Twist Ties From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination, 77167-77169 [2020-26452]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 85, Number 231 (Tuesday, December 1, 2020)]
[Notices]
[Pages 77167-77169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26452]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-132]


Twist Ties From the People's Republic of China: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination With Final Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of twist ties from the People's Republic of China (China). 
The period of investigation is January 1, 2019 through December 31, 
2019. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable December 1, 2020.

FOR FURTHER INFORMATION CONTACT: Ajay Menon or Adam Simons, 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) 482-1993 or (202) 482-6172, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
initiated this investigation on July 16, 2020.\1\ On September 1, 2020, 
Commerce postponed the preliminary determination of this investigation 
and the revised deadline is November 23, 2020.\2\ For a complete 
description of events following the initiation of this investigation, 
see the Preliminary Decision Memorandum.\3\ A list of topics discussed 
in the Preliminary Decision Memorandum is included as Appendix II to 
this notice. The Preliminary Decision Memorandum is a public document 
and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Preliminary 
Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Preliminary Decision Memorandum are identical in content.
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    \1\ See Twist Ties from the People's Republic of China: 
Initiation of Countervailing Duty Investigation, 85 FR 45188 (July 
27, 2020) (Initiation Notice).
    \2\ See Twist Ties from the People's Republic of China: 
Postponement of Preliminary Determination of Antidumping Duty 
Investigation, 85 FR 54352 (September 1, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Affirmative 
Preliminary Determination of the Countervailing Duty Investigation 
of Twist Ties from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).

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[[Page 77168]]

Scope of the Investigation

    The product covered by this investigation is twist ties from China. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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    For a summary of the product coverage comments and rebuttal 
responses submitted to the record for this preliminary determination, 
and accompanying discussion and analysis of all comments timely 
received, see the Preliminary Scope Decision Memorandum.\6\ Commerce is 
preliminarily modifying the scope language as it appeared in the 
Initiation Notice to exclude twist ties packaged with bags for sale 
together where the quantity of twist ties does not exceed twice the 
number of bags in each package. Commerce is also excluding twist ties 
that are part of the packaging of the imported product.
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    \6\ See Memorandum, ``Antidumping and Countervailing Duty 
Investigations of Twist Ties from the People's Republic of China: 
Scope Comments Decision Memorandum for the Preliminary 
Determination,'' dated concurrently with this notice (Preliminary 
Scope Decision Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\7\
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    \7\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\8\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of twist ties from China based on a request 
made by the petitioner.\9\ Consequently, the final CVD determination 
will be issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than February 16, 2020, 
unless postponed.
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    \9\ See Petitioner's Letter, ``Twist Ties from the People's 
Republic of China: Request to Align Final Countervailing Duty 
Determination with the Companion Antidumping Duty Final 
Determination,'' dated August 27, 2020.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual 
estimated countervailable subsidy rates established for all exporters 
and producers individually examined are zero, de minimis or determined 
based entirely on facts otherwise available, Commerce may use ``any 
reasonable method'' to establish the estimated subsidy rate for all-
other producers or exporters. In this investigation, Commerce 
preliminarily determined the individually estimated subsidy rate for 
each of the individually examined respondents based entirely on facts 
available under section 776 of the Act. Consequently, pursuant to 
sections 703(d) and 705(c)(5)(A)(ii) of the Act, we established the 
all-others rate by applying the countervailable subsidy rate assigned 
to the mandatory respondents.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Dongguan Guanqiao Industrial Co., Ltd.......................       122.5
Foshan Shunde Ronggui Yingli Industrial Co., Ltd............       122.5
Yiwu Kurui Handicraft Co. Ltd...............................       122.5
Zhenjiang Hongda Commodity Co. Ltd..........................       122.5
Zhenjiang Zhonglian I/E Co., Ltd............................       122.5
All Others..................................................       122.5
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Normally, Commerce discloses its calculations performed in 
connection with the preliminary determination to interested parties 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b). However, because Commerce 
preliminarily applied total AFA rates in the calculation of the benefit 
for the non-responsive companies, and the applied AFA rates are based 
on rates calculated in prior proceedings, there are no calculations to 
disclose.

Verification

    Because the examined respondents in this investigation did not 
provide information requested by Commerce and Commerce preliminarily 
determines each of the examined respondents to have been uncooperative, 
it will not conduct verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than 21 
days after the date of publication of the preliminary determination. 
Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than seven days after the deadline date for case 
briefs.\10\ Pursuant to 19 CFR

[[Page 77169]]

351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal 
briefs in this investigation are encouraged to submit with each 
argument: (1) A statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.
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    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\11\
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    \11\ 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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International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: November 23, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--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.
    Excluded from the scope of the order are twist ties packaged 
with bags for sale together where the quantity of twist ties does 
not exceed twice the number of bags in each package. Also excluded 
are twists ties that constitute part of the packaging of the 
imported product, for example, merchandise anchored/secured to a 
backing with twist ties in the retail package or a bag of bread that 
is closed with a twist tie.
    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.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Recommendation

[FR Doc. 2020-26452 Filed 11-30-20; 8:45 am]
BILLING CODE 3510-DS-P