Notice2025-18899
Thermoformed Molded Fiber Products From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination
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Published
September 30, 2025
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 thermoformed molded fiber products (molded fiber products) from the Socialist Republic of Vietnam (Vietnam) during the period of investigation (POI), January 1, 2023, through December 31, 2023.
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<title>Federal Register, Volume 90 Issue 187 (Tuesday, September 30, 2025)</title>
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[Federal Register Volume 90, Number 187 (Tuesday, September 30, 2025)]
[Notices]
[Pages 46805-46807]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18899]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-552-846]
Thermoformed Molded Fiber Products From the Socialist Republic of
Vietnam: Final Affirmative Countervailing Duty Determination and Final
Affirmative Critical Circumstances Determination
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 thermoformed molded fiber products (molded fiber products) from the
Socialist Republic of Vietnam (Vietnam) during the period of
investigation (POI), January 1, 2023, through December 31, 2023.
DATES: Applicable September 30, 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
On March 14, 2025, Commerce published the Preliminary Determination
of this countervailing duty (CVD) investigation of molded fiber
products from Vietnam, and, in accordance with section 705(a)(1) of the
Tariff Act of 1930, as amended (the Act) and 19 CFR 351.210(b)(3),
aligned this CVD investigation with the final determination in the
companion less-than-fair-value (LTFV) investigation.\1\ For a complete
description of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, see the Issues and
Decision Memorandum.\2\ 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="http://access.trade.gov">http://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 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, 90 FR 12126 (March 14, 2025)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Countervailing Duty
Investigation of Thermoformed Molded Fiber Products from the
Socialist Republic of Vietnam,'' dated concurrently with, and hereby
adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The merchandise covered by the scope of this investigation is
molded fiber products from Vietnam. For a complete description of the
scope of this investigation, see Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from interested parties.\3\ 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 from interested parties.\4\ On June 5, 2025,
Commerce received scope case and rebuttal briefs from interested
parties.\5\ After analyzing these comments, we made no changes to the
scope of the investigation since the Preliminary Scope Decision
Memorandum, as noted in Appendix I.\6\
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\3\ See Petitioners' Letters, ``Thermoformed Molded Fiber
Products from the People's Republic of China and the Socialist
Republic of Vietnam: Responses to Antidumping and Countervailing
Duty Petition Supplemental Questionnaire,'' dated October 16, 2024;
``Thermoformed Molded Fiber Products from the People's Republic of
China and Socialist Republic of Vietnam: Responses to Second
Supplemental Questionnaire,'' dated October 24, 2024; see also
Memorandum, ``Scope, Industry Support, and Vietnam AD Discussion,''
dated October 22, 2024.
\4\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated May 6, 2025 (Preliminary Scope Decision Memorandum).
\5\ See Petitioners' Letter, ``Letter in Lieu of Scope Case
Brief,'' dated June 5, 2025; Target General Merchandise, Inc.'s
Letter, ``Scope Case Brief on Behalf of Target General Merchandise,
Inc.,'' dated June 5, 2025; and Petitioners' Letter, ``Petitioners'
Scope Rebuttal Brief,'' dated June 12, 2025.
\6\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
concurrently with this notice.
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Verification
As provided in section 782(i) of the Act, Commerce conducted
verification of the information relied upon in making its final
determination in this investigation. Specifically, we conducted on-site
verifications of the subsidy information reported by Vietnam Yuzhan
Packaging Technology Company Limited (Yuzhan) and Government of the
Socialist Republic of Vietnam (GOV) in July and August 2025 using
standard verification procedures, including an examination of relevant
sales and accounting records, and original source documents provided by
Yuzhan and the GOV.\7\
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\7\ See Memorandum, ``Verification of the Questionnaire
Responses of Vietnam Yuzhan Packaging Technology Company Limited,''
dated August 21, 2025; see also Memorandum, ``Verification of the
Questionnaire Responses of the Government of the Socialist Republic
of Vietnam,'' dated August 21, 2025.
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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 parties, and to which we responded in
the Issues and Decision Memorandum, see Appendix II to this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 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.\8\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also 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 available, including adverse facts available (AFA), pursuant to
sections 776(a) and (b) of the Act. For a full discussion of our
application of AFA, see the section ``Use of Facts Otherwise Available
and Application of Adverse Inferences'' in the Issues and Decision
Memorandum.
Final Affirmative Determination of Critical Circumstances
Commerce preliminarily determined, in accordance with section
703(e)(1) of the Act and 19 CFR 351.206(c)(1), that critical
circumstances exist with respect to imports of molded fiber products
produced and/or exported by Yuzhan,
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the non-responsive companies,\9\ and all other producers and/or
exporters not individually examined.\10\ For this final determination,
pursuant to section 705(a)(2) of the Act and 19 CFR 351.206, we
continue to find that critical circumstances exist for Yuzhan, the non-
responsive companies, and all other producers and/or exporters. With
respect to finding that critical circumstances exist for the non-
responsive companies, we relied on AFA, pursuant to sections 776(a) and
(b) of the Act. For a full description of the methodology, see the
Issues and Decision Memorandum.
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\9\ Commerce did not receive responses to its quantity and value
questionnaire from the following companies: HC Packaging Asia
(Industrial Park), Honha Eco Pulp Viet Nam Paper Tray, and Pulp
Tray, Martin Vietnam Co. Ltd.
\10\ See Preliminary Determination, 90 FR at 12127.
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Changes Since the Preliminary Determination
Based on our review and analysis of the information received during
verification, our post-preliminary analysis, and comments received from
parties, for this final determination, we made certain changes to the
countervailable subsidy rate calculations for Yuzhan, HC Packaging Asia
(Industrial Park), Honha Eco Pulp Viet Nam Paper Tray, Pulp Tray Martin
Vietnam Co. Ltd., and all other producers/exporters. For a discussion
of these changes, see the 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 those exporters and/or
producers individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates based entirely under
section 776 of the Act. In this investigation, Commerce calculated a
total subsidy rate that is not zero, de minimis or based entirely on
facts available for Yuzhan, the sole mandatory respondent in this
proceeding. Consequently, the subsidy rate calculated for Yuzhan is
also assigned as the subsidy rate for all other producers and
exporters.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period January 1, 2023, through December
31, 2023:
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Subsidy rate
Company (percent ad
valorem)
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Vietnam Yuzhan Packaging Technology Co. Ltd......... 5.06
HC Packaging Asia (Industrial Park)................. * 200.70
Honha Eco Pulp Viet Nam Paper Tray.................. * 200.70
Pulp Tray, Martin Vietnam Co. Ltd................... * 200.70
All Others.......................................... 5.06
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in 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).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of entries of molded fiber products, as described in the
scope of the investigation section, that were entered, or withdrawn
from warehouse, for consumption 90 days before March 14, 2025, the date
of publication of the Preliminary Determination in the Federal Register
for entries produced and/or exported by Yuzhan, the non-responsive
companies and all other producers and exporters. In accordance with
section 703(d) of the Act, we instructed CBP to discontinue the
suspension of liquidation of all entries of molded fiber products
entered or withdrawn from warehouse on, or after, July 12, 2025, but to
continue the suspension of liquidation of all entries of molded fiber
products between December 14, 2024, and July 11, 2025.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, 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 canceled.
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 molded fiber
products from Vietnam. Because the final determination is affirmative,
in accordance with section 705(b) of the Act, the ITC will make its
final determination as to whether the domestic industry in the United
States is materially injured, or threatened with material injury, by
reason of imports of molded fiber products from Vietnam no later than
45 days after this final determination. In addition, we are making
available to the ITC all non-privileged and nonproprietary information
related to this investigation. We will allow the ITC access to all
privileged and business proprietary information in our files, provided
the ITC confirms that it will not disclose such information, either
publicly or under an administrative protective order (APO), without the
written consent of the Assistant Secretary for Enforcement and
Compliance. If the ITC determines that material injury or threat of
material injury does not exist, this proceeding will be terminated and
all cash deposits will be refunded.
If the ITC determines that such injury does exist, Commerce will
issue a CVD order directing CBP to assess, upon further instruction by
Commerce, countervailing duties on all imports of the subject
merchandise that are entered, or withdrawn from warehouse,
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for consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
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 an 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: September 24, 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 dried/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 are relatively dense, with a
typical fiber density above 0.5 grams per cubic centimeter, and are
generally characterized by relatively smooth surfaces. They 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 this investigation 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 if the subject product is encased by exterior
packaging. 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.
Also excluded from the scope of this investigation are products
covered by the scope of the antidumping and countervailing duty
orders on paper plates from People's Republic of China, the Kingdom
of Thailand, and the Socialist Republic of Vietnam.
Excluded from the scope of this investigation are thermoformed
molded fiber products imported as packaging material that enclose
and/or surround non-subject merchandise prepackaged for final sale
upon importation into the United States (e.g., molded fiber
packaging surrounding a cellular phone).
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, Harmonized Tariff
Schedule of the United States (HTSUS). Imports may also be
classified under subheadings 4823.61.0020, 4823.61.0040,
4823.69.0020, 4823.69.0040, 4823.90.1000, 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 Issues and Decision Memorandum
I. Summary
II. Background
III. Changes Since the Preliminary Determination
IV. Final Affirmative Determination of Critical Circumstances
V. Calculation of the All-Others Rate
VI. Use of Facts Otherwise Available and Application of Adverse
Inferences
VII. Subsidies Valuation Information
VIII. Interest Rate, Discount Rate and Chinese Pulp Benchmarks
IX. Analysis of Programs
X. Discussion of the Issues
Comment 1: Whether Commerce Should Apply Adverse Facts Available
(AFA) to Yuzhan's Sales Denominators
Comment 2: Whether Commerce Should Find that the Government of
the Socialist Republic of Vietnam (GOV) Entrust or Directs Yuzhan's
Landlord Regarding the Provision of Land, Water and Sewage
Comment 3: Whether Commerce Should Include Purchases of Pulp
from Affiliated Parties in Yuzhan's Benefit Calculation
Comment 4: Whether Commerce Should Correct Clerical Errors in
its Chinese Pulp for Less-Than-Adequate-Remuneration (LTAR)
Calculation
Comment 5: Whether Commerce has Statutory Authority for
Transnational Subsidy Investigations
Comment 6: Whether the Cross-Border Provision of Chinese Pulp
for LTAR Meets Statutory Financial Contribution and Specificity
Requirements
Comment 7: Whether Yuzhan's Loans from Bank of China (Hong Kong)
Limited are Countervailable
Comment 8: Whether the GOV's Import Duty Exemption Program for
Export Processing Enterprises and Export Processing Zones Program is
Countervailable
Comment 9: Whether the GOV's Import Duty Exemption Program for
Export Processing Enterprises and Export Processing Zones Program
and the Preferential Lending to Exporters by State-Owned Commercial
Banks (SOCBs) Program are Tied to Export Sales
Comment 10: Whether Commerce Incorrectly Included Certain
Interest Payments in its Benefit Calculation for the Preferential
Lending to Exporters by SOCBs Program
XI. Recommendation
[FR Doc. 2025-18899 Filed 9-29-25; 8:45 am]
BILLING CODE 3510-DS-P
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