Ripe Olives From Spain: Final Affirmative Countervailing Duty Determination, 28186-28189 [2018-12990]

Download as PDF amozie on DSK3GDR082PROD with NOTICES1 28186 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices (FACA), that a meeting of the Maryland Advisory Committee to the Commission will convene by conference call at 11:00 a.m. (EDT) on Thursday, July 12, 2018. The purpose of the meeting is to continue discussion of speaker selection and logistics for the August briefing on education disparity. DATES: Thursday, July 12, 2018, at 11:00 a.m. (EDT). Public Call-In Information: Conference call-in number: 1–877–741– 4240 and conference ID: 4020227. FOR FURTHER INFORMATION CONTACT: Evelyn Bohor at ero@usccr.gov or by phone at 202–376–7533. SUPPLEMENTARY INFORMATION: Interested members of the public may listen to the discussion by calling the following tollfree conference call-in number: 1–877– 741–4240 and conference ID: 4020227. Please be advised that before placing them into the conference call, the conference call operator will ask callers to provide their names, their organizational affiliations (if any), and email addresses (so that callers may be notified of future meetings). Callers can expect to incur charges for calls they initiate over wireless lines, and the Commission will not refund any incurred charges. Callers will incur no charge for calls they initiate over landline connections to the toll-free conference call-in number. Persons with hearing impairments may also follow the discussion by first calling the Federal Relay Service at 1–800–877–8339 and providing the operator with the toll-free conference call-in number: 1–877–741–4240 and conference ID: 4020227. Members of the public are invited to make statements during the open comment period of the meeting or submit written comments. The comments must be received in the regional office approximately 30 days after each scheduled meeting. Written comments may be mailed to the Eastern Regional Office, U.S. Commission on Civil Rights, 1331 Pennsylvania Avenue, Suite 1150, Washington, DC 20425, faxed to (202) 376–7548, or emailed to Evelyn Bohor at ero@ usccr.gov. Persons who desire additional information may contact the Eastern Regional Office at (202) 376– 7533. Records and documents discussed during the meeting will be available for public viewing as they become available at https://facadatabase.gov/committee/ meetings.aspx?cid=253, click the ‘‘Meeting Details’’ and ‘‘Documents’’ links. Records generated from this meeting may also be inspected and reproduced at the Eastern Regional VerDate Sep<11>2014 18:00 Jun 15, 2018 Jkt 244001 Office, as they become available, both before and after the meetings. Persons interested in the work of this advisory committee are advised to go to the Commission’s website, www.usccr.gov, or to contact the Eastern Regional Office at the above phone numbers, email or street address. Agenda Thursday, July 12, 2018 at 11:00 a.m. (EDT) • Rollcall • Planning Meeting to Discuss Speaker Selection and Logistics for August Briefing • Other Business • Open Comment • Adjourn Dated: June 12, 2018. David Mussatt, Supervisory Chief, Regional Programs Unit. [FR Doc. 2018–12917 Filed 6–15–18; 8:45 am] BILLING CODE P DEPARTMENT OF COMMERCE International Trade Administration [C–469–818] Ripe Olives From Spain: Final Affirmative Countervailing Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of ripe olives from Spain. The period of investigation (POI) is January 1, 2016, through December 31, 2016. DATES: Applicable June 18, 2018. FOR FURTHER INFORMATION CONTACT: Mary Kolberg or Lana Nigro, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1785, or (202) 482–1779, respectively. AGENCY: SUPPLEMENTARY INFORMATION: Background On November 28, 2017, Commerce published the Preliminary Determination of this countervailing duty investigation, as provided by section 705 of the Tariff Act of 1930, as amended (the Act), in which Commerce found that countervailable subsidies are being provided to producers and PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 exporters of ripe olives from Spain.1 A summary of the events that have occurred since Commerce 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 Issues and Decision Memorandum which is hereby adopted by this notice.2 Scope of the Investigation The product covered by this investigation is ripe olives from Spain. For a complete description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the preamble to Commerce’s regulations,3 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope). No interested party commented on the scope of the investigation as it appeared in the Initiation Notice during the scope comment period.4 For the Preliminary Determination, Commerce did not modify the scope language as it appeared in the Initiation Notice. However, the issue of cocktail mixes arose in the context of the companion antidumping duty (AD) investigation on ripe olives from Spain. In the April 3, 2018, post-preliminary we issued with respect to the scope of the investigation, we found that: (i) Ripe olives contained in cocktail mixes are in the scope, but that the remaining ingredients are not in the scope, and (ii) we clarified the scope by adding language concerning ripe olives contained in cocktail mixes.5 As a result of our analysis of comments received in response to this postpreliminary analysis, we have modified the scope of this investigation for this final determination. For a summary of the product coverage comments and rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis 1 See Ripe Olives from Spain: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination with Final Antidumping Duty Determination, 82 FR 56218 (November 28, 2017) and accompanying Preliminary Decision Memorandum (Preliminary Decision Memorandum) (collectively, Preliminary Determination). 2 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Affirmative Countervailing Duty Determination for Ripe Olives from Spain,’’ dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). 3 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 4 See Ripe Olives from Spain: Initiation of Countervailing Duty Investigation, 82 FR 33050 (July 19, 2017) (Initiation Notice). 5 See Memorandum, ‘‘Ripe Olives from Spain: Post-Preliminary Scope Clarification Decision Memorandum,’’ dated April 3, 2018. E:\FR\FM\18JNN1.SGM 18JNN1 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices of all comments timely received, see the Issues and Decision Memorandum.6 Methodology Commerce is conducting this CVD investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, we determine that there is a subsidy (i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient) and that the subsidy is specific. For a full description of the methodology underlying our final determination, see the Issues and Decisions Memorandum. Verification As provided in section 782(i) of the Act, in February and March 2018, we conducted verification of the information submitted by the European Commission, the Government of Spain, and the mandatory respondents Aceitunas Guadalquivir S.L. (AG), Agro Sevilla Aceitunas S.COOP.And. (Agro Sevilla) and Angel Camacho Alimentacion S.L. (Camacho) for use in Commerce’s final determination. We used standard verification procedures, including an examination of relevant accounting records and original source documents provided by the respondents. Analysis of Comments Received The subsidies programs under investigation and all issues raised in the case and rebuttal briefs that were submitted by parties in this investigation are addressed in the Issues and Decision Memorandum. A list of these issues is attached to this notice as Appendix II. The Issues and 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 http://access.trade.gov, and to all parties in the Central Records Unit, room B8024 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/ frn/. amozie on DSK3GDR082PROD with NOTICES1 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 6 See Issues and Decision Memorandum at Comment 30. VerDate Sep<11>2014 18:00 Jun 15, 2018 Jkt 244001 information, or information provided cannot be verified, Commerce will apply facts available, pursuant to section 776(a)(1) and (2) of the Act. For purposes of this final determination, Commerce relied, in part, on facts available and, because certain respondents did not cooperate by not acting to the best of their ability to respond to the Commerce’s requests for information, we drew an adverse inference, where appropriate, in selecting from among the facts otherwise available.7 A full discussion of our decision to rely on adverse facts available is presented in the ‘‘Application of Facts Otherwise Available and Use of Adverse Inferences’’ section of the Issues and Decision Memorandum. Changes Since the Preliminary Determination Based on Commerce’s analysis of the comments received and its findings at verification, Commerce made certain changes to the subsidy rate calculations for AG, Agro Sevilla and Camacho.8 In addition, Commerce revised the subsidy rate calculations for the respondents to reflect the reliance on partial facts available with an adverse inference pursuant to section 776(b) of the Act. Because of these changes to the estimated subsidy rate for each mandatory respondent we have also revised the subsidy rate applicable to all other prroducers and exporters (the allothers rate). All-Others Rate Section 705(c)(5)(A) of the Act provides that in the final determination, Commerce shall determine an estimated subsidy rate for all exporters or producers not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those exporters and producers individually examined, excluding any zero and de minimis countervailable subsidy rates, and any rates based entirely under section 776 of the Act. In this investigation, we calculated individually estimated countervailable subsidy rates for AG, Agro Sevilla and Camacho, that are not zero, de minimis, or based entirely on facts otherwise available. Because there are three estimated subsidy rates available and doing so would not reveal business proprietary information, we calculated 7 See sections 776(a) and (b) of the Act. the ‘‘Discussion of the Issues’’ section of the Issues and Decision Memorandum and the company-specific analysis memoranda dated concurrently with, and hereby incorporated by, this notice. 8 See PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 28187 the all-others rate using a weightedaverage of the individually estimated subsidy rates calculated for the examined respondents using each respondent’s business proprietary data for the merchandise under consideration.9 Final Determination We determine that the following estimated countervailable subsidy rates exist: Exporter/producer Aceitunas Guadalquivir S.L.10 .... Agro Sevilla Aceitunas S.COOP.And.11 ....................... Angel Camacho Alimentacion S.L. .......................................... All-Others .................................... Subsidy rate (percent) 27.02 7.52 13.22 14.75 Disclosure We intend to disclose to interested parties the calculations and analysis performed in this final determination within five days of any public announcement or, if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). Suspension of Liquidation As a result of our Preliminary Determination, and pursuant to sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of merchandise under consideration from Spain that were entered or withdrawn from warehouse, for consumption, on or after November 28, 2017, the date of publication of the Preliminary Determination in the Federal Register. In accordance with section 703(d) of the Act, effective March 28, 2018, we instructed CBP to discontinue the suspension of liquidation of all entries at that time, but to continue the suspension of liquidation of all entries between November 28, 2017, and March 27, 2018. If the U.S. International Trade Commission (ITC) makes a final affirmative injury determination we will issue a CVD order, reinstate the 9 For a complete analysis of the data, see Memorandum, ‘‘Countervailing Duty Investigation of Ripe Olives form Spain: Calculation of the AllOthers Calculation Rate for the Final Determination,’’ dated concurrently with this notice. 10 In the companion AD investigation, this company’s name is spelled as Aceitunas Guadalquivir S.L. 11 In the companion AD investigation, this company’s name is spelled as Agro Sevilla Aceitunas S.Coop Andalusia. E:\FR\FM\18JNN1.SGM 18JNN1 28188 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices suspension of liquidation under section 706(a) of the Act, and require a cash deposit of estimated CVDs for such entries of subject merchandise in the amounts indicated above. If the ITC determines that material injury or threat of material injury does not exist, the proceeding will be terminated and all estimated duties deposited as a result of the suspension of liquidation will be refunded or cancelled. International Trade Commission Notification In accordance with section 705(d) of the Act, Commerce will notify the ITC of its final determination. Because the final determination in this proceeding is affirmative, in accordance with section 705(b)(2)(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 ripe olives from Spain no later than 45 days after Commerce’s final determination. Notification to Interested Parties This notice serves as a reminder to parties subject to an 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 notification of the return or 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 and this notice are issued and published pursuant to sections 705(d) and 777(i)(1) of the Act. Dated: June 11, 2018. 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. amozie on DSK3GDR082PROD with NOTICES1 Appendix I—Scope of the Investigation The products covered by this investigation are certain processed olives, usually referred to as ‘‘ripe olives.’’ The subject merchandise includes all colors of olives; all shapes and sizes of olives, whether pitted or not pitted, and whether whole, sliced, chopped, minced, wedged, broken, or otherwise reduced in size; all types of packaging, whether for consumer (retail) or institutional (food service) sale, and whether canned or packaged in glass, metal, plastic, multilayered airtight containers (including pouches), or otherwise; and all manners of preparation and preservation, whether low acid or acidified, stuffed or not stuffed, with or without flavoring and/or saline solution, VerDate Sep<11>2014 18:00 Jun 15, 2018 Jkt 244001 and including in ambient, refrigerated, or frozen conditions. Included are all ripe olives grown, processed in whole or in part, or packaged in Spain. Subject merchandise includes ripe olives that have been further processed in Spain or a third country, including but not limited to curing, fermenting, rinsing, oxidizing, pitting, slicing, chopping, segmenting, wedging, stuffing, packaging, or heat treating, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in Spain. Subject merchandise includes ripe olives that otherwise meet the definition above that are packaged together with non-subject products, where the smallest individual packaging unit (e.g., can, pouch, jar, etc.) of any such product—regardless of whether the smallest unit of packaging is included in a larger packaging unit (e.g., display case, etc.)—contains a majority (i.e., more than 50 percent) of ripe olives by net drained weight. The scope does not include the non-subject components of such product. Excluded from the scope are: (1) Specialty olives 12 (including ‘‘Spanish-style,’’ ‘‘Sicilian-style,’’ and other similar olives) that have been processed by fermentation only, or by being cured in an alkaline solution for not longer than 12 hours and subsequently fermented; and (2) provisionally prepared olives unsuitable for immediate consumption (currently classifiable in subheading 0711.20 of the Harmonized Tariff Schedule of the United States (HTSUS)). The merchandise subject to this investigation is currently classifiable under subheadings 2005.70.0230, 2005.70.0260, 2005.70.0430, 2005.70.0460, 2005.70.5030, 2005.70.5060, 2005.70.6020, 2005.70.6030, 2005.70.6050, 2005.70.6060, 2005.70.6070, 12 Some of the major types of specialty olives and their curing methods are: • ‘‘Spanish-style’’ green olives: Spanish-style green olives have a mildly salty, slightly bitter taste, and are usually pitted and stuffed. This style of olive is primarily produced in Spain and can be made from various olive varieties. Most are stuffed with pimento; other popular stuffings are jalapeno, garlic, and cheese. The raw olives that are used to produce Spanish-style green olives are picked while they are unripe, after which they are submerged in an alkaline solution for typically less than a day to partially remove their bitterness, rinsed, and fermented in a strong salt brine, giving them their characteristic flavor. • ‘‘Sicilian-style’’ green olives: Sicilian-style olives are large, firm green olives with a natural bitter and savory flavor. This style of olive is produced in small quantities in the United States using a Sevillano variety of olive and harvested green with a firm texture. Sicilian-style olives are processed using a brine-cured method, and undergo a full fermentation in a salt and lactic acid brine for 4 to 9 months. These olives may be sold whole unpitted, pitted, or stuffed. • ‘‘Kalamata’’ olives: Kalamata olives are slightly curved in shape, tender in texture, and purple in color, and have a rich natural tangy and savory flavor. This style of olive is produced in Greece using a Kalamata variety olive. The olives are harvested after they are fully ripened on the tree, and typically use a brine-cured fermentation method over 4 to 9 months in a salt brine. • Other specialty olives in a full range of colors, sizes, and origins, typically fermented in a salt brine for 3 months or more. PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 2005.70.7000, 2005.70.7510, 2005.70.7515, 2005.70.7520, and 2005.70.7525 HTSUS. Subject merchandise may also be imported under subheadings 2005.70.0600, 2005.70.0800, 2005.70.1200, 2005.70.1600, 2005.70.1800, 2005.70.2300, 2005.70.2510, 2005.70.2520, 2005.70.2530, 2005.70.2540, 2005.70.2550, 2005.70.2560, 2005.70.9100, 2005.70.9300, and 2005.70.9700. Although HTSUS subheadings are provided for convenience and US Customs purposes, they do not define the scope of the investigation; rather, the written description of the subject merchandise is dispositive. Appendix II—List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Investigation IV. Scope Comments V. Subsidies Valuation VI. Loan Interest Rate Benchmarks and Discount Rates VII. Application of Facts Otherwise Available and Use of Adverse Inference VIII. Analysis of Programs IX. Discussion of the Issues Comment 1: Whether Section 771B of the Act is Applicable in This Investigation Comment 2: Whether a Pass-Through Analysis is Required Comment 3: Whether the EU CAP Pillar I –BPS, SPS, and Greening Programs are Countervailable Comment 4: Whether EU CAP Pillar II Agricultural Fund for Rural Development is Specific Comment 5: Whether Commerce Should AFA to the Non-Cooperating Growers Comment 6: Whether Commerce used the Correct Calculation Methodology to Measure Subsides Received by the Respondents Comment 7: Whether Commerce Should Remove Non-Growers and Adjust the Calculation of Benefits to Exclude the Olive Volume of Non-Producing Suppliers Comment 8: Whether Commerce Should Apply AFA to Agro Sevilla Regarding Cross-Ownership with its First-Tier Suppliers Comment 9: Whether Grant Funding Sourced From the ERDF is Regionally Specific Comment 10: Whether the EU Sustainable Energy Development of Andalusia Scheme Program is Specific Comment 11: Whether the PROSOL Program is Specific Comment 12: Whether the EU Regional Development Fund and IDEA Program is Specific Comment 13: Whether the EU Environment and Climate Action (LIFE) Program is Specific Comment 14: Whether the SAIS Program is Specific Comment 15: Whether Financing Sourced from the Spanish Official Credit Institute (ICO) is Countervailable Comment 16: Whether Commerce Should Adjust the Interest Rate Used in Certain E:\FR\FM\18JNN1.SGM 18JNN1 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices Long-Term ICO Financing to Angel Camacho Comment 17: Whether Commerce Should Adjust the Calculation of European Investment Bank (EIB) Financing Received by Agro Sevilla Comment 18: Whether To Apply AFA to the CDTI Program Comment 19: Whether the CDTI Program is Export Specific Comment 20: Whether Commerce Should Apply AFA to Angel Camacho’s Unreported Grant Presented at Verification Comment 21: Whether Commerce Should Rely on ‘‘Unverified’’ Information Comment 22: Whether Commerce Should Adjust the Volume of Raw Olives Purchased to Account for Waste Loss Comment 23: Whether Commerce Should Accept Rejected Submission from the GOS and the Respondents Comment 24: Comments on the Verification Reports Comment 26: Whether Commerce’s Conduct in This Investigation Meets the Requirements of the ASCM Comment 26: Whether Other Discovered Subsidies Should be Included in this Investigation and Whether Other Assistance Can Form the Basis for Applying AFA Comment 27: Whether Commerce Should Include the Corrections of the Alleged Ministerial Errors Comment 28: Commerce Must Use Corrected and Revised Data in the Calculations Comment 29: Whether To Clarify the Scope of the Investigation to Include Ripe Olives Contained in Cocktail Mixes Comment 30: The Product to Which the Countervailing Duty Applies X. Recommendation [FR Doc. 2018–12990 Filed 6–15–18; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–087] Steel Propane Cylinders From the People’s Republic of China: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable June 11, 2018. FOR FURTHER INFORMATION CONTACT: Samuel Brummitt, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone (202) 482–7851. SUPPLEMENTARY INFORMATION: amozie on DSK3GDR082PROD with NOTICES1 AGENCY: The Petition On May 22, 2018, the U.S. Department of Commerce (Commerce) VerDate Sep<11>2014 18:00 Jun 15, 2018 Jkt 244001 received a countervailing duty (CVD) petition concerning imports of steel propane cylinders from the People’s Republic of China (China), and antidumping duty (AD) petitions concerning imports of steel propane cylinders from China, Taiwan, and Thailand filed in proper form on behalf of Worthington Industries and Manchester Tank & Equipment Co. (the petitioners).1 The petitioners are domestic producers of steel propane cylinders.2 The petitioners amended the scope of the petitioners on May 24, 2018.3 On May 25, 2018, Commerce requested supplemental information pertaining to certain areas of the petition.4 The petitioners filed responses to these requests on May 30, 2018.5 On May 30, 2018, the petitioners submitted certain revisions to the scope.6 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioners allege that the Government of China (GOC) is providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of steel propane cylinders in China and imports of such products are materially injuring, or threatening material injury to, the domestic steel propane cylinders 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 1 See Petitioners’ Letter, ‘‘Steel Propane Cylinders from the People’s Republic of China, Taiwan, and Thailand: Petition for the Imposition of Antidumping and Countervailing Duties,’’ dated May 22, 2018 (the Petitions). For the purposes of the instant notice, all references to ‘the Petition,’ herein, refer specifically to the CVD Petition, and all references to ‘‘AD Petitions,’’ herein refer specifically to the petitioners filed in the companion AD proceedings. 2 See Petition at Volume I at 1–2. 3 See Petitioners’ Letter, ‘‘Steel Propane Cylinders from the People’s Republic of China, Taiwan, and Thailand: Petitioners’ Amendment to Volume I Relating to General Issues,’’ dated May 24, 2018 (Scope Amendment). 4 See Department Letter re: Petition for the Imposition of Countervailing Duties on Imports of Steel Propane Cylinders from the People’s Republic of China: Supplemental Questions, dated May 25, 2018; and Department Letter re: Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Steel Propane Cylinders from the People’s Republic of China, Taiwan, and Thailand: Supplemental Questions, dated May 25, 2018 (Petition Supplemental Questions). 5 See Petitioners’ Letter, ‘‘Steel Propane Cylinders from the People’s Republic of China, Taiwan, and Thailand—Petitioners’ Supplement to Volume I Relating to General Issues,’’ dated May 30, 2018 (General Issues Supplement); see also Petitioners’ Letter, ‘‘Steel Propane Cylinders from the People’s Republic of China, Taiwan, and Thailand— Petitioners’ Amendment to Volume V Relating to the People’s Republic of China Countervailing Duties,’’ dated May 30, 2018 (China CVD Petition Supplement). 6 See General Issues Supplement at 11–12. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 28189 CVD investigation, the petition is accompanied by information reasonably available to the petitioners supporting their allegations. Commerce finds that the petitioners filed the petition on behalf of the domestic industry because the petitioners are interested parties as defined in section 771(9)(C) of the Act. We also find that the petitioners demonstrated sufficient industry support with respect to the initiation of this CVD investigation that the petitioners are requesting.7 Period of Investigation Because the petition was filed on May 22, 2018, the period of investigation is January 1, 2017, through December 31, 2017.8 Scope of the Investigation The products covered by this investigation are steel propane cylinders from China. For a full description of the scope of the investigation, see the Appendix to this notice. Comments on Scope of the Investigation During our review of the petition, Commerce issued questions to, and received responses from, the petitioners pertaining to the proposed scope to ensure that the scope language in the petition is an accurate reflection of the product for which the domestic industry is seeking relief.9 As a result of these exchanges, the scope of the petition was modified to clarify the description of merchandise covered by the petition. 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), including comments on whether it is appropriate to refer to the subject merchandise as ‘‘steel propane cylinders’’ (emphasis added) or just as ‘‘steel cylinders,’’ given that the petitioners intend to cover all products that meet the physical description of the scope regardless of whether they ultimately contain or transport compressed or liquefied propane gas.10 7 See ‘‘Determination of Industry Support for the Petition’’ section, infra. 8 See 19 CFR 351.204(b)(2). 9 See Petition Supplemental Questions; see also General Issues Supplement at 11–12. 10 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble); see also General Issues Supplement, at 4 and 8–9. On June 11, 2018, the petitioners filed proposed revisions to the scope language for Commerce’s consideration. See letter E:\FR\FM\18JNN1.SGM Continued 18JNN1

Agencies

[Federal Register Volume 83, Number 117 (Monday, June 18, 2018)]
[Notices]
[Pages 28186-28189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12990]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-469-818]


Ripe Olives From Spain: Final Affirmative Countervailing Duty 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of ripe olives from Spain. The period of investigation (POI) is January 
1, 2016, through December 31, 2016.

DATES: Applicable June 18, 2018.

FOR FURTHER INFORMATION CONTACT: Mary Kolberg or Lana Nigro, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1785, or (202) 482-1779, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On November 28, 2017, Commerce published the Preliminary 
Determination of this countervailing duty investigation, as provided by 
section 705 of the Tariff Act of 1930, as amended (the Act), in which 
Commerce found that countervailable subsidies are being provided to 
producers and exporters of ripe olives from Spain.\1\ A summary of the 
events that have occurred since Commerce 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 Issues and 
Decision Memorandum which is hereby adopted by this notice.\2\
---------------------------------------------------------------------------

    \1\ See Ripe Olives from Spain: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 82 FR 56218 
(November 28, 2017) and accompanying Preliminary Decision Memorandum 
(Preliminary Decision Memorandum) (collectively, Preliminary 
Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Countervailing Duty Determination for Ripe Olives 
from Spain,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is ripe olives from 
Spain. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope). No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice during the scope comment period.\4\ For the 
Preliminary Determination, Commerce did not modify the scope language 
as it appeared in the Initiation Notice. However, the issue of cocktail 
mixes arose in the context of the companion antidumping duty (AD) 
investigation on ripe olives from Spain. In the April 3, 2018, post-
preliminary we issued with respect to the scope of the investigation, 
we found that: (i) Ripe olives contained in cocktail mixes are in the 
scope, but that the remaining ingredients are not in the scope, and 
(ii) we clarified the scope by adding language concerning ripe olives 
contained in cocktail mixes.\5\ As a result of our analysis of comments 
received in response to this post-preliminary analysis, we have 
modified the scope of this investigation for this final determination. 
For a summary of the product coverage comments and rebuttal responses 
submitted to the record for this final determination, and accompanying 
discussion and analysis

[[Page 28187]]

of all comments timely received, see the Issues and Decision 
Memorandum.\6\
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Ripe Olives from Spain: Initiation of Countervailing 
Duty Investigation, 82 FR 33050 (July 19, 2017) (Initiation Notice).
    \5\ See Memorandum, ``Ripe Olives from Spain: Post-Preliminary 
Scope Clarification Decision Memorandum,'' dated April 3, 2018.
    \6\ See Issues and Decision Memorandum at Comment 30.
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Methodology

    Commerce is conducting this CVD investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found to be 
countervailable, we determine that there is a subsidy (i.e., a 
financial contribution by an ``authority'' that gives rise to a benefit 
to the recipient) and that the subsidy is specific. For a full 
description of the methodology underlying our final determination, see 
the Issues and Decisions Memorandum.

Verification

    As provided in section 782(i) of the Act, in February and March 
2018, we conducted verification of the information submitted by the 
European Commission, the Government of Spain, and the mandatory 
respondents Aceitunas Guadalquivir S.L. (AG), Agro Sevilla Aceitunas 
S.COOP.And. (Agro Sevilla) and Angel Camacho Alimentacion S.L. 
(Camacho) for use in Commerce's final determination. We used standard 
verification procedures, including an examination of relevant 
accounting records and original source documents provided by the 
respondents.

Analysis of Comments Received

    The subsidies programs under investigation and all issues raised in 
the case and rebuttal briefs that were submitted by parties in this 
investigation are addressed in the Issues and Decision Memorandum. A 
list of these issues is attached to this notice as Appendix II. The 
Issues and 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 http://access.trade.gov, and 
to all parties in the Central Records Unit, room B8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.

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, 
Commerce will apply facts available, pursuant to section 776(a)(1) and 
(2) of the Act. For purposes of this final determination, Commerce 
relied, in part, on facts available and, because certain respondents 
did not cooperate by not acting to the best of their ability to respond 
to the Commerce's requests for information, we drew an adverse 
inference, where appropriate, in selecting from among the facts 
otherwise available.\7\ A full discussion of our decision to rely on 
adverse facts available is presented in the ``Application of Facts 
Otherwise Available and Use of Adverse Inferences'' section of the 
Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \7\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on Commerce's analysis of the comments received and its 
findings at verification, Commerce made certain changes to the subsidy 
rate calculations for AG, Agro Sevilla and Camacho.\8\ In addition, 
Commerce revised the subsidy rate calculations for the respondents to 
reflect the reliance on partial facts available with an adverse 
inference pursuant to section 776(b) of the Act. Because of these 
changes to the estimated subsidy rate for each mandatory respondent we 
have also revised the subsidy rate applicable to all other prroducers 
and exporters (the all-others rate).
---------------------------------------------------------------------------

    \8\ See the ``Discussion of the Issues'' section of the Issues 
and Decision Memorandum and the company-specific analysis memoranda 
dated concurrently with, and hereby incorporated by, this notice.
---------------------------------------------------------------------------

All-Others Rate

    Section 705(c)(5)(A) of the Act provides that in the final 
determination, Commerce shall determine an estimated subsidy rate for 
all exporters or producers not individually examined. This rate shall 
be an amount equal to the weighted average of the estimated subsidy 
rates established for those exporters and producers individually 
examined, excluding any zero and de minimis countervailable subsidy 
rates, and any rates based entirely under section 776 of the Act. In 
this investigation, we calculated individually estimated 
countervailable subsidy rates for AG, Agro Sevilla and Camacho, that 
are not zero, de minimis, or based entirely on facts otherwise 
available. Because there are three estimated subsidy rates available 
and doing so would not reveal business proprietary information, we 
calculated the all-others rate using a weighted-average of the 
individually estimated subsidy rates calculated for the examined 
respondents using each respondent's business proprietary data for the 
merchandise under consideration.\9\
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    \9\ For a complete analysis of the data, see Memorandum, 
``Countervailing Duty Investigation of Ripe Olives form Spain: 
Calculation of the All-Others Calculation Rate for the Final 
Determination,'' dated concurrently with this notice.
---------------------------------------------------------------------------

Final Determination

    We determine that the following estimated countervailable subsidy 
rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                      Exporter/producer                          rate
                                                               (percent)
------------------------------------------------------------------------
Aceitunas Guadalquivir S.L.\10\.............................       27.02
Agro Sevilla Aceitunas S.COOP.And.\11\......................        7.52
Angel Camacho Alimentacion S.L..............................       13.22
All-Others..................................................       14.75
------------------------------------------------------------------------

Disclosure
---------------------------------------------------------------------------

    \10\ In the companion AD investigation, this company's name is 
spelled as Aceitunas Guadalquivir S.L.
---------------------------------------------------------------------------

    We intend to disclose to interested parties the calculations and 
analysis performed in this final determination within five days of any 
public announcement or, if there is no public announcement, within five 
days of the date of publication of this notice in accordance with 19 
CFR 351.224(b).
---------------------------------------------------------------------------

    \11\ In the companion AD investigation, this company's name is 
spelled as Agro Sevilla Aceitunas S.Coop Andalusia.
---------------------------------------------------------------------------

Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
merchandise under consideration from Spain that were entered or 
withdrawn from warehouse, for consumption, on or after November 28, 
2017, the date of publication of the Preliminary Determination in the 
Federal Register. In accordance with section 703(d) of the Act, 
effective March 28, 2018, we instructed CBP to discontinue the 
suspension of liquidation of all entries at that time, but to continue 
the suspension of liquidation of all entries between November 28, 2017, 
and March 27, 2018.
    If the U.S. International Trade Commission (ITC) makes a final 
affirmative injury determination we will issue a CVD order, reinstate 
the

[[Page 28188]]

suspension of liquidation under section 706(a) of the Act, and require 
a cash deposit of estimated CVDs for such entries of subject 
merchandise in the amounts indicated above. If the ITC determines that 
material injury or threat of material injury does not exist, the 
proceeding will be terminated and all estimated duties deposited as a 
result of the suspension of liquidation will be refunded or cancelled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final determination. Because the final determination in 
this proceeding is affirmative, in accordance with section 705(b)(2)(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 ripe olives 
from Spain no later than 45 days after Commerce's final determination.

Notification to Interested Parties

    This notice serves as a reminder to parties subject to an 
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 notification of the 
return or 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 and this notice are issued and published 
pursuant to sections 705(d) and 777(i)(1) of the Act.

    Dated: June 11, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The products covered by this investigation are certain processed 
olives, usually referred to as ``ripe olives.'' The subject 
merchandise includes all colors of olives; all shapes and sizes of 
olives, whether pitted or not pitted, and whether whole, sliced, 
chopped, minced, wedged, broken, or otherwise reduced in size; all 
types of packaging, whether for consumer (retail) or institutional 
(food service) sale, and whether canned or packaged in glass, metal, 
plastic, multilayered airtight containers (including pouches), or 
otherwise; and all manners of preparation and preservation, whether 
low acid or acidified, stuffed or not stuffed, with or without 
flavoring and/or saline solution, and including in ambient, 
refrigerated, or frozen conditions.
    Included are all ripe olives grown, processed in whole or in 
part, or packaged in Spain. Subject merchandise includes ripe olives 
that have been further processed in Spain or a third country, 
including but not limited to curing, fermenting, rinsing, oxidizing, 
pitting, slicing, chopping, segmenting, wedging, stuffing, 
packaging, or heat treating, or any other processing that would not 
otherwise remove the merchandise from the scope of the investigation 
if performed in Spain.
    Subject merchandise includes ripe olives that otherwise meet the 
definition above that are packaged together with non-subject 
products, where the smallest individual packaging unit (e.g., can, 
pouch, jar, etc.) of any such product--regardless of whether the 
smallest unit of packaging is included in a larger packaging unit 
(e.g., display case, etc.)--contains a majority (i.e., more than 50 
percent) of ripe olives by net drained weight. The scope does not 
include the non-subject components of such product.
    Excluded from the scope are: (1) Specialty olives \12\ 
(including ``Spanish-style,'' ``Sicilian-style,'' and other similar 
olives) that have been processed by fermentation only, or by being 
cured in an alkaline solution for not longer than 12 hours and 
subsequently fermented; and (2) provisionally prepared olives 
unsuitable for immediate consumption (currently classifiable in 
subheading 0711.20 of the Harmonized Tariff Schedule of the United 
States (HTSUS)).
---------------------------------------------------------------------------

    \12\ Some of the major types of specialty olives and their 
curing methods are:
     ``Spanish-style'' green olives: Spanish-style green 
olives have a mildly salty, slightly bitter taste, and are usually 
pitted and stuffed. This style of olive is primarily produced in 
Spain and can be made from various olive varieties. Most are stuffed 
with pimento; other popular stuffings are jalapeno, garlic, and 
cheese. The raw olives that are used to produce Spanish-style green 
olives are picked while they are unripe, after which they are 
submerged in an alkaline solution for typically less than a day to 
partially remove their bitterness, rinsed, and fermented in a strong 
salt brine, giving them their characteristic flavor.
     ``Sicilian-style'' green olives: Sicilian-style olives 
are large, firm green olives with a natural bitter and savory 
flavor. This style of olive is produced in small quantities in the 
United States using a Sevillano variety of olive and harvested green 
with a firm texture. Sicilian-style olives are processed using a 
brine-cured method, and undergo a full fermentation in a salt and 
lactic acid brine for 4 to 9 months. These olives may be sold whole 
unpitted, pitted, or stuffed.
     ``Kalamata'' olives: Kalamata olives are slightly 
curved in shape, tender in texture, and purple in color, and have a 
rich natural tangy and savory flavor. This style of olive is 
produced in Greece using a Kalamata variety olive. The olives are 
harvested after they are fully ripened on the tree, and typically 
use a brine-cured fermentation method over 4 to 9 months in a salt 
brine.
     Other specialty olives in a full range of colors, 
sizes, and origins, typically fermented in a salt brine for 3 months 
or more.
---------------------------------------------------------------------------

    The merchandise subject to this investigation is currently 
classifiable under subheadings 2005.70.0230, 2005.70.0260, 
2005.70.0430, 2005.70.0460, 2005.70.5030, 2005.70.5060, 
2005.70.6020, 2005.70.6030, 2005.70.6050, 2005.70.6060, 
2005.70.6070, 2005.70.7000, 2005.70.7510, 2005.70.7515, 
2005.70.7520, and 2005.70.7525 HTSUS. Subject merchandise may also 
be imported under subheadings 2005.70.0600, 2005.70.0800, 
2005.70.1200, 2005.70.1600, 2005.70.1800, 2005.70.2300, 
2005.70.2510, 2005.70.2520, 2005.70.2530, 2005.70.2540, 
2005.70.2550, 2005.70.2560, 2005.70.9100, 2005.70.9300, and 
2005.70.9700. Although HTSUS subheadings are provided for 
convenience and US Customs purposes, they do not define the scope of 
the investigation; rather, the written description of the subject 
merchandise is dispositive.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Subsidies Valuation
VI. Loan Interest Rate Benchmarks and Discount Rates
VII. Application of Facts Otherwise Available and Use of Adverse 
Inference
VIII. Analysis of Programs
IX. Discussion of the Issues
    Comment 1: Whether Section 771B of the Act is Applicable in This 
Investigation
    Comment 2: Whether a Pass-Through Analysis is Required
    Comment 3: Whether the EU CAP Pillar I -BPS, SPS, and Greening 
Programs are Countervailable
    Comment 4: Whether EU CAP Pillar II Agricultural Fund for Rural 
Development is Specific
    Comment 5: Whether Commerce Should AFA to the Non-Cooperating 
Growers
    Comment 6: Whether Commerce used the Correct Calculation 
Methodology to Measure Subsides Received by the Respondents
    Comment 7: Whether Commerce Should Remove Non-Growers and Adjust 
the Calculation of Benefits to Exclude the Olive Volume of Non-
Producing Suppliers
    Comment 8: Whether Commerce Should Apply AFA to Agro Sevilla 
Regarding Cross-Ownership with its First-Tier Suppliers
    Comment 9: Whether Grant Funding Sourced From the ERDF is 
Regionally Specific
    Comment 10: Whether the EU Sustainable Energy Development of 
Andalusia Scheme Program is Specific
    Comment 11: Whether the PROSOL Program is Specific
    Comment 12: Whether the EU Regional Development Fund and IDEA 
Program is Specific
    Comment 13: Whether the EU Environment and Climate Action (LIFE) 
Program is Specific
    Comment 14: Whether the SAIS Program is Specific
    Comment 15: Whether Financing Sourced from the Spanish Official 
Credit Institute (ICO) is Countervailable
    Comment 16: Whether Commerce Should Adjust the Interest Rate 
Used in Certain

[[Page 28189]]

Long-Term ICO Financing to Angel Camacho
    Comment 17: Whether Commerce Should Adjust the Calculation of 
European Investment Bank (EIB) Financing Received by Agro Sevilla
    Comment 18: Whether To Apply AFA to the CDTI Program
    Comment 19: Whether the CDTI Program is Export Specific
    Comment 20: Whether Commerce Should Apply AFA to Angel Camacho's 
Unreported Grant Presented at Verification
    Comment 21: Whether Commerce Should Rely on ``Unverified'' 
Information
    Comment 22: Whether Commerce Should Adjust the Volume of Raw 
Olives Purchased to Account for Waste Loss
    Comment 23: Whether Commerce Should Accept Rejected Submission 
from the GOS and the Respondents
    Comment 24: Comments on the Verification Reports
    Comment 26: Whether Commerce's Conduct in This Investigation 
Meets the Requirements of the ASCM
    Comment 26: Whether Other Discovered Subsidies Should be 
Included in this Investigation and Whether Other Assistance Can Form 
the Basis for Applying AFA
    Comment 27: Whether Commerce Should Include the Corrections of 
the Alleged Ministerial Errors
    Comment 28: Commerce Must Use Corrected and Revised Data in the 
Calculations
    Comment 29: Whether To Clarify the Scope of the Investigation to 
Include Ripe Olives Contained in Cocktail Mixes
    Comment 30: The Product to Which the Countervailing Duty Applies
X. Recommendation

[FR Doc. 2018-12990 Filed 6-15-18; 8:45 am]
 BILLING CODE 3510-DS-P