Rubber Bands From Thailand, the People's Republic of China, and Sri Lanka: Initiation of Countervailing Duty Investigations, 8429-8433 [2018-03922]
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Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Notices
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
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. Parties should 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.56
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.57 Commerce
intends to reject factual submissions if
the submitting party does not comply
with applicable revised certification
requirements.
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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, Commerce published
Antidumping and Countervailing Duty
Proceedings: Documents Submission
Procedures; APO Procedures, 73 FR
3634 (January 22, 2008). Parties wishing
to participate in these investigations
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)).
56 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.
57 See
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This notice is issued and published
pursuant to sections 732(c)(2) and 777(i)
of the Act, and 19 CFR 351.203(c).
Dated: February 20, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement
and Compliance.
Appendix
Scope of the Investigations
The products subject to these
investigations are bands made of vulcanized
rubber, with a flat length, as actually
measured end-to-end by the band lying flat,
no less than 1⁄2 inch and no greater than 10
inches; with a width, which measures the
dimension perpendicular to the length,
actually of at least 3/64 inch and no greater
than 2 inches; and a wall thickness actually
from 0.020 inch to 0.125 inch. Vulcanized
rubber has been chemically processed into a
more durable material by the addition of
sulfur or other equivalent curatives or
accelerators. Subject products are included
regardless of color or inclusion of printed
material on the rubber band’s surface,
including but not limited to, rubber bands
with printing on them, such as a product
name, advertising, or slogan, and printed
material (e.g., a tag) fastened to the rubber
band by an adhesive or another temporary
type of connection. The scope includes
vulcanized rubber bands which are contained
or otherwise exist in various forms and
packages, such as, without limitation,
vulcanized rubber bands included within a
desk accessory set or other type of set or
package, and vulcanized rubber band balls.
The scope excludes products that consist of
an elastomer loop and durable tag all-in-one,
and bands that are being used at the time of
import to fasten an imported product.
Merchandise covered by these investigations
is currently classified in the Harmonized
Tariff Schedule of the United States (HTSUS)
under subheading 4016.99.3510.
Merchandise covered by the scope may also
enter under HTSUS subheading
4016.99.6050. While the HTSUS subheadings
are provided for convenience and customs
purposes, the written description of the
scope of the investigations is dispositive.
[FR Doc. 2018–03923 Filed 2–26–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–549–836, C–570–070, C–542–803]
Rubber Bands From Thailand, the
People’s Republic of China, and Sri
Lanka: Initiation of Countervailing Duty
Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable February 20, 2018.
FOR FURTHER INFORMATION CONTACT:
Frances Veith at (202) 482–4295 or
AGENCY:
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Shana Lee at (202) 482–6386 (Thailand),
Kristen Johnson at (202) 482–4793
(China), and Patricia Tran at (202) 482–
1503 (Sri Lanka), AD/CVD Operations,
Office III, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On January 30, 2018, the U.S.
Department of Commerce (Commerce)
received countervailing duty (CVD)
petitions concerning imports of rubber
bands from Thailand, the People’s
Republic of China (China), and Sri
Lanka, filed in proper form on behalf of
Alliance Rubber Co. (the petitioner).1
The CVD Petitions were accompanied
by antidumping duty (AD) petitions
concerning imports of rubber bands
from Thailand, China, and Sri Lanka.
The petitioner is a domestic producer of
rubber bands.2
On February 2, 2018, Commerce
requested supplemental information
pertaining to certain areas of the
Petitions.3 The petitioner filed
responses to these requests on February
8, 2018, which included revised scope
language.4 On February 12, 2018,
Commerce held a conference call with
the petitioner to discuss the scope of the
investigation, industry support, and
injury.5 The petitioner filed a response
1 See Letter from the petitioner ‘‘Petition for the
Imposition of Antidumping and Countervailing
Duties: Rubber Bands from Thailand, China and Sri
Lanka,’’ dated January 30, 2018 (Petitions).
2 Id. at Volume I of the Petitions at 1.
3 See Letter from Commerce to the petitioner,
‘‘Petition for the Imposition of Countervailing
Duties on Imports of Rubber Bands from Sri Lanka:
Supplemental Questions,’’ (Sri Lanka CVD Petition
Supplemental Questionnaire); ‘‘Petition for the
Imposition of Antidumping and Countervailing
Duties on Imports of Rubber Bands from the
People’s Republic of China, Sri Lanka, and
Thailand: Supplemental Questions,’’ (General
Issues Petition Supplemental Questionnaire);
‘‘Petition for the Imposition of Countervailing
Duties on Imports of Rubber Bands from the
People’s Republic of China (China): Supplemental
Questions,’’ (China CVD Petition Supplemental
Questionnaire); ‘‘Petition for the Imposition of
Countervailing Duties on Imports of Rubber Bands
from Thailand: Supplemental Questions,’’
(Thailand CVD Petition Supplemental
Questionnaire) dated February 2, 2018.
4 See Letter from petitioner to Commerce,
‘‘Petition for the Imposition of Antidumping and
Countervailing Duties on Rubber Bands from
Thailand, China and Sri Lanka—Responses to
Supplemental Questionnaires,’’ dated February 8,
2018 (General Issues Supplemental Response,
Thailand CVD Petition Supplemental Response,
China CVD Petition Supplemental Response, and
Sri Lanka CVD Petition Supplemental Response).
5 See Memorandum to the File, ‘‘Petition for the
Imposition of Antidumping and Countervailing
Duties on Rubber Bands from the People’s Republic
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to address issues discussed on the
conference call on February 13, 2018.6
On February 16, 2018, based on a
telephone conversation between
Commerce and counsel to the petitioner,
the petitioner made certain
clarifications to the scope.7
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), the petitioner alleges that the
Royal Thai Government (RTG), the
Government of China (GOC), and the
Government of Sri Lanka (GOSL) are
providing countervailable subsidies,
within the meaning of sections 701 and
771(5) of the Act, to producers of rubber
bands in Thailand, China, and Sri
Lanka, respectively, and imports of such
products are materially injuring, or
threatening material injury to, the
domestic rubber bands industry in the
United States. 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 Petitions are
accompanied by information reasonably
available to the petitioner supporting its
allegations.
Commerce 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)(C) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support necessary for the initiation of
the requested CVD investigation.8
Periods of Investigation
Because the Petitions were filed on
January 30, 2018, the periods of
investigation are January 1, 2017,
through December 31, 2017.
Scope of the Investigations
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The products covered by these
investigations are rubber bands from
Thailand, China, and Sri Lanka. For a
full description of the scope of these
investigations, see the ‘‘Scope of the
Investigation,’’ in the Appendix to this
notice.
of China, Sri Lanka, and Thailand,’’ dated February
12, 2018 (Phone Memorandum).
6 See Letter from petitioner to Commerce,
‘‘Petition for the Imposition of Antidumping and
Countervailing Duties on Rubber Bands from
Thailand, China and Sri Lanka—Supplemental
Responses to Supplemental Questionnaires,’’ dated
February 13, 2018 (Second General Issues
Supplemental Response).
7 See Memorandum to the File, ‘‘Phone Call with
Counsel to the Petitioner Regarding Scope
Clarification,’’ dated February 16, 2018 (Second
Phone Memorandum).
8 See ‘‘Determination of Industry Support for the
Petitions’’ section, below.
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Comments on Scope of the
Investigations
During our review of the Petitions,
Commerce issued questions to, and
received responses from, the petitioner
pertaining to the proposed scope to
ensure that the scope language in the
Petitions is an accurate reflection of the
product for which the domestic industry
is seeking relief.9 Commerce also held a
conference call with the petitioner
regarding the scope language.10 As a
result of these exchanges, the scope of
the Petitions was modified to clarify the
description of merchandise covered by
the Petitions.11 The description of the
merchandise covered by this initiation,
as described in the Appendix to this
notice, reflects these clarifications.
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(scope).12 Commerce will consider all
comments received from interested
parties and, if necessary, will consult
with interested parties prior to the
issuance of the preliminary
determination. If scope comments
include factual information, all such
factual information should be limited to
public information.13 To facilitate
preparation of its questionnaires,
Commerce requests all interested parties
submit such comments by 5:00 p.m.
Eastern Time (ET) on March 12, 2018
(20 calendar days from the signature
date of this notice). Any rebuttal
comments, which may include factual
information, must be filed by 5:00 p.m.
ET on March 22, 2018 (10 calendar days
from the initial comments deadline).14
Commerce requests that any factual
information parties consider relevant to
the scope of the investigations be
submitted during this 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 Commerce and request
permission to submit the additional
information. All such submissions must
be filed on the records of each of the
concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically using Enforcement
9 See
General Issues Supplemental Response.
Phone Memorandum.
11 See General Issues Supplemental Response at
10 See
6.
12 See Antidumping Duties; Countervailing
Duties, Final Rule, 62 FR 27296, 27323 (May 19,
1997) (Preamble).
13 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
14 See 19 CFR 351.303(b).
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and Compliance’s Antidumping Duty
and Countervailing Duty Centralized
Electronic Service System (ACCESS).15
An electronically filed document must
be received successfully in its entirety
by the time and date it is due.
Documents exempted 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 sections 702(b)(4)(A)(i)
and (ii) of the Act, Commerce notified
representatives of the RTG, GOC, and
GOSL of the receipt of the CVD
Petitions, and provided them the
opportunity for consultations with
respect to the Petitions.16 Commerce
held consultations with the GOC on
February 7, 2018,17 the GOSL on
February 14, 2018,18 and the RTG on
February 14, 2018.19
Determination of Industry Support for
the Petitions
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
15 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011). See also Enforcement and
Compliance: Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
which went into effect on August 5, 2011.
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%20
Procedures.pdf.
16 See Letter from Erin Begnal, Director, AD/CVD
Operations, Office III, to the Royal Thai Embassy,
‘‘Countervailing Duty Petition on Rubber Bands
from Thailand: Invitation for Consultations to
Discuss the Countervailing Duty Petition,’’ dated
January 31, 2018; Letter from Erin Begnal, Director,
AD/CVD Operations, Office III, to the Embassy of
the People’s Republic of China, ‘‘Countervailing
Duty Petition on Rubber Bands from the People’s
Republic of China: Invitation for Consultations to
Discuss the Countervailing Duty Petition,’’ dated
January 30, 2018; and Letter from Erin Begnal,
Director, AD/CVD Operations, Office III, to the
Embassy of Sri Lanka, ‘‘Countervailing Duty
Petition on Rubber Bands from Sri Lanka: Invitation
for Consultations to Discuss the Countervailing
Duty Petition,’’ dated January 30, 2018.
17 See Memorandum, ‘‘Countervailing Duty
Petitions on Cast Iron Soil Pipe and Rubber Bands
from the People’s Republic of China: Consultations
with Officials of the Government of China,’’ dated
February 8, 2018.
18 See Memorandum, ‘‘Countervailing Duty
Petition on Rubber Bands from Sri Lanka:
Consultations with Officials of the Government of
Sri Lanka,’’ dated February 14, 2018.
19 See Memorandum, ‘‘Consultations with
Government Officials from the Royal Thai
Embassy,’’ dated February 14, 2018.
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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,
Commerce 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 Commerce 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 Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,20 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’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.21
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 Petition).
With regard to the domestic like
product, the petitioner does not offer a
20 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)).
21 See
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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 rubber
bands, as defined in the scope,
constitute a single domestic like product
and we have analyzed industry support
in terms of that domestic like product.22
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 the Appendix to this
notice. To establish industry support,
the petitioner provided its own net sales
values of the domestic like product in
2017, and compared this to the
estimated total sales value of the
domestic like product for the entire
domestic industry.23 Because total
industry production data for the
domestic like product for 2017 are not
reasonably available to the petitioner,
and the petitioner has established that
sales values and shipments are a
reasonably proxy for production data,24
we have relied on the data the petitioner
provided for purposes of measuring
industry support.25
Our review of the data provided in the
Petitions, the General Issues
Supplemental Response, the Second
General Issues Supplemental Response,
and other information readily available
to Commerce indicates that the
petitioner has established industry
support for the Petitions.26 First, the
Petitions established support from
22 For a discussion of the domestic like product
analysis, see Countervailing Duty Investigation
Initiation Checklist: Rubber Bands from China
(China CVD Initiation Checklist), at Attachment II,
Analysis of Industry Support for the Antidumping
and Countervailing Duty Petition Covering Rubber
Bands from the People’s Republic of China, Sri
Lanka, and Thailand (Attachment II);
Countervailing Duty Investigation Initiation
Checklist: Rubber Bands from Sri Lanka (Sri Lanka
CVD Initiation Checklist), at Attachment II; and
Countervailing Duty Investigation Initiation
Checklist: Rubber Bands from Thailand (Thailand
CVD Initiation Checklist), at Attachment II. These
checklists are dated concurrently with, and hereby
adopted by, 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.
23 See General Issues Supplemental Response, at
8 and GEN–10S; see also Second General Issues
Supplemental Response, at 2–3.
24 See Second General Issues Supplemental
Response, at 2–3.
25 Id. For further discussion, see China CVD
Initiation Checklist, at Attachment II; Sri Lanka
CVD Initiation Checklist, at Attachment II; and
Thailand CVD Initiation Checklist, at Attachment II.
26 See China CVD Initiation Checklist, at
Attachment II; Sri Lanka CVD Initiation Checklist,
at Attachment II; and Thailand CVD Initiation
Checklist, at Attachment II.
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domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).27 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.28 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.29 Accordingly, Commerce
determines that the Petitions were filed
on behalf of the domestic industry
within the meaning of section 702(b)(1)
of the Act.
Commerce 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)(C) of the Act, and it has
demonstrated sufficient industry
support with respect to the CVD
investigations that it is requesting that
Commerce initiate.30
Injury Test
Because China, Sri Lanka, and
Thailand 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 China, Sri
Lanka, and Thailand 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.
27 See section 702(c)(4)(D) of the Act; see also
China CVD Initiation Checklist, at Attachment II;
Sri Lanka CVD Initiation Checklist, at Attachment
II; and Thailand CVD Initiation Checklist, at
Attachment II.
28 See China CVD Initiation Checklist, at
Attachment II; Sri Lanka CVD Initiation Checklist,
at Attachment II; and Thailand CVD Initiation
Checklist, at Attachment II.
29 Id.
30 Id.
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industry producing the domestic like
product. In addition, the petitioner
alleges that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.31 In
CVD petitions, section 771(24)(B) of the
Act provides that imports of subject
merchandise from developing and least
developed countries must exceed the
negligibility threshold of four percent.
The petitioner demonstrates that
imports from Thailand and Sri Lanka,
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 negligibility threshold of
four percent.32
The petitioner contends that the
industry’s injured condition is
illustrated by a significant and
increasing volume of subject imports;
reduced market share; underselling and
price depression or suppression; lost
sales and revenues; and a negative
impact on the domestic industry’s
financial performance.33 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.34
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Initiation of CVD Investigations
Based on the examination of the
Petitions, we find that they meet the
requirements of section 702 of the Act.
Therefore, we are initiating CVD
investigations to determine whether
imports of rubber bands from Thailand,
China, and Sri Lanka benefit from
countervailable subsidies conferred by
the RTG, GOC, and GOSL, respectively.
In accordance with section 703(b)(1) of
the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our
preliminary determinations no later
than 65 days after the date of this
initiation.
Numerous amendments to the AD and
CVD laws were made pursuant to the
31 See General Issues Supplemental Response, at
9 and Exhibit B.
32 Id.
33 See Volume I of the Petition, at 16–19, 25–47
and Exhibits GEN–3 through GEN–8, GEN–10 and
GEN–12; see also General Issues Supplemental
Response, at 8–16 and Exhibits A, B, and GEN–10S;
and Second General Issues Supplemental Response,
at 3 and Exhibit A.
34 See China CVD Initiation Checklist, at
Attachment III, Analysis of Allegations and
Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petition
Covering Rubber Bands from the People’s Republic
of China, Sri Lanka, and Thailand (Attachment III);
Sri Lanka CVD Initiation Checklist, at Attachment
III; and Thailand CVD Initiation Checklist, at
Attachment III.
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Trade Preferences Extension Act of
2015.35 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.36
Thailand
Based on our review of the Petition,
we find that there is sufficient
information to initiate a CVD
investigation on all of the 10 alleged
programs. For a full discussion of the
basis for our decision to initiate on each
program, see the Thai CVD Initiation
Checklist. A public version of the
initiation checklist for the Thai CVD
investigation is available on ACCESS.
China
Based on our review of the Petition,
we find that there is sufficient
information to initiate a CVD
investigation on some or all aspects of
the 16 alleged subsidy programs. For
three of these 16 programs, we are
partially initiating. Furthermore, we
have determined that two of the alleged
programs should be initiated as one
program providing export loans from
state-owned banks, reducing the 16
alleged programs into an initiation of 15
programs. For a full discussion of the
basis for our decision to initiate on each
program, see China CVD Initiation
Checklist. A public version of the
initiation checklist for this investigation
is available on ACCESS.
Sri Lanka
Based on our review of the Petition,
we find that there is sufficient
information to initiate a CVD
investigation on all of the 20 alleged
programs. For a full discussion of the
basis for our decision to initiate on each
program, see the Sri Lanka CVD
Initiation Checklist. A public version of
the initiation checklist for this
investigation is available on ACCESS.
Respondent Selection
The petitioner named 22 companies
in Thailand,37 12 companies in China,38
and four companies in Sri Lanka,39 as
producers/exporters of rubber bands.
35 See Trade Preferences Extension Act of 2015,
Public Law 114–27, 129 Stat. 362 (2015). See also
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.
36 See Applicability Notice, 80 FR at 46794–95.
37 See Volume I of the Petition, at Exhibit GEN–
2.
38 Id.
39 Id.
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
Commerce intends to follow its standard
practice in CVD investigations and
calculate company-specific subsidy
rates in these investigations. In the
event Commerce determines that the
number of companies is large and it
cannot individually examine each
company based upon Commerce’s
resources, where appropriate,
Commerce intends to select mandatory
respondents based on U.S. Customs and
Border Protection (CBP) data for U.S.
imports of rubber bands from Thailand,
China, and Sri Lanka during the POI
under the appropriate Harmonized
Tariff Schedule of the United States
numbers listed in the ‘‘Scope of the
Investigation,’’ in the Appendix.
On February 14, 2018, Commerce
released CBP data under Administrative
Protective Order (APO) to all parties
with access to information protected by
APO and indicated that interested
parties wishing to comment regarding
the CBP data and respondent selection
must do so within three business days
of the publication date of the notice of
initiation of these CVD investigations.40
Commerce will not accept rebuttal
comments regarding the CBP data or
respondent selection.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305(b).
Instructions for filing such applications
may be found on the Commerce’s
website at https://enforcement.trade.gov/
apo.
Comments 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
finalize our decisions regarding
respondent selection within 20 days of
publication of this notice.
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 RTG, GOC, and GOSL via ACCESS.
To the extent practicable, we will
attempt to provide a copy of the public
version of the Petitions to each exporter
named in the Petitions, as provided
under 19 CFR 351.203(c)(2).
40 See Memorandum to the File, ‘‘Countervailing
Duty Petition on Rubber Bands from the People’s
Republic of China: U.S. Customs Data for
Respondent Selection,’’ dated February 14, 2018;
and ‘‘Countervailing Duty Petition on Rubber Bands
from Sri Lanka: U.S. Customs Data for Respondent
Selection,’’ dated February 14, 2018; and ‘‘Rubber
Bands from the Kingdom of Thailand
Countervailing Duty Petition: Release of Customs
Data from U.S. Customs and Border Protection,’’
dated February 14, 2018.
E:\FR\FM\27FEN1.SGM
27FEN1
Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Notices
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 rubber bands from Thailand, China,
and Sri Lanka are materially injuring, or
threatening material injury to, a U.S.
industry.41 A negative ITC
determination for any country will
result in the investigation being
terminated with respect to that
country.42 Otherwise, these
investigations will proceed according to
statutory and regulatory time limits.
daltland on DSKBBV9HB2PROD with NOTICES
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 Commerce; and (v)
evidence other than factual information
described in (i)–(iv). 19 CFR 351.301(b)
requires any party, when submitting
factual information, to specify under
which subsection of 19 CFR
351.102(b)(21) the information is being
submitted 43 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.44 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. Interested
parties should review the regulations
prior to submitting factual information
in these investigations.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, 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 19 CFR 351.301.
For submissions that are due from
41 See
section 703(a)(2) of the Act.
section 703(a)(1) of the Act.
43 See 19 CFR 351.301(b).
44 See 19 CFR 351.301(b)(2).
42 See
VerDate Sep<11>2014
19:49 Feb 26, 2018
Jkt 244001
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
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. Parties should 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.45
Parties must use the certification
formats provided in 19 CFR
351.303(g).46 Commerce intends to
reject factual submissions if the
submitting party does 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, Commerce published
Antidumping and Countervailing Duty
Proceedings: Documents Submission
Procedures; APO Procedures, 73 FR
3634 (January 22, 2008). Parties wishing
to participate in these investigations
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).
45 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.
46 See
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
8433
Dated: February 20, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement
and Compliance.
Appendix
Scope of the Investigations
The products subject to these
investigations are bands made of vulcanized
rubber, with a flat length, as actually
measured end-to-end by the band lying flat,
no less than 1⁄2 inch and no greater than 10
inches; with a width, which measures the
dimension perpendicular to the length,
actually of at least 3/64 inch and no greater
than 2 inches; and a wall thickness actually
from 0.020 inch to 0.125 inch. Vulcanized
rubber has been chemically processed into a
more durable material by the addition of
sulfur or other equivalent curatives or
accelerators. Subject products are included
regardless of color or inclusion of printed
material on the rubber band’s surface,
including but not limited to, rubber bands
with printing on them, such as a product
name, advertising, or slogan, and printed
material (e.g., a tag) fastened to the rubber
band by an adhesive or another temporary
type of connection. The scope includes
vulcanized rubber bands which are contained
or otherwise exist in various forms and
packages, such as, without limitation,
vulcanized rubber bands included within a
desk accessory set or other type of set or
package, and vulcanized rubber band balls.
The scope excludes products that consist of
an elastomer loop and durable tag all-in-one,
and bands that are being used at the time of
import to fasten an imported product.
Merchandise covered by these investigations
is currently classified in the Harmonized
Tariff Schedule of the United States (HTSUS)
under subheading 4016.99.3510.
Merchandise covered by the scope may also
enter under HTSUS subheading
4016.99.6050. While the HTSUS subheadings
are provided for convenience and customs
purposes, the written description of the
scope of the investigations is dispositive.
[FR Doc. 2018–03922 Filed 2–26–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Notice of Request for Applicants for
Appointment to the United StatesMexico Energy Business Council
International Trade
Administration, Department of
Commerce.
ACTION: Notice.
AGENCY:
In 2016, agencies of the
Governments of the United States and
Mexico established the U.S.-Mexico
Energy Business Council (the
‘‘Council’’). This notice announces 10
membership opportunities for
appointment as U.S. representatives to
SUMMARY:
E:\FR\FM\27FEN1.SGM
27FEN1
Agencies
[Federal Register Volume 83, Number 39 (Tuesday, February 27, 2018)]
[Notices]
[Pages 8429-8433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03922]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-549-836, C-570-070, C-542-803]
Rubber Bands From Thailand, the People's Republic of China, and
Sri Lanka: Initiation of Countervailing Duty Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable February 20, 2018.
FOR FURTHER INFORMATION CONTACT: Frances Veith at (202) 482-4295 or
Shana Lee at (202) 482-6386 (Thailand), Kristen Johnson at (202) 482-
4793 (China), and Patricia Tran at (202) 482-1503 (Sri Lanka), AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On January 30, 2018, the U.S. Department of Commerce (Commerce)
received countervailing duty (CVD) petitions concerning imports of
rubber bands from Thailand, the People's Republic of China (China), and
Sri Lanka, filed in proper form on behalf of Alliance Rubber Co. (the
petitioner).\1\ The CVD Petitions were accompanied by antidumping duty
(AD) petitions concerning imports of rubber bands from Thailand, China,
and Sri Lanka. The petitioner is a domestic producer of rubber
bands.\2\
---------------------------------------------------------------------------
\1\ See Letter from the petitioner ``Petition for the Imposition
of Antidumping and Countervailing Duties: Rubber Bands from
Thailand, China and Sri Lanka,'' dated January 30, 2018 (Petitions).
\2\ Id. at Volume I of the Petitions at 1.
---------------------------------------------------------------------------
On February 2, 2018, Commerce requested supplemental information
pertaining to certain areas of the Petitions.\3\ The petitioner filed
responses to these requests on February 8, 2018, which included revised
scope language.\4\ On February 12, 2018, Commerce held a conference
call with the petitioner to discuss the scope of the investigation,
industry support, and injury.\5\ The petitioner filed a response
[[Page 8430]]
to address issues discussed on the conference call on February 13,
2018.\6\ On February 16, 2018, based on a telephone conversation
between Commerce and counsel to the petitioner, the petitioner made
certain clarifications to the scope.\7\
---------------------------------------------------------------------------
\3\ See Letter from Commerce to the petitioner, ``Petition for
the Imposition of Countervailing Duties on Imports of Rubber Bands
from Sri Lanka: Supplemental Questions,'' (Sri Lanka CVD Petition
Supplemental Questionnaire); ``Petition for the Imposition of
Antidumping and Countervailing Duties on Imports of Rubber Bands
from the People's Republic of China, Sri Lanka, and Thailand:
Supplemental Questions,'' (General Issues Petition Supplemental
Questionnaire); ``Petition for the Imposition of Countervailing
Duties on Imports of Rubber Bands from the People's Republic of
China (China): Supplemental Questions,'' (China CVD Petition
Supplemental Questionnaire); ``Petition for the Imposition of
Countervailing Duties on Imports of Rubber Bands from Thailand:
Supplemental Questions,'' (Thailand CVD Petition Supplemental
Questionnaire) dated February 2, 2018.
\4\ See Letter from petitioner to Commerce, ``Petition for the
Imposition of Antidumping and Countervailing Duties on Rubber Bands
from Thailand, China and Sri Lanka--Responses to Supplemental
Questionnaires,'' dated February 8, 2018 (General Issues
Supplemental Response, Thailand CVD Petition Supplemental Response,
China CVD Petition Supplemental Response, and Sri Lanka CVD Petition
Supplemental Response).
\5\ See Memorandum to the File, ``Petition for the Imposition of
Antidumping and Countervailing Duties on Rubber Bands from the
People's Republic of China, Sri Lanka, and Thailand,'' dated
February 12, 2018 (Phone Memorandum).
\6\ See Letter from petitioner to Commerce, ``Petition for the
Imposition of Antidumping and Countervailing Duties on Rubber Bands
from Thailand, China and Sri Lanka--Supplemental Responses to
Supplemental Questionnaires,'' dated February 13, 2018 (Second
General Issues Supplemental Response).
\7\ See Memorandum to the File, ``Phone Call with Counsel to the
Petitioner Regarding Scope Clarification,'' dated February 16, 2018
(Second Phone Memorandum).
---------------------------------------------------------------------------
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Royal Thai
Government (RTG), the Government of China (GOC), and the Government of
Sri Lanka (GOSL) are providing countervailable subsidies, within the
meaning of sections 701 and 771(5) of the Act, to producers of rubber
bands in Thailand, China, and Sri Lanka, respectively, and imports of
such products are materially injuring, or threatening material injury
to, the domestic rubber bands industry in the United States. 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
Petitions are accompanied by information reasonably available to the
petitioner supporting its allegations.
Commerce 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)(C) of the Act. Commerce also finds that the
petitioner demonstrated sufficient industry support necessary for the
initiation of the requested CVD investigation.\8\
---------------------------------------------------------------------------
\8\ See ``Determination of Industry Support for the Petitions''
section, below.
---------------------------------------------------------------------------
Periods of Investigation
Because the Petitions were filed on January 30, 2018, the periods
of investigation are January 1, 2017, through December 31, 2017.
Scope of the Investigations
The products covered by these investigations are rubber bands from
Thailand, China, and Sri Lanka. For a full description of the scope of
these investigations, see the ``Scope of the Investigation,'' in the
Appendix to this notice.
Comments on Scope of the Investigations
During our review of the Petitions, Commerce issued questions to,
and received responses from, the petitioner pertaining to the proposed
scope to ensure that the scope language in the Petitions is an accurate
reflection of the product for which the domestic industry is seeking
relief.\9\ Commerce also held a conference call with the petitioner
regarding the scope language.\10\ As a result of these exchanges, the
scope of the Petitions was modified to clarify the description of
merchandise covered by the Petitions.\11\ The description of the
merchandise covered by this initiation, as described in the Appendix to
this notice, reflects these clarifications.
---------------------------------------------------------------------------
\9\ See General Issues Supplemental Response.
\10\ See Phone Memorandum.
\11\ See General Issues Supplemental Response at 6.
---------------------------------------------------------------------------
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (scope).\12\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information, all such
factual information should be limited to public information.\13\ To
facilitate preparation of its questionnaires, Commerce requests all
interested parties submit such comments by 5:00 p.m. Eastern Time (ET)
on March 12, 2018 (20 calendar days from the signature date of this
notice). Any rebuttal comments, which may include factual information,
must be filed by 5:00 p.m. ET on March 22, 2018 (10 calendar days from
the initial comments deadline).\14\
---------------------------------------------------------------------------
\12\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\13\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\14\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------
Commerce requests that any factual information parties consider
relevant to the scope of the investigations be submitted during this
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 Commerce and request permission to
submit the additional information. All such submissions must be filed
on the records of each of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\15\ An electronically
filed document must be received successfully in its entirety by the
time and date it is due. Documents exempted 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.
---------------------------------------------------------------------------
\15\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011). See also Enforcement and
Compliance: Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, which went into effect on August 5, 2011. 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 sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified representatives of the RTG, GOC, and GOSL of the receipt of
the CVD Petitions, and provided them the opportunity for consultations
with respect to the Petitions.\16\ Commerce held consultations with the
GOC on February 7, 2018,\17\ the GOSL on February 14, 2018,\18\ and the
RTG on February 14, 2018.\19\
---------------------------------------------------------------------------
\16\ See Letter from Erin Begnal, Director, AD/CVD Operations,
Office III, to the Royal Thai Embassy, ``Countervailing Duty
Petition on Rubber Bands from Thailand: Invitation for Consultations
to Discuss the Countervailing Duty Petition,'' dated January 31,
2018; Letter from Erin Begnal, Director, AD/CVD Operations, Office
III, to the Embassy of the People's Republic of China,
``Countervailing Duty Petition on Rubber Bands from the People's
Republic of China: Invitation for Consultations to Discuss the
Countervailing Duty Petition,'' dated January 30, 2018; and Letter
from Erin Begnal, Director, AD/CVD Operations, Office III, to the
Embassy of Sri Lanka, ``Countervailing Duty Petition on Rubber Bands
from Sri Lanka: Invitation for Consultations to Discuss the
Countervailing Duty Petition,'' dated January 30, 2018.
\17\ See Memorandum, ``Countervailing Duty Petitions on Cast
Iron Soil Pipe and Rubber Bands from the People's Republic of China:
Consultations with Officials of the Government of China,'' dated
February 8, 2018.
\18\ See Memorandum, ``Countervailing Duty Petition on Rubber
Bands from Sri Lanka: Consultations with Officials of the Government
of Sri Lanka,'' dated February 14, 2018.
\19\ See Memorandum, ``Consultations with Government Officials
from the Royal Thai Embassy,'' dated February 14, 2018.
---------------------------------------------------------------------------
Determination of Industry Support for the Petitions
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the
[[Page 8431]]
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, Commerce 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 Commerce 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 Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\20\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce'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.\21\
---------------------------------------------------------------------------
\20\ See section 771(10) of the Act.
\21\ 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
Petition).
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 rubber bands, as
defined in the scope, constitute a single domestic like product and we
have analyzed industry support in terms of that domestic like
product.\22\
---------------------------------------------------------------------------
\22\ For a discussion of the domestic like product analysis, see
Countervailing Duty Investigation Initiation Checklist: Rubber Bands
from China (China CVD Initiation Checklist), at Attachment II,
Analysis of Industry Support for the Antidumping and Countervailing
Duty Petition Covering Rubber Bands from the People's Republic of
China, Sri Lanka, and Thailand (Attachment II); Countervailing Duty
Investigation Initiation Checklist: Rubber Bands from Sri Lanka (Sri
Lanka CVD Initiation Checklist), at Attachment II; and
Countervailing Duty Investigation Initiation Checklist: Rubber Bands
from Thailand (Thailand CVD Initiation Checklist), at Attachment II.
These checklists are dated concurrently with, and hereby adopted by,
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 the Appendix to
this notice. To establish industry support, the petitioner provided its
own net sales values of the domestic like product in 2017, and compared
this to the estimated total sales value of the domestic like product
for the entire domestic industry.\23\ Because total industry production
data for the domestic like product for 2017 are not reasonably
available to the petitioner, and the petitioner has established that
sales values and shipments are a reasonably proxy for production
data,\24\ we have relied on the data the petitioner provided for
purposes of measuring industry support.\25\
---------------------------------------------------------------------------
\23\ See General Issues Supplemental Response, at 8 and GEN-10S;
see also Second General Issues Supplemental Response, at 2-3.
\24\ See Second General Issues Supplemental Response, at 2-3.
\25\ Id. For further discussion, see China CVD Initiation
Checklist, at Attachment II; Sri Lanka CVD Initiation Checklist, at
Attachment II; and Thailand CVD Initiation Checklist, at Attachment
II.
---------------------------------------------------------------------------
Our review of the data provided in the Petitions, the General
Issues Supplemental Response, the Second General Issues Supplemental
Response, and other information readily available to Commerce indicates
that the petitioner has established industry support for the
Petitions.\26\ 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, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\27\ 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.\28\ 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.\29\ Accordingly, Commerce determines that the Petitions
were filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.
---------------------------------------------------------------------------
\26\ See China CVD Initiation Checklist, at Attachment II; Sri
Lanka CVD Initiation Checklist, at Attachment II; and Thailand CVD
Initiation Checklist, at Attachment II.
\27\ See section 702(c)(4)(D) of the Act; see also China CVD
Initiation Checklist, at Attachment II; Sri Lanka CVD Initiation
Checklist, at Attachment II; and Thailand CVD Initiation Checklist,
at Attachment II.
\28\ See China CVD Initiation Checklist, at Attachment II; Sri
Lanka CVD Initiation Checklist, at Attachment II; and Thailand CVD
Initiation Checklist, at Attachment II.
\29\ Id.
---------------------------------------------------------------------------
Commerce 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)(C) of the Act, and it has demonstrated sufficient
industry support with respect to the CVD investigations that it is
requesting that Commerce initiate.\30\
---------------------------------------------------------------------------
\30\ Id.
---------------------------------------------------------------------------
Injury Test
Because China, Sri Lanka, and Thailand 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
China, Sri Lanka, and Thailand 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.
[[Page 8432]]
industry producing the domestic like product. In addition, the
petitioner alleges that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\31\ In CVD
petitions, section 771(24)(B) of the Act provides that imports of
subject merchandise from developing and least developed countries must
exceed the negligibility threshold of four percent. The petitioner
demonstrates that imports from Thailand and Sri Lanka, 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
negligibility threshold of four percent.\32\
---------------------------------------------------------------------------
\31\ See General Issues Supplemental Response, at 9 and Exhibit
B.
\32\ Id.
---------------------------------------------------------------------------
The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price depression or suppression;
lost sales and revenues; and a negative impact on the domestic
industry's financial performance.\33\ 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.\34\
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\33\ See Volume I of the Petition, at 16-19, 25-47 and Exhibits
GEN-3 through GEN-8, GEN-10 and GEN-12; see also General Issues
Supplemental Response, at 8-16 and Exhibits A, B, and GEN-10S; and
Second General Issues Supplemental Response, at 3 and Exhibit A.
\34\ See China CVD Initiation Checklist, at Attachment III,
Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petition
Covering Rubber Bands from the People's Republic of China, Sri
Lanka, and Thailand (Attachment III); Sri Lanka CVD Initiation
Checklist, at Attachment III; and Thailand CVD Initiation Checklist,
at Attachment III.
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Initiation of CVD Investigations
Based on the examination of the Petitions, we find that they meet
the requirements of section 702 of the Act. Therefore, we are
initiating CVD investigations to determine whether imports of rubber
bands from Thailand, China, and Sri Lanka benefit from countervailable
subsidies conferred by the RTG, GOC, and GOSL, respectively. In
accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our preliminary determinations no later
than 65 days after the date of this initiation.
Numerous amendments to the AD and CVD laws were made pursuant to
the Trade Preferences Extension Act of 2015.\35\ 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.\36\
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\35\ See Trade Preferences Extension Act of 2015, Public Law
114-27, 129 Stat. 362 (2015). See also 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.
\36\ See Applicability Notice, 80 FR at 46794-95.
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Thailand
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on all of the 10
alleged programs. For a full discussion of the basis for our decision
to initiate on each program, see the Thai CVD Initiation Checklist. A
public version of the initiation checklist for the Thai CVD
investigation is available on ACCESS.
China
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on some or all
aspects of the 16 alleged subsidy programs. For three of these 16
programs, we are partially initiating. Furthermore, we have determined
that two of the alleged programs should be initiated as one program
providing export loans from state-owned banks, reducing the 16 alleged
programs into an initiation of 15 programs. For a full discussion of
the basis for our decision to initiate on each program, see China CVD
Initiation Checklist. A public version of the initiation checklist for
this investigation is available on ACCESS.
Sri Lanka
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on all of the 20
alleged programs. For a full discussion of the basis for our decision
to initiate on each program, see the Sri Lanka CVD Initiation
Checklist. A public version of the initiation checklist for this
investigation is available on ACCESS.
Respondent Selection
The petitioner named 22 companies in Thailand,\37\ 12 companies in
China,\38\ and four companies in Sri Lanka,\39\ as producers/exporters
of rubber bands. Commerce intends to follow its standard practice in
CVD investigations and calculate company-specific subsidy rates in
these investigations. In the event Commerce determines that the number
of companies is large and it cannot individually examine each company
based upon Commerce's resources, where appropriate, Commerce intends to
select mandatory respondents based on U.S. Customs and Border
Protection (CBP) data for U.S. imports of rubber bands from Thailand,
China, and Sri Lanka during the POI under the appropriate Harmonized
Tariff Schedule of the United States numbers listed in the ``Scope of
the Investigation,'' in the Appendix.
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\37\ See Volume I of the Petition, at Exhibit GEN-2.
\38\ Id.
\39\ Id.
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On February 14, 2018, Commerce released CBP data under
Administrative Protective Order (APO) to all parties with access to
information protected by APO and indicated that interested parties
wishing to comment regarding the CBP data and respondent selection must
do so within three business days of the publication date of the notice
of initiation of these CVD investigations.\40\ Commerce will not accept
rebuttal comments regarding the CBP data or respondent selection.
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\40\ See Memorandum to the File, ``Countervailing Duty Petition
on Rubber Bands from the People's Republic of China: U.S. Customs
Data for Respondent Selection,'' dated February 14, 2018; and
``Countervailing Duty Petition on Rubber Bands from Sri Lanka: U.S.
Customs Data for Respondent Selection,'' dated February 14, 2018;
and ``Rubber Bands from the Kingdom of Thailand Countervailing Duty
Petition: Release of Customs Data from U.S. Customs and Border
Protection,'' dated February 14, 2018.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on the Commerce's website at https://enforcement.trade.gov/apo.
Comments 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 finalize our decisions regarding respondent selection
within 20 days of publication of this notice.
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 RTG, GOC, and GOSL via ACCESS. To the extent
practicable, we will attempt to provide a copy of the public version of
the Petitions to each exporter named in the Petitions, as provided
under 19 CFR 351.203(c)(2).
[[Page 8433]]
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 rubber bands from Thailand, China, and Sri
Lanka are materially injuring, or threatening material injury to, a
U.S. industry.\41\ A negative ITC determination for any country will
result in the investigation being terminated with respect to that
country.\42\ Otherwise, these investigations will proceed according to
statutory and regulatory time limits.
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\41\ See section 703(a)(2) of the Act.
\42\ See section 703(a)(1) of the Act.
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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 Commerce; and (v) evidence other than factual
information described in (i)-(iv). 19 CFR 351.301(b) requires any
party, when submitting factual information, to specify under which
subsection of 19 CFR 351.102(b)(21) the information is being submitted
\43\ 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.\44\ 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. Interested parties should review the
regulations prior to submitting factual information in these
investigations.
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\43\ See 19 CFR 351.301(b).
\44\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, 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 19 CFR 351.301. 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. ET 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. Parties should 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.\45\
Parties must use the certification formats provided in 19 CFR
351.303(g).\46\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable revised
certification requirements.
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\45\ See section 782(b) of the Act.
\46\ 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, Commerce
published Antidumping and Countervailing Duty Proceedings: Documents
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008).
Parties wishing to participate in these investigations 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: February 20, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigations
The products subject to these investigations are bands made of
vulcanized rubber, with a flat length, as actually measured end-to-
end by the band lying flat, no less than \1/2\ inch and no greater
than 10 inches; with a width, which measures the dimension
perpendicular to the length, actually of at least 3/64 inch and no
greater than 2 inches; and a wall thickness actually from 0.020 inch
to 0.125 inch. Vulcanized rubber has been chemically processed into
a more durable material by the addition of sulfur or other
equivalent curatives or accelerators. Subject products are included
regardless of color or inclusion of printed material on the rubber
band's surface, including but not limited to, rubber bands with
printing on them, such as a product name, advertising, or slogan,
and printed material (e.g., a tag) fastened to the rubber band by an
adhesive or another temporary type of connection. The scope includes
vulcanized rubber bands which are contained or otherwise exist in
various forms and packages, such as, without limitation, vulcanized
rubber bands included within a desk accessory set or other type of
set or package, and vulcanized rubber band balls. The scope excludes
products that consist of an elastomer loop and durable tag all-in-
one, and bands that are being used at the time of import to fasten
an imported product. Merchandise covered by these investigations is
currently classified in the Harmonized Tariff Schedule of the United
States (HTSUS) under subheading 4016.99.3510. Merchandise covered by
the scope may also enter under HTSUS subheading 4016.99.6050. While
the HTSUS subheadings are provided for convenience and customs
purposes, the written description of the scope of the investigations
is dispositive.
[FR Doc. 2018-03922 Filed 2-26-18; 8:45 am]
BILLING CODE 3510-DS-P