Polyester Textured Yarn From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 19040-19043 [2019-09065]

Download as PDF 19040 Federal Register / Vol. 84, No. 86 / Friday, May 3, 2019 / Notices estimated duties on this subject merchandise, a cash deposit equal to the subsidy rates listed below.6 Provisional Measures Section 733(d) of the Act states that instructions issued pursuant to an affirmative preliminary determination may not remain in effect for more than four months, except where exporters representing a significant proportion of exports of the subject merchandise request Commerce to extend that fourmonth period to no more than six months. At the request of mandatory respondent, HengTong Casting Co., Ltd., which accounts for a significant proportion of cast iron soil pipe from China, Commerce extended the fourmonth period to six months in this case.7 Commerce published its Preliminary Determination on July 2, 2018. Therefore, the extended period, beginning on the date of publication of the Preliminary Determination, ended on December 29, 2018. Furthermore, section 737(b) of the Act states that definitive duties are to begin on the date of publication of the ITC’s final injury determination. Therefore, in accordance with section 733(d) of the Act and our practice, we will instruct CBP to terminate the suspension of liquidation and to liquidate, without regard to countervailing duties, unliquidated entries of cast iron soil pipe from China entered, or withdrawn from warehouse, for consumption on or after December 29, 2018, the date the provisional measures expired, through the day preceding the date of publication of the ITC’s final injury determination in the Federal Register. Suspension of liquidation will resume on the date of publicationof the ITC’s final determination in the Federal Register. Estimated Subsidy Margins Subsidy rate (percent) Exporter/producer Kingway Pipe Co., Ltd ......................................................................................................................................................................... Yuncheng Jiangxian Economic Development Zone HengTong Casting Co., Ltd 8 ............................................................................ All-Others ............................................................................................................................................................................................. Notifications to Interested Parties This notice constitutes the countervailing duty order with respect to cast iron soil pipe from China pursuant to section 706(a) of the Act. Interested parties can find a list of countervailing duty orders currently in effect at https://enforcement.trade.gov/ stats/iastats1.html. This order is issued and published in accordance with section 706(a) of the Act and 19 CFR 351.211(b). Dated: April 26, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. [FR Doc. 2019–09067 Filed 5–2–19; 8:45 am] amozie on DSK9F9SC42PROD with NOTICES Appendix BILLING CODE 3510–DS–P Scope of the Order The merchandise covered by this order is cast iron soil pipe, whether finished or unfinished, regardless of industry or proprietary specifications, and regardless of wall thickness, length, diameter, surface finish, end finish, or stenciling. The scope of this order includes, but is not limited to, both hubless and hub and spigot cast iron soil pipe. Cast iron soil pipe is nonmalleable iron pipe of various designs and sizes. Cast iron soil pipe is generally distinguished from other types of nonmalleable cast iron pipe by the manner in which it is connected to cast iron soil pipe fittings. Cast iron soil pipe is classified into two major types—hubless and hub and spigot. Hubless cast iron soil pipe is manufactured without a hub, generally in compliance with Cast Iron Soil Pipe Institute (CISPI) 6 See section 706(a)(3) of the Act. Preliminary Determination, 83 FR at 44569. 8 Commerce initiated this proceeding on two respondents ‘‘Jiangxian Economic Development Zone Heng (Jiangxian) and Kingway Pipe Co Ltd (Kingway)’’ based on CBP data. We have accepted 7 See VerDate Sep<11>2014 specification 301 and/or American Society for Testing and Materials (ASTM) specification A888, including any revisions to those specifications. Hub and spigot pipe has one or more hubs into which the spigot (plain end) of a fitting is inserted. All pipe meeting the physical description set forth above is covered by the scope of this order, whether or not produced according to a particular standard. The subject imports are currently classified in subheading 7303.00.0030 of the Harmonized Tariff Schedule of the United States (HTSUS): Cast iron soil pipe. The HTSUS subheading and specifications are provided for convenience and customs purposes only; the written description of the scope of this order is dispositive. 16:41 May 02, 2019 Jkt 247001 DEPARTMENT OF COMMERCE International Trade Administration Polyester Textured Yarn From the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines AGENCY: HengTong’s request to reflect its name as ‘‘Yucheng Jiangxian Economic Development Zone HengTong Casting Co., Ltd. (HengTong),’’ which is the name we have used in this proceeding. 1 See Polyester Textured Yarn from India and the People’s Republic of China: Initiation of Frm 00011 that countervailable subsidies are being provided to producers and exporters of polyester textured yarn (yarn) from the People’s Republic of China (China) for the period of investigation (POI) January 1, 2017 through December 31, 2017. Interested parties are invited to comment on this preliminary determination. DATES: Effective May 3, 2019. Bob Palmer or Joseph Dowling, AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–9068 or (202) 482–1646, respectively. FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: Background [C–570–098] PO 00000 109.27 14.69 14.69 Fmt 4703 Sfmt 4703 This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on November 19, 2018.1 On February 1, 2019, pursuant to a request from the Unifi Manufacturing, Inc. and Nan Ya Plastics Corporation (the petitioners),2 Commerce postponed the preliminary determination of this Countervailing Duty Investigations, 83 FR 58232 (November 19, 2018) (Initiation Notice). 2 See Letter, ‘‘Countervailing Duty Investigation of Polyester Textured Yarn from China: Petitioners’ Request to Postpone Preliminary Determination,’’ dated December 10, 2018. E:\FR\FM\03MYN1.SGM 03MYN1 Federal Register / Vol. 84, No. 86 / Friday, May 3, 2019 / Notices amozie on DSK9F9SC42PROD with NOTICES investigation to March 18, 2019.3 On April 18, 2019, Commerce issued its preliminary critical circumstances determination determining that critical circumstances exist for imports from all producers and exporters of the subject merchandise from China.4 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, 2019.5 If the new deadline falls on a non-business day, in accordance with Commerce’s practice, the deadline will become the next business day. The revised deadline for the preliminary determination is now April 26, 2019. For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.6 A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov, and is available to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/ frn/. The signed and electronic versions 3 See Polyester Textured Yarn from India and the People’s Republic of China: Postponement of Preliminary Determinations in the Countervailing Duty Investigations, 84 FR 1062 (February 1, 2019). 4 See Polyester Textured Yarn from the People’s Republic of China: Preliminary Affirmative Determination of Critical Circumstances in the Antidumping and Countervailing Duty Investigations, 84 FR 16840 (April 23, 2019) (Preliminary Affirmative Critical Circumstances Determination). 5 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 this segment of the proceeding have been extended by 40 days. 6 See Memorandum, ‘‘Decision Memorandum for the Preliminary Determination of the Countervailing Duty Investigation of Polyester Textured Yarn from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). VerDate Sep<11>2014 16:41 May 02, 2019 Jkt 247001 of the Preliminary Decision Memorandum are identical in content. Scope of the Investigation The product covered by this investigation is polyester textured yarn from China. For a complete description of the scope of this investigation, see Appendix I and ‘‘Scope Comments’’ section below. Scope Comments In accordance with the preamble to Commerce’s regulations,7 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).8 Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice. For a summary of the product coverage comments and responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum.9 Commerce is preliminarily modifying the scope language as it appeared in the Initiation Notice to exclude bulk continuous filament yarn. See revised scope in Appendix I. Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that confers a benefit to the recipient, and that the subsidy is specific.10 In making these findings, Commerce relied, in part, on facts available and, because it finds that certain respondents did not act to the best of their ability to respond to Commerce’s requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.11 For further information, see ‘‘Use of Facts 7 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 8 See Initiation Notice, 83 FR at 58233. 9 See Memorandum, ‘‘Polyester Textured Yarn from India and the People’s Republic of China: Scope Comments Decision Memorandum for the Preliminary Determinations,’’ dated concurrently with this notice (Preliminary Scope Decision Memorandum). 10 See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. 11 See sections 776(a) and (b) of the Act. PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 19041 Otherwise Available and Adverse Inferences’’ in the Preliminary Decision Memorandum. For a full description of the methodology underlying our preliminary conclusions, see the Preliminary Decision Memorandum. Alignment In accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final countervailing duty determination in this investigation with the final determination in the companion antidumping duty investigation of yarn from China, based on a request made by the petitioners.12 Consequently, the final countervailing duty determination will be issued on the same date as the final antidumping determination, which is currently scheduled to be issued no later than September 9, 2019, unless postponed. All-Others Rate Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and de minimis rates and any rates based entirely on facts otherwise available, as outlined under section 776 of the Act. In this investigation, Commerce preliminarily assigned rates based entirely on facts available for Suzhou Shenghong Fiber Co., Ltd. and its crossowned affiliates, and Suzhou Shenghong Garmant Development Co. Therefore, the only rate that is not zero, de minimis or based entirely on facts otherwise available is the rate calculated for Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. (Fujian Billion). Consequently, the rate calculated for Fujian Billion is also assigned as the rate for all other producers and exporters. Preliminary Determination Commerce preliminarily determines that the following estimated countervailable subsidy rates exist: 12 See Petitioners’ Letter, ‘‘Polyester Textured Yarn from China and India—Petitioners’ Request to Align the Department’s Final Determinations,’’ dated March 29, 2019. E:\FR\FM\03MYN1.SGM 03MYN1 19042 Federal Register / Vol. 84, No. 86 / Friday, May 3, 2019 / Notices Subsidy rate (percent) Company Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd 13 ................................................................................................. Suzhou Shenghong Fiber Co., Ltd 14 .................................................................................................................................................. Suzhou Shenghong Garmant Development Co .................................................................................................................................. All Others ............................................................................................................................................................................................. Suspension of Liquidation amozie on DSK9F9SC42PROD with NOTICES In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. Section 703(e)(2) of the Act provides that, given an affirmative determination of critical circumstances,15 any suspension of liquidation shall apply to unliquidated entries of merchandise entered, or withdrawn from warehouse, for consumption on or after the later of (a) the date which is 90 days before the date on which the suspension of liquidation was first ordered, or (b) the date on which the notice of initiation of the investigation was published. Commerce preliminarily found that critical circumstances exist for all imports of subject merchandise from China. In accordance with section 703(e)(2)(A) of the Act, the suspension of liquidation shall apply to unliquidated entries from all exporters and producers of the subject merchandise from China that were entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the publication of this notice. 13 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Fujian Billion: (1) Billion Development (Hong Kong) Limited and (2) Billion Industrial Investment Limited. 14 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Suzhou Shenghong Fiber Co., Ltd.: (1) Jiangsu Zhonglu Technology Development Co., Ltd., (2) Jiangsu Guowang High-Technique Fiber Co., Ltd., (3) Jiangsu Shenghong Science and Technology Co., Ltd., (4) Jiangsu Honggang Petrochemical Co., Ltd., (5) Shenghong Group Co., Ltd., (6) Shenghong Holding Group, Co., Ltd., (7) Shenghong (Suzhou) Group Co., Ltd., (8) Jiangsu Shenghong Investment Development Co., Ltd., (9) Jiangsu Shenghong New Material Co., Ltd., and (10) Jiangsu Shenghong Textile Imp & Exp Co. and its successor Jiangsu Huahui Import and Export Co., Ltd. 15 See Preliminary Affirmative Critical Circumstances Determination, 84 FR at 16842. VerDate Sep<11>2014 16:41 May 02, 2019 Jkt 247001 Disclosure Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary determination within five days of its public announcement, or if there is no public announcement, within five days of the date of this notice in accordance with 19 CFR 351.224(b). Verification As provided in section 782(i)(1) of the Act, Commerce intends to verify the information relied upon in making its final determination. Public Comment As stated in the Preliminary Scope Decision Memorandum, all interested parties will have the opportunity to submit case and rebuttal briefs on the preliminary scope determination.16 The deadline for these comments will be established in the Federal Register notice regarding the preliminary determination of the companion antidumping duty investigation of yarn from China to be issued at a later date. Case briefs or other written comments, not pertaining to scope issues, may be submitted to the Assistant Secretary for Enforcement and Compliance no later than seven days after the date on which the last verification report is issued in this investigation. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than five days after the deadline date for case briefs.17 Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this investigation are encouraged to submit with each argument: (1) A statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities. Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, within 30 days after the date of publication of this notice. Requests should contain the party’s name, 16 See Preliminary Scope Decision Memorandum. 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). 17 See PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 32.04 459.98 459.98 32.04 address, and telephone number, the number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at the U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time and date to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date. Parties are reminded that briefs and hearing requests are to be filed electronically using ACCESS and that electronically filed documents must be received successfully in their entirety by 5 p.m. Eastern Time on the due date. International Trade Commission Notification In accordance with section 703(f) of the Act, Commerce will notify the International Trade Commission (ITC) of its determination. Pursuant to section 705(b)(2) of the Act, if the final determination is affirmative, the ITC will make its final injury determination before the later of 120 days after the date of this preliminary determination or 45 days after the final determination. Notification to Interested Parties This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act and 19 CFR 351.205(c). Dated: April 26, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigation The merchandise covered by this investigation, 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 E:\FR\FM\03MYN1.SGM 03MYN1 Federal Register / Vol. 84, No. 86 / Friday, May 3, 2019 / Notices method, texturing method, or packing method (such as spindles, tubes, or beams). Excluded from the scope of the investigation is bulk continuous filament yarn that: (a) Is polyester synthetic multifilament yarn; (b) has denier size ranges of 900 and above; (c) has turns per meter of 40 and above; and (d) has a maximum shrinkage of 2.5 percent. The merchandise subject to this investigation 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. Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Preliminary Determination of Critical Circumstances IV. Injury Test V. Application of the CVD Law to Imports From China VI. Diversification of China’s Economy VII. Use of Facts Otherwise Available and Adverse Inferences VIII. Subsidies Valuation IX. Benchmarks and Interest Rates X. Analysis of Programs XI. Conclusion [FR Doc. 2019–09065 Filed 5–2–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–900] Diamond Sawblades and Parts Thereof From the People’s Republic of China: Initiation of Anti-Circumvention Inquiry Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: In response to a request from Diamond Sawblades Manufacturers’ Coalition (the petitioner), the Department of Commerce (Commerce) is initiating an anti-circumvention inquiry to determine whether certain imports of diamond sawblades and parts thereof (diamond sawblades) comprised of cores and segments produced in the People’s Republic of China (China) and joined into finished diamond sawblades in, and exported from, Canada are circumventing the antidumping duty order on diamond sawblades from China. DATES: Effective May 3, 2019. FOR FURTHER INFORMATION CONTACT: Yang Jin Chun, AD/CVD Operations Office I, Enforcement and Compliance, International Trade Administration, amozie on DSK9F9SC42PROD with NOTICES AGENCY: VerDate Sep<11>2014 16:41 May 02, 2019 Jkt 247001 U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–5760. SUPPLEMENTAL INFORMATION: Background On November 4, 2009, Commerce published the antidumping duty order on diamond sawblades from China.1 On December 20, 2018, the petitioner filed a request for a circumvention ruling, requesting that Commerce issue a determination of circumvention and suspend liquidation of certain diamond sawblades exported from third countries.2 Specifically, the petitioner claims that a Canadian company, Protech Diamond Tools Inc. (Protech), is circumventing the antidumping duty order. Scope of the Order The products covered by the order are all finished circular sawblades, whether slotted or not, with a working part that is comprised of a diamond segment or segments, and parts thereof, regardless of specification or size, except as specifically excluded below. Within the scope of the order are semi-finished diamond sawblades, including diamond sawblade cores and diamond sawblade segments. Diamond sawblade cores are circular steel plates, whether or not attached to non-steel plates, with slots. Diamond sawblade cores are manufactured principally, but not exclusively, from alloy steel. A diamond sawblade segment consists of a mixture of diamonds (whether natural or synthetic, and regardless of the quantity of diamonds) and metal powders (including, but not limited to, iron, cobalt, nickel, tungsten carbide) that are formed together into a solid shape (from generally, but not limited to, a heating and pressing process). Sawblades with diamonds directly attached to the core with a resin or electroplated bond, which thereby do not contain a diamond segment, are not included within the scope of the order. Diamond sawblades and/or sawblade cores with a thickness of less than 0.025 inches, or with a thickness greater than 1.1 inches, are excluded from the scope of the order. Circular steel plates that have a cutting edge of non-diamond material, such as external teeth that protrude from the outer diameter of the plate, whether or not finished, are 1 See Diamond Sawblades and Parts Thereof from the People’s Republic of China and the Republic of Korea: Antidumping Duty Orders, 74 FR 57145 (November 4, 2009). The effective date of this antidumping duty order was January 23, 2009. 2 See the petitioner’s circumvention ruling request dated December 20, 2018 (the petitioner’s circumvention ruling request). PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 19043 excluded from the scope of the order. Diamond sawblade cores with a Rockwell C hardness of less than 25 are excluded from the scope of the order. Diamond sawblades and/or diamond segment(s) with diamonds that predominantly have a mesh size number greater than 240 (such as 250 or 260) are excluded from the scope of the order. Merchandise subject to the order is typically imported under heading 8202.39.00.00 of the Harmonized Tariff Schedule of the United States (HTSUS). When packaged together as a set for retail sale with an item that is separately classified under headings 8202 to 8205 of the HTSUS, diamond sawblades or parts thereof may be imported under heading 8206.00.00.00 of the HTSUS. On October 11, 2011, Commerce included the 6804.21.00.00 HTSUS classification number to the customs case reference file, pursuant to a request by U.S. Customs and Border Protection.3 Pursuant to requests by CBP, Commerce included to the customs case reference file the following HTSUS classification numbers: 8202.39.0040 and 8202.39.0070 on January 22, 2015, and 6804.21.0010 and 6804.21.0080 on January 26, 2015.4 The tariff classification is provided for convenience and customs purposes; however, the written description of the scope of the order is dispositive. Merchandise Subject to the AntiCircumvention Inquiry This anti-circumvention inquiry covers diamond sawblades produced in Canada using cores and segments of Chinese origin and exported from Canada to the United States by Protech. If we receive additional evidence regarding potential circumvention of the order on diamond sawblades from China by other companies in Canada, we will consider expanding the scope of this inquiry at that time. Initiation of Anti-Circumvention Inquiry Section 781(b)(1) of the Tariff Act of 1930, as amended (the Act), provides that Commerce may find circumvention of an antidumping or countervailing duty order if: (A) Merchandise imported into the United States is of the same class or kind as any merchandise produced in a foreign country that is the 3 See Diamond Sawblades and Parts Thereof from the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review, 76 FR 76128 (December 6, 2011). 4 See Diamond Sawblades and Parts Thereof from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review; 2016– 2017, 83 FR 64331 (December 14, 2018) and accompanying Issues and Decision Memorandum (IDM) at 3. E:\FR\FM\03MYN1.SGM 03MYN1

Agencies

[Federal Register Volume 84, Number 86 (Friday, May 3, 2019)]
[Notices]
[Pages 19040-19043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09065]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-098]


Polyester Textured Yarn From the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination With Final Antidumping Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of polyester textured yarn (yarn) from the People's Republic 
of China (China) for the period of investigation (POI) January 1, 2017 
through December 31, 2017. Interested parties are invited to comment on 
this preliminary determination.

DATES: Effective May 3, 2019.

FOR FURTHER INFORMATION CONTACT: Bob Palmer or Joseph Dowling, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-9068 or (202) 
482-1646, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on November 
19, 2018.\1\
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    \1\ See Polyester Textured Yarn from India and the People's 
Republic of China: Initiation of Countervailing Duty Investigations, 
83 FR 58232 (November 19, 2018) (Initiation Notice).
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    On February 1, 2019, pursuant to a request from the Unifi 
Manufacturing, Inc. and Nan Ya Plastics Corporation (the 
petitioners),\2\ Commerce postponed the preliminary determination of 
this
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    \2\ See Letter, ``Countervailing Duty Investigation of Polyester 
Textured Yarn from China: Petitioners' Request to Postpone 
Preliminary Determination,'' dated December 10, 2018.

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[[Page 19041]]

investigation to March 18, 2019.\3\ On April 18, 2019, Commerce issued 
its preliminary critical circumstances determination determining that 
critical circumstances exist for imports from all producers and 
exporters of the subject merchandise from China.\4\ 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.\5\ If the new deadline falls on a non-
business day, in accordance with Commerce's practice, the deadline will 
become the next business day. The revised deadline for the preliminary 
determination is now April 26, 2019.
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    \3\ See Polyester Textured Yarn from India and the People's 
Republic of China: Postponement of Preliminary Determinations in the 
Countervailing Duty Investigations, 84 FR 1062 (February 1, 2019).
    \4\ See Polyester Textured Yarn from the People's Republic of 
China: Preliminary Affirmative Determination of Critical 
Circumstances in the Antidumping and Countervailing Duty 
Investigations, 84 FR 16840 (April 23, 2019) (Preliminary 
Affirmative Critical Circumstances Determination).
    \5\ 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 this segment of the proceeding 
have been extended by 40 days.
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\6\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov, and is available to all 
parties in the Central Records Unit, Room B8024 of the main Department 
of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Preliminary Decision Memorandum are identical in content.
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    \6\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Polyester 
Textured Yarn from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is polyester textured 
yarn from China. For a complete description of the scope of this 
investigation, see Appendix I and ``Scope Comments'' section below.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\7\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\8\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\9\ 
Commerce is preliminarily modifying the scope language as it appeared 
in the Initiation Notice to exclude bulk continuous filament yarn. See 
revised scope in Appendix I.
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    \7\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \8\ See Initiation Notice, 83 FR at 58233.
    \9\ See Memorandum, ``Polyester Textured Yarn from India and the 
People's Republic of China: Scope Comments Decision Memorandum for 
the Preliminary Determinations,'' dated concurrently with this 
notice (Preliminary Scope Decision Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that 
confers a benefit to the recipient, and that the subsidy is 
specific.\10\ In making these findings, Commerce relied, in part, on 
facts available and, because it finds that certain respondents did not 
act to the best of their ability to respond to Commerce's requests for 
information, it drew an adverse inference where appropriate in 
selecting from among the facts otherwise available.\11\ For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' in the Preliminary Decision Memorandum. For a full 
description of the methodology underlying our preliminary conclusions, 
see the Preliminary Decision Memorandum.
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    \10\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
    \11\ See sections 776(a) and (b) of the Act.
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Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), Commerce is aligning the final countervailing duty 
determination in this investigation with the final determination in the 
companion antidumping duty investigation of yarn from China, based on a 
request made by the petitioners.\12\ Consequently, the final 
countervailing duty determination will be issued on the same date as 
the final antidumping determination, which is currently scheduled to be 
issued no later than September 9, 2019, unless postponed.
---------------------------------------------------------------------------

    \12\ See Petitioners' Letter, ``Polyester Textured Yarn from 
China and India--Petitioners' Request to Align the Department's 
Final Determinations,'' dated March 29, 2019.
---------------------------------------------------------------------------

All-Others Rate

    Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that 
in the preliminary determination, Commerce shall determine an estimated 
all-others rate for companies not individually examined. This rate 
shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any zero and de minimis rates and any rates based entirely on 
facts otherwise available, as outlined under section 776 of the Act.
    In this investigation, Commerce preliminarily assigned rates based 
entirely on facts available for Suzhou Shenghong Fiber Co., Ltd. and 
its cross-owned affiliates, and Suzhou Shenghong Garmant Development 
Co. Therefore, the only rate that is not zero, de minimis or based 
entirely on facts otherwise available is the rate calculated for Fujian 
Billion Polymerization Fiber Technology Industrial Co., Ltd. (Fujian 
Billion). Consequently, the rate calculated for Fujian Billion is also 
assigned as the rate for all other producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

[[Page 19042]]



------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Fujian Billion Polymerization Fiber Technology                     32.04
 Industrial Co., Ltd \13\...............................
Suzhou Shenghong Fiber Co., Ltd \14\....................          459.98
Suzhou Shenghong Garmant Development Co.................          459.98
All Others..............................................           32.04
------------------------------------------------------------------------

Suspension of Liquidation
---------------------------------------------------------------------------

    \13\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Fujian Billion: (1) Billion Development (Hong Kong) Limited and (2) 
Billion Industrial Investment Limited.
    \14\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Suzhou Shenghong Fiber Co., Ltd.: (1) Jiangsu Zhonglu Technology 
Development Co., Ltd., (2) Jiangsu Guowang High-Technique Fiber Co., 
Ltd., (3) Jiangsu Shenghong Science and Technology Co., Ltd., (4) 
Jiangsu Honggang Petrochemical Co., Ltd., (5) Shenghong Group Co., 
Ltd., (6) Shenghong Holding Group, Co., Ltd., (7) Shenghong (Suzhou) 
Group Co., Ltd., (8) Jiangsu Shenghong Investment Development Co., 
Ltd., (9) Jiangsu Shenghong New Material Co., Ltd., and (10) Jiangsu 
Shenghong Textile Imp & Exp Co. and its successor Jiangsu Huahui 
Import and Export Co., Ltd.
---------------------------------------------------------------------------

    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances,\15\ any suspension of 
liquidation shall apply to unliquidated entries of merchandise entered, 
or withdrawn from warehouse, for consumption on or after the later of 
(a) the date which is 90 days before the date on which the suspension 
of liquidation was first ordered, or (b) the date on which the notice 
of initiation of the investigation was published. Commerce 
preliminarily found that critical circumstances exist for all imports 
of subject merchandise from China. In accordance with section 
703(e)(2)(A) of the Act, the suspension of liquidation shall apply to 
unliquidated entries from all exporters and producers of the subject 
merchandise from China that were entered, or withdrawn from warehouse, 
for consumption on or after the date which is 90 days before the 
publication of this notice.
---------------------------------------------------------------------------

    \15\ See Preliminary Affirmative Critical Circumstances 
Determination, 84 FR at 16842.
---------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    As stated in the Preliminary Scope Decision Memorandum, all 
interested parties will have the opportunity to submit case and 
rebuttal briefs on the preliminary scope determination.\16\ The 
deadline for these comments will be established in the Federal Register 
notice regarding the preliminary determination of the companion 
antidumping duty investigation of yarn from China to be issued at a 
later date.
---------------------------------------------------------------------------

    \16\ See Preliminary Scope Decision Memorandum.
---------------------------------------------------------------------------

    Case briefs or other written comments, not pertaining to scope 
issues, may be submitted to the Assistant Secretary for Enforcement and 
Compliance no later than seven days after the date on which the last 
verification report is issued in this investigation. Rebuttal briefs, 
limited to issues raised in case briefs, may be submitted no later than 
five days after the deadline date for case briefs.\17\ Pursuant to 19 
CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or 
rebuttal briefs in this investigation are encouraged to submit with 
each argument: (1) A statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.
---------------------------------------------------------------------------

    \17\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. Pursuant 
to section 705(b)(2) of the Act, if the final determination is 
affirmative, the ITC will make its final injury determination before 
the later of 120 days after the date of this preliminary determination 
or 45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: April 26, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation, 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

[[Page 19043]]

method, texturing method, or packing method (such as spindles, 
tubes, or beams).
    Excluded from the scope of the investigation is bulk continuous 
filament yarn that: (a) Is polyester synthetic multifilament yarn; 
(b) has denier size ranges of 900 and above; (c) has turns per meter 
of 40 and above; and (d) has a maximum shrinkage of 2.5 percent.
    The merchandise subject to this investigation 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.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Preliminary Determination of Critical Circumstances
IV. Injury Test
V. Application of the CVD Law to Imports From China
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Conclusion

 [FR Doc. 2019-09065 Filed 5-2-19; 8:45 am]
 BILLING CODE 3510-DS-P
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