Certain Quartz Surface Products From the People's Republic of China: Preliminary Affirmative Determination of Critical Circumstances, in Part, in the Countervailing Duty Investigation, 57419-57421 [2018-24941]
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Federal Register / Vol. 83, No. 221 / Thursday, November 15, 2018 / Notices
Suspension Agreements
None
Duty Absorption Reviews
During any administrative review
covering all or part of a period falling
between the first and second or third
and fourth anniversary of the
publication of an antidumping duty
order under 19 CFR 351.211 or a
determination under 19 CFR
351.218(f)(4) to continue an order or
suspended investigation (after sunset
review), the Secretary, if requested by a
domestic interested party within 30
days of the date of publication of the
notice of initiation of the review, will
determine whether antidumping duties
have been absorbed by an exporter or
producer subject to the review if the
subject merchandise is sold in the
United States through an importer that
is affiliated with such exporter or
producer. The request must include the
name(s) of the exporter or producer for
which the inquiry is requested.
Gap Period Liquidation
For the first administrative review of
any order, there will be no assessment
of antidumping or countervailing duties
on entries of subject merchandise
entered, or withdrawn from warehouse,
for consumption during the relevant
provisional-measures ‘‘gap’’ period, of
the order, if such a gap period is
applicable to the POR.
khammond on DSK30JT082PROD with NOTICES
Administrative Protective Orders and
Letters of Appearance
Interested parties must submit
applications for disclosure under
administrative protective orders in
accordance with the procedures
outlined in Commerce’s regulations at
19 CFR 351.305. Those procedures
apply to administrative reviews
included in this notice of initiation.
Parties wishing to participate in any of
these administrative reviews should
ensure that they meet the requirements
of these procedures (e.g., the filing of
separate letters of appearance as
discussed at 19 CFR 351.103(d)).
Factual Information Requirements
Commerce’s regulations identify five
categories of factual information in 19
CFR 351.102(b)(21), which are
summarized as follows: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
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described in (i)–(iv). These regulations
require any party, when submitting
factual information, to specify under
which subsection of 19 CFR
351.102(b)(21) the information is being
submitted and, if the information is
submitted to rebut, clarify, or correct
factual information already on the
record, to provide an explanation
identifying the information already on
the record that the factual information
seeks to rebut, clarify, or correct. The
regulations, at 19 CFR 351.301, also
provide specific time limits for such
factual submissions based on the type of
factual information being submitted.
Please review the final rule, available at
https://enforcement.trade.gov/frn/2013/
1304frn/2013-08227.txt, prior to
submitting factual information in this
segment.
Any party submitting factual
information in an antidumping duty or
countervailing duty proceeding must
certify to the accuracy and completeness
of that information.10 Parties are hereby
reminded that revised certification
requirements are in effect for company/
government officials as well as their
representatives. All segments of any
antidumping duty or countervailing
duty proceedings initiated on or after
August 16, 2013, should use the formats
for the revised certifications provided at
the end of the Final Rule.11 Commerce
intends to reject factual submissions in
any proceeding segments if the
submitting party does not comply with
applicable revised certification
requirements.
Extension of Time Limits Regulation
Parties may request an extension of
time limits before a time limit
established under part 351 expires, or as
otherwise specified by the Secretary.
See 19 CFR 351.302. In general, an
extension request will be considered
untimely if it is filed after the time limit
established under part 351 expires. For
submissions which are due from
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. on
the due date. Examples include, but are
not limited to: (1) Case and rebuttal
briefs, filed pursuant to 19 CFR 351.309;
(2) factual information to value factors
under 19 CFR 351.408(c), or to measure
the adequacy of remuneration under 19
CFR 351.511(a)(2), filed pursuant to 19
10 See
section 782(b) of the Act.
Certification of Factual Information To
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also the frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/
factual_info_final_rule_FAQ_07172013.pdf.
11 See
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57419
CFR 351.301(c)(3) and rebuttal,
clarification and correction filed
pursuant to 19 CFR 351.301(c)(3)(iv); (3)
comments concerning the selection of a
surrogate country and surrogate values
and rebuttal; (4) comments concerning
U.S. Customs and Border Protection
data; and (5) quantity and value
questionnaires. Under certain
circumstances, Commerce may elect to
specify a different time limit by which
extension requests will be considered
untimely for submissions which are due
from multiple parties simultaneously. In
such a case, Commerce will inform
parties in the letter or memorandum
setting forth the deadline (including a
specified time) by which extension
requests must be filed to be considered
timely. This modification also requires
that an extension request must be made
in a separate, stand-alone submission,
and clarifies the circumstances under
which Commerce will grant untimelyfiled requests for the extension of time
limits. These modifications are effective
for all segments initiated on or after
October 21, 2013. Please review the
final rule, available at https://
www.gpo.gov/fdsys/pkg/FR-2013-09-20/
html/2013-22853.htm, prior to
submitting factual information in these
segments.
These initiations and this notice are
in accordance with section 751(a) of the
Act (19 U.S.C. 1675(a)) and 19 CFR
351.221(c)(1)(i).
Dated: November 8, 2018.
James Maeder,
Associate Deputy Assistant Secretary for
Antidumping and Countervailing Duty
Operations performing the duties of Deputy
Assistant Secretary for Antidumping and
Countervailing Duty Operations.
[FR Doc. 2018–24943 Filed 11–14–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–085]
Certain Quartz Surface Products From
the People’s Republic of China:
Preliminary Affirmative Determination
of Critical Circumstances, in Part, in
the Countervailing Duty Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) preliminarily determines
that critical circumstances exist with
respect to imports of certain quartz
surface products (quartz surface
products) from certain producers and
AGENCY:
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Federal Register / Vol. 83, No. 221 / Thursday, November 15, 2018 / Notices
exporters from the People’s Republic of
China (China).
DATES: Applicable November 15, 2018.
FOR FURTHER INFORMATION CONTACT:
Darla Brown, 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.
SUPPLEMENTARY INFORMATION:
date of the final determination,6
Commerce will make a preliminary
finding whether there is a reasonable
basis to believe or suspect that critical
circumstances exist. Commerce will
issue its preliminary finding of critical
circumstances within 30 days after the
petitioner submits the allegation.7
Background
Critical Circumstances Allegation
The petitioner alleged a massive
increase of imports of certain quartz
surface products from China and
provided monthly import data for the
period January 2017 through August
2018.8 The petitioner states that a
comparison of total imports, by
quantity, for the period February 2018
through April 2018, to the period May
2018 through July 2018, shows that
imports of quartz surface products from
China increased by 81 percent,9 which
is considered ‘‘massive’’ under 19 CFR
351.206(h)(2). The petitioner also
alleges that there is a reasonable basis to
believe that there are subsidies in this
investigation which are inconsistent
with the Subsidies and Countervailing
Measures Agreement (SCM
Agreement).10
khammond on DSK30JT082PROD with NOTICES
On April 17, 2018, Commerce
received a countervailing duty (CVD)
petition concerning imports of quartz
surface products from China filed in
proper form on behalf of the petitioner,
Cambria Company LLC.1 On May 16,
2018, we initiated this investigation,2
and on September 21, 2018, we
published an affirmative Preliminary
Determination.3
Commerce selected Fasa Industrial
Corporation, Limited (Fasa Industrial),
Foshan Yixin Stone Co., Ltd. (Foshan
Yixin), and Foshan Hero Stone Co., Ltd.
(Hero Stone) as the individuallyexamined respondents in this
investigation. With respect to Hero
Stone and Fasa Industrial, in the
Preliminary Determination we based the
subsidy rates for these respondents on
adverse facts available (AFA), in
accordance with section 776(a) and (b)
of the Tariff Act of 1930, as amended
(the Act).4
On October 9, 2018, the petitioner
alleged that critical circumstances exist
with respect to imports of quartz surface
products from China, pursuant to
section 703(e)(1) of the Act and 19 CFR
351.206.5
In accordance with 19 CFR
351.206(c)(1), if the petitioner submits
an allegation of critical circumstances
30 days or more before the scheduled
1 See ‘‘Petitions for the Imposition of
Antidumping and Countervailing Duties: Certain
Quartz Surface Products from the People’s Republic
of China,’’ dated April 17, 2018 (Petition).
2 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), and
accompanying Initiation Checklist.
3 See Certain Quartz Surface Products from the
People’s Republic of China: Preliminary Affirmative
Countervailing Duty Determination, and Alignment
of Final Determination with Final Antidumping
Determination, 83 FR 47881 (September 21, 2018)
(Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
4 See Preliminary Determination PDM at Use of
Facts Otherwise Available and Adverse Inferences.
5 See Letter from the petitioner, ‘‘Certain Quartz
Surface Products from the People’s Republic of
China: Amendment to Petition for the Imposition of
Antidumping and Countervailing Duties to Allege
Existence of Critical Circumstances,’’ dated October
9, 2018 (Critical Circumstances Allegation).
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16:53 Nov 14, 2018
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Period of Investigation (POI)
The POI is January 1, 2017, through
December 31, 2017.
Critical Circumstances Analysis
Section 703(e)(1) of the Act provides
that Commerce will preliminarily
determine that critical circumstances
exist if there is a reasonable basis to
believe or suspect that: (A) The alleged
countervailable subsidy is inconsistent
with the SCM Agreement; 11 and (B)
there have been massive imports of the
subject merchandise over a relatively
short period.
In determining whether there are
‘‘massive imports’’ over a ‘‘relatively
short period,’’ pursuant to section
703(e)(1)(B) of the Act and 19 CFR
351.206(h) and (i), Commerce normally
compares the import volumes of the
subject merchandise for at least three
6 The final determination for this CVD
investigation is currently due no later than January
28, 2019.
7 See 19 CFR 351.206(c)(2)(ii).
8 See Amended Critical Circumstances Allegation
at Exhibit 1.
9 See Critical Circumstances Allegation at 2.
10 Id. at 5–6.
11 Commerce limits its critical circumstances
findings to those subsidies contingent upon export
performance or use of domestic over imported
goods (i.e., those prohibited under Article 3 of the
SCM Agreement). See e.g., Final Affirmative
Countervailing Duty Determination and Final
Negative Critical Circumstances Determination:
Carbon and Certain Alloy Steel Wire from Germany,
67 FR 55808, 55809–10 (August 30, 2002) (Steel
Wire from Germany).
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Sfmt 4703
months immediately preceding the
filing of the petition (i.e., the base
period) to a comparable period of at
least three months following the filing
of the petition (i.e., the comparison
period). However, the regulations also
provide that if Commerce finds that
importers, or exporters or producers,
had reason to believe, at some time prior
to the beginning of the proceeding, that
a proceeding was likely, Commerce may
consider a period of not less than three
months from the earlier time.12 Imports
must increase by at least 15 percent
during the comparison period to be
considered massive.13
Foshan Yixin
In the Preliminary Determination, we
found that Foshan Yixin did not receive
any countervailable subsidies during the
POI that are inconsistent with the SCM
Agreement.14 Accordingly, because the
requirement under section 703(e)(1)(A)
of the Act has not been met, we
preliminarily determine that critical
circumstances do not exist with respect
to Foshan Yixin.
Fasa Industrial and Hero Stone
As explained in our Preliminary
Determination, we applied total adverse
facts available (AFA) to Fasa Industrial
and Hero Stone, pursuant to section
776(b) of the Act. In applying total AFA
to these two companies, we
preliminarily determined that both Fasa
Industrial and Hero Stone benefited
from countervailable subsidies under
the ‘‘Export Assistance Grants’’
program.15 Although we did not make a
preliminary finding as to whether the
‘‘Export Assistance Grants’’ program
was inconsistent with the SCM
Agreement in the Preliminary
Determination, we now preliminarily
find, pursuant to section 776(b) of the
Act, that there is a reasonable basis to
believe or suspect that the program, as
alleged in the Petition and supported by
information reasonably available to the
petitioner, is export contingent within
the meaning of section 771(5A)(B) of the
Act and, thus, inconsistent with the
SCM Agreement.16 We preliminarily
found this program to have a programspecific rate of 0.58 percent.17 We are
making the inconsistency determination
12 See
19 CFR 351.206(i).
19 CFR 351.206(h)(2).
14 See Preliminary Determination PDM at
Analysis of Programs.
15 Id. at 11.
16 See Countervailing Duty Investigation
Initiation Checklist: Certain Quartz Surface
Products from the People’s Republic of China, dated
May 7, 2018.
17 See Preliminary Determination PDM at
Appendix.
13 See
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Federal Register / Vol. 83, No. 221 / Thursday, November 15, 2018 / Notices
with regard to this program, which had
the lowest rate in the Preliminary
Determination among the programs
alleged to be inconsistent with the SCM
Agreement. In so doing, we intend to
limit the corresponding offset to the
dumping margin (if one is found) in the
companion antidumping duty
investigation, which best fulfills our
statutory mandate ‘‘to ensure that the
party does not obtain a more favorable
result by failing to cooperate than if it
had cooperated fully,’’ 18 and induce
future cooperation by companies in
investigations where the petitioners
allege the existence of programs
potentially inconsistent with the SCM
Agreement.
Because we preliminarily find that the
‘‘Export Assistance Grants’’ program is
export contingent, we preliminarily find
that the criterion under section
703(e)(1)(A) of the Act has been met. In
addition, for the purposes of the
‘‘massive imports’’ analysis, we
preliminarily determine, pursuant to
section 776(b) of the Act, that Fasa
Industrial and Hero Stone shipped
quartz surface products in ‘‘massive’’
quantities during the comparison
period, thereby fulfilling the criteria
under section 703(e)(1)(B) of the Act.19
As a result, we preliminarily determine
that critical circumstances exist with
regard to Fasa Industrial and Hero
Stone.
All Other Companies
We based the all-others rate applied
in the Preliminary Determination on the
rate preliminarily calculated for Foshan
Yixin. As noted above, we preliminarily
found that Foshan Yixin did not use any
countervailable subsidies inconsistent
with the SCM Agreement. As a result,
we also preliminarily determine that all
other exporters of subject merchandise
from China not selected as mandatory
respondents did not use countervailable
subsidies inconsistent with the SCM
Agreement, and thus preliminarily find
that critical circumstances do not exist
with respect to the companies covered
by the all-others rate.
khammond on DSK30JT082PROD with NOTICES
Final Determination
We will make a final determination
concerning critical circumstances in the
final determination of this investigation,
which is currently scheduled for
January 28, 2019.
Public Comment
DEPARTMENT OF COMMERCE
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.20
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.21
Electronically filed documents must
be received successfully in their entirety
by 5:00 p.m. Eastern Time on the due
dates established above.22
International Trade Administration
Suspension of Liquidation
In accordance with section
703(e)(2)(A) of the Act, for Fasa
Industrial and Hero Stone, we will
direct U.S. Customs and Border
Protection (CBP) to suspend liquidation
of any unliquidated entries of subject
merchandise from the China entered, or
withdrawn from warehouse for
consumption, on or after June 23, 2018,
which is 90 days prior to the date of
publication of the Preliminary
Determination in the Federal Register.
For such entries, CBP shall require a
cash deposit equal to the estimated
preliminary subsidy rates established
for Fasa Industrial and Hero Stone in
the Preliminary Determination. This
suspension of liquidation will remain in
effect until further notice.
ITC Notification
In accordance with section 703(f) of
the Act, we will notify the ITC of this
preliminary determination of critical
circumstances.
This determination is issued and
published pursuant to sections 703(f)
and 777(i)(1) of the Act.
Dated: November 8, 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.
[FR Doc. 2018–24941 Filed 11–14–18; 8:45 am]
18 Statement
of Administrative Action
accompanying the Uruguay Round Agreements Act,
H.R. Doc. 103–316, Vol. 1 (1994) at 870, reprinted
in 1994 U.S.C.C.A.N. 4040, 4199.
19 See Critical Circumstances Allegation at
Exhibit 1.
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16:53 Nov 14, 2018
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57421
BILLING CODE 3510–DS–P
20 See
19 CFR 351.309(d)(1).
19 CFR 351.309(c)(2) and (d)(2).
22 See 19 CFR 351.303(b)(1).
21 See
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[A–570–073]
Antidumping Duty Investigation of
Common Alloy Aluminum Sheet From
the People’s Republic of China:
Affirmative Final Determination of
Sales at Less-Than-Fair Value
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that common
alloy aluminum sheet (common alloy
sheet) from the People’s Republic of
China (China) is being, or is likely to be,
sold in the United States at less-thanfair value (LTFV) for the period of
investigation (POI) April 1, 2017,
through September 30, 2017.
DATES: Applicable November 15, 2018.
FOR FURTHER INFORMATION CONTACT:
Scott Hoefke or Julie Geiger, AD/CVD
Operations, Office VI, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone
(202) 482–4947 and (202) 482–2057,
respectively.
AGENCY:
SUPPLEMENTARY INFORMATION:
Background
On June 6, 2018, Commerce published
in the Federal Register the Preliminary
Determination and invited interested
parties to comment.1 On August 8, 2018,
Commerce published in the Federal
Register the Amended Preliminary
Determination.2 A summary of the
events that 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 that is dated concurrently
with this determination and hereby
adopted by this notice.3
1 See Antidumping Duty Investigation of Common
Alloy Aluminum Sheet from the People’s Republic
of China: Affirmative Preliminary Determination of
Sales at Less-Than-Fair Value, Preliminary
Affirmative Determination of Critical Circumstance,
and Postponement of Final Determination, 83 FR
29088 (June 22, 2018) (Preliminary Determination)
and accompanying Preliminary Decision
Memorandum.
2 See Common Alloy Aluminum Sheet from the
People’s Republic of China: Amended Preliminary
Affirmative Determination of Sales at Less Than
Fair Value, 83 FR 39056 (August 8, 2018) (Amended
Preliminary Determination).
3 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Results of the
Antidumping Duty Investigation of Common Alloy
E:\FR\FM\15NON1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 221 (Thursday, November 15, 2018)]
[Notices]
[Pages 57419-57421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24941]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-085]
Certain Quartz Surface Products From the People's Republic of
China: Preliminary Affirmative Determination of Critical Circumstances,
in Part, in the Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that critical circumstances exist with respect to imports of certain
quartz surface products (quartz surface products) from certain
producers and
[[Page 57420]]
exporters from the People's Republic of China (China).
DATES: Applicable November 15, 2018.
FOR FURTHER INFORMATION CONTACT: Darla Brown, 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.
SUPPLEMENTARY INFORMATION:
Background
On April 17, 2018, Commerce received a countervailing duty (CVD)
petition concerning imports of quartz surface products from China filed
in proper form on behalf of the petitioner, Cambria Company LLC.\1\ On
May 16, 2018, we initiated this investigation,\2\ and on September 21,
2018, we published an affirmative Preliminary Determination.\3\
---------------------------------------------------------------------------
\1\ See ``Petitions for the Imposition of Antidumping and
Countervailing Duties: Certain Quartz Surface Products from the
People's Republic of China,'' dated April 17, 2018 (Petition).
\2\ 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), and accompanying
Initiation Checklist.
\3\ See Certain Quartz Surface Products from the People's
Republic of China: Preliminary Affirmative Countervailing Duty
Determination, and Alignment of Final Determination with Final
Antidumping Determination, 83 FR 47881 (September 21, 2018)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
---------------------------------------------------------------------------
Commerce selected Fasa Industrial Corporation, Limited (Fasa
Industrial), Foshan Yixin Stone Co., Ltd. (Foshan Yixin), and Foshan
Hero Stone Co., Ltd. (Hero Stone) as the individually-examined
respondents in this investigation. With respect to Hero Stone and Fasa
Industrial, in the Preliminary Determination we based the subsidy rates
for these respondents on adverse facts available (AFA), in accordance
with section 776(a) and (b) of the Tariff Act of 1930, as amended (the
Act).\4\
---------------------------------------------------------------------------
\4\ See Preliminary Determination PDM at Use of Facts Otherwise
Available and Adverse Inferences.
---------------------------------------------------------------------------
On October 9, 2018, the petitioner alleged that critical
circumstances exist with respect to imports of quartz surface products
from China, pursuant to section 703(e)(1) of the Act and 19 CFR
351.206.\5\
---------------------------------------------------------------------------
\5\ See Letter from the petitioner, ``Certain Quartz Surface
Products from the People's Republic of China: Amendment to Petition
for the Imposition of Antidumping and Countervailing Duties to
Allege Existence of Critical Circumstances,'' dated October 9, 2018
(Critical Circumstances Allegation).
---------------------------------------------------------------------------
In accordance with 19 CFR 351.206(c)(1), if the petitioner submits
an allegation of critical circumstances 30 days or more before the
scheduled date of the final determination,\6\ Commerce will make a
preliminary finding whether there is a reasonable basis to believe or
suspect that critical circumstances exist. Commerce will issue its
preliminary finding of critical circumstances within 30 days after the
petitioner submits the allegation.\7\
---------------------------------------------------------------------------
\6\ The final determination for this CVD investigation is
currently due no later than January 28, 2019.
\7\ See 19 CFR 351.206(c)(2)(ii).
---------------------------------------------------------------------------
Period of Investigation (POI)
The POI is January 1, 2017, through December 31, 2017.
Critical Circumstances Allegation
The petitioner alleged a massive increase of imports of certain
quartz surface products from China and provided monthly import data for
the period January 2017 through August 2018.\8\ The petitioner states
that a comparison of total imports, by quantity, for the period
February 2018 through April 2018, to the period May 2018 through July
2018, shows that imports of quartz surface products from China
increased by 81 percent,\9\ which is considered ``massive'' under 19
CFR 351.206(h)(2). The petitioner also alleges that there is a
reasonable basis to believe that there are subsidies in this
investigation which are inconsistent with the Subsidies and
Countervailing Measures Agreement (SCM Agreement).\10\
---------------------------------------------------------------------------
\8\ See Amended Critical Circumstances Allegation at Exhibit 1.
\9\ See Critical Circumstances Allegation at 2.
\10\ Id. at 5-6.
---------------------------------------------------------------------------
Critical Circumstances Analysis
Section 703(e)(1) of the Act provides that Commerce will
preliminarily determine that critical circumstances exist if there is a
reasonable basis to believe or suspect that: (A) The alleged
countervailable subsidy is inconsistent with the SCM Agreement; \11\
and (B) there have been massive imports of the subject merchandise over
a relatively short period.
---------------------------------------------------------------------------
\11\ Commerce limits its critical circumstances findings to
those subsidies contingent upon export performance or use of
domestic over imported goods (i.e., those prohibited under Article 3
of the SCM Agreement). See e.g., Final Affirmative Countervailing
Duty Determination and Final Negative Critical Circumstances
Determination: Carbon and Certain Alloy Steel Wire from Germany, 67
FR 55808, 55809-10 (August 30, 2002) (Steel Wire from Germany).
---------------------------------------------------------------------------
In determining whether there are ``massive imports'' over a
``relatively short period,'' pursuant to section 703(e)(1)(B) of the
Act and 19 CFR 351.206(h) and (i), Commerce normally compares the
import volumes of the subject merchandise for at least three months
immediately preceding the filing of the petition (i.e., the base
period) to a comparable period of at least three months following the
filing of the petition (i.e., the comparison period). However, the
regulations also provide that if Commerce finds that importers, or
exporters or producers, had reason to believe, at some time prior to
the beginning of the proceeding, that a proceeding was likely, Commerce
may consider a period of not less than three months from the earlier
time.\12\ Imports must increase by at least 15 percent during the
comparison period to be considered massive.\13\
---------------------------------------------------------------------------
\12\ See 19 CFR 351.206(i).
\13\ See 19 CFR 351.206(h)(2).
---------------------------------------------------------------------------
Foshan Yixin
In the Preliminary Determination, we found that Foshan Yixin did
not receive any countervailable subsidies during the POI that are
inconsistent with the SCM Agreement.\14\ Accordingly, because the
requirement under section 703(e)(1)(A) of the Act has not been met, we
preliminarily determine that critical circumstances do not exist with
respect to Foshan Yixin.
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\14\ See Preliminary Determination PDM at Analysis of Programs.
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Fasa Industrial and Hero Stone
As explained in our Preliminary Determination, we applied total
adverse facts available (AFA) to Fasa Industrial and Hero Stone,
pursuant to section 776(b) of the Act. In applying total AFA to these
two companies, we preliminarily determined that both Fasa Industrial
and Hero Stone benefited from countervailable subsidies under the
``Export Assistance Grants'' program.\15\ Although we did not make a
preliminary finding as to whether the ``Export Assistance Grants''
program was inconsistent with the SCM Agreement in the Preliminary
Determination, we now preliminarily find, pursuant to section 776(b) of
the Act, that there is a reasonable basis to believe or suspect that
the program, as alleged in the Petition and supported by information
reasonably available to the petitioner, is export contingent within the
meaning of section 771(5A)(B) of the Act and, thus, inconsistent with
the SCM Agreement.\16\ We preliminarily found this program to have a
program-specific rate of 0.58 percent.\17\ We are making the
inconsistency determination
[[Page 57421]]
with regard to this program, which had the lowest rate in the
Preliminary Determination among the programs alleged to be inconsistent
with the SCM Agreement. In so doing, we intend to limit the
corresponding offset to the dumping margin (if one is found) in the
companion antidumping duty investigation, which best fulfills our
statutory mandate ``to ensure that the party does not obtain a more
favorable result by failing to cooperate than if it had cooperated
fully,'' \18\ and induce future cooperation by companies in
investigations where the petitioners allege the existence of programs
potentially inconsistent with the SCM Agreement.
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\15\ Id. at 11.
\16\ See Countervailing Duty Investigation Initiation Checklist:
Certain Quartz Surface Products from the People's Republic of China,
dated May 7, 2018.
\17\ See Preliminary Determination PDM at Appendix.
\18\ Statement of Administrative Action accompanying the Uruguay
Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994) at 870,
reprinted in 1994 U.S.C.C.A.N. 4040, 4199.
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Because we preliminarily find that the ``Export Assistance Grants''
program is export contingent, we preliminarily find that the criterion
under section 703(e)(1)(A) of the Act has been met. In addition, for
the purposes of the ``massive imports'' analysis, we preliminarily
determine, pursuant to section 776(b) of the Act, that Fasa Industrial
and Hero Stone shipped quartz surface products in ``massive''
quantities during the comparison period, thereby fulfilling the
criteria under section 703(e)(1)(B) of the Act.\19\ As a result, we
preliminarily determine that critical circumstances exist with regard
to Fasa Industrial and Hero Stone.
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\19\ See Critical Circumstances Allegation at Exhibit 1.
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All Other Companies
We based the all-others rate applied in the Preliminary
Determination on the rate preliminarily calculated for Foshan Yixin. As
noted above, we preliminarily found that Foshan Yixin did not use any
countervailable subsidies inconsistent with the SCM Agreement. As a
result, we also preliminarily determine that all other exporters of
subject merchandise from China not selected as mandatory respondents
did not use countervailable subsidies inconsistent with the SCM
Agreement, and thus preliminarily find that critical circumstances do
not exist with respect to the companies covered by the all-others rate.
Final Determination
We will make a final determination concerning critical
circumstances in the final determination of this investigation, which
is currently scheduled for January 28, 2019.
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.\20\ 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.\21\
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\20\ See 19 CFR 351.309(d)(1).
\21\ See 19 CFR 351.309(c)(2) and (d)(2).
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Electronically filed documents must be received successfully in
their entirety by 5:00 p.m. Eastern Time on the due dates established
above.\22\
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\22\ See 19 CFR 351.303(b)(1).
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Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, for Fasa
Industrial and Hero Stone, we will direct U.S. Customs and Border
Protection (CBP) to suspend liquidation of any unliquidated entries of
subject merchandise from the China entered, or withdrawn from warehouse
for consumption, on or after June 23, 2018, which is 90 days prior to
the date of publication of the Preliminary Determination in the Federal
Register. For such entries, CBP shall require a cash deposit equal to
the estimated preliminary subsidy rates established for Fasa Industrial
and Hero Stone in the Preliminary Determination. This suspension of
liquidation will remain in effect until further notice.
ITC Notification
In accordance with section 703(f) of the Act, we will notify the
ITC of this preliminary determination of critical circumstances.
This determination is issued and published pursuant to sections
703(f) and 777(i)(1) of the Act.
Dated: November 8, 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.
[FR Doc. 2018-24941 Filed 11-14-18; 8:45 am]
BILLING CODE 3510-DS-P
