Biodiesel From Argentina: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, in Part, 50391-50394 [2017-23601]
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Federal Register / Vol. 82, No. 209 / Tuesday, October 31, 2017 / Notices
steel; (c) high-nickel steel; (d) ball bearing
steel; or (e) concrete reinforcing bars and
rods. Also excluded are free cutting steel
(also known as free machining steel)
products (i.e., products that contain by
weight one or more of the following
elements: 0.1 percent or more of lead, 0.05
percent or more of bismuth, 0.08 percent or
more of sulfur, more than 0.04 percent of
phosphorous, more than 0.05 percent of
selenium, or more than 0.01 percent of
tellurium). All products meeting the physical
description of subject merchandise that are
not specifically excluded are included in this
scope.
The products under investigation are
currently classifiable under subheadings
7213.91.3011, 7213.91.3015, 7213.91.3020,
7213.91.3093, 7213.91.4500, 7213.91.6000,
7213.99.0030, 7227.20.0030, 7227.20.0080,
7227.90.6010, 7227.90.6020, 7227.90.6030,
and 7227.90.6035 of the HTSUS. Products
entered under subheadings 7213.99.0090 and
7227.90.6090 of the HTSUS also may be
included in this scope if they meet the
physical description of subject merchandise
above. Although the HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
scope of this proceeding is dispositive.
Appendix II
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List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
A. Determination of the Comparison
Methold
B. Results of the Differential Pricing
Analysis
VI. Date of Sale
VII. Product Comparisons
VIII. Export Price and Constructed Export
Price Discussion of the Methodology
IX. Normal Value
A. Home Market Viability
B. Level of Trade
C. Cost of Production (COP) Analysis
1. Calculation of COP
2. Test of Comparison Market Sales Prices
3. Results of the COP Test
D. Calculation of NV Based on Comparison
Market Prices
X. Application of Facts Available and Use of
Adverse Facts Available
A. Application of Facts Available
B. Use of Adverse Inference
C. Selection and Corroboration of the AFA
Rate
XI. Preliminary Determination of Critical
Circumstances
A. Legal Framework
B. Critical Circumstances Allegation
C. Analysis
XII. Currency Conversion
XIII. Conclusion
[FR Doc. 2017–23650 Filed 10–30–17; 8:45 am]
BILLING CODE 3510–DS–P
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DEPARTMENT OF COMMERCE
International Trade Administration
[A–357–820]
Biodiesel From Argentina: Preliminary
Affirmative Determination of Sales at
Less Than Fair Value, Preliminary
Affirmative Determination of Critical
Circumstances, in Part
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) preliminarily
determines that biodiesel from
Argentina is being, or is likely to be,
sold in the United States at less than fair
value. The period of investigation is
January 1, 2016, through December 31,
2016.
DATES: Effective October 31, 2017.
FOR FURTHER INFORMATION CONTACT:
David Lindgren, AD/CVD Operations,
Office VII, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230; telephone:
(202) 482–3870.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
This preliminary determination is
made in accordance with section 733(b)
of the Tariff Act of 1930, as amended
(the Act). The Department published the
notice of initiation of this investigation
on April 19, 2017.1 For a complete
description of the events that followed
the initiation of this investigation, see
the Preliminary Decision
Memorandum.2 A list of topics included
in the Preliminary Decision
Memorandum is included as Appendix
II to this notice. The Preliminary
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
1 See Biodiesel from Argentina and Indonesia:
Initiation of Less-Than-Fair-Value Investigations, 82
FR 18428 (April 19, 2017) (Initiation Notice).
2 See Memorandum to Gary Tavernman, Deputy
Assistant Secretary for Antidumping and
Countervailing Duty Operations performing the
non-exclusive functions and duties of the Assistant
Secretary for Enforcement and Compliance, from
James Maeder, Senior Director for Antidumping and
Countervailing Duty Operations performing the
duties of Deputy Assistant Secretary for
Antidumping and Countervailing Duty Operations,
‘‘Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value
Investigation of Biodiesel from Argentina,’’ dated
concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
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50391
registered users at https://
access.trade.gov, and to all parties in the
Central Records Unit, Room B8024 of
the Department’s main building. In
addition, a complete version of the
Preliminary Decision Memorandum can
be accessed directly at https://
enforcement.trade.gov/frn/. The signed
and the electronic versions of the
Preliminary Decision Memorandum are
identical in content.
Scope of the Investigation
The product covered by this
investigation is biodiesel from
Argentina. For a complete description of
the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the preamble to
the Department’s regulations,3 the
Initiation Notice set aside a period of
time for parties to raise issues regarding
product coverage (i.e., scope).4 No
interested party commented on the
scope of the investigation as it appeared
in the Initiation Notice. Therefore, the
Department is not preliminarily
modifying the scope language as it
appeared in the Initiation Notice. See
the scope in Appendix I to this notice.
Methodology
The Department is conducting this
investigation in accordance with section
731 of the Act. The Department has
calculated export prices in accordance
with section 772(a) of the Act.
Constructed export prices have been
calculated in accordance with section
772(b) of the Act. Normal value (NV) is
calculated in accordance with section
773 of the Act. For a full description of
the methodology underlying the
preliminary determination, see the
Preliminary Decision Memorandum.
Preliminary Affirmative Determination
of Critical Circumstances, in Part
In accordance with section 733(e) of
the Act and 19 CFR 351.206, the
Department preliminarily finds that
critical circumstances exist for LDC
Argentina S.A. (LDC) and ‘‘all other’’
producers or exporters not individually
examined. We preliminarily find that
critical circumstances do not exist for
Vicentin S.A.I.C. (Vicentin) and certain
affiliated companies (collectively, the
Vicentin Group).5 For a full description
3 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
4 See Initiation Notice.
5 Vicentin Group consists of the following
companies: Vicentin, Renova S.A., Oleaginosa
Moreno Hermanos S.A., Molinos Agro S.A.,
Patagonia Energia S.A., VFG Inversiones y
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of the methodology and results of the
Department’s critical circumstances
analysis, see the Preliminary Decision
Memorandum.
Particular Market Situation
On August 2, 2017, the National
Biodiesel Board Fair Trade Coalition
(petitioner) filed a particular market
situation (PMS) allegation with respect
to the respondents’ home market sales
prices and reported costs of
production.6 The petitioner asserts that
a PMS exists in Argentina because the
Government of Argentina (GOA) sets
both mandatory monthly sales prices
and sales quotas for biodiesel producers,
and restrains the exports of soybeans
with an export tax, thereby depressing
the respondents’ reported raw material
costs in Argentina. The petitioner argues
that the Department should disregard
the respondents’ home market sales
based on a finding that they are
significantly distorted by government
intervention. The petitioner also urges
the Department to make an adjustment
for the price of soybeans purchased
from domestic suppliers to address the
distorted Argentine market for soybeans.
The respondent Vicentin argues that
the Department has a preference for
using home market prices and that the
standard for finding a PMS and rejecting
home market prices is that the
government control must be so
extensive that pricing is not longer
profitable.7 Vicentin contends the
GOA’s prices allow for a return on
capital. Furthermore, Vicentin asserts
that the claim that the export tax on
soybeans is distortive is speculative and
it cites studies finding that the
elimination of the export tax would
have a negligible effect on domestic
soybean prices. Finally, Vicentin
contends that the Department has
previously made clear that a single
subsidized raw material is insufficient
to conclude that a PMS exists.
Based on the facts on the record, the
Department preliminarily finds that the
GOA’s regulation of the domestic
biodiesel market amounts to a PMS in
Argentina that renders the home market
prices of the Vicentin Group and LDC
outside the ordinary course of trade.
Therefore, the Department is
preliminarily relying on constructed
value as the basis for NV in this
investigation for both respondents. The
Department also preliminarily finds that
a PMS exists in Argentina with regard
to the price of soybeans as a component
of the cost of manufacturing (COM) for
biodiesel. Therefore, the Department has
adjusted the Vicentin Group’s and
LDC’s COM to account for the distorted
cost of soybeans. For a full description
of the methodology underlying the PMS
determination, see the Preliminary
Decision Memorandum.
All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A)
of the Act provide that, in the
preliminary determination, the
Department shall determine an
estimated all-others rate for all exporters
and producers not individually
examined. This rate shall be an amount
equal to the weighted average of the
estimated weighted-average dumping
margins established for exporters and
producers individually investigated,
excluding rates that are zero, de
minimis, or determined entirely on facts
available under section 776 of the Act.
In this investigation, the Department
calculated estimated weighted-average
dumping margins for LDC and the
Vicentin Group that are not zero, de
minimis, or based entirely on facts
otherwise available. The Department
calculated the all-others rate using a
weighted average of the estimated
weighted-average dumping margins
calculated for the examined respondents
using each company’s publicly-ranged
values for the merchandise under
consideration.8
Preliminary Determination
The Department preliminarily
determines that the following estimated
weighted-average dumping margins
exist:
Estimated
weighted-average
dumping margin
(percent)
Exporter or producer
LDC Argentina S.A ................................................................................................................................
Vicentin S.A.I.C.9 ...................................................................................................................................
All-Others ...............................................................................................................................................
Suspension of Liquidation
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In accordance with section 733(d)(2)
of the Act, the Department will direct
U.S. Customs and Border Protection
(CBP) to suspend liquidation of entries
of subject merchandise, as described in
Actividades Especiales S.A., Vicentin S.A.I.C.
Sucursal Uy, Trading Company X, and Molinos
Overseas Commodities S.A. See Preliminary
Decision Memorandum at ‘‘Affiliation and
Collapsing.’’
6 See Petitioner’s Letter, ‘‘Biodiesel from
Argentina: Petitioner’s Particular Market Situation
Allegation Regarding Respondents’ Home Market
Sales and Costs of Production,’’ dated August 2,
2017 (PMS Allegation).
7 See Vicentin’s Affirmative Pre-Preliminary
Comments at 5.
8 With two respondents under examination, the
Department normally calculates (A) a weightedaverage of the estimated weighted-average dumping
margins calculated for the examined respondents;
(B) a simple average of the estimated weightedaverage dumping margins calculated for the
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54.36
70.05
63.00
Cash deposit rate
(adjusted for
subsidy offset(s))
(percent)
54.36
10 69.91
11 62.92
Appendix I, entered, or withdrawn from
warehouse, for consumption on or after
the date of publication of this notice in
the Federal Register. Furthermore,
pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), the
Department will instruct CBP to require
a cash deposit equal to the estimated
weighted-average dumping margin,
adjusted for export subsidy offset(s), as
follows: (1) The cash deposit rate for the
respondents listed above will be equal
examined respondents; and (C) a weighted-average
of the estimated weighted-average dumping margins
calculated for the examined respondents using each
company’s publicly-ranged U.S. sale quantities for
the merchandise under consideration. The
Department then compares (B) and (C) to (A) and
selects the rate closest to (A) as the most
appropriate rate for all other producers and
exporters. See Ball Bearings and Parts Thereof from
France, Germany, Italy, Japan, and the United
Kingdom: Final Results of Antidumping Duty
Administrative Reviews, Final Results of ChangedCircumstances Review, and Revocation of an Order
in Part, 75 FR 53661, 53663 (September 1, 2010).
As complete publicly ranged sales data was
available, the Department based the all-others rate
on the publicly ranged sales data of the mandatory
respondents. For a complete analysis of the data,
please see Memorandum to the File ‘‘Antidumping
Duty Investigation of Biodiesel from Argentina:
Preliminary Determsnation Calculation for the ‘AllOthers’ Rate,’’ October 19, 2017 (Preliminary AllOthers Rate Memorandum).
9 The Department preliminarily determined that
Vicentin S.A.I.C., and companies Renova S.A.,
Oleaginosa Moreno Hermanos S.A., Molinos Agro
S.A., Patagonia Energia S.A., VFG Inversiones y
Actividades Especiales S.A., Vicentin S.A.I.C.
Sucursal Uy, Trading Company X, and Molinos
Overseas Commodities S.A. are a single entity. See
Preliminary Decision Memorandum at ‘‘Affiliation
and Collapsing.’’
10 See Vicentin Preliminary Analysis
Memorandum.
11 See Preliminary All-Others Rate Memorandum.
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to the company-specific estimated
weighted-average dumping margins,
adjusted for export subsidy offset(s),
determined in this preliminary
determination; (2) if the exporter is not
a respondent identified above, but the
producer is, then the cash deposit rate
will be equal to the company-specific
estimated weighted-average dumping
margin, adjusted for export subsidy
offset(s), established for that producer of
the subject merchandise; and (3) the
cash deposit rate for all other producers
and exporters will be equal to the allothers estimated weighted-average
dumping margin, adjusted for export
subsidy offset(s).
The Department normally adjusts
cash deposits for estimated antidumping
duties by the amount of export subsidies
countervailed in a companion CVD
proceeding in accordance with section
772(c)(1)(C), when CVD provisional
measures are in effect. Accordingly,
where the Department preliminarily
made an affirmative determination for
countervailable export subsidies, the
Department has offset the estimated
weighted-average dumping margin by
the appropriate CVD rate. In the
preliminary determination in the
companion CVD investigation, the
Department found that Vicentin had a
countervailable export subsidy while
LDC did not.12 Therefore, we
preliminarily determine to adjust the
cash deposit rate for the Vicentin Group
and make no adjustments to the cash
deposit rate for LDC in the Preliminary
Determination.
Section 733(e)(2) of the Act provides
that, given an affirmative determination
of critical circumstances, any
suspension of liquidation shall apply to
unliquidated entries of subject
merchandise entered, or withdrawn
from warehouse, for consumption on or
after the later of (a) the date which is 90
days before the date on which the
suspension of liquidation was first
ordered, or (b) the date on which notice
of initiation of the investigation was
published. The Department
preliminarily finds that critical
circumstances exist for imports of
subject merchandise produced or
exported by LDC and ‘‘all other’’
exporters and producers not
individually examined. In accordance
with section 733(e)(2)(A) of the Act, the
suspension of liquidation shall apply to
unliquidated entries of shipments of
subject merchandise from the
12 See Biodiesel from Argentina: Preliminary
Affirmative Countervailing Duty Determination and
Preliminary Affirmative Critical Circumstances
Determination, in Part, 82 FR 40748 (August 28,
2017), and accompanying Preliminary Decision
Memorandum.
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producer(s) or exporter(s) identified in
this paragraph that were entered, or
withdrawn from warehouse, for
consumption on or after the date which
is 90 days before the publication of this
notice.
These suspension of liquidation
instructions will remain in effect until
further notice.
Disclosure
The Department intends to disclose
its calculations and analysis performed
to interested parties in this preliminary
determination within five days of any
public announcement or, if there is no
public announcement, within five days
of the date of publication of this notice
in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the
Act, the Department intends to verify
the information relied upon in making
its final determination.
Public Comment
Case briefs or other written comments
may be submitted to the Assistant
Secretary for Enforcement and
Compliance no later than seven days
after the date on which the last
verification report is issued in this
investigation, unless the Secretary alters
the time limit. Rebuttal briefs, limited to
issues raised in case briefs, may be
submitted no later than five days after
the deadline date for case briefs.13
Pursuant to 19 CFR 351.309(c)(2) and
(d)(2), parties who submit case briefs or
rebuttal briefs in this investigation are
encouraged to submit with each
argument: (1) A statement of the issue;
(2) a brief summary of the argument;
and (3) a table of authorities.
Pursuant to 19 CFR 351.310(c),
interested parties who wish to request a
hearing, limited to issues raised in the
case and rebuttal briefs, must submit a
written request to the Assistant
Secretary for Enforcement and
Compliance, U.S. Department of
Commerce, within 30 days after the date
of publication of this notice. Requests
should contain the party’s name,
address, and telephone number, the
number of participants, whether any
participant is a foreign national, 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,
1401 Constitution Avenue NW.,
Washington, DC 20230, at a time and
date to be determined. Parties should
confirm by telephone the date, time, and
13 See 19 CFR 351.309; see also 19 CFR 351.303
(for general filing requirements).
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50393
location of the hearing two days before
the scheduled date.
Final Determination
Section 735(a)(1) of the Act and 19
CFR 351.210(b)(1) provide that the
Department will issue the final
determination within 75 days after the
date of its preliminary determination.
Accordingly, the Department will make
its final determination no later than 75
days after the signature date of this
preliminary determination.
International Trade Commission
Notification
In accordance with section 733(f) of
the Act, the Department will notify the
International Trade Commission (ITC) of
its preliminary determination. If the
final determination is affirmative, the
ITC will determine before the later of
120 days after the date of this
preliminary determination or 45 days
after the final determination whether
these imports are materially injuring, or
threaten material injury to, the U.S.
industry.
Notification to Interested Parties
This determination is issued and
published in accordance with sections
733(f) and 777(i)(1) of the Act and 19
CFR 351.205(c).
Dated: October 19, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations,
performing the non-exclusive functions and
duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The product covered by this investigation
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 investigation 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 investigation.
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);
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67762–26–9 (unsaturated alkylcarboxylic
acid methyl ester); or 68937–84–8 (fatty
acids, C12–C18, methyl ester).
The B100 product subject to the
investigation 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.
Appendix II
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Preliminary Affirmative Critical
Circumstances, In Part
A. Legal Framework
B. Critical Circumstances Allegation
C. Analysis
V. Affiliation and Collapsing
A. Vicentin Group
VI. Discussion of the Methodology
A. Comparisions to Fair Value
VII. Product Comparisons
VIII. Date of Sale
IX. Export Price and Constructed Export
Price
X. Normal Value
A. Market Viability
XI. Particular Market Situation
A. Background
B. Interest Parties’ Arguments
C. Analysis
XII. Calculation of Normal Value Based on
Constructed Value
XIII. Circumstance of Sale Adjustment
XIV. Adjustment to Cash Deposit Rate for
Export Subsidies
XV. Currency Conversion
XVI. Conclusion
[FR Doc. 2017–23601 Filed 10–30–17; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
[A–412–826]
Carbon and Alloy Steel Wire Rod From
the United Kingdom: Preliminary
Affirmative Determination of Sales at
Less Than Fair Value, and Preliminary
Affirmative Determination of Critical
Circumstances
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) preliminarily
determines that carbon and alloy steel
wire rod (wire rod) from the United
Kingdom is being, or is likely to be, sold
in the United States at less than fair
value (LTFV). The period of
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Background
This preliminary determination is
made in accordance with section 733(b)
of the Tariff Act of 1930, as amended
(the Act). The Department published the
notice of initiation of this investigation
on April 26, 2017.1 On August 21, 2017,
the Department postponed the
preliminary determination of this
investigation and the revised deadline is
now October 24, 2017.2 For a complete
description of the events that followed
the initiation of this investigation, see
the Preliminary Decision
Memorandum.3 A list of topics included
in the Preliminary Decision
Memorandum is included as Appendix
II to this notice. The Preliminary
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 https://
access.trade.gov, and 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
Memorandum can be accessed directly
at https://enforcement.trade.gov/frn/.
The signed and the electronic versions
of the Preliminary Decision
Memorandum are identical in content.
Scope of the Investigation
The products covered by this
investigation are wire rod from the
United Kingdom. For a complete
International Trade Administration
AGENCY:
investigation (POI) is January 1, 2016,
through December 31, 2016.
DATES: Applicable October 31, 2017.
FOR FURTHER INFORMATION CONTACT:
Alice Maldonado, AD/CVD Operations,
Office II, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW., Washington,
DC 20230; telephone: (202) 482–4682.
SUPPLEMENTARY INFORMATION:
1 See Carbon and Alloy Steel Wire Rod from
Belarus, Italy, the Republic of Korea, the Russian
Federation, South Africa, Spain, the Republic of
Turkey, Ukraine,United Arab Emirates, and the
United Kingdom: Initiation of Less-Than-Fair-Value
Investigations, 82 FR 19207 (April 26, 2017)
(Initiation Notice).
2 See Carbon and Alloy Steel Wire Rod from Italy,
the Republic of South Africa, Spain, the Republic
of Turkey, Ukraine and the United Kingdom:
Postponement of Preliminary Determinations in the
Less-Than-Fair-Value Investigations, 82 FR 39564
(August 21, 2017).
3 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Determination in the Antidumping
Duty Investigation of Carbon and Alloy Steel Wire
Rod from the United Kingdom’’ dated concurrently
with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to
the Department’s regulations,4 the
Initiation Notice set aside a period of
time for parties to raise issues regarding
product coverage (i.e., scope).5 Certain
interested parties commented on the
scope of the investigation as it appeared
in the Initiation Notice. For a summary
of the product coverage comments and
rebuttal responses submitted to the
record for this investigation, and
accompanying discussion and analysis
of all comments timely received, see the
Preliminary Scope Decision
Memorandum.6 Since the issuance of
the Preliminary Scope Decision
Memorandum, certain parties submitted
scope case briefs or scope rebuttal
briefs.7 The Department will issue a
final scope decision on the records of
the wire rod investigations after
considering those comments submitted
in scope case and rebuttal briefs.
Methodology
The Department is conducting this
investigation in accordance with section
731 of the Act. The Department selected
two respondents in this investigation,
British Steel Limited (British Steel) and
Longs Steel UK Limited (Longs Steel).
British Steel submitted information on
the record of this investigation
demonstrating that it purchased Longs
Steel during the POI. British Steel also
submitted information supporting its
claim that it operates essentially as a
new company. After analyzing this
information, the Department
preliminarily finds that British Steel is
not the successor-in-interest to Longs
Steel. For further discussion, see the
Preliminary Decision Memorandum and
the Successor-In-Interest Analysis
Memo.8
With respect to British Steel, the
Department has calculated export prices
in accordance with section 772(a) of the
Act. Normal value (NV) is calculated in
accordance with section 773 of the Act.
4 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
5 See Initiation Notice.
6 See Memorandum, ‘‘Carbon and Alloy Steel
Wire Rod from Belarus, Italy, the Republic of Korea,
the Russian Federation, South Africa, Spain, the
Republic of Turkey, Ukraine, the United Arab
Emirates, and the United Kingdom: Scope
Comments Decision Memorandum for the
Preliminary Determination’’ (Preliminary Scope
Decision Memorandum), dated August 7, 2017.
7 See Preliminary Decision Memorandum.
8 See Memorandum, ‘‘Antidumping Duty
Investigation of Carbon and Alloy Steel Wire Rod
from the United Kingdom: Preliminary SuccessorIn-Interest Determination,’’ dated concurrently with
this preliminary determination.
E:\FR\FM\31OCN1.SGM
31OCN1
]]>Agencies
[Federal Register Volume 82, Number 209 (Tuesday, October 31, 2017)]
[Notices]
[Pages 50391-50394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-23601]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-357-820]
Biodiesel From Argentina: Preliminary Affirmative Determination
of Sales at Less Than Fair Value, Preliminary Affirmative Determination
of Critical Circumstances, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that biodiesel from Argentina is being, or is likely to be,
sold in the United States at less than fair value. The period of
investigation is January 1, 2016, through December 31, 2016.
DATES: Effective October 31, 2017.
FOR FURTHER INFORMATION CONTACT: David Lindgren, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230; telephone: (202) 482-3870.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). The Department
published the notice of initiation of this investigation on April 19,
2017.\1\ For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\2\ A list of topics included in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
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 https://access.trade.gov, and to all parties in the
Central Records Unit, Room B8024 of the Department's main building. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at https://enforcement.trade.gov/frn/. The signed
and the electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\1\ See Biodiesel from Argentina and Indonesia: Initiation of
Less-Than-Fair-Value Investigations, 82 FR 18428 (April 19, 2017)
(Initiation Notice).
\2\ See Memorandum to Gary Tavernman, Deputy Assistant Secretary
for Antidumping and Countervailing Duty Operations performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance, from James Maeder, Senior Director for
Antidumping and Countervailing Duty Operations performing the duties
of Deputy Assistant Secretary for Antidumping and Countervailing
Duty Operations, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Biodiesel
from Argentina,'' dated concurrently with, and hereby adopted by,
this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is biodiesel from
Argentina. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to the Department's regulations,\3\
the Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\4\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice. Therefore, the Department is not preliminarily
modifying the scope language as it appeared in the Initiation Notice.
See the scope in Appendix I to this notice.
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\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ See Initiation Notice.
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Methodology
The Department is conducting this investigation in accordance with
section 731 of the Act. The Department has calculated export prices in
accordance with section 772(a) of the Act. Constructed export prices
have been calculated in accordance with section 772(b) of the Act.
Normal value (NV) is calculated in accordance with section 773 of the
Act. For a full description of the methodology underlying the
preliminary determination, see the Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 733(e) of the Act and 19 CFR 351.206,
the Department preliminarily finds that critical circumstances exist
for LDC Argentina S.A. (LDC) and ``all other'' producers or exporters
not individually examined. We preliminarily find that critical
circumstances do not exist for Vicentin S.A.I.C. (Vicentin) and certain
affiliated companies (collectively, the Vicentin Group).\5\ For a full
description
[[Page 50392]]
of the methodology and results of the Department's critical
circumstances analysis, see the Preliminary Decision Memorandum.
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\5\ Vicentin Group consists of the following companies:
Vicentin, Renova S.A., Oleaginosa Moreno Hermanos S.A., Molinos Agro
S.A., Patagonia Energia S.A., VFG Inversiones y Actividades
Especiales S.A., Vicentin S.A.I.C. Sucursal Uy, Trading Company X,
and Molinos Overseas Commodities S.A. See Preliminary Decision
Memorandum at ``Affiliation and Collapsing.''
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Particular Market Situation
On August 2, 2017, the National Biodiesel Board Fair Trade
Coalition (petitioner) filed a particular market situation (PMS)
allegation with respect to the respondents' home market sales prices
and reported costs of production.\6\ The petitioner asserts that a PMS
exists in Argentina because the Government of Argentina (GOA) sets both
mandatory monthly sales prices and sales quotas for biodiesel
producers, and restrains the exports of soybeans with an export tax,
thereby depressing the respondents' reported raw material costs in
Argentina. The petitioner argues that the Department should disregard
the respondents' home market sales based on a finding that they are
significantly distorted by government intervention. The petitioner also
urges the Department to make an adjustment for the price of soybeans
purchased from domestic suppliers to address the distorted Argentine
market for soybeans.
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\6\ See Petitioner's Letter, ``Biodiesel from Argentina:
Petitioner's Particular Market Situation Allegation Regarding
Respondents' Home Market Sales and Costs of Production,'' dated
August 2, 2017 (PMS Allegation).
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The respondent Vicentin argues that the Department has a preference
for using home market prices and that the standard for finding a PMS
and rejecting home market prices is that the government control must be
so extensive that pricing is not longer profitable.\7\ Vicentin
contends the GOA's prices allow for a return on capital. Furthermore,
Vicentin asserts that the claim that the export tax on soybeans is
distortive is speculative and it cites studies finding that the
elimination of the export tax would have a negligible effect on
domestic soybean prices. Finally, Vicentin contends that the Department
has previously made clear that a single subsidized raw material is
insufficient to conclude that a PMS exists.
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\7\ See Vicentin's Affirmative Pre-Preliminary Comments at 5.
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Based on the facts on the record, the Department preliminarily
finds that the GOA's regulation of the domestic biodiesel market
amounts to a PMS in Argentina that renders the home market prices of
the Vicentin Group and LDC outside the ordinary course of trade.
Therefore, the Department is preliminarily relying on constructed value
as the basis for NV in this investigation for both respondents. The
Department also preliminarily finds that a PMS exists in Argentina with
regard to the price of soybeans as a component of the cost of
manufacturing (COM) for biodiesel. Therefore, the Department has
adjusted the Vicentin Group's and LDC's COM to account for the
distorted cost of soybeans. For a full description of the methodology
underlying the PMS determination, see the Preliminary Decision
Memorandum.
All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that, in
the preliminary determination, the Department shall determine an
estimated all-others rate for all exporters and producers not
individually examined. This rate shall be an amount equal to the
weighted average of the estimated weighted-average dumping margins
established for exporters and producers individually investigated,
excluding rates that are zero, de minimis, or determined entirely on
facts available under section 776 of the Act.
In this investigation, the Department calculated estimated
weighted-average dumping margins for LDC and the Vicentin Group that
are not zero, de minimis, or based entirely on facts otherwise
available. The Department calculated the all-others rate using a
weighted average of the estimated weighted-average dumping margins
calculated for the examined respondents using each company's publicly-
ranged values for the merchandise under consideration.\8\
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\8\ With two respondents under examination, the Department
normally calculates (A) a weighted-average of the estimated
weighted-average dumping margins calculated for the examined
respondents; (B) a simple average of the estimated weighted-average
dumping margins calculated for the examined respondents; and (C) a
weighted-average of the estimated weighted-average dumping margins
calculated for the examined respondents using each company's
publicly-ranged U.S. sale quantities for the merchandise under
consideration. The Department then compares (B) and (C) to (A) and
selects the rate closest to (A) as the most appropriate rate for all
other producers and exporters. See Ball Bearings and Parts Thereof
from France, Germany, Italy, Japan, and the United Kingdom: Final
Results of Antidumping Duty Administrative Reviews, Final Results of
Changed-Circumstances Review, and Revocation of an Order in Part, 75
FR 53661, 53663 (September 1, 2010). As complete publicly ranged
sales data was available, the Department based the all-others rate
on the publicly ranged sales data of the mandatory respondents. For
a complete analysis of the data, please see Memorandum to the File
``Antidumping Duty Investigation of Biodiesel from Argentina:
Preliminary Determsnation Calculation for the `All-Others' Rate,''
October 19, 2017 (Preliminary All-Others Rate Memorandum).
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Preliminary Determination
The Department preliminarily determines that the following
estimated weighted-average dumping margins exist:
------------------------------------------------------------------------
Cash deposit rate
Estimated weighted- (adjusted for
Exporter or producer average dumping subsidy offset(s))
margin (percent) (percent)
------------------------------------------------------------------------
LDC Argentina S.A.............. 54.36 54.36
Vicentin S.A.I.C.\9\........... 70.05 \10\ 69.91
All-Others..................... 63.00 \11\ 62.92
------------------------------------------------------------------------
Suspension of Liquidation
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\9\ The Department preliminarily determined that Vicentin
S.A.I.C., and companies Renova S.A., Oleaginosa Moreno Hermanos
S.A., Molinos Agro S.A., Patagonia Energia S.A., VFG Inversiones y
Actividades Especiales S.A., Vicentin S.A.I.C. Sucursal Uy, Trading
Company X, and Molinos Overseas Commodities S.A. are a single
entity. See Preliminary Decision Memorandum at ``Affiliation and
Collapsing.''
\10\ See Vicentin Preliminary Analysis Memorandum.
\11\ See Preliminary All-Others Rate Memorandum.
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In accordance with section 733(d)(2) of the Act, the Department
will direct U.S. Customs and Border Protection (CBP) to suspend
liquidation of entries of subject merchandise, as described in Appendix
I, entered, or withdrawn from warehouse, for consumption on or after
the date of publication of this notice in the Federal Register.
Furthermore, pursuant to section 733(d)(1)(B) of the Act and 19 CFR
351.205(d), the Department will instruct CBP to require a cash deposit
equal to the estimated weighted-average dumping margin, adjusted for
export subsidy offset(s), as follows: (1) The cash deposit rate for the
respondents listed above will be equal
[[Page 50393]]
to the company-specific estimated weighted-average dumping margins,
adjusted for export subsidy offset(s), determined in this preliminary
determination; (2) if the exporter is not a respondent identified
above, but the producer is, then the cash deposit rate will be equal to
the company-specific estimated weighted-average dumping margin,
adjusted for export subsidy offset(s), established for that producer of
the subject merchandise; and (3) the cash deposit rate for all other
producers and exporters will be equal to the all-others estimated
weighted-average dumping margin, adjusted for export subsidy offset(s).
The Department normally adjusts cash deposits for estimated
antidumping duties by the amount of export subsidies countervailed in a
companion CVD proceeding in accordance with section 772(c)(1)(C), when
CVD provisional measures are in effect. Accordingly, where the
Department preliminarily made an affirmative determination for
countervailable export subsidies, the Department has offset the
estimated weighted-average dumping margin by the appropriate CVD rate.
In the preliminary determination in the companion CVD investigation,
the Department found that Vicentin had a countervailable export subsidy
while LDC did not.\12\ Therefore, we preliminarily determine to adjust
the cash deposit rate for the Vicentin Group and make no adjustments to
the cash deposit rate for LDC in the Preliminary Determination.
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\12\ See Biodiesel from Argentina: Preliminary Affirmative
Countervailing Duty Determination and Preliminary Affirmative
Critical Circumstances Determination, in Part, 82 FR 40748 (August
28, 2017), and accompanying Preliminary Decision Memorandum.
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Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of subject merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered, or (b) the date on which notice of
initiation of the investigation was published. The Department
preliminarily finds that critical circumstances exist for imports of
subject merchandise produced or exported by LDC and ``all other''
exporters and producers not individually examined. In accordance with
section 733(e)(2)(A) of the Act, the suspension of liquidation shall
apply to unliquidated entries of shipments of subject merchandise from
the producer(s) or exporter(s) identified in this paragraph that were
entered, or withdrawn from warehouse, for consumption on or after the
date which is 90 days before the publication of this notice.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
The Department intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any public announcement or, if there is no public
announcement, within five days of the date of publication of this
notice in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, the Department intends
to verify the information relied upon in making its final
determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation, unless the Secretary alters the time limit.
Rebuttal briefs, limited to issues raised in case briefs, may be
submitted no later than five days after the deadline date for case
briefs.\13\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this investigation are
encouraged to submit with each argument: (1) A statement of the issue;
(2) a brief summary of the argument; and (3) a table of authorities.
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\13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, 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, 1401 Constitution Avenue NW., Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Final Determination
Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that
the Department will issue the final determination within 75 days after
the date of its preliminary determination. Accordingly, the Department
will make its final determination no later than 75 days after the
signature date of this preliminary determination.
International Trade Commission Notification
In accordance with section 733(f) of the Act, the Department will
notify the International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: October 19, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The product covered by this investigation 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 investigation 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 investigation.
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);
[[Page 50394]]
67762-26-9 (unsaturated alkylcarboxylic acid methyl ester); or
68937-84-8 (fatty acids, C12-C18, methyl ester).
The B100 product subject to the investigation 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.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Preliminary Affirmative Critical Circumstances, In Part
A. Legal Framework
B. Critical Circumstances Allegation
C. Analysis
V. Affiliation and Collapsing
A. Vicentin Group
VI. Discussion of the Methodology
A. Comparisions to Fair Value
VII. Product Comparisons
VIII. Date of Sale
IX. Export Price and Constructed Export Price
X. Normal Value
A. Market Viability
XI. Particular Market Situation
A. Background
B. Interest Parties' Arguments
C. Analysis
XII. Calculation of Normal Value Based on Constructed Value
XIII. Circumstance of Sale Adjustment
XIV. Adjustment to Cash Deposit Rate for Export Subsidies
XV. Currency Conversion
XVI. Conclusion
[FR Doc. 2017-23601 Filed 10-30-17; 8:45 am]
BILLING CODE 3510-DS-P
