Twist Ties From the People's Republic of China: Initiation of Countervailing Duty Investigation, 45188-45191 [2020-16232]

Download as PDF 45188 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices kilogram. This cash deposit requirement shall remain in effect until further notice. DEPARTMENT OF COMMERCE Administrative Protective Order [C–570–132] This notice also serves as a final reminder to parties subject to administrative protective order (APO) of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3), which continues to govern business proprietary information in this segment of the proceeding. Timely written 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 terms of an APO is a violation which is subject to sanction. Twist Ties From the People’s Republic of China: Initiation of Countervailing Duty Investigation Notification to Importers This notice also serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during the POR. Failure to comply with this requirement could result in Commerce’s presumption that reimbursement of antidumping duties has occurred and the subsequent assessment of double antidumping duties. Notification to Interested Parties We are issuing and publishing these final results in accordance with sections 751(a)(1) and 777(i)(1) of the Tariff Act of 1930, as amended, and 19 CFR 351.213(h)(1) and 19 CFR 351.221(b)(5). jbell on DSKJLSW7X2PROD with NOTICES Appendix List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Order IV. Discussion of the Issues Comment 1: Whether a Bona Fides Analysis is Applicable in Administrative Reviews Comment 2: Appropriateness of Using U.S. Customs and Border Protection Data Comment 3: Whether Sale Price and Quantity Weigh in Favor of Finding Runchen’s Sale Not Bona Fide Comment 4: Whether the Goods Were Resold at a Profit Comment 5: Other Relevant Factors V. Recommendation BILLING CODE 3510–DS–P VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable July 16, 2020. FOR FURTHER INFORMATION CONTACT: Darla Brown or Ajay Menon, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1791 or (202) 482–1993, respectively. SUPPLEMENTARY INFORMATION: AGENCY: The Petition On June 26, 2020, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition concerning imports of twist ties from the People’s Republic of China (China) filed in proper form on behalf of Bedford Industries, Inc. (the petitioner).1 The Petition was accompanied by an antidumping duty (AD) petition concerning imports of twist ties from China. Between June 30 and July 13, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petition,2 to which the petitioner filed responses between July 2 and 13, 2020.3 1 See Dated: July 21, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. [FR Doc. 2020–16192 Filed 7–24–20; 8:45 am] International Trade Administration Petitioner’s Letter, ‘‘Petition for the Imposition of Antidumping and Countervailing Duties on Twist Ties from China,’’ dated June 26, 2020 (the Petition). 2 See Commerce’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Twist Ties from the People’s Republic of China: Supplemental Questions,’’ dated June 30, 2020; see also Commerce’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Twist Ties from the People’s Republic of China: Supplemental Questions,’’ dated July 2, 2020; Commerce’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Twist Ties from the People’s Republic of China: Supplemental Questions,’’ dated July 7, 2020; Memorandum, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Twist Ties from the People’s Republic of China: Phone Call with Counsel to the Petitioner,’’ dated July 7, 2020 (Phone Call Memorandum); and Memorandum, ‘‘Twist Ties from the People’s Republic of China Countervailing Duty Petition: Placing Document on the Record,’’ dated July 13, 2020. 3 See Petitioner’s Letter, ‘‘Petition for the Imposition of Antidumping and Countervailing Duties on Twist Ties from China: Response of Bedford Industries, Inc. to Supplemental Questionnaire,’’ dated July 2, 2020 (First CVD Petition Supplement); see also Petitioner’s Letter, ‘‘Petition for the Imposition of Antidumping and PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 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 twist ties in China and that such imports are materially injuring, or threatening material injury to, the domestic industry producing twist ties 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 supported by information reasonably available to the petitioner supporting its allegations. Commerce finds that the petitioner filed the Petition on behalf of the domestic industry because the petitioner is an interested party as defined in section 771(9)(C) 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 June 26, 2020, the period of investigation (POI) is January 1, 2019 through December 31, 2019.5 Scope of the Investigation The merchandise covered by this investigation is twist ties from China. For a full description of the scope of this investigation, see the appendix to this notice. Comments on Scope of the Investigation On June 30 and July 7, 2020, Commerce requested further information from 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 On July 6 and 9, 2020, the petitioner revised the scope.7 The description of the merchandise covered by this investigation, as described in the Countervailing Duties on Twist Ties from China: Response of Bedford Industries, Inc. to Supplemental Questionnaire,’’ dated July 7, 2020 (Second CVD Petition Supplement); Petitioner’s Letter, ‘‘Twist Ties from the People’s Republic of China,’’ dated July 9, 2020 (Second General Issues Supplement); and Petitioner’s Letter, ‘‘Twist Ties from the People’s Republic of China,’’ dated July 13, 2020 (General Issues Supplement). 4 See ‘‘Determination of Industry Support for the Petition’’ section, infra. 5 See 19 CFR 351.204(b)(2). 6 See General Issues Supplemental at 3–4; see also Phone Call Memorandum. 7 See Second General Issues Supplement at 3–4; see also Second General Issues Supplement at 3– 4. E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices 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 (i.e., scope).8 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,9 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 August 5, 2020, which is 20 calendar days from the signature date of this notice.10 Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on August 17, 2020, which is the next business day after 10 calendar days from the initial comment deadline.11 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 investigation. jbell on DSKJLSW7X2PROD with NOTICES Filing Requirements All submissions to Commerce must be filed electronically using Enforcement and Compliance’s (E&C’s) Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS), unless an exception applies.12 An electronically filed 8 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 9 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 10 See 19 CFR 351.303(b). 11 Commerce’s practice dictates that where a deadline falls on a weekend or Federal holiday, the appropriate deadline is the next business day (in this instance, August 17, 2020). See Notice of Clarification: Application of ‘‘Next Business Day’’ Rule for Administrative Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005). 12 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:// VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 document must be received successfully in its entirety by the time and date it is due. 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.13 The GOC requested consultations, which were held on July 14, 2020.14 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,15 they do so for different access.trade.gov/help/Handbook_on_Electronic_ Filing_Procedures.pdf. 13 See Commerce’s Letter, ‘‘Twist Ties from the People’s Republic of China: Invitation for Consultation to Discuss the Countervailing Duty Petition, ’’ dated June 26, 2020. 14 See Memorandum, ‘‘Twist Ties from the People’s Republic of China Countervailing Duty Petition: Consultations with the Government of the People’s Republic of China,’’ dated July 15, 2020. 15 See section 771(10) of the Act. PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 45189 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.16 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 investigation.17 Based on our analysis of the information submitted on the record, we have determined that twist ties, as defined in the scope, constitute a single domestic like product, and we have analyzed industry support in terms of that domestic like product.18 In determining whether the petitioner has standing under section 702(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 production of the domestic like product in 2019 and compared this to the estimated total production of the domestic like product for the entire domestic industry.19 We have relied on the data provided by the petitioner for 16 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), cert. denied 492 U.S. 919 (1989)). 17 See Volume I of the Petition at 17–20 and Exhibit GEN–1; see also General Issues Supplement at 5–6; and Second General Issues Supplement at 4–5 and Supplemental Declaration from Jay Milbrandt (Supplemental Declaration). 18 For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see Countervailing Duty Investigation Initiation Checklist: Twist Ties from the People’s Republic of China (China CVD Initiation Checklist) at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Twist Ties from the People’s Republic of China (Attachment II). This checklist is dated concurrently with this notice and on file electronically via ACCESS. 19 See Second General Issues Supplement at 2–3 and Supplemental Declaration. E:\FR\FM\27JYN1.SGM 27JYN1 45190 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices purposes of measuring industry support.20 Our review of the data provided in the Petition, the General Issues Supplement, the Second General Issues Supplement, and other information readily available to Commerce indicates that the petitioner has established industry support for the Petition.21 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).22 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.23 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.24 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.25 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 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. jbell on DSKJLSW7X2PROD with NOTICES 20 See General Issues Supplement at 7; see also Second General Issues Supplement at 2–3. For further discussion, see Attachment II of the China CVD Initiation Checklist. 21 See Attachment II of the China CVD Initiation Checklist. 22 Id.; see also section 702(c)(4)(D) of the Act. 23 See Attachment II of the China CVD Initiation Checklist. 24 Id. 25 Id. VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 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.26 The petitioner contends that the industry’s injured condition is illustrated by a significant volume and market share of subject imports; underselling and price depression and suppression; lost sales and revenues; declines in shipments and net sales; decline in financial performance; and low level of capacity utilization.27 We 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.28 Initiation of CVD Investigation Based upon our examination of the Petition and supplemental responses, 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 twist ties from China benefit from countervailable subsidies conferred by the GOC. Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on 15 of the 20 alleged programs. For a full discussion of the basis for our decision to initiate on each program, see China 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 six companies in China as producers/exporters of twist ties.29 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 26 See Volume I of the Petition at 22 and Exhibits GEN–1 and GEN–11 through GEN–13. 27 See Volume I of the Petition at 8, 15–16, 21– 29 and Exhibits GEN–1, GEN–8, and GEN–11; see also General Issues Supplement at 2 and 9–10; and Second General Issues Supplement at 3. 28 See China CVD Initiation Checklist at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Twist Ties from the People’s Republic of China (Attachment III). 29 See Volume I of the Petition at Exhibit GEN– 6. PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 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 quantity and value (Q&V) questionnaires issued to the potential respondents. Commerce normally selects mandatory respondents in CVD investigations using U.S. Customs and Border Protection (CBP) entry data for U.S. imports under the appropriate Harmonized Tariff Schedule of the United States (HTSUS) numbers listed in the scope of the investigation. However, for this investigation, the main HTSUS numbers under which the subject merchandise would enter (i.e., 5609.00.3000, and 8309.90.0000) are basket categories under which nonsubject merchandise may enter. Therefore, we cannot rely on CBP entry data in selecting respondents. We intend instead to issue Q&V questionnaires to each potential respondent for which the petitioner has provided a complete address. Producers/exporters of twist ties from China that do not receive Q&V questionnaires by mail may still submit a response to the Q&V questionnaire and can obtain the Q&V questionnaire from E&C’s website at http://trade.gov/ enforcement/news.asp. Responses to the Q&V questionnaire must be submitted by the relevant Chinese producers/ exporters no later than 5:00 p.m. ET on August 3, 2020. All Q&V responses must be filed electronically via ACCESS. An electronically filed document must be received successfully, in its entirety, by ACCESS no later than 5:00 p.m. ET on the deadline noted above. Commerce intends to finalize its decisions regarding respondent selection within 20 days of publication of this notice. Distribution of Copies of the Petition In accordance with section 702(b)(4)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the GOC 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 Determination 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 E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices twist ties from China are materially injuring, or threatening material injury to, a U.S. industry.30 A negative ITC determination will result in the investigation being terminated.31 Otherwise, this investigation will proceed according to statutory and regulatory time limits. jbell on DSKJLSW7X2PROD with NOTICES 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). Section 351.301(b) of Commerce’s regulations requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 32 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.33 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. Interested parties should 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 Commerce. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301.34 For submissions that are due from 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 for submissions which are due from multiple parties simultaneously. In such a case, Commerce will inform 30 See section 703(a)(1) of the Act. 31 Id. 32 See 19 CFR 351.301(b). 19 CFR 351.301(b)(2). 34 See 19 CFR 351.302. 33 See VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 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, stand-alone submission; under limited circumstances we will grant untimelyfiled requests for the extension of time limits. Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-201309-20/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.35 Parties must use the certification formats provided in 19 CFR 351.303(g).36 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. 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)). Note that Commerce has temporarily modified certain of its requirements for serving documents containing business proprietary information, until further notice.37 This notice is issued and published pursuant to sections 702(c)(2) and 777(i) of the Act, and 19 CFR 351.203(c). 45191 thin, bendable ties for closing containers, such as bags, bundle items, or identifying objects. A twist tie in most circumstances is comprised of one or more metal wires encased in a covering material, which allows the tie to retain its shape and bind against itself. However, it is possible to make a twist tie with plastic and no metal wires. The metal wire that is generally used in a twist tie is stainless or galvanized steel and typically measures between the gauges of 19 (.0410’’ diameter) and 31 (.0132’’) (American Standard Wire Gauge). A twist tie usually has a width between .075’’ and 1’’ in the crossmachine direction (width of the tie— measurement perpendicular with the wire); a thickness between .015’’ and .045’’ over the wire; and a thickness between .002’’ and .020’’ in areas without wire. The scope includes an all-plastic twist tie containing a plastic core as well as a plastic covering (the wing) over the core, just like paper and/or plastic in a metal tie. An all-plastic twist tie (without metal wire) would be of the same measurements as a twist tie containing one or more metal wires. Twist ties are commonly available individually in pre-cut lengths (‘‘singles’’), wound in large spools to be cut later by machine or hand, or in perforated sheets of spooled or single twist ties that are later slit by machine or by hand (‘‘gangs’’). The covering material of a twist tie may be paper (metallic or plain), or plastic, and can be dyed in a variety of colors with or without printing. A twist tie may have the same covering material on both sides or one side of paper and one side of plastic. When comprised of two sides of paper, the paper material is bound together with an adhesive or plastic. A twist tie may also have a tag or label attached to it or a pre-applied adhesive attached to it. Twist ties are imported into the United States under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 8309.90.0000 and 5609.00.3000. Subject merchandise may also enter under HTSUS subheadings 3920.51.5000, 3923.90.0080, 3926.90.9990, 4811.59.6000, 4821.10.2000, 4821.10.4000, 4821.90.2000, 4821.90.4000, and 4823.90.8600. These HTSUS subheadings are provided for reference only. The written description of the scope of the investigation is dispositive. [FR Doc. 2020–16232 Filed 7–24–20; 8:45 am] Dated: July 16, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. BILLING CODE 3510–DS–P Appendix—Scope of the Investigation National Oceanic and Atmospheric Administration The merchandise covered by this investigation consists of twist ties, which are section 782(b) of the Act. 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 http://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 37 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020). PO 00000 35 See 36 See Frm 00033 Fmt 4703 Sfmt 4703 DEPARTMENT OF COMMERCE Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Reporting Requirements for the Ocean Salmon Fishery Off the Coasts of Washington, Oregon, and California The Department of Commerce will submit the following information E:\FR\FM\27JYN1.SGM 27JYN1

Agencies

[Federal Register Volume 85, Number 144 (Monday, July 27, 2020)]
[Notices]
[Pages 45188-45191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16232]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-132]


Twist Ties From the People's Republic of China: Initiation of 
Countervailing Duty Investigation

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.


DATES: Applicable July 16, 2020.

FOR FURTHER INFORMATION CONTACT: Darla Brown or Ajay Menon, AD/CVD 
Operations, Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1791 or (202) 482-1993, 
respectively.

SUPPLEMENTARY INFORMATION: 

The Petition

    On June 26, 2020, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition concerning imports of 
twist ties from the People's Republic of China (China) filed in proper 
form on behalf of Bedford Industries, Inc. (the petitioner).\1\ The 
Petition was accompanied by an antidumping duty (AD) petition 
concerning imports of twist ties from China.
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    \1\ See Petitioner's Letter, ``Petition for the Imposition of 
Antidumping and Countervailing Duties on Twist Ties from China,'' 
dated June 26, 2020 (the Petition).
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    Between June 30 and July 13, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the Petition,\2\ to which 
the petitioner filed responses between July 2 and 13, 2020.\3\
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    \2\ See Commerce's Letter, ``Petition for the Imposition of 
Countervailing Duties on Imports of Twist Ties from the People's 
Republic of China: Supplemental Questions,'' dated June 30, 2020; 
see also Commerce's Letter, ``Petition for the Imposition of 
Countervailing Duties on Imports of Twist Ties from the People's 
Republic of China: Supplemental Questions,'' dated July 2, 2020; 
Commerce's Letter, ``Petition for the Imposition of Countervailing 
Duties on Imports of Twist Ties from the People's Republic of China: 
Supplemental Questions,'' dated July 7, 2020; Memorandum, 
``Petitions for the Imposition of Antidumping and Countervailing 
Duties on Imports of Twist Ties from the People's Republic of China: 
Phone Call with Counsel to the Petitioner,'' dated July 7, 2020 
(Phone Call Memorandum); and Memorandum, ``Twist Ties from the 
People's Republic of China Countervailing Duty Petition: Placing 
Document on the Record,'' dated July 13, 2020.
    \3\ See Petitioner's Letter, ``Petition for the Imposition of 
Antidumping and Countervailing Duties on Twist Ties from China: 
Response of Bedford Industries, Inc. to Supplemental 
Questionnaire,'' dated July 2, 2020 (First CVD Petition Supplement); 
see also Petitioner's Letter, ``Petition for the Imposition of 
Antidumping and Countervailing Duties on Twist Ties from China: 
Response of Bedford Industries, Inc. to Supplemental 
Questionnaire,'' dated July 7, 2020 (Second CVD Petition 
Supplement); Petitioner's Letter, ``Twist Ties from the People's 
Republic of China,'' dated July 9, 2020 (Second General Issues 
Supplement); and Petitioner's Letter, ``Twist Ties from the People's 
Republic of China,'' dated July 13, 2020 (General Issues 
Supplement).
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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 twist ties in China 
and that such imports are materially injuring, or threatening material 
injury to, the domestic industry producing twist ties 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 supported by information reasonably 
available to the petitioner supporting its allegations.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in section 771(9)(C) 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 ``Determination of Industry Support for the Petition'' 
section, infra.
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Period of Investigation

    Because the Petition was filed on June 26, 2020, the period of 
investigation (POI) is January 1, 2019 through December 31, 2019.\5\
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    \5\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation

    The merchandise covered by this investigation is twist ties from 
China. For a full description of the scope of this investigation, see 
the appendix to this notice.

Comments on Scope of the Investigation

    On June 30 and July 7, 2020, Commerce requested further information 
from 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\ On July 
6 and 9, 2020, the petitioner revised the scope.\7\ The description of 
the merchandise covered by this investigation, as described in the

[[Page 45189]]

appendix to this notice, reflects these clarifications.
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    \6\ See General Issues Supplemental at 3-4; see also Phone Call 
Memorandum.
    \7\ See Second General Issues Supplement at 3-4; see also Second 
General Issues Supplement at 3-4.
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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 (i.e., scope).\8\ 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,\9\ 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 August 5, 2020, which is 20 calendar days from the signature 
date of this notice.\10\ Any rebuttal comments, which may include 
factual information, must be filed by 5:00 p.m. ET on August 17, 2020, 
which is the next business day after 10 calendar days from the initial 
comment deadline.\11\
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    \8\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble).
    \9\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \10\ See 19 CFR 351.303(b).
    \11\ Commerce's practice dictates that where a deadline falls on 
a weekend or Federal holiday, the appropriate deadline is the next 
business day (in this instance, August 17, 2020). See Notice of 
Clarification: Application of ``Next Business Day'' Rule for 
Administrative Determination Deadlines Pursuant to the Tariff Act of 
1930, As Amended, 70 FR 24533 (May 10, 2005).
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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 investigation.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's (E&C's) Antidumping Duty and 
Countervailing Duty Centralized Electronic Service System (ACCESS), 
unless an exception applies.\12\ An electronically filed document must 
be received successfully in its entirety by the time and date it is 
due.
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    \12\ 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_on_Electronic_Filing_Procedures.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.\13\ The 
GOC requested consultations, which were held on July 14, 2020.\14\
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    \13\ See Commerce's Letter, ``Twist Ties from the People's 
Republic of China: Invitation for Consultation to Discuss the 
Countervailing Duty Petition, '' dated June 26, 2020.
    \14\ See Memorandum, ``Twist Ties from the People's Republic of 
China Countervailing Duty Petition: Consultations with the 
Government of the People's Republic of China,'' dated July 15, 2020.
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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,\15\ 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.\16\
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    \15\ See section 771(10) of the Act.
    \16\ 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), 
cert. denied 492 U.S. 919 (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 investigation.\17\ Based on our analysis of the information 
submitted on the record, we have determined that twist ties, as defined 
in the scope, constitute a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\18\
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    \17\ See Volume I of the Petition at 17-20 and Exhibit GEN-1; 
see also General Issues Supplement at 5-6; and Second General Issues 
Supplement at 4-5 and Supplemental Declaration from Jay Milbrandt 
(Supplemental Declaration).
    \18\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Countervailing Duty Investigation Initiation Checklist: Twist Ties 
from the People's Republic of China (China CVD Initiation Checklist) 
at Attachment II, Analysis of Industry Support for the Antidumping 
and Countervailing Duty Petitions Covering Twist Ties from the 
People's Republic of China (Attachment II). This checklist is dated 
concurrently with this notice and on file electronically via ACCESS.
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    In determining whether the petitioner has standing under section 
702(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 production of the domestic like product in 2019 and compared this 
to the estimated total production of the domestic like product for the 
entire domestic industry.\19\ We have relied on the data provided by 
the petitioner for

[[Page 45190]]

purposes of measuring industry support.\20\
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    \19\ See Second General Issues Supplement at 2-3 and 
Supplemental Declaration.
    \20\ See General Issues Supplement at 7; see also Second General 
Issues Supplement at 2-3. For further discussion, see Attachment II 
of the China CVD Initiation Checklist.
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    Our review of the data provided in the Petition, the General Issues 
Supplement, the Second General Issues Supplement, and other information 
readily available to Commerce indicates that the petitioner has 
established industry support for the Petition.\21\ 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).\22\ 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.\23\ 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.\24\ 
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.\25\
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    \21\ See Attachment II of the China CVD Initiation Checklist.
    \22\ Id.; see also section 702(c)(4)(D) of the Act.
    \23\ See Attachment II of the China CVD Initiation Checklist.
    \24\ Id.
    \25\ 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 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.\26\
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    \26\ See Volume I of the Petition at 22 and Exhibits GEN-1 and 
GEN-11 through GEN-13.
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    The petitioner contends that the industry's injured condition is 
illustrated by a significant volume and market share of subject 
imports; underselling and price depression and suppression; lost sales 
and revenues; declines in shipments and net sales; decline in financial 
performance; and low level of capacity utilization.\27\ We 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.\28\
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    \27\ See Volume I of the Petition at 8, 15-16, 21-29 and 
Exhibits GEN-1, GEN-8, and GEN-11; see also General Issues 
Supplement at 2 and 9-10; and Second General Issues Supplement at 3.
    \28\ See China CVD Initiation Checklist at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Twist Ties from the People's Republic of China (Attachment 
III).
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Initiation of CVD Investigation

    Based upon our examination of the Petition and supplemental 
responses, 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 twist ties from China benefit from 
countervailable subsidies conferred by the GOC. Based on our review of 
the Petition, we find that there is sufficient information to initiate 
a CVD investigation on 15 of the 20 alleged programs. For a full 
discussion of the basis for our decision to initiate on each program, 
see China 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 six companies in China as producers/exporters 
of twist ties.\29\ 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 quantity and value (Q&V) 
questionnaires issued to the potential respondents. Commerce normally 
selects mandatory respondents in CVD investigations using U.S. Customs 
and Border Protection (CBP) entry data for U.S. imports under the 
appropriate Harmonized Tariff Schedule of the United States (HTSUS) 
numbers listed in the scope of the investigation. However, for this 
investigation, the main HTSUS numbers under which the subject 
merchandise would enter (i.e., 5609.00.3000, and 8309.90.0000) are 
basket categories under which non-subject merchandise may enter. 
Therefore, we cannot rely on CBP entry data in selecting respondents. 
We intend instead to issue Q&V questionnaires to each potential 
respondent for which the petitioner has provided a complete address.
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    \29\ See Volume I of the Petition at Exhibit GEN-6.
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    Producers/exporters of twist ties from China that do not receive 
Q&V questionnaires by mail may still submit a response to the Q&V 
questionnaire and can obtain the Q&V questionnaire from E&C's website 
at http://trade.gov/enforcement/news.asp. Responses to the Q&V 
questionnaire must be submitted by the relevant Chinese producers/
exporters no later than 5:00 p.m. ET on August 3, 2020. All Q&V 
responses must be filed electronically via ACCESS. An electronically 
filed document must be received successfully, in its entirety, by 
ACCESS no later than 5:00 p.m. ET on the deadline noted above. Commerce 
intends to finalize its decisions regarding respondent selection within 
20 days of publication of this notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOC 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 Determination 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

[[Page 45191]]

twist ties from China are materially injuring, or threatening material 
injury to, a U.S. industry.\30\ A negative ITC determination will 
result in the investigation being terminated.\31\ Otherwise, this 
investigation will proceed according to statutory and regulatory time 
limits.
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    \30\ See section 703(a)(1) of the Act.
    \31\ 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). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \32\ 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.\33\ 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. Interested parties 
should review the regulations prior to submitting factual information 
in this investigation.
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    \32\ See 19 CFR 351.301(b).
    \33\ 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 Commerce. 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.\34\ For submissions that are 
due from 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 for 
submissions which 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, stand-alone submission; under limited circumstances we 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 http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting extension requests 
or factual information in this investigation.
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    \34\ See 19 CFR 351.302.
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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.\35\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\36\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \35\ See section 782(b) of the Act.
    \36\ 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 
http://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. 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)). Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information, until 
further notice.\37\
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    \37\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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    This notice is issued and published pursuant to sections 702(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: July 16, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Investigation

    The merchandise covered by this investigation consists of twist 
ties, which are thin, bendable ties for closing containers, such as 
bags, bundle items, or identifying objects. A twist tie in most 
circumstances is comprised of one or more metal wires encased in a 
covering material, which allows the tie to retain its shape and bind 
against itself. However, it is possible to make a twist tie with 
plastic and no metal wires. The metal wire that is generally used in 
a twist tie is stainless or galvanized steel and typically measures 
between the gauges of 19 (.0410'' diameter) and 31 (.0132'') 
(American Standard Wire Gauge). A twist tie usually has a width 
between .075'' and 1'' in the cross-machine direction (width of the 
tie--measurement perpendicular with the wire); a thickness between 
.015'' and .045'' over the wire; and a thickness between .002'' and 
.020'' in areas without wire. The scope includes an all-plastic 
twist tie containing a plastic core as well as a plastic covering 
(the wing) over the core, just like paper and/or plastic in a metal 
tie. An all-plastic twist tie (without metal wire) would be of the 
same measurements as a twist tie containing one or more metal wires. 
Twist ties are commonly available individually in pre-cut lengths 
(``singles''), wound in large spools to be cut later by machine or 
hand, or in perforated sheets of spooled or single twist ties that 
are later slit by machine or by hand (``gangs'').
    The covering material of a twist tie may be paper (metallic or 
plain), or plastic, and can be dyed in a variety of colors with or 
without printing. A twist tie may have the same covering material on 
both sides or one side of paper and one side of plastic. When 
comprised of two sides of paper, the paper material is bound 
together with an adhesive or plastic. A twist tie may also have a 
tag or label attached to it or a pre-applied adhesive attached to 
it.
    Twist ties are imported into the United States under Harmonized 
Tariff Schedule of the United States (HTSUS) subheadings 
8309.90.0000 and 5609.00.3000. Subject merchandise may also enter 
under HTSUS subheadings 3920.51.5000, 3923.90.0080, 3926.90.9990, 
4811.59.6000, 4821.10.2000, 4821.10.4000, 4821.90.2000, 
4821.90.4000, and 4823.90.8600. These HTSUS subheadings are provided 
for reference only. The written description of the scope of the 
investigation is dispositive.

[FR Doc. 2020-16232 Filed 7-24-20; 8:45 am]
BILLING CODE 3510-DS-P