Polyester Textured Yarn From India and the People's Republic of China: Initiation of Countervailing Duty Investigations, 58232-58236 [2018-24952]

Download as PDF 58232 Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Notices margin.7 The AFA dumping margin for the collapsed entity (i.e., OISI and ODS) remains unchanged from the Preliminary Results.8 khammond on DSK30JT082PROD with NOTICES Final Results of the Review As a result of this review, we determine that, for the period July 1, 2016, through June 30, 2017, the following dumping margins exist: others rate if there is no rate for the intermediate company(ies) involved in the transaction. We intend to issue assessment instructions directly to CBP 15 days after publication of the final results of this review. Cash Deposit Requirements The following cash deposit requirements will be effective upon publication of the notice of final results Weightedof administrative review for all average shipments of subject merchandise Producer and/or exporter dumping entered, or withdrawn from warehouse, margin for consumption on or after the (percent) publication of the final results of this Oman Fasteners LLC ........... 0.00 administrative review, as provided by Overseas International Steel section 751(a)(2) of the Tariff Act of Industry LLC/Overseas 1930, as amended (the Act): (1) The cash Distribution Services Inc ... 154.33 deposit rate for respondents noted above will be the rate established in the final Duty Assessment results of this administrative review; (2) Commerce shall determine and for merchandise exported by Customs and Border Protection (CBP) manufacturers or exporters not covered shall assess antidumping duties on all in this administrative review but appropriate entries.9 For Oman covered in a prior segment of the Fasteners, because its weighted-average proceeding, the cash deposit rate will dumping margin is zero or de minimis continue to be the company specific rate (i.e., less than 0.5 percent), Commerce published for the most recently has not calculated importer-specific completed segment of this proceeding; antidumping duty assessment rates. (3) if the exporter is not a firm covered Pursuant to 19 CFR 351.106(c)(2), we in this review, a prior review, or the will instruct CBP to liquidate without original investigation, but the regard to antidumping duties any manufacturer is, the cash deposit rate entries for which the importer-specific will be the rate established for the most assessment rate is zero or de minimis. recently completed segment of this Because we calculated a zero margin for proceeding for the manufacturer of the Oman Fasteners in the final results of subject merchandise; and (4) the cash this review, we intend to instruct CBP deposit rate for all other manufacturers to liquidate the appropriate entries or exporters will continue to be 9.10 without regard to antidumping duties. percent, the all-others rate established For entries of the subject merchandise in the antidumping investigation. These from OISI and ODS, we will instruct cash deposit requirements, when CBP to assess antidumping duties at the imposed, shall remain in effect until AFA rate of 154.33 percent. further notice. In accordance with Commerce’s Notification to Importers Regarding the ‘‘automatic assessment’’ practice, for Reimbursement of Duties entries of subject merchandise during This notice also serves as a final the POR produced by each respondent reminder to importers of their for which it did not know that its responsibility under 19 CFR 351.402(f) merchandise was destined for the to file a certificate regarding the United States, we will instruct CBP to reimbursement of antidumping and/or liquidate unreviewed entries at the allcountervailing duties prior to 7 See IDM; see also Memorandum, ‘‘Certain Nails liquidation of the relevant entries from Oman: Calculation Memorandum for the Final during the POR. Failure to comply with Results of the 2016–2017 Administrative Review— this requirement could result in Oman Fasteners,’’ dated concurrently with this Commerce’s presumption that notice. 8 Commerce determined that OISI and ODS reimbursement of antidumping and/or should be a collapsed entity in the previous countervailing duties occurred and the administrative review. See Certain Steel Nails from subsequent assessment of doubled the Sultanate of Oman: Final Results of antidumping duties. Antidumping Duty Administrative Review; 2014– 2016, 83 FR 4030 (January 29, 2018). 9 In these final results, Commerce applied the assessment rate calculation method adopted in Antidumping Proceedings: Calculation of the Weighted-Average Dumping Margin and Assessment Rate in Certain Antidumping Proceedings: Final Modification, 77 FR 8101 (February 14, 2012). VerDate Sep<11>2014 17:20 Nov 16, 2018 Jkt 247001 Administrative Protective Order This notice also serves as a reminder to parties subject to administrative protective orders (APO) of their responsibility concerning the return or destruction of proprietary information PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 disclosed under APO in accordance with 19 CFR 351.305(a)(3), which continues to govern business proprietary information in this segment of the proceeding. Timely written notification of the return/destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation. We are issuing and publishing this notice in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(5). Dated: November 9, 2018. Christian Marsh, Deputy Assistant Secretary for Enforcement and Compliance. Appendix List of Topics Discussed in the Final IDM I. Summary II. List of Issues III. Background IV. Scope of the Order V. Discussion of the Issues Comment 1: Whether Astrotech’s financial statement is a better source than Amatei for calculating CV profit and indirect selling expenses Comment 2: Whether Commerce made certain errors in its calculation of CV profit and indirect selling expenses Comment 3: Whether Oman Fasteners is affiliated with a U.S. customer via a close supplier relationship Comment 4: Whether Oman Fastener’s U.S. sales are CEP sales because the terms of sale were agreed to or established by the Atlanta office Comment 5: Whether Commerce should impute interest for a related party loan Comment 6: Whether Commerce should base CV Profit on Omani rates or capped if based on third-country sources Comment 7: Whether Commerce’s differential pricing methodology is unlawful VI. Recommendation [FR Doc. 2018–25145 Filed 11–16–18; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–098, C–533–886] Polyester Textured Yarn From India and the People’s Republic of China: Initiation of Countervailing Duty Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable November 7, 2018. FOR FURTHER INFORMATION CONTACT: Janae Martin at (202) 482–0238 (India) and Robert Palmer at (202) 482–9068 AGENCY: E:\FR\FM\19NON1.SGM 19NON1 Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Notices (People’s Republic of China (China)), AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: khammond on DSK30JT082PROD with NOTICES The Petition On October 18, 2018, the U.S. Department of Commerce (Commerce) received countervailing duty (CVD) petitions concerning imports of polyester textured yarn (yarn) from India and China, filed in proper form on behalf of Unifi Manufacturing, Inc. and Nan Ya Plastics Corp., America (the petitioners), domestic producers of yarn.1 The CVD Petitions were accompanied by antidumping duty (AD) petitions concerning imports of yarn from India and China.2 During the period October 22 through November 1, 2018, we requested information from the petitioners pertaining to the scope of the investigations and certain allegations contained within the Petitions.3 The petitioners filed additional information between October 26, and November 2, 2018.4 1 See Petitioners’ Letter, ‘‘Polyester Textured Yarn from India and the People’s Republic of China,’’ dated October 18, 2018 (the Petitions). 2 See Volumes II and IV of the Petitions. 3 See Commerce’s Letters, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Polyester Textured Yarn from the People’s Republic of China and India: Supplemental Questions’’ (General Issues Supplemental), ‘‘Petition for the Imposition of Countervailing Duties on Imports of Polyester Textured Yarn from the People’s Republic of China: Supplemental Questions,’’ ‘‘Petition for the Imposition of Countervailing Duties on Imports of Polyester Textured Yarn: Supplemental Questions,’’ all dated October 22, 2018, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Polyester Textured Yarn {from India}: Supplemental Questions,’’ dated October 29, 2018, and ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Polyester Textured Yarn from the People’s Republic of China and India: Supplemental Questionnaire Regarding Proposed Scope,’’ dated November 1, 2018. 4 See Petitioners’ Letters, ‘‘Polyester Textured Yarn from India and the People’s Republic of China—Petitioners’ Supplement to Volume I Relating to General Issues,’’ ‘‘Polyester Textured Yarn from India—Petitioners’ Response to Department’s October 22, 2018 Supplemental Questionnaire,’’ and ‘‘Petitioners’ Supplement to Volume III of the Petitions Relating to Countervailing Duty Investigation of Polyester Textured Yarn from the People’s Republic of China,’’ all dated October 26, 2018; Petitioners’ Letter to Commerce, ‘‘Polyester Textured Yarn from India—Petitioners’ Response to the Department’s October 29, 2018 Supplemental Questionnaire,’’ dated October 30, 2018; Petitioners’ Letter to Commerce, ‘‘Polyester Textured Yarn from India and the People’s Republic of China—Petitioners’ Supplement to Volume I Relating to General Issues,’’ dated October 31, 2018 (Second General Issues Supplement); and Petitioners’ Letter to Commerce, ‘‘Polyester Textured Yarn from India VerDate Sep<11>2014 17:20 Nov 16, 2018 Jkt 247001 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioners allege that the Governments of China and India (GOC, and GOI, respectively) are providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of yarn in China and India and that imports of such products are materially injuring, or threatening material injury to, the domestic yarn 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 CVD investigations, the Petitions are accompanied by information reasonably available to the petitioners supporting their allegations. Commerce finds that the petitioners filed the Petitions on behalf of the domestic industry because the petitioners are interested parties as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioners demonstrated sufficient industry support necessary for the initiation of the requested CVD investigations.5 Period of Investigations Because the Petitions were filed on October 18, 2018, the period of investigation is January 1, 2017, through December 31, 2017 for each investigation. Scope of the Investigations The product covered by these investigations is yarn from China and India. For a full description of the scope of these investigations, see the Appendix to this notice. Comments on the Scope of the Investigations During our review of the Petitions, we contacted the petitioners regarding the proposed scope to ensure that the scope language in the Petitions is an accurate reflection of the products for which the domestic industry is seeking relief.6 As a result, the scope of the Petitions was modified to clarify the description of merchandise covered by the Petitions. The description of the merchandise covered by these investigations, as described in the Appendix to this notice, reflects these clarifications. and the People’s Republic of China—Petitioners’ Response to Commerce’s Question Regarding the Scope Language,’’ dated November 2, 2018. 5 See the ‘‘Determination of Industry Support for the Petition’’ section, infra. 6 See General Issues Supplement. See also Memorandum, re: ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Polyester Textured Yarn from the People’s Republic of China and India-Phone Call with Counsel to the Petitioners,’’ dated October 29, 2018. PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 58233 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).7 Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information,8 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit such comments by 5:00 p.m. Eastern Time (ET) on November 27, 2018, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on December 7, 2018, which is 10 calendar days from the initial comments deadline.9 Commerce requests that any factual information parties consider relevant to the scope of the investigation be submitted during this period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party may contact Commerce and request permission to submit the additional information. All such submissions must be filed on the records of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically using Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS).10 An electronically filed document must be received successfully in its entirety by the time and date it is due. Documents exempted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 7 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 8 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 9 See 19 CFR 351.303(b). 10 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011). See also Enforcement and Compliance: Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for details of Commerce’s electronic filing requirements, which went into effect on August 5, 2011. Information on help using ACCESS can be found at https://access.trade.gov/help.aspx, and a handbook can be found at https://access.trade.gov/help/ Handbook%20on%20Electronic%20 Filling%20Procedures.pdf. E:\FR\FM\19NON1.SGM 19NON1 58234 Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Notices 18022, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, and stamped with the date and time of receipt by the applicable deadlines. Consultations Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified representatives of the GOC and GOI of the receipt of the Petitions and provided them the opportunity for consultations with respect to the China CVD Petition and India CVD Petition, respectively.11 Consultations were held with the GOI on November 2, 2018.12 The GOC did not request consultations. khammond on DSK30JT082PROD with NOTICES Determination of Industry Support for the Petitions Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) At least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, Commerce shall: (i) Poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the ‘‘industry.’’ Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers, as a whole, of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs Commerce to look to producers and workers who produce the domestic like product. The International Trade Commission (ITC), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also determine what constitutes a domestic 11 See Commerce’s Letters, ‘‘Countervailing Duty Petition on Polyester Textured Yarn from the People’s Republic of China: Invitation for Consultations to Discuss the Countervailing Duty Petition’’ and ‘‘Countervailing Duty Petition on Polyester Textured Yarn from India: Invitation for Consultations to Discuss the Countervailing Duty Petition,’’ both dated October 18, 2018. 12 See Memorandum, ‘‘Consultations with Officials from the Government of India Regarding the Countervailing Duty Petition Concerning Polyester Textured Yarn,’’ dated November 2, 2018. VerDate Sep<11>2014 17:20 Nov 16, 2018 Jkt 247001 like product in order to define the industry. While both Commerce and the ITC must apply the same statutory definition regarding the domestic like product,13 they do so for different purposes and pursuant to a separate and distinct authority. In addition, Commerce’s determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law.14 Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioners do not offer a definition of the domestic like product distinct from the scope of the investigations.15 Based on our analysis of the information submitted on the record, we have determined that polyester textured yarn, as defined in the scope, constitutes a single domestic like product, and we have analyzed industry support in terms of that domestic like product.16 In determining whether the petitioners have standing under section 702(c)(4)(A) of the Act, we considered the industry support data contained in the Petitions with reference to the domestic like product as defined in the ‘‘Scope of the Investigations,’’ in the Appendix to this notice. To establish industry support, the petitioners 13 See section 771(10) of the Act. USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989)). 15 See Volume I of the Petitions, at 11–12; see also General Issues Supplement, at 4–5 and Exhibit GEN–Supp–2. 16 For a discussion of the domestic like product analysis as applied to these cases and information regarding industry support, see Countervailing Duty Investigation Initiation Checklist: Polyester Textured Yarn from the People’s Republic of China (China CVD Initiation Checklist), at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petition Covering Polyester Textured Yarn from the People’s Republic of China and India (Attachment II); see also Countervailing Duty Investigation Initiation Checklist: Polyester Textured Yarn from India (India CVD Initiation Checklist), at Attachment II. These checklists are dated concurrently with this notice and on file electronically via ACCESS. Access to documents filed via ACCESS is also available in the Central Records Unit, Room B8024 of the main Department of Commerce building. 14 See PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 provided their own production of the domestic like product in 2017, as well as the 2017 production of companies that support the Petitions.17 The petitioners compared the production of the supporters of the Petitions to the estimated total production of the domestic like product for the entire domestic industry.18 We relied on data provided by the petitioners for purposes of measuring industry support.19 Our review of the data provided in the Petitions, the General Issues Supplement, and other information readily available to Commerce indicates that the petitioners have established industry support for the Petitions.20 First, the Petitions established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, Commerce is not required to take further action in order to evaluate industry support (e.g., polling).21 Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petitions account for at least 25 percent of the total production of the domestic like product.22 Finally, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) who support the Petitions account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petitions.23 Accordingly, Commerce determines that the Petitions were filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act. Commerce finds that the petitioners filed the Petitions on behalf of the domestic industry because they are interested parties as defined in section 771(9)(C) of the Act, and they have demonstrated sufficient industry support with respect to the CVD investigations that they are requesting that Commerce initiate.24 17 See Volume I of the Petitions, at 4–5 and Exhibit GEN–2. 18 Id.; see also General Issues Supplement, at Exhibit GEN–Supp–3. 19 Id. For further discussion, see China CVD Initiation Checklist, at Attachment II; and India CVD Initiation Checklist, at Attachment II. 20 Id. 21 Id.; see also section 702(c)(4)(D) of the Act. 22 See China CVD Initiation Checklist, at Attachment II; and India CVD Initiation Checklist, at Attachment II. 23 Id. 24 Id. E:\FR\FM\19NON1.SGM 19NON1 Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Notices Injury Test Because China and India are ‘‘Subsidies Agreement Countries’’ within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to these investigations. Accordingly, the ITC must determine whether imports of the subject merchandise from China and/or India materially injure, or threaten material injury to, a U.S. industry. khammond on DSK30JT082PROD with NOTICES Allegations and Evidence of Material Injury and Causation The petitioners allege that imports of the subject merchandise are benefitting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. In addition, the petitioners allege that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.25 In CVD petitions, section 771(24)(B) of the Act provides that imports of subject merchandise from developing and least developed countries must exceed the negligibility threshold of four percent. The petitioners also demonstrate that subject imports from India, which has been designated as a least developed country under section 771(36)(B) of the Act, exceed the negligibility threshold of four percent.26 The petitioners contend that the industry’s injured condition is illustrated by a significant and increasing volume of subject imports; reduced market share; underselling and price depression or suppression; decline in the domestic industry’s production, capacity utilization, and U.S. commercial shipments; decline in the domestic industry’s financial performance; lost sales and revenues; and closures of U.S. production facilities.27 We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as cumulation, and we have determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.28 25 See Volume I of the Petitions, at 13–14 and Exhibit GEN–8. 26 Id. 27 Id. at 10, 13–26 and Exhibits GEN–6 and GEN– 8 through GEN–13; see also General Issues Supplement, at 6–7 and Exhibits GEN–Supp–4 and GEN–Supp–5. 28 See China CVD Initiation Checklist, at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Polyester Textured Yarn from the People’s Republic of China and India (Attachment III); and India CVD Initiation Checklist, at Attachment III. VerDate Sep<11>2014 17:20 Nov 16, 2018 Jkt 247001 Initiation of CVD Investigation Based on the examination of the Petitions, we find that the Petitions meet the requirements of section 702 of the Act. Therefore, we are initiating CVD investigations to determine whether imports of yarn from China and India benefit from countervailable subsidies conferred by the GOC and GOI, respectively. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determinations no later than 65 days after the date of this initiation. China Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on 19 of the 20 alleged programs, and to partially initiate on the remaining program. For a full discussion of the basis for our decision to initiate on each program, see China CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. India Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on 40 of the 43 alleged programs, and to partially initiate on one of the 43 programs. For a full discussion of the basis for our decision to initiate on each program, see India CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. Respondent Selection In the Petitions, the petitioners named 51 companies in China 29 and 33 companies in India 30 as producers/ exporters of yarn. Commerce intends to follow its standard practice in CVD investigations and calculate companyspecific subsidy rates in these investigations. In the event Commerce determines that the number of companies is large and it cannot individually examine each company based upon Commerce’s resources, where appropriate, Commerce intends to select mandatory respondents based on U.S. Customs and Border Protection (CBP) data for U.S. imports of yarn from China and India during the POI under the appropriate Harmonized Tariff Schedule of the United States numbers 29 See Volume I of the Petition at Exhibit GEN– 5 and Second General Issues Supplement, at Exhibit GEN–SUPP–5. 30 Id. PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 58235 listed in the ‘‘Scope of the Investigation,’’ in the Appendix. On November 6, 2018, Commerce released CBP data under Administrative Protective Order (APO) to all parties with access to information protected by APO and indicated that interested parties wishing to comment regarding the CBP data and respondent selection must do so within three business days of the publication date of the notice of initiation of these CVD investigations.31 Commerce will not accept rebuttal comments regarding the CBP data or respondent selection. Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on the Commerce’s website at https://enforcement.trade.gov/ apo. Comments must be filed electronically using ACCESS. An electronically filed document must be received successfully, in its entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above. We intend to finalize our decisions regarding respondent selection within 20 days of publication of this notice. Distribution of Copies of the Petition In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 351.202(f), copies of the public versions of the Petitions have been provided to the GOC and GOI via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the Petitions to each exporter named in the Petitions, as provided under 19 CFR 351.203(c)(2). ITC Notification We will notify the ITC of our initiation, as required by section 702(d) of the Act. Preliminary Determinations by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petitions were filed, whether there is a reasonable indication that imports of yarn from China and India are materially injuring, or threatening material injury to, a U.S. industry.32 A negative ITC determination will result in the investigation being terminated.33 31 See Memorandum, ‘‘Polyester Textured Yarn from the People’s Republic of China (China) Countervailing Duty Petition: Release of Customs Data from U.S. Customs and Border Protection’’ and Memorandum, ‘‘Polyester Textured Yarn from India Countervailing Duty Petition: Release of Customs Data from U.S. Customs and Border Protection,’’ both dated November 6, 2018. 32 See section 703(a)(2) of the Act. 33 See section 703(a)(1) of the Act. E:\FR\FM\19NON1.SGM 19NON1 58236 Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Notices Otherwise, this investigation will proceed according to statutory and regulatory time limits. khammond on DSK30JT082PROD with NOTICES Submission of Factual Information Factual information is defined in 19 CFR 351.102(b)(21) as: (i) Evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by Commerce; and (v) evidence other than factual information described in (i)–(iv). 19 CFR 351.301(b) requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 34 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.35 Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on the type of factual information being submitted. Interested parties should review the regulations prior to submitting factual information in these investigations. Extensions of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by the Secretary. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301. For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, we may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, we will inform parties in the letter or memorandum setting forth the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, stand-alone submission; under limited circumstances we will grant untimely-filed requests for the extension of time limits. Parties should review 34 See 35 See 19 CFR 351.301(b). 19 CFR 351.301(b)(2). VerDate Sep<11>2014 17:20 Nov 16, 2018 Jkt 247001 Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/ pkg/FR-2013-09-20/html/201322853.htm, prior to submitting factual information in these investigations. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.36 Parties must use the certification formats provided in 19 CFR 351.303(g).37 Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). On January 22, 2008, Commerce published Antidumping and Countervailing Duty Proceedings: Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to participate in these investigations should ensure that they meet the requirements of these procedures (e.g., the filing of letters of appearance as discussed at 19 CFR 351.103(d)). Instructions for filing such applications may be found on Commerce’s website at https:// enforcement.trade.gov/apo. This notice is issued and published pursuant to sections 702 and 777(i) of the Act and 19 CFR 351.203(c). Dated: November 7, 2018. P. Lee Smith, Deputy Assistant Secretary for Policy and Negotiations. Appendix Scope of the Investigations The merchandise covered by these investigations, polyester textured yarn, is synthetic multifilament yarn that is manufactured from polyester (polyethylene terephthalate). Polyester textured yarn is produced through a texturing process, which imparts special properties to the filaments of the yarn, including stretch, bulk, strength, moisture absorption, insulation, and the appearance of a natural fiber. This scope includes all forms of polyester textured yarn, regardless of surface texture or appearance, yarn density and thickness (as measured in denier), number of filaments, number of 36 See section 782(b) of the Act. Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (‘‘Final Rule’’); see also frequently asked questions regarding the Final Rule, available at https://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 37 See PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 plies, finish (luster), cross section, color, dye method, texturing method, or packing method (such as spindles, tubes, or beams). The merchandise subject to these investigations is properly classified under subheadings 5402.33.3000 and 5402.33.6000 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise is dispositive. [FR Doc. 2018–24952 Filed 11–16–18; 8:45 am] BILLING CODE 3510–DS–P COMMODITY FUTURES TRADING COMMISSION Market Risk Advisory Committee Commodity Futures Trading Commission. ACTION: Notice of meeting. AGENCY: The Commodity Futures Trading Commission (CFTC) announces that on December 4, 2018, from 9:30 a.m. to 4:00 p.m., the Market Risk Advisory Committee (MRAC) will hold a public meeting in the Conference Center at the CFTC’s Washington, DC, headquarters. At this meeting, the MRAC will discuss: (1) The current state of clearinghouse risk management and governance and what lies ahead, (2) the management of non-default losses by clearinghouses in recovery and resolution, (3) recent reports and discussion papers on central clearing by global standard setting bodies, and (4) the oversight of third-party service providers/vendor risk management. DATES: The meeting will be held on December 4, 2018, from 9:30 a.m. to 4:00 p.m. Members of the public who wish to submit written statements in connection with the meeting should submit them by December 11, 2018. ADDRESSES: The meeting will take place in the Conference Center at the CFTC’s headquarters, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. You may submit public comments, identified by ‘‘Market Risk Advisory Committee,’’ by any of the following methods: • CFTC website: https:// comments.cftc.gov. Follow the instructions for submitting comments through the Comments Online process on the website. • Mail: Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Center, 1155 21st Street NW, Washington, DC 20581. • Hand Delivery/Courier: Same as Mail, above. SUMMARY: E:\FR\FM\19NON1.SGM 19NON1

Agencies

[Federal Register Volume 83, Number 223 (Monday, November 19, 2018)]
[Notices]
[Pages 58232-58236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24952]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-098, C-533-886]


Polyester Textured Yarn From India and the People's Republic of 
China: Initiation of Countervailing Duty Investigations

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

DATES: Applicable November 7, 2018.

FOR FURTHER INFORMATION CONTACT: Janae Martin at (202) 482-0238 (India) 
and Robert Palmer at (202) 482-9068

[[Page 58233]]

(People's Republic of China (China)), AD/CVD Operations, Enforcement 
and Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petition

    On October 18, 2018, the U.S. Department of Commerce (Commerce) 
received countervailing duty (CVD) petitions concerning imports of 
polyester textured yarn (yarn) from India and China, filed in proper 
form on behalf of Unifi Manufacturing, Inc. and Nan Ya Plastics Corp., 
America (the petitioners), domestic producers of yarn.\1\ The CVD 
Petitions were accompanied by antidumping duty (AD) petitions 
concerning imports of yarn from India and China.\2\
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    \1\ See Petitioners' Letter, ``Polyester Textured Yarn from 
India and the People's Republic of China,'' dated October 18, 2018 
(the Petitions).
    \2\ See Volumes II and IV of the Petitions.
---------------------------------------------------------------------------

    During the period October 22 through November 1, 2018, we requested 
information from the petitioners pertaining to the scope of the 
investigations and certain allegations contained within the 
Petitions.\3\ The petitioners filed additional information between 
October 26, and November 2, 2018.\4\
---------------------------------------------------------------------------

    \3\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Polyester 
Textured Yarn from the People's Republic of China and India: 
Supplemental Questions'' (General Issues Supplemental), ``Petition 
for the Imposition of Countervailing Duties on Imports of Polyester 
Textured Yarn from the People's Republic of China: Supplemental 
Questions,'' ``Petition for the Imposition of Countervailing Duties 
on Imports of Polyester Textured Yarn: Supplemental Questions,'' all 
dated October 22, 2018, ``Petition for the Imposition of 
Countervailing Duties on Imports of Polyester Textured Yarn {from 
India{time} : Supplemental Questions,'' dated October 29, 2018, and 
``Petitions for the Imposition of Antidumping and Countervailing 
Duties on Imports of Polyester Textured Yarn from the People's 
Republic of China and India: Supplemental Questionnaire Regarding 
Proposed Scope,'' dated November 1, 2018.
    \4\ See Petitioners' Letters, ``Polyester Textured Yarn from 
India and the People's Republic of China--Petitioners' Supplement to 
Volume I Relating to General Issues,'' ``Polyester Textured Yarn 
from India--Petitioners' Response to Department's October 22, 2018 
Supplemental Questionnaire,'' and ``Petitioners' Supplement to 
Volume III of the Petitions Relating to Countervailing Duty 
Investigation of Polyester Textured Yarn from the People's Republic 
of China,'' all dated October 26, 2018; Petitioners' Letter to 
Commerce, ``Polyester Textured Yarn from India--Petitioners' 
Response to the Department's October 29, 2018 Supplemental 
Questionnaire,'' dated October 30, 2018; Petitioners' Letter to 
Commerce, ``Polyester Textured Yarn from India and the People's 
Republic of China--Petitioners' Supplement to Volume I Relating to 
General Issues,'' dated October 31, 2018 (Second General Issues 
Supplement); and Petitioners' Letter to Commerce, ``Polyester 
Textured Yarn from India and the People's Republic of China--
Petitioners' Response to Commerce's Question Regarding the Scope 
Language,'' dated November 2, 2018.
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that the Governments of China 
and India (GOC, and GOI, respectively) are providing countervailable 
subsidies, within the meaning of sections 701 and 771(5) of the Act, to 
producers of yarn in China and India and that imports of such products 
are materially injuring, or threatening material injury to, the 
domestic yarn 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 CVD investigations, the Petitions are 
accompanied by information reasonably available to the petitioners 
supporting their allegations.
    Commerce finds that the petitioners filed the Petitions on behalf 
of the domestic industry because the petitioners are interested parties 
as defined in section 771(9)(C) of the Act. Commerce also finds that 
the petitioners demonstrated sufficient industry support necessary for 
the initiation of the requested CVD investigations.\5\
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    \5\ See the ``Determination of Industry Support for the 
Petition'' section, infra.
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Period of Investigations

    Because the Petitions were filed on October 18, 2018, the period of 
investigation is January 1, 2017, through December 31, 2017 for each 
investigation.

Scope of the Investigations

    The product covered by these investigations is yarn from China and 
India. For a full description of the scope of these investigations, see 
the Appendix to this notice.

Comments on the Scope of the Investigations

    During our review of the Petitions, we contacted the petitioners 
regarding the proposed scope to ensure that the scope language in the 
Petitions is an accurate reflection of the products for which the 
domestic industry is seeking relief.\6\ As a result, the scope of the 
Petitions was modified to clarify the description of merchandise 
covered by the Petitions. The description of the merchandise covered by 
these investigations, as described in the Appendix to this notice, 
reflects these clarifications.
---------------------------------------------------------------------------

    \6\ See General Issues Supplement. See also Memorandum, re: 
``Petitions for the Imposition of Antidumping and Countervailing 
Duties on Imports of Polyester Textured Yarn from the People's 
Republic of China and India-Phone Call with Counsel to the 
Petitioners,'' dated October 29, 2018.
---------------------------------------------------------------------------

    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).\7\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\8\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on November 27, 2018, which is 20 calendar days from the signature 
date of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on December 7, 2018, which 
is 10 calendar days from the initial comments deadline.\9\
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    \7\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \8\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \9\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigation be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must be filed 
on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\10\ An electronically 
filed document must be received successfully in its entirety by the 
time and date it is due. Documents exempted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room

[[Page 58234]]

18022, U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230, and stamped with the date and time of receipt by 
the applicable deadlines.
---------------------------------------------------------------------------

    \10\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011). See also Enforcement and 
Compliance: Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, which went into effect on August 5, 2011. Information 
on help using ACCESS can be found at https://access.trade.gov/help.aspx, and a handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified representatives of the GOC and GOI of the receipt of the 
Petitions and provided them the opportunity for consultations with 
respect to the China CVD Petition and India CVD Petition, 
respectively.\11\ Consultations were held with the GOI on November 2, 
2018.\12\ The GOC did not request consultations.
---------------------------------------------------------------------------

    \11\ See Commerce's Letters, ``Countervailing Duty Petition on 
Polyester Textured Yarn from the People's Republic of China: 
Invitation for Consultations to Discuss the Countervailing Duty 
Petition'' and ``Countervailing Duty Petition on Polyester Textured 
Yarn from India: Invitation for Consultations to Discuss the 
Countervailing Duty Petition,'' both dated October 18, 2018.
    \12\ See Memorandum, ``Consultations with Officials from the 
Government of India Regarding the Countervailing Duty Petition 
Concerning Polyester Textured Yarn,'' dated November 2, 2018.
---------------------------------------------------------------------------

Determination of Industry Support for the Petitions

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers, as a whole, of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\13\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\14\
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    \13\ See section 771(10) of the Act.
    \14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioners do not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\15\ Based on our analysis of the information 
submitted on the record, we have determined that polyester textured 
yarn, as defined in the scope, constitutes a single domestic like 
product, and we have analyzed industry support in terms of that 
domestic like product.\16\
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    \15\ See Volume I of the Petitions, at 11-12; see also General 
Issues Supplement, at 4-5 and Exhibit GEN-Supp-2.
    \16\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Countervailing Duty Investigation Initiation Checklist: 
Polyester Textured Yarn from the People's Republic of China (China 
CVD Initiation Checklist), at Attachment II, Analysis of Industry 
Support for the Antidumping and Countervailing Duty Petition 
Covering Polyester Textured Yarn from the People's Republic of China 
and India (Attachment II); see also Countervailing Duty 
Investigation Initiation Checklist: Polyester Textured Yarn from 
India (India CVD Initiation Checklist), at Attachment II. These 
checklists are dated concurrently with this notice and on file 
electronically via ACCESS. Access to documents filed via ACCESS is 
also available in the Central Records Unit, Room B8024 of the main 
Department of Commerce building.
---------------------------------------------------------------------------

    In determining whether the petitioners have standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the Appendix to 
this notice. To establish industry support, the petitioners provided 
their own production of the domestic like product in 2017, as well as 
the 2017 production of companies that support the Petitions.\17\ The 
petitioners compared the production of the supporters of the Petitions 
to the estimated total production of the domestic like product for the 
entire domestic industry.\18\ We relied on data provided by the 
petitioners for purposes of measuring industry support.\19\
---------------------------------------------------------------------------

    \17\ See Volume I of the Petitions, at 4-5 and Exhibit GEN-2.
    \18\ Id.; see also General Issues Supplement, at Exhibit GEN-
Supp-3.
    \19\ Id. For further discussion, see China CVD Initiation 
Checklist, at Attachment II; and India CVD Initiation Checklist, at 
Attachment II.
---------------------------------------------------------------------------

    Our review of the data provided in the Petitions, the General 
Issues Supplement, and other information readily available to Commerce 
indicates that the petitioners have established industry support for 
the Petitions.\20\ First, the Petitions established support from 
domestic producers (or workers) accounting for more than 50 percent of 
the total production of the domestic like product and, as such, 
Commerce is not required to take further action in order to evaluate 
industry support (e.g., polling).\21\ Second, the domestic producers 
(or workers) have met the statutory criteria for industry support under 
section 702(c)(4)(A)(i) of the Act because the domestic producers (or 
workers) who support the Petitions account for at least 25 percent of 
the total production of the domestic like product.\22\ Finally, the 
domestic producers (or workers) have met the statutory criteria for 
industry support under section 702(c)(4)(A)(ii) of the Act because the 
domestic producers (or workers) who support the Petitions account for 
more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the Petitions.\23\ Accordingly, Commerce determines that 
the Petitions were filed on behalf of the domestic industry within the 
meaning of section 702(b)(1) of the Act.
---------------------------------------------------------------------------

    \20\ Id.
    \21\ Id.; see also section 702(c)(4)(D) of the Act.
    \22\ See China CVD Initiation Checklist, at Attachment II; and 
India CVD Initiation Checklist, at Attachment II.
    \23\ Id.
---------------------------------------------------------------------------

    Commerce finds that the petitioners filed the Petitions on behalf 
of the domestic industry because they are interested parties as defined 
in section 771(9)(C) of the Act, and they have demonstrated sufficient 
industry support with respect to the CVD investigations that they are 
requesting that Commerce initiate.\24\
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    \24\ Id.

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[[Page 58235]]

Injury Test

    Because China and India are ``Subsidies Agreement Countries'' 
within the meaning of section 701(b) of the Act, section 701(a)(2) of 
the Act applies to these investigations. Accordingly, the ITC must 
determine whether imports of the subject merchandise from China and/or 
India materially injure, or threaten material injury to, a U.S. 
industry.

Allegations and Evidence of Material Injury and Causation

    The petitioners allege that imports of the subject merchandise are 
benefitting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioners 
allege that subject imports exceed the negligibility threshold provided 
for under section 771(24)(A) of the Act.\25\ In CVD petitions, section 
771(24)(B) of the Act provides that imports of subject merchandise from 
developing and least developed countries must exceed the negligibility 
threshold of four percent. The petitioners also demonstrate that 
subject imports from India, which has been designated as a least 
developed country under section 771(36)(B) of the Act, exceed the 
negligibility threshold of four percent.\26\
---------------------------------------------------------------------------

    \25\ See Volume I of the Petitions, at 13-14 and Exhibit GEN-8.
    \26\ Id.
---------------------------------------------------------------------------

    The petitioners contend that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
decline in the domestic industry's production, capacity utilization, 
and U.S. commercial shipments; decline in the domestic industry's 
financial performance; lost sales and revenues; and closures of U.S. 
production facilities.\27\ We have assessed the allegations and 
supporting evidence regarding material injury, threat of material 
injury, causation, as well as cumulation, and we have determined that 
these allegations are properly supported by adequate evidence, and meet 
the statutory requirements for initiation.\28\
---------------------------------------------------------------------------

    \27\ Id. at 10, 13-26 and Exhibits GEN-6 and GEN-8 through GEN-
13; see also General Issues Supplement, at 6-7 and Exhibits GEN-
Supp-4 and GEN-Supp-5.
    \28\ See China CVD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Polyester Textured Yarn from the People's Republic of China 
and India (Attachment III); and India CVD Initiation Checklist, at 
Attachment III.
---------------------------------------------------------------------------

Initiation of CVD Investigation

    Based on the examination of the Petitions, we find that the 
Petitions meet the requirements of section 702 of the Act. Therefore, 
we are initiating CVD investigations to determine whether imports of 
yarn from China and India benefit from countervailable subsidies 
conferred by the GOC and GOI, respectively. In accordance with section 
703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we 
will make our preliminary determinations no later than 65 days after 
the date of this initiation.

China

    Based on our review of the Petition, we find that there is 
sufficient information to initiate a CVD investigation on 19 of the 20 
alleged programs, and to partially initiate on the remaining program. 
For a full discussion of the basis for our decision to initiate on each 
program, see China CVD Initiation Checklist. A public version of the 
initiation checklist for this investigation is available on ACCESS.

India

    Based on our review of the Petition, we find that there is 
sufficient information to initiate a CVD investigation on 40 of the 43 
alleged programs, and to partially initiate on one of the 43 programs. 
For a full discussion of the basis for our decision to initiate on each 
program, see India CVD Initiation Checklist. A public version of the 
initiation checklist for this investigation is available on ACCESS.

Respondent Selection

    In the Petitions, the petitioners named 51 companies in China \29\ 
and 33 companies in India \30\ as producers/exporters of yarn. Commerce 
intends to follow its standard practice in CVD investigations and 
calculate company-specific subsidy rates in these investigations. In 
the event Commerce determines that the number of companies is large and 
it cannot individually examine each company based upon Commerce's 
resources, where appropriate, Commerce intends to select mandatory 
respondents based on U.S. Customs and Border Protection (CBP) data for 
U.S. imports of yarn from China and India during the POI under the 
appropriate Harmonized Tariff Schedule of the United States numbers 
listed in the ``Scope of the Investigation,'' in the Appendix.
---------------------------------------------------------------------------

    \29\ See Volume I of the Petition at Exhibit GEN-5 and Second 
General Issues Supplement, at Exhibit GEN-SUPP-5.
    \30\ Id.
---------------------------------------------------------------------------

    On November 6, 2018, Commerce released CBP data under 
Administrative Protective Order (APO) to all parties with access to 
information protected by APO and indicated that interested parties 
wishing to comment regarding the CBP data and respondent selection must 
do so within three business days of the publication date of the notice 
of initiation of these CVD investigations.\31\ Commerce will not accept 
rebuttal comments regarding the CBP data or respondent selection.
---------------------------------------------------------------------------

    \31\ See Memorandum, ``Polyester Textured Yarn from the People's 
Republic of China (China) Countervailing Duty Petition: Release of 
Customs Data from U.S. Customs and Border Protection'' and 
Memorandum, ``Polyester Textured Yarn from India Countervailing Duty 
Petition: Release of Customs Data from U.S. Customs and Border 
Protection,'' both dated November 6, 2018.
---------------------------------------------------------------------------

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on the Commerce's website at https://enforcement.trade.gov/apo.
    Comments must be filed electronically using ACCESS. An 
electronically filed document must be received successfully, in its 
entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above. 
We intend to finalize our decisions regarding respondent selection 
within 20 days of publication of this notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 
351.202(f), copies of the public versions of the Petitions have been 
provided to the GOC and GOI via ACCESS. To the extent practicable, we 
will attempt to provide a copy of the public version of the Petitions 
to each exporter named in the Petitions, as provided under 19 CFR 
351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
702(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of yarn from China and India are materially 
injuring, or threatening material injury to, a U.S. industry.\32\ A 
negative ITC determination will result in the investigation being 
terminated.\33\

[[Page 58236]]

Otherwise, this investigation will proceed according to statutory and 
regulatory time limits.
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    \32\ See section 703(a)(2) of the Act.
    \33\ See section 703(a)(1) of the Act.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). 19 CFR 351.301(b) requires any 
party, when submitting factual information, to specify under which 
subsection of 19 CFR 351.102(b)(21) the information is being submitted 
\34\ 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.\35\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Interested parties should review the 
regulations prior to submitting factual information in these 
investigations.
---------------------------------------------------------------------------

    \34\ See 19 CFR 351.301(b).
    \35\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in the letter or memorandum setting 
forth the deadline (including a specified time) by which extension 
requests must be filed to be considered timely. An extension request 
must be made in a separate, stand-alone submission; under limited 
circumstances we will grant untimely-filed requests for the extension 
of time limits. Parties should review Extension of Time Limits; Final 
Rule, 78 FR 57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to 
submitting factual information in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\36\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\37\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \36\ See section 782(b) of the Act.
    \37\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (``Final Rule''); see also 
frequently asked questions regarding the Final Rule, available at 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). On January 22, 2008, Commerce 
published Antidumping and Countervailing Duty Proceedings: Documents 
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). 
Parties wishing to participate in these investigations should ensure 
that they meet the requirements of these procedures (e.g., the filing 
of letters of appearance as discussed at 19 CFR 351.103(d)). 
Instructions for filing such applications may be found on Commerce's 
website at https://enforcement.trade.gov/apo.
    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act and 19 CFR 351.203(c).

    Dated: November 7, 2018.
P. Lee Smith,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix

Scope of the Investigations

    The merchandise covered by these investigations, polyester 
textured yarn, is synthetic multifilament yarn that is manufactured 
from polyester (polyethylene terephthalate). Polyester textured yarn 
is produced through a texturing process, which imparts special 
properties to the filaments of the yarn, including stretch, bulk, 
strength, moisture absorption, insulation, and the appearance of a 
natural fiber. This scope includes all forms of polyester textured 
yarn, regardless of surface texture or appearance, yarn density and 
thickness (as measured in denier), number of filaments, number of 
plies, finish (luster), cross section, color, dye method, texturing 
method, or packing method (such as spindles, tubes, or beams).
    The merchandise subject to these investigations is properly 
classified under subheadings 5402.33.3000 and 5402.33.6000 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the merchandise is dispositive.

[FR Doc. 2018-24952 Filed 11-16-18; 8:45 am]
 BILLING CODE 3510-DS-P

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