiber Products from the People's
Republic of China and the Socialist Republic of Vietnam:
Postponement of Preliminary Determination in the Countervailing Duty
Investigations, 89 FR 103778 (December 19, 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 Thermoformed Molded Fiber Products 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 molded fiber
products from China. 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\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the less-than-fair-
value (LTFV) and CVD investigations in the preliminary determination of
the companion LTFV investigations. We will incorporate the scope
decisions from the LTFV investigations into the scope of the final CVD
determination for this investigation after considering any relevant
comments submitted in scope case and rebuttal briefs.\6\
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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 65852.
\6\ The deadline for interested parties to submit scope case and
rebuttal briefs will be established in the 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
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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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondents
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.\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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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final countervailing duty (CVD)
determination in this investigation with the final determination in the
companion LTFV investigation of molded fiber products from China based
on a request made by the petitioners.\9\ Consequently, the final CVD
determination will be issued on the same date as the final LTFV
determination, which is currently scheduled to be issued no later than
July 21, 2025, unless postponed.
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\9\ The petitioners are: Genera, Tellus Products, LLC, and the
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers International Union, AFL-CIO.
See Petitioners' Letter, ``Petitioners' Request for Alignment of the
Countervailing Duty Investigations with the Concurrent Antidumping
Duty Investigations,'' dated February 24, 2025.
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Rate for Non-Responsive Companies
One potential exporter and/or producer of molded fiber products
from China did not respond to Commerce's quantity and value (Q&V)
questionnaire (i.e., the non-responsive company).\10\ We find that, by
not responding to the Q&V questionnaire, this company 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 company on facts otherwise available.
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\10\ The non-responsive company is Shaoneng Group Guangdong
Luzhou Paper Mould Packing Products Co., Ltd.
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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
a response to Commerce's Q&V questionnaire, the non-responsive company
did not cooperate to the best of their ability in this investigation.
For more information on the application of AFA to the non-responsive
company, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in 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
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce preliminarily calculated individual
estimated countervailable subsidy rates for Guangxi Firstpak
Environmental Technology Co., Ltd. (Firstpak) and Zhejiang Zhongxin
Environmental Protection Technology Group Co., Ltd. (Zhejiang Zhongxin)
that are not zero, de minimis, or based entirely on the facts otherwise
available. Commerce calculated the all-others rate using a weighted-
average of the individual estimated subsidy rates calculated for the
examined respondents using each company's publicly-ranged values for
the merchandise under consideration.\11\
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\11\ 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 values 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
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see Memorandum, ``Calculation of Subsidy Rate for All Others,''
dated concurrently with this notice.
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Preliminary Determination
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\12\ Commerce preliminarily finds that Zhejiang Zhongxin is
cross-owned with Jinhua Zhongsheng Fiber Products Co., Ltd.; Guangxi
Huabao Fiber Products Co., Ltd.; and Chongzuo Zhongxin Environmental
Protection Technology Co., Ltd.
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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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Guangxi Firstpak Environmental Technology Co., Ltd...... 6.99
Zhejiang Zhongxin Environmental Protection Technology 5.99
Group Co., Ltd \12\....................................
Shaoneng Group Guangdong Luzhou Paper Mould Packing * 153.25
Products Co., Ltd......................................
All Others.............................................. 6.38
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* Rate is based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in 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 the Federal Register, 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 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 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
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 will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the LTFV and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum. For all scope case and rebuttal briefs, parties
must file identical documents simultaneously on the records of the
ongoing LTFV and CVD molded fiber products 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, excluding scope 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.\13\ 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.\14\
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\13\ 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).
\14\ 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.\15\
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).\16\
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\15\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\16\ 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: (1) the party's name, address, and telephone number;
(2) the number of participants and whether any participant is a foreign
national; and (3) a list of the issues to be discussed. 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 molded
fiber products 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: March 7, 2025.
Christopher Abbott,
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 this investigation consists of
thermoformed molded fiber products regardless of shape, form,
function, fiber source, or finish. Thermoformed molded fiber
products are formed with cellulose fibers, thermoformed
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using one or more heated molds, and cured in the mold.
Thermoformed molded fiber products include, but are not limited
to, plates, bowls, clamshells, trays, lids, food or foodservice
contact packaging, and consumer or other product packaging.
Thermoformed molded fiber products may be derived from any
virgin or recycled cellulose fiber source (including, but not
limited to, those sourced from wood, woody crops, agricultural
crops/byproducts/residue, and agricultural/industrial/other waste).
They may have any weight, shape, dimensionality, design, or size,
and may be bleached, unbleached, dyed, colored, or printed. They may
include ingredients, additives, or chemistries to enhance
functionality including, but not limited to, anti-microbial,
antifungal, anti-bacterial, heat/flame resistant, hydrophobic,
oleophobic, absorbent, or adsorbent. Thermoformed molded fiber
products may also be subject to other processing or treatments,
including, but not limited to, hot or after pressing, die-cutting,
punching, trimming, padding, perforating, printing, labeling, dying,
coloring, coating, laminating, embossing, debossing, repacking, or
denesting. Thermoformed molded fiber products subject to these
investigations may also have additional design features, including,
but not limited to, tab closures, venting, channeling, or
stiffening.
Thermoformed molded fiber products remain covered by the scope
of this investigation whether the subject product is encased by
exterior packaging or whether the subject product forms the outer
packaging for non-subject products. They also remain covered by the
scope of this investigation whether imported alone, or in any
combination of subject and non-subject merchandise (e.g., a lid or
cover of any type packaged with a molded fiber bowl, addition of any
items to make the thermoformed molded fiber packaging suitable for
end-use such as absorbent pads). When thermoformed molded fiber
products are imported in combination with nonsubject merchandise,
only the thermoformed molded fiber products are subject merchandise.
Thermoformed molded fiber products include thermoformed molded
fiber products 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
thermoformed molded fiber products. 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
thermoformed molded fiber products include, but are not limited to,
hot or after pressing, die-cutting, punching, trimming, padding,
perforating, printing, labeling, dying, coloring, coating,
laminating, embossing, debossing, repacking, or denesting.
Thermoformed molded fiber products are classified under
subheadings 4823.70.0020 and 4823.70.0040, HTSUS. Imports may also
be classified under subheadings 4823.61.20, 4823.61.40, 4823.69.20,
4823.69.40, HTSUS. References to the HTSUS classification are
provided for convenience and customs purposes, and the written
description of the merchandise under 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. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2025-04093 Filed 3-13-25; 8:45 am]
BILLING CODE 3510-DS-P
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