Biodiesel From Argentina and Indonesia: Initiation of Countervailing Duty Investigations, 18423-18427 [2017-07901]

Download as PDF Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices publication of the ITC’s final injury determination in the Federal Register.10 18423 Estimated Weighted-Average Dumping Margins The Department determines that the estimated final weighted-average dumping margins are as follow: Weightedaverage margin (percent) Exporter Producer Zhejiang Sanmei Chemical Industry Co., Ltd ............................. Zhejiang Sanmei Chemical Industry Co., Ltd and Jiangsu Sanmei Chemicals Co., Ltd. Jiangsu Bluestar Green Technology Co., Ltd ........................... Electrochemical Factory of Zhejiang Juhua Co., Ltd ................ Sinochem Environmental Protection Chemicals (Taicang) Co., Ltd. Zhejiang Quzhou Lianzhou Refrigerants Co., Ltd ..................... Zhejiang Sanmei Chemical Ind. Co., Ltd ................................... Zhejiang Zhonglan Refrigeration Technology Co., Ltd .............. Sinochem Environmental Protection Chemicals (Taicang) Co., Ltd. Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. Zhejiang Organic Fluor-Chemistry Plant, Zhejiang Juhua Co., Ltd. Zhejiang Quhua Fluor-Chemistry Co., Ltd ................................. Jiangsu Bluestar Green Technology Co., Ltd ............................ T.T. International Co., Ltd ........................................................... T.T. International Co., Ltd ........................................................... T.T. International Co., Ltd ........................................................... T.T. International Co., Ltd ........................................................... T.T. International Co., Ltd ........................................................... Weitron International Refrigeration Equipment (Kunshan) Co., Ltd.11 Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. PRC-Wide Entity 12 ..................................................................... 148.79 148.79 148.79 148.79 148.79 148.79 148.79 148.79 148.79 148.79 148.79 Zhejiang Quhua Juxin Fluorochemical Industry Co., Ltd .......... 148.79 Zhejiang Sanmei Chemical Industry Co., Ltd ............................ 148.79 .................................................................................................... 167.02 11 Though the Final Determination refers to Weitron International Refrigeration Equipment Co., Ltd., the correct name of the company is Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. 12 The PRC-Wide Entity includes Zhejiang Quzhou Lianzhou Refrigerants Co., Ltd., a mandatory respondent, as well as separate rate applicants Zhejiang Quhua Fluor-Chemistry Co., Ltd., and Sinochem Environmental Protection Chemicals (Taicang) Co. Ltd. jstallworth on DSK7TPTVN1PROD with NOTICES Critical Circumstances In its final determination, the ITC did not make an affirmative critical circumstances finding with respect to imports of subject merchandise from the PRC that were subject to the Department’s final affirmative critical circumstances determination. Accordingly, the Department will instruct CBP to lift suspension and to refund any cash deposits made to secure the payment of estimated antidumping duties with respect to entries of the merchandise entered, or withdrawn from warehouse, for consumption on or after July 9, 2016 (i.e., 90 days prior to the date of publication of the preliminary determination), but before October 7, 2016, the publication date of the Preliminary Determination. Notification to Interested Parties This notice constitutes the antidumping duty order with respect to R134a from the PRC, pursuant to section 736(a) of the Act. Interested parties can find a list of antidumping duty orders 10 See 1,1,1,2-Tetrafluoroethane (R–134a) from China, 82 FR 17280 (April 10, 2017). 1 See Biodiesel from Argentina and Indonesia; Antidumping and Countervailing Duty Petitions (the Petitions). VerDate Sep<11>2014 17:50 Apr 18, 2017 Jkt 241001 currently in effect at https:// www.trade.gov/enforcement/. This order is issued and published in accordance with sections 736(a) of the Act and 19 CFR 351.211(b). FOR FURTHER INFORMATION CONTACT: Dated: April 13, 2017. Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance. Joseph Traw (Indonesia) at (202) 482– 6079; or Spencer Toubia (Argentina) at (202) 482–0123, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230. [FR Doc. 2017–07913 Filed 4–18–17; 8:45 am] SUPPLEMENTARY INFORMATION: BILLING CODE 3510–DS–P The Petitions DEPARTMENT OF COMMERCE International Trade Administration [C–357–821, and C–560–831] Biodiesel From Argentina and Indonesia: Initiation of Countervailing Duty Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Effective April 12, 2017. AGENCY: 2 See Volume I of the Petitions, at 3 and Exhibit GEN–03; see also Biodiesel from Argentina and Indonesia: Amendment of Petitions, April 10, 2017 (April 17, 2017, Amendment), at 1 and Exhibit GEN–SUPP–08. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 On March 23, 2017, the Department of Commerce (the Department) received countervailing duty (CVD) petitions 1 concerning imports of biodiesel from Argentina and Indonesia, filed in proper form on behalf of the National Biodiesel Board Fair Trade Coalition (the petitioner), which is an ad hoc association comprised of domestic producers of biodiesel, as well as one trade association.2 The Petitions were accompanied by antidumping duty (AD) petitions on biodiesel from Argentina and Indonesia.3 3 See E:\FR\FM\19APN1.SGM the Petitions. 19APN1 18424 Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices jstallworth on DSK7TPTVN1PROD with NOTICES On March 28 and 29, 2017, and April 3, 2017, the Department requested additional information and clarification of certain areas of the Petitions.4 The petitioner filed responses to these requests on March 31, 2017, and April 4, 2017.5 On April 7, 2017, in consultations the Department held with respect to the CVD petition, the Government of Indonesia (GOI) provided comments on industry support and requested the Department poll the industry to determine industry ´ support.6 On April 10, 2017, Camara Argentina de Biocombustibles (CARBIO) and certain individual Argentine exporters 7 submitted comments regarding industry support and requested the Department extend its initiation decision by 20 days to poll the industry.8 On April 10, 2017, the petitioner filed an amendment to the Petitions.9 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that the Governments of Argentina (GOA) and Indonesia (GOI) are providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to imports of biodiesel from Argentina and Indonesia, respectively, and that such imports are materially injuring, or threatening material injury to, an industry in the United States. Also, consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for 4 See Letter from the Department, ‘‘Petition for the Imposition of Antidumping and Countervailing Duties on Imports of Biodiesel from Argentina and Indonesia: Supplemental Questions,’’ March 28, 2016 (General Issues Supplemental Questionnaire); see also Letter from the Department, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Biodiesel from Indonesia: Supplemental Questions,’’ March 28, 2017; Letter from the Department, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Biodiesel from Argentina: Supplemental Questions,’’ March 28, 2017. 5 See Letter from the petitioner, ‘‘Biodiesel from Argentina and Indonesia: Amendment of Petitions and Response to the Department’s Supplemental Questionnaires,’’ March 31, 2017 (Petition Supplement). On April 11, 2017, the petitioner filed company certifications relating to the Petition Supplement. See Letter from the petitioner, ‘‘Biodiesel from Argentina and Indonesia: Company Certifications of March 31, 2017 Petition Amendment,’’ April 11, 2017. 6 See Memorandum from the Department, ‘‘Countervailing Duty Petition on Biodiesel from Indonesia: Consultations with the Government of Indonesia,’’ April 10, 2017 (Consultation Memorandum), which references the GOI comments. 7 The individual Argentine exporters are Aceitera General Deheza S.A., Bunge Argentina S.A., Cargill S.A.C.I, COFCO Argentina S.A., LDC Argentina S.A., Oleaginosa Moreno Hermanos S.A., Molinos Agro S.A., Renova S.A., and Vicentin S.A.I.C. 8 See CARBIO’s Request to Postpone Initiation, April 10, 2017 (CARBIO Letter). 9 See April 10, 2017, Amendment. VerDate Sep<11>2014 15:06 Apr 18, 2017 Jkt 241001 those alleged programs on which we are initiating a CVD investigation, the petitioner states that the Petitions are accompanied by information reasonably available to the petitioner supporting its allegations. The Department finds that the petitioner filed the Petitions on behalf of the domestic industry because the petitioner is an interested party as defined in section 771(9)(F) of the Act. The Department also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the CVD investigations that the petitioner is requesting.10 Period of Investigation Because the Petitions were filed on March 23, 2017, the period of investigation (POI) for each investigation is, pursuant to 19 CFR 351.204(b)(2), January 1, 2016, through December 31, 2016. Scope of the Investigation The product covered by these investigations is biodiesel from Argentina and Indonesia. For a full description of the scope of these investigations, see the ‘‘Scope of the Investigations,’’ at Appendix I of this notice. Comments on Scope of the Investigations During our review of the Petitions, the Department issued questions to, and received responses from, the petitioner pertaining to the proposed scope to ensure that the scope language in the Petitions would be an accurate reflection of the products for which the domestic industry is seeking relief.11 As discussed in the preamble to the Department’s regulations,12 we are setting aside a period for interested parties to raise issues regarding product coverage (i.e., scope). The Department will consider all comments received from interested parties and, if necessary, will consult with the interested parties prior to the issuance of the preliminary determinations. If scope comments include factual information,13 all such factual information should be limited to public information. In order to facilitate preparation of its questionnaires, the Department requests all interested parties to submit such comments by 5:00 p.m. Eastern Time (ET) on May 2, 10 See ‘‘Determination of Industry Support for the Petition’’ section, below. 11 See General Issues Supplemental Questionnaire; see also Petition Supplement. 12 See Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997). 13 See 19 CFR 351.102(b)(21). PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 2017, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include public factual information, must be filed by 5:00 p.m. ET on May 12, 2017, which is 10 calendar days after the initial comments. All such comments must be filed on the records of each of the concurrent AD and CVD investigations. The Department requests that any factual information the parties consider relevant to the scope of the investigation be submitted during this time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigations may be relevant, the party may contact the Department and request permission to submit the additional information. As stated above, all such comments must be filed on the records of each of the concurrent AD and CVD investigations. Filing Requirements All submissions to the Department must be filed electronically using Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS).14 An electronically filed document must be received successfully in its entirety by the time and date it is due. Documents excepted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, and stamped with the date and time of receipt by the applicable deadlines. Consultations Pursuant to section 702(b)(4)(A)(i) of the Act, the Department notified representatives of the GOA and GOI of the receipt of the Petitions. Also, in accordance with section 702(b)(4)(A)(ii) of the Act, the Department provided representatives of the GOA and GOI the opportunity for consultations with respect to the CVD Petitions. Consultations with the GOA were held at the Department’s main building on 14 See 19 CFR 351.303 (describing general filing requirements); see also Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011) (providing details of the Department’s electronic filing requirements, which went into effect on August 5, 2011); Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014). Information on help 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 %20on%20Electronic%20Filling% 20Procedures.pdf. E:\FR\FM\19APN1.SGM 19APN1 Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices jstallworth on DSK7TPTVN1PROD with NOTICES April 5, 2017. Consultations with the GOI were held at the Department’s main building on April 7, 2017. All invitation letters and memoranda regarding these consultations are on file electronically via ACCESS. Determination of Industry Support for the Petitions 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, the Department 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 the Department to look to producers and workers who produce the domestic like product. The 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 the Department and the ITC must apply the same statutory definition regarding the domestic like product,15 they do so for different purposes and pursuant to a separate and distinct authority. In addition, the Department’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.16 Section 771(10) of the Act defines the domestic like product as ‘‘a product 15 See section 771(10) of the Act. 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 865 F.2d 240 (Fed. Cir. 1989)). 16 See VerDate Sep<11>2014 15:06 Apr 18, 2017 Jkt 241001 which is like, or in the absence of like, 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 Petitions). 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 investigations. Based on our analysis of the information submitted on the record, we have determined that biodiesel, as defined in the scope, constitutes a single domestic like product and we have analyzed industry support in terms of that domestic like product.17 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 Petitions with reference to the domestic like product as defined in the ‘‘Scope of the Investigations,’’ in Appendix I of this notice. The petitioner provided 2016 domestic like product production data for U.S. producers that are known to support the Petitions. To establish total production of the domestic like product in 2016, the petitioner provided data from the February 2017 Monthly Biodiesel Production report (which included total 2016 production of biodiesel in the United States) published by the U.S. Energy Information Administration (the statistical and analytical agency within the U.S. Department of Energy). To establish industry support, the petitioner compared the production of companies supporting the Petitions to the total 2016 production of the domestic like product for the entire domestic industry.18 We relied on data 17 For a discussion of the domestic like product analysis in this case, see Countervailing Duty Investigation Initiation Checklist: Biodiesel from Argentina (Argentina CVD Initiation Checklist), at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Biodiesel from Argentina and Indonesia, (Attachment II); and Countervailing Duty Investigation Initiation Checklist: Biodiesel from Indonesia (Indonesia CVD Initiation Checklist), at Attachment II. These checklists are dated concurrently with this notice and on file electronically via ACCESS. Access to documents filed via ACCESS is also available in the Central Records Unit, Room B8024 of the main Department of Commerce building. 18 See Volume I of the Petitions, at 5–7, and Volume II of the Petitions, at Exhibits GEN–05— GEN–07. PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 18425 the petitioner provided for purposes of measuring industry support.19 On April 7, 2017, we received comments on industry support from the GOI.20 On April 10, 2017, we received comments from CARBIO and certain individual Argentine exporters.21 For further discussion of these comments, see the Indonesia CVD Initiation Checklist, at Attachment II and the Argentina CVD Initiation Checklist, at Attachment II. Our review of the data provided in the Petitions, Petition Supplement, letter from the GOI, letter from CARBIO and certain individual Argentine exporters, and other information readily available to the Department indicates that the petitioner has established industry support for the Petitions.22 First, the Petitions 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, the Department is not required to take further action in order to evaluate industry support (e.g., polling).23 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 Petitions account for at least 25 percent of the total production of the domestic like product.24 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 Petitions 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 Petitions.25 Accordingly, the Department determines that the Petitions were filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act. The Department finds that the petitioner filed the Petitions on behalf of the domestic industry because it is an interested party as defined in section 771(9)(F) of the Act and it has 19 Id. For further discussion, see Argentina CVD Initiation Checklist and Indonesia CVD Initiation Checklist, at Attachment II. 20 See Consultation Memorandum. 21 See CARBIO Letter. 22 See Argentina CVD Initiation Checklist and Indonesia CVD Initiation Checklist, at Attachment II. 23 See section 702(c)(4)(D) of the Act; see also Argentina CVD Initiation Checklist and Indonesia CVD Initiation Checklist, at Attachment II. 24 See Argentina CVD Initiation Checklist and Indonesia CVD Initiation Checklist, at Attachment II. 25 Id. E:\FR\FM\19APN1.SGM 19APN1 18426 Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices demonstrated sufficient industry support with respect to the CVD investigations that it is requesting that the Department initiate.26 Injury Test Because Argentina and Indonesia are ‘‘Subsidies Agreement Countries’’ within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to these investigations. Accordingly, the ITC must determine whether imports of the subject merchandise from Argentina and Indonesia 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 benefitting 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 CVD petitions, section 771(24)(A) of the Act provides that imports of subject merchandise must exceed the negligibility threshold of three percent, except that imports of subject merchandise from developing countries in CVD investigations must exceed the negligibility threshold of four percent, pursuant to section 771(24)(B) of the Act. The petitioner demonstrates that imports from Argentina and Indonesia, which have been designated as developing and least-developed countries under sections 771(36)(A) and 771(36)(B) of the Act, respectively, exceed the four percent negligibility threshold provided for under section 771(24)(B) of the Act.27 The petitioner contends that the industry’s injured condition is illustrated by reduced market share; underselling and price suppression or depression; lost sales and revenues; negative impact on the domestic industry’s operations and performance; and decline in financial performance.28 We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, and causation, and we have determined that jstallworth on DSK7TPTVN1PROD with NOTICES 26 Id. 27 See Volume I of the Petitions, at 97–98; see also Volume I of the Petition Supplements, at 5–8 and Volume II of the Petition Supplements, at Exhibits GEN–SUPP–04 and GEN–SUPP–7. 28 See Volume I of the Petitions, at 1–3, 92–117 and Volume II of the Petitions, at Exhibits GEN–05, GEN–08 through GEN–10, GEN–12, and GEN–20 through GEN–32; see also Biodiesel from Argentina and Indonesia; Antidumping and Countervailing Duty Petition Amendment, dated March 24, 2017 (Lost Sales and Revenues Exhibit), at Exhibit A; and Volume I of the Petition Supplements, at 5–8 and Volume II of the Petition Supplements, at Exhibits GEN–SUPP–04 through GEN–SUPP–07. VerDate Sep<11>2014 15:06 Apr 18, 2017 Jkt 241001 these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.29 Subsidy Allegations Argentina Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on ten of ten of the alleged programs. For a full discussion of the basis for our decision to initiate on each program, see the Argentina CVD Initiation Checklist. Indonesia Based on our review of the petition, we find that there is sufficient information to initiate a CVD investigation on eight of eight of the alleged programs. For a full discussion of the basis for our decision to initiate on each program, see the Indonesian CVD Initiation Checklist. Initiation of CVD Investigations Section 702(b)(1) of the Act requires the Department to initiate a CVD investigation whenever an interested party files a CVD petition on behalf of an industry that: (1) Alleges the elements necessary for an imposition of a duty under section 701(a) of the Act; and (2) is accompanied by information reasonably available to the petitioner supporting the allegations. The petitioner alleges that producers/ exporters of biodiesel in Argentina and Indonesia benefit from countervailable subsidies bestowed by the governments of these countries, respectively. The Department examined the Petitions and finds that they comply with the requirements of section 702(b)(1) of the Act. Therefore, we are initiating CVD investigations to determine whether manufacturers, producers, and/or exporters of biodiesel from Argentina and Indonesia receive countervailable subsidies from the governments of these countries, respectively. In accordance with section 701(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we intend to make our preliminary determinations no later than 65 days after the date of this initiation. Under the Trade Preferences Extension Act of 2015, numerous amendments to the AD and CVD laws were made.30 The 2015 law does not 29 See Argentina CVD Initiation Checklist, at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Biodiesel from Argentina and Indonesia (Attachment III); see also Indonesia CVD Initiation Checklist, at Attachment III. 30 See Trade Preferences Extension Act of 2015, Public Law 114–27, 129 Stat. 362 (2015). PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 specify dates of application for those amendments. On August 6, 2015, the Department published an interpretative rule, in which it announced the applicability dates for each amendment to the Act, except for amendments contained in section 771(7) of the Act, which relate to determinations of material injury by the ITC.31 The amendments to sections 776 and 782 of the Act are applicable to all determinations made on or after August 6, 2015, and, therefore, apply to these CVD investigations.32 Respondent Selection The petitioner identified 16 companies in Argentina and five companies in Indonesia, as producers/ exporters of biodiesel.33 Following standard practice in CVD investigations, in the event the Department determines the number of companies subject to each investigation is large, the Department intends to review U.S. Customs and Border Protection (CBP) data for U.S. imports under the appropriate HTSUS numbers listed with the ‘‘Scope of the Investigations,’’ in Appendix I, below, and if it determines that it cannot individually examine each company based upon the Department’s resources, then the Department will select respondents based on that data. We also intend to release the CBP data under Administrative Protective Order (APO) to all parties with access to information protected by APO on the record within five business days of publication of this Federal Register notice. Comments regarding the CBP data and respondent selection should be submitted seven calendar days after the placement of the CBP data on the record of each respective investigation. Parties wishing to submit rebuttal comments should submit those comments five calendar days after the deadline for the initial comments. Comments for the above-referenced investigations must be filed electronically using ACCESS. An electronically-filed document must be received successfully in its entirety by ACCESS no later than 5:00 p.m. ET on the date noted above. We intend to make our decision regarding respondent selection within 20 days of publication of this notice. Interested parties must 31 See Dates of Application of Amendments to the Antidumping and Countervailing Duty Laws Made by the Trade Preferences Extension Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice). The 2015 amendments may be found at https:// www.congress.gov/bill/114th-congress/house-bill/ 1295/text/pl. 32 See Applicability Notice, 80 FR at 46794–95. 33 See Volume I of the Petition, at 14–15; see also Volume II of the Petition, at Exhibits GEN–17, GEN–18. E:\FR\FM\19APN1.SGM 19APN1 Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on the Department’s Web site at https:// enforcement.trade.gov/apo. Distribution of Copies of the Petition In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 351.202(f), copies of the public version of the Petitions have been provided to the GOA and GOI via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the Petitions to each known exporter named in the Petitions, as provided under 19 CFR 351.203(c)(2). ITC Notification We will notify the ITC of our initiation, as required by section 702(d) of the Act. jstallworth on DSK7TPTVN1PROD with NOTICES Preliminary Determinations by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petitions were filed, whether there is a reasonable indication that imports of biodiesel from Argentina and/or Indonesia are materially injuring, or threatening material injury to, a U.S. industry.34 A negative ITC determination for any country will result in the investigation being terminated with respect to that country; 35 otherwise, these investigations 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 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 the Department; and (v) evidence other than factual information described in (i)–(iv). Any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 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. Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time 34 See 35 See section 703(a)(2) of the Act. section 703(a)(1) of the Act. VerDate Sep<11>2014 15:06 Apr 18, 2017 Jkt 241001 limits based on the type of factual information being submitted. Parties should review the regulations prior to submitting factual information in these investigations. Extension of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under Part 351, or as otherwise specified by the Secretary. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under Part 351 expires. 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. on the due date. Under certain circumstances, we 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 the letter or memorandum setting forth 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, stand-alone submission; under limited circumstances we will grant untimelyfiled requests for the extension of time limits. Review Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at https://www.gpo.gov/ fdsys/pkg/FR-2013-09-20/html/201322853.htm, prior to submitting factual information in these investigations. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.36 Parties are hereby reminded that revised certification requirements are in effect for company/government officials, as well as their representatives. Investigations initiated on the basis of petitions filed on or after August 16, 2013, and other segments of any AD or CVD proceedings initiated on or after August 16, 2013, should use the formats for the revised certifications provided at the end of the Final Rule.37 The Department intends to reject factual submissions if the submitting party does 36 See section 782(b) of the Act. 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. 37 See PO 00000 Frm 00012 Fmt 4703 Sfmt 9990 18427 not comply with the applicable revised certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. On January 22, 2008, the Department published Antidumping and Countervailing Duty Proceedings: Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to participate in this investigation should ensure that they meet the requirements of these procedures (e.g., the filing of letters of appearance as discussed at 19 CFR 351.103(d)). This notice is issued and published pursuant to sections 702 and 777(i) of the Act and 19 CFR 351.203(c). Dated: April 12, 2017. Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigations The product covered by these investigations is biodiesel, which is a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, including biologically-based waste oils or greases, and other biologicallybased oil or fat sources. The investigations cover biodiesel in pure form (B100) as well as fuel mixtures containing at least 99 percent biodiesel by volume (B99). For fuel mixtures containing less than 99 percent biodiesel by volume, only the biodiesel component of the mixture is covered by the scope of the investigations. Biodiesel is generally produced to American Society for Testing and Materials International (ASTM) D6751 specifications, but it can also be made to other specifications. Biodiesel commonly has one of the following Chemical Abstracts Service (CAS) numbers, generally depending upon the feedstock used: 67784–80–9 (soybean oil methyl esters); 91051–34–2 (palm oil methyl esters); 91051–32–0 (palm kernel oil methyl esters); 73891–99–3 (rapeseed oil methyl esters); 61788–61–2 (tallow methyl esters); 68990–52–3 (vegetable oil methyl esters); 129828–16–6 (canola oil methyl esters); 67762–26–9 (unsaturated alkylcarboxylic acid methyl ester); or 68937–84–8 (fatty acids, C12–C18, methyl ester). The B100 product subject to the investigations is currently classifiable under subheading 3826.00.1000 of the Harmonized Tariff Schedule of the United States (HTSUS), while the B99 product is currently classifiable under HTSUS subheading 3826.00.3000. Although the HTSUS subheadings, ASTM specifications, and CAS numbers are provided for convenience and customs purposes, the written description of the scope is dispositive. [FR Doc. 2017–07901 Filed 4–18–17; 8:45 am] BILLING CODE 3510–DS–P E:\FR\FM\19APN1.SGM 19APN1

Agencies

[Federal Register Volume 82, Number 74 (Wednesday, April 19, 2017)]
[Notices]
[Pages 18423-18427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-07901]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-821, and C-560-831]


Biodiesel From Argentina and Indonesia: Initiation of 
Countervailing Duty Investigations

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

DATES: Effective April 12, 2017.

FOR FURTHER INFORMATION CONTACT: Joseph Traw (Indonesia) at (202) 482-
6079; or Spencer Toubia (Argentina) at (202) 482-0123, AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petitions

    On March 23, 2017, the Department of Commerce (the Department) 
received countervailing duty (CVD) petitions \1\ concerning imports of 
biodiesel from Argentina and Indonesia, filed in proper form on behalf 
of the National Biodiesel Board Fair Trade Coalition (the petitioner), 
which is an ad hoc association comprised of domestic producers of 
biodiesel, as well as one trade association.\2\ The Petitions were 
accompanied by antidumping duty (AD) petitions on biodiesel from 
Argentina and Indonesia.\3\
---------------------------------------------------------------------------

    \1\ See Biodiesel from Argentina and Indonesia; Antidumping and 
Countervailing Duty Petitions (the Petitions).
    \2\ See Volume I of the Petitions, at 3 and Exhibit GEN-03; see 
also Biodiesel from Argentina and Indonesia: Amendment of Petitions, 
April 10, 2017 (April 17, 2017, Amendment), at 1 and Exhibit GEN-
SUPP-08.
    \3\ See the Petitions.

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[[Page 18424]]

    On March 28 and 29, 2017, and April 3, 2017, the Department 
requested additional information and clarification of certain areas of 
the Petitions.\4\ The petitioner filed responses to these requests on 
March 31, 2017, and April 4, 2017.\5\ On April 7, 2017, in 
consultations the Department held with respect to the CVD petition, the 
Government of Indonesia (GOI) provided comments on industry support and 
requested the Department poll the industry to determine industry 
support.\6\ On April 10, 2017, C[aacute]mara Argentina de 
Biocombustibles (CARBIO) and certain individual Argentine exporters \7\ 
submitted comments regarding industry support and requested the 
Department extend its initiation decision by 20 days to poll the 
industry.\8\ On April 10, 2017, the petitioner filed an amendment to 
the Petitions.\9\
---------------------------------------------------------------------------

    \4\ See Letter from the Department, ``Petition for the 
Imposition of Antidumping and Countervailing Duties on Imports of 
Biodiesel from Argentina and Indonesia: Supplemental Questions,'' 
March 28, 2016 (General Issues Supplemental Questionnaire); see also 
Letter from the Department, ``Petition for the Imposition of 
Countervailing Duties on Imports of Biodiesel from Indonesia: 
Supplemental Questions,'' March 28, 2017; Letter from the 
Department, ``Petition for the Imposition of Countervailing Duties 
on Imports of Biodiesel from Argentina: Supplemental Questions,'' 
March 28, 2017.
    \5\ See Letter from the petitioner, ``Biodiesel from Argentina 
and Indonesia: Amendment of Petitions and Response to the 
Department's Supplemental Questionnaires,'' March 31, 2017 (Petition 
Supplement). On April 11, 2017, the petitioner filed company 
certifications relating to the Petition Supplement. See Letter from 
the petitioner, ``Biodiesel from Argentina and Indonesia: Company 
Certifications of March 31, 2017 Petition Amendment,'' April 11, 
2017.
    \6\ See Memorandum from the Department, ``Countervailing Duty 
Petition on Biodiesel from Indonesia: Consultations with the 
Government of Indonesia,'' April 10, 2017 (Consultation Memorandum), 
which references the GOI comments.
    \7\ The individual Argentine exporters are Aceitera General 
Deheza S.A., Bunge Argentina S.A., Cargill S.A.C.I, COFCO Argentina 
S.A., LDC Argentina S.A., Oleaginosa Moreno Hermanos S.A., Molinos 
Agro S.A., Renova S.A., and Vicentin S.A.I.C.
    \8\ See CARBIO's Request to Postpone Initiation, April 10, 2017 
(CARBIO Letter).
    \9\ See April 10, 2017, Amendment.
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Governments of 
Argentina (GOA) and Indonesia (GOI) are providing countervailable 
subsidies, within the meaning of sections 701 and 771(5) of the Act, to 
imports of biodiesel from Argentina and Indonesia, respectively, and 
that such imports are materially injuring, or threatening material 
injury to, an industry in the United States. Also, 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 petitioner 
states that the Petitions are accompanied by information reasonably 
available to the petitioner supporting its allegations.
    The Department finds that the petitioner filed the Petitions on 
behalf of the domestic industry because the petitioner is an interested 
party as defined in section 771(9)(F) of the Act. The Department also 
finds that the petitioner demonstrated sufficient industry support with 
respect to the initiation of the CVD investigations that the petitioner 
is requesting.\10\
---------------------------------------------------------------------------

    \10\ See ``Determination of Industry Support for the Petition'' 
section, below.
---------------------------------------------------------------------------

Period of Investigation

    Because the Petitions were filed on March 23, 2017, the period of 
investigation (POI) for each investigation is, pursuant to 19 CFR 
351.204(b)(2), January 1, 2016, through December 31, 2016.

Scope of the Investigation

    The product covered by these investigations is biodiesel from 
Argentina and Indonesia. For a full description of the scope of these 
investigations, see the ``Scope of the Investigations,'' at Appendix I 
of this notice.

Comments on Scope of the Investigations

    During our review of the Petitions, the Department issued questions 
to, and received responses from, the petitioner pertaining to the 
proposed scope to ensure that the scope language in the Petitions would 
be an accurate reflection of the products for which the domestic 
industry is seeking relief.\11\
---------------------------------------------------------------------------

    \11\ See General Issues Supplemental Questionnaire; see also 
Petition Supplement.
---------------------------------------------------------------------------

    As discussed in the preamble to the Department's regulations,\12\ 
we are setting aside a period for interested parties to raise issues 
regarding product coverage (i.e., scope). The Department will consider 
all comments received from interested parties and, if necessary, will 
consult with the interested parties prior to the issuance of the 
preliminary determinations. If scope comments include factual 
information,\13\ all such factual information should be limited to 
public information. In order to facilitate preparation of its 
questionnaires, the Department requests all interested parties to 
submit such comments by 5:00 p.m. Eastern Time (ET) on May 2, 2017, 
which is 20 calendar days from the signature date of this notice. Any 
rebuttal comments, which may include public factual information, must 
be filed by 5:00 p.m. ET on May 12, 2017, which is 10 calendar days 
after the initial comments. All such comments must be filed on the 
records of each of the concurrent AD and CVD investigations.
---------------------------------------------------------------------------

    \12\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \13\ See 19 CFR 351.102(b)(21).
---------------------------------------------------------------------------

    The Department requests that any factual information the parties 
consider relevant to the scope of the investigation be submitted during 
this time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigations may be relevant, the party may contact the Department 
and request permission to submit the additional information. As stated 
above, all such comments must be filed on the records of each of the 
concurrent AD and CVD investigations.

Filing Requirements

    All submissions to the Department must be filed electronically 
using Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\14\ An electronically 
filed document must be received successfully in its entirety by the 
time and date it is due. Documents excepted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S. 
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 
20230, and stamped with the date and time of receipt by the applicable 
deadlines.
---------------------------------------------------------------------------

    \14\ See 19 CFR 351.303 (describing general filing 
requirements); see also Antidumping and Countervailing Duty 
Proceedings: Electronic Filing Procedures; Administrative Protective 
Order Procedures, 76 FR 39263 (July 6, 2011) (providing details of 
the Department's electronic filing requirements, which went into 
effect on August 5, 2011); Enforcement and Compliance; Change of 
Electronic Filing System Name, 79 FR 69046 (November 20, 2014). 
Information on help 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%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------

Consultations

    Pursuant to section 702(b)(4)(A)(i) of the Act, the Department 
notified representatives of the GOA and GOI of the receipt of the 
Petitions. Also, in accordance with section 702(b)(4)(A)(ii) of the 
Act, the Department provided representatives of the GOA and GOI the 
opportunity for consultations with respect to the CVD Petitions. 
Consultations with the GOA were held at the Department's main building 
on

[[Page 18425]]

April 5, 2017. Consultations with the GOI were held at the Department's 
main building on April 7, 2017. All invitation letters and memoranda 
regarding these consultations are on file electronically via ACCESS.

Determination of Industry Support for the Petitions

    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, the Department 
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 the Department to look to producers and workers who produce the 
domestic like product. The 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 the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product,\15\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, the Department'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.\16\
---------------------------------------------------------------------------

    \15\ See section 771(10) of the Act.
    \16\ 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 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, 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 
Petitions).
    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 investigations. Based on our analysis of the information 
submitted on the record, we have determined that biodiesel, as defined 
in the scope, constitutes a single domestic like product and we have 
analyzed industry support in terms of that domestic like product.\17\
---------------------------------------------------------------------------

    \17\ For a discussion of the domestic like product analysis in 
this case, see Countervailing Duty Investigation Initiation 
Checklist: Biodiesel from Argentina (Argentina CVD Initiation 
Checklist), at Attachment II, Analysis of Industry Support for the 
Antidumping and Countervailing Duty Petitions Covering Biodiesel 
from Argentina and Indonesia, (Attachment II); and Countervailing 
Duty Investigation Initiation Checklist: Biodiesel from Indonesia 
(Indonesia CVD Initiation Checklist), at Attachment II. These 
checklists are dated concurrently with this notice and on file 
electronically via ACCESS. Access to documents filed via ACCESS is 
also available in the Central Records Unit, Room B8024 of the main 
Department of Commerce building.
---------------------------------------------------------------------------

    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 Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in Appendix I of 
this notice. The petitioner provided 2016 domestic like product 
production data for U.S. producers that are known to support the 
Petitions. To establish total production of the domestic like product 
in 2016, the petitioner provided data from the February 2017 Monthly 
Biodiesel Production report (which included total 2016 production of 
biodiesel in the United States) published by the U.S. Energy 
Information Administration (the statistical and analytical agency 
within the U.S. Department of Energy). To establish industry support, 
the petitioner compared the production of companies supporting the 
Petitions to the total 2016 production of the domestic like product for 
the entire domestic industry.\18\ We relied on data the petitioner 
provided for purposes of measuring industry support.\19\
---------------------------------------------------------------------------

    \18\ See Volume I of the Petitions, at 5-7, and Volume II of the 
Petitions, at Exhibits GEN-05--GEN-07.
    \19\ Id. For further discussion, see Argentina CVD Initiation 
Checklist and Indonesia CVD Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------

    On April 7, 2017, we received comments on industry support from the 
GOI.\20\ On April 10, 2017, we received comments from CARBIO and 
certain individual Argentine exporters.\21\ For further discussion of 
these comments, see the Indonesia CVD Initiation Checklist, at 
Attachment II and the Argentina CVD Initiation Checklist, at Attachment 
II.
---------------------------------------------------------------------------

    \20\ See Consultation Memorandum.
    \21\ See CARBIO Letter.
---------------------------------------------------------------------------

    Our review of the data provided in the Petitions, Petition 
Supplement, letter from the GOI, letter from CARBIO and certain 
individual Argentine exporters, and other information readily available 
to the Department indicates that the petitioner has established 
industry support for the Petitions.\22\ First, the Petitions 
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, the Department is not required to take further 
action in order to evaluate industry support (e.g., polling).\23\ 
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 Petitions 
account for at least 25 percent of the total production of the domestic 
like product.\24\ 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 Petitions 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 Petitions.\25\ 
Accordingly, the Department determines that the Petitions were filed on 
behalf of the domestic industry within the meaning of section 702(b)(1) 
of the Act.
---------------------------------------------------------------------------

    \22\ See Argentina CVD Initiation Checklist and Indonesia CVD 
Initiation Checklist, at Attachment II.
    \23\ See section 702(c)(4)(D) of the Act; see also Argentina CVD 
Initiation Checklist and Indonesia CVD Initiation Checklist, at 
Attachment II.
    \24\ See Argentina CVD Initiation Checklist and Indonesia CVD 
Initiation Checklist, at Attachment II.
    \25\ Id.
---------------------------------------------------------------------------

    The Department finds that the petitioner filed the Petitions on 
behalf of the domestic industry because it is an interested party as 
defined in section 771(9)(F) of the Act and it has

[[Page 18426]]

demonstrated sufficient industry support with respect to the CVD 
investigations that it is requesting that the Department initiate.\26\
---------------------------------------------------------------------------

    \26\ Id.
---------------------------------------------------------------------------

Injury Test

    Because Argentina and Indonesia are ``Subsidies Agreement 
Countries'' within the meaning of section 701(b) of the Act, section 
701(a)(2) of the Act applies to these investigations. Accordingly, the 
ITC must determine whether imports of the subject merchandise from 
Argentina and Indonesia 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 
benefitting 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 CVD petitions, section 
771(24)(A) of the Act provides that imports of subject merchandise must 
exceed the negligibility threshold of three percent, except that 
imports of subject merchandise from developing countries in CVD 
investigations must exceed the negligibility threshold of four percent, 
pursuant to section 771(24)(B) of the Act. The petitioner demonstrates 
that imports from Argentina and Indonesia, which have been designated 
as developing and least-developed countries under sections 771(36)(A) 
and 771(36)(B) of the Act, respectively, exceed the four percent 
negligibility threshold provided for under section 771(24)(B) of the 
Act.\27\
---------------------------------------------------------------------------

    \27\ See Volume I of the Petitions, at 97-98; see also Volume I 
of the Petition Supplements, at 5-8 and Volume II of the Petition 
Supplements, at Exhibits GEN-SUPP-04 and GEN-SUPP-7.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by reduced market share; underselling and price suppression 
or depression; lost sales and revenues; negative impact on the domestic 
industry's operations and performance; and decline in financial 
performance.\28\ We have assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, and 
causation, and we have determined that these allegations are properly 
supported by adequate evidence, and meet the statutory requirements for 
initiation.\29\
---------------------------------------------------------------------------

    \28\ See Volume I of the Petitions, at 1-3, 92-117 and Volume II 
of the Petitions, at Exhibits GEN-05, GEN-08 through GEN-10, GEN-12, 
and GEN-20 through GEN-32; see also Biodiesel from Argentina and 
Indonesia; Antidumping and Countervailing Duty Petition Amendment, 
dated March 24, 2017 (Lost Sales and Revenues Exhibit), at Exhibit 
A; and Volume I of the Petition Supplements, at 5-8 and Volume II of 
the Petition Supplements, at Exhibits GEN-SUPP-04 through GEN-SUPP-
07.
    \29\ See Argentina CVD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Biodiesel from Argentina and Indonesia (Attachment III); 
see also Indonesia CVD Initiation Checklist, at Attachment III.
---------------------------------------------------------------------------

Subsidy Allegations

Argentina

    Based on our review of the Petition, we find that there is 
sufficient information to initiate a CVD investigation on ten of ten of 
the alleged programs. For a full discussion of the basis for our 
decision to initiate on each program, see the Argentina CVD Initiation 
Checklist.

Indonesia

    Based on our review of the petition, we find that there is 
sufficient information to initiate a CVD investigation on eight of 
eight of the alleged programs. For a full discussion of the basis for 
our decision to initiate on each program, see the Indonesian CVD 
Initiation Checklist.

Initiation of CVD Investigations

    Section 702(b)(1) of the Act requires the Department to initiate a 
CVD investigation whenever an interested party files a CVD petition on 
behalf of an industry that: (1) Alleges the elements necessary for an 
imposition of a duty under section 701(a) of the Act; and (2) is 
accompanied by information reasonably available to the petitioner 
supporting the allegations.
    The petitioner alleges that producers/exporters of biodiesel in 
Argentina and Indonesia benefit from countervailable subsidies bestowed 
by the governments of these countries, respectively. The Department 
examined the Petitions and finds that they comply with the requirements 
of section 702(b)(1) of the Act. Therefore, we are initiating CVD 
investigations to determine whether manufacturers, producers, and/or 
exporters of biodiesel from Argentina and Indonesia receive 
countervailable subsidies from the governments of these countries, 
respectively. In accordance with section 701(b)(1)(A) of the Act and 19 
CFR 351.205(b)(1), unless postponed, we intend to make our preliminary 
determinations no later than 65 days after the date of this initiation.
    Under the Trade Preferences Extension Act of 2015, numerous 
amendments to the AD and CVD laws were made.\30\ The 2015 law does not 
specify dates of application for those amendments. On August 6, 2015, 
the Department published an interpretative rule, in which it announced 
the applicability dates for each amendment to the Act, except for 
amendments contained in section 771(7) of the Act, which relate to 
determinations of material injury by the ITC.\31\ The amendments to 
sections 776 and 782 of the Act are applicable to all determinations 
made on or after August 6, 2015, and, therefore, apply to these CVD 
investigations.\32\
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    \30\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
    \31\ See Dates of Application of Amendments to the Antidumping 
and Countervailing Duty Laws Made by the Trade Preferences Extension 
Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice). 
The 2015 amendments may be found at https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
    \32\ See Applicability Notice, 80 FR at 46794-95.
---------------------------------------------------------------------------

Respondent Selection

    The petitioner identified 16 companies in Argentina and five 
companies in Indonesia, as producers/exporters of biodiesel.\33\ 
Following standard practice in CVD investigations, in the event the 
Department determines the number of companies subject to each 
investigation is large, the Department intends to review U.S. Customs 
and Border Protection (CBP) data for U.S. imports under the appropriate 
HTSUS numbers listed with the ``Scope of the Investigations,'' in 
Appendix I, below, and if it determines that it cannot individually 
examine each company based upon the Department's resources, then the 
Department will select respondents based on that data. We also intend 
to release the CBP data under Administrative Protective Order (APO) to 
all parties with access to information protected by APO on the record 
within five business days of publication of this Federal Register 
notice. Comments regarding the CBP data and respondent selection should 
be submitted seven calendar days after the placement of the CBP data on 
the record of each respective investigation. Parties wishing to submit 
rebuttal comments should submit those comments five calendar days after 
the deadline for the initial comments.
---------------------------------------------------------------------------

    \33\ See Volume I of the Petition, at 14-15; see also Volume II 
of the Petition, at Exhibits GEN-17, GEN-18.
---------------------------------------------------------------------------

    Comments for the above-referenced investigations must be filed 
electronically using ACCESS. An electronically-filed document must be 
received successfully in its entirety by ACCESS no later than 5:00 p.m. 
ET on the date noted above. We intend to make our decision regarding 
respondent selection within 20 days of publication of this notice. 
Interested parties must

[[Page 18427]]

submit applications for disclosure under APO in accordance with 19 CFR 
351.305(b). Instructions for filing such applications may be found on 
the Department's Web site at https://enforcement.trade.gov/apo.

Distribution of Copies of the Petition

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

ITC Notification

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

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of biodiesel from Argentina and/or Indonesia 
are materially injuring, or threatening material injury to, a U.S. 
industry.\34\ A negative ITC determination for any country will result 
in the investigation being terminated with respect to that country; 
\35\ otherwise, these investigations will proceed according to 
statutory and regulatory time limits.
---------------------------------------------------------------------------

    \34\ See section 703(a)(2) of the Act.
    \35\ See section 703(a)(1) of the Act.
---------------------------------------------------------------------------

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 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 the Department; and (v) evidence other than 
factual information described in (i)-(iv). Any party, when submitting 
factual information, to specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted 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. 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. Parties should review the regulations 
prior to submitting factual information in these investigations.

Extension of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under Part 351, or as otherwise 
specified by the Secretary. In general, an extension request will be 
considered untimely if it is filed after the expiration of the time 
limit established under Part 351 expires. 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. on the due date. 
Under certain circumstances, we 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 the letter or memorandum setting 
forth 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, stand-alone submission; under limited 
circumstances we will grant untimely-filed requests for the extension 
of time limits. Review Extension of Time Limits; Final Rule, 78 FR 
57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual 
information in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\36\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials, as well as their 
representatives. Investigations initiated on the basis of petitions 
filed on or after August 16, 2013, and other segments of any AD or CVD 
proceedings initiated on or after August 16, 2013, should use the 
formats for the revised certifications provided at the end of the Final 
Rule.\37\ The Department intends to reject factual submissions if the 
submitting party does not comply with the applicable revised 
certification requirements.
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    \36\ See section 782(b) of the Act.
    \37\ 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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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, the 
Department published Antidumping and Countervailing Duty Proceedings: 
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 
22, 2008). Parties wishing to participate in this investigation should 
ensure that they meet the requirements of these procedures (e.g., the 
filing of letters of appearance as discussed at 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act and 19 CFR 351.203(c).

    Dated: April 12, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigations

    The product covered by these investigations is biodiesel, which 
is a fuel comprised of mono-alkyl esters of long chain fatty acids 
derived from vegetable oils or animal fats, including biologically-
based waste oils or greases, and other biologically-based oil or fat 
sources. The investigations cover biodiesel in pure form (B100) as 
well as fuel mixtures containing at least 99 percent biodiesel by 
volume (B99). For fuel mixtures containing less than 99 percent 
biodiesel by volume, only the biodiesel component of the mixture is 
covered by the scope of the investigations.
    Biodiesel is generally produced to American Society for Testing 
and Materials International (ASTM) D6751 specifications, but it can 
also be made to other specifications. Biodiesel commonly has one of 
the following Chemical Abstracts Service (CAS) numbers, generally 
depending upon the feedstock used: 67784-80-9 (soybean oil methyl 
esters); 91051-34-2 (palm oil methyl esters); 91051-32-0 (palm 
kernel oil methyl esters); 73891-99-3 (rapeseed oil methyl esters); 
61788-61-2 (tallow methyl esters); 68990-52-3 (vegetable oil methyl 
esters); 129828-16-6 (canola oil methyl esters); 67762-26-9 
(unsaturated alkylcarboxylic acid methyl ester); or 68937-84-8 
(fatty acids, C12-C18, methyl ester).
    The B100 product subject to the investigations is currently 
classifiable under subheading 3826.00.1000 of the Harmonized Tariff 
Schedule of the United States (HTSUS), while the B99 product is 
currently classifiable under HTSUS subheading 3826.00.3000. Although 
the HTSUS subheadings, ASTM specifications, and CAS numbers are 
provided for convenience and customs purposes, the written 
description of the scope is dispositive.

[FR Doc. 2017-07901 Filed 4-18-17; 8:45 am]
 BILLING CODE 3510-DS-P
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