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, 12126-12129 [2025-04094]

Download as PDF lotter on DSK11XQN23PROD with NOTICES1 12126 Federal Register / Vol. 90, No. 49 / Friday, March 14, 2025 / Notices 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 VerDate Sep<11>2014 16:09 Mar 13, 2025 Jkt 265001 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) PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 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 Federal Register / Vol. 90, No. 49 / Friday, March 14, 2025 / Notices 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 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 certain 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. lotter on DSK11XQN23PROD with NOTICES1 Preliminary Affirmative Determination of Critical Circumstances In accordance with section 703(e)(1) of the Act, Commerce preliminarily determines that critical circumstances exist with respect to imports of subject merchandise from the mandatory respondent Vietnam Yuzhan Packaging Technology Co. Ltd. (Yuzhan), as well as HC Packaging Asia (Industrial Park), Honha Eco Pulp Viet Nam Paper Tray, and Pulp Tray, Martin Vietnam Co. Ltd., which have been assigned a rate based on total adverse facts available (AFA), and also with respect to all other producers and exporters that enter subject merchandise under the allothers subsidy rate. For a full description of the methodology and results of Commerce’s analysis, see 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 CVD determination in this investigation with the final determination in the companion LTFV investigation of molded fiber products from Vietnam, based on a request made by the petitioner.9 Consequently, this final CVD determination will be issued on the same date as the final determination for the LTFV investigation, which is currently scheduled to be issued no later than July 21, 2025, unless postponed. Rate for Non-Responsive Companies Three potential exporters and/or producers of molded fiber products from Vietnam did not respond to Commerce’s quantity and value (Q&V) questionnaire (i.e., the non-responsive companies).10 We find that, by not responding to the Q&V questionnaire, these companies withheld requested information and significantly impeded this proceeding. Thus, in reaching our preliminary determination, pursuant to sections 776(a)(2)(A) and (C) of the Act, we are basing the CVD subsidy rate for the non-responsive companies on facts otherwise available. We further preliminarily determine that an adverse inference is warranted, pursuant to section 776(b) of the Act. By failing to submit responses to Commerce’s Q&V questionnaire, the non-responsive companies did not cooperate to the best of their ability in this investigation. For more information on the application of AFA to the nonresponsive companies, 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 rates that are zero, de minimis, or based entirely under section 776 of the Act. If the rates 9 The 6 The deadline for interested parties to submit scope case and rebuttal briefs will be established in the preliminary scope decision memorandum. 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. VerDate Sep<11>2014 16:09 Mar 13, 2025 Jkt 265001 petitioner is the American Molded Fiber Coalition. See Petitioner’s Letter, ‘‘Petitioners’ Request for Alignment of the Countervailing Duty Investigations with the Concurrent Antidumping Duty Investigations,’’ dated February 24, 2025. 10 The non-responsive companies are: (1) HC Packaging Asia (Industrial Park); (2) Honha Eco Pulp Viet Nam Paper Tray; and (3) Pulp Tray, Martin Vietnam Co. Ltd. PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 12127 established for all exporters and producers individually investigated are zero, de minimis, or determined entirely under facts available, Commerce may use any reasonable method to establish an all-others rate.11 Commerce calculated an individual estimated countervailable subsidy rate for Yuzhan, the only individually examined exporter/producer in this investigation. Because the only individually calculated rate is not zero, de minimis, or based entirely on facts otherwise available, the estimated weighted-average rate calculated for Yuzhan is the rate assigned to all other producers and exporters, pursuant to section 705(c)(5)(A)(i) of the Act. Preliminary Determination Commerce preliminarily determines that the following estimated countervailable subsidy rates exist: Company Vietnam Yuzhan Packaging Technology Co. Ltd ................................................. HC Packaging Asia (Industrial Park) ...... Honha Eco Pulp Viet Nam Paper Tray ... Pulp Tray, Martin Vietnam Co. Ltd ......... All Others ................................................ Subsidy rate (percent ad valorem) 3.39 * 173.51 * 173.51 * 173.51 3.39 * Rate based on facts available with adverse inferences. Disclosure Commerce intends to disclose its calculations and analysis performed in connection with this preliminary determination within five days of its public announcement, or if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). 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 Section 703(e)(2) of the Act provides that, given an affirmative determination of critical circumstances, any suspension of liquidation shall apply to unliquidated entries of merchandise 11 See E:\FR\FM\14MRN1.SGM sections 705(c)(5)(A)(i) and (ii) of the Act. 14MRN1 12128 Federal Register / Vol. 90, No. 49 / Friday, March 14, 2025 / Notices entered, or withdrawn from warehouse, for consumption on or after the later of: (a) the date which is 90 days before the date on which the suspension of liquidation was first ordered; or (b) the date on which notice of initiation of the investigation was published. Commerce preliminarily finds that critical circumstances exist for imports of subject merchandise produced and/or exported by Yuzhan, the non-responsive companies (i.e., HC Packaging Asia (Industrial Park), Honha Eco Pulp Viet Nam Paper Tray, and Pulp Tray, Martin Vietnam Co. Ltd.), and all other producers and exporters whose imports enter under the all-others subsidy rate. Pursuant to section 703(d)(1)(B) and (d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise, as described in the scope of the investigation, entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the publication of this notice, in accordance with section 703(e)(2)(A) of the Act. Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. lotter on DSK11XQN23PROD with NOTICES1 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.12 Rebuttal briefs, limited to issues raised in the case briefs, may 12 See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for general filing requirements). VerDate Sep<11>2014 16:09 Mar 13, 2025 Jkt 265001 be filed not later than five days after the date for filing case briefs.13 Interested parties who submit case or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.14 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 public executive summary of each issue to no more than 450 words, not including citations. We intend to use the public 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 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 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. Oral presentations at the hearing will be limited to issues raised in the briefs. 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. 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). 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. PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 U.S. International Trade Commission (ITC) Notification In accordance with section 703(f) of the Act, Commerce will notify the 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 Vietnam are materially injuring the U.S. industry. Notification to Interested Parties This determination is issued and published in accordance with sections 703(f) and 777(i) 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 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 E:\FR\FM\14MRN1.SGM 14MRN1 Federal Register / Vol. 90, No. 49 / Friday, March 14, 2025 / Notices 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 non-subject 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 lotter on DSK11XQN23PROD with NOTICES1 I. Summary II. Background III. Injury Test IV. Preliminary Affirmative Determination of Critical Circumstances V. Use of Facts Available and Adverse Inferences VI. Subsidies Valuation Information VII. Interest Rate, Discount Rate, and Land Lease Benchmarks VIII. Analysis of Programs IX. Recommendation [FR Doc. 2025–04094 Filed 3–13–25; 8:45 am] BILLING CODE 3510–DS–P VerDate Sep<11>2014 16:09 Mar 13, 2025 Jkt 265001 DEPARTMENT OF COMMERCE International Trade Administration [A–201–844] Steel Concrete Reinforcing Bar From Mexico: Notice of Court Decision Not in Harmony With the Results of Antidumping Administrative Review; Notice of Amended Final Results Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: On February 28, 2025, the U.S. Court of International Trade (CIT) issued its final judgment in Grupo Acerero S.A. de C.V., Grupo Simec S.A.B. de C.V. v. United States, Consol. Court No. 22–00202, sustaining the U.S. Department of Commerce’s (Commerce) final remand results pertaining to the administrative review of the antidumping duty (AD) order on steel concrete reinforcing bar (rebar) from Mexico covering the period November 1, 2019, through October 31, 2020. Commerce is notifying the public that the CIT’s final judgment is not in harmony with Commerce’s final results of the administrative review, and that Commerce is amending the final results with respect to the dumping margin assigned to Grupo Simec,1 Grupo Acerero S.A. de C.V. (Grupo Acerero), and Sidertul S.A. de C.V. (Sidertul). DATES: Applicable March 10, 2025. FOR FURTHER INFORMATION CONTACT: Charles Doss, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4474. SUPPLEMENTARY INFORMATION: AGENCY: Background On June 8, 2022, Commerce published its Final Results in the 2019–2020 AD administrative review of rebar from Mexico. Commerce found that the 1 Commerce has previously collapsed the following entities into a single entity, collectively, Grupo Simec: Grupo Simec S.A.B. de C.V. (Simec, as in individual entity); Aceros Especiales Simec Tlaxcala, S.A. de C.V.; Compania Siderurgica del Pacifico S.A. de C.V.; Fundiciones de Acero Estructurales, S.A. de C.V.; Grupo Chant S.A.P.I. de C.V.; Operadora de Perfiles Sigosa, S.A. de C.V. (Sigosa); Orge S.A. de C.V.; Perfiles Comerciales Sigosa, S.A. de C.V.; RRLC S.A.P.I. de C.V.; Siderúrgicos Noroeste, S.A. de C.V.; Siderurgica del Occidente y Pacifico S.A. de C.V.; Simec International 6 S.A. de C.V.; Simec International, S.A. de C.V.; Simec International 7 S.A. de C.V.; and Simec International 9 S.A. de C.V. See, e.g., Steel Concrete Reinforcing Bar from Mexico: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2018–2019, 86 FR 50527, 50528 (September 9, 2021). PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 12129 application of adverse facts available (AFA), pursuant to sections 776(a) and (b) of the Tariff Act of 1930, as amended (the Act), was warranted in determining Grupo Simec’s dumping margin and assigned a dumping margin of 66.70 percent.2 Additionally, Commerce assigned the companies not selected for individual examination, Grupo Acerero and Sidertul, a dumping margin equal to the simple average of the dumping margins for Deacero S.A.P.I. de C.V., the other mandatory respondent, and Grupo Simec, consistent with the guidance in section 735(c)(5)(B) of the Act.3 Grupo Simec appealed Commerce’s Final Results. On April 25, 2024, the CIT remanded the Final Results to Commerce to: (1) reopen the record of the administrative review to accept Grupo Simec’s October 18, 2021, filing, and to request other information as needed; (2) conduct a new analysis to determine if the application of AFA is warranted; and (3) re-analyze the nonselected company rate and make any needed adjustments.4 In its final remand redetermination, issued on November 21, 2024, Commerce calculated a weightedaverage dumping margin of 0.00 percent for Grupo Simec.5 In addition, because of the change in Grupo Simec’s calculated margin, the non-selected companies’ rate also changed. As a result, Grupo Acerero and Sidertul are each assigned a weighted-average dumping margin of 0.00 percent in accordance with section 735(c)(5)(B) of the Act.6 On February 28, 2025, the CIT sustained Commerce’s final redetermination.7 Timken Notice In its decision in Timken,8 as clarified by Diamond Sawblades,9 the U.S. Court of Appeals for the Federal Circuit held that, pursuant to sections 516A(c) and (e) of the Act, Commerce must publish 2 See Steel Concrete Reinforcing Bar from Mexico: Final Results of Antidumping Duty Administrative Review; 2019–2020, 87 FR 34848 (June 8, 2022) (Final Results), and accompanying Issues and Decision Memorandum. 3 Id. 4 See Grupo Acerero S.A. de C.V., Grupo Simec S.A.B. de C.V. v. United States, Consol. Court No. 22–00202, Slip Op. 24–52 (CIT April 25, 2024) at 36–37. 5 See Final Results of Redetermination Pursuant to Court Remand, Grupo Simec v. United States, Consol. Court No. 22–00202, Slip Op. 24–52, dated November 21, 2024, at 27–28. 6 Id. 7 See Grupo Acerero S.A. de C.V., Grupo Simec S.A.B. de C.V. v. United States, Consol. Court No. 22–00202, Slip Op. 25–21 (CIT February 28, 2025). 8 See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 1990) (Timken). 9 See Diamond Sawblades Manufacturers Coalition v. United States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades). E:\FR\FM\14MRN1.SGM 14MRN1

Agencies

[Federal Register Volume 90, Number 49 (Friday, March 14, 2025)]
[Notices]
[Pages 12126-12129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-04094]


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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

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 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:

Background

    This preliminary determination is made 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 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 Socialist Republic of 
Vietnam,'' 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 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

[[Page 12127]]

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 87556.
    \6\ The deadline for interested parties to submit scope case and 
rebuttal briefs will be established in the preliminary scope 
decision memorandum.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    Commerce notes that, in making these findings, it relied, in part, 
on facts available, and, because it finds that certain 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.
---------------------------------------------------------------------------

    \8\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that critical circumstances exist with respect 
to imports of subject merchandise from the mandatory respondent Vietnam 
Yuzhan Packaging Technology Co. Ltd. (Yuzhan), as well as HC Packaging 
Asia (Industrial Park), Honha Eco Pulp Viet Nam Paper Tray, and Pulp 
Tray, Martin Vietnam Co. Ltd., which have been assigned a rate based on 
total adverse facts available (AFA), and also with respect to all other 
producers and exporters that enter subject merchandise under the all-
others subsidy rate. For a full description of the methodology and 
results of Commerce's analysis, see 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 CVD determination in this 
investigation with the final determination in the companion LTFV 
investigation of molded fiber products from Vietnam, based on a request 
made by the petitioner.\9\ Consequently, this final CVD determination 
will be issued on the same date as the final determination for the LTFV 
investigation, which is currently scheduled to be issued no later than 
July 21, 2025, unless postponed.
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    \9\ The petitioner is the American Molded Fiber Coalition. See 
Petitioner's Letter, ``Petitioners' Request for Alignment of the 
Countervailing Duty Investigations with the Concurrent Antidumping 
Duty Investigations,'' dated February 24, 2025.
---------------------------------------------------------------------------

Rate for Non-Responsive Companies

    Three potential exporters and/or producers of molded fiber products 
from Vietnam did not respond to Commerce's quantity and value (Q&V) 
questionnaire (i.e., the non-responsive companies).\10\ We find that, 
by not responding to the Q&V questionnaire, these companies withheld 
requested information and significantly impeded this proceeding. Thus, 
in reaching our preliminary determination, pursuant to sections 
776(a)(2)(A) and (C) of the Act, we are basing the CVD subsidy rate for 
the non-responsive companies on facts otherwise available.
---------------------------------------------------------------------------

    \10\ The non-responsive companies are: (1) HC Packaging Asia 
(Industrial Park); (2) Honha Eco Pulp Viet Nam Paper Tray; and (3) 
Pulp Tray, Martin Vietnam Co. Ltd.
---------------------------------------------------------------------------

    We further preliminarily determine that an adverse inference is 
warranted, pursuant to section 776(b) of the Act. By failing to submit 
responses to Commerce's Q&V questionnaire, the non-responsive companies 
did not cooperate to the best of their ability in this investigation. 
For more information on the application of AFA to the non-responsive 
companies, 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 
rates that are zero, de minimis, or based entirely under section 776 of 
the Act. If the rates established for all exporters and producers 
individually investigated are zero, de minimis, or determined entirely 
under facts available, Commerce may use any reasonable method to 
establish an all-others rate.\11\
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    \11\ See sections 705(c)(5)(A)(i) and (ii) of the Act.
---------------------------------------------------------------------------

    Commerce calculated an individual estimated countervailable subsidy 
rate for Yuzhan, the only individually examined exporter/producer in 
this investigation. Because the only individually calculated rate is 
not zero, de minimis, or based entirely on facts otherwise available, 
the estimated weighted-average rate calculated for Yuzhan is the rate 
assigned to all other producers and exporters, pursuant to section 
705(c)(5)(A)(i) of the Act.

Preliminary Determination

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

------------------------------------------------------------------------
                                                                Subsidy
                                                                  rate
                           Company                              (percent
                                                                   ad
                                                                valorem)
------------------------------------------------------------------------
Vietnam Yuzhan Packaging Technology Co. Ltd..................       3.39
HC Packaging Asia (Industrial Park)..........................   * 173.51
Honha Eco Pulp Viet Nam Paper Tray...........................   * 173.51
Pulp Tray, Martin Vietnam Co. Ltd............................   * 173.51
All Others...................................................       3.39
------------------------------------------------------------------------
* Rate based on facts available with adverse inferences.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed in connection with this preliminary determination within five 
days of its public announcement, or if there is no public announcement, 
within five days of the date of publication of this notice in 
accordance with 19 CFR 351.224(b).
    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

    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise

[[Page 12128]]

entered, or withdrawn from warehouse, for consumption on or after the 
later of: (a) the date which is 90 days before the date on which the 
suspension of liquidation was first ordered; or (b) the date on which 
notice of initiation of the investigation was published. Commerce 
preliminarily finds that critical circumstances exist for imports of 
subject merchandise produced and/or exported by Yuzhan, the non-
responsive companies (i.e., HC Packaging Asia (Industrial Park), Honha 
Eco Pulp Viet Nam Paper Tray, and Pulp Tray, Martin Vietnam Co. Ltd.), 
and all other producers and exporters whose imports enter under the 
all-others subsidy rate. Pursuant to section 703(d)(1)(B) and (d)(2) of 
the Act, Commerce will direct U.S. Customs and Border Protection (CBP) 
to suspend liquidation of entries of subject merchandise, as described 
in the scope of the investigation, entered, or withdrawn from 
warehouse, for consumption on or after the date which is 90 days before 
the publication of this notice, in accordance with section 703(e)(2)(A) 
of the Act. 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.\12\ 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 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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    \12\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for 
general filing requirements).
    \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).
---------------------------------------------------------------------------

    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 public 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the public 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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 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. Oral presentations at the hearing 
will be limited to issues raised in the briefs. 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 (ITC) Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the 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 Vietnam 
are materially injuring the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 703(f) and 777(i) 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 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

[[Page 12129]]

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 non-subject 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. Preliminary Affirmative Determination of Critical Circumstances
V. Use of Facts Available and Adverse Inferences
VI. Subsidies Valuation Information
VII. Interest Rate, Discount Rate, and Land Lease Benchmarks
VIII. Analysis of Programs
IX. Recommendation

[FR Doc. 2025-04094 Filed 3-13-25; 8:45 am]
BILLING CODE 3510-DS-P
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