Certain Paper Shopping Bags From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Determination of Critical Circumstances, 45829-45832 [2024-11478]
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Federal Register / Vol. 89, No. 102 / Friday, May 24, 2024 / Notices
countervailing duty (CVD) proceeding,
when CVD provisional measures are in
effect. Accordingly, where Commerce
has made a final affirmative
determination for countervailable export
subsidies, Commerce has offset the
estimated weighted-average dumping
margins by the appropriate CVD rate.
Any such adjusted cash deposit rate
may be found in the ‘‘Final
Determination’’ section above.
U.S. International Trade Commission
Notification
In accordance with section 735(d) of
the Act, we will notify the U.S.
International Trade Commission (ITC) of
our final affirmative determination of
sales at LTFV. Because the final
determination in this proceeding is
affirmative, in accordance with section
735(b)(2) of the Act, the ITC will make
its final determination as to whether the
domestic industry in the United States
is materially injured, or threatened with
material injury, by reason of imports of
paper bags from India no later than 45
days after this final determination. If the
ITC determines that material injury or
threat of material injury does not exist,
the proceeding will be terminated and
all cash deposits will be refunded or
canceled, and suspension of liquidation
will be lifted. If the ITC determines that
such injury does exist, Commerce will
issue an antidumping duty order
directing CBP to assess, upon further
instruction by Commerce, antidumping
duties on all imports of the subject
merchandise that are entered, or
withdrawn from warehouse, for
consumption on or after the effective
date of the suspension of liquidation, as
discussed above in the ‘‘Continuation of
Suspension of Liquidation’’ section.
ddrumheller on DSK120RN23PROD with NOTICES1
Administrative Protective Order
This notice will serve as the final
reminder to parties subject to an
administrative protective order (APO) of
their responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of return or
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and the terms of an
APO is a violation which is subject to
sanction.
Notification to Interested Parties
This determination and this notice are
issued and published pursuant to
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Jkt 262001
sections 735(d) and 777(i)(1) of the Act,
and 19 CFR 351.210(c).
Dated: May 17, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and
Negotiations, performing the non-exclusive
functions and duties of the Assistant
Secretary for Enforcement and Compliance.
Scope of the Investigation
The products within the scope of this
investigation are paper shopping bags with
handles of any type, regardless of whether
there is any printing, regardless of how the
top edges are finished (e.g., folded, serrated,
or otherwise finished), regardless of color,
and regardless of whether the top edges
contain adhesive or other material for sealing
closed. Subject paper shopping bags have a
width of at least 4.5 inches and depth of at
least 2.5 inches.
Paper shopping bags typically are made of
kraft paper but can be made from any type
of cellulose fiber, paperboard, or pressboard
with a basis weight less than 300 grams per
square meter (GSM).
A non-exhaustive illustrative list of the
types of handles on shopping bags covered
by the scope include handles made from any
materials such as twisted paper, flat paper,
yarn, ribbon, rope, string, or plastic, as well
as die-cut handles (whether the punchout is
fully removed or partially attached as a flap).
Excluded from the scope are:
• Paper sacks or bags that are of a 1⁄6 or 1⁄7
barrel size (i.e., 11.5–12.5 inches in width,
6.5–7.5 inches in depth, and 13.5–17.5
inches in height) with flat paper handles or
die-cut handles;
• Paper sacks or bags with die-cut handles,
a grams per square meter paper weight of less
than 86 GSM, and a height of less than 11.5
inches; and
• Shopping bags (i) with non-paper
handles made wholly of woven ribbon or
other similar woven fabric 12 and (ii) that are
finished with folded tops or for which tied
knots or t-bar aglets (made of wood, metal,
or plastic) are used to secure the handles to
the bags.
The above-referenced dimensions are
provided for paper bags in the opened
position. The height of the bag is the distance
from the bottom fold edge to the top edge
(i.e., excluding the height of handles that
extend above the top edge). The depth of the
bag is the distance from the front of the bag
edge to the back of the bag edge (typically
measured at the bottom of the bag). The
width of the bag is measured from the left to
the right edges of the front and back panels
(upon which the handles typically are
located).
12 Paper sacks or bags with handles made of
braided or twisted materials, such as rope or cord,
do not qualify for this exclusion.
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Sfmt 4703
This merchandise is currently classifiable
under Harmonized Tariff Schedule of the
United States (HTSUS) subheadings
4819.30.0040 and 4819.40.0040. The HTSUS
subheadings are provided for convenience
and customs purposes only; the written
description of the scope is dispositive.
Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
Appendix I
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45829
I. Summary
II. Background
III. Final Negative Determination of Critical
Circumstances
IV. Changes Since the Preliminary
Determination
V. Discussion of the Issues
Comment 1: Shorter Cost Averaging
Periods for KPPL
Comment 2: Correction of Aeroplast’s
Name in the Final Determination and
Final Customs Instructions
Comment 3: Adverse Inference for Shorter
Cost Averaging Periods for Aeroplast
VI. Recommendation
[FR Doc. 2024–11480 Filed 5–23–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–153]
Certain Paper Shopping Bags From the
People’s Republic of China: Final
Affirmative Countervailing Duty
Determination and Final Affirmative
Determination of Critical
Circumstances
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
AGENCY:
The U.S. Department of
Commerce (Commerce) determines that
countervailable subsidies are being
provided to producers/exporters of
certain paper shopping bags (paper
bags) from the People’s Republic of
China (China). The period of
investigation (POI) is January 1, 2022,
through December 31, 2022.
SUMMARY:
DATES:
Applicable May 24, 2024.
Seth
Brown, 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) 482–0029.
FOR FURTHER INFORMATION CONTACT:
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45830
Federal Register / Vol. 89, No. 102 / Friday, May 24, 2024 / Notices
SUPPLEMENTARY INFORMATION:
Background
On November 6, 2023, Commerce
published its Preliminary Determination
in the Federal Register and invited
interested parties to comment.1
Subsequently, on December 7, 2024,
Commerce released its Post-Preliminary
Analysis.2 For a complete discussion of
the events that followed the Preliminary
Determination, see the Issues and
Decision Memorandum.3
The Issues and Decision
Memorandum is a public document and
is made available to the public 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 Issues and Decision
Memorandum can be accessed directly
at https://access.trade.gov/public/
FRNoticesListLayout.aspx.
Scope of the Investigation
The products covered by this
investigation are paper bags from China.
For a complete description of the scope
of this investigation, see Appendix I.
ddrumheller on DSK120RN23PROD with NOTICES1
Scope Comments
During the course of this
investigation, Commerce received scope
comments from interested parties.
Commerce issued a Preliminary Scope
Decision Memorandum to address these
comments and set aside a period of time
for parties to address scope issues in
scope-specific case and rebuttal briefs.4
1 See Certain Paper Shopping Bags from the
People’s Republic of China: Preliminary Affirmative
Determination of Countervailable Subsidies,
Preliminary Affirmative Determination of Critical
Circumstances, and Alignment of Final
Determination With Final Antidumping Duty
Determination, 88 FR 76180 (November 6, 2023)
(Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM); see also
Certain Paper Shopping Bags from the People’s
Republic of China: Preliminary Affirmative
Determination of Countervailable Subsidies,
Preliminary Affirmative Determination of Critical
Circumstances, and Alignment of Final
Determination With Final Antidumping Duty
Determination; Correction, 88 FR 80273 (November
17, 2023).
2 See Memorandum, ‘‘Post-Preliminary Analysis
Memorandum for the Countervailing Duty
Investigation of Certain Paper Shopping Bags from
the People’s Republic of China,’’ dated December 7,
2023 (Post-Preliminary Analysis).
3 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Affirmative
Determination in the Countervailing Duty
Investigation of Certain Paper Shopping Bags from
the People’s Republic of China,’’ dated concurrently
with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
4 See Memorandum, ‘‘Less-Than-Fair-Value and
Countervailing Duty Investigations of Certain Paper
Shopping Bags from Cambodia, the People’s
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We received comments from interested
parties on the Preliminary Scope
Decision Memorandum, which we
addressed in the Final Scope Decision
Memorandum.5 We did not make any
changes to the scope of the investigation
from the scope published in the
Preliminary Determination, as noted in
Appendix I.
Verification
Commerce was unable to conduct onsite verification of the information
relied on in making its final
determination in this investigation.
However, in December 2023 and
January 2024, we took additional steps
in lieu of on-site verifications to verify
the information relied upon in making
this final determination, in accordance
with section 782(i) of the Act, by
conducting virtual verifications of the
mandatory respondents Fujian Nanwang
Environment Protection Scien-tech Co.,
Ltd. (Fujian Nanwang) and Dongzheng
Paperbag (DaLian) Factory (Dongzheng).
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by the
parties in this investigation are
discussed in the Issues and Decision
Memorandum. For a list of the issues
raised by interested parties and
addressed in the Issues and Decision
Memorandum, see Appendix II.
Methodology
Commerce conducted this
investigation in accordance with section
701 of the Tariff Act of 1930, as
amended (the Act). For each of the
subsidy programs found to be
countervailable, Commerce 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.6 For a
full description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
Republic of China, Colombia, India, Malaysia,
Portugal, Taiwan, the Republic of Turkey, and the
Socialist Republic of Vietnam: Preliminary Scope
Decision Memorandum,’’ dated December 27, 2023
(Preliminary Scope Decision Memorandum).
5 See Memorandum, ‘‘Less-Than-Fair-Value and
Countervailing Duty Investigations of Certain Paper
Shopping Bags from Cambodia, the People’s
Republic of China, Colombia, India, Malaysia,
Portugal, Taiwan, the Republic of Turkey, and the
Socialist Republic of Vietnam: Final Scope Decision
Memorandum,’’ dated March 11, 2024 (Final Scope
Decision Memorandum).
6 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; see also section
771(5)(E) of the Act regarding benefit; and section
771(5A) of the Act regarding specificity.
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Sfmt 4703
In making this final determination,
Commerce relied, in part, on facts
otherwise available, including with an
adverse inference, pursuant to sections
776(a) and (b) of the Act. For a full
discussion of our application of adverse
facts available (AFA), see the
Preliminary Determination PDM 7 and
the Issues and Decision Memorandum at
the section entitled ‘‘Uses of Facts
Available and Application of Adverse
Inferences.’’
Final Affirmative Determination of
Critical Circumstances
In the Preliminary Determination,
Commerce preliminary determined, in
accordance with sections 703(e)(1) and
(b) of the Act, and 19 CFR 351.206, that
critical circumstances exist with respect
to imports of subject merchandise for
Dongzheng, Fujian Nanwang, the nonresponsive companies,8 and all other
producers and/or exporters.9 For this
final determination, in accordance with
section 705(a)(2) of the Act as well as
our analysis of comments received
regarding our affirmative preliminary
determination of critical
circumstances,10 Commerce continues
to find that critical circumstances exist
with respect to imports of subject
merchandise for Dongzheng, Fujian
Nanwang, the non-responsive
companies, and all other producers and/
or exporters. For a full description of the
methodology and results of our critical
circumstances analysis, see the Issues
and Decision Memorandum.
Changes Since the Preliminary
Determination and Post-Preliminary
Analysis
Based on our review and analysis of
the information at verification and
comments received from interested
parties, we made changes to the subsidy
rate calculations for Fujian Nanwang.
For a discussion of these changes, see
the Issues and Decision Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of
the Act, Commerce will determine an
all-others rate equal to the weightedaverage countervailable subsidy rates
7 See
Preliminary Determination PDM at 7–28.
non-responsive companies are: (1) Bagitan
Packaging; (2) Changzhou Anjucheng; (3) Courage
Packaging; (4) Evertrust Packaging; (5) Geotegrity
EcoPack; (6) GrandIntelligent; (7) Li & Fung; (8)
Qingdao Chenyu Packaging Co., Ltd.; (9) Shanghai
Macolink Supply Chain Management Co., Ltd.; (10)
Shanghai Sanxi Paper Co., Ltd.; (11) Xiamen C&D
Pulp & Paper Co., Ltd.; (12) Xiamen Champion
FMCG; (13) Xiamen New Idea Packaging Co., Ltd.;
and (14) Xiamen Wonderful Bag Import and Export
Co., Ltd.
9 See Preliminary Determination PDM at 47–49.
10 See Issues and Decision Memorandum at
Comment 6.
8 The
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Federal Register / Vol. 89, No. 102 / Friday, May 24, 2024 / Notices
established for exporters and/or
producers individually investigation,
excluding any zero and de minimis
countervailable subsidy rates, and any
rates determined entirely under section
776 of the Act. We continue to calculate
individual estimated countervailable
subsidy rates for Fujian Nanwang and
Dongzheng that are not zero, de
minimis, or based entirely on facts
otherwise available. Therefore, we
calculated the all-others rate using a
simple average of the individual
estimated subsidy rates calculated for
Fujian Nanwang and Dongzheng.11
Final Determination
Commerce determines that the
following estimated countervailable
subsidy rate exist for the period January
1, 2022, through December 31, 2022: 12
Subsidy rate
(percent
ad valorem)
Company
Bagitan Packaging ...............................................................................................................................................................................
Changzhou Anjucheng ........................................................................................................................................................................
Courage Packaging .............................................................................................................................................................................
Dongzheng Paperbag (DaLian) Factory ..............................................................................................................................................
Evertrust Packaging .............................................................................................................................................................................
Fujian Nanwang Environment Protection Scien-tech Co., Ltd 12 ........................................................................................................
Geotegrity EcoPack .............................................................................................................................................................................
GrandIntelligent ....................................................................................................................................................................................
Li & Fung .............................................................................................................................................................................................
Qingdao Chenyu Packaging Co., Ltd ..................................................................................................................................................
Shanghai Macolink Supply Chain Management Co., Ltd ...................................................................................................................
Shanghai Sanxi Paper Co., Ltd ...........................................................................................................................................................
Xiamen C&D Pulp & Paper Co., Ltd ...................................................................................................................................................
Xiamen Champion FMCG ...................................................................................................................................................................
Xiamen New Idea Packaging Co., Ltd ................................................................................................................................................
Xiamen Wonderful Bag Import and Export Co., Ltd ...........................................................................................................................
All Others .............................................................................................................................................................................................
ddrumheller on DSK120RN23PROD with NOTICES1
Disclosure
Commerce intends to disclose to
interested parties the calculations and
analysis performed in this final
determination within five days of any
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).
Continuation of Suspension of
Liquidation
As a result of our Preliminary
Determination, pursuant to sections
703(d)(1)(B) and (d)(2) of the Act, and
because we preliminarily determined
that critical circumstances existed with
respect to Dongzheng, Fujian Nanwang,
the non-responsive companies, and all
other producers and/or exporters, we
instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation
of entries of subject merchandise from
China that were entered, or withdrawn
from warehouse, for consumption, on or
after August 8, 2023, which is 90 days
prior to the date of the publication of
the Preliminary Determination in the
Federal Register.13 In accordance with
section 703(d) of the Act, we instructed
CBP to discontinue the suspension of
liquidation of all entries of subject
merchandise entered or withdrawn from
11 See Memorandum, ‘‘Calculation of the All
Others Rate,’’ dated concurrently with this notice,
at 1.
12 As discussed in the Preliminary Determination,
Commerce has found the following companies to be
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17:40 May 23, 2024
Jkt 262001
warehouse, on or after March 5, 2024,
but to continue the suspension of
liquidation of all entries of subject
merchandise on or before March 4,
2024.
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
will issue a countervailing duty (CVD)
order, reinstate the suspension of
liquidation under section 706(a) of the
Act, and require a cash deposit of
estimated countervailing duties for
entries of subject merchandise in the
amounts indicated above. If the ITC
determines that material injury, or
threat of material injury, does not exist,
this proceeding will be terminated, and
all estimated duties deposited or
securities posted as a result of the
suspension of liquidation will be
refunded or cancelled.
ITC Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
final affirmative determination that
countervailable subsidies are being
provided to producers and exporters of
paper bags in China. Because the final
determination is affirmative, in
accordance with section 705(b) of the
Act, the ITC will make its final
cross-owned with Fujian Nanwang: Zhuhai
Zhongyue Paper Cup Container Co., Ltd.; Anhui
Nanwang Environmental Protection Technology
Co., Ltd.; Xianghe Nanwang Environmental
Protection Technology Co., Ltd.; and Hubei
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45831
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172.36
172.36
172.36
40.76
172.36
42.36
172.36
172.36
172.36
172.36
172.36
172.36
172.36
172.36
172.36
172.36
41.56
determination as to whether the
domestic industry in the United States
is materially injured, or threatened with
material injury, by reason of imports of
paper bags from China no later than 45
days after our final determination. In
addition, we are making available to the
ITC all non-privileged and
nonproprietary information related to
this investigation. We will allow the ITC
access to all privileged and business
proprietary information in our files,
provided the ITC confirms that it will
not disclose such information, either
publicly or under an administrative
protective order (APO), without the
written consent of the Assistant
Secretary for Enforcement and
Compliance. If the ITC determines that
material injury or threat of material
injury does not exist, this proceeding
will be terminated and all cash deposits
will be refunded. If the ITC determines
that such injury does exist, Commerce
will issue a CVD order directing CBP to
assess, upon further instruction by
Commerce, CVDs on all imports of the
subject merchandise that are entered, or
withdrawn, for consumption on or after
the effective date of the suspension of
liquidation, as discussed above in the
‘‘Continuation of Suspension of
Liquidation’’ section.
Nanwang Environmental Protection Technology
Co., Ltd.
13 See Preliminary Determination, 88 FR at 76180.
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Federal Register / Vol. 89, No. 102 / Friday, May 24, 2024 / Notices
Administrative Protective Order
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to an APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO, in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return/
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
position. The height of the bag is the distance
from the bottom fold edge to the top edge
(i.e., excluding the height of handles that
extend above the top edge). The depth of the
bag is the distance from the front of the bag
edge to the back of the bag edge (typically
measured at the bottom of the bag). The
width of the bag is measured from the left to
the right edges of the front and back panels
(upon which the handles typically are
located).
This merchandise is currently classifiable
under Harmonized Tariff Schedule of the
United States (HTSUS) subheadings
4819.30.0040 and 4819.40.0040. The HTSUS
subheadings are provided for convenience
and customs purposes only; the written
description of the scope is dispositive.
Notification to Interested Parties
This determination is issued and
published in accordance with sections
705(d) and 777(i) of the Act, and 19 CFR
351.210(c).
Appendix II
Dated: May 17, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and
Negotiations, performing the non-exclusive
functions and duties of the Assistant
Secretary for Enforcement and Compliance.
ddrumheller on DSK120RN23PROD with NOTICES1
Appendix I
Scope of the Investigation
The products within the scope of this
investigation are paper shopping bags with
handles of any type, regardless of whether
there is any printing, regardless of how the
top edges are finished (e.g., folded, serrated,
or otherwise finished), regardless of color,
and regardless of whether the top edges
contain adhesive or other material for sealing
closed. Subject paper shopping bags have a
width of at least 4.5 inches and depth of at
least 2.5 inches.
Paper shopping bags typically are made of
kraft paper but can be made from any type
of cellulose fiber, paperboard, or pressboard
with a basis weight less than 300 grams per
square meter (GSM).
A non-exhaustive illustrative list of the
types of handles on shopping bags covered
by the scope include handles made from any
materials such as twisted paper, flat paper,
yarn, ribbon, rope, string, or plastic, as well
as die-cut handles (whether the punchout is
fully removed or partially attached as a flap).
Excluded from the scope are:
• Paper sacks or bags that are of a 1⁄6 or 1⁄7
barrel size (i.e., 11.5–12.5 inches in width,
6.5–7.5 inches in depth, and 13.5–17.5
inches in height) with flat paper handles or
die-cut handles;
• Paper sacks or bags with die-cut handles,
a grams per square meter paper weight of less
than 86 GSM, and a height of less than 11.5
inches; and
• Paper sacks or bags (i) with non-paper
handles made wholly of woven ribbon or
other similar woven fabric20 and (ii) that are
finished with folded tops or for which tied
knots or t-bar aglets (made of wood, metal,
or plastic) are used to secure the handles to
the bags.
The above-referenced dimensions are
provided for paper bags in the opened
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17:40 May 23, 2024
Jkt 262001
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Final Critical Circumstances
Determination
V. Subsidies Valuation Information
VI. Interest Rates and Benchmarks
VII. Use of Facts Available and Adverse
Inferences
VIII. Analysis of Programs
IX. Discussion of the Issues
Comment 1: Whether Commerce Should
Apply Adverse Facts Available (AFA) to
the Export Buyer’s Credit Program
(EBCP)
Comment 2: Whether the Income Tax
Reductions for High and New
Technology Enterprises (HTNE) and
Income Tax Deductions for Research and
Development Expenses Under the
Enterprise Income Tax (EIT) Law Are
Specific
Comment 3: Whether To Apply AFA to
Find that the Provision of Kraft Paper for
Less Than Adequate Remuneration
(LTAR) is Specific and Provides a
Financial Contribution From the GOC
Comment 4: Whether Commerce Should
Apply AFA to Fujian Nanwang’s Kraft
Paper Purchases
Comment 5: Whether Commerce Should
Use Fujian Nanwang’s Total Sales as the
Denominator for the Provision of Kraft
Paper for LTAR
Comment 6: Whether Commerce Should
Reverse Its Preliminary Affirmative
Critical Circumstances Finding
Comment 7: Whether To Use Fujian
Nanwang’s Corrected Sales and
Electricity Usage Data
Comment 8: The Countervailability of the
Provision of Electricity for LTAR
Comment 9: Whether Policy Loans to the
Paper Bags Industry Constitute a
Financial Contribution and Are Specific
Comment 10: Whether To Apply AFA to
the Provision of Land-Use Rights for
LTAR in the Huidong Industrial Zone
Comment 11: Whether the Provision of
Land-Use Rights Should Be Treated as a
Financial Contribution in the Form of
Revenue Forgone
X. Recommendation
Appendix I: Other Subsidies Determined To
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Be Countervailable
Appendix II: Identification of Export-Specific
Subsidies
Appendix III: AFA Rate Calculation
[FR Doc. 2024–11478 Filed 5–23–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–583–872]
Certain Paper Shopping Bags From
Taiwan: Final Affirmative
Determination of Sales at Less Than
Fair Value and Final Affirmative
Determination of Critical
Circumstances, in Part
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) determines that
certain paper shopping bags (paper
bags) from Taiwan are being, or are
likely to be, sold in the United States at
less than fair value (LTFV). The period
of investigation is April 1, 2022, through
March 31, 2023.
DATES: Applicable May 24, 2024.
FOR FURTHER INFORMATION CONTACT:
Nathan James, AD/CVD Operations,
Office V, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–5305.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On January 3, 2024, Commerce
published in the Federal Register its
preliminary determination in the LTFV
investigation of paper bags from
Taiwan, in which we also postponed the
final determination until May 17, 2024.1
We invited interested parties to
comment on the Preliminary
Determination.2
A summary of the events that
occurred since Commerce published the
Preliminary Determination, as well as a
full discussion of the issues raised by
parties for this final determination, may
be found in the Issues and Decision
Memorandum.3 The Issues and Decision
1 See Certain Paper Shopping Bags from Taiwan:
Preliminary Affirmative Determination of Sales at
Less Than Fair Value, Preliminary Affirmative
Determination of Critical Circumstances,
Postponement of Final Determination, and
Extension of Provisional Measures, 89 FR 331
(January 3, 2023) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum.
2 See Preliminary Determination, 89 FR at 332–3.
3 See Memorandum, ‘‘Decision Memorandum for
the Final Affirmative Determination in the Less-
E:\FR\FM\24MYN1.SGM
24MYN1
]]>Agencies
[Federal Register Volume 89, Number 102 (Friday, May 24, 2024)]
[Notices]
[Pages 45829-45832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11478]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-153]
Certain Paper Shopping Bags From the People's Republic of China:
Final Affirmative Countervailing Duty Determination and Final
Affirmative Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers/exporters of
certain paper shopping bags (paper bags) from the People's Republic of
China (China). The period of investigation (POI) is January 1, 2022,
through December 31, 2022.
DATES: Applicable May 24, 2024.
FOR FURTHER INFORMATION CONTACT: Seth Brown, 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) 482-0029.
[[Page 45830]]
SUPPLEMENTARY INFORMATION:
Background
On November 6, 2023, Commerce published its Preliminary
Determination in the Federal Register and invited interested parties to
comment.\1\ Subsequently, on December 7, 2024, Commerce released its
Post-Preliminary Analysis.\2\ For a complete discussion of the events
that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\3\
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\1\ See Certain Paper Shopping Bags from the People's Republic
of China: Preliminary Affirmative Determination of Countervailable
Subsidies, Preliminary Affirmative Determination of Critical
Circumstances, and Alignment of Final Determination With Final
Antidumping Duty Determination, 88 FR 76180 (November 6, 2023)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM); see also Certain Paper Shopping Bags from the
People's Republic of China: Preliminary Affirmative Determination of
Countervailable Subsidies, Preliminary Affirmative Determination of
Critical Circumstances, and Alignment of Final Determination With
Final Antidumping Duty Determination; Correction, 88 FR 80273
(November 17, 2023).
\2\ See Memorandum, ``Post-Preliminary Analysis Memorandum for
the Countervailing Duty Investigation of Certain Paper Shopping Bags
from the People's Republic of China,'' dated December 7, 2023 (Post-
Preliminary Analysis).
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Countervailing Duty
Investigation of Certain Paper Shopping Bags from the People's
Republic of China,'' dated concurrently with, and hereby adopted by,
this notice (Issues and Decision Memorandum).
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The Issues and Decision Memorandum is a public document and is made
available to the public 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 Issues and Decision Memorandum can
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
Scope of the Investigation
The products covered by this investigation are paper bags from
China. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from interested parties. Commerce issued a Preliminary Scope
Decision Memorandum to address these comments and set aside a period of
time for parties to address scope issues in scope-specific case and
rebuttal briefs.\4\ We received comments from interested parties on the
Preliminary Scope Decision Memorandum, which we addressed in the Final
Scope Decision Memorandum.\5\ We did not make any changes to the scope
of the investigation from the scope published in the Preliminary
Determination, as noted in Appendix I.
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\4\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of Certain Paper Shopping Bags from Cambodia,
the People's Republic of China, Colombia, India, Malaysia, Portugal,
Taiwan, the Republic of Turkey, and the Socialist Republic of
Vietnam: Preliminary Scope Decision Memorandum,'' dated December 27,
2023 (Preliminary Scope Decision Memorandum).
\5\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of Certain Paper Shopping Bags from Cambodia,
the People's Republic of China, Colombia, India, Malaysia, Portugal,
Taiwan, the Republic of Turkey, and the Socialist Republic of
Vietnam: Final Scope Decision Memorandum,'' dated March 11, 2024
(Final Scope Decision Memorandum).
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Verification
Commerce was unable to conduct on-site verification of the
information relied on in making its final determination in this
investigation. However, in December 2023 and January 2024, we took
additional steps in lieu of on-site verifications to verify the
information relied upon in making this final determination, in
accordance with section 782(i) of the Act, by conducting virtual
verifications of the mandatory respondents Fujian Nanwang Environment
Protection Scien-tech Co., Ltd. (Fujian Nanwang) and Dongzheng Paperbag
(DaLian) Factory (Dongzheng).
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by the parties in this investigation are
discussed in the Issues and Decision Memorandum. For a list of the
issues raised by interested parties and addressed in the Issues and
Decision Memorandum, see Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found to be countervailable, Commerce 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.\6\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
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In making this final determination, Commerce relied, in part, on
facts otherwise available, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of adverse facts available (AFA), see the
Preliminary Determination PDM \7\ and the Issues and Decision
Memorandum at the section entitled ``Uses of Facts Available and
Application of Adverse Inferences.''
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\7\ See Preliminary Determination PDM at 7-28.
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Final Affirmative Determination of Critical Circumstances
In the Preliminary Determination, Commerce preliminary determined,
in accordance with sections 703(e)(1) and (b) of the Act, and 19 CFR
351.206, that critical circumstances exist with respect to imports of
subject merchandise for Dongzheng, Fujian Nanwang, the non-responsive
companies,\8\ and all other producers and/or exporters.\9\ For this
final determination, in accordance with section 705(a)(2) of the Act as
well as our analysis of comments received regarding our affirmative
preliminary determination of critical circumstances,\10\ Commerce
continues to find that critical circumstances exist with respect to
imports of subject merchandise for Dongzheng, Fujian Nanwang, the non-
responsive companies, and all other producers and/or exporters. For a
full description of the methodology and results of our critical
circumstances analysis, see the Issues and Decision Memorandum.
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\8\ The non-responsive companies are: (1) Bagitan Packaging; (2)
Changzhou Anjucheng; (3) Courage Packaging; (4) Evertrust Packaging;
(5) Geotegrity EcoPack; (6) GrandIntelligent; (7) Li & Fung; (8)
Qingdao Chenyu Packaging Co., Ltd.; (9) Shanghai Macolink Supply
Chain Management Co., Ltd.; (10) Shanghai Sanxi Paper Co., Ltd.;
(11) Xiamen C&D Pulp & Paper Co., Ltd.; (12) Xiamen Champion FMCG;
(13) Xiamen New Idea Packaging Co., Ltd.; and (14) Xiamen Wonderful
Bag Import and Export Co., Ltd.
\9\ See Preliminary Determination PDM at 47-49.
\10\ See Issues and Decision Memorandum at Comment 6.
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Changes Since the Preliminary Determination and Post-Preliminary
Analysis
Based on our review and analysis of the information at verification
and comments received from interested parties, we made changes to the
subsidy rate calculations for Fujian Nanwang. For a discussion of these
changes, see the Issues and Decision Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted-average
countervailable subsidy rates
[[Page 45831]]
established for exporters and/or producers individually investigation,
excluding any zero and de minimis countervailable subsidy rates, and
any rates determined entirely under section 776 of the Act. We continue
to calculate individual estimated countervailable subsidy rates for
Fujian Nanwang and Dongzheng that are not zero, de minimis, or based
entirely on facts otherwise available. Therefore, we calculated the
all-others rate using a simple average of the individual estimated
subsidy rates calculated for Fujian Nanwang and Dongzheng.\11\
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\11\ See Memorandum, ``Calculation of the All Others Rate,''
dated concurrently with this notice, at 1.
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Final Determination
Commerce determines that the following estimated countervailable
subsidy rate exist for the period January 1, 2022, through December 31,
2022: \12\
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\12\ As discussed in the Preliminary Determination, Commerce has
found the following companies to be cross-owned with Fujian Nanwang:
Zhuhai Zhongyue Paper Cup Container Co., Ltd.; Anhui Nanwang
Environmental Protection Technology Co., Ltd.; Xianghe Nanwang
Environmental Protection Technology Co., Ltd.; and Hubei Nanwang
Environmental Protection Technology Co., Ltd.
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Subsidy rate
Company (percent ad
valorem)
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Bagitan Packaging....................................... 172.36
Changzhou Anjucheng..................................... 172.36
Courage Packaging....................................... 172.36
Dongzheng Paperbag (DaLian) Factory..................... 40.76
Evertrust Packaging..................................... 172.36
Fujian Nanwang Environment Protection Scien-tech Co., 42.36
Ltd \12\...............................................
Geotegrity EcoPack...................................... 172.36
GrandIntelligent........................................ 172.36
Li & Fung............................................... 172.36
Qingdao Chenyu Packaging Co., Ltd....................... 172.36
Shanghai Macolink Supply Chain Management Co., Ltd...... 172.36
Shanghai Sanxi Paper Co., Ltd........................... 172.36
Xiamen C&D Pulp & Paper Co., Ltd........................ 172.36
Xiamen Champion FMCG.................................... 172.36
Xiamen New Idea Packaging Co., Ltd...................... 172.36
Xiamen Wonderful Bag Import and Export Co., Ltd......... 172.36
All Others.............................................. 41.56
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Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this final determination within five days of
any 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).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, pursuant to sections
703(d)(1)(B) and (d)(2) of the Act, and because we preliminarily
determined that critical circumstances existed with respect to
Dongzheng, Fujian Nanwang, the non-responsive companies, and all other
producers and/or exporters, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of entries of subject
merchandise from China that were entered, or withdrawn from warehouse,
for consumption, on or after August 8, 2023, which is 90 days prior to
the date of the publication of the Preliminary Determination in the
Federal Register.\13\ In accordance with section 703(d) of the Act, we
instructed CBP to discontinue the suspension of liquidation of all
entries of subject merchandise entered or withdrawn from warehouse, on
or after March 5, 2024, but to continue the suspension of liquidation
of all entries of subject merchandise on or before March 4, 2024.
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\13\ See Preliminary Determination, 88 FR at 76180.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
(CVD) order, reinstate the suspension of liquidation under section
706(a) of the Act, and require a cash deposit of estimated
countervailing duties for entries of subject merchandise in the amounts
indicated above. If the ITC determines that material injury, or threat
of material injury, does not exist, this proceeding will be terminated,
and all estimated duties deposited or securities posted as a result of
the suspension of liquidation will be refunded or cancelled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of paper bags
in China. Because the final determination is affirmative, in accordance
with section 705(b) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports of paper bags from China no later than 45 days after our final
determination. In addition, we are making available to the ITC all non-
privileged and nonproprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance. If
the ITC determines that material injury or threat of material injury
does not exist, this proceeding will be terminated and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, CVDs on all imports of the subject
merchandise that are entered, or withdrawn, for consumption on or after
the effective date of the suspension of liquidation, as discussed above
in the ``Continuation of Suspension of Liquidation'' section.
[[Page 45832]]
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: May 17, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products within the scope of this investigation are paper
shopping bags with handles of any type, regardless of whether there
is any printing, regardless of how the top edges are finished (e.g.,
folded, serrated, or otherwise finished), regardless of color, and
regardless of whether the top edges contain adhesive or other
material for sealing closed. Subject paper shopping bags have a
width of at least 4.5 inches and depth of at least 2.5 inches.
Paper shopping bags typically are made of kraft paper but can be
made from any type of cellulose fiber, paperboard, or pressboard
with a basis weight less than 300 grams per square meter (GSM).
A non-exhaustive illustrative list of the types of handles on
shopping bags covered by the scope include handles made from any
materials such as twisted paper, flat paper, yarn, ribbon, rope,
string, or plastic, as well as die-cut handles (whether the punchout
is fully removed or partially attached as a flap).
Excluded from the scope are:
Paper sacks or bags that are of a \1/6\ or \1/7\ barrel
size (i.e., 11.5-12.5 inches in width, 6.5-7.5 inches in depth, and
13.5-17.5 inches in height) with flat paper handles or die-cut
handles;
Paper sacks or bags with die-cut handles, a grams per
square meter paper weight of less than 86 GSM, and a height of less
than 11.5 inches; and
Paper sacks or bags (i) with non-paper handles made
wholly of woven ribbon or other similar woven fabric20 and (ii) that
are finished with folded tops or for which tied knots or t-bar
aglets (made of wood, metal, or plastic) are used to secure the
handles to the bags.
The above-referenced dimensions are provided for paper bags in
the opened position. The height of the bag is the distance from the
bottom fold edge to the top edge (i.e., excluding the height of
handles that extend above the top edge). The depth of the bag is the
distance from the front of the bag edge to the back of the bag edge
(typically measured at the bottom of the bag). The width of the bag
is measured from the left to the right edges of the front and back
panels (upon which the handles typically are located).
This merchandise is currently classifiable under Harmonized
Tariff Schedule of the United States (HTSUS) subheadings
4819.30.0040 and 4819.40.0040. The HTSUS subheadings are provided
for convenience and customs purposes only; the written description
of the scope is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Final Critical Circumstances Determination
V. Subsidies Valuation Information
VI. Interest Rates and Benchmarks
VII. Use of Facts Available and Adverse Inferences
VIII. Analysis of Programs
IX. Discussion of the Issues
Comment 1: Whether Commerce Should Apply Adverse Facts Available
(AFA) to the Export Buyer's Credit Program (EBCP)
Comment 2: Whether the Income Tax Reductions for High and New
Technology Enterprises (HTNE) and Income Tax Deductions for Research
and Development Expenses Under the Enterprise Income Tax (EIT) Law
Are Specific
Comment 3: Whether To Apply AFA to Find that the Provision of
Kraft Paper for Less Than Adequate Remuneration (LTAR) is Specific
and Provides a Financial Contribution From the GOC
Comment 4: Whether Commerce Should Apply AFA to Fujian Nanwang's
Kraft Paper Purchases
Comment 5: Whether Commerce Should Use Fujian Nanwang's Total
Sales as the Denominator for the Provision of Kraft Paper for LTAR
Comment 6: Whether Commerce Should Reverse Its Preliminary
Affirmative Critical Circumstances Finding
Comment 7: Whether To Use Fujian Nanwang's Corrected Sales and
Electricity Usage Data
Comment 8: The Countervailability of the Provision of
Electricity for LTAR
Comment 9: Whether Policy Loans to the Paper Bags Industry
Constitute a Financial Contribution and Are Specific
Comment 10: Whether To Apply AFA to the Provision of Land-Use
Rights for LTAR in the Huidong Industrial Zone
Comment 11: Whether the Provision of Land-Use Rights Should Be
Treated as a Financial Contribution in the Form of Revenue Forgone
X. Recommendation
Appendix I: Other Subsidies Determined To Be Countervailable
Appendix II: Identification of Export-Specific Subsidies
Appendix III: AFA Rate Calculation
[FR Doc. 2024-11478 Filed 5-23-24; 8:45 am]
BILLING CODE 3510-DS-P
