Paper Shopping Bags: New AD/CVD Investigations Deadlines & Scope

The Commerce Department issued notices in the Federal Register on its recently initiated antidumping duty investigations on paper shopping bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey and Vietnam (A-555-002, A-570-152, A-301-805, A-533-917, A-557-825, A-471-808, A-583-872, A-489- 849, A-552-836), and its countervailing duty investigations on paper shopping bags from China and India (C-570-153, C-533-918). The CVD investigation covers entries for the calendar year 2022. The AD investigations for Cambodia, Colombia, India, Malaysia, Portugal, Taiwan and Turkey cover entries April 1, 2022, through March 31, 3023, and for China and Vietnam they cover entries Oct. 1, 2022, through March 31, 2023.

The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized paper shopping bags are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determinations, due July 17, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, due in August for CVD and November for AD, it will set AD and/or CVD cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD and/or CVD order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CVD on importers and potentially change AD/CVD cash deposit rates.

AD/CVD Respondent Selection

Commerce will send quantity and value questionnaires to each potential respondent, and will base respondent selection on the responses it receives. Exporters that don't get a quantity and value questionnaire can submit one using the forms available on Commerce's website. Responses are due by July 5.

Scope of the AD/CVD Investigations

"The products within the scope of these investigations are paper shopping bags with handles of any type, regardless of whether there is any printing, regardless of how the top edges are finished ( e.g., folded, serrated, or otherwise finished), regardless of color, and regardless of whether the top edges contain adhesive or other material for sealing closed. Subject paper shopping bags have a width of at least 4.5 inches and depth of at least 2.5 inches.

"Paper shopping bags typically are made of kraft paper but can be made from any type of cellulose fiber, paperboard, or pressboard with a basis weight less than 300 grams per square meter (GSM).

"A non-exhaustive illustrative list of the types of handles on shopping bags covered by the scope include handles made from any materials such as twisted paper, flat paper, yarn, ribbon, rope, string, or plastic, as well as die-cut handles (whether the punchout is fully removed or partially attached as a flap).

"Excluded from the scope are:

• Paper sacks or bags that are of a 1/6 or 1/7 barrel size ( i.e., 11.5–12.5 inches in width, 6.5–7.5 inches in depth, and 13.5–17.5 inches in height) with flat paper handles or die-cut handles;
• Paper sacks or bags with die-cut handles, a grams per square meter paper weight of less than 86 GSM, and a height of less than 11.5 inches; and
• Shopping bags (i) with non-paper handles made wholly of woven ribbon or other similar woven fabric and (ii) that are finished with folded tops or for which tied knots or t-bar aglets (made of wood, metal, or plastic) are used to secure the handles to the bags.

"The above-referenced dimensions are provided for paper bags in the opened position. The height of the bag is the distance from the bottom fold edge to the top edge ( i.e., excluding the height of handles that extend above the top edge). The depth of the bag is the distance from the front of the bag edge to the back of the bag edge (typically measured at the bottom of the bag). The width of the bag is measured from the left to the right edges of the front and back panels (upon which the handles typically are located).

"The merchandise is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 4819.30.0040 and 4819.40.0040. The HTSUS subheadings are provided for convenience and customs purposes only; the written description of the scope is dispositive."

Investigations Timetable

These deadlines may be, and usually are, extended. The Commerce Department fact sheet on the initiation of these investigations is (here). See 2306010050 for a summary of the petition requesting these investigations.