Certain Quartz Surface Products From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 47881-47883 [2018-20604]
Download as PDF
Federal Register / Vol. 83, No. 184 / Friday, September 21, 2018 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–085]
Certain Quartz Surface Products From
the People’s Republic of China:
Preliminary Affirmative Countervailing
Duty Determination, and Alignment of
Final Determination With Final
Antidumping Duty Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) preliminarily determines
that countervailable subsidies are being
provided to producers and exporters of
certain quartz surface products (quartz
surface products) from the People’s
Republic of China (China).
DATES: Applicable September 21, 2018.
FOR FURTHER INFORMATION CONTACT:
Darla Brown or Joshua Tucker, AD/CVD
Operations, Office II, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–1791 or (202) 482–2044,
respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
daltland on DSKBBV9HB2PROD with NOTICES
Background
This preliminary determination is
made in accordance with section 703(b)
of the Tariff Act of 1930, as amended
(the Act). Commerce published the
notice of initiation of this investigation
on May 16, 2018.1 On June 29, 2018,
Commerce postponed the preliminary
determination of this investigation, and
the revised deadline is now September
14, 2018.2 For a complete description of
the events that followed the initiation of
this investigation, see the Preliminary
Decision Memorandum.3 A list of topics
discussed in the Preliminary Decision
Memorandum is included as Appendix
II to this notice. The Preliminary
Decision Memorandum is a public
document and is on file electronically
via Enforcement and Compliance’s
Antidumping and Countervailing Duty
1 See Certain Quartz Surface Products from the
People’s Republic of China: Initiation of
Countervailing Duty Investigation, 83 FR 22618
(May 16, 2018) (Initiation Notice).
2 See Certain Quartz Surface Products from the
People’s Republic of China: Postponement of
Preliminary Determination in the Countervailing
Duty Investigation, 83 FR 30699 (June 29, 2018).
3 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Determination of the
Countervailing Duty Investigation of Certain Quartz
Surface Products from the People’s Republic of
China,’’ dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision
Memorandum).
VerDate Sep<11>2014
17:30 Sep 20, 2018
Jkt 244001
47881
Centralized Electronic Service System
(ACCESS). ACCESS is available to
registered users at https://
access.trade.gov, and is available to all
parties in the Central Records Unit,
room B8024 of the main Department of
Commerce building. In addition, a
complete version of the Preliminary
Decision Memorandum can be accessed
directly at https://enforcement.trade.gov/
frn/. The signed and electronic versions
of the Preliminary Decision
Memorandum are identical in content.
because it finds that one or more
respondents did not act to the best of
their ability to respond to Commerce’s
requests for information, it drew an
adverse inference where appropriate in
selecting from among the facts
otherwise available.8 For further
information, see ‘‘Use of Facts
Otherwise Available and Adverse
Inferences’’ in the Preliminary Decision
Memorandum.
Scope of the Investigation
The products covered by this
investigation are quartz surface products
from China. For a complete description
of the scope of this investigation, see
Appendix I.
As noted in the Preliminary Decision
Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the
final countervailing duty (CVD)
determination in this investigation with
the final determination in the
companion antidumping duty (AD)
investigation of quartz surface products
from China based on a request made by
the petitioner.9 Consequently, the final
CVD determination will be issued on
the same date as the final AD
determination, which is currently
scheduled to be issued no later than
December 10, 2018, unless postponed.
Period of Investigation
The period of investigation is January
1, 2017, through December 31, 2017.
Scope Comments
In accordance with the preamble to
Commerce’s regulations,4 the Initiation
Notice set aside a period of time for
parties to raise issues regarding product
coverage, (i.e., scope).5 Certain
interested parties commented on the
scope of the investigation as it appeared
in the Initiation Notice. For a summary
of the product coverage comments and
rebuttal responses submitted to the
record for this preliminary
determination, and accompanying
discussion and analysis of all comments
timely received, see the Preliminary
Scope Decision Memorandum.6
Commerce is not preliminarily
modifying the scope language as it
appeared in the Initiation Notice.
Methodology
Commerce is conducting this
investigation in accordance with section
701 of the Act. For each of the subsidy
programs found countervailable,
Commerce preliminarily determines
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.7
In making these findings, Commerce
relied, in part, on facts available and,
4 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
5 See Initiation Notice.
6 See Memorandum, ‘‘Certain Quartz Surface
Products from the People’s Republic of China:
Scope Comments Decision Memorandum for the
Preliminary Determination,’’ dated concurrently
with this notice (Preliminary Scope Decision
Memorandum).
7 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
PO 00000
Frm 00008
Fmt 4703
Sfmt 4703
Alignment
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of
the Act provide that in the preliminary
determination, Commerce shall
determine an estimated all-others rate
for companies not individually
examined. This rate shall be an amount
equal to the weighted average of the
estimated subsidy rates established for
those companies individually
examined, excluding any zero and de
minimis rates and any rates based
entirely under section 776 of the Act. In
this investigation, Commerce
preliminarily assigned a rate based
entirely on facts available to Fasa
Industrial Corporation Limited and
Foshan Hero Stone Co., Ltd. Therefore,
the only rate that is not zero, de minimis
or based entirely on facts otherwise
available is the rate calculated for
Foshan Yixin Stone Co., Ltd. (Foshan
Yixin). Consequently, the rate
calculated for Foshan Yixin is also
assigned as the rate for all-other
producers and exporters.
Preliminary Determination
Commerce preliminarily determines
that the following estimated
countervailable subsidy rates exist:
8 See
sections 776(a) and (b) of the Act.
Letter from the petitioner, ‘‘Certain Quartz
Surface Products from the People’s Republic of
China: Request to Align Determinations,’’ dated
August 6, 2018. The petitioner in this investigation
is Cambria Company LLC.
9 See
E:\FR\FM\21SEN1.SGM
21SEN1
47882
Federal Register / Vol. 83, No. 184 / Friday, September 21, 2018 / Notices
(2) a brief summary of the argument;
and (3) a table of authorities.
Pursuant to 19 CFR 351.310(c),
Fasa Industrial Corporation
interested parties who wish to request a
Limited ...............................
178.45 hearing, limited to issues raised in the
Foshan Hero Stone Co.,
case and rebuttal briefs, must submit a
Ltd.10 .................................
178.45
written request to the Assistant
Foshan Yixin Stone Co., Ltd
34.38
All-Others ..............................
34.38 Secretary for Enforcement and
Compliance, U.S. Department of
Commerce, within 30 days after the date
Suspension of Liquidation
of publication of this notice. Requests
should contain the party’s name,
In accordance with section
address, and telephone number, the
703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and number of participants, whether any
participant is a foreign national, and a
Border Protection (CBP) to suspend
list of the issues to be discussed. If a
liquidation of entries of subject
request for a hearing is made, Commerce
merchandise as described in the scope
intends to hold the hearing at the U.S.
of the investigation section entered, or
Department of Commerce, 1401
withdrawn from warehouse, for
Constitution Avenue NW, Washington,
consumption on or after the date of
publication of this notice in the Federal DC 20230, at a time and date to be
determined. Parties should confirm by
Register. Further, pursuant to 19 CFR
351.205(d), Commerce will instruct CBP telephone the date, time, and location of
the hearing two days before the
to require a cash deposit equal to the
scheduled date.
rates indicated above.
International Trade Commission
Disclosure
Notification
Commerce intends to disclose its
In accordance with section 703(f) of
calculations and analysis performed to
the Act, Commerce will notify the
interested parties in this preliminary
International Trade Commission (ITC) of
determination within five days of its
its determination. If the final
public announcement, or if there is no
determination is affirmative, the ITC
public announcement, within five days
will determine before the later of 120
of the date of this notice in accordance
days after the date of this preliminary
with 19 CFR 351.224(b).
determination or 45 days after the final
determination.
Verification
Company
Subsidy rate
(percent)
As provided in section 782(i)(1) of the
Act, Commerce intends to verify the
information relied upon in making its
final determination.
Public Comment
daltland on DSKBBV9HB2PROD with NOTICES
Case briefs or other written comments
may be submitted to the Assistant
Secretary for Enforcement and
Compliance no later than seven days
after the date on which the last
verification report is issued in this
investigation. Rebuttal briefs, limited to
issues raised in case briefs, may be
submitted no later than five days after
the deadline date for case briefs.11
Pursuant to 19 CFR 351.309(c)(2) and
(d)(2), parties who submit case briefs or
rebuttal briefs in this investigation are
encouraged to submit with each
argument: (1) A statement of the issue;
10 As discussed in the Preliminary Decision
Memorandum, Commerce has found the following
companies to be cross-owned with Foshan Hero
Stone Co., Ltd.: Mingwei Quartz New
Environmental Protection Materials Co., Ltd.; and
Foshan Quartz Stone Imp & Exp Co., Ltd.
11 See 19 CFR 351.309; see also 19 CFR 351.303
(for general filing requirements).
VerDate Sep<11>2014
18:43 Sep 20, 2018
Jkt 244001
Notification to Interested Parties
This determination is issued and
published pursuant to sections 703(f)
and 777(i) of the Act and 19 CFR
351.205(c).
Dated: September 14, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operation,
performing the non-exclusive functions and
duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by the
investigation is certain quartz surface
products.12 Quartz surface products consist
of slabs and other surfaces created from a
mixture of materials that includes
predominately silica (e.g., quartz, quartz
powder, cristobalite) as well as a resin binder
(e.g., an unsaturated polyester). The
incorporation of other materials, including,
but not limited to, pigments, cement, or other
12 Quartz surface products may also generally be
referred to as engineered stone or quartz, artificial
stone or quartz, agglomerated stone or quartz,
synthetic stone or quartz, processed stone or quartz,
manufactured stone or quartz, and Bretonstone®.
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
additives does not remove the merchandise
from the scope of the investigation. However,
the scope of the investigation only includes
products where the silica content is greater
than any other single material, by actual
weight. Quartz surface products are typically
sold as rectangular slabs with a total surface
area of approximately 45 to 60 square feet
and a nominal thickness of one, two, or three
centimeters. However, the scope of this
investigation includes surface products of all
other sizes, thicknesses, and shapes. In
addition to slabs, the scope of this
investigation includes, but is not limited to,
other surfaces such as countertops,
backsplashes, vanity tops, bar tops, work
tops, tabletops, flooring, wall facing, shower
surrounds, fire place surrounds, mantels, and
tiles. Certain quartz surface products are
covered by the investigation whether
polished or unpolished, cut or uncut,
fabricated or not fabricated, cured or
uncured, edged or not edged, finished or
unfinished, thermoformed or not
thermoformed, packaged or unpackaged, and
regardless of the type of surface finish.
In addition, quartz surface products are
covered by the investigation whether or not
they are imported attached to, or in
conjunction with, non-subject merchandise
such as sinks, sink bowls, vanities, cabinets,
and furniture. If quartz surface products are
imported attached to, or in conjunction with,
such non-subject merchandise, only the
quartz surface product is covered by the
scope.
Subject merchandise includes material
matching the above description that has been
finished, packaged, or otherwise fabricated in
a third country, including by cutting,
polishing, curing, edging, thermoforming,
attaching to, or packaging with another
product, or any other finishing, packaging, or
fabrication that would not otherwise remove
the merchandise from the scope of the
investigation if performed in the country of
manufacture of the quartz surface products.
The scope of the investigation does not
cover quarried stone surface products, such
as granite, marble, soapstone, or quartzite.
Specifically excluded from the scope of the
investigation are crushed glass surface
products. Crushed glass surface products are
surface products in which the crushed glass
content is greater than any other single
material, by actual weight.
The products subject to the scope are
currently classified in the Harmonized Tariff
Schedule of the United States (HTSUS) under
the following subheading: 6810.99.0010.
Subject merchandise may also enter under
subheadings 6810.11.0010, 6810.11.0070,
6810.19.1200, 6810.19.1400, 6810.19.5000,
6810.91.0000, 6810.99.0080, 6815.99.4070,
2506.10.0010, 2506.10.0050, 2506.20.0010,
2506.20.0080. The HTSUS subheadings set
forth above are provided for convenience and
U.S. Customs purposes only. The written
description of the scope is dispositive.
E:\FR\FM\21SEN1.SGM
21SEN1
Federal Register / Vol. 83, No. 184 / Friday, September 21, 2018 / Notices
Appendix II
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Application of the CVD Law to Imports
From the China
V. Diversification of China’s Economy
VI. Use of Facts Otherwise Available and
Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Conclusion
[FR Doc. 2018–20604 Filed 9–20–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–051/C–570–052]
Certain Hardwood Plywood Products
From the People’s Republic of China:
Initiation of Anti-Circumvention Inquiry
on the Antidumping Duty and
Countervailing Duty Orders
Enforcement & Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from
the Coalition for Fair Trade in
Hardwood Plywood (the petitioner), the
Department of Commerce (Commerce) is
initiating an anti-circumvention inquiry
pursuant to section 781(d) of the Tariff
Act of 1930, as amended (the Act), to
determine whether certain plywood
with face and back veneers of radiata
and/or agathis pine that is
circumventing the antidumping duty
(AD) and countervailing duty (CVD)
orders on certain hardwood plywood
products from the People’s Republic of
China (China).
DATES: Applicable September 21, 2018.
FOR FURTHER INFORMATION CONTACT:
Amanda Brings or Ryan Mullen, AD/
CVD Operations, Office V, Enforcement
& Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC, 20230; telephone:
(202) 482–3927 or (202) 482–5260,
respectively.
AGENCY:
daltland on DSKBBV9HB2PROD with NOTICES
SUPPLEMENTARY INFORMATION:
Background
On January 4, 2018, Commerce
published in the Federal Register AD
and CVD Orders on certain hardwood
plywood products from China.1 On June
1 See Certain Hardwood Plywood Products from
the People’s Republic of China: Amended Final
VerDate Sep<11>2014
18:43 Sep 20, 2018
Jkt 244001
26, 2018, the petitioner filed a request
that Commerce conduct an anticircumvention inquiry pursuant to
section 781(d) of the Act with respect to
certain plywood with a face and back
veneer of radiata and/or agathis pine
that: (1) Has a Toxic Substances Control
Act (TSCA) or California Air Resources
Board (CARB) label certifying that it is
compliant with TSCA/CARB
requirements; and (2) is made with a
resin, the majority of which is
comprised of one or more of the
following three product types—urea
formaldehyde, polyvinyl acetate, and/or
soy.2 Specifically, the petitioner alleges
that the inquiry merchandise was not
commercially available prior to the
initiation of the investigations, and that
the inquiry merchandise is being
marketed by Chinese exporters to U.S.
importers as a direct substitute for
merchandise subject to the Orders.3 In
the alternative to an anti-circumvention
inquiry pursuant to section 781(d) of the
Act, the petitioner requests that
Commerce initiate an anticircumvention inquiry pursuant to
section 781(c) of the Act and find that
inquiry merchandise constitutes subject
merchandise that has undergone minor
alterations in order to circumvent the
Orders.4
On July 16, 2018, we received
comments objecting to the allegations
made by the petitioner from U.S.
Determination of Sales at Less Than Fair Value,
and Antidumping Duty Order, 83 FR 504 (January
4, 2018) and Certain Hardwood Plywood Products
from the People’s Republic of China: Countervailing
Duty Order, 82 FR 513 (January 4, 2018)
(collectively, Orders).
2 See the petitioner’s letter, ‘‘Certain Hardwood
Plywood Products from the People’s Republic of
China: Request for Anti-Circumvention Inquiry,’’
dated June 26, 2018 (Petitioner’s Request), at 6–8.
3 Id.
4 Id. at 33.
PO 00000
Frm 00010
Fmt 4703
Sfmt 4703
47883
Importers,5 Chinese Exporters,6 IKEA,7
and Shelter Forest.8 On July 30, 2018,
we received rebuttal comments from the
petitioner 9 and CNFPIA.10 11
Scope of the Orders
The merchandise covered by the
Orders is hardwood and decorative
5 See East Coast Lumber Co., Elberta Crate and
Box Co., Holland Southwest International, Inc.,
Laminate Technologies, Inc., Liberty Woods
International, Inc., Masterbrand Cabinets, Inc.,
McCorry & Company Limited, MJB Wood Group,
Inc., Northwest Hardwoods, Inc., Patriot Timber
Products Inc., Sierra Forest Products, Inc., Taraca
Pacific, Inc. and USPLY LLC (collectively, U.S.
Importers) letter, ‘‘Certain Hardwood Plywood
Products from the People’s Republic of China:
Objection to Second Request for AntiCircumvention Inquiry,’’ dated July 16, 2018.
6 See Far East American, Inc., Fei County
Hongsheng Wood Industry Co., Ltd, Feixian
Dongqin Woodwork Co., Ltd, Feixian Longteng
Wood Co., Ltd., Feixian Tanyi Youcheng Jiafu
Plywood Factory, Grand Focus Intl. Ltd., Jiangsu
Hanbao Building Material Co., Ltd, Lin Yi
Huasheng Yongbin Wood Co., Lin Yi Tian He
Wooden Industry Co., Ltd, Linyi Celtic Wood Co.,
Ltd, Linyi City Lanshan District Fubo Wood
Factory, Linyi City Lanshan District Fuerda Wood
Factory, Linyi City Lanshan District Wanmei Board
Factory, Linyi City Shenrui International Trade Co.,
Ltd., Linyi Dongfang Bayley Wood Co. Ltd., Linyi
Dongfangjuxin Wood Co. Ltd., Linyi Evergreen
Wood Co., Ltd., Linyi Glary Plywood Co. Ltd., Linyi
Hengsheng Wood Industry Co. Ltd., Linyi Jiahe
Wood Industry Co., Ltd., Linyi Linhai Wooden
Industry Co., Ltd., Linyi Qianfeng Wood Factory,
Linyi Sanfortune Wood Co. Ltd Linyi Tuopu Zhixin
Wooden Industry Co., Ltd., Shanghai Futuwood
Trading Company Ltd., Sumec International
Technology Co., Ltd., Suzhou Oriental Dragon
Import And Export Corp. Ltd., Xu Zhou
Changcheng Wood Co., Ltd., Xuzhou Camry Wood
Co., Ltd., Xuzhou Golden River Wood Co., Ltd., and
Xuzhou Jiangyang Wood Industries Co., Ltd.,
Xuzhou Longyuan Wood Industry Co., Ltd.
(collectively, Chinese Exporters) letter, ‘‘Hardwood
Plywood from the People’s Republic of China
Comments In Opposition to Request for AntiCircumvention Inquiry: Certain Softwood Species,’’
dated July 16, 2018.
7 See IKEA Supply AG (IKEA) letter, ‘‘Certain
Hardwood Plywood Products from the People’s
Republic of China: Comments Related to
Petitioner’s Second Anti-Circumvention Inquiry
Request,’’ dated July 16, 2018.
8 See Shelter Forest International Acquisition,
Inc., Xuzhou Shelter Import & Export Co., Ltd., and
Shandong Shelter Forest Products Co., Ltd.
(collectively, Shelter Forest) letter ‘‘Comment on
Certain U.S. Producers’ Request for AntiCircumvention Inquiry Certain Hardwood Plywood
Products from China,’’ dated July 16, 2018.
9 See China National Forest Products Industry
Association and its members Dangshan County Gui
Yang Wood Industry Co., Ltd., Shandong Dongfang
Bayley Wood Co., Ltd., and Pingyi Jinniu Wood Co.,
Ltd., (CNFPIA) letter, ‘‘Hardwood Plywood
Products from the People’s Republic of China:
Rebuttal Comments in Opposition to Petitioner’s
Second Anti-Circumvention Inquiry Request,’’
dated July 30, 2018.
10 See the petitioner letter, ‘‘Certain Hardwood
Plywood Products from the People’s Republic of
China: Rebuttal Comments,’’ dated July 30, 2018.
11 After consideration of the comments filed by
interested parties in opposition to the initiation of
the petitioner’s circumvention allegation,
Commerce will address the arguments and factual
information presented in the comments during the
course of this anti-circumvention inquiry.
E:\FR\FM\21SEN1.SGM
21SEN1
Agencies
[Federal Register Volume 83, Number 184 (Friday, September 21, 2018)]
[Notices]
[Pages 47881-47883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20604]
[[Page 47881]]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-085]
Certain Quartz Surface Products From the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of certain quartz surface products (quartz surface products)
from the People's Republic of China (China).
DATES: Applicable September 21, 2018.
FOR FURTHER INFORMATION CONTACT: Darla Brown or Joshua Tucker, AD/CVD
Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1791 or (202) 482-2044,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on May 16,
2018.\1\ On June 29, 2018, Commerce postponed the preliminary
determination of this investigation, and the revised deadline is now
September 14, 2018.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ A list of topics discussed in the Preliminary
Decision Memorandum is included as Appendix II to this notice. The
Preliminary Decision Memorandum is a public document and is on file
electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at https://access.trade.gov, and
is available to all parties in the Central Records Unit, room B8024 of
the main Department of Commerce building. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at https://enforcement.trade.gov/frn/. The signed and electronic
versions of the Preliminary Decision Memorandum are identical in
content.
---------------------------------------------------------------------------
\1\ See Certain Quartz Surface Products from the People's
Republic of China: Initiation of Countervailing Duty Investigation,
83 FR 22618 (May 16, 2018) (Initiation Notice).
\2\ See Certain Quartz Surface Products from the People's
Republic of China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 83 FR 30699 (June 29, 2018).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Certain
Quartz Surface Products from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are quartz surface
products from China. For a complete description of the scope of this
investigation, see Appendix I.
Period of Investigation
The period of investigation is January 1, 2017, through December
31, 2017.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this preliminary
determination, and accompanying discussion and analysis of all comments
timely received, see the Preliminary Scope Decision Memorandum.\6\
Commerce is not preliminarily modifying the scope language as it
appeared in the Initiation Notice.
---------------------------------------------------------------------------
\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Certain Quartz Surface Products from the
People's Republic of China: Scope Comments Decision Memorandum for
the Preliminary Determination,'' dated concurrently with this notice
(Preliminary Scope Decision Memorandum).
---------------------------------------------------------------------------
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines 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.\7\
---------------------------------------------------------------------------
\7\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------
In making these findings, Commerce relied, in part, on facts
available and, because it finds that one or more respondents did not
act to the best of their ability to respond to Commerce's requests for
information, it drew an adverse inference where appropriate in
selecting from among the facts otherwise available.\8\ For further
information, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in the Preliminary Decision Memorandum.
---------------------------------------------------------------------------
\8\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final countervailing duty (CVD) determination in this
investigation with the final determination in the companion antidumping
duty (AD) investigation of quartz surface products from China based on
a request made by the petitioner.\9\ Consequently, the final CVD
determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
December 10, 2018, unless postponed.
---------------------------------------------------------------------------
\9\ See Letter from the petitioner, ``Certain Quartz Surface
Products from the People's Republic of China: Request to Align
Determinations,'' dated August 6, 2018. The petitioner in this
investigation is Cambria Company LLC.
---------------------------------------------------------------------------
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act. In this investigation, Commerce preliminarily assigned
a rate based entirely on facts available to Fasa Industrial Corporation
Limited and Foshan Hero Stone Co., Ltd. Therefore, the only rate that
is not zero, de minimis or based entirely on facts otherwise available
is the rate calculated for Foshan Yixin Stone Co., Ltd. (Foshan Yixin).
Consequently, the rate calculated for Foshan Yixin is also assigned as
the rate for all-other producers and exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
[[Page 47882]]
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
Fasa Industrial Corporation Limited..................... 178.45
Foshan Hero Stone Co., Ltd.\10\......................... 178.45
Foshan Yixin Stone Co., Ltd............................. 34.38
All-Others.............................................. 34.38
------------------------------------------------------------------------
Suspension of Liquidation
---------------------------------------------------------------------------
\10\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Foshan Hero Stone Co., Ltd.: Mingwei Quartz New Environmental
Protection Materials Co., Ltd.; and Foshan Quartz Stone Imp & Exp
Co., Ltd.
---------------------------------------------------------------------------
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than five days after the deadline
date for case briefs.\11\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this investigation
are encouraged to submit with each argument: (1) A statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities.
---------------------------------------------------------------------------
\11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
---------------------------------------------------------------------------
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. If the
final determination is affirmative, the ITC will determine before the
later of 120 days after the date of this preliminary determination or
45 days after the final determination.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: September 14, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operation, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by the investigation is certain quartz
surface products.\12\ Quartz surface products consist of slabs and
other surfaces created from a mixture of materials that includes
predominately silica (e.g., quartz, quartz powder, cristobalite) as
well as a resin binder (e.g., an unsaturated polyester). The
incorporation of other materials, including, but not limited to,
pigments, cement, or other additives does not remove the merchandise
from the scope of the investigation. However, the scope of the
investigation only includes products where the silica content is
greater than any other single material, by actual weight. Quartz
surface products are typically sold as rectangular slabs with a
total surface area of approximately 45 to 60 square feet and a
nominal thickness of one, two, or three centimeters. However, the
scope of this investigation includes surface products of all other
sizes, thicknesses, and shapes. In addition to slabs, the scope of
this investigation includes, but is not limited to, other surfaces
such as countertops, backsplashes, vanity tops, bar tops, work tops,
tabletops, flooring, wall facing, shower surrounds, fire place
surrounds, mantels, and tiles. Certain quartz surface products are
covered by the investigation whether polished or unpolished, cut or
uncut, fabricated or not fabricated, cured or uncured, edged or not
edged, finished or unfinished, thermoformed or not thermoformed,
packaged or unpackaged, and regardless of the type of surface
finish.
---------------------------------------------------------------------------
\12\ Quartz surface products may also generally be referred to
as engineered stone or quartz, artificial stone or quartz,
agglomerated stone or quartz, synthetic stone or quartz, processed
stone or quartz, manufactured stone or quartz, and
Bretonstone[supreg].
---------------------------------------------------------------------------
In addition, quartz surface products are covered by the
investigation whether or not they are imported attached to, or in
conjunction with, non-subject merchandise such as sinks, sink bowls,
vanities, cabinets, and furniture. If quartz surface products are
imported attached to, or in conjunction with, such non-subject
merchandise, only the quartz surface product is covered by the
scope.
Subject merchandise includes material matching the above
description that has been finished, packaged, or otherwise
fabricated in a third country, including by cutting, polishing,
curing, edging, thermoforming, attaching to, or packaging with
another product, or any other finishing, packaging, or fabrication
that would not otherwise remove the merchandise from the scope of
the investigation if performed in the country of manufacture of the
quartz surface products.
The scope of the investigation does not cover quarried stone
surface products, such as granite, marble, soapstone, or quartzite.
Specifically excluded from the scope of the investigation are
crushed glass surface products. Crushed glass surface products are
surface products in which the crushed glass content is greater than
any other single material, by actual weight.
The products subject to the scope are currently classified in
the Harmonized Tariff Schedule of the United States (HTSUS) under
the following subheading: 6810.99.0010. Subject merchandise may also
enter under subheadings 6810.11.0010, 6810.11.0070, 6810.19.1200,
6810.19.1400, 6810.19.5000, 6810.91.0000, 6810.99.0080,
6815.99.4070, 2506.10.0010, 2506.10.0050, 2506.20.0010,
2506.20.0080. The HTSUS subheadings set forth above are provided for
convenience and U.S. Customs purposes only. The written description
of the scope is dispositive.
[[Page 47883]]
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Application of the CVD Law to Imports From the China
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Conclusion
[FR Doc. 2018-20604 Filed 9-20-18; 8:45 am]
BILLING CODE 3510-DS-P