Certain Glass Containers From the People's Republic of China: Initiation of Countervailing Duty Investigation, 56168-56171 [2019-22868]
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Federal Register / Vol. 84, No. 203 / Monday, October 21, 2019 / Notices
with 19 CFR 351.305(a)(3). Timely
notification of the return or destruction
of APO materials or conversion to
judicial protective order is hereby
requested. Failure to comply with the
regulations and the terms of an APO is
a violation subject to sanction.
Notification to Interested Parties
These determinations are issued and
published in accordance with sections
735(d) and 777(i) of the Act and 19 CFR
351.210(c).
Dated: October 15, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
[FR Doc. 2019–22879 Filed 10–18–19; 8:45 a.m.]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–115]
Certain Glass Containers From the
People’s Republic of China: Initiation
of Countervailing Duty Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable October 15, 2019.
FOR FURTHER INFORMATION CONTACT:
Maliha Khan or Eli Lovely, 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) 482–0895 or (202) 482–1593,
respectively.
AGENCY:
SUPPLEMENTARY INFORMATION:
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The Petition
On September 25, 2019, the U.S.
Department of Commerce (Commerce)
received a countervailing duty (CVD)
petition (Petition) concerning imports of
certain glass containers (glass
containers) from the People’s Republic
of China (China) filed in proper form on
behalf of the American Glass Packaging
Coalition (the petitioner).1 The CVD
Petition was accompanied by an
antidumping duty (AD) Petition
concerning imports of glass containers
from China.
On September 30, 2019, Commerce
requested supplemental information
pertaining to certain aspects of the
1 See Petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties on Certain Glass Containers from the
People’s Republic of China,’’ dated September 25,
2019 (the Petition).
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16:52 Oct 18, 2019
Jkt 250001
Petition.2 The petitioner filed responses
to this request on October 4, 2019.3
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), the petitioner alleges that the
Government of China (GOC) is
providing countervailable subsidies,
within the meaning of sections 701 and
771(5) of the Act, to producers of glass
containers in China, and that such
imports are materially injuring, or
threatening material injury to, the
domestic industry producing glass
containers in the United States.
Consistent with section 702(b)(1) of the
Act and 19 CFR 351.202(b), for those
alleged programs on which we are
initiating a CVD investigation, the
Petition is accompanied by information
reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner
filed this Petition on behalf of the
domestic industry because the
petitioner is an interested party as
defined in sections 771(9)(C) and (E) of
the Act. Commerce also finds that the
petitioner demonstrated sufficient
industry support with respect to the
initiation of the requested CVD
investigation.4
Period of Investigation
Because the Petition was filed on
September 25, 2019, the period of
investigation (POI) is January 1, 2018
through December 31, 2018.5
Scope of the Investigation
The merchandise covered by this
investigation is glass containers from
China. For a full description of the
scope of this investigation, see the
Appendix to this notice.
Comments on Scope of the Investigation
During our review of the Petition, we
contacted the petitioner regarding the
proposed scope to ensure that the scope
language in the Petition is an accurate
reflection of the products for which the
2 See Commerce’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties on Imports of Certain Glass Containers from
the People’s Republic of China: Supplemental
Questions,’’ dated September 30, 2019); see also
Commerce’s Letter, ‘‘Petition for the Imposition of
Countervailing Duties on Imports of Certain Glass
Containers from the People’s Republic of China:
Supplemental Questions,’’ dated September 30,
2019.
3 See Petitioner’s Letters, ‘‘Certain Glass
Containers from the People’s Republic of China:
Responses to First Supplemental Questions on
General Issues Volume I of the Petition,’’ dated
October 4, 2019; and ‘‘Certain Glass Containers
from the People’s Republic of China: Responses to
First Supplemental Questions on China CVD
Volume III of the Petition,’’ dated October 4, 2019.
4 See ‘‘Information Relating to the Degree of
Industry Support for the Petition’’ section, infra.
5 See 19 CFR 351.204(b)(1).
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domestic industry is seeking relief.6 As
a result, the scope of the Petition was
modified to clarify the description of the
merchandise covered by the Petition.
The description of the merchandise
covered by this investigation, as
described in the Appendix to this
notice, reflects these clarifications.
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(scope).7 Commerce will consider all
comments received from interested
parties and, if necessary, will consult
with interested parties prior to the
issuance of the preliminary
determination. If scope comments
include factual information,8 all such
factual information should be limited to
public information. To facilitate
preparation of its questionnaires,
Commerce requests that all interested
parties submit scope comments by 5:00
p.m. Eastern Time (ET) on November 4,
2019, which is 20 calendar days from
the signature date of this notice. Any
rebuttal comments, which may include
factual information, must be filed by
5:00 p.m. ET on November 14, 2019,
which is 10 calendar days from the
initial comment deadline.9
Commerce requests that any factual
information the parties consider
relevant to the scope of the investigation
be submitted during this time period.
However, if a party subsequently finds
that additional factual information
pertaining to the scope of the
investigation may be relevant, the party
may contact Commerce and request
permission to submit the additional
information. All such comments must
also be filed on the record of the
concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically using Enforcement
and Compliance’s Antidumping Duty
and Countervailing Duty Centralized
Electronic Service System (ACCESS).10
6 See AD Supplement Vol. I, at 1–4 and Exhibits
I–Supp–2 through I–Supp–4; see also
Memorandum, ‘‘Phone Call with Counsel to the
Petitioner,’’ dated October 8, 2019.
7 See Antidumping Duties; Countervailing Duties,
62 FR 27296, 27323 (May 19, 1997).
8 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
9 See 19 CFR 351.303(b).
10 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
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An electronically filed document must
be received successfully in its entirety
by the time and date it is due.
Documents exempted from the
electronic submission requirements
must be filed manually (i.e., in paper
form) with Enforcement and
Compliance’s APO/Dockets Unit, Room
18022, U.S. Department of Commerce,
1401 Constitution Avenue NW,
Washington, DC 20230, and stamped
with the date and time of receipt by the
applicable deadlines.
khammond on DSKJM1Z7X2PROD with NOTICES
Consultations
Pursuant to sections 702(b)(4)(A)(i)
and (ii) of the Act, Commerce notified
the GOC of the receipt of the Petition
and provided it the opportunity for
consultations with respect to the CVD
Petition.11 The GOC did not request
consultations.
Determination of Industry Support for
the Petition
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 702(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 702(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
Commerce shall: (i) Poll the industry or
rely on other information in order to
determine if there is support for the
petition, as required by subparagraph
(A); or (ii) determine industry support
using a statistically valid sampling
method to poll the ‘‘industry.’’
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers, as a
whole, of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
like product. The International Trade
Commission (ITC), which is responsible
for determining whether ‘‘the domestic
industry’’ has been injured, must also
determine what constitutes a domestic
like product in order to define the
access.trade.gov/help/Handbook%20on%20
Electronic%20Filling%20Procedures.pdf.
11 See Commerce’s Letter, ‘‘Countervailing Duty
Petition on Certain Glass Containers from China,’’
dated October 3, 2019.
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16:52 Oct 18, 2019
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industry. While both Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,12 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’s determination is subject to
limitations of time and information.
Although this may result in different
definitions of the like product, such
differences do not render the decision of
either agency contrary to law.13
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, the petitioner does not offer a
definition of the domestic like product
distinct from the scope of the Petition.14
Based on our analysis of the information
submitted on the record, we have
determined that glass containers, as
defined in the scope, constitute a single
domestic like product, and we have
analyzed industry support in terms of
that domestic like product.15
In determining whether the petitioner
has standing under section 732(c)(4)(A)
of the Act, we considered the industry
support data contained in the Petition
with reference to the domestic like
product as defined in the ‘‘Scope of the
Investigation,’’ in the Appendix to this
notice. To establish industry support,
the petitioner provided its own 2018
production of the domestic like product,
as well as the 2018 production of the
company that supports the Petition.16
12 See
section 771(10) of the Act.
USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd.
v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d 865 F.2d 240 (Fed. Cir. 1989)).
14 See Volume I of the Petition, at 15–17 and
Exhibit I–15; see also General Issues Supplement,
at 7.
15 For a discussion of the domestic like product
analysis as applied to this case and information
regarding industry support, see Antidumping Duty
Initiation Checklist: Certain Glass Containers from
the People’s Republic of China (AD Initiation
Checklist), at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing
Duty Petitions Covering Certain Glass Containers
from the People’s Republic of China (Attachment
II). This checklist is dated concurrently with this
notice and on file electronically via ACCESS.
Documents filed via ACCESS are also available in
the Central Records Unit, Room B8024 of the main
Commerce building.
16 See Volume I of the Petition, at 2–3 and
Exhibits I–3 and I–4; see also General Issues
Supplement, at 6 and Exhibit I–Supp–7.
13 See
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The petitioner compared the total
production of the supporters of the
Petition to the estimated total
production of the domestic like product
for the entire domestic industry.17 We
relied on data provided by the petitioner
for purposes of measuring industry
support.18
Our review of the data provided in the
Petition, the General Issues Supplement,
and other information readily available
to Commerce indicates that the
petitioner has established industry
support for the Petition.19 First, the
Petition established support from
domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).20 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product.21 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petition
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petition.22 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 702(b)(1) of the
Act.
Injury Test
Because China is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to
this investigation. Accordingly, the ITC
17 See Volume I of the Petition, at 2–3 and
Exhibits I–2 through I–4; see also General Issues
Supplement, at 4–6 and Exhibits I–Supp–5 through
I–Supp–7.
18 See Volume I of the Petition, at 2–3 and
Exhibits I–2 through I–4; see also General Issues
Supplement, at 4–6 and Exhibits I–Supp–5 through
I–Supp–7. For further discussion, see China AD
Initiation Checklist, at Attachment II.
19 See Countervailing Duty Initiation Checklist:
Certain Glass Containers from the People’s Republic
of China Initiation Checklist (CVD Initiation
Checklist) at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing
Duty Petitions Covering Certain Glass Containers
from the People’s Republic of China (Attachment
II).
20 Id.; see also section 702(c)(4)(D) of the Act.
21 See CVD Initiation Checklist at Attachment II.
22 Id.
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Federal Register / Vol. 84, No. 203 / Monday, October 21, 2019 / Notices
must determine whether imports of the
subject merchandise from China
materially injure, or threaten material
injury to, a U.S. industry.
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that imports of
the subject merchandise are benefitting
from countervailable subsidies and that
such imports are causing, or threaten to
cause, material injury to the U.S.
industry producing the domestic like
product. In addition, the petitioner
alleges that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.23
The petitioner contends that the
industry’s injured condition is
illustrated by a significant and
increasing volume of subject imports;
reduced market share; underselling and
price depression or suppression; lost
sales and revenues; declining financial
performance; a decline in the domestic
industry’s production, capacity
utilization, and U.S. shipments;
shuttered manufacturing facilities; and
an adverse impact on employment
variables.24 We have assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, causation, as well as
negligibility, and we have determined
that these allegations are properly
supported by adequate evidence, and
meet the statutory requirements for
initiation.25
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Initiation of CVD Investigation
Based upon the examination of the
Petition on glass containers from China,
we find that the Petition meets the
requirements of section 702 of the Act.
Therefore, we are initiating a CVD
investigation to determine whether
imports of glass containers from China
benefit from countervailable subsidies
conferred by the Government of China.
Based on our review of the Petition, we
find that there is sufficient information
to initiate a CVD investigation on each
of the alleged programs. For a full
discussion of the basis for our decision
to initiate on each program, see CVD
Initiation Checklist. A public version of
the initiation checklist for this
investigation is available on ACCESS. In
accordance with section 703(b)(1) of the
Act and 19 CFR 351.205(b)(1), unless
23 See Volume I of the Petition at 17–19 and
Exhibits I–13 and I–36.
24 Id. at 13, 17–34 and Exhibits I–13 and I–17
through I–33.
25 See CVD Initiation Checklist at Attachment III,
Analysis of Allegations and Evidence of Material
Injury and Causation for the Antidumping and
Countervailing Duty Petitions Covering Certain
Glass Containers from the People’s Republic of
China.
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16:52 Oct 18, 2019
Jkt 250001
postponed, we will make our
preliminary determination no later than
65 days after the date of this initiation.
Petition, as provided under 19 CFR
351.203(c)(2).
Respondent Selection
The petitioner named 75 companies
in China as producers/exporters of glass
containers.26 Commerce intends to
follow its standard practice in CVD
investigations and calculate companyspecific subsidy rates in this
investigation. In the event Commerce
determines that the number of
companies is large and it cannot
individually examine each company
based upon Commerce’s resources,
where appropriate, Commerce intends
to select mandatory respondents based
on U.S. Customs and Border Protection
(CBP) data for U.S. imports of glass
containers from China during the POI
under the appropriate Harmonized
Tariff Schedule of the United States
numbers listed in the ‘‘Scope of the
Investigation,’’ in the Appendix.
On October 8, 2019, Commerce
released CBP data on imports of glass
containers from China under
administrative protective order (APO) to
all parties with access to information
protected by APO and indicated that
interested parties wishing to comment
on the CBP data must do so within three
business days of the publication date of
the notice of initiation of this
investigation.27 We further stated that
we will not accept rebuttal comments.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305(b).
Instructions for filing such applications
may be found on the Commerce website
at https://enforcement.trade.gov/apo.
Comments must be filed
electronically using ACCESS. An
electronically filed document must be
received successfully, in its entirety, by
ACCESS no later than 5:00 p.m. ET on
the date noted above. We intend to
finalize our decisions regarding
respondent selection within 20 days of
publication of this notice.
Commerce will notify the ITC of its
initiation, as required by section 702(d)
of the Act.
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to the
government of China via ACCESS.
Furthermore, to the extent practicable,
Commerce will attempt to provide a
copy of the public version of the
Petition to each exporter named in the
26 See
Petition Volume I at Exhibit I–12.
Memorandum, ‘‘Certain Glass Containers
from the People’s Republic of China Countervailing
Duty Petition: Release of Customs Data from U.S.
Customs and Border Protection,’’ dated October 8,
2019.
27 See
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ITC Notification
Preliminary Determinations by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petition was filed, whether there is
a reasonable indication that imports of
glass containers from China are
materially injuring or threatening
material injury to a U.S. industry.28 A
negative ITC determination will result
in the investigation being terminated.29
Otherwise, this investigation will
proceed according to statutory and
regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
described in (i)–(iv). Any party, when
submitting factual information, to
specify under which subsection of 19
CFR 351.102(b)(21) the information is
being submitted 30 and, if the
information is submitted to rebut,
clarify, or correct factual information
already on the record, to provide an
explanation identifying the information
already on the record that the factual
information seeks to rebut, clarify, or
correct.31 Time limits for the
submission of factual information are
addressed in 19 CFR 351.301, which
provides specific time limits based on
the type of factual information being
submitted. Please review the regulations
prior to submitting factual information
in this investigation.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, or as otherwise specified by the
Secretary. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301.
For submissions that are due from
28 See
section 733(a) of the Act.
29 Id.
30 See
31 See
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19 CFR 351.301(b).
19 CFR 351.301(b)(2).
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multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
on the due date. Under certain
circumstances, Commerce may elect to
specify a different time limit by which
extension requests will be considered
untimely, if the submissions are due
from multiple parties simultaneously. In
such a case, Commerce will inform
parties in a letter or memorandum of the
deadline (including a specified time) by
which extension requests must be filed
to be considered timely. An extension
request must be made in a separate,
standalone submission; under limited
circumstances Commerce will grant
untimely-filed requests for the extension
of time limits. Parties should review
Extension of Time Limits; Final Rule, 78
FR 57790 (September 20, 2013),
available at https://www.gpo.gov/fdsys/
pkg/FR-2013-09-20/html/201322853.htm, prior to submitting
extension requests or factual
information in this investigation.
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Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.32
Parties must use the certification
formats provided in 19 CFR
351.303(g).33 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305.
Instructions for filing such applications
may be found on the Commerce website
at https://enforcement.trade.gov/apo.
On January 22, 2008, Commerce
published Antidumping and
Countervailing Duty Proceedings:
Documents Submission Procedures;
APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate
in this investigation should ensure that
they meet the requirements of these
procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR
351.103(d)).
This notice is issued and published
pursuant to sections 702 and 777(i) of
the Act and 19 CFR 351.203(c).
32 See
section 782(b) of the Act.
33 See Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
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Dated: October 15, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
Appendix—Scope of the Investigation
The merchandise covered by this
investigation are certain glass containers with
a nominal capacity of 0.059 liters (2.0 fluid
ounces) up to and including 4.0 liters
(135.256 fluid ounces) and an opening or
mouth with a nominal outer diameter of 14
millimeters up to and including 120
millimeters. The scope includes glass jars,
bottles, flasks and similar containers; with or
without their closures; whether clear or
colored; and with or without, design or
functional enhancements (including, but not
limited to, handles, embossing, labeling, or
etching).
Excluded from the scope of the
investigation are: (1) Glass containers made
of borosilicate glass, meeting United States
Pharmacopeia requirements for Type 1
pharmaceutical containers; (2) glass
containers without ‘mold seams’, ‘joint
marks’, or ‘parting lines’; and (3) glass
containers without a ‘finish’ (i.e., the section
of a container at the opening including the
lip and ring or collar, threaded or otherwise
compatible with a type of closure to seal the
container’s contents, including but not
limited to a lid, cap, or cork).
Glass containers subject to this
investigation are specified within the
Harmonized Tariff Schedule of the United
States (HTSUS) under subheadings
7010.90.5009, 7010.90.5019, 7010.90.5029,
7010.90.5039, 7010.90.5049, 7010.90.5055,
7010.90.5005, 7010.90.5015, 7010.90.5025,
7010.90.5035, and 7010.90.5045. The HTSUS
subheadings are provided for convenience
and customs purposes only. The written
description of the scope of the investigations
is dispositive.
[FR Doc. 2019–22868 Filed 10–18–19; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–559–808]
Acetone From Singapore: Final
Determination of Sales at Less Than
Fair Value
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that acetone
from Singapore is being, or is likely to
be, sold in the United States at less than
fair value (LTFV). The period of
investigation (POI) is January 1, 2018
through December 31, 2018.
DATES: Applicable October 21, 2019.
FOR FURTHER INFORMATION CONTACT:
Joshua DeMoss, AD/CVD Operations,
Office VI, Enforcement and Compliance,
AGENCY:
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56171
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–3362.
SUPPLEMENTARY INFORMATION:
Background
On August 5, 2019, Commerce
published the Preliminary
Determination in the Federal Register.1
The petitioner in this investigation is
the Coalition for Acetone Fair Trade.
The mandatory respondent in this
investigation is Mitsui Phenols
Singapore Pte. Ltd. (Mitsui). We
provided interested parties an
opportunity to comment on the
Preliminary Determination. We received
no comments. Commerce conducted
this investigation in accordance with
section 731 of the Tariff Act of 1930, as
amended (the Act).
Scope of the Investigation
The merchandise covered by this
investigation is all grades of liquid or
aqueous acetone. Acetone is also known
under the International Union of Pure
and Applied Chemistry (IUPAC) name
propan-2-one. In addition to the IUPAC
name, acetone is also referred to as +ketopropane (or beta-ketopropane),
ketone propane, methyl ketone,
dimethyl ketone, DMK, dimethyl
carbonyl, propanone, 2-propanone,
dimethyl formaldehyde, pyroacetic acid,
pyroacetic ether, and pyroacetic spirit.
Acetone is an isomer of the chemical
formula C3H6O, with a specific
molecular formula of CH3COCH3 or
(CH3)2CO.
The scope covers both pure acetone
(with or without impurities) and
acetone that is combined or mixed with
other products, including, but not
limited to, isopropyl alcohol, benzene,
diethyl ether, methanol, chloroform,
and ethanol. Acetone that has been
combined with other products is
included within the scope, regardless of
whether the combining occurs in third
countries.
The scope also includes acetone that
is commingled with acetone from
sources not subject to this investigation.
For combined and commingled
products, only the acetone component is
covered by the scope of this
investigation. However, when acetone is
combined with acetone components
1 See Acetone From Singapore: Preliminary
Affirmative Determination of Sales at Less Than
Fair Value, and Preliminary Determination of No
Shipments, 84 FR 38005 (August 5, 2019)
(Preliminary Determination), and accompanying
memorandum, ‘‘Decision Memorandum for the
Preliminary Determination in the Less-Than-FairValue Investigation of Acetone from Singapore’’
(PDM).
E:\FR\FM\21OCN1.SGM
21OCN1
Agencies
[Federal Register Volume 84, Number 203 (Monday, October 21, 2019)]
[Notices]
[Pages 56168-56171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22868]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-115]
Certain Glass Containers From the People's Republic of China:
Initiation of Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable October 15, 2019.
FOR FURTHER INFORMATION CONTACT: Maliha Khan or Eli Lovely, 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) 482-0895 or (202) 482-1593,
respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On September 25, 2019, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition (Petition) concerning
imports of certain glass containers (glass containers) from the
People's Republic of China (China) filed in proper form on behalf of
the American Glass Packaging Coalition (the petitioner).\1\ The CVD
Petition was accompanied by an antidumping duty (AD) Petition
concerning imports of glass containers from China.
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\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Certain Glass Containers
from the People's Republic of China,'' dated September 25, 2019 (the
Petition).
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On September 30, 2019, Commerce requested supplemental information
pertaining to certain aspects of the Petition.\2\ The petitioner filed
responses to this request on October 4, 2019.\3\
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\2\ See Commerce's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Glass
Containers from the People's Republic of China: Supplemental
Questions,'' dated September 30, 2019); see also Commerce's Letter,
``Petition for the Imposition of Countervailing Duties on Imports of
Certain Glass Containers from the People's Republic of China:
Supplemental Questions,'' dated September 30, 2019.
\3\ See Petitioner's Letters, ``Certain Glass Containers from
the People's Republic of China: Responses to First Supplemental
Questions on General Issues Volume I of the Petition,'' dated
October 4, 2019; and ``Certain Glass Containers from the People's
Republic of China: Responses to First Supplemental Questions on
China CVD Volume III of the Petition,'' dated October 4, 2019.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of China
(GOC) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of glass containers in
China, and that such imports are materially injuring, or threatening
material injury to, the domestic industry producing glass containers in
the United States. Consistent with section 702(b)(1) of the Act and 19
CFR 351.202(b), for those alleged programs on which we are initiating a
CVD investigation, the Petition is accompanied by information
reasonably available to the petitioner supporting its allegations.
Commerce finds that the petitioner filed this Petition on behalf of
the domestic industry because the petitioner is an interested party as
defined in sections 771(9)(C) and (E) of the Act. Commerce also finds
that the petitioner demonstrated sufficient industry support with
respect to the initiation of the requested CVD investigation.\4\
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\4\ See ``Information Relating to the Degree of Industry Support
for the Petition'' section, infra.
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Period of Investigation
Because the Petition was filed on September 25, 2019, the period of
investigation (POI) is January 1, 2018 through December 31, 2018.\5\
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\5\ See 19 CFR 351.204(b)(1).
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Scope of the Investigation
The merchandise covered by this investigation is glass containers
from China. For a full description of the scope of this investigation,
see the Appendix to this notice.
Comments on Scope of the Investigation
During our review of the Petition, we contacted the petitioner
regarding the proposed scope to ensure that the scope language in the
Petition is an accurate reflection of the products for which the
domestic industry is seeking relief.\6\ As a result, the scope of the
Petition was modified to clarify the description of the merchandise
covered by the Petition. The description of the merchandise covered by
this investigation, as described in the Appendix to this notice,
reflects these clarifications.
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\6\ See AD Supplement Vol. I, at 1-4 and Exhibits I-Supp-2
through I-Supp-4; see also Memorandum, ``Phone Call with Counsel to
the Petitioner,'' dated October 8, 2019.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (scope).\7\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information,\8\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit scope comments by 5:00 p.m. Eastern Time
(ET) on November 4, 2019, which is 20 calendar days from the signature
date of this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on November 14, 2019, which
is 10 calendar days from the initial comment deadline.\9\
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\7\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
\8\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\9\ See 19 CFR 351.303(b).
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Commerce requests that any factual information the parties consider
relevant to the scope of the investigation be submitted during this
time period. However, if a party subsequently finds that additional
factual information pertaining to the scope of the investigation may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All such comments must also be filed
on the record of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\10\
[[Page 56169]]
An electronically filed document must be received successfully in its
entirety by the time and date it is due. Documents exempted from the
electronic submission requirements must be filed manually (i.e., in
paper form) with Enforcement and Compliance's APO/Dockets Unit, Room
18022, U.S. Department of Commerce, 1401 Constitution Avenue NW,
Washington, DC 20230, and stamped with the date and time of receipt by
the applicable deadlines.
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\10\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at https://access.trade.gov/help.aspx and a handbook
can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the GOC of the receipt of the Petition and provided it the
opportunity for consultations with respect to the CVD Petition.\11\ The
GOC did not request consultations.
---------------------------------------------------------------------------
\11\ See Commerce's Letter, ``Countervailing Duty Petition on
Certain Glass Containers from China,'' dated October 3, 2019.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers, as a whole, of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\12\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\13\
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\12\ See section 771(10) of the Act.
\13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the Petition.\14\ Based on our analysis of the information submitted
on the record, we have determined that glass containers, as defined in
the scope, constitute a single domestic like product, and we have
analyzed industry support in terms of that domestic like product.\15\
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\14\ See Volume I of the Petition, at 15-17 and Exhibit I-15;
see also General Issues Supplement, at 7.
\15\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Antidumping Duty Initiation Checklist: Certain Glass Containers from
the People's Republic of China (AD Initiation Checklist), at
Attachment II, Analysis of Industry Support for the Antidumping and
Countervailing Duty Petitions Covering Certain Glass Containers from
the People's Republic of China (Attachment II). This checklist is
dated concurrently with this notice and on file electronically via
ACCESS. Documents filed via ACCESS are also available in the Central
Records Unit, Room B8024 of the main Commerce building.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the Appendix to
this notice. To establish industry support, the petitioner provided its
own 2018 production of the domestic like product, as well as the 2018
production of the company that supports the Petition.\16\ The
petitioner compared the total production of the supporters of the
Petition to the estimated total production of the domestic like product
for the entire domestic industry.\17\ We relied on data provided by the
petitioner for purposes of measuring industry support.\18\
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\16\ See Volume I of the Petition, at 2-3 and Exhibits I-3 and
I-4; see also General Issues Supplement, at 6 and Exhibit I-Supp-7.
\17\ See Volume I of the Petition, at 2-3 and Exhibits I-2
through I-4; see also General Issues Supplement, at 4-6 and Exhibits
I-Supp-5 through I-Supp-7.
\18\ See Volume I of the Petition, at 2-3 and Exhibits I-2
through I-4; see also General Issues Supplement, at 4-6 and Exhibits
I-Supp-5 through I-Supp-7. For further discussion, see China AD
Initiation Checklist, at Attachment II.
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Our review of the data provided in the Petition, the General Issues
Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\19\ First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\20\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
702(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\21\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 702(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition.\22\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.
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\19\ See Countervailing Duty Initiation Checklist: Certain Glass
Containers from the People's Republic of China Initiation Checklist
(CVD Initiation Checklist) at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing Duty Petitions
Covering Certain Glass Containers from the People's Republic of
China (Attachment II).
\20\ Id.; see also section 702(c)(4)(D) of the Act.
\21\ See CVD Initiation Checklist at Attachment II.
\22\ Id.
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Injury Test
Because China is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC
[[Page 56170]]
must determine whether imports of the subject merchandise from China
materially injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioner
alleges that subject imports exceed the negligibility threshold
provided for under section 771(24)(A) of the Act.\23\
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\23\ See Volume I of the Petition at 17-19 and Exhibits I-13 and
I-36.
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The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price depression or suppression;
lost sales and revenues; declining financial performance; a decline in
the domestic industry's production, capacity utilization, and U.S.
shipments; shuttered manufacturing facilities; and an adverse impact on
employment variables.\24\ We have assessed the allegations and
supporting evidence regarding material injury, threat of material
injury, causation, as well as negligibility, and we have determined
that these allegations are properly supported by adequate evidence, and
meet the statutory requirements for initiation.\25\
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\24\ Id. at 13, 17-34 and Exhibits I-13 and I-17 through I-33.
\25\ See CVD Initiation Checklist at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Certain Glass
Containers from the People's Republic of China.
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Initiation of CVD Investigation
Based upon the examination of the Petition on glass containers from
China, we find that the Petition meets the requirements of section 702
of the Act. Therefore, we are initiating a CVD investigation to
determine whether imports of glass containers from China benefit from
countervailable subsidies conferred by the Government of China. Based
on our review of the Petition, we find that there is sufficient
information to initiate a CVD investigation on each of the alleged
programs. For a full discussion of the basis for our decision to
initiate on each program, see CVD Initiation Checklist. A public
version of the initiation checklist for this investigation is available
on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determination no later than 65 days after the date of this initiation.
Respondent Selection
The petitioner named 75 companies in China as producers/exporters
of glass containers.\26\ Commerce intends to follow its standard
practice in CVD investigations and calculate company-specific subsidy
rates in this investigation. In the event Commerce determines that the
number of companies is large and it cannot individually examine each
company based upon Commerce's resources, where appropriate, Commerce
intends to select mandatory respondents based on U.S. Customs and
Border Protection (CBP) data for U.S. imports of glass containers from
China during the POI under the appropriate Harmonized Tariff Schedule
of the United States numbers listed in the ``Scope of the
Investigation,'' in the Appendix.
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\26\ See Petition Volume I at Exhibit I-12.
---------------------------------------------------------------------------
On October 8, 2019, Commerce released CBP data on imports of glass
containers from China under administrative protective order (APO) to
all parties with access to information protected by APO and indicated
that interested parties wishing to comment on the CBP data must do so
within three business days of the publication date of the notice of
initiation of this investigation.\27\ We further stated that we will
not accept rebuttal comments.
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\27\ See Memorandum, ``Certain Glass Containers from the
People's Republic of China Countervailing Duty Petition: Release of
Customs Data from U.S. Customs and Border Protection,'' dated
October 8, 2019.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on the Commerce website at https://enforcement.trade.gov/apo.
Comments must be filed electronically using ACCESS. An
electronically filed document must be received successfully, in its
entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above.
We intend to finalize our decisions regarding respondent selection
within 20 days of publication of this notice.
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the government of China via ACCESS.
Furthermore, to the extent practicable, Commerce will attempt to
provide a copy of the public version of the Petition to each exporter
named in the Petition, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of glass containers from China are materially
injuring or threatening material injury to a U.S. industry.\28\ A
negative ITC determination will result in the investigation being
terminated.\29\ Otherwise, this investigation will proceed according to
statutory and regulatory time limits.
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\28\ See section 733(a) of the Act.
\29\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted \30\ and, if the information is
submitted to rebut, clarify, or correct factual information already on
the record, to provide an explanation identifying the information
already on the record that the factual information seeks to rebut,
clarify, or correct.\31\ Time limits for the submission of factual
information are addressed in 19 CFR 351.301, which provides specific
time limits based on the type of factual information being submitted.
Please review the regulations prior to submitting factual information
in this investigation.
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\30\ See 19 CFR 351.301(b).
\31\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from
[[Page 56171]]
multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, Commerce may elect to specify a different
time limit by which extension requests will be considered untimely, if
the submissions are due from multiple parties simultaneously. In such a
case, Commerce will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, standalone submission; under limited circumstances Commerce
will grant untimely-filed requests for the extension of time limits.
Parties should review Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting extension requests
or factual information in this investigation.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\32\
Parties must use the certification formats provided in 19 CFR
351.303(g).\33\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\32\ See section 782(b) of the Act.
\33\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Commerce website at https://enforcement.trade.gov/apo.
On January 22, 2008, Commerce published Antidumping and
Countervailing Duty Proceedings: Documents Submission Procedures; APO
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to
participate in this investigation should ensure that they meet the
requirements of these procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 702 and
777(i) of the Act and 19 CFR 351.203(c).
Dated: October 15, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix--Scope of the Investigation
The merchandise covered by this investigation are certain glass
containers with a nominal capacity of 0.059 liters (2.0 fluid
ounces) up to and including 4.0 liters (135.256 fluid ounces) and an
opening or mouth with a nominal outer diameter of 14 millimeters up
to and including 120 millimeters. The scope includes glass jars,
bottles, flasks and similar containers; with or without their
closures; whether clear or colored; and with or without, design or
functional enhancements (including, but not limited to, handles,
embossing, labeling, or etching).
Excluded from the scope of the investigation are: (1) Glass
containers made of borosilicate glass, meeting United States
Pharmacopeia requirements for Type 1 pharmaceutical containers; (2)
glass containers without `mold seams', `joint marks', or `parting
lines'; and (3) glass containers without a `finish' (i.e., the
section of a container at the opening including the lip and ring or
collar, threaded or otherwise compatible with a type of closure to
seal the container's contents, including but not limited to a lid,
cap, or cork).
Glass containers subject to this investigation are specified
within the Harmonized Tariff Schedule of the United States (HTSUS)
under subheadings 7010.90.5009, 7010.90.5019, 7010.90.5029,
7010.90.5039, 7010.90.5049, 7010.90.5055, 7010.90.5005,
7010.90.5015, 7010.90.5025, 7010.90.5035, and 7010.90.5045. The
HTSUS subheadings are provided for convenience and customs purposes
only. The written description of the scope of the investigations is
dispositive.
[FR Doc. 2019-22868 Filed 10-18-19; 8:45 am]
BILLING CODE 3510-DS-P