Thermoformed Molded Fiber Products From the People's Republic of China and the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value Investigations, 87551-87556 [2024-25562]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 89, Number 213 (Monday, November 4, 2024)]
[Notices]
[Pages 87551-87556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25562]



[[Page 87551]]

-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-182, A-552-845]


Thermoformed Molded Fiber Products From the People's Republic of 
China and the Socialist Republic of Vietnam: Initiation of Less-Than-
Fair-Value Investigations

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


DATES: Applicable October 28, 2024.

FOR FURTHER INFORMATION CONTACT: Rebecca Trainor or Dennis McClure at 
(202) 482-4007 or (202) 482-5973, respectively (the People's Republic 
of China (China)) and Thomas Martin at (202) 482-3936 (the Socialist 
Republic of Vietnam (Vietnam)), AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petitions

    On October 8, 2024, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) petitions concerning imports of 
thermoformed molded fiber products (molded fiber products) from China 
and Vietnam filed in proper form on behalf of Genera, Tellus Products, 
LLC, and the United Steel, Paper and Forestry, Rubber, Manufacturing, 
Energy, Allied Industrial and Service Workers International Union, AFL-
CIO (the USW), collectively, the American Molded Fiber Products 
Coalition (the petitioners), domestic producers of molded fiber 
products and a certified union, which represents workers engaged in the 
production of molded fiber products in the United States.\1\ The AD 
Petitions were accompanied by countervailing duty (CVD) petitions 
concerning imports of molded fiber products from China and Vietnam.\2\
---------------------------------------------------------------------------

    \1\ See Petitioners' Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties,'' dated October 8, 2024 
(Petitions).
    \2\ Id.
---------------------------------------------------------------------------

    Between October 11 and 22, 2024, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions in 
supplemental questionnaires.\3\ The petitioners responded to Commerce's 
supplemental questionnaires between October 16 and 24, 2024.\4\
---------------------------------------------------------------------------

    \3\ See Commerce's Letters, ``Supplemental Questions,'' dated 
October 11, 2024 (First General Issues Questionnaire); see also 
Country-Specific AD Supplemental Questionnaires: China Supplemental 
and Vietnam Supplemental, dated October 11, 2024; and Memorandum, 
``Phone Call,'' dated October 22, 2024 (October 22, 2024, 
Memorandum).
    \4\ See Petitioners' Letters, ``Responses to Antidumping and 
Countervailing Duty Petition Supplemental Questionnaire,'' dated 
October 16, 2024 (First General Issues Supplement); see also 
Country-Specific AD Supplemental Responses: China AD Supplement and 
Vietnam AD Supplement, dated October 16, 2024; and Petitioners' 
Letter, ``Responses to Second Supplemental Questionnaire,'' dated 
October 24, 2024 (Second General Issues Supplement).
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that imports of molded fiber 
products from China and Vietnam are being, or are likely to be, sold in 
the United States at less than fair value (LTFV) within the meaning of 
section 731 of the Act, and that imports of such products are 
materially injuring, or threatening material injury to, the molded 
fiber products industry in the United States. Consistent with section 
732(b)(1) of the Act, the Petitions were accompanied by information 
reasonably available to the petitioners supporting their allegations.
    Commerce finds that the petitioners filed the Petitions on behalf 
of the domestic industry, because the petitioners are interested 
parties, as defined in sections 771(9)(C) and (D) of the Act.\5\ 
Commerce also finds that the petitioners demonstrated sufficient 
industry support for the initiation of the requested LTFV 
investigations.\6\
---------------------------------------------------------------------------

    \5\ Genera and Tellus Products, LLC are interested parties under 
section 771(9)(C) of the Act, while the USW is an interested party 
under section 771(9)(D) of the Act.
    \6\ See section on ``Determination of Industry Support for the 
Petitions,'' infra.
---------------------------------------------------------------------------

Periods of Investigation

    Because the Petitions were filed on October 8, 2024, and because 
China and Vietnam are non-market economy (NME) countries, pursuant to 
19 CFR 351.204(b)(1), the periods of investigation (POI) for the China 
and Vietnam LTFV investigations are April 1, 2024, through September 
30, 2024.

Scope of the Investigations

    The products covered by these investigations are molded fiber 
products from China and Vietnam. For a full description of the scope of 
these investigations, see the appendix to this notice.

Comments on the Scope of the Investigations

    On October 11 and 22, 2024, Commerce requested information and 
clarification from the petitioners regarding the proposed scope to 
ensure that the scope language in the Petitions is an accurate 
reflection of the products for which the domestic industry is seeking 
relief.\7\ On October 16 and 24, 2024, the petitioners provided 
clarifications and revised the scope.\8\ The description of merchandise 
covered by these investigations, as described in the appendix to this 
notice, reflects these clarifications.
---------------------------------------------------------------------------

    \7\ See First General Issues Questionnaire; see also October 22, 
2024, Memorandum.
    \8\ See First General Issues Supplement at 2-4; see also Second 
General Issues Supplement at 1-4.
---------------------------------------------------------------------------

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\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 determinations. If scope comments include factual 
information,\10\ all such factual information should be limited to 
public information. To facilitate preparation of its questionnaires, 
Commerce requests that scope comments be submitted by 5:00 p.m. Eastern 
Time (ET) on November 18, 2024, which is the next business day after 20 
calendar days from the signature date of this notice.\11\ Any rebuttal 
comments, which may include factual information, and should also be 
limited to public information, must be filed by 5:00 p.m. ET on 
November 29, 2024, which is the next business day after 10 calendar 
days from the initial comment deadline.\12\
---------------------------------------------------------------------------

    \9\ See Antidumping Duties; Countervailing Duties, Final Rule, 
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'').
    \11\ See 19 CFR 351.303(b)(1). The deadline for scope comments 
falls on November 17, 2024, which is a Sunday. In accordance with 19 
CFR 351.303(b)(1), Commerce will accept comments filed by 5:00 p.m. 
ET on November 18, 2024 (``For both electronically filed and 
manually filed documents, if the applicable due date falls on a non-
business day, the Secretary will accept documents that are filed on 
the next business day.'').
    \12\ See 19 CFR 351.303(b)(1). The deadline for rebuttal scope 
comments falls on November 28, 2024, which is a Federal holiday. In 
accordance with 19 CFR 351.303(b)(1), Commerce will accept comments 
filed by 5:00 p.m. ET on November 29, 2024 (``For both 
electronically filed and manually filed documents, if the applicable 
due date falls on a non-business day, the Secretary will accept 
documents that are filed on the next business day.'').
---------------------------------------------------------------------------

    Commerce requests that any factual information that parties 
consider relevant to the scope of these investigations be submitted 
during that period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigations may be relevant, the party must contact Commerce and 
request

[[Page 87552]]

permission to submit the additional information. All scope comments 
must be filed simultaneously on the records of the concurrent LTFV 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.\13\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------

    \13\ 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.
---------------------------------------------------------------------------

Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of molded fiber products to 
be reported in response to Commerce's AD questionnaires. This 
information will be used to identify the key physical characteristics 
of the subject merchandise in order to report the relevant factors of 
production (FOP) accurately, as well as to develop appropriate product 
comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. In order to consider the suggestions of 
interested parties in developing and issuing the AD questionnaires, all 
product characteristics comments must be filed by 5:00 p.m. ET on 
November 18, 2024, which is the next business day after 20 calendar 
days from the signature date of this notice.\14\ Any rebuttal comments 
must be filed by 5:00 p.m. ET on November 29, 2024, which is the next 
business day after 10 calendar days from the initial comment 
deadline.\15\ All comments and submissions to Commerce must be filed 
electronically using ACCESS, as explained above, on the record of each 
of the LTFV investigations.
---------------------------------------------------------------------------

    \14\ See 19 CFR 351.303(b)(1). The deadline for comments on 
product characteristics falls on November 17, 2024, which is a 
Sunday. In accordance with 19 CFR 351.303(b)(1), Commerce will 
accept comments filed by 5:00 p.m. ET on November 18, 2024 (``For 
both electronically filed and manually filed documents, if the 
applicable due date falls on a non-business day, the Secretary will 
accept documents that are filed on the next business day.'').
    \15\ See 19 CFR 351.303(b)(1). The deadline for rebuttal product 
characteristics comments falls on November 28, 2024, which is a 
Federal holiday. In accordance with 19 CFR 351.303(b)(1), Commerce 
will accept comments filed by 5:00 p.m. ET on November 29, 2024 
(``For both electronically filed and manually filed documents, if 
the applicable due date falls on a non-business day, the Secretary 
will accept documents that are filed on the next business day.'').
---------------------------------------------------------------------------

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The 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 apply the same statutory definition regarding the domestic like 
product,\16\ 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.\17\
---------------------------------------------------------------------------

    \16\ See section 771(10) of the Act.
    \17\ 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 Algoma Steel Corp., Ltd. v. United 
States, 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioners do not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\18\ Based on our analysis of the information 
submitted on the record, we have determined that molded fiber products, 
as defined in the scope, constitute a single domestic like product, and 
we have analyzed industry support in terms of that domestic like 
product.\19\
---------------------------------------------------------------------------

    \18\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Checklists, ``Antidumping Duty Investigation Initiation 
Checklists: Thermoformed Molded Fiber Products from the People's 
Republic of China and the Socialist Republic of Vietnam,'' dated 
concurrently with, and hereby adopted by, this notice (Country-
Specific AD Initiation Checklists), at Attachment II, Analysis of 
Industry Support for the Antidumping and Countervailing Duty 
Petitions Covering Thermoformed Molded Fiber Products from the 
People's Republic of China and the Socialist Republic of Vietnam 
(Attachment II). These checklists are on file electronically via 
ACCESS.
    \19\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
---------------------------------------------------------------------------

    In determining whether the petitioners have standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the appendix to 
this notice. To establish industry support, the petitioners provided 
the 2023 total production of the domestic like product for the U.S. 
producers and workers that support the Petitions and compared this to 
the estimated total U.S. production of the domestic like product for 
the entire U.S. molded fiber products industry.\20\ We relied on data 
provided by the petitioners for purposes of measuring industry 
support.\21\
---------------------------------------------------------------------------

    \20\ Id.
    \21\ For further discussion, see Attachment II of the Country-
Specific AD Initiation Checklists.
---------------------------------------------------------------------------

    On October 21, 2024, we received timely filed comments on industry 
support from Eco-Products, PBC, a U.S. importer of molded fiber 
products.\22\ On

[[Page 87553]]

October 23, 2024, the petitioners responded to the comments from Eco-
Products, PBC in a timely filed rebuttal submission.\23\
---------------------------------------------------------------------------

    \22\ See Eco-Products' Letter, ``Comments on Domestic Industry 
Support,'' dated October 21, 2024.
    \23\ See Petitioners' Letter, ``Rebuttal Comments on Domestic 
Industry Support,'' dated October 23, 2024 (Petitioners' Rebuttal).
---------------------------------------------------------------------------

    Our review of the data provided in the Petitions, the First General 
Issues Supplement, Petitioners' Rebuttal, the Second General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioners have established industry support for 
the Petitions.\24\ First, the Petitions 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).\25\ Second, the domestic producers 
(or workers) have met the statutory criteria for industry support under 
section 732(c)(4)(A)(i) of the Act because the domestic producers (or 
workers) who support the Petitions account for at least 25 percent of 
the total production of the domestic like product.\26\ Finally, the 
domestic producers (or workers) have met the statutory criteria for 
industry support under section 732(c)(4)(A)(ii) of the Act because the 
domestic producers (or workers) who support the Petitions account for 
more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the Petitions.\27\ Accordingly, Commerce determines that 
the Petitions were filed on behalf of the domestic industry within the 
meaning of section 732(b)(1) of the Act.\28\
---------------------------------------------------------------------------

    \24\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \25\ Id.; see also section 732(c)(4)(D) of the Act.
    \26\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \27\ Id.
    \28\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Injury and Causation

    The petitioners allege that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioners allege that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\29\
---------------------------------------------------------------------------

    \29\ For further information regarding negligibility and the 
injury allegation, see Country-Specific AD Initiation Checklists at 
Attachment III, Analysis of Allegations and Evidence of Material 
Injury and Causation for the Antidumping and Countervailing Duty 
Petitions Covering Thermoformed Molded Fiber Products from the 
People's Republic of China and the Socialist Republic of Vietnam 
(Attachment III).
---------------------------------------------------------------------------

    The petitioners contend that the industry's injured condition is 
illustrated by the significant and increasing volume and market share 
of subject imports; underselling and price depression and/or 
suppression; lost sales and revenues; and adverse impact on the 
domestic industry's production, capacity utilization, employment 
variables, and financial performance.\30\ We assessed the allegations 
and supporting evidence regarding material injury, threat of material 
injury, causation, cumulation, as well as negligibility, and we have 
determined that these allegations are properly supported by adequate 
evidence and meet the statutory requirements for initiation.\31\
---------------------------------------------------------------------------

    \30\ Id.
    \31\ Id.
---------------------------------------------------------------------------

Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate LTFV investigations 
of imports of molded fiber products from China and Vietnam. The sources 
of data for the deductions and adjustments relating to U.S. price and 
normal value (NV) are discussed in greater detail in the Country-
Specific AD Initiation Checklists.

U.S. Price

    For China, the petitioners based export price (EP) on a price quote 
for molded fiber products produced in and exported from China and sold 
or offered for sale in the U.S. market during the POI.\32\ For Vietnam, 
the petitioners based EP on transaction-specific average unit values 
(AUVs) (i.e., month- and port-specific AUVs) derived from official 
import statistics and tied to ship manifest data.\33\ For each country, 
the petitioner made certain adjustments to U.S. price to calculate a 
net ex-factory U.S. price, where applicable.\34\
---------------------------------------------------------------------------

    \32\ See China AD Initiation Checklist.
    \33\ See Vietnam AD Initiation Checklist.
    \34\ See Country-Specific AD Initiation Checklists.
---------------------------------------------------------------------------

Normal Value

    Commerce considers China and Vietnam to be NME countries.\35\ In 
accordance with section 771(18)(C)(i) of the Act, any determination 
that a foreign country is an NME country shall remain in effect until 
revoked by Commerce. Therefore, we continue to treat China and Vietnam 
as NME countries for purposes of the initiation of the China and 
Vietnam LTFV investigations. Accordingly, we base NV on FOPs valued in 
a surrogate market economy country in accordance with section 773(c) of 
the Act.
---------------------------------------------------------------------------

    \35\ See, e.g., Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value and Preliminary 
Affirmative Determination of Critical Circumstances, 88 FR 15372 
(March 13, 2023), and accompanying Preliminary Decision Memorandum 
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Final Affirmative Determination 
of Sales at Less-Than-Fair Value and Final Affirmative Determination 
of Critical Circumstances, 88 FR 34485 (May 30, 2023); see also, 
e.g., Raw Honey from the Socialist Republic of Vietnam: Final 
Results of Antidumping Duty Changed Circumstances Review, 89 FR 
64411 (August 7, 2024), and accompanying NME Analysis Memorandum at 
5.
---------------------------------------------------------------------------

    The petitioners claim that Malaysia is an appropriate surrogate 
country for China because it is a market economy that is at a level of 
economic development comparable to that of China and is a significant 
producer of comparable merchandise.\36\ The petitioners provided 
publicly available information from Malaysia to value all FOPs except 
labor.\37\ Consistent with Commerce's recent practice in cases 
involving Malaysia as a surrogate country,\38\ to value labor, the 
petitioners provided data from another surrogate country, the Republic 
of T[uuml]rkiye (T[uuml]rkiye).\39\ Based on the information provided 
by the petitioners, we believe it is appropriate to use Malaysia as a 
surrogate country for China to value all FOPs except labor and 
T[uuml]rkiye to value labor for initiation purposes.
---------------------------------------------------------------------------

    \36\ See China AD Initiation Checklist.
    \37\ Id.
    \38\ See, e.g., Certain Collated Steel Staples from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review; and Final Determination of No Shipments; 2021-2022, 88 FR 
85242 (December 7, 2023), and accompanying Issues and Decision 
Memorandum (IDM) at Comment 2; and Light-Walled Rectangular Pipe and 
Tube from the People's Republic of China: Final Results of 
Antidumping Duty Administrative Review, 88 FR 15671 (March 14, 
2023), and accompanying IDM at Comment 2.
    \39\ See China AD Initiation Checklist.
---------------------------------------------------------------------------

    The petitioners claim that Indonesia is an appropriate surrogate 
country for Vietnam because it is a market economy that is at a level 
of economic development comparable to that of Vietnam and is a 
significant producer of comparable merchandise.\40\ The petitioners 
provided publicly available information from Indonesia to value all 
FOPs.\41\ Based on the information provided by the petitioners, we 
believe it is appropriate to use Indonesia as a surrogate country for 
Vietnam to value all FOPs for initiation purposes.
---------------------------------------------------------------------------

    \40\ See Vietnam AD Initiation Checklist.
    \41\ Id.

---------------------------------------------------------------------------

[[Page 87554]]

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

Factors of Production

    Because information regarding the volume of inputs consumed by 
Chinese and Vietnamese producers/exporters was not reasonably 
available, the petitioners used the production experience and product-
specific consumption rates of a U.S. producer of molded fiber products 
as a surrogate to value Chinese and Vietnamese manufacturers' FOPs.\42\ 
Additionally, the petitioners calculated factory overhead, selling, 
general, and administrative expenses, and profit based on the 
experience of Malaysian and Indonesian producers of comparable 
merchandise for China and Vietnam, respectively.\43\
---------------------------------------------------------------------------

    \42\ See Country-Specific AD Initiation Checklists.
    \43\ Id.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the petitioners, there is reason to 
believe that imports of molded fiber products from China and Vietnam 
are being, or are likely to be, sold in the United States at LTFV. 
Based on comparisons of EP to NV in accordance with sections 772 and 
773 of the Act, the estimated dumping margins for molded fiber products 
for each of the countries covered by this initiation are as follows: 
(1) China--477.97 percent; and (2) Vietnam--231.73 to 260.56 
percent.\44\
---------------------------------------------------------------------------

    \44\ Id.
---------------------------------------------------------------------------

Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating LTFV investigations to determine 
whether imports of molded fiber products from China and Vietnam are 
being, or are likely to be, sold in the United States at LTFV. In 
accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determinations no later than 140 days after the date of these 
initiations.

Respondent Selection

    In the Petitions, the petitioners identified 63 companies in China 
and eight companies in Vietnam as producers and/or exporters of molded 
fiber products.\45\ Our standard practice for respondent selection in 
AD investigations involving NME countries is to select respondents 
based on quantity and value (Q&V) questionnaires in cases where 
Commerce has determined that the number of companies is large, and it 
cannot individually examine each company based upon its resources. 
Therefore, considering the number of producers and/or exporters 
identified in the Petitions, Commerce will solicit Q&V information that 
can serve as a basis for selecting exporters for individual examination 
in the event that Commerce determines that the number is large and 
decides to limit the number of respondents individually examined 
pursuant to section 777A(c)(2) of the Act. Because there are 63 Chinese 
producers and/or exporters identified in the Petitions, Commerce has 
determined that it will issue Q&V questionnaires to the largest 
producers and/or exporters in China that are identified in the U.S. 
Customs and Border Protection POI entry data for which there is 
complete address information on the record.\46\ For Vietnam, because 
there are eight producers and/or exporters identified in the Petitions 
Commerce will issue a Q&V questionnaire to each potential respondent in 
Vietnam for which there is complete address information on the record.
---------------------------------------------------------------------------

    \45\ See Petitions at Volume I (page 15 and Exhibit I-15).
    \46\ See Memorandum, ``Release of U.S. Customs and Border 
Protection Entry Data,'' dated October 25, 2024.
---------------------------------------------------------------------------

    Commerce will post the Q&V questionnaires along with filing 
instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of molded fiber products from 
China and Vietnam that do not receive Q&V questionnaires may still 
submit a response to the Q&V questionnaire and can obtain a copy of the 
Q&V questionnaire from Commerce's website. Responses to the Q&V 
questionnaire must be submitted by the relevant Chinese and Vietnamese 
producers/exporters no later than 5:00 p.m. ET on November 12, 2024, 
which is the next business day after two weeks from the signature date 
of this notice.\47\ All Q&V questionnaire responses must be filed 
electronically via ACCESS. An electronically filed document must be 
received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above.
---------------------------------------------------------------------------

    \47\ See 19 CFR 351.303(b)(1). The deadline for Q&V 
questionnaire responses falls on November 11, 2024, which is a 
Federal holiday. In accordance with 19 CFR 351.303(b)(1), Commerce 
will accept responses to the Q&V questionnaire filed by 5:00 p.m. ET 
on November 12, 2024 (``For both electronically filed and manually 
filed documents, if the applicable due date falls on a non-business 
day, the Secretary will accept documents that are filed on the next 
business day.'').
---------------------------------------------------------------------------

    Interested parties must submit applications for disclosure under 
administrative protective order (APO) in accordance with 19 CFR 
351.305(b). As stated above, instructions for filing such applications 
may be found on Commerce's website at https://www.trade.gov/administrative-protective-orders.

Separate Rates

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

Use of Combination Rates

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

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that {Commerce{time}  will now 
assign in its NME investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the {weighted 
average{time}  of the individually calculated rates. This practice 
is

[[Page 87555]]

referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\48\
---------------------------------------------------------------------------

    \48\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigation involving NME Countries,'' (April 
5, 2005) at 6 (emphasis added), available on Commerce's website at 
https://access.trade.gov/Resources/policy/bull05-1.pdf.
---------------------------------------------------------------------------

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the governments of China and Vietnam via ACCESS. To the 
extent practicable, we will attempt to provide a copy of the public 
version of the Petitions to each exporter named in the Petitions, as 
provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of our initiation, as required by 
section 732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of molded fiber products from China and/or 
Vietnam are materially injuring, or threatening material injury to, a 
U.S. industry.\49\ A negative ITC determination for any country will 
result in the investigation being terminated with respect to that 
country.\50\ Otherwise, these LTFV investigations will proceed 
according to statutory and regulatory time limits.
---------------------------------------------------------------------------

    \49\ See section 733(a) of the Act.
    \50\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). 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 \51\ 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.\52\ 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 these investigations.
---------------------------------------------------------------------------

    \51\ See 19 CFR 351.301(b).
    \52\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

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, or as otherwise specified by 
Commerce.\53\ 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, we 
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, standalone 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 
submitting factual information in these investigations.\54\
---------------------------------------------------------------------------

    \53\ 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.
    \54\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
---------------------------------------------------------------------------

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\55\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\56\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \55\ See section 782(b) of the Act.
    \56\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional 
information regarding the Final Rule is available at https://access.trade.gov/Resources/filing/.
---------------------------------------------------------------------------

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 these investigations should ensure that they meet the requirements 
of 19 CFR 351.103(d) (e.g., by filing the required letter of 
appearance). Note that Commerce has amended certain of its requirements 
pertaining to the service of documents in 19 CFR 351.303(f).\57\
---------------------------------------------------------------------------

    \57\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 
67069 (September 29, 2023).
---------------------------------------------------------------------------

    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: October 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

Scope of the Investigations

    The merchandise subject to these investigations consists of 
thermoformed molded fiber products regardless of shape, form, 
function, fiber source, or finish. Thermoformed molded fiber 
products are formed with cellulose fibers, thermoformed using one or 
more heated molds, and dried/cured in the mold.
    Thermoformed molded fiber products include, but are not limited 
to, plates, bowls, clamshells, trays, lids, food or foodservice 
contact packaging, and consumer or other product packaging.
    Thermoformed molded fiber products are relatively dense, with a 
typical fiber density above 0.5 grams per cubic centimeter, and are 
generally characterized by relatively smooth surfaces. They may be 
derived from any virgin or recycled cellulose fiber source 
(including, but not limited to, those sourced from wood, woody 
crops, agricultural crops/byproducts/residue, and agricultural/
industrial/other waste). They may have any weight, shape, 
dimensionality, design, or size, and may be bleached, unbleached, 
dyed, colored, or printed. They may include ingredients, additives, 
or chemistries to enhance functionality including, but not limited 
to, anti-microbial, anti-fungal, anti-bacterial, heat/flame 
resistant, hydrophobic, oleophobic, absorbent, or adsorbent.

[[Page 87556]]

Thermoformed molded fiber products may also be subject to other 
processing or treatments, including, but not limited to, hot or 
after pressing, die-cutting, punching, trimming, padding, 
perforating, printing, labeling, dying, coloring, coating, 
laminating, embossing, debossing, repacking, or denesting. 
Thermoformed molded fiber products subject to these investigations 
may also have additional design features, including, but not limited 
to, tab closures, venting, channeling, or stiffening.
    Thermoformed molded fiber products remain covered by the scope 
of these investigations whether the subject product is encased by 
exterior packaging or whether the subject product forms the outer 
packaging for non-subject products. They also remain covered by the 
scope of these investigations whether imported alone, or in any 
combination of subject and non-subject merchandise (e.g., a lid or 
cover of any type packaged with a molded fiber bowl, addition of any 
items to make the thermoformed molded fiber packaging suitable for 
end-use such as absorbent pads). When thermoformed molded fiber 
products are imported in combination with non-subject merchandise, 
only the thermoformed molded fiber products are subject merchandise.
    Excluded from the scope of these investigations are thermoformed 
molded fiber products imported as packaging material that enclose 
and/or surround non-subject merchandise prepackaged for final sale 
upon importation into the United States (e.g., molded fiber 
packaging surrounding a cellular phone).
    Thermoformed molded fiber products include thermoformed molded 
fiber products matching the above description that have been 
finished, packaged, or otherwise processed in a third country by 
performing finishing, packaging, or processing that would not 
otherwise remove the merchandise from the scope of the 
investigations if performed in the country of manufacture of the 
thermoformed molded fiber products. Examples of finishing, 
packaging, or other processing in a third country that would not 
otherwise remove the merchandise from the scope of the 
investigations if performed in the country of manufacture of the 
thermoformed molded fiber products include, but are not limited to, 
hot or after pressing, die-cutting, punching, trimming, padding, 
perforating, printing, labeling, dying, coloring, coating, 
laminating, embossing, debossing, repacking, or denesting.
    Thermoformed molded fiber products are classified under 
subheadings 7823.70.0020 and 4823.70.0040, Harmonized Tariff 
Schedule of the United States (HTSUS). Imports may also be 
classified under subheadings 4823.61.0020, 4823.61.0040, 
4823.69.0020, 4823.69.0040, 4823.90.1000, HTSUS. References to the 
HTSUS classification are provided for convenience and customs 
purposes, and the written description of the merchandise under 
investigation is dispositive.

[FR Doc. 2024-25562 Filed 11-1-24; 8:45 am]
BILLING CODE 3510-DS-P