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###### Department of Commerce

###### International Trade Administration

          - [C-555-006]

# AGENCY:

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

# DATES:

Applicable November 12, 2024.

# FOR FURTHER INFORMATION CONTACT:

Shane Subler, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-6241.

# SUPPLEMENTARY INFORMATION:

## The Petition

                    On October 21, 2024, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition concerning imports of paper file folders from Cambodia filed in proper form on behalf of the Coalition of Domestic Folder Manufacturers (the petitioner),[1]                                          the members of which are domestic producers of paper file folders.[2]                                          The CVD Petition was accompanied by antidumping duty (AD) petitions concerning imports of paper file folders from Cambodia and Sri Lanka.[3] 

                    Between October 25 and 28, 2024, Commerce requested supplemental                           ( print page 91332)                        information pertaining to certain aspects of the Petition.[4]                                          Between October 29 and November 1, 2024, the petitioner filed timely responses to these requests for additional information.[5] 

In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that the Government of Cambodia (GOC) is providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of paper file folders from Cambodia, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing paper file folders in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating a CVD investigation, the Petition was accompanied by information reasonably available to the petitioner supporting its allegations.

                    Commerce finds that the petitioner filed the Petition on behalf of the domestic industry, because the petitioner is an interested party, as defined in section 771(9)(F) of the Act.[6]                                          Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested CVD investigation.[7] 

## Period of Investigation

                    Because the Petition was filed on October 21, 2024, the period of investigation for the CVD investigation is January 1, 2023, through December 31, 2023.[8] 

## Scope of the Investigation

                    The products covered by this investigation are paper file folders from Cambodia. For a full description of the scope of this investigation,                     *see*                     the appendix to this notice.                

## Comments on the Scope of the Investigation

                    As discussed in the                     *Preamble*                     to Commerce's regulations, we are setting aside a period for interested parties to raise issues regarding product coverage (                    *i.e.,*                     scope).[9]                                          Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information, all such factual information should be limited to public information.[10]                                          To facilitate preparation of its questionnaire, Commerce requests that scope comments be submitted by 5:00 p.m. Eastern Time (ET) on December 2, 2024, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on December 12, 2024, which is 10 calendar days from the initial comment deadline.                

Commerce requests that any factual information that parties consider relevant to the scope of the investigation be submitted during that time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party must contact Commerce and request permission to submit the additional information. All scope comments must be filed simultaneously on the records of the concurrent AD and CVD investigations.

## Filing Requirements

                    All submissions to Commerce must be filed electronically via Enforcement and Compliance's Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS), unless an exception applies.[11]                                          An electronically filed document must be received successfully in its entirety by the time and date it is due.                

## Consultations

                    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified the GOC of the receipt of the Petition and provided an opportunity for consultations with respect to the Petition.[12]                                          The GOC did not request consultations.                

## Determination of Industry Support for the Petition

Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) at least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, Commerce shall: (i) poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the “industry.”

                    Section 771(4)(A) of the Act defines the “industry” as the producers as a whole of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs Commerce to look to producers and workers who produce the domestic like product. The U.S. International Trade Commission (ITC), which is responsible for determining whether “the domestic industry” has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both Commerce and the ITC apply the same statutory definition regarding the domestic like product,[13]                                          they do so for different purposes and pursuant to a separate and distinct authority. In addition, Commerce's determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law.[14] 

                    Section 771(10) of the Act defines the domestic like product as “a product which is like, or in the absence of like,                           ( print page 91333)                        most similar in characteristics and uses with, the article subject to an investigation under this title.” Thus, the reference point from which the domestic like product analysis begins is “the article subject to an investigation” (                    *i.e.,*                     the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition).                

                    With regard to the domestic like product, the petitioner does not offer a definition of the domestic like product distinct from the scope of the investigation.[15]                                          Based on our analysis of the information submitted on the record, we have determined that paper file folders, as defined in the scope, constitute a single domestic like product, and we have analyzed industry support in terms of that domestic like product.[16] 

                    In determining whether the petitioner has standing under section 702(c)(4)(A) of the Act, we considered the industry support data contained in the Petition with reference to the domestic like product as defined in the “Scope of the Investigation,” in the appendix to this notice. To establish industry support, the petitioner provided the 2023 total shipment values of the domestic like product for U.S. producers that support the Petitions and compared this to the estimated total shipment values of the domestic like product for the entire domestic industry.[17]                                          Because total industry production data for the domestic like product for 2023 are not reasonably available to the petitioner, and the petitioner has established that shipments are a reasonable proxy for production data,[18]                                          we have relied on data provided by the petitioner for purposes of measuring industry support.[19] 

                    Our review of the data provided in the Petition, the General Issues Supplement, and other information readily available to Commerce indicates that the petitioner has established industry support for the Petition.[20]                                          First, the Petition established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, Commerce is not required to take further action in order to evaluate industry support (                    *e.g.,*                     polling).[21]                                          Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petition account for at least 25 percent of the total production of the domestic like product.[22]                                          Finally, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) who support the Petition account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition.[23]                                          Accordingly, Commerce determines that the Petition was filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act.[24] 

## Injury Test

Because Cambodia is a “Subsidies Agreement Country” within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to this investigation. Accordingly, the ITC must determine whether imports of the subject merchandise from Cambodia materially injure, or threaten material injury to, a U.S. industry.

## Allegations and Evidence of Material Injury and Causation

                    The petitioner alleges that imports of the subject merchandise are benefiting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. In addition, the petitioner alleges that subject imports from Cambodia individually exceed the negligibility threshold provided for under section 771(24)(A) of the Act.[25]                                          Further, in the instance of a CVD petition, section 771(24)(B) of the Act provides that imports of subject merchandise from developing and least developed countries must exceed the negligibility threshold of four percent. The petitioner also demonstrates that imports from Cambodia, which has been designated as a least developed country under section 771(36)(B) of the Act, exceed the negligibility threshold of four percent.[26] 

                    The petitioner contends that the industry's injured condition is illustrated by the significant and increasing volume of subject imports; reduced market share; underselling and price depression and/or suppression; lost sales and revenues; and declines in the domestic industry's production, U.S. shipments, net sales, and financial performance.[27]                                          We assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, cumulation, as well as negligibility, and we have determined that these allegations are properly supported by adequate evidence and meet the statutory requirements for initiation.[28] 

## Initiation of CVD Investigation

Based upon the examination of the Petition and supplemental responses, we find that they meet the requirements of section 702 of the Act. Therefore, we are initiating a CVD investigation to determine whether imports of paper file folders benefit from countervailable subsidies conferred by the GOC. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 65 days after the date of this initiation.

                    Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on 12 of the 12 programs alleged by the petitioner. For a full discussion of the basis for our decision to initiate on each program,                     *see*                     the Cambodia CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS.                

## Respondent Selection

                    In the Petition, the petitioner identified four companies in Cambodia as producers and/or exporters of paper file folders.[29]                                          Commerce intends to follow its standard practice in CVD investigations and calculate company-specific subsidy rates in this investigation. In the event that Commerce determines that the number                           ( print page 91334)                        of companies is large and it cannot individually examine each company based on Commerce's resources, Commerce normally selects mandatory respondents in CVD investigations using U.S. Customs and Border Protection (CBP) entry data for U.S. imports under the appropriate Harmonized Tariff Schedule of the United States (HTSUS) subheading(s) listed in the “Scope of the Investigations” in the appendix.                

                    On November 7, 2024, Commerce released CBP data on imports of paper file folders from Cambodia under administrative protective order (APO) to all parties with access to information protected by APO and indicated that interested parties wishing to comment on CBP data and/or respondent selection must do so within three business days of the publication date of the notice of initiation of this investigation.[30]                                          Comments must be filed electronically using ACCESS. An electronically-filed document must be received successfully in its entirety via ACCESS by 5:00 p.m. ET on the specified deadline. Commerce will not accept rebuttal comments regarding the CBP data or respondent selection.                

                    Interested parties must submit applications for disclosure under administrative protective order (APO) in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on Commerce's website at                     *https://www.trade.gov/​administrative-protective-orders.*

## Distribution of Copies of the Petition

In accordance with section 702(b)(4)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the GOC via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).

## ITC Notification

Commerce will notify the ITC of its initiation, as required by section 702(d) of the Act.

## Preliminary Determination by the ITC

                    The ITC will preliminarily determine, within 45 days after the date on which the Petition was filed, whether there is a reasonable indication that imports of paper file folders from Cambodia are materially injuring, or threatening material injury to, a U.S. industry.[31]                                          A negative ITC determination will result in the investigation being terminated.[32]                                          Otherwise, this CVD investigation will proceed according to statutory and regulatory time limits.                

## Submission of Factual Information

                    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors of production under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by Commerce; and (v) evidence other than factual information described in (i)-(iv). Section 351.301(b) of Commerce's regulations requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted [33]                                          and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct.[34]                                          Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on the type of factual information being submitted. Interested parties should review the regulations prior to submitting factual information in this investigation.                

## Extensions of Time Limits

                    Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by Commerce. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301, or as otherwise specified by Commerce.[35]                                          For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, Commerce may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, we will inform parties in a letter or memorandum of the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, standalone submission; under limited circumstances we will grant untimely filed requests for the extension of time limits, where we determine, based on 19 CFR 351.302, that extraordinary circumstances exist. Parties should review Commerce's regulations concerning the extension of time limits and the                     *Time Limits Final Rule*                     prior to submitting factual information in this investigation.[36] 

## Certification Requirements

                    Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.[37]                                          Parties must use the certification formats provided in 19 CFR 351.303(g).[38]                                          Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements.                

## Notification to Interested Parties

                    Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. Parties wishing to participate in this investigation should ensure that they meet the requirements of 19 CFR 351.103(d) (                    *e.g.,*                     by filing the required letters of appearance). Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).[39] 

This notice is issued and published pursuant to sections 702 and 777(i) of the Act, and 19 CFR 351.203(c).

Dated: November 12, 2024.

Abdelali Elouaradia,

Deputy Assistant Secretary for Enforcement and Compliance.

## Appendix

## Scope of the Investigation

                        The products within the scope of this investigation are file folders consisting primarily of paper, paperboard, pressboard, or other cellulose material, whether coated or                               ( print page 91335)                            uncoated, that has been folded (or creased in preparation to be folded), glued, taped, bound, or otherwise assembled to be suitable for holding documents. The scope includes all such folders, regardless of color, whether or not expanding, whether or not laminated, and with or without tabs, fasteners, closures, hooks, rods, hangers, pockets, gussets, or internal dividers. The term “primarily” as used in the first sentence of this scope means 50 percent or more of the total product weight, exclusive of the weight of fasteners, closures, hooks, rods, hangers, removable tabs, and similar accessories, and exclusive of the weight of the packaging.                    

Subject folders have the following dimensions in their folded and closed position: lengths and widths of at least 8 inches and no greater than 17 inches, regardless of depth.

The scope covers all varieties of folders, including but not limited to manila folders, hanging folders, fastener folders, classification folders, expanding folders, pockets, jackets, and wallets.

Excluded from the scope are:
    - mailing envelopes with a flap bearing one or more adhesive strips that can be used permanently to seal the entire length of a side such that, when sealed, the folder is closed on all four sides;
    - binders, with two or more rings to hold documents in place, made of paperboard or pressboard encased entirely in plastic;
    - binders consisting of a front cover, back cover, and spine, with or without a flap; to be excluded, a mechanism with two or more metal rings must be included on or adjacent to the interior spine;
    - non-expanding folders with a depth exceeding 2.5 inches and that are closed or closeable on the top, bottom, and all four sides ( e.g.,                          boxes or cartons);                    
    - expanding folders that have: (1) 13 or more pockets; (2) a flap covering the top; (3) a latching mechanism made of plastic and/or metal to close the flap; and (4) an affixed plastic or metal carry handle;
    - folders that have an outer surface (other than the gusset, handles, and/or closing mechanisms, if any) that is covered entirely with fabric, leather, and/or faux leather;
    - fashion folders, which are defined as folders with all of the following characteristics: (1) plastic lamination covering the entire exterior of the folder; (2) printing, foil stamping, embossing ( i.e.,                          raised relief patterns that are recessed on the opposite side), and/or debossing (                         i.e.,                          recessed relief patterns that are raised on the opposite side), covering the entire exterior surface area of the folder; (3) at least two visible and printed or foil stamped colors (other than the color of the base paper), each of which separately covers no less than 10 percent of the entire exterior surface area; and (4) patterns, pictures, designs, or artwork covering no less than thirty percent of the exterior surface area of the folder;                    
    - portfolios, which are folders having: (1) a width of at least 16 inches when open flat; (2) no tabs or dividers; and (3) one or more pockets that are suitable for holding letter size documents and that cover at least 15 percent of the surface area of the relevant interior side or sides; and
    - report covers, which are folders having: (1) no tabs, dividers, or pockets; and (2) one or more fasteners or clips, each of which is permanently affixed to the center fold, to hold papers securely in place.

Imports of the subject merchandise are provided for under Harmonized Tariff Schedule of the United States (HTSUS) category 4820.30.0040. Subject imports may also enter under other HTSUS classifications. While the HTSUS subheading is provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.

# Footnotes

1.                             The members of the Coalition of Domestic Folder Manufacturers (the Coalition) are: Smead Manufacturing Company, Inc. (Smead) and TOPS Products LLC (TOPS).                    
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2.                                                     *See*                         Petitioners' Letter, “Petitions for the Imposition of Antidumping and Countervailing Duties,” dated October 21, 2024 (Petitions).                    
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3.                                                     *Id.*
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4.                                                     *See*                         Commerce's Letter, “Supplemental Questions,” dated October 25, 2024;                         *see also*                         Commerce's Letter, “Supplemental Questions,” dated October 28, 2024.                    
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5.                                                     *See*                         Petitioner's Letter, “Response of Petitioner to Volume I Supplemental Questionnaire,” dated October 29, 2024 (General Issues Supplement);                         *see also*                         Petitioner's Letter, “Response of Petitioner to Volume III Supplemental Questionnaire,” dated November 1, 2024.                    
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6.                             Smead and TOPS are interested parties under section 771(9)(C) of the Act, while the Coalition is an interested party under section 771(9)(F) of the Act.                    
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7.                                                     *See*                         section on “Determination of Industry Support for the Petition,”                         *infra.*
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8.                                                     *See*19 CFR 351.204(b)(2).                    
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9.                                                     *See Antidumping Duties; Countervailing Duties; Final Rule,*62 FR 27296, 27323 (May 19, 1997) (                        *Preamble*).                    
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10.                                                     *See*19 CFR 351.102(b)(21) (defining “factual information”).                    
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11.                                                     *See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures,*76 FR 39263 (July 6, 2011);                         *see also Enforcement and Compliance; Change of Electronic Filing System Name,*79 FR 69046 (November 20, 2014), for details of Commerce's electronic filing requirements, effective August 5, 2011. Information on using ACCESS can be found at                         *https://access.trade.gov/​help.aspx*                         and a handbook can be found at                         *https://access.trade.gov/​help/​Handbook_​on_​Electronic_​Filing_​Procedures.pdf.*
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12.                                                     *See*                         Commerce's Letter, “Invitation for Consultation to Discuss the Countervailing Duty Petition,” dated October 22, 2024.                    
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13.                                                     *See*                         section 771(10) of the Act.                    
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14.                                                     *See USEC, Inc.*                         v.                         *United States,*                         132 F. Supp. 2d 1, 8 (CIT 2001) (citing                         *Algoma Steel Corp., Ltd.*                         v.                         *United States,*                         688 F. Supp. 639, 644 (CIT 1988),                         *aff'd Algoma Steel Corp., Ltd.*                         v.                         *United States,*                         865 F.2d 240 (Fed. Cir. 1989)).                    
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15.                             For a discussion of the domestic like product analysis as applied to this case and information regarding industry support,                         *see*                         Checklist, “Countervailing Duty Investigation Initiation Checklist: Paper File Folders from Cambodia,” dated concurrently with, and hereby adopted by, this notice (Cambodia CVD Initiation Checklist), at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Paper File Folders from Cambodia and Sri Lanka (Attachment II). This checklist is on file electronically via ACCESS.                    
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16.                                                     *See*                         Attachment II of the Cambodia CVD Initiation Checklist.                    
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17.                                                     *Id.*
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18.                                                     *Id.*
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19.                             For further discussion,                         *see*                         Attachment II of the Cambodia CVD Initiation Checklist.                    
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20.                                                     *Id.*
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21.                                                     *Id.; see also*                         section 702(c)(4)(D) of the Act.                    
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22.                                                     *See*                         Attachment II of the Cambodia CVD Initiation Checklist.                    
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23.                                                     *Id.*
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24.                                                     *Id.*
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25.                             For further information regarding negligibility and the injury allegation,                         *see*                         Cambodia CVD Initiation Checklist at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Paper File Folders from Cambodia and Sri Lanka (Attachment III).                    
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26.                                                     *Id.*
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27.                                                     *Id.*
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28.                                                     *Id.*
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29.                                                     *See*                         Petition at Volume I (page 18 and Exhibit I-18);                         *see also*                         General Issues Supplement at 1-2 and Exhibit I-S1.                    
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30.                                                     *See*                         Memorandum, “Release of U.S. Customs and Border Protection Entry Data,” dated November 7, 2024.                    
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31.                                                     *See*                         section 703(a)(1) of the Act.                    
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32.                                                     *Id.*
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33.                                                     *See*19 CFR 351.301(b).                    
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34.                                                     *See*19 CFR 351.301(b)(2).                    
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35.                                                     *See*19 CFR 351.302.                    
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36.                                                     *See*19 CFR 351.301;                         *see also Extension of Time Limits; Final Rule,*78 FR 57790 (September 20, 2013) (                        *Time Limits Final Rule*), available at                         *https://www.gpo.gov/​fdsys/​pkg/​FR-2013-09-20/​html/​2013-22853.htm.*
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37.                                                     *See*                         section 782(b) of the Act.                    
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38.                                                     *See Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings,*78 FR 42678 (July 17, 2013) (                        *Final Rule*);                         *see also*                         frequently asked questions regarding the                         *Final Rule,*                         available at                         *https://enforcement.trade.gov/​tlei/​notices/​factual_​info_​final_​rule_​FAQ_​07172013.pdf.*
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39.                                                     *See Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings,*88 FR 67069 (September 29, 2023).                    
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[FR Doc. 2024-26888 Filed 11-18-24; 8:45 am]

BILLING CODE 3510-DS-P