Notice2025-04094
Thermoformed Molded Fiber Products From the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances 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 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 90 Issue 49 (Friday, March 14, 2025)</title>
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[Federal Register Volume 90, Number 49 (Friday, March 14, 2025)]
[Notices]
[Pages 12126-12129]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-04094]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-552-846]
Thermoformed Molded Fiber Products From the Socialist Republic of
Vietnam: Preliminary Affirmative Countervailing Duty Determination,
Preliminary Affirmative Critical Circumstances 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 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 March 14, 2025.
FOR FURTHER INFORMATION CONTACT: Thomas Martin, 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) 482-3936.
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 November 4,
2024, Commerce published the notice of initiation of this
countervailing duty (CVD) investigation.\1\ On December 19, 2024,
Commerce postponed the 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 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 molded fiber
products 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\ 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
[[Page 12127]]
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 87556.
\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 certain 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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Preliminary Affirmative Determination of Critical Circumstances
In accordance with section 703(e)(1) of the Act, Commerce
preliminarily determines that critical circumstances exist with respect
to imports of subject merchandise from the mandatory respondent Vietnam
Yuzhan Packaging Technology Co. Ltd. (Yuzhan), as well as HC Packaging
Asia (Industrial Park), Honha Eco Pulp Viet Nam Paper Tray, and Pulp
Tray, Martin Vietnam Co. Ltd., which have been assigned a rate based on
total adverse facts available (AFA), and also with respect to all other
producers and exporters that enter subject merchandise under the all-
others subsidy rate. For a full description of the methodology and
results of Commerce's analysis, see the Preliminary Decision
Memorandum.
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 companion LTFV
investigation of molded fiber products from Vietnam, based on a request
made by the petitioner.\9\ Consequently, this final CVD determination
will be issued on the same date as the final determination for the LTFV
investigation, which is currently scheduled to be issued no later than
July 21, 2025, unless postponed.
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\9\ The petitioner is the American Molded Fiber Coalition. See
Petitioner's 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
Three potential exporters and/or producers of molded fiber products
from Vietnam did not respond to Commerce's quantity and value (Q&V)
questionnaire (i.e., the non-responsive companies).\10\ 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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\10\ The non-responsive companies are: (1) HC Packaging Asia
(Industrial Park); (2) Honha Eco Pulp Viet Nam Paper Tray; and (3)
Pulp Tray, Martin Vietnam 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
responses to Commerce's Q&V questionnaire, the non-responsive companies
did not cooperate to the best of their ability in this investigation.
For more information on the application of AFA to the non-responsive
companies, 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
rates that are zero, de minimis, or based entirely under section 776 of
the Act. If the rates established for all exporters and producers
individually investigated are zero, de minimis, or determined entirely
under facts available, Commerce may use any reasonable method to
establish an all-others rate.\11\
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\11\ See sections 705(c)(5)(A)(i) and (ii) of the Act.
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Commerce calculated an individual estimated countervailable subsidy
rate for Yuzhan, the only individually examined exporter/producer in
this investigation. Because the only individually calculated rate is
not zero, de minimis, or based entirely on facts otherwise available,
the estimated weighted-average rate calculated for Yuzhan is the rate
assigned to all other producers and exporters, pursuant to section
705(c)(5)(A)(i) of the Act.
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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Vietnam Yuzhan Packaging Technology Co. Ltd.................. 3.39
HC Packaging Asia (Industrial Park).......................... * 173.51
Honha Eco Pulp Viet Nam Paper Tray........................... * 173.51
Pulp Tray, Martin Vietnam Co. Ltd............................ * 173.51
All Others................................................... 3.39
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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
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
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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 Yuzhan, the non-
responsive companies (i.e., HC Packaging Asia (Industrial Park), Honha
Eco Pulp Viet Nam Paper Tray, and Pulp Tray, Martin Vietnam Co. Ltd.),
and all other producers and exporters whose imports enter under the
all-others subsidy rate. Pursuant to 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, entered, or withdrawn from
warehouse, for consumption on or after the date which is 90 days before
the publication of this notice, in accordance with section 703(e)(2)(A)
of the Act. 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.\12\ 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 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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\12\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for
general filing requirements).
\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 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).\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 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. 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 (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the 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 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: 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 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
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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 non-subject 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. Preliminary Affirmative Determination of Critical Circumstances
V. Use of Facts Available and Adverse Inferences
VI. Subsidies Valuation Information
VII. Interest Rate, Discount Rate, and Land Lease Benchmarks
VIII. Analysis of Programs
IX. Recommendation
[FR Doc. 2025-04094 Filed 3-13-25; 8:45 am]
BILLING CODE 3510-DS-P
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