89 FR 188 pgs. 79248-79250 - Aluminum Lithographic Printing Plates From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Determination of Critical Circumstances

Type: NOTICEVolume: 89Number: 188Pages: 79248 - 79250
Docket number: [C-570-157]
FR document: [FR Doc. 2024-22156 Filed 9-26-24; 8:45 am]
Agency: Commerce Department
Sub Agency: International Trade Administration
Official PDF Version:  PDF Version
Pages: 79248, 79249, 79250

[top] page 79248

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-157]

Aluminum Lithographic Printing Plates From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Determination of Critical Circumstances

AGENCY:

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

SUMMARY:

The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of aluminum lithographic printing plates (printing plates) from the People's Republic of China (China). The period of investigation (POI) is January 1, 2022, through December 31, 2022.

DATES:

Applicable September 27, 2024.

FOR FURTHER INFORMATION CONTACT:

Ajay Menon, AD/CVD Operations, Office IX, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0208.

SUPPLEMENTARY INFORMATION:

Background

On March 1, 2024, Commerce published its Preliminary Determination in the Federal Register and invited interested parties to comment. 1 On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days. 2 The deadline for the final determination is now September 20, 2024. For a complete discussion of the events that followed the Preliminary Determination, see the Issues and Decision Memorandum. 3

Footnotes:

1 ? See Aluminum Lithographic Printing Plates from the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 89 FR 15134 (March 1, 2024) ( Preliminary Determination ), and accompanying Preliminary Decision Memorandum (PDM).

2 ? See Memorandum, "Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings," dated July 22, 2024.

3 ? See Memorandum, "Decision Memorandum for the Final Affirmative Determination in the Countervailing Duty Investigation of Aluminum Lithographic Printing Plates from the People's Republic of China," dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).

The Issues and Decision Memorandum is a public document and is made available to the public 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 Issues and Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.

Scope of the Investigation

The merchandise covered by the scope of this investigation are printing plates from China. For a complete description of the scope of this investigation, see Appendix I.

Scope Comments

We received no comments from interested parties on the scope of the investigation as it appeared in the Preliminary Determination. Therefore, we made no changes to the scope of the investigation.

Verification

As provided in section 782(i) of the Tariff Act of 1930, as amended (the Act), in March 2024, Commerce conducted verification of the subsidy information reported by Fujifilm Printing Plate (China) Co., Ltd. (FFPS) and its cross-owned affiliate Fujifilm (China) Investment Co., Ltd. 4

Footnotes:

4 ? See Memorandum, "Verification of the Questionnaire Responses of Fujifilm Printing Plate (China) Co., Ltd. and Fujifilm (China) Investment Co., Ltd.," June 10, 2024.

Analysis of Subsidy Programs and Comments Received

The subsidy programs under investigation and the issues raised in the case and rebuttal briefs by the parties in this investigation are discussed in the Issues and Decision Memorandum. For a list of the issues raised by interested parties and addressed in the Issues and Decision Memorandum, see Appendix II.

Methodology

Commerce conducted this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be 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 For a full description of the methodology underlying our final determination, see the Issues and Decision Memorandum.

Footnotes:

5 ? See sections 771(5)(B) and (D) of the Act regarding financial contribution; see also section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.

In making this final determination, Commerce relied, in part, on facts otherwise available, including with an adverse inference, pursuant to sections 776(a) and (b) of the Act. For a full discussion of our application of adverse facts available (AFA), see the Preliminary Determination ? 6 and the Issues and Decision Memorandum at the section entitled "Uses of Facts Available and Application of Adverse Inferences."

Footnotes:

6 ? See Preliminary Determination PDM at 4-42.

Changes Since the Preliminary Determination


[top] Based on our review and analysis of the information at verification and comments received from interested parties, we made changes to the subsidy rate calculations for FFPS. For a discussion of these changes, see the Issues and Decision Memorandum. page 79249

Final Affirmative Determination of Critical Circumstances, in Part

Commerce preliminarily determined, in accordance with sections 703(e)(1)(A) and (B) of the Act, and 19 CFR 351.206, that critical circumstances exist with respect to imports of subject merchandise for FFPS and Shanghai National Ink Co. Ltd. (Shanghai National). 7 For this final determination, in accordance with section 705(a)(2) of the Act as well as our analysis of comments received regarding our affirmative preliminary determination of critical circumstances, in part, 8 Commerce continues to find that critical circumstances exist with respect to imports of subject merchandise for FFPS and Shanghai National, and do not exist with respect to imports of subject merchandise for all other exporters and producers. For a full description of the methodology and results of our critical circumstances analysis, see the Issues and Decision Memorandum.

Footnotes:

7 ? See Aluminum Lithographic Printing Plates From the People's Republic of China: Preliminary Determination of Critical Circumstances, in Part, in the Countervailing Duty Investigation, 89 FR 24433 (April 8, 2024) ( Preliminary Critical Circumstances Determination ).

8 ? See Issues and Decision Memorandum at Comment 3.

All-Others Rate

Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will determine an all-others rate equal to the weighted-average countervailable subsidy rates established for exporters and/or producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. We continue to assign a rate based entirely on facts available to Shanghai National. Therefore, the only rate that that is not zero, de minimis, or based entirely on facts otherwise available is the rate calculated for FFPS. Consequently, we continue to assign the rate calculated for FFPS as the rate for all other producers and exporters, pursuant to section 705(c)(5)(A)(i) of the Act.

Final Determination

Commerce determines that the following estimated countervailable subsidy rates exist for the period January 1, 2022, through December 31, 2022:

Company Subsidy rate (percent ad valorem )
Fujifilm Printing Plate (China) Co., Ltd? 9 35.66
Shanghai National Ink Co. Ltd *?229.54
All Others 35.66
*?Rate based on AFA.

Disclosure

Commerce intends to disclose to interested parties the calculations and analysis performed in this final determination within five days of any 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).

Footnotes:

9 ?As discussed in the Preliminary Decision Memorandum, Commerce has found the following company to be cross-owned with FFPS: Fujifilm (China) Investment Co., Ltd.

Continuation of Suspension of Liquidation

As a result of our Preliminary Determination, and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of entries of subject merchandise from China that were entered, or withdrawn from warehouse, for consumption, on or after March 1, 2024, the date of the publication of the Preliminary Determination in the Federal Register . 10 Because we preliminarily determined that critical circumstances existed with respect to imports of subject merchandise from FFPS and Shanghai National, we instructed CBP to suspend such entries on or after December 1, 2023, which is 90 days prior to the date of the publication of the Preliminary Determination in the Federal Register . 11 In accordance with section 703(d) of the Act, we instructed CBP to discontinue the suspension of liquidation of all entries of subject merchandise entered or withdrawn from warehouse, on or after June 29, 2024, the final day of provisional measures, but to continue the suspension of liquidation of all entries of subject merchandise on or before June 28, 2024.

Footnotes:

10 ? See Preliminary Determination, 89 FR at 15135.

11 ? See Preliminary Critical Circumstances Determination, 89 FR at 24435.

If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a countervailing duty (CVD) order, reinstate the suspension of liquidation under section 706(a) of the Act, as appropriate, and require a cash deposit of estimated countervailing duties for entries of subject merchandise in the amounts indicated above. 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 cancelled.

ITC Notification

In accordance with section 705(d) of the Act, we will notify the ITC of our final affirmative determination that countervailable subsidies are being provided to producers and exporters of printing plates from China. Because the final determination is affirmative, in accordance with section 705(b) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of printing plates from China no later than 45 days after our final determination. 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. If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue a CVD order directing CBP to assess, upon further instruction by Commerce, CVDs on all imports of the subject merchandise that are entered, or withdrawn, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the "Continuation of Suspension of Liquidation" section.

Administrative Protective Order


[top] In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to an 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. page 79250

Notification to Interested Parties

This determination is issued and published in accordance with sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

Dated: September 20, 2024.

Ryan Majerus,

Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

The merchandise covered by this investigation is aluminum lithographic printing plates. Aluminum lithographic printing plates consist of a flat substrate containing at least 90 percent aluminum. The aluminum-containing substrate is generally treated using a mechanical, electrochemical, or chemical graining process, which is followed by one or more anodizing treatments that form a hydrophilic layer on the aluminum-containing substrate. An image-recording, oleophilic layer that is sensitive to light, including but not limited to ultra-violet, visible, or infrared, is dispersed in a polymeric binder material that is applied on top of the hydrophilic layer, generally on one side of the aluminum lithographic printing plate. The oleophilic light-sensitive layer is capable of capturing an image that is transferred onto the plate by either light or heat. The image applied to an aluminum lithographic printing plate facilitates the production of newspapers, magazines, books, yearbooks, coupons, packaging, and other printed materials through an offset printing process, where an aluminum lithographic printing plate facilitates the transfer of an image onto the printed media. Aluminum lithographic printing plates within the scope of this investigation include all aluminum lithographic printing plates, irrespective of the dimensions or thickness of the underlying aluminum substrate, whether the plate requires processing after an image is applied to the plate, whether the plate is ready to be mounted to a press and used in printing operations immediately after an image is applied to the plate, or whether the plate has been exposed to light or heat to create an image on the plate or remains unexposed and is free of any image.

Subject merchandise also includes aluminum lithographic printing plates produced from an aluminum sheet coil that has been coated with a light-sensitive image-recording layer in a subject country and that is subsequently unwound and cut to the final dimensions to produce a finished plate in a third country (including the United States), or exposed to light or heat to create an image on the plate in a third country (including in a foreign trade zone within the United States).

Excluded from the scope of this investigation are lithographic printing plates manufactured using a substrate produced from a material other than aluminum, such as rubber or plastic.

Aluminum lithographic printing plates are currently classifiable under Harmonized Tariff of the United States (HTSUS) subheadings 3701.30.0000 and 3701.99.6060. Further, merchandise that falls within the scope of this investigation may also be entered into the United States under HTSUS subheadings 3701.99.3000 and 8442.50.1000. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary

II. Background

III. Period of Investigation

IV. Final Critical Circumstances Determination

V. Subsidies Valuation Information

VI. Interest Rates and Benchmarks

VII. Use of Facts Available and Adverse Inferences

VIII. Analysis of Programs

IX. Discussion of the Issues

Comment 1: Whether Commerce Made a Ministerial Error in the Calculation of the Rate Applicable to FFPS for the Provision of Electricity for Less Than Adequate Remuneration (LTAR)

Comment 2: Whether Commerce Should Attribute Export Subsidies Received by the JRT Companies to FFPS

Comment 3: Whether Commerce Should Make a Negative Finding of Critical Circumstances for FFPS

Comment 4: Whether Commerce's Decision To Countervail the Provision of Aluminum Sheet and Aluminum Foil for LTAR Is in Accordance With Law

Comment 5: Whether Commerce's Application of Adverse Facts Available to the Export Buyer's Credit Program Is in Accordance With Law

Comment 6: Whether Commerce's Countervailing of the Provision of Electricity for LTAR Is in Accordance With Law

Comment 7: Whether Commerce's Determinations Regarding Other Subsidies Exceed the Lawful Scope of This Investigation

X. Recommendation

[FR Doc. 2024-22156 Filed 9-26-24; 8:45 am]

BILLING CODE 3510-DS-P