Proposed Modification to Regulation Concerning the Revocation of Antidumping and Countervailing Duty Orders, 15233-15236 [2011-6019]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 76, Number 54 (Monday, March 21, 2011)]
[Proposed Rules]
[Pages 15233-15236]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-6019]


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DEPARTMENT OF COMMERCE

International Trade Administration

19 CFR Part 351

[Docket No. 110315198-1198-01]
RIN 0625-AA86


Proposed Modification to Regulation Concerning the Revocation of 
Antidumping and Countervailing Duty Orders

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Proposed Modification to Regulation; Request for Comments.

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SUMMARY: The Department of Commerce (``the Department'') proposes to 
modify our regulations which govern the revocation of antidumping and 
countervailing duty orders, in whole or in part, and the termination of 
suspended antidumping and countervailing duty investigations. The 
modification, if adopted, would eliminate the provision for revocation 
of an antidumping or countervailing duty order with respect to 
individual exporters or producers based on those individual exporters 
or producers having received antidumping margins of zero for three 
consecutive years, or countervailing duty rates of zero for five 
consecutive years.

DATES: To be assured of consideration, comments must be received no 
later than April 20, 2011.
    Submission of Comments: As specified above, to be assured of 
consideration, comments must be received no later than April 20, 2011. 
All comments must be submitted through the Federal eRulemaking Portal 
at https://www.regulations.gov, Docket No. ITA-2011-0001, unless the 
commenter does not have access to the Internet. Commenters that do not 
have access to the Internet may submit the original and two copies of 
each set of comments by mail or hand delivery/courier. All comments 
should be addressed to Ronald K. Lorentzen, Deputy Assistant Secretary 
for Import Administration, Room 1870, Department of Commerce, 14th 
Street and Constitution Ave., NW., Washington, DC 20230. The comments 
should also be identified by Regulation Identifier Number (RIN) 0625-
AA86.
    The Department will consider all comments received before the close 
of the comment period. The Department will not accept comments 
accompanied by a request that part or all of the material be treated 
confidentially because of its business proprietary nature or for any 
other reason. All comments responding to this notice will be a matter 
of public record and will be available for inspection at Import 
Administration's Central Records Unit (Room 7046 of the Herbert C. 
Hoover Building) and online at https://www.Regulations.gov and on the 
Department's Web site at https://www.trade.gov/ia/.
    Any questions concerning file formatting, document conversion, 
access on the Internet, or other electronic filing issues should be 
addressed to Andrew Lee Beller, Import Administration Webmaster, at 
(202) 482-0866, e-mail address: webmaster-support@ita.doc.gov.

FOR FURTHER INFORMATION CONTACT: James Maeder at (202) 482-3330, Mark 
Ross at (202) 482-4794, or Jonathan Zielinski at (202) 482-4384.

SUPPLEMENTARY INFORMATION:

Background

    The Department proposes to modify its regulations that provide for 
revocation of antidumping and countervailing duty orders pursuant to 
the Tariff Act of 1930, as amended (the Act). Currently, 19 CFR 351.222 
provides requirements and procedures for the Department to determine in 
the context of an administrative review, based on an absence of dumping 
or countervailable subsidization, whether to (1) revoke an order in 
whole, or (2) partially revoke an order with respect to an individual 
exporter or producer. The Department proposes to eliminate the latter 
category of revocations as it pertains to revocations from an 
antidumping or countervailing duty order based on individual exporters 
or producers having received antidumping margins of zero for three 
consecutive years, or countervailing duty rates of zero for five 
consecutive years. The Department will retain, with some

[[Page 15234]]

conforming modifications, the former category of revocations. The 
Department is not proposing any change with respect to revocations as 
described under paragraphs (g) through (l) of 19 CFR 351.222. To 
implement this modification, the Department would withdraw 19 CFR 
351.222(b)(2) and (3) (dumping) and 351.222(c)(3) and (4) 
(countervailable subsidy), and make conforming modifications as 
necessary to the remaining paragraphs of 19 CFR 351.222.
    Company-specific revocations are not required by the Act. 
Accordingly, the Department has considered several factors in issuing 
this proposal. First, pursuant to the existing regulation, the 
Department is required to expend additional resources, including 
additional mandatory verifications, in conducting administrative 
reviews where a request for company-specific revocation is being 
considered. Second, while the Department annually conducts 
administrative reviews of hundreds of foreign companies subject to 
antidumping or countervailing duty orders, only a small fraction of the 
reviewed companies are ultimately found to be eligible for a company-
specific revocation under the regulations at issue here. Third, to the 
extent that eligible companies maintain antidumping duty or 
countervailing duty rates of zero percent, the proposal would not 
change the amount of duties applied to entries subject to antidumping 
or countervailing duty orders. Finally, the Department has considered 
the fact that many of the companies for which reviews have been 
requested may not have the opportunity to amass the three antidumping 
rates of zero percent (demonstrating an absence of dumping for three 
consecutive years) or five countervailing duty rates of zero percent 
(demonstrating an absence of countervailable subsidies for five 
consecutive years) necessary to be eligible for a company-specific 
revocation. Pursuant to the Act, the Department frequently limits the 
examination of companies for which reviews have been requested, as it 
is not practicable to examine all companies. Companies not selected for 
review will normally receive an antidumping or countervailing duty rate 
based upon the average of the rates calculated for the individually 
reviewed companies. Rather than administering the company-specific 
revocation regulations in a manner that does not afford equitable 
opportunity to all companies to seek revocation, and in light of the 
additional factors noted, the Department proposes to eliminate the 
company-specific revocation regulations.
    In addition, the Department proposes to clarify 19 CFR 
351.222(f)(2) to make it clear that a request for revocation that does 
not conform with the requirements of paragraph (e) does not require the 
Secretary to undertake the actions provided for in paragraphs (f)(2)(i) 
through (f)(2)(vi). Finally, the Department proposes to correct a 
grammatical error in the third sentence of 19 CFR 351.222(a) (change 
``have'' to ``has'') and delete 19 CFR 351.222(m) (a transition rule 
related to the Uruguay Round Agreements Act that is no longer 
applicable).

Classification

Executive Order 12866

    The rule has been determined to be not significant for purposes of 
Executive Order 12866.

Regulatory Flexibility Act

    The Chief Counsel for Regulation has certified to the Chief Counsel 
for Advocacy of the Small Business Administration (``SBA'') under the 
provisions of the Regulatory Flexibility Act, 5 U.S.C. 605(b), that the 
proposed rule would not have a significant economic impact on a 
substantial number of small business entities. A summary of the need 
for, objectives of, and legal basis for this rule is provided in the 
preamble, and is not repeated here.
    The entities upon which this rulemaking could have an impact 
include foreign exporters and producers, some of whom are affiliated 
with U.S. companies, and U.S. importers. Some of these entities may be 
considered small entities under the SBA small business size standard. 
Although the Department is not able to estimate the number of small 
entities this proposed rule will affect, the Department anticipates 
that it will not be a substantial number. For example, while the 
Department annually conducts administrative reviews of hundreds of 
foreign companies subject to antidumping or countervailing duty orders, 
only a small fraction of the reviewed companies could be considered 
eligible for a company-specific revocation under the regulations at 
issue here (i.e., 19 CFR 351.222(b)(2) and (3) (dumping) and 
351.222(c)(3) and (4) (countervailable subsidy)). In the past five 
years, despite conducting administrative reviews of well over five 
hundred companies, only 15 companies (of various sizes) have obtained a 
company-specific revocation under the relevant portions of 19 CFR 
351.222. Also, in relation to the proposed rule's economic impact on 
small entities, the Department does not anticipate it will be 
significant because the proposed rule will have no effect on any 
antidumping or countervailing duty liability determined for any party. 
This is because the proposed rule does not involve any aspect of the 
calculation of an antidumping or countervailing duty margin. Rather, as 
explained above, the proposed rule eliminates the possibility for 
foreign exporters or producers to obtain company-specific revocations 
based upon an absence of dumping for three consecutive years or 
countervailable subsidization for five consecutive years. Consequently, 
the amount of duties applied to entries subject to antidumping or 
countervailing duty orders will not change as a result of the proposed 
rule.
    Since this proposed modification to 19 CFR 351.222, if adopted, 
will not have a significant economic impact on a substantial number of 
small entities, an Initial Regulatory Flexibility Analysis is not 
required and, therefore, has not been prepared.

Paperwork Reduction Act

    This rule does not contain a collection of information for purposes 
of the Paperwork Reduction Act of 1980, as amended (44 U.S.C. 3501 et 
seq.).

List of Subjects in 19 CFR Part 351

    Administrative practice and procedure, Antidumping, Business and 
industry, Cheese, Confidential business information, Countervailing 
duties, Freedom of information, Investigations, Reporting and 
recordkeeping requirements.

    Dated: March 8, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
    For the reasons stated, 19 CFR part 351 is proposed to be amended 
as follows:

PART 351--ANTIDUMPING AND COUNTERVAILING DUTIES

    1. The authority citation for 19 CFR part 351 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 1202 note; 19 U.S.C. 1303 
note; 19 U.S.C. 1671 et seq.; and 19 U.S.C. 3538.

    2. In Sec.  351.222, revise paragraphs (a), (b), (c), and (f), 
remove paragraph (m), and redesignate paragraph (n) as paragraph (m) to 
read as follows:


Sec.  351.222  Revocation of orders; termination of suspended 
investigations.

    (a) Introduction. ``Revocation'' is a term of art that refers to 
the end of an

[[Page 15235]]

antidumping or countervailing proceeding in which an order has been 
issued. ``Termination'' is the companion term for the end of a 
proceeding in which the investigation was suspended due to the 
acceptance of a suspension agreement. Generally, a revocation or 
termination may occur only after the Department or the Commission has 
conducted one or more reviews under section 751 of the Act. This 
section contains rules regarding requirements for a revocation or 
termination; and procedures that the Department will follow in 
determining whether to revoke an order or terminate a suspended 
investigation.
    (b) Revocation or termination based on absence of dumping. (1) In 
determining whether to revoke an antidumping duty order or terminate a 
suspended antidumping investigation, the Secretary will consider:
    (i) Whether all exporters and producers covered at the time of 
revocation by the order or the suspension agreement have sold the 
subject merchandise at not less than normal value for a period of at 
least three consecutive years; and
    (ii) Whether the continued application of the antidumping duty 
order is otherwise necessary to offset dumping.
    (2) If the Secretary determines, based upon the criteria in 
paragraphs (b)(1)(i) and (ii) of this section, that the antidumping 
duty order or suspension of the antidumping duty investigation is no 
longer warranted, the Secretary will revoke the order or terminate the 
investigation.
    (c) Revocation or termination based on absence of countervailable 
subsidy. (1)(i) In determining whether to revoke a countervailing duty 
order or terminate a suspended countervailing duty investigation, the 
Secretary will consider:
    (A) Whether the government of the affected country has eliminated 
all countervailable subsidies on the subject merchandise by abolishing 
for the subject merchandise, for a period of at least three consecutive 
years, all programs that the Secretary has found countervailable;
    (B) Whether exporters and producers of the subject merchandise are 
continuing to receive any net countervailable subsidy from an abolished 
program referred to in paragraph (c)(1)(i)(A) of this section; and
    (C) Whether the continued application of the countervailing duty 
order or suspension of countervailing duty investigation is otherwise 
necessary to offset subsidization.
    (ii) If the Secretary determines, based upon the criteria in 
paragraphs (c)(1)(i)(A) through (C) of this section, that the 
countervailing duty order or suspension of the countervailing duty 
investigation is no longer warranted, the Secretary will revoke the 
order or terminate the suspended investigation.
    (2)(i) In determining whether to revoke a countervailing duty order 
or terminate a suspended countervailing duty investigation, the 
Secretary will consider:
    (A) Whether all exporters and producers covered at the time of 
revocation by the order or the suspension agreement have not applied 
for or received any net countervailable subsidy on the subject 
merchandise for a period of at least five consecutive years; and
    (B) Whether the continued application of the countervailing duty 
order or suspension of the countervailing duty investigation is 
otherwise necessary to offset subsidization.
    (ii) If the Secretary determines, based upon the criteria in 
paragraphs (c)(2)(i)(A) and (B) of this section, that the 
countervailing duty order or the suspension of the countervailing duty 
investigation is no longer warranted, the Secretary will revoke the 
order or terminate the suspended investigation.
* * * * *
    (e) Request for revocation or termination--(1) Antidumping 
proceeding. During the third and subsequent annual anniversary months 
of the publication of an antidumping order or suspension of an 
antidumping investigation, any exporter or producer may request in 
writing that the Secretary revoke an order or terminate a suspended 
investigation under paragraph (b) of this section if the person submits 
with the request:
    (i) Certifications for all exporters and producers covered by the 
order or suspension agreement that they sold the subject merchandise at 
not less than normal value during the period of review described in 
Sec. 351.213(e)(1), and that in the future the person will not sell the 
merchandise at less than normal value; and
    (ii) Certifications for all exporters and producers covered by the 
order or suspension agreement that, during each of the consecutive 
years referred to in paragraph (b) of this section, they sold the 
subject merchandise to the United States in commercial quantities.
    (2) Countervailing duty proceeding. (i) During the third and 
subsequent annual anniversary months of the publication of a 
countervailing duty order or suspension of a countervailing duty 
investigation, the government of the affected country may request in 
writing that the Secretary revoke an order or terminate a suspended 
investigation under paragraph (c)(1) of this section if the government 
submits with the request its certification that it has satisfied, 
during the period of review described in Sec.  351.213(e)(2), the 
requirements of paragraph (c)(1)(i) of this section regarding the 
abolition of countervailable subsidy programs, and that it will not 
reinstate for the subject merchandise those programs or substitute 
other countervailable subsidy programs;
    (ii) During the fifth and subsequent annual anniversary months of 
the publication of a countervailing duty order or suspended 
countervailing duty investigation, the government of the affected 
country may request in writing that the Secretary revoke an order or 
terminate a suspended investigation under paragraph (c)(2) of this 
section if the government submits with the request:
    (A) Certifications for all exporters and producers covered by the 
order or suspension agreement that they have not applied for or 
received any net countervailable subsidy on the subject merchandise for 
a period of at least five consecutive years (see paragraph (c)(2)(i) of 
this section);
    (B) Those exporters' and producers' certifications that they will 
not apply for or receive any net countervailable subsidy on the subject 
merchandise from any program the Secretary has found countervailable in 
any proceeding involving the affected country or from other 
countervailable programs (see paragraph (c)(2)(ii) of this section); 
and
    (C) A certification from each exporter or producer that, during 
each of the consecutive years referred to in paragraph (c)(2) of this 
section, that person sold the subject merchandise to the United States 
in commercial quantities.
    (f) Procedures. (1) Upon receipt of a timely request for revocation 
or termination under paragraph (e) of this section, the Secretary will 
consider the request as including a request for an administrative 
review and will initiate and conduct a review under Sec.  351.213.
    (2) When the Secretary is considering a request for revocation or 
termination under paragraph (e) of this section, in addition to the 
requirements of Sec.  351.221 regarding the conduct of an 
administrative review, the Secretary will:
    (i) Publish with the notice of initiation under Sec.  
351.221(b)(1), notice of ``Request for Revocation of Order'' or

[[Page 15236]]

``Request for Termination of Suspended Investigation'' (whichever is 
applicable);
    (ii) Conduct a verification under Sec.  351.307;
    (iii) Include in the preliminary results of review under Sec.  
351.221(b)(4) the Secretary's decision whether there is a reasonable 
basis to believe that the requirements for revocation or termination 
are met;
    (iv) If the Secretary decides that there is a reasonable basis to 
believe that the requirements for revocation or termination are met, 
publish with the notice of preliminary results of review under Sec.  
351.221(b)(4) notice of ``Intent to Revoke Order'' or ``Intent to 
Terminate Suspended Investigation'' (whichever is applicable);
    (v) Include in the final results of review under Sec.  
351.221(b)(5) the Secretary's final decision whether the requirements 
for revocation or termination are met; and
    (vi) If the Secretary determines that the requirements for 
revocation or termination are met, publish with the notice of final 
results of review under Sec.  351.221(b)(5) notice of ``Revocation of 
Order'' or ``Termination of Suspended Investigation'' (whichever is 
applicable).
    (3) If the Secretary revokes an order, the Secretary will order the 
suspension of liquidation terminated for the merchandise covered by the 
revocation on the first day after the period under review, and will 
instruct the Customs Service to release any cash deposit or bond.
* * * * *
[FR Doc. 2011-6019 Filed 3-18-11; 8:45 am]
BILLING CODE 3510-DS-P