Countervailing Duty Investigation of 1-Hydroxyethylidene-1, 1-Diphosphonic Acid From the People's Republic of China: Preliminary Affirmative Determination and Alignment of Final Determination With Final Antidumping Duty Determination, 62084-62086 [2016-21483]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)]
[Notices]
[Pages 62084-62086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21483]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-046]


Countervailing Duty Investigation of 1-Hydroxyethylidene-1, 1-
Diphosphonic Acid From the People's Republic of China: Preliminary 
Affirmative Determination and Alignment of Final Determination With 
Final Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (the ``Department'') preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of 1-Hydroxyethylidene-1, 1-Diphosphonic Acid 
(``HEDP'') from the People's Republic of China (the ``PRC''). We invite 
interested parties to comment on this preliminary determination.

DATES: Effective September 8, 2016.

FOR FURTHER INFORMATION CONTACT: Javier Barrientos or Andrew Devine, 
AD/CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone 202.482.2243 
or 202.482.0238, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The merchandise covered by this investigation includes all grades 
of aqueous acidic (non-neutralized) concentrations of HEDP, also 
referred to as hydroxyethylidenendiphosphonic acid, 
hydroxyethanediphosphonic acid, acetodiphosphonic acid, and etidronic 
acid. The Chemical Abstract Service (``CAS'') registry number for HEDP 
is 2809-21-4.
    The merchandise subject to this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(``HTSUS'') at subheading 2931.90.9043. It may also enter under HTSUS 
subheadings 281.19.6090 and 2931.90.9041. While HTSUS subheadings and 
the CAS registry number are provided for convenience and customs 
purposes only, the written description of the scope of this 
investigation is dispositive.

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 a full description of the methodology 
underlying our preliminary conclusions, see the Preliminary Decision 
Memo.\1\ The Preliminary Decision Memo is a public document and is on 
file electronically via Enforcement & Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System 
(``ACCESS'').\2\

[[Page 62085]]

ACCESS is available to registered users at https://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 Preliminary Decision Memo can be accessed directly on 
the Internet at https://trade.gov/enforcement/frn/. The signed 
Preliminary Decision Memo and the electronic versions of the 
Preliminary Decision Memo are identical in content.
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    \1\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance, ``Countervailing Duty Investigation of 1-
Hydroxyethylidene-1, 1-Diphosphonic Acid From the People's Republic 
of China: Decision Memorandum for the Preliminary Determination,'' 
dated concurrently with this notice (``Preliminary Decision Memo'').
    \2\ On November 24, 2014, Enforcement and Compliance changed the 
name of Enforcement and Compliance's AD and CVD Centralized 
Electronic Service System (``IA ACCESS'') to AD and CVD Centralized 
Electronic Service System (``ACCESS''). The Web site location was 
changed from https://iaaccess.trade.gov to https://access.trade.gov. 
The Final Rule changing the references to the Regulations can be 
found at 79 FR 69046.
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    In making these findings, we relied, in part, on facts available 
and, because one or more 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.\3\ For further information, see ``Use of 
Facts Otherwise Available and Adverse Inferences'' in the Preliminary 
Decision Memo.
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    \3\ See sections 776(a) and (b) of the Act.
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Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), we are aligning the final CVD determination in this 
investigation with the final determination in the companion antidumping 
duty (``AD'') investigation of HEDP from the PRC.\4\ Consequently, the 
final CVD determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
January 10, 2017, unless postponed. See Preliminary Decision Memo.
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    \4\ See 1-Hydroxyethylidene-1, 1-Diphosphonic Acid From the 
People's Republic of China: Initiation of Less-
    Than-Fair-Value Investigation, 81 FR 25377 (April 28, 2016).
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Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated an estimated individual countervailable subsidy rate for 
each producer/exporter of the subject merchandise individually 
investigated. We preliminarily determine these rates to be:
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    \5\ Including Jianghai Environmental Protection Co., Ltd.

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                                                               Subsidy
                          Company                                rate
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Shandong Taihe Chemicals Co., Ltd. (``Taihe Chemicals'')            2.37
 and Shandong Taihe Water Treatment Technologies Co., Ltd.
 (``Taihe Technologies'')..................................
Nanjing University of Chemical Technology Changzhou Wujin           1.04
 Water Quality Stabilizer Factory (``Wujin Water'')........
All Others \5\.............................................         1.71
* Changzhou Kewei Fine Chemicals Co., Ltd..................        36.33
* Hebei Longke Water Treatment Co., Ltd....................        36.33
* Shandong Huayou Chemistry Co., Ltd.......................        36.33
* Shandong Xintai Water Treatment Technology...............        36.33
* Zaozhuang Fuxing Water Treatment Technology..............        36.33
* Zaozhuang YouBang Chemicals Co., Ltd.....................        36.33
* Zouping Dongfang Chemical Industry Co., Ltd..............        36.33
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* Non-cooperative company to which an adverse facts available rate is
  being applied. See ``Use of Facts Otherwise Available and Adverse
  Inferences'' section in the Preliminary Decision Memorandum.

    In accordance with sections 703(d)(1)(B) and (2) of the Act, we are 
directing U.S. Customs and Border Protection to suspend liquidation of 
all entries of HEDP from the PRC that are entered, or withdrawn from 
warehouse, for consumption on or after the date of the publication of 
this notice in the Federal Register, and to require a cash deposit for 
such entries of merchandise in the amounts indicated above.
    In accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not investigated, we apply an ``all-others'' rate, which is 
normally calculated by weighting the subsidy rates of the individual 
companies selected as mandatory respondents by those companies' exports 
of the subject merchandise to the United States. Under section 
705(c)(5)(i) of the Act, the all-others rate should exclude zero and de 
minimis rates calculated for the exporters and producers individually 
investigated as well as rates based entirely on facts otherwise 
available. 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. 
Therefore, for the ``all-others'' rate, we calculated a simple average 
of the two responding firms' rates.

Disclosure and Public Comment

    The Department will disclose calculations performed for this 
preliminary determination to the parties within five days of the date 
of public announcement of this determination in accordance with 19 CFR 
351.224(b). Case briefs or other written comments for all non-scope 
issues may be submitted to the Assistant Secretary for Enforcement and 
Compliance no later than seven days after the date on which the final 
verification report is issued in this proceeding, and rebuttal briefs, 
limited to issues raised in case briefs, may be submitted no later than 
five days after the deadline date for case briefs.\6\ A table of 
contents, list of authorities used and an executive summary of issues 
should accompany any briefs submitted to the Department. This summary 
should be limited to five pages total, including footnotes.
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    \6\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce, 
filed electronically using ACCESS. An electronically filed document 
must be received successfully in its entirety by the Department's 
electronic records system, ACCESS, by 5:00 p.m. Eastern Time, within 30 
days after the date of publication of this notice.\7\ Requests should 
contain the party's name, address, and telephone number; the number of 
participants; and a list of the issues to be discussed. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230, at a date, time and location to be 
determined. Parties will be notified of the date, time and location of 
any hearing.
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    \7\ See 19 CFR 351.310(c).
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (``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

[[Page 62086]]

consent of the Assistant Secretary for Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: August 29, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision Memo

I. Summary
II. Background
III. Alignment
IV. Scope Comments
V. Scope of the Investigation
VI. Respondent Selection
VII. Injury Test
VIII. Application of CVD Law to Imports From the PRC
IX. Subsidies Valuation
X. Benchmarks
XI. Use of Facts Otherwise Available and Adverse Inferences
XII. Analysis of Programs
XIII. Verification
XIV. Conclusion

[FR Doc. 2016-21483 Filed 9-7-16; 8:45 am]
 BILLING CODE 3510-DS-P