Polyester Textured Yarn From the People's Republic of China: Preliminary Affirmative Determinations of Critical Circumstances in the Antidumping and Countervailing Duty Investigations, 16840-16843 [2019-08275]

Download as PDF 16840 Federal Register / Vol. 84, No. 78 / Tuesday, April 23, 2019 / Notices (202) 720–9554. You may obtain additional information regarding applications or submit requests for technical assistance at https:// www.usda.gov/reconnect/contact-us. SUPPLEMENTARY INFORMATION: Authority: This solicitation is issued pursuant to the Consolidated Appropriations Act, 2018, Public Law 115–141, and the Rural Electrification Act of 1936, 7 U.S.C. 901 et seq. jbell on DSK3GLQ082PROD with NOTICES Overview Federal Agency: Rural Utilities Service, USDA. Funding Opportunity Title: Rural eConnectivity Pilot Program (ReConnect Program). Announcement Type: Announcement of Opening Date for Rural eConnectivity Pilot Program Application Windows (FOA published in the Federal Register on December 14, 2018.) Catalog of Federal Domestic Assistance (CFDA) Number: Rural eConnectivity Pilot Program (ReConnect Program)—10.752. I. Background On March 23, 2018, Congress passed the Consolidated Appropriations Act 2018, which established a broadband loan and grant pilot program, the ReConnect Program. One of the essential goals of the ReConnect Program is to expand broadband service to rural areas without sufficient access to broadband, defined as 10 megabits per second (Mbps) downstream and 1 Mbps upstream. For this purpose, Congress provided RUS with $600 million and expanded its existing authority to make loans and grants. On December 14, 2018, RUS published a Funding Opportunity Announcement (FOA) and solicitation of applications in the Federal Register at 83 FR 64315. The FOA provided the policy and application procedures for the ReConnect Program. On February 25, 2019, RUS published a notice announcing the application deadlines in the Federal Register at 84 FR 5981. The agency is publishing this notice to provide the date that the application windows will open. Since the publication of the December 14, 2018 FOA, the 2019 Appropriations Act became law on February 15, 2019. The 2019 Appropriations Act requires that the Agency shall, in determining whether an entity may overbuild, or duplicate broadband expansion efforts made by any entity that has received a broadband loan from RUS, not consider loans that were rescinded or defaulted on, or whose loan terms and conditions were not met, if the new entity under consideration has not previously VerDate Sep<11>2014 17:49 Apr 22, 2019 Jkt 247001 defaulted on, or failed to meet the terms and conditions of, an RUS loan or had an RUS loan rescinded. To address these issues, the actions taken in the Notice published in the Federal Register (84 FR 14911) on April 12, 2019: (1) Revises the definition of Broadband loan in the FOA, as published in the Federal Register on December 14, 2018, as required by the 2019 Appropriations Act; (2) describes any changes to the data used in the protected broadband service areas mapping layer and, (3) announces the criteria by which applicants may challenge the determination of service area eligibility. These actions were taken by the Agency to ensure that all eligible service areas receive fair consideration for funding under the ReConnect Program. Telecommunications companies, rural electric cooperatives and utilities, internet service providers and municipalities may apply for funding through the ReConnect Program to connect rural areas that do not have sufficient broadband service. Funds will be awarded to projects that have financially sustainable business models that will bring high-speed broadband to rural homes, businesses, farms, ranches and community facilities, such as first responders, health care sites, and schools. The ReConnect Program enables USDA to create and implement innovative solutions to rural connectivity by providing various financial options to our partners and customers. II. Funding Categories and Application Submission Dates A. Funding Categories Applications will be accepted on a rolling basis from April 23, 2019 through July 12, 2019. If two loan applications are received for the same proposed funded service area, the application that arrives first will be considered first. 2. 50 Percent Loan/50 Percent Grant Combination Applications will be accepted from April 23, 2019 through June 21, 2019. Notwithstanding overlapping applications, generally all eligible applications will be scored and the applications with the highest score will receive an award offer until all funds are expended for this category. Scoring criteria was established in the Federal Register FOA on December 14, 2018 and can also be found on the website https:// reconnect.usda.gov. Frm 00005 Fmt 4703 Sfmt 4703 Applications will be accepted from April 23, 2019 through May 31, 2019. Notwithstanding overlapping applications, generally all eligible applications will be scored and the applications with the highest score will receive an award offer until all funds are expended for this category. Scoring criteria was established in the FOA, published in Federal Register on December 14, 2018, and can also be found on the website https:// reconnect.usda.gov. B. Available Funds USDA is making available up to $200 million in in program level for grants, $200 million in program level for loan and grant combinations, and $200 million in program level for low-interest loans. RUS retains the discretion to divert funds from one funding category to another. III. Program Requirements To be eligible for an award, applications must meet all the requirements contained in the FOA published in the Federal Register on December 14, 2018 at 83 FR 64315. Information can also be found at https:// reconnect.usda.gov. Chad Rupe, Acting Administrator, Rural Utilities Service. [FR Doc. 2019–08176 Filed 4–22–19; 8:45 am] BILLING CODE 3410–15–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–097 and C–570–098] 1. 100 Percent Loan PO 00000 3. 100 Percent Grant Polyester Textured Yarn From the People’s Republic of China: Preliminary Affirmative Determinations of Critical Circumstances in the Antidumping and Countervailing Duty Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that critical circumstances exist with respect to all imports of polyester textured yarn (yarn) from the People’s Republic of China (China). DATES: Applicable April 23, 2019. FOR FURTHER INFORMATION CONTACT: George Ayache, AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue AGENCY: E:\FR\FM\23APN1.SGM 23APN1 Federal Register / Vol. 84, No. 78 / Tuesday, April 23, 2019 / Notices NW, Washington, DC 20230; telephone (202) 482–2623. SUPPLEMENTARY INFORMATION: Background jbell on DSK3GLQ082PROD with NOTICES On October 18, 2018, Commerce received antidumping duty (AD) and countervailing duty (CVD) petitions concerning imports of yarn from China filed in proper form on behalf of Unifi Manufacturing, Inc. and Nan Ya Plastics Corp. America (the petitioners).1 On November 19, 2018, we published the notices of initiation of the AD and CVD investigations.2 In the AD investigation, Commerce selected Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. (Fujian Billion), Fujian Zhengqi High Tech Fiber, and Suzhou Shenghong Fiber Co., Ltd. (Suzhou Shenghong) as the respondents for individual examination.3 In the CVD investigation, Commerce selected Fujian Billion, Jiangsu Shenghong Textile Imp & Exp Co., Suzhou Shenghong, and Suzhou Shenghong Garmant Development Co.4 On April 2, 2019, the petitioners alleged that critical circumstances exist with respect to imports of yarn from China, pursuant to sections 703(e)(1) and 733(e)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.206.5 In accordance with 19 CFR 351.206(c)(2)(i), if the petitioner submits an allegation of critical circumstances more than 20 days before the scheduled date of the preliminary determination, Commerce must issue a preliminary finding whether there is a reasonable basis to believe or suspect that critical circumstances exist by no later than the date of the preliminary determination.6 1 See the petitioners’ letter, ‘‘Polyester Textured Yarn from the People’s Republic of China and India—Petition for the Imposition of Antidumping and Countervailing Duties,’’ dated October 18, 2018 (Petitions). 2 See Polyester Textured Yarn from India and the People’s Republic of China: Initiation of Less-ThanFair-Value Investigations, 83 FR 58223 (November 19, 2018); see also Polyester Textured Yarn from India and the People’s Republic of China: Initiation of Countervailing Duty Investigations, 83 FR 58232 (November 19, 2018). 3 See Memorandum, ‘‘Less-Than-Fair-Value Investigation of Polyester Textured Yarn from the People’s Republic of China: Respondent Selection,’’ dated December 11, 2018. 4 See Memorandum, ‘‘Countervailing Duty Investigation of Polyester Textured Yarn from the People’s Republic of China: Respondent Selection,’’ dated December 11, 2018. 5 See the petitioners’ letter, ‘‘Polyester Textured Yarn from the People’s Republic of China— Petitioners’ Allegation of Critical Circumstances,’’ dated April 2, 2018 (Critical Circumstances Allegation). 6 The preliminary determination for the AD investigation is currently due no later than June 25, 2019, and the preliminary determination for the VerDate Sep<11>2014 17:49 Apr 22, 2019 Jkt 247001 In these AD and CVD investigations, the petitioners requested that Commerce issue preliminary critical circumstances determinations on an expedited basis.7 Section 703(e)(1) of the Act provides that Commerce, upon receipt of a timely allegation of critical circumstances, will preliminarily determine that critical circumstances exist in CVD investigations if there is a reasonable basis to believe or suspect that: (A) ‘‘the alleged countervailable subsidy’’ is inconsistent with the Subsidies and Countervailing Measures (SCM) Agreement of the World Trade Organization; and (B) there have been massive imports of the subject merchandise over a relatively short period. Section 733(e)(1) of the Act provides that Commerce, upon receipt of a timely allegation of critical circumstances, will preliminarily determine that critical circumstances exist in AD investigations if there is a reasonable basis to believe or suspect that: (A)(i) There is a history of dumping and material injury by reason of dumped imports in the United States or elsewhere of the subject merchandise, or (ii) the person by whom, or for whose account, the merchandise was imported knew or should have known that the exporter was selling the subject merchandise at less than its fair value and that there was likely to be material injury by reason of such sales; and (B) there have been massive imports of the subject merchandise over a relatively short period. Sections 351.206(h)(2) and (i) of Commerce’s regulations provide that imports must increase by at least 15 percent during the ‘‘relatively short period’’ to be considered ‘‘massive’’ and defines a ‘‘relatively short period’’ as normally being the period beginning on the date the proceeding begins (i.e., the date the petition is filed) and ending at least three months later. Commerce’s regulations also provide, however, 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 that earlier time.8 Critical Circumstances Analysis Alleged Countervailable Subsidies Are Inconsistent With the SCM Agreement To determine whether an alleged countervailable subsidy is inconsistent with the SCM Agreement, in accordance CVD investigation is currently due no later than April 26, 2019. 7 See Critical Circumstances Allegation at 3–5. 8 See 19 CFR 351.206(i). PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 16841 with section 703(e)(1)(A) of the Act, Commerce considered the evidence currently on the record of the CVD investigation. Specifically, as reflected in the initiation checklist, the following subsidy programs, alleged in the Petitions and supported by information reasonably available to the petitioners, appear to be either export contingent or contingent upon the use of domestic goods over imported goods, which would render them inconsistent with the SCM Agreement: 9 • Export Loans from Chinese StateOwned Banks • Export Seller’s Credit • Export Buyer’s Credit • Export Credit Guarantees • GOC and Sub-Central Government Subsidies for the Development of Famous Brands and China World Top Brands • SME International Market Exploration/Development Fund • Export Assistance Grants • VAT Refunds for FIEs Purchasing Domestically-Produced Equipment Therefore, Commerce preliminarily determines that there is a reasonable basis to believe or suspect that alleged subsidies in the CVD investigation are inconsistent with the SCM Agreement. History of Dumping and Material Injury/ Knowledge of Sales Below Fair Value and Material Injury To determine whether there is a history of dumping pursuant to section 733(e)(1)(A)(i) of the Act, Commerce generally considers current or previous AD orders on subject merchandise from the country in question in the United States and current orders imposed by other countries regarding imports of the same merchandise. However, in the Critical Circumstances Allegation, the petitioners did not provide information on the history of dumping.10 To determine whether importers knew or should have known that exporters were selling the subject merchandise at less than fair value pursuant to section 733(e)(1)(A)(ii) of the Act, we typically consider the magnitude of dumping margins, including margins alleged in petitions.11 9 See CVD Initiation Checklist: Polyester Textured Yarn from the People’s Republic of China, dated November 7, 2018. 10 See Critical Circumstances Allegation at 5–7. 11 See, e.g., Notice of Preliminary Determinations of Critical Circumstances: Certain Cold-Rolled Carbon Steel Flat Products from Australia, the People’s Republic of China, India, the Republic of Korea, the Netherlands, and the Russian Federation, 67 FR 19157, 19158 (April 18, 2002) (unchanged in Notice of Final Determination of Sales at Less Than Fair Value: Certain Cold-Rolled Carbon Steel Flat Products from Australia, 67 FR E:\FR\FM\23APN1.SGM Continued 23APN1 16842 Federal Register / Vol. 84, No. 78 / Tuesday, April 23, 2019 / Notices jbell on DSK3GLQ082PROD with NOTICES Commerce has found margins of 15 percent or more (for constructed export price) to 25 percent or more (for export price) to be sufficient for this purpose.12 The dumping margins of 74.98 percent and 77.15 percent alleged in the AD Petition Supplement significantly exceed the 15 to 25 percent threshold.13 Therefore, on that basis, we preliminarily conclude importers knew, or should have known, that exporters in China were selling at less than fair value. To determine whether importers knew, or should have known, that there was likely to be material injury caused by reason of such imports pursuant section 733(e)(1)(A)(ii) of the Act, Commerce normally will look to the preliminary injury determination of the International Trade Commission (ITC).14 If the ITC finds a reasonable indication of material injury to the relevant U.S. industry, Commerce will determine that a reasonable basis exists to impute importer knowledge that material injury is likely by reason of such imports. In these investigations, the ITC found that there is a ‘‘reasonable indication’’ of material injury to the domestic industry because of the imported subject merchandise.15 Therefore, the ITC’s preliminary injury determination in the 47509 (July 19, 2002), Notice of Final Determination of Sales at Less Than Fair Value: Certain ColdRolled Carbon Steel Flat Products from the People’s Republic of China, 67 FR 62107 (October 3, 2002), Notice of Final Determination of Sales at Less Than Fair Value: Certain Cold-Rolled Carbon Steel Flat Products from India, 67 FR 47518 (July 19, 2002), Notice of Final Determination of Sales at Less Than Fair Value: Certain Cold-Rolled Carbon Steel Flat Products from Korea, 67 FR 62124 (October 3, 2002), Notice of Final Determination of Sales at Less Than Fair Value and Critical Circumstances: Certain Cold-Rolled Carbon Steel Flat Products from The Netherlands, 67 FR 62112 (October 3, 2002), Notice of the Final Determination Sales at Less Than Fair Value and Critical Circumstances: Certain Cold-Rolled Carbon Steel Flat Products from the Russian Federation, 67 FR 62121 (October 3, 2002)). 12 Id. 13 See the petitioners’ letter, ‘‘Polyester Textured Yarn from the People’s Republic of China— Petitioners’ Supplement for Volume II Regarding China Antidumping Duties,’’ dated October 29, 2018 (AD Petition Supplement), at 7 and Exhibit AD–PRC–Supp–5. 14 See, e.g., Antidumping and Countervailing Duty Investigations of Certain Softwood Lumber Products from Canada: Preliminary Determinations of Critical Circumstances, 82 FR 19219, 19220 (April 26, 2017) (Softwood Lumber from Canada Preliminary Critical Circumstances Determination), unchanged in Certain Softwood Lumber Products from Canada: Final Affirmative Determination of Sales at Less Than Fair Value and Affirmative Final Determination of Critical Circumstances, 82 FR 51806, 51807–08 (November 8, 2017) (Softwood Lumber from Canada Final AD Determination). 15 See Polyester Textured Yarn from China and India: Investigation Nos. 701–TA–612–613 and 731– 1429–1430 (Preliminary), 83 FR 63532 (December 10, 2018). VerDate Sep<11>2014 17:49 Apr 22, 2019 Jkt 247001 AD investigation is sufficient to impute importer knowledge. Massive Imports In determining whether there are ‘‘massive imports’’ over a ‘‘relatively short period,’’ pursuant to sections 703(e)(1)(B) and 733(e)(1)(B) of the Act, 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’’).16 Imports will normally be considered massive when imports during the comparison period have increased by 15 percent or more compared to imports during the base period.17 Accordingly, to determine preliminarily whether there has been a massive surge in imports for each mandatory respondent which provided shipment data, Commerce compared the total volume of shipments from November 2018 through January 2019, the comparison period (i.e., all months for which shipment data was available), with the preceding three-month period of August 2018 through October 2018, the base period. Regarding the CVD investigation, for ‘‘all others,’’ Commerce compared Global Trade Atlas (GTA) data for the period November 2018 through January 2019 with the preceding three-month period of August 2018 through October 2018,18 after subtracting from the GTA data shipments reported by the mandatory respondents which provided such data. Similarly, regarding the AD investigation, for non-individually examined companies requesting separate rate status, we performed the same comparison. For those mandatory respondents in either the CVD or AD investigation that are not participating in the investigation, we preliminarily determine, on the basis of adverse facts available,19 that there has been a massive surge in imports. Accordingly, based on our analysis of information on the record, we preliminarily determine that all producers/exporters of yarn 16 See Softwood Lumber from Canada Preliminary Critical Circumstances Determination, 82 FR at 19220, unchanged in Softwood Lumber from Canada Final AD Determination, 82 FR at 51807– 08. 17 Id. 18 Commerce gathered GTA data under the following harmonized tariff schedule numbers: 5402.33.3000 and 5402.33.6000. 19 See section 776 of the Act. PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 from China had massive surges in imports.20 Based on the criteria and findings discussed above, we preliminarily determine in both the AD and CVD investigations that critical circumstances exist with respect to all imports of yarn from China. Final Critical Circumstances Determination We will issue our final determinations concerning critical circumstances when we issue our final CVD and AD determinations. All interested parties will have the opportunity to address this determination in case briefs to be submitted after the completion of the preliminary CVD and AD determinations by a deadline to be established at a later date. ITC Notification In accordance with sections 703(f) and 733(f) of the Act, we will notify the ITC of these preliminary determinations of critical circumstances. Suspension of Liquidation In accordance with section 703(e)(2) of the Act, because we have preliminarily found that critical circumstances exist with regard to imports from all producers and exporters of yarn from China, if we make an affirmative preliminary determination that countervailable subsidies have been provided to these same producers/exporters at above de minimis rates, we will instruct U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of subject merchandise from these producers/exporters that are entered, or withdrawn from warehouse for consumption, on or after the date that is 90 days prior to the effective date of ‘‘provisional measures’’ (e.g., the date of publication in the Federal Register of the notice of an affirmative preliminary determination that countervailable subsidies have been provided at above de minimis rates). At such time, we will also instruct CBP to require a cash deposit equal to the estimated preliminary subsidy rates reflected in the preliminary determination published in the Federal Register. The suspension of liquidation will remain in effect until further notice. In accordance with section 733(e)(2) of the Act, because we have preliminarily found that critical circumstances exist with regard to imports from all producers and 20 See Memorandum, ‘‘Polyester Textured Yarn from the People’s Republic of China: Preliminary Critical Circumstances Calculation,’’ dated concurrently with this notice. E:\FR\FM\23APN1.SGM 23APN1 Federal Register / Vol. 84, No. 78 / Tuesday, April 23, 2019 / Notices exporters of yarn from China, if we make an affirmative preliminary determination that sales at less than fair value have been made by these same producers/exporters at above de minimis rates, we will instruct CBP to suspend liquidation of all entries of subject merchandise from these producers/exporters that are entered, or withdrawn from warehouse, for consumption on or after the date that is 90 days prior to the effective date of ‘‘provisional measures’’ (e.g., the date of publication in the Federal Register of the notice of an affirmative preliminary determination of sales at LTFV at above de minimis rates). At such time, we will also instruct CBP to require a cash deposit equal to the estimated preliminary dumping margins reflected in the preliminary determination published in the Federal Register. The suspension of liquidation will remain in effect until further notice. These determinations are issued and published pursuant to section 777(i)(1) of the Act and 19 CFR 351.206(c)(2). Dated: April 18, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. [FR Doc. 2019–08275 Filed 4–22–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–533–885, A–570–097] Polyester Textured Yarn From India and the People’s Republic of China: Postponement of Preliminary Determinations in the Less-Than-FairValue Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable April 23, 2019. FOR FURTHER INFORMATION CONTACT: Irene Gorelik at (202) 482–6905 (People’s Republic of China (China)); Katherine Johnson at (202) 482–4929 (India), AD/CVD Operations, VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: jbell on DSK3GLQ082PROD with NOTICES AGENCY: Background On November 7, 2018, the Department of Commerce (Commerce) initiated lessthan-fair-value (LTFV) investigations of imports of polyester textured yarn (yarn) VerDate Sep<11>2014 17:49 Apr 22, 2019 Jkt 247001 from India and China.1 Commerce exercised its discretion to toll all deadlines affected by the partial federal government closure from December 22, 2018, through the resumption of operations on January 29, 2019.2 Currently, the preliminary determinations of these LTFV investigations are due no later than May 6, 2019. Postponement of Preliminary Determinations Section 733(b)(1)(A) of the Tariff Act of 1930, as amended (the Act), requires Commerce to issue the preliminary determination in an LTFV investigation within 140 days after the date on which Commerce initiated the investigation. However, section 733(c)(1) of the Act permits Commerce to postpone the preliminary determination until no later than 190 days after the date on which Commerce initiated the investigation if: (A) The petitioner makes a timely request for a postponement; or (B) Commerce concludes that the parties concerned are cooperating and determines that (i) the investigation is extraordinarily complicated, and that (ii) additional time is necessary to make a preliminary determination. Under 19 CFR 351.205(e), the petitioner must submit a request for postponement 25 days or more before the scheduled date of the preliminary determination and must state the reasons for the request. Commerce will grant the request unless it finds compelling reasons to deny the request. On March 29, 2019, the petitioners 3 submitted a timely request that Commerce postpone the preliminary determinations in these LTFV investigations.4 The petitioners stated that they requested postponement to allow Commerce time to gather all data and questionnaire responses and to allow Commerce and interested parties 1 See Polyester Textured Yarn from India and the People’s Republic of China: Initiation of Less-ThanFair-Value Investigations, 83 FR 58223 (November 19, 2018) (Initiation Notice). 2 See Memorandum to the Record from 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, ‘‘Deadlines Affected by the Partial Shutdown of the Federal Government,’’ dated January 28, 2019. All deadlines in these LTFV investigations affected by the partial federal government closure have been extended by 40 days. If the new deadline falls on a non-business day, in accordance with Commerce’s practice, the deadline will become the next business day. 3 The petitioners are Unifi Manufacturing, Inc. and Nan Ya Plastics Corporation, America. 4 See the Petitioners’ Letter, ‘‘Polyester Textured Yarn from China and India—Petitioners’ Request to Extend the Preliminary Antidumping Duty Determinations,’’ dated March 29, 2019. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 16843 time to fully and properly analyze all record evidence.5 In accordance with 19 CFR 351.205(e), the petitioners have stated the reasons for requesting a postponement of the preliminary determinations, and Commerce finds no compelling reason to deny the request. Therefore, Commerce is postponing the deadline for the preliminary determinations by 50 days (i.e., 190 days after the date on which these investigations were initiated, plus the 40 tolling days), in accordance with section 733(c)(1)(A) of the Act. As a result, Commerce will issue its preliminary determinations no later than June 25, 2019. In accordance with section 735(a)(1) of the Act and 19 CFR 351.210(b)(1), the deadline for the final determinations of these investigations will continue to be 75 days after the date of the preliminary determinations, unless postponed at a later date. This notice is issued and published pursuant to section 733(c)(2) of the Act and 19 CFR 351.205(f)(1). Dated: April 16, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. [FR Doc. 2019–08133 Filed 4–22–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–533–840] Certain Frozen Warmwater Shrimp From India: Preliminary Results of Antidumping Duty Administrative Review; 2017–2018 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that certain frozen warmwater shrimp (shrimp) from India is being, or is likely to be, sold in the United States at less than normal value during the period of review (POR) February 1, 2017, through January 31, 2018. DATES: Applicable April 23, 2019. FOR FURTHER INFORMATION CONTACT: Manuel Rey or Brittany Bauer, 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) 482–5518 or (202) 482–3860, respectively. AGENCY: 5 Id. E:\FR\FM\23APN1.SGM 23APN1

Agencies

[Federal Register Volume 84, Number 78 (Tuesday, April 23, 2019)]
[Notices]
[Pages 16840-16843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08275]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-097 and C-570-098]


Polyester Textured Yarn From the People's Republic of China: 
Preliminary Affirmative Determinations of Critical Circumstances in the 
Antidumping and Countervailing Duty Investigations

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 all imports of 
polyester textured yarn (yarn) from the People's Republic of China 
(China).

DATES: Applicable April 23, 2019.

FOR FURTHER INFORMATION CONTACT: George Ayache, AD/CVD Operations, 
Office VIII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue

[[Page 16841]]

NW, Washington, DC 20230; telephone (202) 482-2623.

SUPPLEMENTARY INFORMATION:

Background

    On October 18, 2018, Commerce received antidumping duty (AD) and 
countervailing duty (CVD) petitions concerning imports of yarn from 
China filed in proper form on behalf of Unifi Manufacturing, Inc. and 
Nan Ya Plastics Corp. America (the petitioners).\1\ On November 19, 
2018, we published the notices of initiation of the AD and CVD 
investigations.\2\
---------------------------------------------------------------------------

    \1\ See the petitioners' letter, ``Polyester Textured Yarn from 
the People's Republic of China and India--Petition for the 
Imposition of Antidumping and Countervailing Duties,'' dated October 
18, 2018 (Petitions).
    \2\ See Polyester Textured Yarn from India and the People's 
Republic of China: Initiation of Less-Than-Fair-Value 
Investigations, 83 FR 58223 (November 19, 2018); see also Polyester 
Textured Yarn from India and the People's Republic of China: 
Initiation of Countervailing Duty Investigations, 83 FR 58232 
(November 19, 2018).
---------------------------------------------------------------------------

    In the AD investigation, Commerce selected Fujian Billion 
Polymerization Fiber Technology Industrial Co., Ltd. (Fujian Billion), 
Fujian Zhengqi High Tech Fiber, and Suzhou Shenghong Fiber Co., Ltd. 
(Suzhou Shenghong) as the respondents for individual examination.\3\ In 
the CVD investigation, Commerce selected Fujian Billion, Jiangsu 
Shenghong Textile Imp & Exp Co., Suzhou Shenghong, and Suzhou Shenghong 
Garmant Development Co.\4\ On April 2, 2019, the petitioners alleged 
that critical circumstances exist with respect to imports of yarn from 
China, pursuant to sections 703(e)(1) and 733(e)(1) of the Tariff Act 
of 1930, as amended (the Act), and 19 CFR 351.206.\5\
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Less-Than-Fair-Value Investigation of 
Polyester Textured Yarn from the People's Republic of China: 
Respondent Selection,'' dated December 11, 2018.
    \4\ See Memorandum, ``Countervailing Duty Investigation of 
Polyester Textured Yarn from the People's Republic of China: 
Respondent Selection,'' dated December 11, 2018.
    \5\ See the petitioners' letter, ``Polyester Textured Yarn from 
the People's Republic of China--Petitioners' Allegation of Critical 
Circumstances,'' dated April 2, 2018 (Critical Circumstances 
Allegation).
---------------------------------------------------------------------------

    In accordance with 19 CFR 351.206(c)(2)(i), if the petitioner 
submits an allegation of critical circumstances more than 20 days 
before the scheduled date of the preliminary determination, Commerce 
must issue a preliminary finding whether there is a reasonable basis to 
believe or suspect that critical circumstances exist by no later than 
the date of the preliminary determination.\6\ In these AD and CVD 
investigations, the petitioners requested that Commerce issue 
preliminary critical circumstances determinations on an expedited 
basis.\7\
---------------------------------------------------------------------------

    \6\ The preliminary determination for the AD investigation is 
currently due no later than June 25, 2019, and the preliminary 
determination for the CVD investigation is currently due no later 
than April 26, 2019.
    \7\ See Critical Circumstances Allegation at 3-5.
---------------------------------------------------------------------------

    Section 703(e)(1) of the Act provides that Commerce, upon receipt 
of a timely allegation of critical circumstances, will preliminarily 
determine that critical circumstances exist in CVD investigations if 
there is a reasonable basis to believe or suspect that: (A) ``the 
alleged countervailable subsidy'' is inconsistent with the Subsidies 
and Countervailing Measures (SCM) Agreement of the World Trade 
Organization; and (B) there have been massive imports of the subject 
merchandise over a relatively short period. Section 733(e)(1) of the 
Act provides that Commerce, upon receipt of a timely allegation of 
critical circumstances, will preliminarily determine that critical 
circumstances exist in AD investigations if there is a reasonable basis 
to believe or suspect that: (A)(i) There is a history of dumping and 
material injury by reason of dumped imports in the United States or 
elsewhere of the subject merchandise, or (ii) the person by whom, or 
for whose account, the merchandise was imported knew or should have 
known that the exporter was selling the subject merchandise at less 
than its fair value and that there was likely to be material injury by 
reason of such sales; and (B) there have been massive imports of the 
subject merchandise over a relatively short period.
    Sections 351.206(h)(2) and (i) of Commerce's regulations provide 
that imports must increase by at least 15 percent during the 
``relatively short period'' to be considered ``massive'' and defines a 
``relatively short period'' as normally being the period beginning on 
the date the proceeding begins (i.e., the date the petition is filed) 
and ending at least three months later. Commerce's regulations also 
provide, however, 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 that earlier 
time.\8\
---------------------------------------------------------------------------

    \8\ See 19 CFR 351.206(i).
---------------------------------------------------------------------------

Critical Circumstances Analysis

Alleged Countervailable Subsidies Are Inconsistent With the SCM 
Agreement

    To determine whether an alleged countervailable subsidy is 
inconsistent with the SCM Agreement, in accordance with section 
703(e)(1)(A) of the Act, Commerce considered the evidence currently on 
the record of the CVD investigation. Specifically, as reflected in the 
initiation checklist, the following subsidy programs, alleged in the 
Petitions and supported by information reasonably available to the 
petitioners, appear to be either export contingent or contingent upon 
the use of domestic goods over imported goods, which would render them 
inconsistent with the SCM Agreement: \9\
---------------------------------------------------------------------------

    \9\ See CVD Initiation Checklist: Polyester Textured Yarn from 
the People's Republic of China, dated November 7, 2018.

 Export Loans from Chinese State-Owned Banks
 Export Seller's Credit
 Export Buyer's Credit
 Export Credit Guarantees
 GOC and Sub-Central Government Subsidies for the Development 
of Famous Brands and China World Top Brands
 SME International Market Exploration/Development Fund
 Export Assistance Grants
 VAT Refunds for FIEs Purchasing Domestically-Produced 
Equipment

    Therefore, Commerce preliminarily determines that there is a 
reasonable basis to believe or suspect that alleged subsidies in the 
CVD investigation are inconsistent with the SCM Agreement.

History of Dumping and Material Injury/Knowledge of Sales Below Fair 
Value and Material Injury

    To determine whether there is a history of dumping pursuant to 
section 733(e)(1)(A)(i) of the Act, Commerce generally considers 
current or previous AD orders on subject merchandise from the country 
in question in the United States and current orders imposed by other 
countries regarding imports of the same merchandise. However, in the 
Critical Circumstances Allegation, the petitioners did not provide 
information on the history of dumping.\10\
---------------------------------------------------------------------------

    \10\ See Critical Circumstances Allegation at 5-7.
---------------------------------------------------------------------------

    To determine whether importers knew or should have known that 
exporters were selling the subject merchandise at less than fair value 
pursuant to section 733(e)(1)(A)(ii) of the Act, we typically consider 
the magnitude of dumping margins, including margins alleged in 
petitions.\11\

[[Page 16842]]

Commerce has found margins of 15 percent or more (for constructed 
export price) to 25 percent or more (for export price) to be sufficient 
for this purpose.\12\ The dumping margins of 74.98 percent and 77.15 
percent alleged in the AD Petition Supplement significantly exceed the 
15 to 25 percent threshold.\13\ Therefore, on that basis, we 
preliminarily conclude importers knew, or should have known, that 
exporters in China were selling at less than fair value.
---------------------------------------------------------------------------

    \11\ See, e.g., Notice of Preliminary Determinations of Critical 
Circumstances: Certain Cold-Rolled Carbon Steel Flat Products from 
Australia, the People's Republic of China, India, the Republic of 
Korea, the Netherlands, and the Russian Federation, 67 FR 19157, 
19158 (April 18, 2002) (unchanged in Notice of Final Determination 
of Sales at Less Than Fair Value: Certain Cold-Rolled Carbon Steel 
Flat Products from Australia, 67 FR 47509 (July 19, 2002), Notice of 
Final Determination of Sales at Less Than Fair Value: Certain Cold-
Rolled Carbon Steel Flat Products from the People's Republic of 
China, 67 FR 62107 (October 3, 2002), Notice of Final Determination 
of Sales at Less Than Fair Value: Certain Cold-Rolled Carbon Steel 
Flat Products from India, 67 FR 47518 (July 19, 2002), Notice of 
Final Determination of Sales at Less Than Fair Value: Certain Cold-
Rolled Carbon Steel Flat Products from Korea, 67 FR 62124 (October 
3, 2002), Notice of Final Determination of Sales at Less Than Fair 
Value and Critical Circumstances: Certain Cold-Rolled Carbon Steel 
Flat Products from The Netherlands, 67 FR 62112 (October 3, 2002), 
Notice of the Final Determination Sales at Less Than Fair Value and 
Critical Circumstances: Certain Cold-Rolled Carbon Steel Flat 
Products from the Russian Federation, 67 FR 62121 (October 3, 
2002)).
    \12\ Id.
    \13\ See the petitioners' letter, ``Polyester Textured Yarn from 
the People's Republic of China--Petitioners' Supplement for Volume 
II Regarding China Antidumping Duties,'' dated October 29, 2018 (AD 
Petition Supplement), at 7 and Exhibit AD-PRC-Supp-5.
---------------------------------------------------------------------------

    To determine whether importers knew, or should have known, that 
there was likely to be material injury caused by reason of such imports 
pursuant section 733(e)(1)(A)(ii) of the Act, Commerce normally will 
look to the preliminary injury determination of the International Trade 
Commission (ITC).\14\ If the ITC finds a reasonable indication of 
material injury to the relevant U.S. industry, Commerce will determine 
that a reasonable basis exists to impute importer knowledge that 
material injury is likely by reason of such imports. In these 
investigations, the ITC found that there is a ``reasonable indication'' 
of material injury to the domestic industry because of the imported 
subject merchandise.\15\ Therefore, the ITC's preliminary injury 
determination in the AD investigation is sufficient to impute importer 
knowledge.
---------------------------------------------------------------------------

    \14\ See, e.g., Antidumping and Countervailing Duty 
Investigations of Certain Softwood Lumber Products from Canada: 
Preliminary Determinations of Critical Circumstances, 82 FR 19219, 
19220 (April 26, 2017) (Softwood Lumber from Canada Preliminary 
Critical Circumstances Determination), unchanged in Certain Softwood 
Lumber Products from Canada: Final Affirmative Determination of 
Sales at Less Than Fair Value and Affirmative Final Determination of 
Critical Circumstances, 82 FR 51806, 51807-08 (November 8, 2017) 
(Softwood Lumber from Canada Final AD Determination).
    \15\ See Polyester Textured Yarn from China and India: 
Investigation Nos. 701-TA-612-613 and 731-1429-1430 (Preliminary), 
83 FR 63532 (December 10, 2018).
---------------------------------------------------------------------------

Massive Imports

    In determining whether there are ``massive imports'' over a 
``relatively short period,'' pursuant to sections 703(e)(1)(B) and 
733(e)(1)(B) of the Act, 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'').\16\ Imports will normally 
be considered massive when imports during the comparison period have 
increased by 15 percent or more compared to imports during the base 
period.\17\
---------------------------------------------------------------------------

    \16\ See Softwood Lumber from Canada Preliminary Critical 
Circumstances Determination, 82 FR at 19220, unchanged in Softwood 
Lumber from Canada Final AD Determination, 82 FR at 51807-08.
    \17\ Id.
---------------------------------------------------------------------------

    Accordingly, to determine preliminarily whether there has been a 
massive surge in imports for each mandatory respondent which provided 
shipment data, Commerce compared the total volume of shipments from 
November 2018 through January 2019, the comparison period (i.e., all 
months for which shipment data was available), with the preceding 
three-month period of August 2018 through October 2018, the base 
period. Regarding the CVD investigation, for ``all others,'' Commerce 
compared Global Trade Atlas (GTA) data for the period November 2018 
through January 2019 with the preceding three-month period of August 
2018 through October 2018,\18\ after subtracting from the GTA data 
shipments reported by the mandatory respondents which provided such 
data. Similarly, regarding the AD investigation, for non-individually 
examined companies requesting separate rate status, we performed the 
same comparison. For those mandatory respondents in either the CVD or 
AD investigation that are not participating in the investigation, we 
preliminarily determine, on the basis of adverse facts available,\19\ 
that there has been a massive surge in imports. Accordingly, based on 
our analysis of information on the record, we preliminarily determine 
that all producers/exporters of yarn from China had massive surges in 
imports.\20\
---------------------------------------------------------------------------

    \18\ Commerce gathered GTA data under the following harmonized 
tariff schedule numbers: 5402.33.3000 and 5402.33.6000.
    \19\ See section 776 of the Act.
    \20\ See Memorandum, ``Polyester Textured Yarn from the People's 
Republic of China: Preliminary Critical Circumstances Calculation,'' 
dated concurrently with this notice.
---------------------------------------------------------------------------

    Based on the criteria and findings discussed above, we 
preliminarily determine in both the AD and CVD investigations that 
critical circumstances exist with respect to all imports of yarn from 
China.

Final Critical Circumstances Determination

    We will issue our final determinations concerning critical 
circumstances when we issue our final CVD and AD determinations. All 
interested parties will have the opportunity to address this 
determination in case briefs to be submitted after the completion of 
the preliminary CVD and AD determinations by a deadline to be 
established at a later date.

ITC Notification

    In accordance with sections 703(f) and 733(f) of the Act, we will 
notify the ITC of these preliminary determinations of critical 
circumstances.

Suspension of Liquidation

    In accordance with section 703(e)(2) of the Act, because we have 
preliminarily found that critical circumstances exist with regard to 
imports from all producers and exporters of yarn from China, if we make 
an affirmative preliminary determination that countervailable subsidies 
have been provided to these same producers/exporters at above de 
minimis rates, we will instruct U.S. Customs and Border Protection 
(CBP) to suspend liquidation of all entries of subject merchandise from 
these producers/exporters that are entered, or withdrawn from warehouse 
for consumption, on or after the date that is 90 days prior to the 
effective date of ``provisional measures'' (e.g., the date of 
publication in the Federal Register of the notice of an affirmative 
preliminary determination that countervailable subsidies have been 
provided at above de minimis rates). At such time, we will also 
instruct CBP to require a cash deposit equal to the estimated 
preliminary subsidy rates reflected in the preliminary determination 
published in the Federal Register. The suspension of liquidation will 
remain in effect until further notice.
    In accordance with section 733(e)(2) of the Act, because we have 
preliminarily found that critical circumstances exist with regard to 
imports from all producers and

[[Page 16843]]

exporters of yarn from China, if we make an affirmative preliminary 
determination that sales at less than fair value have been made by 
these same producers/exporters at above de minimis rates, we will 
instruct CBP to suspend liquidation of all entries of subject 
merchandise from these producers/exporters that are entered, or 
withdrawn from warehouse, for consumption on or after the date that is 
90 days prior to the effective date of ``provisional measures'' (e.g., 
the date of publication in the Federal Register of the notice of an 
affirmative preliminary determination of sales at LTFV at above de 
minimis rates). At such time, we will also instruct CBP to require a 
cash deposit equal to the estimated preliminary dumping margins 
reflected in the preliminary determination published in the Federal 
Register. The suspension of liquidation will remain in effect until 
further notice.
    These determinations are issued and published pursuant to section 
777(i)(1) of the Act and 19 CFR 351.206(c)(2).

    Dated: April 18, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2019-08275 Filed 4-22-19; 8:45 am]
BILLING CODE 3510-DS-P