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Federal Register / Vol. 72, No.

142 / Wednesday, July 25, 2007 / Notices 40839

We are issuing and publishing this People’s Republic of China (the PRC) ‘‘Consultations with Officials from the
notice in accordance with sections receive countervailable subsidies within Government of the People’s Republic of
751(a)(2)(B) and 777(i)(1) of the Act. the meaning of section 701 of the Act China’’ (July 16, 2007) (on file in the
Dated: July 18, 2007. and that such imports are materially Central Records Unit (CRU) of the
Stephen J. Claeys,
retarding the establishment of an Department of Commerce building,
industry in the United States, or that Room B–099).
Deputy Assistant Secretary for Import
such an industry is materially injured or
Administration. Determination of Industry Support for
threatened with material injury by
[FR Doc. E7–14371 Filed 7–24–07; 8:45 am] the Petition
reason of such imports.
BILLING CODE 3510–DS–S The Department finds that the Section 702(b)(1) of the Act requires
Petitioners filed the Petition on behalf of that a petition be filed on behalf of the
the domestic industry because they are domestic industry. Section 702(c)(4)(A)
DEPARTMENT OF COMMERCE interested parties as defined in sections of the Act provides that a petition meets
771(9)(E) and (F) of the Act and the this requirement if the domestic
International Trade Administration
Petitioners have demonstrated sufficient producers or workers who support the
[C–570–917] industry support with respect to the petition account for: (i) at least 25
countervailing duty investigation (see percent of the total production of the
Laminated Woven Sacks from the ‘‘Determination of Industry Support for domestic like product; and (ii) more
People’s Republic of China: Initiation the Petition’’ section below). than 50 percent of the production of the
of Countervailing Duty Investigation domestic like product produced by that
Scope of Investigation portion of the industry expressing
AGENCY: Import Administration,
International Trade Administration, The merchandise covered by this support for, or opposition to, the
Department of Commerce. investigation is laminated woven sacks. petition. Moreover, section 702(c)(4)(D)
See Attachment to this notice for a of the Act provides that, if the petition
EFFECTIVE DATE: July 25, 2007.
complete description of the does not establish support of domestic
FOR FURTHER INFORMATION CONTACT: merchandise covered by this producers or workers accounting for
Mark Hoadley or Joshua Reitze, AD/ investigation. more than 50 percent of the total
CVD Operations, Office 6, Import production of the domestic like product,
Administration, International Trade Comments on Scope of Investigation
the Department shall: (i) poll the
Administration, U.S. Department of During our review of the Petition, we industry or rely on other information in
Commerce, 14th Street and Constitution discussed the scope with the Petitioners order to determine if there is support for
Avenue, NW, Washington, DC 20230; to ensure that it is an accurate reflection the petition, as required by
telephone: (202) 482–3128 and (202) of the products for which the domestic subparagraph (A), or (ii) determine
482–0666, respectively. industry is See king relief. Moreover, as industry support using a statistically
Initiation of Investigation discussed in the preamble to the valid sampling method.
regulations (Antidumping Duties; Section 771(4)(A) of the Act defines
SUPPLEMENTARY INFORMATION: Countervailing Duties; Final Rule, 62 FR the ‘‘industry’’ as the producers as a
27296, 27323 (May 19, 1997)), we are whole of a domestic like product. Thus,
The Petition
setting aside a period for interested to determine whether a petition has the
On June 28, 2007, the Department of parties to raise issues regarding product requisite industry support, the statute
Commerce (Department) received a coverage. The Department encourages directs the Department to look to
Petition filed in proper form by the all interested parties to submit such producers and workers who produce the
Laminated Woven Sacks Committee and comments by August 7, 2007. domestic like product. The International
its individual members, Bancroft Bag, Comments should be addressed to Trade Commission (ITC), which is
Inc., Coating Excellence International, Import Administration’s Central responsible for determining whether
LLC, Hood Packaging Corporation, Mid– Records Unit, Room 1870, U.S. ‘‘the domestic industry’’ has been
America Packaging, LLC, and Polytex Department of Commerce, 14th Street injured, must also determine what
Fibers Corporation (collectively, the and Constitution Avenue, NW, constitutes a domestic like product in
Petitioners). See Petition for the Washington, DC 20230, attention Mark order to define the industry. While both
Imposition of Antidumping and Hoadley, room 7866. The period of the Department and the ITC must apply
Countervailing Duties Against scope consultations is intended to the same statutory definition regarding
Laminated Woven Sacks from the provide the Department with ample the domestic like product (section
People’s Republic of China (June 28, opportunity to consider all comments 771(10) of the Act), they do so for
2007) (Petition). On July 2, July 6, July and to consult with parties prior to the different purposes and pursuant to a
11, and July 12, 2007, the Department issuance of the preliminary separate and distinct authority. In
issued requests for additional determination. addition, the Department’s
information and clarification of certain determination is subject to limitations of
areas of the Petition involving general Consultations time and information. Although this
issues concerning the countervailing Pursuant to section 702(b)(4)(A)(ii) of may result in different definitions of the
duty (CVD) allegations. Based on the the Act, on June 29, 2007, the like product, such differences do not
Department’s requests, the Petitioners Department invited representatives of render the decision of either agency
filed additional information concerning the Government of the People’s contrary to law. See USEC, Inc. v.
the Petition on July 11 and July 13, Republic of China (herein after the GOC) United States, 132 F. Supp. 2d 1, 8 (CIT
2007. for consultations with respect to the 2001), citing Algoma Steel Corp. Ltd. v.
rwilkins on PROD1PC63 with NOTICES

In accordance with section 702(b)(1) countervailing duty Petition. The United States, 688 F. Supp. 639, 644
of the Tariff Act of 1930, as amended Department held these consultations in (1988), aff’d 865 F.2d 240 (Fed. Cir.
(the Act), the Petitioners allege that Beijing, China, with representatives of 1989), cert. denied 492 U.S. 919 (1989).
manufacturers, producers, or exporters the GOC on July 16, 2007. See Section 771(10) of the Act defines the
of laminated woven sacks (LWS) in the Memorandum to the File, domestic like product as ‘‘a product

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40840 Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices

which is like, or in the absence of like, they have demonstrated sufficient statutory requirements for initiation. See
most similar in characteristics and uses industry support with respect to the CVD Initiation Checklist at Attachment
with, the article subject to an countervailing duty investigation that III (Injury).
investigation under this subtitle.’’ Thus, they are requesting the Department
Subsidy Allegations
the reference point from which the initiate. See CVD Initiation Checklist at
domestic like product analysis begins is Attachment II (Industry Support). Section 702(b) of the Act requires the
‘‘the article subject to an investigation,’’ Department to initiate a countervailing
Allegations and Evidence of Material duty proceeding whenever an interested
(i.e., the class or kind of merchandise to
Retardation and of Material Injury and party files a petition on behalf of an
be investigated, covered by the scope as
Causation industry that (1) alleges the elements
defined in the Petition).
With regard to the domestic like Because the PRC is a ‘‘Subsidies necessary for an imposition of a duty
product, the Petitioners do not offer a Agreement Country’’ within the under section 701(a) of the Act and (2)
definition of domestic like product meaning of section 701(b) of the Act, is accompanied by information
distinct from the scope of the section 701(a)(2) of the Act applies to reasonably available to the Petitioners
investigation. Based on our analysis of these investigations. Accordingly, the supporting the allegations.
the information submitted on the ITC must determine whether imports of The Department has examined the
record, we have determined that LWS the subject merchandise from the PRC countervailing duty Petition on LWS
constitute a single domestic like product materially injure, or threaten material from the PRC and found that it complies
and we have analyzed industry support injury to, a U.S. industry, or whether the with the requirements of section 702(b)
in terms of that domestic like product. establishment of an industry in the of the Act. Therefore, in accordance
For a discussion of the domestic like United States is materially retarded. with section 702(b) of the Act, we are
product analysis in this case, see the Section 703(a)(1)(B) of the Act states initiating a countervailing duty
Countervailing Duty Investigation that the ITC ‘‘shall determine . . . investigation to determine whether
Initiation Checklist: Laminated Woven .whether there is a reasonable indication manufacturers, producers, or exporters
Sacks from the People’s Republic of that the establishment of an industry in of LWS in the PRC receive
China (PRC), Industry Support at the United States is materially retarded countervailable subsidies.
Attachment II (CVD Initiation by reason of imports of the subject We are including in our investigation
Checklist), on file in the CRU. merchandise.’’ The Petitioners allege the following programs alleged in the
Our review of the data provided in the that imports of subject merchandise Petition to have provided
Petition, supplemental submissions, and from the PRC have materially retarded countervailable subsidies to producers
other information readily available to the establishment of the domestic and exporters of the subject
the Department indicates that the industry producing LWS. The merchandise in the PRC:
Petitioners have established industry Petitioners argue that U.S. producers of GOC Loan Programs
support. First, the Petition established LWS have not stabilized their 1. Policy Loans to LWS Producers
support from domestic producers (or operations and, therefore, a U.S. from Government–Owned Banks
workers) accounting for more than 50 industry producing LWS has not been 2. Loan Forgiveness for LWS
percent of the total production of the established. To support their argument, Producers by the GOC
domestic like product and, as such, the the Petitioners examine the five factors GOC Provision of Goods or Services
Department is not required to take considered by the ITC to determine if an for Less Than Adequate
further action in order to evaluate industry is established, as set forth in Remuneration
industry support (e.g., polling). See the ITC’s Antidumping and
Section 702(c)(4)(D) of the Act. Second, Countervailing Duty Handbook. See 3. Provision of Electricity for Less
the domestic producers have met the Antidumping and Countervailing Duty than Adequate Remuneration
statutory criteria for industry support Handbook (12th Ed.), USITC Pub. 3916 4. Provision of Land for Less than
under 702(c)(4)(A)(i) because the (April 2007). Furthermore, the Adequate Remuneration
domestic producers (or workers) who Petitioners contend that their efforts to GOC Grant Programs
support the Petition account for at least establish a domestic LWS industry have 5. The State Key Technologies
25 percent of the total production of the been thwarted by dumped and Renovation Project Fund
domestic like product. Finally, the subsidized imports of LWS from the 6. Grants and Other Funding for
domestic producers have met the PRC. High Technology Equipment for the
statutory criteria for industry support The Petitioners also allege that the Textile Industry
under 702(c)(4)(A)(ii) because the U.S. industry producing the domestic 7. Grants to Loss–Making State–
domestic producers (or workers) who like product is being materially injured, Owned Enterprises
support the Petition account for more or is threatened with material injury, by GOC Income Tax Programs
than 50 percent of the production of the reason of the subsidized imports of the 8. Preferential Tax Policies for
domestic like product produced by that subject merchandise. The Petitioners Enterprises with Foreign
portion of the industry expressing contend that the industry’s injured Investment (Two Free, Three Half
support for, or opposition to, the condition is illustrated by lost sales, lost Program)
Petition. Accordingly, the Department revenue, underselling and price
determines that the Petition was filed on depression or suppression, poor 9. Preferential Tax Policies for
behalf of the domestic industry within financial performance, capacity and Export–Oriented Foreign Invested
the meaning of section 702(b)(1) of the depressed capacity utilization rate, and Enterprises (FIEs)
Act. See CVD Initiation Checklist at increased import penetration. 10. Corporate Income Tax Refund
Attachment II (Industry Support). We have assessed the allegations and Program for Reinvestment of FIE
rwilkins on PROD1PC63 with NOTICES

The Department finds that the supporting evidence regarding material Profits in Export–Oriented
Petitioners filed the Petition on behalf of retardation and material injury and Enterprises
the domestic industry because they are causation, and we have determined that
interested parties as defined in sections these allegations are properly supported 11. Tax Benefits for FIEs in
771(9)(C), (E), and (F) of the Act and by adequate evidence and meet the Encouraged Industries that

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Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices 40841

Purchase Domestic Origin In the amended preliminary Dated: July 18, 2007.
Machinery determination in the investigation of Joseph A. Spetrini,
coated free sheet paper from the PRC, Deputy Assistant Secretaryfor Import
12. Tax Program for FIEs the Department preliminarily Administration.
Recognized as High or New determined that the current nature of
Technology Enterprises the PRC economy does not create Attachment
13. Preferential Tax Policies for
obstacles to applying the necessary Scope of the Countervailing Duty
Research and Development
14. Tax Subsidies to FIEs in criteria in the CVD law. See Coated Free Investigation
Specially Designated Geographic Sheet Paper from the People’s Republic Laminated Woven Sacks from the
Areas of China; Amended Preliminary People’s Republic of China
Affirmative Countervailing Duty
15. Preferential Tax Policies for Determination, 72 FR 17484, 17486 The merchandise covered by this
Township Enterprises by FIEs (April 9, 2007) (CFS Preliminary investigation is laminated woven sacks.
GOC Indirect Tax Programs and Determination), and Memorandum for Laminated woven sacks are bags or
Import Tariff Programs David M. Spooner, Assistant Secretary sacks consisting of one or more plies of
16. Value Added Tax (VAT) Rebate for Import Administration, fabric consisting of woven
for FIE Purchases of Domestically ‘‘Countervailing Duty Investigation of polypropylene strip and/or woven
Produced Equipment Coated Free Sheet Paper from The polyethylene strip; with or without an
17. VAT and Tariff Exemptions for People’s Republic of China Whether the extrusion coating of polypropylene and/
FIEs Using Imported Technology
Analytic Elements of the Georgetown or polyethylene on one or both sides of
and Equipment in Encouraged
Steel Opinion are Applicable to China’s the fabric;1 laminated by any method
Present-day Economy,’’ (March 29, either to an exterior ply of plastic film
18. VAT and Tariff Exemptions on 2007), on file in the CRU. Therefore, such as biaxially–oriented
Imported Equipment (Domestic because the Petitioners have provided polypropylene (‘‘BOPP’’) or to an
Enterprises) sufficient allegations and support of exterior ply of paper that is suitable for
their allegations to meet the statutory high quality print graphics; printed with
19. Exemption from Payment of criteria for initiating a countervailing three colors or more in register; with or
Staff and Worker Benefit Taxes for duty investigation of LWS from the PRC, without lining; whether or not closed on
Export–Oriented Enterprises initiation of a CVD investigation is one end; whether or not in roll form;
Provincial Grant Programs warranted in this case. with or without handles; with or
20. Export Interest Subsidy Funds without special closing features; not
for Enterprises Located in Zhejiang Distribution of Copies of the Petition exceeding one kilogram in weight.
and Guangdong Provinces Laminated woven bags are typically
21. Technological Innovation Funds In accordance with section
used for retail packaging of consumer
Provided by Zhejiang Province 702(b)(4)(A)(i) of the Act, a copy of the
goods such as pet foods and bird seed.
22. Programs to Rebate public version of the Petition has been
Antidumping Legal Fees provided to the GOC. To the extent Effective July 1, 2007, laminated
Provincial and Local Tax Programs practicable, we will attempt to provide woven sacks are classifiable under
for FIEs a copy of the public version of the Harmonized Tariff Schedule of the
23. Local Income Tax Exemption Petition to each exporter named in the United States (‘‘HTSUS’’) subheadings
and Reduction Programs for Petition, consistent with 19 CFR 6305.33.0050 and 6305.33.0080.
‘‘Productive’’ FIEs 351.203(c)(2). Laminated woven sacks were previously
For further information explaining the classifiable under HTSUS subheading
basis for the Department’s ITC Notification 6305.33.0020. If entered with plastic
determination to investigate these coating on both sides of the fabric
programs, see CVD Initiation Checklist. We have notified the ITC of our
consisting of woven polypropylene strip
initiation, as required by section 702(d)
Application of the Countervailing Duty and/or woven polypropylene strip,
of the Act.
Law to the PRC laminated woven sacks may be
Preliminary Determination by the ITC classifiable under HTSUS subheadings
The Department has treated the PRC 3923.21.0080, 3923.21.0095, and
as an NME country in all past The ITC will preliminarily determine, 3923.29.0000. If entered not closed on
antidumping duty investigations and no later than August 13, 2007, whether one end or in roll form, laminated
administrative reviews. In accordance there is a reasonable indication that woven sacks may be classifiable under
with section 771(18)(C)(i) of the Act, imports of LWS from the PRC are HTSUS subheading 5903.90.2500 and
any determination that a country is an materially retarding the establishment of 3921.19.0000. Although HTSUS
NME country shall remain in effect until a U.S. industry, or whether such an
revoked by the administering authority. subheadings are provided for
industry is materially injured or convenience and customs purposes, the
See Tapered Roller Bearings and Parts threatened with material injury by
Thereof, Finished and Unfinished, written description of the scope of this
reason of such imports. See section investigation is dispositive.
(TRBs) From the People’s Republic of
703(a)(2) of the Act. A negative ITC [FR Doc. E7–14375 Filed 7–24–07; 8:45 am]
China: Preliminary Results of 2001–
determination will result in the
2002 Administrative Review and Partial BILLING CODE 3510–DS–S
Rescission of Review, 68 FR 7500, 7500– investigation being terminated;
rwilkins on PROD1PC63 with NOTICES

1 (February 14, 2003), unchanged in otherwise, the investigation will 1 ‘‘Paper suitable for high quality print graphics,’’

TRBs from the People’s Republic of proceed according to statutory and as used herein, means paper having an ISO
China: Final Results of 2001–2002 regulatory time limits. brightness of 82 or higher and a Sheffield
Smoothness of 250 or less. Coated free sheet is an
Administrative Review, 68 FR 70488, This notice is issued and published example of a paper suitable for high quality print
70488–89 (December 18, 2003). pursuant to section 777(i) of the Act. graphics.

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