Certain Glass Wine Bottles From the People's Republic of China: Preliminary Affirmative Countervailing Duy Determination and Preliminary Affirmative Determination of Critical Circumstances, 47533-47536 [2024-12114]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 89, Number 107 (Monday, June 3, 2024)]
[Notices]
[Pages 47533-47536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12114]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-163]


Certain Glass Wine Bottles From the People's Republic of China: 
Preliminary Affirmative Countervailing Duy Determination and 
Preliminary Affirmative Determination of Critical Circumstances

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain glass wine bottles from the People's 
Republic of China (China). The period of investigation (POI) is January 
1, 2022, through December 31, 2022. Interested parties are invited to 
comment on this preliminary determination.

DATES: Applicable June 3, 2024.

FOR FURTHER INFORMATION CONTACT: Preston Cox or Theodora Mattei, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-5041 or (202) 482-4834, 
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 
published the notice of initiation of this countervailing duty (CVD) 
investigation on January 18, 2024.\1\ On March 8, 2024, Commerce 
postponed the preliminary determination until May 28, 2024.\2\
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    \1\ See Certain Glass Wine Bottles from the People's Republic of 
China: Initiation of Countervailing Duty Investigation, 89 FR 4905 
(January 18, 2024) (Initiation Notice).
    \2\ See Certain Glass Wine Bottles from the People's Republic of 
China: Postponement of Preliminary Determination in the 
Countervailing Duty Investigation, 89 FR 16723 (March 8, 2024).
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    For a complete description of events that followed 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://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination of the Countervailing Duty Investigation 
of Certain Glass Wine Bottles from the People's Republic of China,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are certain glass wine 
bottles from China. For a complete description of the scope of this 
investigation, see Appendix I.

[[Page 47534]]

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\ To date, numerous 
interested parties have commented on the scope of the antidumping duty 
(AD) and countervailing duty investigations as it appeared in the 
Initiation Notice. For a summary of the product coverage comments and 
rebuttal comments submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
received, see the Preliminary Scope Memorandum.\6\ We have 
preliminarily not made any changes to the scope language 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) (Preamble).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Less-than-Fair Value Investigations of 
Glass Wine Bottles from the People's Republic of China, Chile, and 
Mexico and Countervailing Duty Investigation of Glass Wine Bottles 
from the People's Republic of China: Preliminary Scope Decision 
Memorandum,'' dated concurrently with, and hereby adopted by, 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 to be 
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\ For a full description of the methodology underlying our 
preliminary determination, see the Preliminary Decision Memorandum.
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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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    Moreover, Commerce notes that, in making its findings of 
countervailability, it relied, in part, on facts available, and, 
because it finds that certain of the respondents and the Government of 
China failed to cooperate by not acting to the best of their abilities 
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 the ``Use of Facts Otherwise 
Available and Adverse Inferences'' section in the Preliminary Decision 
Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 703(e)(1) of the Act, we preliminarily 
find that critical circumstances exist with respect to imports of 
subject merchandise for Shandong Changyu Glass Co., Ltd. (Shandong 
Changyu), the non-responsive companies, and all other producers and/or 
exporters. For a full discussion of our preliminary critical 
circumstances determination, see the ``Critical Circumstances'' section 
of the Preliminary Decision Memorandum.

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 
rates that are zero, de minimis, or based entirely under section 776 of 
the Act.
    In this investigation, Commerce preliminarily calculated an 
individual estimated countervailable subsidy rate for Shandong Changyu, 
the only individually-examined exporter/producer in this investigation 
for which Commerce is calculating an estimated countervailable subsidy 
rate. Because the only individually calculated rate is not zero, de 
minimis, or based entirely on facts otherwise available, the estimated 
countervailable subsidy rate calculated for Shandong Changyu is the 
rate assigned to all other producers and exporters, pursuant to section 
705(c)(5)(A)(i) of the Act.

Rate for Non-Responsive Companies

    Eight potential exporters and/or producers of wine bottles from 
China did not respond to Commerce's quantity and value (Q&V) 
questionnaire (i.e., the non-responsive companies).\9\ We find that, by 
not responding to the Q&V questionnaire, these companies withheld 
requested information and significantly impeded this proceeding. Thus, 
in reaching our preliminary determination, pursuant to sections 
776(a)(2)(A) and (C) of the Act, we are basing the CVD subsidy rate for 
the non-responsive companies on facts otherwise available.
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    \9\ The companies that failed to respond to Commerce's quantity 
and value questionnaire are: (1) Bright Glassware, (2) Boliva 
International Ltd.; (3) Shandong Dingxin Electronic; (4) Wenden 
Wensheng Glass Co., Ltd.; (5) Wuixi Hua Zhong Glass Co. Ltd.; (6) 
Yamamura Glass Qinhuangdao; (7) Xiamen Jane Jonson Co. Ltd.; and (8) 
Zibo Regal Glass Products Co. Ltd. We refer to these companies, 
collectively, as the ``non-responsive companies.''
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    We further preliminarily determine that an adverse inference is 
warranted, pursuant to section 776(b) of the Act. By failing to submit 
responses to Commerce's Q&V Questionnaire, the non-responsive companies 
did not cooperate to the best of their ability in this investigation. 
Accordingly, we preliminarily find that an adverse inference is 
warranted to ensure that the non-responsive companies will not obtain a 
more favorable result than had they fully complied with our request for 
information. For more information on the application of adverse facts 
available to the non-responsive companies, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Determination 
Memorandum.

Preliminary Determination

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

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Shandong Changyu Glass Co., Ltd.........................           21.14
Boliva International Limited............................        * 202.70
Bright Glassware........................................        * 202.70
Shandong Dingxin Electronic.............................        * 202.70
Wenden Wensheng Glass Co., Ltd..........................        * 202.70
Wuixi Hua Zhong Glass Co. Ltd...........................        * 202.70
Xiamen Jane Jonson Co. Ltd..............................        * 202.70
Yamamura Glass Qinhuangdao..............................        * 202.70
Zibo Regal Glass Products Co. Ltd.......................        * 202.70
All Others..............................................           21.14
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* Rate based on adverse facts available.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this preliminary determination 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).

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

[[Page 47535]]

351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the rates indicated above.
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of: (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered; or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise produced and/or exported by for Shandong Changyu, the non-
responsive companies, and all other producers and/or exporters. In 
accordance with section 703(e)(2)(A) of the Act, the suspension of 
liquidation shall apply to unliquidated entries of merchandise from the 
exporters/producers identified in this paragraph that were entered, or 
withdrawn from warehouse, for consumption on or after the date which is 
90 days before the publication of this notice.

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    All interested parties are invited to comment on the preliminary 
scope decision made in this investigation, according to the schedule 
provided in the Preliminary Scope Decision Memorandum. The Preliminary 
Scope Decision Memorandum provides the schedule for parties to comment 
on the preliminary scope decision. For all scope case and rebuttal 
briefs, parties must file identical documents simultaneously on the 
records of the ongoing companion AD and CVD investigations. No new 
factual information or business proprietary information may be included 
in either scope case or rebuttal briefs.
    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance no 
later than seven days after the date on which the last verification 
report is issued in this investigation. Rebuttal briefs, limited to 
issues raised in the case briefs, may be filed not later than five days 
after the date for filing case briefs.\10\ Interested parties who 
submit case briefs or rebuttal briefs in this proceeding must submit: 
(1) a table of contents listing each issue; and (2) a table of 
authorities.\11\
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    \10\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \11\ See 19 CFR 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public, executive summary for each issue raised in their briefs. 
Further, we request that interested parties limit their executive 
summary of each issue to no more than 450 words, not including 
citations. We intend to use the executive summaries as the basis of the 
comment summaries included in the issues and decision memorandum that 
will accompany the final determination in this investigation. We 
request that interested parties include footnotes for relevant 
citations in the executive summary of each issue. Note that Commerce 
has amended certain of its requirements pertaining to the service of 
documents in 19 CFR 351.303(f).\12\
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    \12\ See APO and Service Final Rule.
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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 via ACCESS 
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, and a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing.\13\ Parties should confirm by 
telephone the date, time, and location of the hearing two days before 
the scheduled date.
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    \13\ See 19 CFR 351.310(d).
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U.S. International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its 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 imports of certain 
glass wine bottles from China are materially injuring, or threaten 
material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).

    Dated: May 28, 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 merchandise covered by the investigation is certain narrow 
neck glass bottles, with a nominal capacity of 740 milliliters 
(25.02 ounces) to 760 milliliters (25.70 ounces); a nominal total 
height between 24.8 centimeters (9.75 inches) to 35.6 centimeters 
(14 inches); a nominal base diameter between 4.6 centimeters (1.8 
inches) to 11.4 centimeters (4.5 inches); and a mouth with an outer 
diameter of between 25 millimeters (.98 inches) to 37.9 millimeters 
(1.5 inches); frequently referred to as a ``wine bottle.'' In scope 
merchandise may include but is not limited to the following shapes: 
Bordeaux (also known as ``Claret''), Burgundy, Hock, Champagne, 
Sparkling, Port, Provence, or Alsace (also known as ``Germanic''). 
In scope glass bottles generally have an approximately round base 
and have shapes including but not limited to, straight-sided, a 
tapered slope from shoulder (i.e., the sloping part of the bottle 
between the neck and the body) to base, or a long neck with sloping 
shoulders to a wider base. The scope includes glass bottles, whether 
or not clear, whether or not colored, with or without a punt (i.e., 
an indentation on the underside of the bottle), and with or without 
design or functional enhancements (including, but not limited to, 
embossing, labeling, or etching). In scope merchandise is made of 
non-``free blown'' glass, i.e., in scope merchandise is produced 
with the use of a mold and is distinguished by mold seams, joint 
marks, or parting lines. In scope merchandise is unfilled and may be 
imported with or without a closure, including a cork, stelvin (screw 
cap), crown cap, or wire cage and cork closure.
    Excluded from the scope of the investigation are: (1) glass 
containers made of borosilicate glass, meeting United States 
Pharmacopeia requirements for Type 1 pharmaceutical containers; and 
(2) glass containers without a ``finish'' (i.e., the section of a 
container at the opening including the lip and ring or collar, 
threaded or otherwise compatible with a type of closure, including 
but not limited to a cork, stelvin (screw cap), crown cap, or wire 
cage and cork closure).
    Glass bottles subject to the investigation are specified within 
the Harmonized Tariff Schedule of the United States (HTSUS) under 
subheading 7010.90.5019. The HTSUS subheading is provided for 
convenience and

[[Page 47536]]

customs purposes 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. Injury Test
IV. Analysis of China's Financial System
V. Diversification of China's Economy
VI. Critical Circumstances
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation

[FR Doc. 2024-12114 Filed 5-31-24; 8:45 am]
BILLING CODE 3510-DS-P