Thermoformed Molded Fiber Products From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination, 12123-12126 [2025-04093]
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12123
Notices
Federal Register
Vol. 90, No. 49
Friday, March 14, 2025
This section of the FEDERAL REGISTER
contains documents other than rules or
proposed rules that are applicable to the
public. Notices of hearings and investigations,
committee meetings, agency decisions and
rulings, delegations of authority, filing of
petitions and applications and agency
statements of organization and functions are
examples of documents appearing in this
section.
DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[B–14–2025]
SUPPLEMENTARY INFORMATION:
Foreign-Trade Zone (FTZ) 89,
Notification of Proposed Production
Activity; GPI Beauty, Inc.; (Plastic Tube
Sleeves); Las Vegas, Nevada
Background
Certification of Systems for
Processing and Collecting Tariffs on
Steel and Aluminum Articles Pursuant
to the President’s February 10, 2025
Proclamations
On February 10, 2025, the President
issued Proclamation 10895, ‘‘Adjusting
Imports of Aluminum into the United
States’’ (90 FR 9087) (Aluminum
Proclamation). Clause (9) of the
Aluminum Proclamation requires that I,
as Secretary of the United States
Department of Commerce, certify that
adequate systems are in place to fully,
efficiently, and expediently process and
collect tariff revenue for covered
aluminum articles outside of Chapter 76
of the Harmonized Tariff Schedule of
the United States (HTS). I so certify for
all aluminum articles and derivative
aluminum articles in Annex 1 to
Proclamation 10895 that are outside of
Chapter 76 of the HTS.
On February 10, 2025, the President
issued the Proclamation 10896,
‘‘Adjusting the Imports of Steel into the
United States’’ (90 FR 9817) (Steel
Proclamation). Clause (8) of the Steel
Proclamation requires that I, as
Secretary of the United States
Department of Commerce, certify that
adequate systems are in place to fully,
efficiently, and expediently process and
collect tariff revenue for covered steel
articles. I so certify for all steel articles
and derivative steel articles in Annex 1
to Proclamation 10896.
Bureau of Industry and
Security, Department of Commerce.
ACTION: Notice.
Howard W. Lutnick,
Secretary of the United States Department
of Commerce.
The Federal Register notice published
on March 10, 2025 (90 FR 11600)
regarding the notification of proposed
production activity for GPI Beauty, Inc.,
located in Las Vegas, Nevada, is
corrected as follows:
In the title and first sentence of the
notice, the city name should read ‘‘Las
Vegas.’’
For further information, contact
Christopher Wedderburn at
Chris.Wedderburn@trade.gov.
Dated: March 10, 2025.
Elizabeth Whiteman,
Executive Secretary.
[FR Doc. 2025–04091 Filed 3–13–25; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Docket No. 250311–0033]
XRIN: 0694–XC115
AGENCY:
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(Steel Proclamation), imposing specified
rates of duty on imports of aluminum
and steel, respectively (collectively, the
Proclamations). The Proclamations also
required the Secretary of Commerce to
certify that adequate systems are in
place to fully, efficiently, and
expediently process and collect tariff
revenue for covered articles. This notice
certifies that adequate systems are in
place to fully, efficiently, and
expediently process and collect tariff
revenue for covered articles for both
steel and aluminum.
On February 10, 2025, the
President issued Proclamations 10895
‘‘Adjusting Imports of Aluminum into
The United States’’ (Aluminum
Proclamation), and 10896 ‘‘Adjusting
Imports of Steel into the United States’’
SUMMARY:
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BILLING CODE 3510–33–P
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DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–183]
Thermoformed Molded Fiber Products
From the People’s Republic of China:
Preliminary Affirmative Countervailing
Duty Determination and Alignment of
Final Determination With Final
Antidumping Duty Determination
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
thermoformed molded fiber products
(molded fiber products) from the
People’s Republic of China (China). The
period of investigation is January 1,
2023, through December 31, 2023.
Interested parties are invited to
comment on this preliminary
determination.
AGENCY:
Applicable March 14, 2025.
FOR FURTHER INFORMATION CONTACT:
Allison Hollander or Ashley Cossaart,
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) 482–2805 or
(202) 482–0462, respectively.
SUPPLEMENTARY INFORMATION:
DATES:
Background
This preliminary determination is
issued in accordance with section
703(b) of the Tariff Act of 1930, as
amended (the Act). On November 4,
2024, Commerce published the notice of
initiation of this countervailing duty
(CVD) investigation.1 On December 19,
2024, Commerce postponed the
1 See Thermoformed Molded Fiber Products from
the People’s Republic of China and the Socialist
Republic of Vietnam: Initiation of Countervailing
Duty Investigations, 89 FR 87556 (November 4,
2024) (Initiation Notice); and Thermoformed
Molded Fiber Products from the People’s Republic
of China and the Socialist Republic of Vietnam:
Initiation of Countervailing Duty Investigations;
Correction, 89 FR 91321 (November 19, 2024)
(correcting a typographical error in the Harmonized
Tariff Schedule of the United States subheadings
listed in the scope).
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Federal Register / Vol. 90, No. 49 / Friday, March 14, 2025 / Notices
deadline for this preliminary
determination until March 7, 2025.2
For a complete description of the
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.
Scope of the Investigation
The products covered by this
investigation are molded fiber products
from China. For a complete description
of the scope of this investigation, see
Appendix I.
Scope Comments
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In accordance with the Preamble to
Commerce’s regulations,4 the Initiation
Notice set aside a period of time for
parties to raise issues regarding product
coverage (i.e., scope).5 Certain interested
parties commented on the scope of the
investigation as it appeared in the
Initiation Notice. Commerce intends to
issue its preliminary decision regarding
comments concerning the scope of the
less-than-fair-value (LTFV) and CVD
investigations in the preliminary
determination of the companion LTFV
investigations. We will incorporate the
scope decisions from the LTFV
investigations into the scope of the final
CVD determination for this investigation
after considering any relevant comments
submitted in scope case and rebuttal
briefs.6
2 See Thermoformed Molded Fiber Products from
the People’s Republic of China and the Socialist
Republic of Vietnam: Postponement of Preliminary
Determination in the Countervailing Duty
Investigations, 89 FR 103778 (December 19, 2024).
3 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Affirmative Determination of the
Countervailing Duty Investigation of Thermoformed
Molded Fiber Products from the People’s Republic
of China,’’ dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision
Memorandum).
4 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble).
5 See Initiation Notice, 89 FR at 65852.
6 The deadline for interested parties to submit
scope case and rebuttal briefs will be established in
the preliminary scope decision memorandum.
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Methodology
Commerce is conducting this
investigation in accordance with section
701 of the Act. For each of the subsidy
programs found countervailable,
Commerce preliminarily determines
that there is a subsidy, i.e., a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient,
and that the subsidy is specific.7 For a
full description of the methodology
underlying our preliminary
determination, see the Preliminary
Decision Memorandum.
Commerce notes that, in making these
findings, it relied, in part, on facts
available and, because it finds that one
or more respondents did not act to the
best of their ability to respond to
Commerce’s requests for information, it
drew an adverse inference where
appropriate in selecting from among the
facts otherwise available.8 For further
information, see the ‘‘Use of Facts
Otherwise Available and Adverse
Inferences’’ section in the Preliminary
Decision Memorandum.
Alignment
In accordance with section 705(a)(1)
of the Act and 19 CFR 351.210(b)(4),
Commerce is aligning the final
countervailing duty (CVD)
determination in this investigation with
the final determination in the
companion LTFV investigation of
molded fiber products from China based
on a request made by the petitioners.9
Consequently, the final CVD
determination will be issued on the
same date as the final LTFV
determination, which is currently
scheduled to be issued no later than July
21, 2025, unless postponed.
Rate for Non-Responsive Companies
One potential exporter and/or
producer of molded fiber products from
China did not respond to Commerce’s
quantity and value (Q&V) questionnaire
(i.e., the non-responsive company).10
We find that, by not responding to the
Q&V questionnaire, this company
withheld requested information and
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.
8 See sections 776(a) and (b) of the Act.
9 The petitioners are: Genera, Tellus Products,
LLC, and the United Steel, Paper and Forestry,
Rubber, Manufacturing, Energy, Allied Industrial
and Service Workers International Union, AFL–
CIO. See Petitioners’ Letter, ‘‘Petitioners’ Request
for Alignment of the Countervailing Duty
Investigations with the Concurrent Antidumping
Duty Investigations,’’ dated February 24, 2025.
10 The non-responsive company is Shaoneng
Group Guangdong Luzhou Paper Mould Packing
Products Co., Ltd.
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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 nonresponsive company on facts otherwise
available.
We further preliminarily determine
that an adverse inference is warranted,
pursuant to section 776(b) of the Act. By
failing to submit a response to
Commerce’s Q&V questionnaire, the
non-responsive company did not
cooperate to the best of their ability in
this investigation. For more information
on the application of AFA to the nonresponsive company, see ‘‘Use of Facts
Otherwise Available and Adverse
Inferences’’ in 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 zero and de
minimis rates and any rates based
entirely under section 776 of the Act.
In this investigation, Commerce
preliminarily calculated individual
estimated countervailable subsidy rates
for Guangxi Firstpak Environmental
Technology Co., Ltd. (Firstpak) and
Zhejiang Zhongxin Environmental
Protection Technology Group Co., Ltd.
(Zhejiang Zhongxin) that are not zero,
de minimis, or based entirely on the
facts otherwise available. Commerce
calculated the all-others rate using a
weighted-average of the individual
estimated subsidy rates calculated for
the examined respondents using each
company’s publicly-ranged values for
the merchandise under consideration.11
11 With two respondents under examination,
Commerce normally calculates: (A) a weightedaverage of the estimated subsidy rates calculated for
the examined respondents; (B) a simple average of
the estimated subsidy rates calculated for the
examined respondents; and (C) a weighted-average
of the estimated subsidy rates calculated for the
examined respondents using each company’s
publicly-ranged U.S. sale values for the
merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate
closest to (A) as the most appropriate rate for all
other producers and exporters. See, e.g., Ball
Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results
of Antidumping Duty Administrative Reviews, Final
Results of Changed-Circumstances Review, and
Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and
Decision Memorandum at Comment 1. As complete
publicly ranged sales data were available,
Commerce based the all-others rate on the publicly
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Federal Register / Vol. 90, No. 49 / Friday, March 14, 2025 / Notices
Preliminary Determination
Commerce preliminarily determines
that the following estimated
countervailable subsidy rates exist:
Company
Subsidy rate
(percent ad
valorem)
to require a cash deposit equal to the
rates indicated above.
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 will have the
6.99 opportunity to submit scope case and
rebuttal briefs on the preliminary
decision regarding the scope of the
5.99
LTFV and CVD investigations. The
deadlines to submit scope case and
rebuttal briefs will be provided in the
* 153.25 preliminary scope decision
6.38 memorandum. For all scope case and
rebuttal briefs, parties must file
* Rate is based on facts available with adidentical documents simultaneously on
verse inferences.
the records of the ongoing LTFV and
Disclosure
CVD molded fiber products
investigations. No new factual
Commerce intends to disclose its
information or business proprietary
calculations and analysis performed to
information may be included in either
interested parties in this preliminary
scope case or rebuttal briefs.
determination within five days of its
Case briefs or other written
public announcement, or if there is no
comments, excluding scope comments,
public announcement, within five days
may be submitted to the Assistant
of the date of publication of this notice
Secretary for Enforcement and
in the Federal Register, in accordance
Compliance no later than seven days
with 19 CFR 351.224(b).
after the date on which the last
Consistent with 19 CFR 351.224(e),
verification report is issued in this
Commerce will analyze and, if
investigation. Rebuttal briefs, limited to
appropriate, correct any timely
issues raised in the case briefs, may be
allegations of significant ministerial
filed not later than five days after the
errors by amending the preliminary
date for filing case briefs.13 Interested
determination. However, consistent
with 19 CFR 351.224(d), Commerce will parties who submit case briefs or
not consider incomplete allegations that rebuttal briefs in this proceeding must
do not address the significance standard submit: (1) a table of contents listing
each issue; and (2) a table of
under 19 CFR 351.224(g) following the
authorities.14
preliminary determination. Instead,
As provided under 19 CFR
Commerce will address such allegations
in the final determination together with 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged
issues raised in the case briefs or other
interested parties to provide an
written comments.
executive summary of their brief that
Suspension of Liquidation
should be limited to five pages total,
In accordance with sections
including footnotes. In this
703(d)(1)(B) and (d)(2) of the Act,
investigation, we instead request that
Commerce will direct U.S. Customs and interested parties provide at the
Border Protection (CBP) to suspend
beginning of their briefs a public,
liquidation of entries of subject
executive summary for each issue raised
merchandise as described in the scope
in their briefs.15 Further, we request that
of the investigation section entered, or
interested parties limit their executive
withdrawn from warehouse, for
summary of each issue to no more than
consumption on or after the date of
450 words, not including citations. We
publication of this notice in the Federal intend to use the executive summaries
Register. Further, pursuant to 19 CFR
as the basis of the comment summaries
351.205(d), Commerce will instruct CBP
Guangxi Firstpak Environmental Technology Co.,
Ltd .....................................
Zhejiang Zhongxin Environmental Protection Technology Group Co., Ltd 12 ...
Shaoneng Group
Guangdong Luzhou Paper
Mould Packing Products
Co., Ltd .............................
All Others ..............................
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13 See
ranged sales data of the mandatory respondents. For
a complete analysis of the data, see Memorandum,
‘‘Calculation of Subsidy Rate for All Others,’’ dated
concurrently with this notice.
12 Commerce preliminarily finds that Zhejiang
Zhongxin is cross-owned with Jinhua Zhongsheng
Fiber Products Co., Ltd.; Guangxi Huabao Fiber
Products Co., Ltd.; and Chongzuo Zhongxin
Environmental Protection Technology Co., Ltd.
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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).
14 See 19 CFR 351.309(c)(2) and (d)(2).
15 We use the term ‘‘issue’’ here to describe an
argument that Commerce would normally address
in a comment of the Issues and Decision
Memorandum.
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12125
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).16
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: (1) the
party’s name, address, and telephone
number; (2) the number of participants
and whether any participant is a foreign
national; and (3) a list of the issues to
be discussed. If a request for a hearing
is made, Commerce intends to hold the
hearing at a time and date to be
determined. Parties should confirm by
telephone the date, time, and location of
the hearing two days before the
scheduled date.
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
molded fiber products 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: March 7, 2025.
Christopher Abbott,
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 subject to this
investigation 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
16 See
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using one or more heated molds, and 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 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, antifungal, anti-bacterial,
heat/flame resistant, hydrophobic,
oleophobic, absorbent, or adsorbent.
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 this
investigation 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 this investigation
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 nonsubject merchandise,
only the thermoformed molded fiber
products are subject merchandise.
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 4823.70.0020
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and 4823.70.0040, HTSUS. Imports may also
be classified under subheadings 4823.61.20,
4823.61.40, 4823.69.20, 4823.69.40, HTSUS.
References to the HTSUS classification are
provided for convenience and customs
purposes, and the written description of the
merchandise under 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. Use of Facts Otherwise Available and
Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2025–04093 Filed 3–13–25; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–552–846]
Thermoformed Molded Fiber Products
From the Socialist Republic of
Vietnam: Preliminary Affirmative
Countervailing Duty Determination,
Preliminary Affirmative Critical
Circumstances Determination, and
Alignment of Final Determination With
Final Antidumping Duty Determination
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
thermoformed molded fiber products
(molded fiber products) from the
Socialist Republic of Vietnam (Vietnam)
during the period of investigation,
January 1, 2023, through December 31,
2023. Interested parties are invited to
comment on this preliminary
determination.
DATES: Applicable March 14, 2025.
FOR FURTHER INFORMATION CONTACT:
Thomas Martin, AD/CVD Operations,
Office IV, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–3936.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
This preliminary determination is
made in accordance with section 703(b)
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of the Tariff Act of 1930, as amended
(the Act). On November 4, 2024,
Commerce published the notice of
initiation of this countervailing duty
(CVD) investigation.1 On December 19,
2024, Commerce postponed the
deadline for this preliminary
determination until March 7, 2025.2
For a complete description of the
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.
Scope of the Investigation
The products covered by this
investigation are molded fiber products
from Vietnam. For a complete
description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the Preamble to
Commerce’s regulations,4 the Initiation
Notice set aside a period of time for
parties to raise issues regarding product
coverage (i.e., scope).5 Certain interested
parties commented on the scope of the
investigation as it appeared in the
Initiation Notice. Commerce intends to
issue its preliminary decision regarding
1 See Thermoformed Molded Fiber Products from
the People’s Republic of China and the Socialist
Republic of Vietnam: Initiation of Countervailing
Duty Investigations, 89 FR 87556 (November 4,
2024) (Initiation Notice); and Thermoformed
Molded Fiber Products from the People’s Republic
of China and the Socialist Republic of Vietnam:
Initiation of Countervailing Duty Investigations;
Correction, 89 FR 91321 (November 19, 2024)
(correcting a typographical error in the Harmonized
Tariff Schedule of the United States subheadings
listed in the scope).
2 See Thermoformed Molded Fiber Products from
the People’s Republic of China and the Socialist
Republic of Vietnam: Postponement of Preliminary
Determination in the Countervailing Duty
Investigations, 89 FR 103778 (December 19, 2024).
3 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Affirmative Determination of the
Countervailing Duty Investigation of Thermoformed
Molded Fiber Products from the Socialist Republic
of Vietnam,’’ dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision
Memorandum).
4 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble).
5 See Initiation Notice, 89 FR at 87556.
E:\FR\FM\14MRN1.SGM
14MRN1
]]>Agencies
[Federal Register Volume 90, Number 49 (Friday, March 14, 2025)]
[Notices]
[Pages 12123-12126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-04093]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-183]
Thermoformed Molded Fiber Products From the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of thermoformed molded fiber products (molded
fiber products) from the People's Republic of China (China). The period
of investigation is January 1, 2023, through December 31, 2023.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable March 14, 2025.
FOR FURTHER INFORMATION CONTACT: Allison Hollander or Ashley Cossaart,
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) 482-2805 or (202)
482-0462, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is issued in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On November 4,
2024, Commerce published the notice of initiation of this
countervailing duty (CVD) investigation.\1\ On December 19, 2024,
Commerce postponed the
[[Page 12124]]
deadline for this preliminary determination until March 7, 2025.\2\
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\1\ See Thermoformed Molded Fiber Products from the People's
Republic of China and the Socialist Republic of Vietnam: Initiation
of Countervailing Duty Investigations, 89 FR 87556 (November 4,
2024) (Initiation Notice); and Thermoformed Molded Fiber Products
from the People's Republic of China and the Socialist Republic of
Vietnam: Initiation of Countervailing Duty Investigations;
Correction, 89 FR 91321 (November 19, 2024) (correcting a
typographical error in the Harmonized Tariff Schedule of the United
States subheadings listed in the scope).
\2\ See Thermoformed Molded Fiber Products from the People's
Republic of China and the Socialist Republic of Vietnam:
Postponement of Preliminary Determination in the Countervailing Duty
Investigations, 89 FR 103778 (December 19, 2024).
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For a complete description of the 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 Thermoformed Molded Fiber Products 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 molded fiber
products from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the less-than-fair-
value (LTFV) and CVD investigations in the preliminary determination of
the companion LTFV investigations. We will incorporate the scope
decisions from the LTFV investigations into the scope of the final CVD
determination for this investigation after considering any relevant
comments submitted in scope case and rebuttal briefs.\6\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 89 FR at 65852.
\6\ The deadline for interested parties to submit scope case and
rebuttal briefs will be established in the preliminary scope
decision memorandum.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\7\ 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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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\8\
For further information, see 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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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final countervailing duty (CVD)
determination in this investigation with the final determination in the
companion LTFV investigation of molded fiber products from China based
on a request made by the petitioners.\9\ Consequently, the final CVD
determination will be issued on the same date as the final LTFV
determination, which is currently scheduled to be issued no later than
July 21, 2025, unless postponed.
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\9\ The petitioners are: Genera, Tellus Products, LLC, and the
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers International Union, AFL-CIO.
See Petitioners' Letter, ``Petitioners' Request for Alignment of the
Countervailing Duty Investigations with the Concurrent Antidumping
Duty Investigations,'' dated February 24, 2025.
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Rate for Non-Responsive Companies
One potential exporter and/or producer of molded fiber products
from China did not respond to Commerce's quantity and value (Q&V)
questionnaire (i.e., the non-responsive company).\10\ We find that, by
not responding to the Q&V questionnaire, this company 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 company on facts otherwise available.
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\10\ The non-responsive company is Shaoneng Group Guangdong
Luzhou Paper Mould Packing Products Co., Ltd.
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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
a response to Commerce's Q&V questionnaire, the non-responsive company
did not cooperate to the best of their ability in this investigation.
For more information on the application of AFA to the non-responsive
company, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in 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
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce preliminarily calculated individual
estimated countervailable subsidy rates for Guangxi Firstpak
Environmental Technology Co., Ltd. (Firstpak) and Zhejiang Zhongxin
Environmental Protection Technology Group Co., Ltd. (Zhejiang Zhongxin)
that are not zero, de minimis, or based entirely on the facts otherwise
available. Commerce calculated the all-others rate using a weighted-
average of the individual estimated subsidy rates calculated for the
examined respondents using each company's publicly-ranged values for
the merchandise under consideration.\11\
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\11\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see Memorandum, ``Calculation of Subsidy Rate for All Others,''
dated concurrently with this notice.
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[[Page 12125]]
Preliminary Determination
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\12\ Commerce preliminarily finds that Zhejiang Zhongxin is
cross-owned with Jinhua Zhongsheng Fiber Products Co., Ltd.; Guangxi
Huabao Fiber Products Co., Ltd.; and Chongzuo Zhongxin Environmental
Protection Technology Co., Ltd.
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Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Guangxi Firstpak Environmental Technology Co., Ltd...... 6.99
Zhejiang Zhongxin Environmental Protection Technology 5.99
Group Co., Ltd \12\....................................
Shaoneng Group Guangdong Luzhou Paper Mould Packing * 153.25
Products Co., Ltd......................................
All Others.............................................. 6.38
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* Rate is based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in 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 the Federal Register, in accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Suspension of Liquidation
In accordance with sections 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
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 will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the LTFV and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum. For all scope case and rebuttal briefs, parties
must file identical documents simultaneously on the records of the
ongoing LTFV and CVD molded fiber products 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, excluding scope comments,
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.\13\ 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.\14\
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\13\ 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).
\14\ 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.\15\
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).\16\
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\15\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\16\ 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: (1) the party's name, address, and telephone number;
(2) the number of participants and whether any participant is a foreign
national; and (3) a list of the issues to be discussed. If a request
for a hearing is made, Commerce intends to hold the hearing at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
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 molded
fiber products 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: March 7, 2025.
Christopher Abbott,
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 subject to this investigation 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
[[Page 12126]]
using one or more heated molds, and 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 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,
antifungal, anti-bacterial, heat/flame resistant, hydrophobic,
oleophobic, absorbent, or adsorbent. 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 this investigation 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 this investigation 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 nonsubject merchandise,
only the thermoformed molded fiber products are subject merchandise.
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 4823.70.0020 and 4823.70.0040, HTSUS. Imports may also
be classified under subheadings 4823.61.20, 4823.61.40, 4823.69.20,
4823.69.40, HTSUS. References to the HTSUS classification are
provided for convenience and customs purposes, and the written
description of the merchandise under 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. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2025-04093 Filed 3-13-25; 8:45 am]
BILLING CODE 3510-DS-P
