Laminated Woven Sacks From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Determination, in Part, of Critical Circumstances, 35639-35642 [E8-14256]
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Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices
Washington; K-K Packing & Storage,
L.L.C., Zillah, Washington; Manzaneros
Mexicanos De Washington, Yakima,
Washington; Orchard View Farms, The
Dalles, Oregon; and Peshastin Hi-Up
Growers, Peshastin, Washington.
Dated: June 19, 2008.
Jeffrey Anspacher,
Director, Export Trading Company Affairs.
[FR Doc. E8–14233 Filed 6–23–08; 8:45 am]
BILLING CODE 3510–DR–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–533–810]
Stainless Steel Bar from India: Notice
of Extension of Time Limit for the Final
Results of the 2006–2007 Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: June 24, 2008.
FOR FURTHER INFORMATION CONTACT:
Devta Ohri, AD/CVD Operations, Office
1, Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230; telephone (202) 482–3853.
SUPPLEMENTARY INFORMATION:
ebenthall on PRODPC60 with NOTICES
AGENCY:
Background
On February 21, 1995, the Department
of Commerce (‘‘Department’’) published
in the Federal Register the antidumping
duty order on stainless steel bar (‘‘SSB’’)
from India. See Antidumping Duty
Orders: Stainless Steel Bar form Brazil,
India and Japan, 60 FR 9661 (February
21, 1995). On March 28, 2007, the
Department published a notice in the
Federal Register initiating an
administrative review of the
antidumping duty order on SSB from
India for three companies for the period
of review (‘‘POR’’) February 1, 2006,
through January 31, 2007. See Initiation
of Antidumping and Countervailing
Duty Administrative Reviews, 72 FR
14516 (February 28, 2007). On March 7,
2008, the Department published its
preliminary results of the 2006–2007
antidumping duty administrative
review. See Stainless Steel Bar from
India: Notice of Preliminary Results and
Partial Rescission of Antidumping Duty
Administrative Review, 73 FR 12382
(March 7, 2008); as corrected, Stainless
Steel Bar from India: Notice of
Preliminary Results and Partial
Rescission of Antidumping Duty
Administrative Review, 73 FR 15049
(March 20, 2008). The final results for
VerDate Aug<31>2005
12:39 Jun 23, 2008
Jkt 214001
this review are currently due no later
than July 7, 2008.
Extension of Time Limit of Final
Results
Section 751(a)(3)(A) of the Tariff Act
of 1930, as amended (‘‘the Act’’),
requires the Department to issue final
results within 120 days after the date on
which the preliminary results are
published. However, if it is not
practicable to complete the review
within this time period, section
751(a)(3)(A) of the Act allows the
Department to extend the time period to
a maximum of 180 days.
Completion of the final results of the
administrative review within the 120day period in this case is not practicable
because, following the preliminary
results, the Department issued a
comprehensive supplemental
questionnaire concerning Sunflag Iron &
Steel Co. Ltd.’s (‘‘Sunflag’’) affiliations.
In addition, the Department has
received multiple deficiency comments
from domestic interested parties. The
Department requires additional time to
analyze the Sunflag’s supplemental
questionnaire response and the
comments from the domestic interested
parties.
Because it is not practicable to
complete this review within the time
specified under the Act, we are fully
extending the time period for issuing
the final results of the administrative
review in accordance with section
751(a)(3)(A) of the Act. Therefore, the
final results are now due no later than
September 3, 2008.
This notice is published pursuant to
sections 751(a) and 777(i) of the Act.
Dated: June 18, 2008.
Stephen J. Claeys,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E8–14271 Filed 6–23–08; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–917]
Laminated Woven Sacks From the
People’s Republic of China: Final
Affirmative Countervailing Duty
Determination and Final Affirmative
Determination, in Part, of Critical
Circumstances
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) has reached a final
determination that countervailable
AGENCY:
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35639
subsidies are being provided to
producers/exporters of laminated woven
sacks (LWS) from the People’s Republic
of China (PRC). For information on the
estimated subsidy rates, see the ‘‘Final
Determination’’ section of this notice.
EFFECTIVE DATE: June 24, 2008.
FOR FURTHER INFORMATION CONTACT:
Sean Carey, Gene Calvert, or Paul
Matino, AD/CVD Operations, Office 6,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, Room 7866, 14th Street
and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202)
482–3964, (202) 482–3586, or (202) 482–
4146, respectively.
SUPPLEMENTARY INFORMATION:
Case History
The following events have occurred
since the publication of the preliminary
determination in the Federal Register
on December 3, 2007. See Laminated
Woven Sacks From the People’s
Republic of China: Preliminary
Affirmative Countervailing Duty
Determination; Preliminary Affirmative
Determination of Critical
Circumstances, In Part; and Alignment
of Final Countervailing Duty
Determination with Final Antidumping
Duty Determination, 72 FR 67893
(December 3, 2007) (Preliminary
Determination). On December 13, 2007,
the Department issued supplemental
questionnaires to Zibo Aifudi Plastic
Packaging Co., Ltd. (Aifudi) and
Shandong Shouguang Jianyuanchun
Co., Ltd. and its cross–owned affiliate
Shandong Longxing Plastic Products
Co., Ltd. (SSJ/SLP).1 We issued a
supplemental questionnaire to the
Government of the People’s Republic of
China (GOC) on December 14, 2007. We
received responses to these
questionnaires from SSJ/SLP on January
2, 2008, and from the GOC and Aifudi
on January 3, 2008. We issued an
1 SSJ was one of the four mandatory company
respondents selected by the Department. See
Memorandum to Stephen J. Claeys, Deputy
Assistant Secretary for Import Administration,
‘‘Respondent Selection’’ (July 31, 2007). This
memorandum is on file in the Central Records Unit
(CRU), Room 1117 of the main Commerce building.
Subsequently, we determined that SSJ was crossowned with SLP (see Preliminary Determination, 72
FR at 67900) (December 3, 2007), and for purposes
of this final determination, we are referring to these
mandatory respondents as SSJ/SLP. The other three
mandatory company respondents are: Han Shing
Chemical Co., Ltd. (Han Shing Chemical), Ningbo
Yong Feng Packaging Co., Ltd. (Ningbo), Shangdong
Qilu Plastic Fabric Group, Ltd. (Qilu). On October
24, 2007, the Department accepted Aifudi as a
voluntary respondent for the investigation pursuant
to 19 CFR 351.204(d)(2). See Memorandum to
Stephen J. Claeys, Deputy Assistant Secretary for
Import Administration, ‘‘Voluntary Respondent
Selection’’ (October 24, 2007). This memorandum is
on file in the Department’s CRU.
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35640
Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices
additional supplemental questionnaire
to SSJ/SLP on January 11, 2008, and
received a response on January 17, 2008.
On December 27, 2007, the Department
received requests for a hearing from the
Laminated Woven Sacks Committee and
its individual members, Bancroft Bag,
Inc., Coating Excellence International,
LLC, Hood Packaging Corporation, Mid–
America Packaging, LLC, and Polytex
Fibers Corporation (collectively,
petitioners), and from the GOC.
Parties submitted timely comments on
the Department’s analysis of land–use
rights as requested in the Preliminary
Determination. Subsequent to the
Preliminary Determination, parties also
submitted factual information,
comments, or clarifying information at
several points prior to this final
determination based on deadlines for
submissions of factual information and/
or arguments established by the
Department or in accordance with 19
CFR 351.301(a)(1).
On January 22, 2008, the Department
decided not to verify SSJ/SLP. See
Letter to SSJ/SLP, Countervailing Duty
Investigation: Laminated Woven Sacks
from the People’s Republic of China
(January 22, 2008) (on file in the
Department’s CRU). From January 16
through January 25, 2008, we conducted
verification of the questionnaire
responses submitted by the GOC,
including the national, provincial, and
local governments, and Aifudi. The
Department issued verification reports
on February 28, 2008 and March, 4,
2008. See Memoranda to the File,
Countervailing Duty Investigation:
Laminated Woven Sacks (LWS) from the
People’s Republic of China: Verification
of the Questionnaire Responses
Submitted by the Government of the
People’s Republic of China (GOC) –
Central Government; Countervailing
Duty Investigation: Laminated Woven
Sacks (LWS) from the People’s Republic
of China: Verification of the
Questionnaire Responses Submitted by
the Government of the People’ Republic
Of China (GOC) – Provincial and Local
Government; and Countervailing Duty
Investigation: Laminated Woven Sacks
(LWS) from the People’s Republic of
China: Verification of the Questionnaire
Responses Submitted by Zibo Aifudi
Plastic Packaging Co., Ltd.
On April 22, 2008, we issued our
post–preliminary determination
regarding the new subsidy allegations,
which we had decided to investigate on
November 2, 2007. See Memorandum to
David M. Spooner, Assistant Secretary
for Import Administration,
Countervailing Duty Investigation of
Laminated Woven Sacks from the
People’s Republic of China; Post–
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12:39 Jun 23, 2008
Jkt 214001
Preliminary Analysis of New Subsidy
Allegations (April 22, 2008) (Post–
Preliminary Analysis), on file in the
Department’s CRU.
We received case briefs from the GOC,
Aifudi, and petitioners on May 2, 2008.
The same parties submitted rebuttal
briefs on May 7, 2008. On May 8, 2008,
the GOC’s case brief was returned
because the Department determined that
it contained untimely new factual
information, as well as timely filed new
factual information related to the
Department’s Post–Preliminary
Analysis. The GOC resubmitted its case
brief on May 12, 2008 without the
untimely filed new factual information.
On May 8, 2008 we informed all parties
that they had an opportunity to rebut
the new factual information submitted
by the GOC pertaining to the
Department’s Post–Preliminary
Analysis. On May 12, 2008, petitioners
submitted factual information to rebut
information provided by the GOC. We
held a public hearing for this
investigation on May 14, 2008.
Period of Investigation
The period of investigation (POI) for
which we are measuring subsidies is
calendar year 2006.
Scope of the Investigation
In the Preliminary Determination, we
stated that we had received scope
comments from petitioners, and that
such comments would be addressed in
the preliminary determination of the
companion antidumping investigation.
See Preliminary Determination, 72 FR at
67894. Based on those comments, the
Department determined to amend the
scope of the investigation and afforded
interested parties the opportunity to
comment on those changes. See
Laminated Woven Sacks From the
People’s Republic of China: Preliminary
Determination of Sales at Less Than Fair
Value, Partial Affirmative Determination
of Critical Circumstances, and
Postponement of Final Determination,
73 FR 5801 (January 31, 2008). No
parties provided comments, and as
such, we are making no changes to the
scope as set forth in the preliminary
determination in the companion
antidumping investigation. See id.
The merchandise covered by this
investigation is laminated woven sacks.
Laminated woven sacks are bags or
sacks consisting of one or more plies of
fabric consisting of woven
polypropylene strip and/or woven
polyethylene strip, regardless of the
width of the strip; with or without an
extrusion coating of polypropylene and/
or polyethylene on one or both sides of
the fabric; laminated by any method
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Sfmt 4703
either to an exterior ply of plastic film
such as biaxially–oriented
polypropylene (‘‘BOPP’’) or to an
exterior ply of paper that is suitable for
high quality print graphics;2 printed
with three colors or more in register;
with or without lining; whether or not
closed on one end; whether or not in
roll form (including sheets, lay–flat
tubing, and sleeves); with or without
handles; with or without special closing
features; not exceeding one kilogram in
weight. Laminated woven sacks are
typically used for retail packaging of
consumer goods such as pet foods and
bird seed.
Effective July 1, 2007, laminated
woven sacks are classifiable under
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’) subheadings
6305.33.0050 and 6305.33.0080.
Laminated woven sacks were previously
classifiable under HTSUS subheading
6305.33.0020. If entered with plastic
coating on both sides of the fabric
consisting of woven polypropylene strip
and/or woven polyethylene strip,
laminated woven sacks may be
classifiable under HTSUS subheadings
3923.21.0080, 3923.21.0095, and
3923.29.0000. If entered not closed on
one end or in roll form (including
sheets, lay–flat tubing, and sleeves),
laminated woven sacks may be
classifiable under other HTSUS
subheadings including 3917.39.0050,
3921.90.1100, 3921.90.1500, and
5903.90.2500.
If the polypropylene strips and/or
polyethylene strips making up the fabric
measure more than 5 millimeters in
width, laminated woven sacks may be
classifiable under other HTSUS
subheadings including 4601.99.0500,
4601.99.9000, and 4602.90.000.
Although HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
scope of this investigation is dispositive.
Injury Test
Because the PRC is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Tariff
Act of 1930, as amended (the Act),
section 701(a)(2) of the Act applies to
this investigation. Accordingly, the
International Trade Commission (ITC)
must determine whether imports of the
subject merchandise from the PRC
materially injure, or threaten material
injury to, a U.S. industry, or whether
such imports materially retard the
2 ‘‘Paper suitable for high quality print graphics,‘‘
as used herein, means paper having an ISO
brightness of 82 or higher and a Sheffield
Smoothness of 250 or less. Coated free sheet is an
example of a paper suitable for high quality print
graphics.
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Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices
establishment of an industry in the
United States. On August 14, 2007, the
ITC published its preliminary
determination that there is a reasonable
indication that an industry in the
United States is materially retarded by
reason of imports from the PRC of
Laminated Woven Sacks. See Laminated
Woven Sacks from China, USITC Pub.
3942, Inv. Nos. 701–TA–450 and 731TA- 1122 (Preliminary) (August 2007).
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised by
interested parties in their case briefs and
rebuttal briefs on the Preliminary
Determination and the Post–Preliminary
Analysis, are discussed in the Issues
and Decision Memorandum for the
Final Determination in the
Countervailing Duty Determination of
Laminated Woven Sacks from the
People’s Republic of China (Decision
Memorandum). A list of the subsidy
programs and of the issues that parties
have raised is attached to this notice as
Appendix I. Parties can find a complete
discussion of all of the subsidy
programs and issues raised in this
investigation and the corresponding
recommendations in this public
memorandum, which is on file in the
Department’s CRU. A complete version
of the Decision Memorandum is
available at https://www.trade.gov/ia
under the heading ‘‘Federal Register
Notices.’’ The paper copy and the
electronic version of the Decision
Memorandum are identical in content.
ebenthall on PRODPC60 with NOTICES
Application of Facts Available,
Including the Application of Adverse
Inferences
For purposes of this final
determination, we have relied on facts
available and have used adverse
inferences to determine the
countervailable subsidy rates for the
four mandatory company respondents:
Han Shing Chemical, Ningbo, Qilu, and
SSJ/SLP, in accordance with sections
776(a) and (b) of the Act. In addition, we
are also applying facts available with an
adverse inference, in part, with respect
to our determination of the
countervailability of two programs:
Government Policy Lending and
Government Provision of Inputs for Less
Than Adequate Remuneration. A full
discussion of our decision to apply
adverse facts available is presented in
the Decision Memorandum in the
sections ‘‘Application of Facts Available
and Use of Adverse Inferences’’ and in
‘‘Analysis of Comments’’ (Comments 3,
4, 5, 13 and 19).
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12:39 Jun 23, 2008
Jkt 214001
Critical Circumstances
Pursuant to section 705(a)(2) of the
Act, in order to find critical
circumstances, the Department must
find that there are countervailable
subsidies that are inconsistent with the
World Trade Organization Agreement
on Subsidies and Countervailing
Measures (the Subsidies Agreement),
and that there have been massive
imports over a relatively short period
(i.e., whether there was a surge in
imports). For purposes of this final
determination, we are making an
affirmative determination of critical
circumstances with respect to all four
mandatory respondents (Han Shing
Chemical, Ningbo, Qilu, and SSJ/SLP).
For the voluntary respondent, Aifudi,
we are making a negative final
determination of critical circumstances
because we verified that it has not
received any subsidies that are
inconsistent with the Subsidies
Agreement. For ‘‘all others,’’ we have
made a negative determination of
critical circumstances in accordance
with section 705(a)(2) of the Act. For a
complete discussion of our critical
circumstances determination, see the
‘‘Critical Circumstances’’ section in the
Decision Memorandum.
35641
entries of LWS produced/exported by
Han Shing Chemical and Ningbo, we
instructed U.S. Customs and Border
Protection (CBP), in accordance with
sections 703(d)(1)(B) and (2) and
703(e)(2)(A) of the Act, to suspend
liquidation of entries of LWS produced/
exported by Han Shing Chemical and
Ningbo which were entered, or
withdrawn from warehouse, for
consumption on or after December 3,
2007, and to apply the suspension of
liquidation to any unliquidated entries
entered, or withdrawn from warehouse,
for consumption on or after September
4, 2007 (90 days before the date of
publication of the Preliminary
Determination). For all other producers/
exporters, we ordered CBP to suspend
liquidation for all entries entered, or
withdrawn from warehouse, on or after
December 3, 2007.
In accordance with section 703(d) of
the Act, we instructed CBP to
discontinue the suspension of
liquidation for countervailing duty
purposes for subject merchandise
entered on or after April 1, 2008, but to
continue the suspension of liquidation
of entries made from Han Shing
Chemical and Ningbo from September 4,
2007 through April 1, 2008 and, for all
Final Determination
other entries, to continue the
In accordance with section
suspension of liquidation from
705(c)(1)(B)(i) of the Act, we determine
December 3, 2007 through April 1, 2008.
the total countervailable subsidy rates to Now that the Department has reached a
be:
final affirmative determination of
critical circumstances for Qilu and SSJ/
Net Subsidy SLP, pursuant to section 705(c)(4)(B) of
Producer/Exporter
Rate
the Act, we will instruct CBP to apply
the previously ordered suspension of
Han Shing Chemical Co., Ltd.
(Han Shing Chemical) ...........
223.74% liquidation for Qilu and SSJ/SLP
Ningbo Yong Feng packaging
retroactively to any unliquidated entries
Co., Ltd. (Ningbo) .................
223.74% entered, or withdrawn from warehouse,
Shandong Qilu Plastic Fabric
for consumption on or after September
Group, Ltd. (Qilu) ..................
304.40% 4, 2007 (90 days before the date of
Shandong Shouguang
publication of the Preliminary
Jianyuan Chun Co., Ltd.
Determination) and on or before April 1,
(SSJ) / Shandong Longxing
2008.
Plastic Products Company
Ltd. (SLP) ..............................
352.82%
If the ITC issues a final affirmative
Zibo Aifudi Plastic Packaging
determination of injury, we will issue a
Co., Ltd. (Aifudi) ....................
29.54%
countervailing duty order, reinstate
All Others ..................................
226.85%
suspension of liquidation under section
706(a) of the Act for all entries, and
In accordance with section
require a cash deposit of estimated
705(c)(5)(A)(ii) of the Act, we have
countervailing duties for such entries of
determined that the most reasonable
merchandise at the rates indicated
method for determining the all others
above. If the ITC determines that
rate is a simple average of the four
material injury, threat of material injury
mandatory respondents’ AFA rates and
to, or material retardation of, the
the calculated rate for Aifudi. See
domestic industry does not exist, this
Decision Memorandum at Comment 21
proceeding will be terminated and all
for a more detailed discussion of the all
estimated duties deposited or securities
others rate determination.
posted as a result of the suspension of
Suspension of Liquidation
Because we preliminarily determined liquidation will be refunded or
that critical circumstances existed for
canceled.
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35642
Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices
ITC Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. In addition, we are
making available to the ITC all non–
privileged and non–proprietary
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 it will not disclose such
information, either publicly or under an
administrative protective order (APO),
without the written consent of the
Assistant Secretary for Import
Administration.
Return or Destruction of Proprietary
Information
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with section 351.305(a)(3) of the
Department’s regulations. Failure to
comply is a violation of the APO.
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act.
Dated: June 16, 2008.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
Appendix I: Decision Memorandum
I. Summary
II. Background
III. Application of Facts Available and
Use of Adverse Inferences
A. Application of Facts Available,
Including the Application of
Adverse Inferences
B. Selection of the Adverse Facts
Available
IV. Critical Circumstances
V. Subsidies Valuation Information
A. Attribution of Subsidies and
Cross–Ownership
B. Loan Benchmarks and Discount
Rate
VI. Analysis of Programs
ebenthall on PRODPC60 with NOTICES
A. Programs Determined to Be
Countervailable
B. Program Determined to Be Not
Countervailable
C. Programs Determined to Be Not
Used by Aifudi
D. Programs Determined to Be
Terminated
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12:39 Jun 23, 2008
Jkt 214001
VII. Analysis of Comments
Comment 1: Application of the
Countervailing Duty Law to Non–
Market Economy Countries
Comment 2: Whether the Department
Can Measure Subsidies that have been
Alleged to Occur Prior to the
Department’s Determination to Apply
CVD Law to China
Comment 3: Whether the Department
Should Apply Adverse Facts Available
to All Mandatory Respondents
Comment 4: Whether the Department
Can Find that a Program Has Been Used
and Is Countervailable for Non–
Cooperating Respondents
Comment 5: Whether the Calculated
Rates for Aifudi Should be Applied as
Adverse Facts Available to the
Mandatory Respondents
Comment 6: Whether the Department
Should Apply Partial Adverse Facts
Available to Aifudi
Comment 7: Whether the Provision of
Electricity for Less Than Adequate
Remuneration Is Countervailable
Comment 8: Whether the GOC Provision
of Land Can Be Countervailed
Comment 9: Whether the GOC’s Sale of
Land–Use Rights is Specific
Comment 10: Whether the Department
Should Select Either a First–Tier or
Third–Tier Benchmark for the Provision
of Land–Use Rights for Less Than
Adequate Remuneration
Comment 11: Whether the Department
Can Lawfully Apply an External
Benchmark for the Provision of Land–
Use Rights for Less than Adequate
Remuneration
Comment 12: Whether the Provision of
Petrochemical Inputs for Less Than
Adequate Remuneration by SOEs is
Countervailable
Comment 13: Whether SOEs Distort the
Market in the PRC
Comment 14: Alternative Benchmark for
the Provision of Petrochemical Inputs
for Less Than Adequate Remuneration
Comment 15: Whether the Department
Can Use Data from the World Trade
Atlas to Determine a Benchmark for
Petrochemical Inputs
Comment 16: Whether the Sale of
Petrochemical Inputs is Consistent with
Market Principles
Comment 17: Whether the Department
Should Make an Adjustment for Freight
in the Benchmark for Petrochemical
Inputs
Comment 18: Whether the GOC
Provides Government Policy Lending to
the LWS Industry
Comment 19: Whether the Department
May Countervail the Policy Lending
Program as Adverse Facts Available
Comment 20: The Appropriate
Benchmark to Use for the Policy
Lending Program
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Comment 21: The Determination of the
All Others Rate
VIII. Recommendation
[FR Doc. E8–14256 Filed 6–23–08; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–915]
Light–Walled Rectangular Pipe and
Tube From People’s Republic of China:
Final Affirmative Countervailing Duty
Investigation Determination
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the ‘‘Department’’) has made a final
determination that countervailable
subsidies are being provided to
producers and exporters of light–walled
rectangular pipe and tube (‘‘LWR’’) from
the People’s Republic of China (‘‘PRC’’).
For information on the estimated
countervailing duty rates, please see the
‘‘Suspension of Liquidation’’ section,
below.
EFFECTIVE DATE: June 24, 2008./P≤
FOR FURTHER INFORMATION CONTACT:
Shane Subler, or Damian Felton, AD/
CVD Operations, Office 1, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–0189, or (202)
482–0133 respectively.
AGENCY:
Petitioner
The Petitioners in this investigation
are the Allied Tube & Conduit, Atlas
Tube, Bull Moose Tube, California Tube
and Steel, EXLTUBE, Hannibal
Industries, Leavitt Tube, Maruichi
American Corporation, Searing
Industries, Southland Tube, Vest, Inc.
Welded Tube and Western Tube
(collectively, ‘‘Petitioners’’).
Period of Investigation
The period for which we are
measuring subsidies, or period of
investigation, is January 1, 2006,
through December 31, 2006.
Case History
The following events have occurred
since the announcement of the
preliminary determination published in
the Federal Register on November 30,
2007. See Light–Walled Rectangular
Pipe and Tube from the People’s
Republic of China: Preliminary
Affirmative Countervailing Duty
E:\FR\FM\24JNN1.SGM
24JNN1
]]>Agencies
[Federal Register Volume 73, Number 122 (Tuesday, June 24, 2008)]
[Notices]
[Pages 35639-35642]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14256]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-917]
Laminated Woven Sacks From the People's Republic of China: Final
Affirmative Countervailing Duty Determination and Final Affirmative
Determination, in Part, of Critical Circumstances
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has reached a
final determination that countervailable subsidies are being provided
to producers/exporters of laminated woven sacks (LWS) from the People's
Republic of China (PRC). For information on the estimated subsidy
rates, see the ``Final Determination'' section of this notice.
EFFECTIVE DATE: June 24, 2008.
FOR FURTHER INFORMATION CONTACT: Sean Carey, Gene Calvert, or Paul
Matino, AD/CVD Operations, Office 6, Import Administration,
International Trade Administration, U.S. Department of Commerce, Room
7866, 14th Street and Constitution Avenue, NW, Washington, DC 20230;
telephone: (202) 482-3964, (202) 482-3586, or (202) 482-4146,
respectively.
SUPPLEMENTARY INFORMATION:
Case History
The following events have occurred since the publication of the
preliminary determination in the Federal Register on December 3, 2007.
See Laminated Woven Sacks From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination; Preliminary
Affirmative Determination of Critical Circumstances, In Part; and
Alignment of Final Countervailing Duty Determination with Final
Antidumping Duty Determination, 72 FR 67893 (December 3, 2007)
(Preliminary Determination). On December 13, 2007, the Department
issued supplemental questionnaires to Zibo Aifudi Plastic Packaging
Co., Ltd. (Aifudi) and Shandong Shouguang Jianyuanchun Co., Ltd. and
its cross-owned affiliate Shandong Longxing Plastic Products Co., Ltd.
(SSJ/SLP).\1\ We issued a supplemental questionnaire to the Government
of the People's Republic of China (GOC) on December 14, 2007. We
received responses to these questionnaires from SSJ/SLP on January 2,
2008, and from the GOC and Aifudi on January 3, 2008. We issued an
[[Page 35640]]
additional supplemental questionnaire to SSJ/SLP on January 11, 2008,
and received a response on January 17, 2008. On December 27, 2007, the
Department received requests for a hearing from the Laminated Woven
Sacks Committee and its individual members, Bancroft Bag, Inc., Coating
Excellence International, LLC, Hood Packaging Corporation, Mid-America
Packaging, LLC, and Polytex Fibers Corporation (collectively,
petitioners), and from the GOC.
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\1\ SSJ was one of the four mandatory company respondents
selected by the Department. See Memorandum to Stephen J. Claeys,
Deputy Assistant Secretary for Import Administration, ``Respondent
Selection'' (July 31, 2007). This memorandum is on file in the
Central Records Unit (CRU), Room 1117 of the main Commerce building.
Subsequently, we determined that SSJ was cross-owned with SLP (see
Preliminary Determination, 72 FR at 67900) (December 3, 2007), and
for purposes of this final determination, we are referring to these
mandatory respondents as SSJ/SLP. The other three mandatory company
respondents are: Han Shing Chemical Co., Ltd. (Han Shing Chemical),
Ningbo Yong Feng Packaging Co., Ltd. (Ningbo), Shangdong Qilu
Plastic Fabric Group, Ltd. (Qilu). On October 24, 2007, the
Department accepted Aifudi as a voluntary respondent for the
investigation pursuant to 19 CFR 351.204(d)(2). See Memorandum to
Stephen J. Claeys, Deputy Assistant Secretary for Import
Administration, ``Voluntary Respondent Selection'' (October 24,
2007). This memorandum is on file in the Department's CRU.
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Parties submitted timely comments on the Department's analysis of
land-use rights as requested in the Preliminary Determination.
Subsequent to the Preliminary Determination, parties also submitted
factual information, comments, or clarifying information at several
points prior to this final determination based on deadlines for
submissions of factual information and/or arguments established by the
Department or in accordance with 19 CFR 351.301(a)(1).
On January 22, 2008, the Department decided not to verify SSJ/SLP.
See Letter to SSJ/SLP, Countervailing Duty Investigation: Laminated
Woven Sacks from the People's Republic of China (January 22, 2008) (on
file in the Department's CRU). From January 16 through January 25,
2008, we conducted verification of the questionnaire responses
submitted by the GOC, including the national, provincial, and local
governments, and Aifudi. The Department issued verification reports on
February 28, 2008 and March, 4, 2008. See Memoranda to the File,
Countervailing Duty Investigation: Laminated Woven Sacks (LWS) from the
People's Republic of China: Verification of the Questionnaire Responses
Submitted by the Government of the People's Republic of China (GOC) -
Central Government; Countervailing Duty Investigation: Laminated Woven
Sacks (LWS) from the People's Republic of China: Verification of the
Questionnaire Responses Submitted by the Government of the People'
Republic Of China (GOC) - Provincial and Local Government; and
Countervailing Duty Investigation: Laminated Woven Sacks (LWS) from the
People's Republic of China: Verification of the Questionnaire Responses
Submitted by Zibo Aifudi Plastic Packaging Co., Ltd.
On April 22, 2008, we issued our post-preliminary determination
regarding the new subsidy allegations, which we had decided to
investigate on November 2, 2007. See Memorandum to David M. Spooner,
Assistant Secretary for Import Administration, Countervailing Duty
Investigation of Laminated Woven Sacks from the People's Republic of
China; Post-Preliminary Analysis of New Subsidy Allegations (April 22,
2008) (Post-Preliminary Analysis), on file in the Department's CRU.
We received case briefs from the GOC, Aifudi, and petitioners on
May 2, 2008. The same parties submitted rebuttal briefs on May 7, 2008.
On May 8, 2008, the GOC's case brief was returned because the
Department determined that it contained untimely new factual
information, as well as timely filed new factual information related to
the Department's Post-Preliminary Analysis. The GOC resubmitted its
case brief on May 12, 2008 without the untimely filed new factual
information. On May 8, 2008 we informed all parties that they had an
opportunity to rebut the new factual information submitted by the GOC
pertaining to the Department's Post-Preliminary Analysis. On May 12,
2008, petitioners submitted factual information to rebut information
provided by the GOC. We held a public hearing for this investigation on
May 14, 2008.
Period of Investigation
The period of investigation (POI) for which we are measuring
subsidies is calendar year 2006.
Scope of the Investigation
In the Preliminary Determination, we stated that we had received
scope comments from petitioners, and that such comments would be
addressed in the preliminary determination of the companion antidumping
investigation. See Preliminary Determination, 72 FR at 67894. Based on
those comments, the Department determined to amend the scope of the
investigation and afforded interested parties the opportunity to
comment on those changes. See Laminated Woven Sacks From the People's
Republic of China: Preliminary Determination of Sales at Less Than Fair
Value, Partial Affirmative Determination of Critical Circumstances, and
Postponement of Final Determination, 73 FR 5801 (January 31, 2008). No
parties provided comments, and as such, we are making no changes to the
scope as set forth in the preliminary determination in the companion
antidumping investigation. See id.
The merchandise covered by this investigation is laminated woven
sacks. Laminated woven sacks are bags or sacks consisting of one or
more plies of fabric consisting of woven polypropylene strip and/or
woven polyethylene strip, regardless of the width of the strip; with or
without an extrusion coating of polypropylene and/or polyethylene on
one or both sides of the fabric; laminated by any method either to an
exterior ply of plastic film such as biaxially-oriented polypropylene
(``BOPP'') or to an exterior ply of paper that is suitable for high
quality print graphics;\2\ printed with three colors or more in
register; with or without lining; whether or not closed on one end;
whether or not in roll form (including sheets, lay-flat tubing, and
sleeves); with or without handles; with or without special closing
features; not exceeding one kilogram in weight. Laminated woven sacks
are typically used for retail packaging of consumer goods such as pet
foods and bird seed.
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\2\ ``Paper suitable for high quality print graphics,`` as used
herein, means paper having an ISO brightness of 82 or higher and a
Sheffield Smoothness of 250 or less. Coated free sheet is an example
of a paper suitable for high quality print graphics.
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Effective July 1, 2007, laminated woven sacks are classifiable
under Harmonized Tariff Schedule of the United States (``HTSUS'')
subheadings 6305.33.0050 and 6305.33.0080. Laminated woven sacks were
previously classifiable under HTSUS subheading 6305.33.0020. If entered
with plastic coating on both sides of the fabric consisting of woven
polypropylene strip and/or woven polyethylene strip, laminated woven
sacks may be classifiable under HTSUS subheadings 3923.21.0080,
3923.21.0095, and 3923.29.0000. If entered not closed on one end or in
roll form (including sheets, lay-flat tubing, and sleeves), laminated
woven sacks may be classifiable under other HTSUS subheadings including
3917.39.0050, 3921.90.1100, 3921.90.1500, and 5903.90.2500.
If the polypropylene strips and/or polyethylene strips making up
the fabric measure more than 5 millimeters in width, laminated woven
sacks may be classifiable under other HTSUS subheadings including
4601.99.0500, 4601.99.9000, and 4602.90.000. Although HTSUS subheadings
are provided for convenience and customs purposes, the written
description of the scope of this investigation is dispositive.
Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Tariff Act of 1930, as amended (the
Act), section 701(a)(2) of the Act applies to this investigation.
Accordingly, the International Trade Commission (ITC) must determine
whether imports of the subject merchandise from the PRC materially
injure, or threaten material injury to, a U.S. industry, or whether
such imports materially retard the
[[Page 35641]]
establishment of an industry in the United States. On August 14, 2007,
the ITC published its preliminary determination that there is a
reasonable indication that an industry in the United States is
materially retarded by reason of imports from the PRC of Laminated
Woven Sacks. See Laminated Woven Sacks from China, USITC Pub. 3942,
Inv. Nos. 701-TA-450 and 731- TA- 1122 (Preliminary) (August 2007).
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised by
interested parties in their case briefs and rebuttal briefs on the
Preliminary Determination and the Post-Preliminary Analysis, are
discussed in the Issues and Decision Memorandum for the Final
Determination in the Countervailing Duty Determination of Laminated
Woven Sacks from the People's Republic of China (Decision Memorandum).
A list of the subsidy programs and of the issues that parties have
raised is attached to this notice as Appendix I. Parties can find a
complete discussion of all of the subsidy programs and issues raised in
this investigation and the corresponding recommendations in this public
memorandum, which is on file in the Department's CRU. A complete
version of the Decision Memorandum is available at https://
www.trade.gov/ia under the heading ``Federal Register Notices.'' The
paper copy and the electronic version of the Decision Memorandum are
identical in content.
Application of Facts Available, Including the Application of Adverse
Inferences
For purposes of this final determination, we have relied on facts
available and have used adverse inferences to determine the
countervailable subsidy rates for the four mandatory company
respondents: Han Shing Chemical, Ningbo, Qilu, and SSJ/SLP, in
accordance with sections 776(a) and (b) of the Act. In addition, we are
also applying facts available with an adverse inference, in part, with
respect to our determination of the countervailability of two programs:
Government Policy Lending and Government Provision of Inputs for Less
Than Adequate Remuneration. A full discussion of our decision to apply
adverse facts available is presented in the Decision Memorandum in the
sections ``Application of Facts Available and Use of Adverse
Inferences'' and in ``Analysis of Comments'' (Comments 3, 4, 5, 13 and
19).
Critical Circumstances
Pursuant to section 705(a)(2) of the Act, in order to find critical
circumstances, the Department must find that there are countervailable
subsidies that are inconsistent with the World Trade Organization
Agreement on Subsidies and Countervailing Measures (the Subsidies
Agreement), and that there have been massive imports over a relatively
short period (i.e., whether there was a surge in imports). For purposes
of this final determination, we are making an affirmative determination
of critical circumstances with respect to all four mandatory
respondents (Han Shing Chemical, Ningbo, Qilu, and SSJ/SLP). For the
voluntary respondent, Aifudi, we are making a negative final
determination of critical circumstances because we verified that it has
not received any subsidies that are inconsistent with the Subsidies
Agreement. For ``all others,'' we have made a negative determination of
critical circumstances in accordance with section 705(a)(2) of the Act.
For a complete discussion of our critical circumstances determination,
see the ``Critical Circumstances'' section in the Decision Memorandum.
Final Determination
In accordance with section 705(c)(1)(B)(i) of the Act, we determine
the total countervailable subsidy rates to be:
------------------------------------------------------------------------
Net Subsidy
Producer/Exporter Rate
------------------------------------------------------------------------
Han Shing Chemical Co., Ltd. (Han Shing Chemical).......... 223.74[perc
nt]
Ningbo Yong Feng packaging Co., Ltd. (Ningbo).............. 223.74[perc
nt]
Shandong Qilu Plastic Fabric Group, Ltd. (Qilu)............ 304.40[perc
nt]
Shandong Shouguang Jianyuan Chun Co., Ltd. (SSJ) / Shandong 352.82[perc
Longxing Plastic Products Company Ltd. (SLP).............. nt]
Zibo Aifudi Plastic Packaging Co., Ltd. (Aifudi)........... 29.54[percn
t]
All Others................................................. 226.85[perc
nt]
------------------------------------------------------------------------
In accordance with section 705(c)(5)(A)(ii) of the Act, we have
determined that the most reasonable method for determining the all
others rate is a simple average of the four mandatory respondents' AFA
rates and the calculated rate for Aifudi. See Decision Memorandum at
Comment 21 for a more detailed discussion of the all others rate
determination.
Suspension of Liquidation
Because we preliminarily determined that critical circumstances
existed for entries of LWS produced/exported by Han Shing Chemical and
Ningbo, we instructed U.S. Customs and Border Protection (CBP), in
accordance with sections 703(d)(1)(B) and (2) and 703(e)(2)(A) of the
Act, to suspend liquidation of entries of LWS produced/exported by Han
Shing Chemical and Ningbo which were entered, or withdrawn from
warehouse, for consumption on or after December 3, 2007, and to apply
the suspension of liquidation to any unliquidated entries entered, or
withdrawn from warehouse, for consumption on or after September 4, 2007
(90 days before the date of publication of the Preliminary
Determination). For all other producers/exporters, we ordered CBP to
suspend liquidation for all entries entered, or withdrawn from
warehouse, on or after December 3, 2007.
In accordance with section 703(d) of the Act, we instructed CBP to
discontinue the suspension of liquidation for countervailing duty
purposes for subject merchandise entered on or after April 1, 2008, but
to continue the suspension of liquidation of entries made from Han
Shing Chemical and Ningbo from September 4, 2007 through April 1, 2008
and, for all other entries, to continue the suspension of liquidation
from December 3, 2007 through April 1, 2008. Now that the Department
has reached a final affirmative determination of critical circumstances
for Qilu and SSJ/SLP, pursuant to section 705(c)(4)(B) of the Act, we
will instruct CBP to apply the previously ordered suspension of
liquidation for Qilu and SSJ/SLP retroactively to any unliquidated
entries entered, or withdrawn from warehouse, for consumption on or
after September 4, 2007 (90 days before the date of publication of the
Preliminary Determination) and on or before April 1, 2008.
If the ITC issues a final affirmative determination of injury, we
will issue a countervailing duty order, reinstate suspension of
liquidation under section 706(a) of the Act for all entries, and
require a cash deposit of estimated countervailing duties for such
entries of merchandise at the rates indicated above. If the ITC
determines that material injury, threat of material injury to, or
material retardation of, the domestic industry 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.
[[Page 35642]]
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary 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 it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Import Administration.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with section
351.305(a)(3) of the Department's regulations. Failure to comply is a
violation of the APO.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: June 16, 2008.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
Appendix I: Decision Memorandum
I. Summary
II. Background
III. Application of Facts Available and Use of Adverse Inferences
A. Application of Facts Available, Including the Application of
Adverse Inferences
B. Selection of the Adverse Facts Available
IV. Critical Circumstances
V. Subsidies Valuation Information
A. Attribution of Subsidies and Cross-Ownership
B. Loan Benchmarks and Discount Rate
VI. Analysis of Programs
A. Programs Determined to Be Countervailable
B. Program Determined to Be Not Countervailable
C. Programs Determined to Be Not Used by Aifudi
D. Programs Determined to Be Terminated
VII. Analysis of Comments
Comment 1: Application of the Countervailing Duty Law to Non-Market
Economy Countries
Comment 2: Whether the Department Can Measure Subsidies that have been
Alleged to Occur Prior to the Department's Determination to Apply CVD
Law to China
Comment 3: Whether the Department Should Apply Adverse Facts Available
to All Mandatory Respondents
Comment 4: Whether the Department Can Find that a Program Has Been Used
and Is Countervailable for Non-Cooperating Respondents
Comment 5: Whether the Calculated Rates for Aifudi Should be Applied as
Adverse Facts Available to the Mandatory Respondents
Comment 6: Whether the Department Should Apply Partial Adverse Facts
Available to Aifudi
Comment 7: Whether the Provision of Electricity for Less Than Adequate
Remuneration Is Countervailable
Comment 8: Whether the GOC Provision of Land Can Be Countervailed
Comment 9: Whether the GOC's Sale of Land-Use Rights is Specific
Comment 10: Whether the Department Should Select Either a First-Tier or
Third-Tier Benchmark for the Provision of Land-Use Rights for Less Than
Adequate Remuneration
Comment 11: Whether the Department Can Lawfully Apply an External
Benchmark for the Provision of Land-Use Rights for Less than Adequate
Remuneration
Comment 12: Whether the Provision of Petrochemical Inputs for Less Than
Adequate Remuneration by SOEs is Countervailable
Comment 13: Whether SOEs Distort the Market in the PRC
Comment 14: Alternative Benchmark for the Provision of Petrochemical
Inputs for Less Than Adequate Remuneration
Comment 15: Whether the Department Can Use Data from the World Trade
Atlas to Determine a Benchmark for Petrochemical Inputs
Comment 16: Whether the Sale of Petrochemical Inputs is Consistent with
Market Principles
Comment 17: Whether the Department Should Make an Adjustment for
Freight in the Benchmark for Petrochemical Inputs
Comment 18: Whether the GOC Provides Government Policy Lending to the
LWS Industry
Comment 19: Whether the Department May Countervail the Policy Lending
Program as Adverse Facts Available
Comment 20: The Appropriate Benchmark to Use for the Policy Lending
Program
Comment 21: The Determination of the All Others Rate
VIII. Recommendation
[FR Doc. E8-14256 Filed 6-23-08; 8:45 am]
BILLING CODE 3510-DS-S
