Countervailing Duty Investigation of Certain Polyethylene Terephthalate Resin From the People's Republic of China: Final Affirmative Determination, 13337-13340 [2016-05715]

Download as PDF Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Notices Decision Memorandum is appended to the notice. instructions suspending liquidation will remain in effect until further notice. jstallworth on DSK7TPTVN1PROD with NOTICES Final Determination Margins The Department determines that the following weighted-average dumping margins exist for the period January 1, 2014, through December 31, 2014: International Trade Commission Notification In accordance with section 735(d) of the Act, we will notify the U.S. International Trade Commission (‘‘ITC’’) of our final determination. As our final Weighteddetermination is affirmative, in average accordance with section 735(b)(2) of the Exporter or producer dumping Act, the ITC will determine within 45 margin days whether the domestic industry in (percent) the United States is materially injured, OCTAL SAOC–FZC ................. 7.82 or threatened with material injury, by All-Others .................................. 7.82 reason of imports or sales (or the likelihood of sales) for importation of All-Others Rate the subject merchandise. If the ITC Section 735(c)(5)(A) of the Act determines that such injury exists, the provides that the estimated ‘‘all-others’’ Department will issue an antidumping rate shall be an amount equal to the duty order directing CBP to assess, upon weighted average of the estimated further instruction by the Department, weighted-average dumping margins antidumping duties on all imports of the established for exporters and producers subject merchandise entered, or individually investigated, excluding any withdrawn from warehouse, for zero or de minimis margins, and any consumption on or after the effective margins determined entirely under date of the suspension of liquidation. section 776 of the Act. We based our Return or Destruction of Proprietary calculation of the ‘‘all-others’’ rate on Information the margin calculated for OCTAL, the This notice will serve as a reminder only mandatory respondent in this to parties subject to administrative investigation. protective order (‘‘APO’’) of their Disclosure responsibility concerning the We will disclose to parties in this disposition of proprietary information proceeding the calculations performed disclosed under APO in accordance for this final determination within five with 19 CFR 351.305(a)(3). Timely days of the date of public written notification of the destruction of announcement of our final APO materials or conversion to judicial determination, in accordance with 19 protective order is hereby requested. CFR 351.224(b). Failure to comply with the regulations and the terms of an APO is a Continuation of Suspension of sanctionable violation. Liquidation We are issuing and publishing this Pursuant to section 735(c)(1)(B) of the determination and notice in accordance Act, the Department will instruct U.S. with sections 735(d) and 777(i) of the Customs and Border Protection (‘‘CBP’’) Act. to continue to suspend liquidation of all Dated: March 4, 2016. entries of certain PET resin from Oman Paul Piquado, which were entered, or withdrawn from Assistant Secretary for Enforcement and warehouse, for consumption on or after Compliance. October 15, 2015, the date of publication of the Preliminary Appendix I—Scope of the Investigation Determination. We also will instruct The merchandise covered by this CBP to require a cash deposit equal to investigation is polyethylene terephthalate the weighted-average amount by which (PET) resin having an intrinsic viscosity of at normal value exceeds U.S. price, as least 0.70, but not more than 0.88, deciliters follows: (1) The cash deposit rate for per gram. The scope includes blends of virgin OCTAL will be equal to the estimated PET resin and recycled PET resin containing weighted-average dumping margin 50 percent or more virgin PET resin content by weight, provided such blends meet the determined in this final determination; (2) if the exporter is not a firm identified intrinsic viscosity requirements above. The in this investigation but the producer is, scope includes all PET resin meeting the the cash deposit rate will be equal to the above specifications regardless of additives introduced in the manufacturing process. estimated weighted-average dumping The merchandise subject to this investigation margin established for the producer of is properly classified under subheading the subject merchandise; and (3) the 3907.60.00.30 of the Harmonized Tariff cash deposit rate for all other producers Schedule of the United States (HTSUS). or exporters will be 7.82 percent. The Although the HTSUS subheading is provided VerDate Sep<11>2014 14:27 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 13337 for convenience and customs purposes, the written description of the merchandise under investigation is dispositive. Appendix II— List of Topics in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Investigation IV. Discussion of the Issues: Comment 1: Sale Type Classification Export Price or Constructed Export Price Comment 2: Indirect Selling Expenses Incurred in the United States Comment 3: Affiliated Party Expenses Comment 4: Ministerial Errors Comment 5: Cost Data Revisions V. Recommendation [FR Doc. 2016–05705 Filed 3–11–16; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–025] Countervailing Duty Investigation of Certain Polyethylene Terephthalate Resin From the People’s Republic of China: Final Affirmative Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of certain polyethylene terephthalate (PET) resin from the People’s Republic of China (PRC) as provided in section 705 of the Tariff Act of 1930, as amended (the Act). For information on the estimated subsidy rates, see the ‘‘Final Determination’’ section of this notice. The period of investigation is January 1, 2014, through December 31, 2014. DATES: Effective Date: March 14, 2016. FOR FURTHER INFORMATION CONTACT: Yasmin Bordas or Emily Maloof, AD/ CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone (202) 482–3813 or (202) 482– 5649, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background The Department published the Preliminary Determination on August 14, 2015.1 A summary of the events that 1 See Countervailing Duty Investigation of Certain Polyethylene Terephthalate Resin From the People’s Republic of China: Preliminary Affirmative Determination and Alignment of Final E:\FR\FM\14MRN1.SGM Continued 14MRN1 13338 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Notices occurred since the Department submitted the Preliminary Determination, as well as a full discussion of the issues raised by parties for this final determination, may be found in the Issues and Decision Memorandum.2 The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at http://access.trade.gov, and is available to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at http://trade.gov/ enforcement. The signed Issues and Decision Memorandum and the electronic versions of the Issues and Decision Memorandum are identical in content. As explained in the memorandum from the Acting Assistant Secretary for Enforcement and Compliance, the Department has exercised its discretion to toll all administrative deadlines due to the recent closure of the Federal Government. All deadlines in this segment of the proceeding have been extended by four business days. The revised deadline for the final determination is now March 4, 2016.3 Scope of the Investigation jstallworth on DSK7TPTVN1PROD with NOTICES The merchandise covered by this investigation is PET resin. The merchandise subject to this investigation is properly classified under subheading 3907.60.00.30 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheading is provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive. For a complete description of the scope of this investigation, see Appendix II. Determination With Final Antidumping Duty Determination, 80 FR 48819 (August 14, 2015) (‘‘Preliminary Determination’’). 2 See Memorandum from Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Paul Piquado, Assistant Secretary for Enforcement and Compliance, ‘‘Countervailing Duty Investigation of Certain Polyethylene Terephthalate Resin from the People’s Republic of China: Issues & Decision Memorandum for the Final Determination,’’ dated concurrently with this notice (Issues and Decision Memorandum). 3 See Memorandum to the Record from Ron Lorentzen, Acting Assistant Secretary for Enforcement & Compliance, regarding ‘‘Tolling of Administrative Deadlines As a Result of the Government Closure During Snowstorm Jonas,’’ dated January 27, 2016. VerDate Sep<11>2014 14:27 Mar 11, 2016 Jkt 238001 The Department did not receive comments regarding the scope of this investigation. Methodology The Department is conducting this countervailing duty (CVD) investigation in accordance with section 701 of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found countervailable, we determine 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.4 For a full description of the methodology underlying our conclusions, see the Issues and Decision Memorandum. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation and the issues raised in the case and rebuttal briefs by parties in this investigation are discussed in the Issues and Decision Memorandum. A list of the issues that parties raised, and to which we responded in the Issues and Decision Memorandum, is attached to this notice at Appendix I. Use of Facts Available, Including Adverse Inferences The Department notes that, in making this final determination, we relied, in part, on facts available and, because two respondents did not act to the best of their ability to respond to the Department’s requests for information, we drew an adverse inference where appropriate in selecting from among the facts otherwise available with respect to those respondents.5 For further information, see the section ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ in the accompanying Issues and Decision Memorandum. Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties and minor corrections presented at verification, we made certain changes to the respondents’ subsidy rate calculations since the Preliminary Determination. For a discussion of these changes, see the Issues and Decision Memorandum. Final Determination In accordance with section 705(c)(1)(B)(i) of the Act, we calculated a rate for Jiangyin Xingyu New Material Co., Ltd. (Xingyu) and Dragon Special Resin (Xiamen) Co., Ltd. (Dragon), the two individually investigated exporters/ producers of the subject merchandise that participated in this investigation. In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of the Act, for companies not individually investigated, we will determine an ‘‘allothers’’ rate equal to the weightedaverage countervailable subsidy rates established for exporters and producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, we have not calculated the ‘‘all-others’’ rate by weight-averaging the rates of the two individually investigated respondents, because doing so risks disclosure of proprietary information. Instead, we have calculated the all-others rate using a simple average of the final rates for the two mandatory company respondents. We intend to disclose to parties the calculations performed in this proceeding within five days of the public announcement of this final determination in accordance with 19 CFR 351.224(b). Exporter/producer Jiangyin Xingyu New Material Co., Ltd., Jiangsu Xingye Plastic Co., Ltd., Jiangyin Xingjia Plastic Co., Ltd., Jiangyin Xingtai New Material Co., Ltd., Jiangsu Xingye Polarization Co., Ltd., Jiangsu Sanfangxiang Group Co., Ltd., Jiangyin Hailun Petrochemicals Co., Ltd., Jiangyin Xinlun Chemical Fiber Co., Ltd., Jiangyin Huasheng Polymer Co., Ltd., Jiangsu SanFangxiang International Trading Co., Ltd., Jiangyin HuaYi Polymerization Co., Ltd., Jiangyin Xingsheng Plastic Co., Ltd., Jiangyin Chemical Fiber Co., Ltd., Jiangyin Huaxing Synthetic Co., Ltd., Jiangyin Bolun Chemical Fiber Co., Ltd., (collectively, Xingyu) ......... 4 See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. 5 See sections 776(a) and (b) of the Act. PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 E:\FR\FM\14MRN1.SGM 14MRN1 Subsidy rate (percent) 6.83 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Notices Exporter/producer Subsidy rate (percent) Dragon Special Resin (Xiamen) Co., Ltd.; Xiang Lu Petrochemicals Co., Ltd.; Xianglu Petrochemicals (Zhangzhou) Co., Ltd.; Xiamen Xianglu Chemical Fiber Company Limited; and Dragon Aromatics (Zhangzhou) Co., Ltd. (collectively, Dragon Group) ............................... All-Others .............................. publicly or under an administrative protective order, without the written consent of the Assistant Secretary for Enforcement and Compliance. Notification Regarding Administrative Protective Orders This notice serves as the only reminder to parties subject to an APO of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance 47.56 with 19 CFR 351.305(a)(3). Timely 27.20 written notification of the return or destruction of APO materials, or Continuation of Suspension of conversion to judicial protective order, Liquidation is hereby requested. Failure to comply with the regulations and terms of an As a result of our affirmative APO is a violation subject to sanction. Preliminary Determination, and This determination is issued and pursuant to section 703(d) of the Act, published pursuant to sections 705(d) we instructed U.S. Customs and Border Protection (CBP) to suspend liquidation and 777(i) of the Act. of entries of merchandise under Dated: March 4, 2016. consideration from the PRC that were Paul Piquado, entered or withdrawn from warehouse, Assistant Secretary for Enforcement and for consumption, on or after August 14, Compliance. 2015, the date of publication of the Appendix I—List of Topics Discussed in Preliminary Determination in the the Issues and Decision Memorandum Federal Register. In accordance with section 703(d) of the Act, we issued I. Summary instructions to CBP to discontinue the II. Background suspension of liquidation for CVD A. Case History B. Period of Investigation purposes for subject merchandise entered, or withdrawn from warehouse, III. Scope of the Investigation IV. Application of the Countervailing Duty on or after December 12, 2015, but to Law to Imports From the PRC continue the suspension of liquidation V. List of Issues of all entries from August 14, 2015 VI. Subsidies Valuation through December 11, 2015. A. Allocation Period If the U.S. International Trade B. Attribution of Subsidies Commission (the ITC) issues a final C. Denominators affirmative injury determination, we VII. Benchmarks and Discount Rates A. Short-Term RMB-Denominated Loans will issue a CVD order and will reinstate B. Long-Term RMB-Denominated Loans the suspension of liquidation under C. Foreign Currency-Denominated Loans section 706(a) of the Act and will D. Discount Rates require a cash deposit of estimated E. MEG and PTA Benchmarks CVDs for such entries of subject F. Provision of Electricity for LTAR merchandise in the amounts indicated VIII. Use of Facts Otherwise Available and above. If the ITC determines that Adverse Inferences material injury, or threat of material Application of Facts Available injury, does not exist, this proceeding Application of Adverse Facts Available Selection of the Adverse Facts Available will be terminated and all estimated Rate duties deposited or securities posted as Corroboration of Secondary Information a result of the suspension of liquidation IX. Analysis of Programs will be refunded or canceled. jstallworth on DSK7TPTVN1PROD with NOTICES International Trade Commission Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. In addition, we are making available to the ITC all nonprivileged and non-proprietary information relating 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 VerDate Sep<11>2014 14:27 Mar 11, 2016 Jkt 238001 A. Programs Preliminarily Determined To Be Countervailable 1. Policy Loans to the PET Resin Industry 2. Preferential Export Financing 3. Export Seller’s Credits 4. Import Tariff and Value-Added (VAT) Exemptions on Imported Equipment in Encouraged Industries 5. Provision of Imports for LTAR 1. Provision of MEG and PTA for LTAR 2. Provision of Electricity for LTAR 6. Energy Savings Technology Reform 7. VAT Refunds for FIEs Purchasing Domestically-Produced Equipment ‘‘Other Subsidies’’ Reported in Initial Questionnaire Response PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 13339 8. 2013 Annual Incentive Funds Stable Foreign Trade Policy 9. Export Credit Insurance 10. Import/Export Credit Insurance/2013 Foreign Trade Policy Award 11. Transition Gold Support 12. Overseas Investment Discount (Jiangsu Province DOC) 13. Energy Saving 14. Technology Reform Interest Subsidy 15. 2012 and 2013 Refund of Land Use Tax 16. Income Tax Deduction for New HighTechnology Enterprise (HNTE) 17. Project Subsidy From Haicang Bureau of Science and Technology ‘‘Other Subsidies’’ Reported by Dragon Group 1. Other Subsidy: Bounty for Enterprise With Production and Sales Growth 2. Other Subsidy: 2013 Enterprise Financing Subsidy B. Programs Preliminary Determined Not To Be Used 18. International Market Exploration Fund (SME Fund) 19. City Construction Tax and Education Fees Exemptions for FIEs 20. Xiamen Municipality Support for Pivotal Manufacturing Industries 21. Xinghuo Development Zone Recycling Economic Construction Specialized Fund 22. Science & Technology Awards 23. Yangpu Economic Development Zone Preferential Tax Policies 24. Xinghuo Development Zone Industrial Structural Adjustment Fund 25. VAT Subsidies for FIEs 26. Provision of Land for LTAR to Enterprises in Xinghuo Development Zone, Fengxian District, Shanghai Municipality 27. Provision of Land for LTAR to Enterprises in Yangpu Economic Development Zone, Hainan Province 28. Allowance for Increased Export C. Programs With No Benefit in the POI 29. GOC and Sub-Central Government Subsidies for the Development of Famous Brands and China World Top Brands 30. Income Tax Deductions for Research and Development Expenses Under the Enterprise Income Tax Law D. Final AFA Rates Determined for Programs Used by Xingyu E. Final AFA Rates Determined for Programs Used by Dragon Group X. Calculation of the All-Others Rate XI. Analysis of Comments XII. Recommendation Appendix II The merchandise covered by this investigation is polyethylene terephthalate (PET) resin having an intrinsic viscosity of at least 0.70, but not more than 0.88, deciliters per gram. The scope includes blends of virgin PET resin and recycled PET resin containing 50 percent or more virgin PET resin content by weight, provided such blends meet the intrinsic viscosity requirements above. The scope includes all PET resin meeting the above specifications regardless of additives introduced in the manufacturing process. The merchandise subject to this investigation is properly classified under E:\FR\FM\14MRN1.SGM 14MRN1 13340 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Notices subheading 3907.60.00.30 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheading is provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive. [FR Doc. 2016–05715 Filed 3–11–16; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration Western Pacific Fishery Management Council; Public Meetings National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. AGENCY: ACTION: Notice of public meetings. The Western Pacific Fishery Management Council (Council) will hold meetings of its Marine Planning and Climate Change Committee (MPCCC), Social Science Plan Committee (SSPC) and Protected Species Advisory Committee (PSAC) to review relevant sections of the draft 2015 annual reports for the Pacific Pelagic Fishery Ecosystem Plan (Pelagic FEP), American Samoa Archipelago FEP, Hawaii FEP, Mariana Archipelago FEP and Pacific Remote Island Areas (PRIA) FEP and related purposes. The committees will also receive updates on matters related to fishery management and may make recommendations on these topics. SUMMARY: The MPCCC meeting will be held between 8:30 a.m. and 5 p.m. on March 30–31, 2016. The SSPC will be held between 1 p.m. and 5 p.m. on April 1, 2016. The PSAC meeting will be held between 9 a.m. and 5 p.m. on April 7 and 8, 2016. For specific times and agendas, see SUPPLEMENTARY INFORMATION. DATES: The MPCCC, SSPC and PSAC meetings will be held at the Council office, 1164 Bishop Street, Suite 1400, Honolulu, HI 96813; phone: (808) 522–8220. ADDRESSES: jstallworth on DSK7TPTVN1PROD with NOTICES FOR FURTHER INFORMATION CONTACT: Kitty M. Simonds, Executive Director, phone: (808) 522–8220. Public comment periods will be provided throughout the agendas. The order in which agenda items are addressed may change. The meetings will run as late as necessary to complete scheduled business. SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 14:27 Mar 11, 2016 Jkt 238001 Agenda for the MPCCC Meeting 8:30 a.m.–5 p.m., Wednesday, March 30, 2016 1. Welcome and Introductions 2. Approval of Agenda 3. Overview of Fishery Ecosystem Plans A. Pelagic FEP Fisheries B. Hawai‘i Archipelago and Pacific Remote Island Areas FEP Fisheries C. Mariana Archipelago FEP Fisheries D. American Samoa FEP Fisheries E. Ecosystem Components i. Protected Species ii. Fishing Communities iii. Oceanography and Climate Change iv. Essential Fish Habitat v. Marine Planning 4. Overview of 2015 Annual Report Components A. Marine Planning Indicators i. Pelagic ii. Archipelagic B. Climate Change Indicators i. Pelagic ii. Archipelagic 5. Public Comment 6. Discussion 7. Recommendations 8:30 a.m.–5 p.m., Thursday, March 31, 2016 8. Pacific Islands Regional Planning Body Update 9. Marine Planning and Climate Change Community Workshops A. Overview B. Breakout Planning Sessions i. American Samoa ii. Hawaii iii. Guam and Commonwealth of the Northern Mariana Islands (CNMI) A. Planning Session Reports i. American Samoa ii. Hawaii iii. Guam and CNMI 10. Public Comment 11. Discussion 12. Recommendations 13. Old Business A. MPCC Action Plan Update B. Other 14. New Business A. Pacific Islands Regional Action Plan for the NOAA Climate Science Strategy B. NOAA Marine Fisheries Advisory Committee’s Proposed Work Plan Resilience Working Group C. 2016 Officer Nominations D. Other 15. Public Comment 16. Discussion 17. Recommendations Agenda for the SSPC Meeting 1 p.m.–5 p.m., Friday, April 1, 2016 1. Welcome and Introductions PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 2. Approval of Agenda 3. Status of the Previous Committee Meeting Recommendations 4. Council Human Dimensions Activities Update A. 2015 Accomplishments 1. Human Dimensions Elements in Stock Assessment and Fishery Evaluation (SAFE) Reports 2. Guam Fishing Conflict Study 3. Annual Catch Limit Social, Economic, Ecological, Management Uncertainty Process B. 2016 Activities 1. Fishing Community Profiles 2. SAFE Report Data Gaps 3. Linking up Human Communities Research Priorities, SAFE Reports, Fishing Community Profiles C. Current and Upcoming Research 5. Fishery Ecosystem Plans Annual/ SAFE Report Review A. Overview B. Pelagic SAFE Report C. Archipelagic SAFE Report D. Chapter 3—Data Integration 6. Public Comment 7. Committee Discussion and Recommendations 8. Other Business and Next Meeting Agenda for the PSAC Meeting 9 a.m.–5 p.m., Thursday, April 7, 2016 1. Welcome and Introductions 2. Approval of Agenda 3. Status of the Second Protected Species Advisory Committee Meeting Recommendations 4. Fisheries and Protected Species Management Updates A. Recent Council Actions i. Pelagic fisheries actions ii. Insular fisheries actions iii. Discussion B. Council Protected Species Activities Update C. Endangered Species Act (ESA) Updates i. Section 7 ESA consultations for pelagic and insular fisheries ii. ESA listing and other related actions iii. Discussion 5. FEP Annual Report Review Part I A. Overview of the Report Structure and Process B. Overview of the Ecosystem Module i. Climate, ecosystems and biological section ii. Habitat section iii. Human dimensions section iv. Marine planning section C. Longline Fishery Sections i. Summary of relevant fishery data ii. Protected species section iii. Data analysis and related meetings a. Leatherback interactions in the Hawaii deep-set longline fishery b. Seabird interactions in the Hawaii deep-set longline fishery E:\FR\FM\14MRN1.SGM 14MRN1

Agencies

[Federal Register Volume 81, Number 49 (Monday, March 14, 2016)]
[Notices]
[Pages 13337-13340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05715]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-025]


Countervailing Duty Investigation of Certain Polyethylene 
Terephthalate Resin From the People's Republic of China: Final 
Affirmative Determination

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

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain polyethylene terephthalate (PET) resin from the People's 
Republic of China (PRC) as provided in section 705 of the Tariff Act of 
1930, as amended (the Act). For information on the estimated subsidy 
rates, see the ``Final Determination'' section of this notice. The 
period of investigation is January 1, 2014, through December 31, 2014.

DATES: Effective Date: March 14, 2016.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas or Emily Maloof, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-3813 
or (202) 482-5649, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on August 
14, 2015.\1\ A summary of the events that

[[Page 13338]]

occurred since the Department submitted the Preliminary Determination, 
as well as a full discussion of the issues raised by parties for this 
final determination, may be found in the Issues and Decision 
Memorandum.\2\ The Issues and Decision Memorandum is a public document 
and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (ACCESS). ACCESS is available to registered users at http://access.trade.gov, and is available to all parties in the Central 
Records Unit, Room B8024 of the main Department of Commerce building. 
In addition, a complete version of the Issues and Decision Memorandum 
can be accessed directly at http://trade.gov/enforcement. The signed 
Issues and Decision Memorandum and the electronic versions of the 
Issues and Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \1\ See Countervailing Duty Investigation of Certain 
Polyethylene Terephthalate Resin From the People's Republic of 
China: Preliminary Affirmative Determination and Alignment of Final 
Determination With Final Antidumping Duty Determination, 80 FR 48819 
(August 14, 2015) (``Preliminary Determination'').
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Countervailing Duty Investigation of Certain Polyethylene 
Terephthalate Resin from the People's Republic of China: Issues & 
Decision Memorandum for the Final Determination,'' dated 
concurrently with this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

    As explained in the memorandum from the Acting Assistant Secretary 
for Enforcement and Compliance, the Department has exercised its 
discretion to toll all administrative deadlines due to the recent 
closure of the Federal Government. All deadlines in this segment of the 
proceeding have been extended by four business days. The revised 
deadline for the final determination is now March 4, 2016.\3\
---------------------------------------------------------------------------

    \3\ See Memorandum to the Record from Ron Lorentzen, Acting 
Assistant Secretary for Enforcement & Compliance, regarding 
``Tolling of Administrative Deadlines As a Result of the Government 
Closure During Snowstorm Jonas,'' dated January 27, 2016.
---------------------------------------------------------------------------

Scope of the Investigation

    The merchandise covered by this investigation is PET resin. The 
merchandise subject to this investigation is properly classified under 
subheading 3907.60.00.30 of the Harmonized Tariff Schedule of the 
United States (HTSUS). Although the HTSUS subheading is provided for 
convenience and customs purposes, the written description of the 
merchandise under investigation is dispositive. For a complete 
description of the scope of this investigation, see Appendix II.
    The Department did not receive comments regarding the scope of this 
investigation.

Methodology

    The Department is conducting this countervailing duty (CVD) 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (the Act). For each of the subsidy programs found 
countervailable, we determine 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.\4\ For a full 
description of the methodology underlying our conclusions, see the 
Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \4\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised, and to which we responded in the Issues and 
Decision Memorandum, is attached to this notice at Appendix I.

Use of Facts Available, Including Adverse Inferences

    The Department notes that, in making this final determination, we 
relied, in part, on facts available and, because two respondents did 
not act to the best of their ability to respond to the Department's 
requests for information, we drew an adverse inference where 
appropriate in selecting from among the facts otherwise available with 
respect to those respondents.\5\ For further information, see the 
section ``Use of Facts Otherwise Available and Adverse Inferences'' in 
the accompanying Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \5\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties and minor corrections presented at verification, we made 
certain changes to the respondents' subsidy rate calculations since the 
Preliminary Determination. For a discussion of these changes, see the 
Issues and Decision Memorandum.

Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for Jiangyin Xingyu New Material Co., Ltd. (Xingyu) 
and Dragon Special Resin (Xiamen) Co., Ltd. (Dragon), the two 
individually investigated exporters/producers of the subject 
merchandise that participated in this investigation. In accordance with 
sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of the Act, for companies 
not individually investigated, we will determine an ``all-others'' rate 
equal to the weighted-average countervailable subsidy rates established 
for exporters and producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 of the Act. Notwithstanding the 
language of section 705(c)(5)(A)(i) of the Act, we have not calculated 
the ``all-others'' rate by weight-averaging the rates of the two 
individually investigated respondents, because doing so risks 
disclosure of proprietary information. Instead, we have calculated the 
all-others rate using a simple average of the final rates for the two 
mandatory company respondents. We intend to disclose to parties the 
calculations performed in this proceeding within five days of the 
public announcement of this final determination in accordance with 19 
CFR 351.224(b).

------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/producer                        (percent)
------------------------------------------------------------------------
Jiangyin Xingyu New Material Co., Ltd., Jiangsu Xingye              6.83
 Plastic Co., Ltd., Jiangyin Xingjia Plastic Co., Ltd.,
 Jiangyin Xingtai New Material Co., Ltd., Jiangsu Xingye
 Polarization Co., Ltd., Jiangsu Sanfangxiang Group Co.,
 Ltd., Jiangyin Hailun Petrochemicals Co., Ltd.,
 Jiangyin Xinlun Chemical Fiber Co., Ltd., Jiangyin
 Huasheng Polymer Co., Ltd., Jiangsu SanFangxiang
 International Trading Co., Ltd., Jiangyin HuaYi
 Polymerization Co., Ltd., Jiangyin Xingsheng Plastic
 Co., Ltd., Jiangyin Chemical Fiber Co., Ltd., Jiangyin
 Huaxing Synthetic Co., Ltd., Jiangyin Bolun Chemical
 Fiber Co., Ltd., (collectively, Xingyu)................

[[Page 13339]]

 
Dragon Special Resin (Xiamen) Co., Ltd.; Xiang Lu                  47.56
 Petrochemicals Co., Ltd.; Xianglu Petrochemicals
 (Zhangzhou) Co., Ltd.; Xiamen Xianglu Chemical Fiber
 Company Limited; and Dragon Aromatics (Zhangzhou) Co.,
 Ltd. (collectively, Dragon Group)......................
All-Others..............................................           27.20
------------------------------------------------------------------------

Continuation of Suspension of Liquidation

    As a result of our affirmative Preliminary Determination, and 
pursuant to section 703(d) of the Act, we instructed U.S. Customs and 
Border Protection (CBP) to suspend liquidation of entries of 
merchandise under consideration from the PRC that were entered or 
withdrawn from warehouse, for consumption, on or after August 14, 2015, 
the date of publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after December 12, 2015, but to continue the 
suspension of liquidation of all entries from August 14, 2015 through 
December 11, 2015.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such 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 canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information relating 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, without the written consent 
of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders

    This notice serves as the only reminder to parties subject to an 
APO of their responsibility concerning the disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or 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 subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

     Dated: March 4, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
    A. Case History
    B. Period of Investigation
III. Scope of the Investigation
IV. Application of the Countervailing Duty Law to Imports From the 
PRC
V. List of Issues
VI. Subsidies Valuation
    A. Allocation Period
    B. Attribution of Subsidies
    C. Denominators
VII. Benchmarks and Discount Rates
    A. Short-Term RMB-Denominated Loans
    B. Long-Term RMB-Denominated Loans
    C. Foreign Currency-Denominated Loans
    D. Discount Rates
    E. MEG and PTA Benchmarks
    F. Provision of Electricity for LTAR
VIII. Use of Facts Otherwise Available and Adverse Inferences
    Application of Facts Available
    Application of Adverse Facts Available
    Selection of the Adverse Facts Available Rate
    Corroboration of Secondary Information
IX. Analysis of Programs
    A. Programs Preliminarily Determined To Be Countervailable
    1. Policy Loans to the PET Resin Industry
    2. Preferential Export Financing
    3. Export Seller's Credits
    4. Import Tariff and Value-Added (VAT) Exemptions on Imported 
Equipment in Encouraged Industries
    5. Provision of Imports for LTAR
    1. Provision of MEG and PTA for LTAR
    2. Provision of Electricity for LTAR
    6. Energy Savings Technology Reform
    7. VAT Refunds for FIEs Purchasing Domestically-Produced 
Equipment ``Other Subsidies'' Reported in Initial Questionnaire 
Response
    8. 2013 Annual Incentive Funds Stable Foreign Trade Policy
    9. Export Credit Insurance
    10. Import/Export Credit Insurance/2013 Foreign Trade Policy 
Award
    11. Transition Gold Support
    12. Overseas Investment Discount (Jiangsu Province DOC)
    13. Energy Saving
    14. Technology Reform Interest Subsidy
    15. 2012 and 2013 Refund of Land Use Tax
    16. Income Tax Deduction for New High-Technology Enterprise 
(HNTE)
    17. Project Subsidy From Haicang Bureau of Science and 
Technology ``Other Subsidies'' Reported by Dragon Group
    1. Other Subsidy: Bounty for Enterprise With Production and 
Sales Growth
    2. Other Subsidy: 2013 Enterprise Financing Subsidy
    B. Programs Preliminary Determined Not To Be Used
    18. International Market Exploration Fund (SME Fund)
    19. City Construction Tax and Education Fees Exemptions for FIEs
    20. Xiamen Municipality Support for Pivotal Manufacturing 
Industries
    21. Xinghuo Development Zone Recycling Economic Construction 
Specialized Fund
    22. Science & Technology Awards
    23. Yangpu Economic Development Zone Preferential Tax Policies
    24. Xinghuo Development Zone Industrial Structural Adjustment 
Fund
    25. VAT Subsidies for FIEs
    26. Provision of Land for LTAR to Enterprises in Xinghuo 
Development Zone, Fengxian District, Shanghai Municipality
    27. Provision of Land for LTAR to Enterprises in Yangpu Economic 
Development Zone, Hainan Province
    28. Allowance for Increased Export
    C. Programs With No Benefit in the POI
    29. GOC and Sub-Central Government Subsidies for the Development 
of Famous Brands and China World Top Brands
    30. Income Tax Deductions for Research and Development Expenses 
Under the Enterprise Income Tax Law
    D. Final AFA Rates Determined for Programs Used by Xingyu
    E. Final AFA Rates Determined for Programs Used by Dragon Group
X. Calculation of the All-Others Rate
XI. Analysis of Comments
XII. Recommendation

Appendix II

    The merchandise covered by this investigation is polyethylene 
terephthalate (PET) resin having an intrinsic viscosity of at least 
0.70, but not more than 0.88, deciliters per gram. The scope 
includes blends of virgin PET resin and recycled PET resin 
containing 50 percent or more virgin PET resin content by weight, 
provided such blends meet the intrinsic viscosity requirements 
above. The scope includes all PET resin meeting the above 
specifications regardless of additives introduced in the 
manufacturing process.
    The merchandise subject to this investigation is properly 
classified under

[[Page 13340]]

subheading 3907.60.00.30 of the Harmonized Tariff Schedule of the 
United States (HTSUS). Although the HTSUS subheading is provided for 
convenience and customs purposes, the written description of the 
merchandise under investigation is dispositive.

[FR Doc. 2016-05715 Filed 3-11-16; 8:45 am]
 BILLING CODE 3510-DS-P