Thermoformed Molded Fiber Products From the People's Republic of China and the Socialist Republic of Vietnam: Countervailing Duty Orders

<NOTICE> DEPARTMENT OF COMMERCE <SUBAGY>International Trade Administration</SUBAGY> <DEPDOC>[C-570-183, C-552-846]</DEPDOC> <SUBJECT>Thermoformed Molded Fiber Products From the People's Republic of China and the Socialist Republic of Vietnam: Countervailing Duty Orders</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Enforcement and Compliance, International Trade Administration, Department of Commerce. <SUM> <HD SOURCE="HED">SUMMARY:</HD> Based on affirmative final determinations by the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC), Commerce is issuing the countervailing duty (CVD) orders on thermoformed molded fiber products (molded fiber products) from the People's Republic of China (China) and the Socialist Republic of Vietnam (Vietnam). </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> Applicable January 27, 2026. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Allison Hollander (China), Office IX, telephone: (202) 482-2805; and Thomas Martin (Vietnam), Office IV, telephone: (202) 482-3936; AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Background</HD> In accordance with sections 705(d) and 777(i) of the Tariff Act of 1930, as amended (the Act), on September 30, 2025, Commerce published its affirmative final determinations that countervailable subsidies are being provided to producers and exporters of molded fiber products China and Vietnam. <SU>1</SU> <FTREF/> <FTNT> <SU>1</SU>   <E T="03">See Thermoformed Molded Fiber Products from the People's Republic of China: Final Affirmative Countervailing Duty Determination,</E> 90 FR 46787 (September 30, 2025) ( <E T="03">China Final Determination</E> ); <E T="03">see also Thermoformed Molded Fiber Products From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination,</E> 90 FR 46805 (September 30, 2025) ( <E T="03">Vietnam Final Determination</E> ). </FTNT> On January 5, 2026, pursuant to section 705(d) of the Act, the ITC notified Commerce of its final affirmative determinations that an industry in the United States is materially injured by reason of subsidized imports of molded fiber products from China and Vietnam, within the meaning of section 705(b)(1)(A)(i) of the Act, and its determination that critical circumstances exist with respect to imports of molded fiber products from Vietnam. <SU>2</SU> <FTREF/> <FTNT> <SU>2</SU>   <E T="03">See</E> ITC's Letter, “Notification of ITC Final Determination,” dated January 5, 2026 (ITC Notification Letter). </FTNT> <HD SOURCE="HD1">Scope of the Orders</HD> The product covered by these orders is molded fiber products from China and Vietnam. For a complete description of the scope of these orders, <E T="03">see</E> the appendix to this notice. <HD SOURCE="HD1">Countervailing Duty Orders</HD> Based on the ITC's affirmative final determinations that an industry in the United States is materially injured within the meaning of section 705(b)(1)(A)(i) of the Act by reason of subsidized imports of molded fiber products from China and Vietnam, <SU>3</SU> <FTREF/> in accordance with section 705(c)(2) of the Act, Commerce is issuing these CVD orders. Moreover, because the ITC determined that imports of molded fiber products from China and Vietnam are materially injuring a U.S. industry, unliquidated entries of such merchandise entered, or withdrawn from warehouse, for consumption, are subject to the assessment of countervailing duties. <FTNT> <SU>3</SU>   <E T="03">Id.</E> </FTNT> Furthermore, the ITC found that critical circumstances exist with respect to imports of molded fiber from Vietnam subject to Commerce's affirmative critical circumstances finding within the meaning of section 705(b)(4)(A) of the Act. As a result of Commerce's affirmative critical circumstances determination under section 705(a)(2) of the Act and the ITC's affirmative critical circumstances determination under section 705(b)(4)(A) of the Act, retroactive duties will be applied to the relevant imports for a period of 90 days prior to the suspension of liquidation ( <E T="03">i.e.,</E> 90 days prior to the publication of the <E T="03">Vietnam Preliminary Determination</E> ). <SU>4</SU> <FTREF/> <FTNT> <SU>4</SU>   <E T="03">See Thermoformed Molded Fiber Products from the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination,</E> 90 FR 12126 (March 14, 2025) ( <E T="03">Vietnam Preliminary Determination</E> ) <E T="03">; see also</E> section 705(c)(4) of the Act; and Statement of Administrative Action Accompanying the Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994) at 876 (“If both agencies make affirmative critical circumstances determinations in their final investigations, retroactive duties will be applied for a period ninety days prior to suspension of liquidation.”). </FTNT> Therefore, in accordance with section 706(a) of the Act, Commerce is directing U.S. Customs Border and Protection (CBP) to continue suspending liquidation of all relevant entries of molded fiber products from China and Vietnam. Countervailing duties will be assessed on unliquidated entries of molded fiber products from Vietnam which are entered, or withdrawn from warehouse, for consumption on or after December 14, 2024, which is 90 days prior to the date of publication of the <E T="03">Vietnam Preliminary Determination.</E> <SU>5</SU> <FTREF/> Countervailing duties will be assessed on unliquidated entries of molded fiber products from China which are entered, or withdrawn from warehouse, for consumption on or after March 14, 2025, the date of publication of the <E T="03">China Preliminary Determination.</E> <SU>6</SU> <FTREF/> Countervailing duties on unliquidated entries of molded fiber products from China and Vietnam will not be assessed on entries occurring after the expiration of the provisional measures period and before the publication of the ITC's final affirmative injury determination, as further described in the “Provisional Measures” section of this notice. <FTNT> <SU>5</SU>   <E T="03">See Vietnam Preliminary Determination.</E> </FTNT> <FTNT> <SU>6</SU>   <E T="03">See Thermoformed Molded Fiber Products from the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination,</E> 90 FR 12123 (March 14, 2025) ( <E T="03">China Preliminary Determination</E> ). </FTNT> <HD SOURCE="HD1">Suspension of Liquidation and Cash Deposits</HD> In accordance with section 706 of the Act, Commerce intends to instruct CBP to reinstitute the suspension of liquidation of molded fiber products from China and Vietnam, effective on the date of publication of the ITC's final affirmative injury determination in the <E T="04">Federal Register</E> , and to assess, upon further instruction by Commerce, pursuant to section 706(a)(1) of the Act, countervailing duties on each entry of subject merchandise in an amount based on the net countervailable subsidy rates below. These instructions suspending liquidation will remain in effect until further notice. Commerce also intends, pursuant to section 706(a)(1) of the Act, to instruct CBP to require cash deposits equal to the amounts as indicated below. Accordingly, effective on the date of publication of the ITC's final affirmative injury determination in the <E T="04">Federal Register</E> , CBP will require, at the same time as importers would normally deposit estimated customs duties on the subject merchandise, a cash deposit for each entry of subject merchandise equal to the subsidy rates listed in the <E T="03">China Final Determination.</E> <SU>7</SU> <FTREF/> The all-others rates apply to all producers or exporters not specifically listed, as appropriate. <FTNT> <SU>7</SU>   <E T="03">See China Final Determination,</E> 90 FR at 46789; <E T="03">Vietnam Final Determination,</E> 90 FR at 46806; section 706(a)(3) of the Act. </FTNT> <HD SOURCE="HD1">Provisional Measures</HD> Section 703(d) of the Act states that the suspension of liquidation pursuant to an affirmative preliminary determination may not remain in effect for more than four months. Commerce published the <E T="03">Preliminary Determinations</E> on March 14, 2025. <SU>8</SU> <FTREF/> As such, the four-month period beginning on the date of the publication of the <E T="03">Preliminary Determinations</E> ended on July 11, 2025. Therefore, entries of molded fiber products from China and Vietnam made on or after July 12, 2025, and prior to the date of publication of the ITC's final injury determinations in the <E T="04">Federal Register</E> <E T="03">,</E> are not subject to the assessment of countervailing duties due to Commerce's discontinuation of the suspension of liquidation. <FTNT> <SU>8</SU>   <E T="03">See China Preliminary Determination</E> and <E T="03">Vietnam Preliminary Determination</E> (collectively, <E T="03">Preliminary Determinations</E> ). </FTNT> In accordance with section 703(d) of the Act, Commerce instructed CBP to terminate the suspension of liquidation and to liquidate, without regard to countervailing duties, unliquidated entries of molded fiber products from China and Vietnam entered, or withdrawn from warehouse, for consumption, on or after July 12, 2025, the date on which the provisional CVD measur ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 21k characters. 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