Aluminum Lithographic Printing Plates From the People's Republic of China: Initiation of Countervailing Duty Investigation, 73313-73316 [2023-23531]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 88, Number 205 (Wednesday, October 25, 2023)]
[Notices]
[Pages 73313-73316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23531]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-157]


Aluminum Lithographic Printing Plates From the People's Republic 
of China: Initiation of Countervailing Duty Investigation

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

DATES: Applicable October 18, 2023.

FOR FURTHER INFORMATION CONTACT: Terre Keaton Stefanova, AD/CVD 
Operations, Office IX, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1280.

SUPPLEMENTARY INFORMATION:

The Petition

    On September 28, 2023, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition concerning imports of 
aluminum lithographic printing plates (printing plates) from the 
People's Republic of China (China) filed in proper form on behalf of 
Eastman Kodak Company (the petitioner).\1\ The CVD petition was 
accompanied by antidumping duty (AD) petitions concerning imports of 
printing plates from China and Japan.\2\
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    \1\ See Petitioner's Letter, ``Aluminum Lithographic Printing 
Plates from China and Japan--Petition for the Imposition of 
Antidumping and Countervailing Duties,'' dated September 28, 2023 
(Petition).
    \2\ Id.
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    On October 2 and 3, 2023, Commerce requested supplemental 
information pertaining to certain aspects of the Petition.\3\ On 
October 5 and 6, 2023, the petitioner filed timely responses to these 
requests for additional information.\4\
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    \3\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Aluminum 
Lithographic Printing Plates from the People's Republic of China and 
Japan: Supplemental Questions,'' dated October 2, 2023 (General 
Issues Questionnaire); and ``Petition for the Imposition of 
Antidumping Duties on Imports of Aluminum Lithographic Printing 
Plates from the People's Republic of China: Supplemental 
Questions,'' dated October 3, 2023.
    \4\ See Petitioner's Letters, ``Aluminum Lithographic Printing 
Plates from China and Japan--Petitioner's Supplement to Volume I 
Relating to Request for the Imposition of Antidumping and 
Countervailing Duties on Imports from China and Japan,'' dated 
October 5, 2023 (General Issues Supplement); and ``Aluminum 
Lithographic Printing Plates from the People's Republic of China--
Petitioner's Supplemental Questionnaire Response and Amendment to 
Volume IV Relating to Countervailing Duties,'' dated October 6, 
2023.
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of China 
(GOC) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act, to producers of printing plates in 
China, and that such imports are materially injuring, or threatening 
material injury to, the domestic industry producing printing plates in 
the United States. Consistent with section 702(b)(1) of the Act and 19 
CFR 351.202(b), for those alleged programs on which we are initiating a 
CVD investigation, the Petition is supported by information reasonably 
available to the petitioner.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because the petitioner is an interested party, as 
defined in section 771(9)(C) of the Act.\5\ Commerce also finds that 
the petitioner demonstrated sufficient industry support with respect to 
the initiation of the requested CVD investigation.\6\
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    \5\ See Petition at Volume I (page 2).
    \6\ See, infra, section on ``Determination of Industry Support 
for the Petition.''
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Period of Investigation

    Because the Petition was filed on September 28, 2023, pursuant to 
19 CFR 351.204(b)(2), the period of investigation (POI) is January 1, 
2022, through December 31, 2022.

Scope of the Investigation

    The products covered by this investigation are printing plates from 
China. For a full description of the scope of this investigation, see 
the appendix to this notice.

Comments on Scope of the Investigation

    On October 2, 2023, Commerce requested information and 
clarification 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.\7\ On October 5, 2023, the petitioner revised the scope.\8\ The 
description of merchandise covered by this investigation, as described 
in the appendix to this notice, reflects these clarifications.
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    \7\ See General Issues Questionnaire.
    \8\ See General Issues Supplement at 2-7 and Attachments 1-3.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for parties to raise issues regarding product 
coverage (i.e., scope).\9\ Commerce will consider all scope 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.\10\ To 
facilitate preparation of its questionnaires, Commerce requests that 
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on November 
7, 2023, which is 20 calendar days from the signature date of this 
notice. Any rebuttal comments, which may include factual information, 
must be filed by 5:00 p.m. ET on November 17, 2023, which is ten 
calendar days from the initial comment deadline.
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    \9\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble); see also 19 CFR 351.312.
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
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    Commerce requests that any factual information that the parties 
consider relevant to the scope of the investigation be submitted during 
that period. However, if a party subsequently finds that additional 
factual information pertaining to the scope of the investigation may be 
relevant, the party must contact Commerce and request permission to 
submit the additional information. All such submissions must be filed 
on the record of each of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\11\ An

[[Page 73314]]

electronically filed document must be received successfully in its 
entirety by the time and date it is due.
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    \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 using ACCESS 
can be found at: https://access.trade.gov/help.aspx and a handbook 
can be found at: https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
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Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the GOC of the receipt of the Petition and provided an 
opportunity for consultations with respect to the Petition.\12\ 
Commerce held consultations with the GOC on October 16, 2023.\13\
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    \12\ See Commerce's Letter, ``Countervailing Duty Petition on 
Aluminum Lithographic Printing Plates from the People's Republic of 
China,'' dated October 3, 2023.
    \13\ See Memorandum, ``Consultations with Officials with the 
Government of China,'' dated October 16, 2023.
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Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The U.S. 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,\14\ 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.\15\
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    \14\ See section 771(10) of the Act.
    \15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\16\ Based on our analysis of the information 
submitted on the record, we have determined that printing plates, as 
defined in the scope, constitute a single domestic like product, and we 
have analyzed industry support in terms of that domestic like 
product.\17\
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    \16\ See Petition at Volume I (pages 14-16); see also General 
Issues Supplement at 7-8.
    \17\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Countervailing Duty Investigation Initiation Checklist: Aluminum 
Lithographic Printing Plates from the People's Republic of China, 
dated concurrently with this notice (China CVD Initiation 
Checklist), at Attachment II, Analysis of Industry Support for the 
Antidumping and Countervailing Duty Petitions Covering Aluminum 
Lithographic Printing Plates from the People's Republic of China and 
Japan (Attachment II).
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    In determining whether the petitioner has standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
own production of printing plates in 2022 and compared this to the 
estimated total 2022 production of the domestic like product for the 
entire U.S. industry.\18\ We relied on data provided by the petitioner 
for purposes of measuring industry support.\19\
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    \18\ See Petition at Volume I (pages 3-4 and Exhibits GEN-1 and 
GEN-2); see also General Issues Supplement at 8 and Attachment 4.
    \19\ Id. For further discussion, see Attachment II of the China 
CVD Initiation Checklist.
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    Our review of the data provided in the Petition, General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petition.\20\ 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).\21\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
702(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition accounts for at least 25 percent of the total 
production of the domestic like product.\22\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 702(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition accounts for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition.\23\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 702(b)(1) of the Act.\24\
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    \20\ See Petition at Volume I (pages 3-4 and Exhibits GEN-1 and 
GEN-2); see also General Issues Supplement at 8 and Attachment 4. 
For further discussion, see Attachment II of the China CVD 
Initiation Checklist.
    \21\ See Attachment II of the China CVD Initiation Checklist; 
see also section 702(c)(4)(D) of the Act.
    \22\ See Attachment II of the China CVD Initiation Checklist.
    \23\ Id.
    \24\ Id.
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Injury Test

    Because China is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from China materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that imports of the subject merchandise are 
benefiting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioner 
alleges that subject imports exceed the

[[Page 73315]]

negligibility threshold provided for under section 771(24)(A) of the 
Act.\25\
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    \25\ See Petition at Volume I (page 17 and Exhibit GEN-8).
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    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
declining market share; underselling and price suppression; lost sales 
and revenues; plant closures; declining employment variables; and 
adverse impact on financial performance.\26\ 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.\27\
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    \26\ Id. at 17-35 and Exhibits GEN-1 through GEN-3, GEN-6, and 
GEN-8 through GEN-13; see also General Issues Supplement at 8-10 and 
Attachment 5.
    \27\ See China CVD Initiation Checklist at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Aluminum Lithographic Printing Plates from the People's 
Republic of China and Japan.
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Initiation of CVD Investigation

    Based upon the examination of the Petition and supplemental 
responses, we find that they meet the requirements of section 702 of 
the Act. Therefore, we are initiating a CVD investigation to determine 
whether imports of printing plates from China benefit from 
countervailable subsidies conferred by the GOC. Based on our review of 
the Petition, we find that there is sufficient information to initiate 
a CVD investigation on 14 of 16 programs alleged by the petitioner. For 
a full discussion of the basis for our decision to initiate an 
investigation of each program, see the China CVD Initiation Checklist. 
A public version of the initiation checklist for this investigation is 
available on ACCESS. In accordance with section 703(b)(1) of the Act 
and 19 CFR 351.205(b)(1), unless postponed, we will make our 
preliminary determination no later than 65 days after the date of this 
initiation.

Respondent Selection

    In the Petition, the petitioner identified eight companies in China 
as producers/exporters of printing plates.\28\ Following standard 
practice in CVD investigations, in the event Commerce determines that 
the number of exporters or producers is large such that Commerce cannot 
individually examine each company based on its resources, Commerce 
intends to select mandatory respondents based on U.S. Customs and 
Border Protection (CBP) entry data for U.S. imports under the 
appropriate Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings listed in the scope of the investigation.
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    \28\ See Petition at Volume I at Exhibit GEN-5.
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    On October 12, 2023, Commerce released CBP data on imports of 
printing plates from China under administrative protective order (APO) 
to all parties with access to information protected by APO and 
indicated that interested parties wishing to comment on CBP data and/or 
respondent selection must do so within three business days of the 
publication date of the notice of initiation of this investigation.\29\ 
Comments must be filed electronically using ACCESS. An electronically-
filed document must be received successfully in its entirety via ACCESS 
by 5:00 p.m. ET on the specified deadline. Commerce will not accept 
rebuttal comments regarding the CBP data or respondent selection.
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    \29\ See Memorandum, ``Release of U.S. Customs and Border 
Protection Data,'' dated October 12, 2023.
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Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOC via ACCESS. To the extent practicable, we 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 702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of printing plates from China are materially 
injuring, or threatening material injury to, a U.S. industry.\30\ A 
negative ITC determination will result in the investigation being 
terminated.\31\ Otherwise, this CVD investigation will proceed 
according to statutory and regulatory time limits.
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    \30\ See section 703(a)(1) of the Act.
    \31\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \32\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\33\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in this investigation.
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    \32\ See 19 CFR 351.301(b).
    \33\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301.\34\ For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, Commerce may elect to specify a different 
time limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, Commerce will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances we will 
grant untimely filed requests for the extension of time limits, where 
we determine, based on 19 CFR 351.302, that extraordinary circumstances 
exist. Parties should review Commerce's regulations concerning the 
extension of time limits and the Time Limits Final Rule prior to

[[Page 73316]]

submitting factual information in this investigation.\35\
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    \34\ See 19 CFR 351.301; see also Extension of Time Limits; 
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final 
Rule), available at: https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
    \35\ See 19 CFR 351.302; see also Time Limits Final Rule.
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Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\36\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\37\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \36\ See section 782(b) of the Act.
    \37\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at: 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Parties wishing to participate 
in this investigation should ensure that they meet the requirements of 
19 CFR 351.103(d) (e.g., by filing the required letters of appearance). 
Note that Commerce has temporarily modified certain of its requirements 
for serving documents containing business proprietary information, 
until further notice.\38\
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    \38\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020). Additionally, note that Commerce has modified its 
regulations to make permanent certain changes to its service 
procedures that were adopted on a temporary basis due to COVID-19, 
as well as additional clarifications and corrections to its AD/CVD 
regulations. Effective October 30, 2023, these changes will apply to 
all AD/CVD proceedings that are ongoing on the effective date and 
all AD/CVD proceedings initiated on or after the effective date. See 
Administrative Protective order, Service, and Other Procedures in 
Antidumping and Countervailing Duty Proceedings, 88 FR 67079 
(September 29, 2023).
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    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act, and 19 CFR 351.203(c).

    Dated: October 18, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The merchandise covered by this investigation is aluminum 
lithographic printing plates. Aluminum lithographic printing plates 
consist of a flat substrate containing at least 90 percent aluminum. 
The aluminum-containing substrate is generally treated using a 
mechanical, electrochemical, or chemical graining process, which is 
followed by one or more anodizing treatments that form a hydrophilic 
layer on the aluminum-containing substrate. An image-recording, 
oleophilic layer that is sensitive to light, including but not 
limited to ultra-violet, visible, or infrared, is dispersed in a 
polymeric binder material that is applied on top of the hydrophilic 
layer, generally on one side of the aluminum lithographic printing 
plate. The oleophilic light-sensitive layer is capable of capturing 
an image that is transferred onto the plate by either light or heat. 
The image applied to an aluminum lithographic printing plate 
facilitates the production of newspapers, magazines, books, 
yearbooks, coupons, packaging, and other printed materials through 
an offset printing process, where an aluminum lithographic printing 
plate facilitates the transfer of an image onto the printed media. 
Aluminum lithographic printing plates within the scope of this 
investigation include all aluminum lithographic printing plates, 
irrespective of the dimensions or thickness of the underlying 
aluminum substrate, whether the plate requires processing after an 
image is applied to the plate, whether the plate is ready to be 
mounted to a press and used in printing operations immediately after 
an image is applied to the plate, or whether the plate has been 
exposed to light or heat to create an image on the plate or remains 
unexposed and is free of any image.
    Subject merchandise also includes aluminum lithographic printing 
plates produced from an aluminum sheet coil that has been coated 
with a light-sensitive image-recording layer in a subject country 
and that is subsequently unwound and cut to the final dimensions to 
produce a finished plate in a third country (including the United 
States), or exposed to light or heat to create an image on the plate 
in a third country (including in a foreign trade zone within the 
United States).
    Excluded from the scope of this investigation are lithographic 
printing plates manufactured using a substrate produced from a 
material other than aluminum, such as rubber or plastic.
    Aluminum lithographic printing plates are currently classifiable 
under Harmonized Tariff of the United States (HTSUS) subheadings 
3701.30.0000 and 3701.99.6060. Further, merchandise that falls 
within the scope of this investigation may also be entered into the 
United States under HTSUS subheadings 3701.99.3000 and 8442.50.1000. 
Although the HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the scope of this 
investigation is dispositive.

[FR Doc. 2023-23531 Filed 10-24-23; 8:45 am]
BILLING CODE 3510-DS-P