Notice2025-16164
Certain Paper Plates From the People's Republic of China: Initiation of Circumvention Inquires on the Antidumping and Countervailing Duty Orders
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 22, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from the Anticircumvention Working Group of the American Paper Plate Coalition (AWG) (collectively, the requesters), the U.S. Department of Commerce (Commerce) is initiating country-wide circumvention inquiries to determine whether imports of certain paper plates (paper plates) completed in the Kingdom of Cambodia (Cambodia) or Malaysia (collectively, the third countries) using paperboard manufactured in the People's Republic of China (China), are circumventing the antidumping (AD) and countervailing duty (CVD) orders on paper plates from China.
Full Text
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<title>Federal Register, Volume 90 Issue 161 (Friday, August 22, 2025)</title>
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[Federal Register Volume 90, Number 161 (Friday, August 22, 2025)]
[Notices]
[Pages 41055-41057]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16164]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-164, C-570-165]
Certain Paper Plates From the People's Republic of China:
Initiation of Circumvention Inquires on the Antidumping and
Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from the Anticircumvention Working
Group of the American Paper Plate Coalition (AWG) (collectively, the
requesters), the U.S. Department of Commerce (Commerce) is initiating
country-wide circumvention inquiries to determine whether imports of
certain paper plates (paper plates) completed in the Kingdom of
Cambodia (Cambodia) or
[[Page 41056]]
Malaysia (collectively, the third countries) using paperboard
manufactured in the People's Republic of China (China), are
circumventing the antidumping (AD) and countervailing duty (CVD) orders
on paper plates from China.
DATES: Applicable August 22, 2025.
FOR FURTHER INFORMATION CONTACT: Justin Enck at (202) 482-1614, Shawn
Gregor at (202) 482-3226 (Cambodia), and Walter Schaub at (202) 482-
0907 (Malaysia), Trade Remedy Counseling and Initiations, Enforcement
and Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On July 8, 2025, pursuant to section 781(b) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.226(i), the requesters \1\
filed circumvention inquiry requests \2\ alleging that paper plates
completed in the third countries using paperboard manufactured in
China, are circumventing the AD and CVD orders on paper plates from
China \3\ and, accordingly, should be included within the scope of the
Orders.
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\1\ The members of the requesters/AWG are AJM Packaging
Corporation; Aspen Products, Inc.; Dart Container Corporation;
Hoffmaster Group, Inc.; and Unique Industries, Inc.
\2\ See Requesters' Letter, ``Request for Circumvention Inquiry
Pursuant to Section 781(b) of the Tariff Act of 1930, as Amended,
with Respect to the Kingdom of Cambodia,'' dated July 8, 2025; see
also Requesters' Letters, ``Request for Circumvention Inquiry
Pursuant to Section 781(b) of the Tariff Act of 1930, as Amended,
with Respect to Malaysia,'' dated July 8, 2025 (collectively,
Circumvention Requests).
\3\ See Certain Paper Plates from the People's Republic of
China, Thailand, and the Socialist Republic of Vietnam: Antidumping
Duty Orders, 90 FR 13139 (March 20, 2025); see also Certain Paper
Plates from the People's Republic of China and the Socialist
Republic of Vietnam: Countervailing Duty Orders, 90 FR 13135 (March
20, 2025) (collectively, Orders).
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On July 14, 2025, we issued a supplemental questionnaire to the
requesters regarding the Malaysia circumvention request.\4\ On July 15,
2025, we issued a supplemental questionnaire to the requesters
regarding the Cambodia circumvention request.\5\ On July 17, 2025, the
requesters filed their responses to both supplemental
questionnaires.\6\ On July 18 and 25, 2025, Ecosense Environmental
Technology Sdn. Bhd. (Ecosense), Feihong Malaysia Sdn. Bhd. (Feihong),
and Target General Merchandise, Inc. (Target) filed opposition comments
in response to the Circumvention Requests.\7\
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\4\ See Commerce's Letter, ``Malaysia Circumvention Inquiry
Request Supplemental Questionnaire,'' dated July 14, 2025.
\5\ See Commerce's Letter, ``Kingdom of Cambodia Circumvention
Inquiry Request Supplemental Questionnaire,'' dated July 15, 2025.
\6\ See Requesters' Letters, ``Certain Paper Plates from China:
Response to Kingdom of Cambodia Circumvention Inquiry Request
Supplemental Questionnaire,'' dated July 17, 2025.
\7\ See Ecosense's Letter, ``Ecosense Comments Regarding
Adequacy,'' dated July 18, 2025; see also Feihong's Letter,
``Factual Information to Rebut, Clarify, or Correct AWG's July 17,
2025 Supplemental Questionnaire Response,'' dated July 25, 2025; and
Target's Letter, ``Adequacy Comments on Circumvention Inquiry
Request on Cambodia,'' dated July 25, 2025.
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Scope of the Orders
The merchandise subject to these Orders is paper plates. For a full
description of the scope of the Orders, see the Circumvention
Initiation Checklists.\8\
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\8\ See Checklists, ``Paper Plates Completed in Cambodia
Circumvention Initiation Checklist,'' and ``Paper Plates Completed
in Malaysia Circumvention Initiation Checklist,'' dated concurrently
with, and hereby adopted by, this notice (collectively,
Circumvention Initiation Checklists), at Attachment I.
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Merchandise Subject to the Circumvention Inquiries
The circumvention inquiries cover paper plates assembled and
completed in either Cambodia or Malaysia using Chinese-origin
paperboard, that are subsequently exported to the United States.
Initiation of Circumvention Inquiries
Section 351.226(d) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
circumvention inquiry request allege ``that the elements necessary for
a circumvention determination under section 781 of the Act exist'' and
be ``accompanied by information reasonably available to the interested
party supporting these allegations.'' The requesters alleged
circumvention pursuant to section 781(b) of the Act (j.e., merchandise
completed or assembled in other foreign countries).
Section 781(b)(1) of the Act provides that Commerce may find
circumvention of an order when merchandise of the same class or kind
subject to the order is completed or assembled in a foreign country
other than the country to which the order applies. In conducting a
circumvention inquiry, under section 781(b)(1) of the Act, Commerce
relies on the following criteria: (A) merchandise imported into the
United States is of the same class or kind as any merchandise produced
in a foreign country that is the subject of an AD or CVD order; (B)
before importation into the United States, such imported merchandise is
completed or assembled in another foreign country from merchandise
which is subject to the order or is produced in the foreign country
that is subject to the order; (C) the process of assembly or completion
in the foreign country referred to in section (B) is minor or
insignificant; (D) the value of the merchandise produced in the foreign
country to which the AD or CVD order applies is a significant portion
of the total value of the merchandise exported to the United States;
and (E) the administering authority determines that action is
appropriate to prevent evasion of such order.
In determining whether the process of assembly or completion in a
foreign country is minor or insignificant under section 781(b)(1)(C) of
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A)
the level of investment in the foreign country; (B) the level of
research and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country; and (E) whether or not the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States. However, no single factor, by itself, controls Commerce's
determination of whether the process of assembly or completion in a
foreign country is minor or insignificant.\9\ Accordingly, Commerce
will evaluate each of these five factors as they exist in the foreign
country, depending on the particular circumvention scenario.
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\9\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994), at
893.
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In addition, section 781(b)(3) of the Act sets forth additional
factors to consider in determining whether to include merchandise
assembled or completed in a foreign country within the scope of an AD
or CVD order. Specifically, Commerce shall take into account such
factors as: (A) the pattern of trade, including sourcing patterns; (B)
whether the manufacturer or exporter of the merchandise that was
shipped to the foreign country is affiliated with the person who, in
the foreign country, uses the merchandise to complete or assemble the
merchandise which is subsequently imported into the United States; and
(C) whether imports of the
[[Page 41057]]
merchandise into the foreign country have increased after the
initiation of the investigation that resulted in the issuance of such
order.
Analysis
Based on our analysis of the requesters' circumvention inquiry
requests and supplemental questionnaire responses, we determine that
they have satisfied the criteria under 19 CFR 351.226(c), and thus,
pursuant to 19 CFR 351.226(d)(1)(iii), we are initiating the requested
circumvention inquiries. For a full discussion of the basis for our
decision to initiate the circumvention inquiries, see the Circumvention
Initiation Checklists. As explained in the Circumvention Initiation
Checklists, the information provided by the requesters warrants
initiating the circumvention inquiries on a country-wide basis.
Commerce has taken this approach in prior circumvention inquiries,
where the facts warranted initiation on a country-wide basis.\10\
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\10\ See, e.g., Hydrofluorocarbon Blends from the People's
Republic of China: Initiation of Circumvention Inquiry on the
Antidumping Duty Order, 88 FR 74150 (October 30, 2023).
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Consistent with the approach in the prior circumvention inquiries
that were initiated on a country-wide basis, Commerce intends to
solicit information from certain companies in the third countries
concerning their production of paper plates and their shipments thereof
to the United States.
Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and
Border Protection (CBP) entry data from Cambodia and Malaysia for the
relevant Harmonized Tariff Schedule of the United States (HTSUS)
subheading(s) identified in the scope of the Orders. Commerce intends
to place the CBP data on the record within five days of the publication
of this initiation notice, which will be available on 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>. Comments regarding the CBP data and
respondent selection should be submitted within seven days after
placement of the CBP data on the record of the inquiries.
Commerce intends to establish a schedule for questionnaire
responses after respondent selection. A company's failure to submit
complete, timely responses to Commerce's requests for information may
result in the application of facts available, pursuant to section
776(a) of the Act, which may include adverse inferences, pursuant to
section 776(b) of the Act.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify CBP of these
initiations and direct CBP to continue the suspension of liquidation of
entries of products subject to the circumvention inquiries that were
already subject to the suspension of liquidation under the Orders and
to apply the cash deposit rates that would be applicable if the
products were determined to be covered by the scope of the Orders.
Should Commerce issue an affirmative preliminary or final
circumvention determination, Commerce will follow the suspension of
liquidation rules under 19 CFR 351.226(l)(2)-(4). In the event that
Commerce issues an affirmative preliminary or final circumvention
determination that the products are circumventing the Orders, Commerce
will instruct CBP to continue the suspension of liquidation of
previously suspended entries and to apply the applicable cash deposit
rate. Commerce will also instruct CBP to begin the suspension of
liquidation and application of cash deposits for any unliquidated
entries not yet suspended, entered, or withdrawn from warehouse, for
consumption, on or after the date of publication of the notice of
initiation of the circumvention inquiries pursuant to paragraphs
(l)(2)(ii) and (l)(3)(ii). In addition, pursuant to paragraphs
(l)(2)(iii)(A) and (l)(3)(iii)(A), Commerce may instruct CBP to begin
the suspension of liquidation and application of cash deposits for any
unliquidated entries not yet suspended, entered, or withdrawn from
warehouse, for consumption, prior to the date of initiation of the
circumvention inquiries, but not for such entries prior to November 4,
2021, the effective date of these provisions in the Final Rule.\11\
These rules will not affect CBP's authority to take any additional
action with respect to the suspension of liquidation or related
measures for these entries, as stated in 19 CFR 351.226(l)(5).
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\11\ See Regulations to Improve Administration and Enforcement
of Antidumping and Countervailing Duty Laws, 86 FR 52300, 52345
(September 20, 2021) (Final Rule).
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Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(b) of the Act,
Commerce determines that the requesters' requests for circumvention
inquiries satisfy the requirements of 19 CFR 351.226(c). Accordingly,
Commerce is notifying all interested parties of the initiation of the
circumvention inquiries to determine whether paper plates completed in
the third countries using paperboard manufactured in China and
subsequently exported to the United States are circumventing the
Orders. In addition, we have included a description of the products
that are subject to the inquiries and an explanation of Commerce's
decision to initiate the inquiries as provided in the accompanying
Circumvention Initiation Checklists.\12\
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\12\ See Circumvention Initiation Checklists.
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In accordance with 19 CFR 351.226(e)(1), unless the circumvention
inquiries are rescinded, in whole or in part, or the deadline for the
preliminary circumvention determinations is extended, Commerce intends
to issue its preliminary circumvention determinations no later than 150
days from the date of publication of the notices of initiation of these
circumvention inquiries in the Federal Register. Furthermore, in
accordance with section 781(f) of the Act and 19 CFR 351.226(e)(2),
unless the circumvention inquiries are rescinded, in whole or in part,
or the deadline for the final circumvention deadlines is extended,
Commerce intends to issue its final determinations within 300 days from
the date of publication of the notice of initiation of the
circumvention inquiries in the Federal Register.
This notice is published in accordance with section 781(b) of the
Act, and 19 CFR 351.226(d)(1)(iii).
Dated: August 19, 2025.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2025-16164 Filed 8-21-25; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on August 22, 2025.
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