Biodiesel From the Republic of Argentina: Final Affirmative Countervailing Duty Determination, 53477-53479 [2017-24857]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 82, Number 220 (Thursday, November 16, 2017)]
[Notices]
[Pages 53477-53479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24857]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-821]


Biodiesel From the Republic of Argentina: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of biodiesel from the Republic of Argentina. The period of 
investigation is January 1, 2016, through December 31, 2016.

DATES: Applicable November 16, 2017.

FOR FURTHER INFORMATION CONTACT: Kathryn Wallace or Elfi Blum, 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) 482-6251, or (202) 482-
0197, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on August 
28, 2017.\1\ A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the accompanying Final Decision Memorandum.\2\ The Final 
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 is available to all 
parties in the Central Records Unit, Room B8024 of the main Department 
of Commerce building. In addition, a complete version of the Final 
Decision Memorandum can be accessed directly at https://enforcement.trade.gov. The signed and electronic versions of the Final 
Decision Memorandum are identical in content.
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    \1\ See Biodiesel from Argentina: Preliminary Affirmative 
Countervailing Duty Determination and Preliminary Affirmative 
Critical Circumstances Determination, in Part, 82 FR 40748 
(Preliminary Determination) and accompanying Preliminary Decision 
Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
final Determination in the Countervailing Duty Investigation of 
Biodiesel from the Republic of Argentina,'' dated concurrently with 
this determination and hereby adopted by this notice (Final Decision 
Memorandum).
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Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2016, through December 31, 2016.

Scope of the Investigation

    The scope of the investigation covers biodiesel from the Republic 
of Argentina. The Department did not receive any scope comments and has 
not updated the scope of the investigation since the Preliminary 
Determination. For a complete description of the scope of this 
investigation, see Appendix II to this notice.

Final Negative Determination of Critical Circumstances

    In the Preliminary Determination, the Department determined that 
critical circumstances exist with respect to LDC Argentina S.A. (LDC 
Argentina) and Vicentin S.A.I.C. (Vicentin), but do not exist with 
respect to imports from all other producers or exporters of biodiesel 
from Argentina.\3\ As discussed in the Final Decision Memorandum, in 
accordance with section 705(a)(2) of the Tariff Act of 1930, as amended 
(the Act), the Department no longer finds critical circumstances with 
respect to imports from LDC Argentina and Vicentin. In addition, the 
Department continues to find that critical circumstances do not exist 
with respect to imports from all other producers or exporters of 
biodiesel from Argentina. Therefore, in accordance with section 
705(a)(2) of the Act, the Department determines that critical 
circumstances do not exist with respect to LDC Argentina, Vicentin, and 
all other producers or exporters of subject merchandise.
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    \3\ See Preliminary Determination at 82 FR 40749 and PDM at 5-8.
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs submitted by the interested parties in 
this proceeding, are discussed in the Final Decision Memorandum. A list 
of the issues raised by the parties and addressed by the

[[Page 53478]]

Department in the Final Decision Memorandum is attached at Appendix I 
to this notice.

Verification

    As provided in section 782(i) of the Act, during September 2017, 
the Department verified the subsidy information reported by the 
Government of Argentina (GOA), LDC Argentina, and Vicentin. We used 
standard verification procedures, including an examination of relevant 
accounting records and original source documents provided by the 
respondents.\4\
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    \4\ See Memorandum, ``Countervailing Duty Investigation of 
Biodiesel from the Republic of Argentina: Verification of the 
Questionnaire Responses of the Government of the Republic of 
Argentina,'' dated September 29, 2017; Memorandum, ``Countervailing 
Duty Investigation of Biodiesel from the Republic of Argentina: 
Verification of the Questionnaire Responses of LDC Argentina SA.,'' 
dated September 29, 2017; and Memorandum, ``Countervailing Duty 
Investigation of Biodiesel from Argentina: Verification of the 
Questionnaire Responses of Vicentin S.A.I.C.,'' dated September 29, 
2017.
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Use of Adverse Facts Available

    If necessary information is not available on the record, or an 
interested party withholds information, fails to provide requested 
information in a timely manner, significantly impedes a proceeding by 
not providing information, or information provided cannot be verified, 
the Department will apply facts available, pursuant to section 
776(a)(1) & (2) of the Act.
    For purposes of this final determination, the Department continued 
to rely, in part, on facts available. For the GOA and Vicentin,\5\ the 
Department is basing certain countervailability determinations and 
calculating subsidy rates for certain examined programs on facts 
otherwise available, pursuant to sections 776(a)(2)(A) and 776(a)(2)(C) 
and (D) of the Act. Further, because the GOA and Vicentin did not act 
to the best of their ability in this investigation in failing to 
provide necessary information requested by the Department, we determine 
that an adverse inference in selecting from among the facts available 
is warranted with respect to certain countervailable subsidy programs, 
pursuant to section 776(b) of the Act. The Department has therefore 
relied, in part, on adverse facts available (AFA) in its 
countervailability determination with respect to two programs, and in 
calculating the subsidy rate for certain Banco de la Nacion Argentina 
loan programs.
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    \5\ Vicentin includes its cross-owned affiliates Oleaginosa San 
Lorenzo S.A. (San Lorenzo) and Los Amores S.A. (Los Amores).
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    For further information on the Department's application of AFA, as 
summarized above, see the section titled, ``Use of Facts Otherwise 
Available and Adverse Inferences,'' in the Final Decision Memorandum.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received from parties and the 
minor corrections presented, we made certain changes to the 
respondents' subsidy rate calculations set forth in the Preliminary 
Determination. For a discussion of these changes, see the Final 
Decision Memorandum and the Final Calculation Memoranda.\6\
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    \6\ See Final Decision Memorandum; see also See Memorandum, 
``Countervailing Duty Investigation of Biodiesel from Argentina: 
Final Calculations for LDC Argentina S.A.,'' dated November 6, 2017 
(LDC Argentina Final Calculation Memorandum); see also Memorandum, 
``Countervailing Duty Investigation of Biodiesel from Argentina: 
Final Calculations for Vicentin S.A.I.C. et Alia,'' dated November 
6, 2017 (Vicentin Final Calculation Memorandum).
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All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, the 
Department calculated a countervailable subsidy rate for the 
individually investigated exporters/producers of the subject 
merchandise. Consistent with sections 705(c)(1)(B)(i)(I) and 
705(c)(5)(A) of the Act, the Department also calculated an estimated 
``all-others'' rate for exporters and producers not individually 
investigated. Section 705(c)(5)(A)(i) of the Act provides that the 
``all-others'' rate shall be an amount equal to the weighted-average of 
the countervailable subsidy rates established for individually 
investigated exporters and producers, excluding any rates that are zero 
or de minimis or any rates determined entirely under section 776 of the 
Act. In this investigation, the Department calculated individual 
estimated countervailable subsidy rates for LDC Argentina and Vicentin 
that are not zero, de minimis, or based entirely on facts otherwise 
available. Therefore, the Department calculated the all-others rate 
using a simple average of the individual estimated subsidy rates 
calculated for the examined respondents.\7\
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    \7\ With two respondents under examination, the Department 
normally calculates (A) a weighted-average of the estimated subsidy 
rates calculated for the examined respondents; (B) a simple average 
of the estimated subsidy rates calculated for the examined 
respondents; and (C) a weighted-average of the estimated subsidy 
rates 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, e.g., 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). However, complete 
publicly ranged sales data are not available on the record of this 
investigation. Therefore, the Department has based the all-others 
rate on a simple average of the estimated subsidy rates calculated 
for the examined respondents. For a complete analysis of the data, 
please see the All-Others' Rate Calculation Memorandum.
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Final Determination

    The Department determines the total estimated countervailable 
subsidy rates to be:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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LDC Argentina S.A \8\.......................................       72.28
Vicentin S.A.I.C \9\........................................       71.45
All-Others..................................................       71.87
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Disclosure
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    \8\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
LDC Argentina S.A.: LDC Semillas S.A., Semillas del Rosario S.A.
    \9\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
Vicentin S.A.I.C.: Oleaginosa San Lorenzo S.A, Los Amores S.A.
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    The Department will disclose the calculations performed within five 
days of the date of publication of this notice to parties in this 
proceeding in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with sections 703(d) of the Act, the Department will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of biodiesel from 
Argentina, which were entered, or withdrawn from warehouse, for 
consumption on or after August 28, 2017, the date of publication of the 
Preliminary Determination. Further, the Department will instruct CBP to 
require a cash deposit for such entries of merchandise. Because the 
Department finds critical circumstances no longer exist for LDC 
Argentina and Vicentin, the Department will terminate the retroactive 
suspension of liquidation ordered at the Preliminary Determination and 
release any cash deposits that were required during the period May 30, 
2017 through August 27, 2017, consistent with section 705(c)(3) of the 
Act.

[[Page 53479]]

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of countervailable subsidies. Because the final 
determination in this proceeding is affirmative, in accordance with 
section 705(b) of the Act, the ITC will make its final determination as 
to whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports of 
biodiesel from Argentina no later than 45 days after our final 
determination. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, the Department will issue a CVD order directing CBP 
to assess, upon further instruction by the Department, countervailing 
duties on all imports of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a violation subject to 
sanction.
    This determination is issued and published in accordance with 
sections 705(d) and 777(i) of the Act.

    Dated: November 6, 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

List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Final Determination of Critical Circumstances
VII. Subsidies Valuation Information
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Analysis of Programs
X. Discussion of the Issues
    Comment 1: Whether an Export Tax on Soybeans Is a 
Countervailable Subsidy
    Comment 2: Whether Benefits Associated With Purchases of 
Soybeans for LTAR Are Tied to Sales of Soybean-Based Products
    Comment 3: Whether the Department Should Add a Certain Expense 
to the Two-Tier Benchmark
    Comment 4: Whether the Department's Benchmark Relates to the 
Prevailing Market Conditions in Argentina
    Comment 5: Whether the Department Should Attribute Los Amores' 
Alleged Subsidies to Vicentin
    Comment 6: Whether the Department Should Apply AFA Regarding 
Certain BNA Preferential Loans
    Comment 7: Whether the Department Has the Authority to 
Investigate ``All Other'' Subsidies
    Comment 8: Whether To Apply AFA to Los Amores' Use of a Ten-Year 
Tax Exemption Provided by the Province of Santiago del Estero
    Comment 9: Whether the Department Correctly Calculated LDC 
Argentina's Benefit From the General Lagos DReI Convenio
    Comment 10: Whether ``Pacto Fiscal'' Confers Countervailable 
Benefits to LDC Argentina
XI. Conclusion

Appendix II

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 covers 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); 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.

[FR Doc. 2017-24857 Filed 11-15-17; 8:45 am]
 BILLING CODE 3510-DS-P