Certain Glass Containers From the People's Republic of China: Final Affirmative Countervailing Duty Determination
| Published date | 22 May 2020 |
| Citation | 85 FR 31141 |
| Record Number | 2020-11070 |
| Section | Notices |
| Court | Commerce Department,International Trade Administration |
Federal Register, Volume 85 Issue 100 (Friday, May 22, 2020)
[Federal Register Volume 85, Number 100 (Friday, May 22, 2020)]
[Notices]
[Pages 31141-31144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11070]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-115]
Certain Glass Containers From the People's Republic of China:
Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of certain glass containers (glass containers) from the People's
Republic of China (China).
DATES: Applicable May 22, 2020.
FOR FURTHER INFORMATION CONTACT: Maliha Khan or Stephen Bailey, 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) 482-0895 or (202) 482-0193,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 2, 2020, Commerce published the Preliminary Determination
of this investigation.\1\ The petitioner is the American Glass
Packaging Coalition. The mandatory respondents in this investigation
are Guangdong Huaxing Glass Co. Ltd. (Guangdong Huaxing) and Qixia
Changyu Glass Co. Ltd. (Qixia Changyu).
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\1\ See Certain Glass Containers from the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination, 85
FR 12256 (March 2, 2020) (Preliminary Determination) and
accompanying Preliminary Decision Memorandum.
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, are discussed in the
Issues and Decision Memorandum.\2\ The Issues and 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
http://access.trade.gov. In addition, a complete version of the Issues
and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the
Issues and Decision Memorandum are identical in content.
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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Certain Glass Containers from the People's Republic of China,''
dated concurrently, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Period of Investigation
The period of investigation (POI) is from January 1, 2018 through
December 31, 2018.
Scope of the Investigation
The products covered by this investigation are glass containers
from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
During the course of this investigation and the concurrent less
than fair value (LTFV) investigation of certain glass containers from
China, Commerce received scope comments from interested parties. On
April 3, 2020, Commerce issued a Preliminary Scope
[[Page 31142]]
Decision Memorandum.\3\ Several interested parties submitted case and
rebuttal briefs concerning the scope of this investigation. For a
summary of the product coverage comments and rebuttal comments
submitted to the record for this final determination, and accompanying
discussion and analysis of all comments timely received, see the Final
Scope Decision Memorandum.\4\ Based on the comments received, Commerce
is not modifying the scope language as it appeared in the Preliminary
Determination. The scope in Appendix I remains unchanged from that
which appeared in the Preliminary Determination.
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\3\ See Memorandum, ``Certain Glass Containers from the People's
Republic of China: Preliminary Scope Decision Memorandum,'' dated
April 3, 2020.
\4\ See Memorandum, ``Certain Glass Containers from the People's
Republic of China: Final Scope Decision Memorandum,'' dated
concurrently with this memorandum.
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Analysis of Subsidy Programs and Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation, other than those issues related to scope, are
discussed in the Issues and Decision Memorandum. A list of the issues
raised by parties and addressed in Commerce's Issues and Decision
Memorandum is attached at Appendix II.
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Tariff Act of 1930, as amended (the Act). For each
of the subsidy programs found countervailable, Commerce determines that
there is a subsidy, i.e., a financial contribution by an ``authority''
that gives rise to a benefit to the recipient, and that the subsidy is
specific.\5\ Following the Preliminary Determination, and as explained
in a letter to all interested parties dated March 16, 2020, during the
course of this investigation, a Level 4 Travel Advisory was imposed for
all of China, preventing Commerce personnel from traveling to China to
conduct verification.\6\ Pursuant to section 776(a)(4)(D) of the Act,
in situations where information has been provided but the information
cannot be verified, Commerce will use the facts otherwise available in
reaching the applicable determination. Accordingly, and as Commerce
explained, because Commerce was unable to proceed to verification for
reasons beyond its control, Commerce has relied on the information
submitted on the record, which it relied on in making its Preliminary
Determination, as facts available in making this final determination,
pursuant to section 776(a)(2)(D) of the Act.\7\ In addition, in certain
circumstances, Commerce has also resorted to facts available for
certain aspects of its analysis, pursuant to section 776(a)(1), and
(a)(2)(A)-(C) of the Act.
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\5\ 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.
\6\ See Memorandum, ``Verification, New Subsidy and
Creditworthiness Allegations,'' dated March 16, 2020.
\7\ Id.; see also Issues and Decision Memorandum.
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Furthermore, at the outset of this investigation, several companies
failed to respond to Commerce's quantity and value (Q&V)
questionnaire.\8\ Moreover, the GOC failed to cooperate to the best of
its ability in certain respects in providing information necessary to
Commerce's analysis in this investigation. Because Commerce 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, in accordance with section 776(b) of the Act. For a
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\8\ The companies that failed to properly respond to Commerce's
quantity and value questionnaire were: Cangzhou Roter Faden Glass
Products, Choicest International, Guangzhou Idealpak Business,
Haimen Sanlong Glass Products, Hebei Anyu Glass Products Co. Ltd.,
Hebei Zhengi Glass Products Co. Ltd., Huazhong Glass Co. Ltd.
(Changxing), Iboya Glass, Jiangmen Zhong'an Import and Export,
Jining Baolin Glass Product Co. Ltd., Kisco Trading Shanghai,
Lianyungang Chinamex Trade, Linlang (Shanghai) Glass Products Co.
Ltd., Ningbo Vifa International Trade Co., Qingdao Auro Pack,
Rockwood & Hines (Jiaxing) Co. Ltd., Shandong Hongda Glassware Co.
Ltd., Shandong Mounttai Sheng Li Yuan GLA, Shandong Wensheng Glass
Technology Co. Ltd., ShangHai Misa Glass Co. Ltd., Shanghai Vista
Packaging, Suzhou Yunbo Glass, Value Chain Glass Ltd. (VCG), Wheaton
Glass, Wuhan Vanjoin Packaging Co. Ltd., Xiamen Cheer Imp & Exp Co.
Ltd., Xuzhou Dahua Glass Products Co. Ltd., Xuzhou Fangbao
Glassware, Xuzhou Huajing Glass Products, Xuzhou Livlong Glass
Products Co. Ltd., Xuzhou Pretty Glass Products, Xuzhou Yanjia
Glassware, Yantai NBC Glass Packaging Co. Ltd., Yuncheng Jinpeng
Glass Co. Ltd., Zheijiang Industrial Minerals Foreign Trade Co Ltd.,
Zibo CY International Trade Co. Ltd., Zibo Regal Glassware and Zibo
Rongdian Glass Co. Ltd. (collectively, the 38 non-responsive
companies). We refer to these companies, collectively, as the ``non-
responsive companies.''
See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination
Based on our analysis of the comments received from parties, we
made certain changes to the mandatory respondents' subsidy rate
calculations set forth in the Preliminary Determination. For a
discussion of these changes, see the Issues and Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(5)(A) of the Act, Commerce shall
determine an estimated all-others rate for companies not individually
examined. Generally, under section 705(c)(5)(A)(i) of the Act, 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. However, section 705(c)(5)(A)(ii) of the
Act provides that if the countervailable subsidy rates established for
all companies individually examined are zero or de minimis rates, or
are determined entirely under section 776 of the Act, then Commerce may
use ``any reasonable method'' to establish an all-others rate,
``including averaging the weighted-average countervailable subsidy
rates determined for the exporters and producers individually
investigated.''
As explained above, all of the countervailable subsidy rates for
this final determination are based on the facts otherwise available. As
explained above, the mandatory respondents in this investigation,
Guangdong Huaxing and Qixia Changyu, are receiving rates based entirely
on the facts available. In the specific circumstances of this case,
because we were unable to verify Guangdong Huaxing and Qixia Changyu
because of the Level 4 Travel Advisory, we find that a reasonable
method to determine the all-others rate under section 705(c)(5)(A)(ii)
of the Act here is to apply a simple average of Guangdong Huaxing's and
Qixia Changyu's individual estimated subsidy rates, using each
company's values for the merchandise under consideration because
publicly ranged sales data was unavailable.\9\
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\9\ 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 quantities 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, 53663
(September 1, 2010). As complete publicly ranged sales data was
unavailable, Commerce based the all-others rate on a simple average
of the mandatory respondents' rates. For a complete analysis of the
data, please see the All-Others' Rate Calculation Memorandum.
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[[Page 31143]]
Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
established individual estimated countervailable subsidy rates, as
follows:
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Subsidy
Company rate
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Guangdong Huaxing Glass Co., Ltd.\10\......................... 27.10
Qixia Changyu Glass Co., Ltd.................................. 25.46
Cangzhou Roter Faden Glass Products........................... 320.53
Choicest International........................................ 320.53
Guangzhou Idealpak Business................................... 320.53
Haimen Sanlong Glass Products................................. 320.53
Hebei Anyu Glass Products Co. Ltd............................. 320.53
Hebei Zhengi Glass Products Co. Ltd........................... 320.53
Huazhong Glass Co. Ltd. (Changxing)........................... 320.53
Iboya Glass................................................... 320.53
Jiangmen Zhong'an Import and Export........................... 320.53
Jining Baolin Glass Product Co. Ltd........................... 320.53
Kisco Trading Shanghai........................................ 320.53
Lianyungang Chinamex Trade.................................... 320.53
Linlang (Shanghai) Glass Products Co. Ltd..................... 320.53
Ningbo Vifa International Trade Co............................ 320.53
Qingdao Auro Pack............................................. 320.53
Rockwood & Hines (Jiaxing) Co. Ltd............................ 320.53
Shandong Hongda Glassware Co. Ltd............................. 320.53
Shandong Mounttai Sheng Li Yuan GLA........................... 320.53
Shandong Wensheng Glass Technology Co. Ltd.................... 320.53
ShangHai Misa Glass Co. Ltd................................... 320.53
Shanghai Vista Packaging...................................... 320.53
Suzhou Yunbo Glass............................................ 320.53
Value Chain Glass Ltd. (VCG).................................. 320.53
Wheaton Glass................................................. 320.53
Wuhan Vanjoin Packaging Co. Ltd............................... 320.53
Xiamen Cheer Imp & Exp Co. Ltd................................ 320.53
Xuzhou Dahua Glass Products Co. Ltd........................... 320.53
Xuzhou Fangbao Glassware...................................... 320.53
Xuzhou Huajing Glass Products................................. 320.53
Xuzhou Livlong Glass Products Co. Ltd......................... 320.53
Xuzhou Pretty Glass Products.................................. 320.53
Xuzhou Yanjia Glassware....................................... 320.53
Yantai NBC Glass Packaging Co. Ltd............................ 320.53
Yuncheng Jinpeng Glass Co. Ltd................................ 320.53
Zheijiang Industrial Minerals Foreign Trade Co Ltd............ 320.53
Zibo CY International Trade Co. Ltd........................... 320.53
Zibo Regal Glassware.......................................... 320.53
Zibo Rongdian Glass Co. Ltd................................... 320.53
All Others.................................................... 26.28
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Continuation of Suspension of Liquidation
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\10\ Guangdong Huaxing reported the following cross-owned
companies, which also will receive Guangdong Huaxing's subsidy rate:
Foshan Huaxing Glass Co. Ltd., Fujian Huaxing Glass Co. Ltd., Daye
Huaxing Glass Co. Ltd., Hunan Huaxing Glass Co. Ltd., Guizhou
Huaxing Glass Co. Ltd., Zhejiang Huaxing Glass Co. Ltd., Foshan City
San Shui Hua Xing Glass Co. Ltd., Fujian Changcheng Huaxing Glass
Co. Ltd., Jiangsu Huaxing Glass Co. Ltd., Hebei Huaxing Glass Co.
Ltd., Henan Huaxing Glass Co Ltd., and Xinjiang Huaxing Glass Co.
Ltd.
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As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise under consideration from China that were entered
or withdrawn from warehouse, for consumption on or after March 2, 2020,
the date of publication of the Preliminary Determination in the Federal
Register.
In accordance with section 705(c)(1)(B)(ii) of the Act, we are
directing CBP to continue to suspend liquidation of all imports of the
subject merchandise from China that are entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. The suspension of liquidation
instructions will remain in effect until further notice. We are also
directing CBP to collect cash deposit of estimated countervailing
duties at the rates identified above.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order and require
a cash deposit of estimated countervailing duties for such entries of
subject merchandise in the amounts indicated above, in accordance with
section 706(a) of the Act. If the ITC determines that material injury,
or threat of material injury, does not exist, this proceeding will be
terminated, and all estimated duties deposited or securities posted as
a result of the suspension of liquidation will be refunded or canceled.
Disclosure
Commerce intends to disclose its calculations and analysis
performed in this proceeding to interested parties within five days of
its public announcement, or if there is no public announcement, within
five days of the date of this notice in accordance with 19 CFR
351.224(b).
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of certain
glass containers from China. As Commerce's final determination is
affirmative, in accordance with section 705(b) of the Act, the ITC will
determine, within 45 days, whether the domestic industry in the United
States is materially injured, or threatened with material injury, by
reason of imports of certain glass containers from China, or sales (or
the likelihood of sales) for importation of certain glass containers
from China. In addition, we are making available to the ITC all non-
privileged and nonproprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Notification Regarding APO
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act and 19 CFR 351.210(c).
Dated: May 11, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is certain glass
containers with a nominal capacity of 0.059 liters (2.0 fluid
ounces) up to and including 4.0 liters (135.256 fluid ounces) and an
opening or mouth with a nominal outer diameter of 14 millimeters up
to and including 120 millimeters. The scope includes glass jars,
bottles, flasks and similar containers; with or
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without their closures; whether clear or colored; and with or
without design or functional enhancements (including, but not
limited to, handles, embossing, labeling, or etching).
Excluded from the scope of the investigation are: (1) Glass
containers made of borosilicate glass, meeting United States
Pharmacopeia requirements for Type 1 pharmaceutical containers; (2)
glass containers without ``mold seams,'' ``joint marks,'' or
``parting lines;'' and (3) glass containers without a ``finish''
(i.e., the section of a container at the opening including the lip
and ring or collar, threaded or otherwise compatible with a type of
closure to seal the container's contents, including but not limited
to a lid, cap, or cork).
Glass containers subject to this investigation are specified
within the Harmonized Tariff Schedule of the United States (HTSUS)
under subheadings 7010.90.5005, 7010.90.5009, 7010.90.5015,
7010.90.5019, 7010.90.5025, 7010.90.5029, 7010.90.5035,
7010.90.5039, 7010.90.5045, 7010.90.5049, and 7010.90.5055. The
HTSUS subheadings are provided for convenience and customs purposes
only. The written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Analysis of Comments
IX. Recommendation
[FR Doc. 2020-11070 Filed 5-21-20; 8:45 am]
BILLING CODE 3510-DS-P
