Notice2025-15924
Polypropylene Corrugated Boxes From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination
Primary source
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Published
August 20, 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 polypropylene corrugated boxes (corrugated boxes) from the People's Republic of China (China). The period of investigation is January 1, 2024, through December 31, 2024. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 90 Issue 159 (Wednesday, August 20, 2025)</title>
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[Federal Register Volume 90, Number 159 (Wednesday, August 20, 2025)]
[Notices]
[Pages 40564-40566]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15924]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-208]
Polypropylene Corrugated Boxes 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 polypropylene corrugated boxes (corrugated
boxes) from the People's Republic of China (China). The period of
investigation is January 1, 2024, through December 31, 2024. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable August 20, 2025.
FOR FURTHER INFORMATION CONTACT: Rachel Accorsi or Shane Subler, AD/CVD
Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-3149 or (202)
482-6241, 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 investigation on April 14,
2025.\1\ On May 30, 2025, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
August 15, 2025.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ A list of topics
[[Page 40565]]
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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\1\ See Polypropylene Corrugated Boxes from the People's
Republic of China: Initiation of Countervailing Duty Investigation,
90 FR 15555 (April 14, 2025) (Initiation Notice); see also Less-
Than-Fair Value and Countervailing Duty Investigations of Fiberglass
Door Panels and Polypropylene Corrugated Boxes From the People's
Republic of China; Correction, 90 FR 21455 (May 20, 2025).
\2\ See Polypropylene Corrugated Boxes from the People's
Republic of China: Postponement of Preliminary Determination of
Countervailing Duty Investigation, 90 FR 23028 (May 30, 2025).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Polypropylene Corrugated Boxes 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 product covered by this investigation is corrugated boxes 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\ No interested
party commented on the scope of the investigation as it appeared in the
Initiation Notice. Therefore, the scope of the investigation is
unchanged from 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.
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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 on facts
available and, because we find that one or more respondents did not act
to the best of their ability to respond to Commerce's requests for
information, we 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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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final determination in this investigation with the final
determination in the companion less-than-fair-value (LTFV)
investigation of corrugated boxes from China based on a request made by
the petitioners.\8\ Consequently, this final determination will be
issued on the same date as the final LTFV determination, which is
currently scheduled to be issued no later than November 10, 2025,
unless postponed.
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\8\ See Petitioners'' Letter, ``Petitioners'' Request to Align
Final Countervailing Duty Determination With the Companion
Antidumping Duty Final Determination on Imports from China,'' dated
August 8, 2025.
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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
zero and de minimis rates and any rates based entirely under section
776 of the Act. Pursuant to section 705(c)(5)(A)(ii) of the Act, if the
individual estimated countervailable subsidy rates established for all
exporters and producers individually examined are zero, de minimis , or
determined based entirely on facts otherwise available, Commerce may
use any reasonable method to establish the estimated subsidy rate for
all other producers or exporters.
In this investigation, all rates are based entirely on adverse
facts available (AFA) under section 776 of the Act. This is the only
rate available in this proceeding for deriving the all-others rate.
Consequently, as a reasonable method, pursuant to sections 703(d) and
705(c)(5)(A)(ii) of the Act, Commerce established the all-others rate
by applying the countervailable subsidy rate assigned to the non-
responsive companies listed below. For a full description of the
methodology underlying Commerce's analysis, see the Preliminary
Decision Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
------------------------------------------------------------------------
Subsidy
rate
Company (percent ad
valorem)
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Dongguan Jian Xin Plastic Products......................... * 199.60
Jinan Mantis Co Ltd........................................ * 199.60
Ningbo Luchen Packaging Technology Co., Ltd................ * 199.60
Shandong PPKG I&E Co. Ltd.................................. * 199.60
Suzhou Huiyuan Plastic Products Co......................... * 199.60
All Others................................................. 199.60
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* Rate based on facts available with adverse inferences.
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
351.205(d), Commerce will instruct CBP to require a cash deposit equal
to the rates indicated above.
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 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.
Verification
Because the non-responsive companies did not participate in this
investigation and because the Government of China did not provide the
information Commerce requested, Commerce preliminarily determines
[[Page 40566]]
each of these parties have been uncooperative, and it will not conduct
verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than 30
days after the date of publication of the preliminary determination.
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.\9\ 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.\10\
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\9\ 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).
\10\ 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.\11\
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).\12\
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\11\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\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 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, 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.\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 (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 PCBs from China are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: August 15, 2025.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is polypropylene
corrugated boxes. Polypropylene corrugated boxes are boxes, bins,
totes, or other load-bearing containers made for holding goods, that
are made of corrugated polypropylene sheets, also known as
polypropylene hollow core sheets, polypropylene fluted sheets,
polypropylene twin wall sheets, or multi wall sheets. Such
polypropylene sheets are ``corrugated,'' ``fluted,'' or ``hollow
core,'' meaning the inside of the sheet contains channels or pockets
of air which make the sheets lightweight, while retaining strength
and durability. Polypropylene corrugated boxes are typically
produced from a plastic resin consisting of 50 percent or more
polypropylene. Polypropylene corrugated boxes are covered by the
scope irrespective of the particular mix of polypropylene homo-
polymer, polypropylene co-polymer, recycled or virgin polypropylene,
or ancillary chemicals such as electrostatic agents or flame
retardants. Polypropylene corrugated boxes are formed by corrugated
polypropylene sheets cut to length, die-cut into specific box
shapes, and may be cut or scored to allow each side of the box to be
folded into shape. Polypropylene corrugated boxes may include a tab
or attached portion of polypropylene corrugated sheet (commonly
referred to as a ``manufacturer's joint'') that has been cut,
slotted, or scored to facilitate the formation of the box by
stapling, gluing, welding, or taping the sides together to form a
tight seal. One-piece polypropylene corrugated boxes are die-cut or
otherwise formed so that the top, bottom, and sides form a single,
contiguous unit. Two-piece polypropylene corrugated boxes are those
with a folded bottom and a folded top as separate pieces. Multi-
piece polypropylene corrugated boxes are those with separate bottoms
and tops that are fitted to a single folded piece comprising the
sides of the box. Polypropylene corrugated boxes may be printed with
ink or digital designs.
The subject merchandise includes polypropylene corrugated boxes
with or without handles, with or without lids or tops, with or
without reinforcing wire, whether in a one-piece, two-piece, or
multi-piece configuration, and whether folded into shape or in an
unfolded form. The subject merchandise includes all polypropylene
corrugated boxes regardless of size, shape, or dimension. The
subject merchandise also includes polypropylene corrugated box lids
or tops when imported separately from polypropylene corrugated
boxes.
The products subject to this investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under statistical reporting number 3923.10.9000. Although
the HTSUS statistical reporting number is provided for convenience
and customs purposes, the written description of the merchandise is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Injury Test
V. Analysis of China's Financial System
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Recommendation
[FR Doc. 2025-15924 Filed 8-19-25; 8:45 am]
BILLING CODE 3510-DS-P
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