Twist Ties From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 45161-45165 [2020-16233]

Download as PDF Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices II. Approval of Minutes from the Last Meeting III. Discussion: Civil Rights Topics IV. Public Comment V. Next Steps VI. Adjournment Dated: July 22, 2020. David Mussatt, Supervisory Chief, Regional Programs Unit. [FR Doc. 2020–16208 Filed 7–24–20; 8:45 am] BILLING CODE P DEPARTMENT OF COMMERCE International Trade Administration [A–570–131] Twist Ties From the People’s Republic of China: Initiation of Less-Than-FairValue Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable July 16, 2020. FOR FURTHER INFORMATION CONTACT: Alex Wood or Brittany Bauer; AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1959 or (202) 482–3860, respectively. AGENCY: SUPPLEMENTARY INFORMATION: The Petition jbell on DSKJLSW7X2PROD with NOTICES On June 26, 2020, the U.S. Department of Commerce (Commerce) received an antidumping duty (AD) 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), a domestic producer of twist ties.1 The Petition was accompanied by a countervailing duty (CVD) petition concerning imports of twist ties from China.2 On June 30 and July 7, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petition in separate supplemental questionnaires and a phone call with the petitioner.3 On July 2, 6, and 9, 1 See Petitioner’s Letter, ‘‘Petition for the Imposition of Antidumping and Countervailing Duties on Twist Ties from the People’s Republic of China,’’ dated June 26, 2020 (the Petition). 2 Id. 3 See Commerce’s Letters, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Twist Ties from the People’s Republic of China: Supplemental Questions,’’ (General Issues Supplemental); ‘‘Petition for the Imposition of Antidumping Duties on Imports of Twist Ties from the People’s Republic of China: VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 2020, the petitioner filed responses to these requests for additional information.4 In accordance with section 732(b) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that imports of twist ties from China are being, or are likely to be, sold in the United States at less than fair value (LTFV) within the meaning of section 731 of the Act, and that imports of such products are materially injuring, or threatening material injury to, the domestic twist tie industry in the United States. Consistent with section 732(b)(1) of the Act, the Petition is accompanied by information reasonably available to the petitioner supporting the allegation. Commerce finds that the petitioner filed the Petition on behalf of the domestic industry because the petitioner is an interested party, as defined in sections 771(9)(C) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support for the initiation of the requested AD investigation.5 Period of Investigation Because China is a non-market economy (NME) country, pursuant to 19 CFR 351.204(b)(1), the period of investigation for the investigation is October 1, 2019 through March 31, 2020. Scope of the Investigation The products 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 the 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 Supplemental Questions Concerning Volume II,’’ all dated June 30, 2020; and 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). 4 See Petitioner’s Letters, ‘‘Twist Ties from the People’s Republic of China,’’ dated July 6, 2020 (General Issues Supplement) and ‘‘Petition for the Imposition of Antidumping Duties on Twist Ties from China: Response to Supplemental Questions from the Department of Commerce,’’ dated July 2, 2020 (China AD Supplement); and Petitioner’s Letter, ‘‘Twist Ties from the People’s Republic of China,’’ dated July 9, 2020 (Second General Issues Supplement). 5 See the ‘‘Determination of Industry Support for the Petition’’ section, infra. PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 45161 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 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, all such factual information should be limited to public information.9 To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit such 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. 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 ten calendar days from the initial comment deadline.10 Commerce requests that any factual information parties consider relevant to the scope of the investigation be submitted during this 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 submissions must be filed on the records of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically via Enforcement and Compliance’s (E&C’s) Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS), unless an exception 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. 8 See Antidumping Duties; Countervailing Duties, Final Rule, 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). Commerce 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) (Next Business Day Rule). E:\FR\FM\27JYN1.SGM 27JYN1 45162 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices applies.11 An electronically filed document must be received successfully in its entirety by the time and date it is due. Comments on Product Characteristics Commerce is providing interested parties an opportunity to comment on the appropriate physical characteristics of twist ties to be reported in response to Commerce’s AD questionnaire. This information will be used to identify the key physical characteristics of the subject merchandise in order to report the relevant factors of production (FOPs) accurately, as well as to develop appropriate product-comparison criteria. Interested parties may provide any information or comments that they feel are relevant to the development of an accurate list of physical characteristics. In order to consider the suggestions of interested parties in developing and issuing the AD questionnaire, all comments must be filed by 5:00 p.m. ET on August 5, 2020, which is 20 calendar days from the signature date of this notice.12 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 ten calendar days from the initial comment deadline. All comments and submissions to Commerce must be filed electronically using ACCESS, as explained above, on the record of the AD investigation. jbell on DSKJLSW7X2PROD with NOTICES Determination of Industry Support for the Petition Section 732(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 732(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 732(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic 11 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 help 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. 12 See 19 CFR 351.303(b). VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 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,13 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.14 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.15 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.16 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)). 15 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). 16 For a discussion of the domestic like product analysis as applied to this case and information PO 00000 13 See 14 See Frm 00004 Fmt 4703 Sfmt 4703 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 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.17 We have relied on the 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, the Second 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 732(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 732(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, regarding industry support, see the Antidumping Duty Investigation Initiation Checklist: Twist Ties from the People’s Republic of China (China AD 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, and hereby adopted by, this notice and on file electronically via ACCESS. 17 See Second General Issues Supplement at 2–3 and Supplemental Declaration. 18 See Volume I of the Petition at Exhibit GEN– 1; General Issues Supplement at 6–9; and Second General Issues Supplement at 2–3 and Supplemental Declaration. For further discussion, see Attachment II of the China AD Initiation Checklist. 19 See Attachment II of the China AD Initiation Checklist. 20 Id.; see also section 732(c)(4)(D) of the Act. 21 See Attachment II of the China AD Initiation Checklist. E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices the Petition.22 Accordingly, Commerce determines that the Petition was filed on behalf of the domestic industry within the meaning of section 732(b)(1) of the Act.23 Allegations and Evidence of Material Injury and Causation The petitioner alleges that the U.S. industry producing the domestic like product is being materially injured, or is threatened with material injury, by reason of the imports of the subject merchandise sold at LTFV. In addition, the petitioner alleges that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.24 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.25 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.26 Allegations of Sales at LTFV The following is a description of the allegations of sales at LTFV upon which Commerce based its decision to initiate the AD investigation of imports of twist ties from China. The sources of data for the deductions and adjustments relating to U.S. price and normal value (NV) are discussed in greater detail in the China AD Initiation Checklist. U.S. Price The petitioner based export price (EP) on information from a sale or offer for sale for twist ties produced in and exported from China by a Chinese producer and made adjustments for movement expenses, where appropriate.27 22 Id. jbell on DSKJLSW7X2PROD with NOTICES 23 Id. 24 See Volume I of the Petition at 22 and Exhibit GEN–1; see also General Issues Supplement at 10. 25 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. 26 See the China AD 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). 27 See the China AD Initiation Checklist. VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 Normal Value Commerce considers China to be an NME country.28 In accordance with section 771(18)(C)(i) of the Act, any determination that a foreign country is an NME country shall remain in effect until revoked by Commerce. Therefore, we continue to treat China as an NME country for purposes of the initiation of this investigation. Accordingly, NV in China is appropriately based on FOPs valued in a surrogate market economy country, in accordance with section 773(c) of the Act. The petitioner states that Mexico is an appropriate surrogate country because Mexico is a market economy country that is at a level of economic development comparable to that of China and is a significant producer of comparable merchandise.29 The petitioner submitted publicly available information from Mexico to value all FOPs.30 Based on the information provided by the petitioner, we determine that it is appropriate to use Mexico as a surrogate country for China for initiation purposes. Interested parties will have the opportunity to submit comments regarding surrogate country selections and, pursuant to 19 CFR 351.301(c)(3)(i), will be provided an opportunity to submit publicly available information to value FOPs within 30 days before the scheduled date of the preliminary determination. Factors of Production The petitioner used its own productspecific consumption rates as a surrogate to value Chinese manufacturers’ FOPs.31 Additionally, the petitioner calculated factory overhead; selling, general and administrative expenses; and profit based on the experience of a Mexican producer of comparable merchandise 28 See, e.g., Antidumping Duty Investigation of Certain Aluminum Foil from the People’s Republic of China: Affirmative Preliminary Determination of Sales at Less-Than-Fair Value and Postponement of Final Determination, 82 FR 50858, 50861 (November 2, 2017), and accompanying Preliminary Decision Memorandum at ‘‘China’s Status as a NonMarket Economy,’’ unchanged in Certain Aluminum Foil from the People’s Republic of China: Final Determination of Sales at Less Than Fair Value, 83 FR 9282 (March 5, 2018). 29 See Volume II of the Petitions at 2 and Exhibit AD–CH–3. 30 Id. at Exhibits AD–CH–3, AD–CH–4; and China AD Supplement at Exhibits AD–CN–S2, AD–CN– S3, and AD–CH–S4. 31 See Volume II of the Petition at 4 and Exhibits AD–CH–2, AD–CH–3, AD–CH–4; and China AD Supplement at Exhibits AD–CN–S2, AD–CN–S3, and AD–CH–S4. PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 45163 (i.e., rebars, cold finished bars, wire rods, and other products).32 Fair Value Comparisons Based on the data provided by the petitioner, there is reason to believe that imports of twist ties from China are being, or are likely to be, sold in the United States at LTFV. Based on a comparison of EP to NV in accordance with sections 772 and 773 of the Act, the estimated dumping margin for twist ties from China is 72.96 percent.33 Initiation of LTFV Investigation Based upon our examination of the Petition on twist ties from China and supplemental responses, we find that the Petition meets the requirements of section 732 of the Act. Therefore, we are initiating an AD investigation to determine whether imports of twist ties from China are being, or are likely to be, sold in the United States at LTFV. In accordance with section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 140 days after the date of this initiation. Respondent Selection The petitioner named six companies in China as producers/exporters of twist ties.34 In accordance with our standard practice for respondent selection in an AD investigation involving an NME country, Commerce selects respondents based on quantity and value (Q&V) questionnaires in cases where it has determined that the number of companies is large, and it cannot individually examine each company based upon its resources. Therefore, considering the number of producers and exporters identified in the Petitions, Commerce will solicit Q&V information that can serve as a basis for selecting exporters for individual examination in the event that Commerce decides to limit the number of respondents individually examined pursuant to section 777A(c)(2) of the Act. Commerce will issue Q&V questionnaires to all six identified producers and exporters for which there is address information on the record. In addition, Commerce will post the Q&V questionnaire along with filing instructions on E&C’s website at https:// enforcement.trade.gov/questionnaires/ questionnaires-ad.html. Producers/ exporters of twist ties from China that 32 See Volume II of the Petition at 4 and Exhibit AD–CH–3; and China AD Supplement at Exhibit AD–CN–S3. 33 See China AD Supplement at Exhibit AD–CH– 5. 34 See Volume I of the Petition at 14–15 and Exhibit Gen-6. E:\FR\FM\27JYN1.SGM 27JYN1 45164 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices do not receive Q&V questionnaires may still submit a response to the Q&V questionnaire and can obtain a copy of the Q&V questionnaire from E&C’s website. In accordance with our standard practice for respondent selection in AD cases involving NME countries, in the event Commerce decides to limit the number of respondents individually investigated, Commerce intends to base respondent selection on the responses to the Q&V questionnaire that it receives. 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. 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 E&C’s website at https://enforcement.trade.gov/apo. Commerce intends to finalize its decisions regarding respondent selection within 20 days of publication of this notice. Separate Rates jbell on DSKJLSW7X2PROD with NOTICES In order to obtain separate-rate status in an NME investigation, producers/ exporters must submit a separate-rate application.35 The specific requirements for submitting a separate-rate application in a China investigation are outlined in detail in the application itself, which is available on E&C’s website at https://enforcement.trade.gov/ nme/nme-sep-rate.html. The separaterate application will be due 30 days after publication of this initiation notice.36 Producers/exporters who submit a separate-rate application and have been selected as mandatory respondents will be eligible for consideration for separate-rate status only if they respond to all parts of Commerce’s AD questionnaire as mandatory respondents. Commerce requires that companies from China submit a response to both the Q&V questionnaire and the separate-rate application by the respective deadlines in order to receive consideration for separate-rate status. Companies not filing a timely Q&V questionnaire 35 See Policy Bulletin 05.1: ‘‘Separate-Rates Practice and Application of Combination Rates in Antidumping Investigation involving NME Countries,’’ (April 5, 2005), available at https:// enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1). 36 Although in past investigations this deadline was 60 days, consistent with 19 CFR 351.301(a), which states that ‘‘the Secretary may request any person to submit factual information at any time during a proceeding,’’ this deadline is now 30 days. VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 response will not receive separate rate consideration. Use of Combination Rates Commerce will calculate combination rates for certain respondents that are eligible for a separate rate in an NME investigation. The Separate Rates and Combination Rates Bulletin states: {w}hile continuing the practice of assigning separate rates only to exporters, all separate rates that {Commerce} will now assign in its NME Investigation will be specific to those producers that supplied the exporter during the period of investigation. Note, however, that one rate is calculated for the exporter and all of the producers which supplied subject merchandise to it during the period of investigation. This practice applies both to mandatory respondents receiving an individually calculated separate rate as well as the pool of non-investigated firms receiving the weighted-average of the individually calculated rates. This practice is referred to as the application of ‘‘combination rates’’ because such rates apply to specific combinations of exporters and one or more producers. The cash-deposit rate assigned to an exporter will apply only to merchandise both exported by the firm in question and produced by a firm that supplied the exporter during the period of investigation.37 Distribution of Copies of the AD 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 our initiation, as required by section 732(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 twist ties from China are materially injuring, or threatening material injury to, a U.S. industry.38 A negative ITC determination will result in the investigation being terminated.39 Otherwise, this investigation will proceed according to statutory and regulatory time limits. PO 00000 37 See 38 See Policy Bulletin 05.1 at 6 (emphasis added). section 733(a) of the Act. 39 Id. Frm 00006 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, must specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 40 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.41 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 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. 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, we 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 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 https://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to 40 See 41 See Fmt 4703 Sfmt 4703 E:\FR\FM\27JYN1.SGM 19 CFR 351.301(b). 19 CFR 351.301(b)(2). 27JYN1 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices submitting 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.42 Parties must use the certification formats provided in 19 CFR 351.303(g).43 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.44 This notice is issued and published pursuant to sections 732(c)(2) and 777(i) of the Act, and 19 CFR 351.203(c). [FR Doc. 2020–16233 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 International Trade Administration 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- [A–580–887] 42 See DEPARTMENT OF COMMERCE 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). Answers to frequently asked questions regarding the Final Rule are available at https://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 44 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020). 43 See jbell on DSKJLSW7X2PROD with NOTICES 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. VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 Carbon and Alloy Steel Cut-to-Length Plate from the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review; 2018– 2019 and Partial Rescission of Review Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) is conducting an administrative review of the antidumping duty order on carbon and alloy steel cut-to-length plate from the Republic of Korea. The period of review (POR) is May 1, 2018, through April 30, 2019. The review covers one producer/ exporter of the subject merchandise, POSCO/POSCO International Corporation (successor in interest to POSCO Daewoo Corporation)/POSCO Processing & Service Co., Ltd. and its affiliated companies (collectively, the AGENCY: PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 45165 POSCO single entity). We preliminarily determine that sales of subject merchandise by the POSCO single entity were not made at prices below normal value (NV). Interested parties are invited to comment on these preliminary results. DATES: Applicable July 27, 2020. FOR FURTHER INFORMATION CONTACT: Michael Bowen or William Horn, AD/ CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–0768 or (202) 482–4868, respectively. SUPPLEMENTARY INFORMATION: Background On July 15, 2019, based on a timely request for review, in accordance with 19 CFR 351.221(c)(1)(i), we initiated an administrative review of the antidumping duty order on certain carbon and alloy steel cut-to-length plate from the Republic of Korea 1 for twelve companies.2 On September 4, 2019, we selected POSCO/POSCO Daewoo Corporation 3/POSCO Processing & Service Co., Ltd. for individual examination as the sole mandatory respondent in this administrative review.4 Additionally, on October 9, 2019 the petitioners withdrew their request for review of all companies except for this entity.5 In December 2019, we extended the deadline for these preliminary results until May 29, 2020.6 On April 24, 2020, 1 See Certain Carbon and Alloy Steel Cut-toLength Plate from Austria, Belgium, France, the Federal Republic of Germany, Italy, Japan, the Republic of Korea, and Taiwan: Amended Final Affirmative Antidumping Determinations for France, the Federal Republic of Germany, the Republic of Korea and Taiwan, and Antidumping Duty Orders, 82 FR 24096 (May 25, 2017) (Order). 2 See Initiation of Antidumping and Countervailing Duty Administration Reviews, 84 FR 33739 (July 15, 2019) (Initiation Notice). 3 Based on the record evidence in this review, we are preliminarily finding POSCO International Corporation to be the successor in interest to POSCO Daewoo Corporation. For a full discussion of the proprietary details of Commerce’s analysis regarding the successor-in-interest finding, see Memorandum, ‘‘Certain Carbon and Alloy Steel Cut-to-Length Plate from the Republic of Korea: POSCO Affiliation and Collapsing Memorandum,’’ dated concurrently with this memorandum (Affiliation and Collapsing Memorandum). 4 See Memorandum, ‘‘2018–2019 Administrative Review of Carbon and Alloy Steel Cut-to-Length Plate from the Republic of Korea: Respondent Selection,’’ dated September 4, 2019. 5 See Petitioners’ Letter, ‘‘Carbon and Alloy Steel Cut-To-Length Plate from the Republic of Korea— Petitioners’ Partial Withdrawal of Administrative Review Request,’’ dated October 9, 2019. 6 See Memorandum, ‘‘Carbon and Alloy Steel CutTo-Length Plate from the Republic of Korea: E:\FR\FM\27JYN1.SGM Continued 27JYN1

Agencies

[Federal Register Volume 85, Number 144 (Monday, July 27, 2020)]
[Notices]
[Pages 45161-45165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16233]


=======================================================================
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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-131]


Twist Ties From the People's Republic of China: Initiation of 
Less-Than-Fair-Value Investigation

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

DATES: Applicable July 16, 2020.

FOR FURTHER INFORMATION CONTACT: Alex Wood or Brittany Bauer; AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1959 or (202) 482-3860, 
respectively.

SUPPLEMENTARY INFORMATION:

The Petition

    On June 26, 2020, the U.S. Department of Commerce (Commerce) 
received an antidumping duty (AD) 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), a domestic 
producer of twist ties.\1\ The Petition was accompanied by a 
countervailing duty (CVD) petition concerning imports of twist ties 
from China.\2\
---------------------------------------------------------------------------

    \1\ See Petitioner's Letter, ``Petition for the Imposition of 
Antidumping and Countervailing Duties on Twist Ties from the 
People's Republic of China,'' dated June 26, 2020 (the Petition).
    \2\ Id.
---------------------------------------------------------------------------

    On June 30 and July 7, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the Petition in separate 
supplemental questionnaires and a phone call with the petitioner.\3\ On 
July 2, 6, and 9, 2020, the petitioner filed responses to these 
requests for additional information.\4\
---------------------------------------------------------------------------

    \3\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Twist Ties from 
the People's Republic of China: Supplemental Questions,'' (General 
Issues Supplemental); ``Petition for the Imposition of Antidumping 
Duties on Imports of Twist Ties from the People's Republic of China: 
Supplemental Questions Concerning Volume II,'' all dated June 30, 
2020; and 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).
    \4\ See Petitioner's Letters, ``Twist Ties from the People's 
Republic of China,'' dated July 6, 2020 (General Issues Supplement) 
and ``Petition for the Imposition of Antidumping Duties on Twist 
Ties from China: Response to Supplemental Questions from the 
Department of Commerce,'' dated July 2, 2020 (China AD Supplement); 
and Petitioner's Letter, ``Twist Ties from the People's Republic of 
China,'' dated July 9, 2020 (Second General Issues Supplement).
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of twist ties 
from China are being, or are likely to be, sold in the United States at 
less than fair value (LTFV) within the meaning of section 731 of the 
Act, and that imports of such products are materially injuring, or 
threatening material injury to, the domestic twist tie industry in the 
United States. Consistent with section 732(b)(1) of the Act, the 
Petition is accompanied by information reasonably available to the 
petitioner supporting the allegation.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because the petitioner is an interested party, as 
defined in sections 771(9)(C) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support for the initiation 
of the requested AD investigation.\5\
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    \5\ See the ``Determination of Industry Support for the 
Petition'' section, infra.
---------------------------------------------------------------------------

Period of Investigation

    Because China is a non-market economy (NME) country, pursuant to 19 
CFR 351.204(b)(1), the period of investigation for the investigation is 
October 1, 2019 through March 31, 2020.

Scope of the Investigation

    The products 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 the 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 
appendix to this notice, reflects these clarifications.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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, all such 
factual information should be limited to public information.\9\ To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such 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. 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 ten calendar days from the initial comment 
deadline.\10\
---------------------------------------------------------------------------

    \8\ See Antidumping Duties; Countervailing Duties, Final Rule, 
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). Commerce 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) (Next Business Day Rule).
---------------------------------------------------------------------------

    Commerce requests that any factual information parties consider 
relevant to the scope of the investigation be submitted during this 
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 submissions must be filed 
on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's (E&C's) Antidumping Duty and 
Countervailing Duty Centralized Electronic Service System (ACCESS), 
unless an exception

[[Page 45162]]

applies.\11\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------

    \11\ 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 help 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.
---------------------------------------------------------------------------

Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of twist ties to be 
reported in response to Commerce's AD questionnaire. This information 
will be used to identify the key physical characteristics of the 
subject merchandise in order to report the relevant factors of 
production (FOPs) accurately, as well as to develop appropriate 
product-comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. In order to consider the suggestions of 
interested parties in developing and issuing the AD questionnaire, all 
comments must be filed by 5:00 p.m. ET on August 5, 2020, which is 20 
calendar days from the signature date of this notice.\12\ 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 ten 
calendar days from the initial comment deadline. All comments and 
submissions to Commerce must be filed electronically using ACCESS, as 
explained above, on the record of the AD investigation.
---------------------------------------------------------------------------

    \12\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(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 732(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,\13\ 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.\14\
---------------------------------------------------------------------------

    \13\ See section 771(10) of the Act.
    \14\ 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)).
---------------------------------------------------------------------------

    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.\15\ 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.\16\
---------------------------------------------------------------------------

    \15\ 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).
    \16\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
the Antidumping Duty Investigation Initiation Checklist: Twist Ties 
from the People's Republic of China (China AD 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, and hereby adopted by, this notice and on file 
electronically via ACCESS.
---------------------------------------------------------------------------

    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 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.\17\ We have relied on the data provided by 
the petitioner for purposes of measuring industry support.\18\
---------------------------------------------------------------------------

    \17\ See Second General Issues Supplement at 2-3 and 
Supplemental Declaration.
    \18\ See Volume I of the Petition at Exhibit GEN-1; General 
Issues Supplement at 6-9; and Second General Issues Supplement at 2-
3 and Supplemental Declaration. For further discussion, see 
Attachment II of the China AD Initiation Checklist.
---------------------------------------------------------------------------

    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.\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 732(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 732(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,

[[Page 45163]]

the Petition.\22\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act.\23\
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    \19\ See Attachment II of the China AD Initiation Checklist.
    \20\ Id.; see also section 732(c)(4)(D) of the Act.
    \21\ See Attachment II of the China AD Initiation Checklist.
    \22\ Id.
    \23\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner alleges that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\24\
---------------------------------------------------------------------------

    \24\ See Volume I of the Petition at 22 and Exhibit GEN-1; see 
also General Issues Supplement at 10.
---------------------------------------------------------------------------

    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.\25\ 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.\26\
---------------------------------------------------------------------------

    \25\ 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.
    \26\ See the China AD 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).
---------------------------------------------------------------------------

Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate the AD investigation 
of imports of twist ties from China. The sources of data for the 
deductions and adjustments relating to U.S. price and normal value (NV) 
are discussed in greater detail in the China AD Initiation Checklist.

U.S. Price

    The petitioner based export price (EP) on information from a sale 
or offer for sale for twist ties produced in and exported from China by 
a Chinese producer and made adjustments for movement expenses, where 
appropriate.\27\
---------------------------------------------------------------------------

    \27\ See the China AD Initiation Checklist.
---------------------------------------------------------------------------

Normal Value

    Commerce considers China to be an NME country.\28\ In accordance 
with section 771(18)(C)(i) of the Act, any determination that a foreign 
country is an NME country shall remain in effect until revoked by 
Commerce. Therefore, we continue to treat China as an NME country for 
purposes of the initiation of this investigation. Accordingly, NV in 
China is appropriately based on FOPs valued in a surrogate market 
economy country, in accordance with section 773(c) of the Act.
---------------------------------------------------------------------------

    \28\ See, e.g., Antidumping Duty Investigation of Certain 
Aluminum Foil from the People's Republic of China: Affirmative 
Preliminary Determination of Sales at Less-Than-Fair Value and 
Postponement of Final Determination, 82 FR 50858, 50861 (November 2, 
2017), and accompanying Preliminary Decision Memorandum at ``China's 
Status as a Non-Market Economy,'' unchanged in Certain Aluminum Foil 
from the People's Republic of China: Final Determination of Sales at 
Less Than Fair Value, 83 FR 9282 (March 5, 2018).
---------------------------------------------------------------------------

    The petitioner states that Mexico is an appropriate surrogate 
country because Mexico is a market economy country that is at a level 
of economic development comparable to that of China and is a 
significant producer of comparable merchandise.\29\ The petitioner 
submitted publicly available information from Mexico to value all 
FOPs.\30\ Based on the information provided by the petitioner, we 
determine that it is appropriate to use Mexico as a surrogate country 
for China for initiation purposes.
---------------------------------------------------------------------------

    \29\ See Volume II of the Petitions at 2 and Exhibit AD-CH-3.
    \30\ Id. at Exhibits AD-CH-3, AD-CH-4; and China AD Supplement 
at Exhibits AD-CN-S2, AD-CN-S3, and AD-CH-S4.
---------------------------------------------------------------------------

    Interested parties will have the opportunity to submit comments 
regarding surrogate country selections and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    The petitioner used its own product-specific consumption rates as a 
surrogate to value Chinese manufacturers' FOPs.\31\ Additionally, the 
petitioner calculated factory overhead; selling, general and 
administrative expenses; and profit based on the experience of a 
Mexican producer of comparable merchandise (i.e., rebars, cold finished 
bars, wire rods, and other products).\32\
---------------------------------------------------------------------------

    \31\ See Volume II of the Petition at 4 and Exhibits AD-CH-2, 
AD-CH-3, AD-CH-4; and China AD Supplement at Exhibits AD-CN-S2, AD-
CN-S3, and AD-CH-S4.
    \32\ See Volume II of the Petition at 4 and Exhibit AD-CH-3; and 
China AD Supplement at Exhibit AD-CN-S3.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of twist ties from China are being, or are likely 
to be, sold in the United States at LTFV. Based on a comparison of EP 
to NV in accordance with sections 772 and 773 of the Act, the estimated 
dumping margin for twist ties from China is 72.96 percent.\33\
---------------------------------------------------------------------------

    \33\ See China AD Supplement at Exhibit AD-CH-5.
---------------------------------------------------------------------------

Initiation of LTFV Investigation

    Based upon our examination of the Petition on twist ties from China 
and supplemental responses, we find that the Petition meets the 
requirements of section 732 of the Act. Therefore, we are initiating an 
AD investigation to determine whether imports of twist ties from China 
are being, or are likely to be, sold in the United States at LTFV. In 
accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determination no later than 140 days after the date of this initiation.

Respondent Selection

    The petitioner named six companies in China as producers/exporters 
of twist ties.\34\ In accordance with our standard practice for 
respondent selection in an AD investigation involving an NME country, 
Commerce selects respondents based on quantity and value (Q&V) 
questionnaires in cases where it has determined that the number of 
companies is large, and it cannot individually examine each company 
based upon its resources. Therefore, considering the number of 
producers and exporters identified in the Petitions, Commerce will 
solicit Q&V information that can serve as a basis for selecting 
exporters for individual examination in the event that Commerce decides 
to limit the number of respondents individually examined pursuant to 
section 777A(c)(2) of the Act. Commerce will issue Q&V questionnaires 
to all six identified producers and exporters for which there is 
address information on the record.
---------------------------------------------------------------------------

    \34\ See Volume I of the Petition at 14-15 and Exhibit Gen-6.
---------------------------------------------------------------------------

    In addition, Commerce will post the Q&V questionnaire along with 
filing instructions on E&C's website at https://enforcement.trade.gov/questionnaires/questionnaires-ad.html. Producers/exporters of twist 
ties from China that

[[Page 45164]]

do not receive Q&V questionnaires may still submit a response to the 
Q&V questionnaire and can obtain a copy of the Q&V questionnaire from 
E&C's website. In accordance with our standard practice for respondent 
selection in AD cases involving NME countries, in the event Commerce 
decides to limit the number of respondents individually investigated, 
Commerce intends to base respondent selection on the responses to the 
Q&V questionnaire that it receives.
    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.
    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 E&C's website at https://enforcement.trade.gov/apo. Commerce intends to finalize its decisions 
regarding respondent selection within 20 days of publication of this 
notice.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
producers/exporters must submit a separate-rate application.\35\ The 
specific requirements for submitting a separate-rate application in a 
China investigation are outlined in detail in the application itself, 
which is available on E&C's website at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate application will be due 30 
days after publication of this initiation notice.\36\ Producers/
exporters who submit a separate-rate application and have been selected 
as mandatory respondents will be eligible for consideration for 
separate-rate status only if they respond to all parts of Commerce's AD 
questionnaire as mandatory respondents. Commerce requires that 
companies from China submit a response to both the Q&V questionnaire 
and the separate-rate application by the respective deadlines in order 
to receive consideration for separate-rate status. Companies not filing 
a timely Q&V questionnaire response will not receive separate rate 
consideration.
---------------------------------------------------------------------------

    \35\ See Policy Bulletin 05.1: ``Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving NME Countries,'' (April 5, 2005), available at https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1).
    \36\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
---------------------------------------------------------------------------

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

    {w{time} hile continuing the practice of assigning separate 
rates only to exporters, all separate rates that {Commerce{time}  
will now assign in its NME Investigation will be specific to those 
producers that supplied the exporter during the period of 
investigation. Note, however, that one rate is calculated for the 
exporter and all of the producers which supplied subject merchandise 
to it during the period of investigation. This practice applies both 
to mandatory respondents receiving an individually calculated 
separate rate as well as the pool of non-investigated firms 
receiving the weighted-average of the individually calculated rates. 
This practice is referred to as the application of ``combination 
rates'' because such rates apply to specific combinations of 
exporters and one or more producers. The cash-deposit rate assigned 
to an exporter will apply only to merchandise both exported by the 
firm in question and produced by a firm that supplied the exporter 
during the period of investigation.\37\
---------------------------------------------------------------------------

    \37\ See Policy Bulletin 05.1 at 6 (emphasis added).
---------------------------------------------------------------------------

Distribution of Copies of the AD 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 our initiation, as required by 
section 732(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 twist ties from China are materially 
injuring, or threatening material injury to, a U.S. industry.\38\ A 
negative ITC determination will result in the investigation being 
terminated.\39\ Otherwise, this investigation will proceed according to 
statutory and regulatory time limits.
---------------------------------------------------------------------------

    \38\ See section 733(a) of the Act.
    \39\ Id.
---------------------------------------------------------------------------

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, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \40\ 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.\41\ 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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    \40\ See 19 CFR 351.301(b).
    \41\ 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. 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, we 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 https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to

[[Page 45165]]

submitting 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.\42\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\43\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \42\ See section 782(b) of the Act.
    \43\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are 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. 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.\44\
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    \44\ 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 732(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. 2020-16233 Filed 7-24-20; 8:45 am]
BILLING CODE 3510-DS-P

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