Certain Quartz Surface Products From the People's Republic of China: Final Affirmative Countervailing Duty Determination, and Final Affirmative Determination of Critical Circumstances, 23760-23763 [2019-10799]

Download as PDF 23760 Federal Register / Vol. 84, No. 100 / Thursday, May 23, 2019 / Notices Production under FTZ procedures could exempt BMS from customs duty payments on the foreign-status materials/components used in export production. On its domestic sales, for the foreign-status material/component noted below and in the existing scope of authority, BMS would be able to choose the duty rates during customs entry procedures that apply to pegbelfermin in measured and finished dosages (duty-free). BMS would be able to avoid duty on foreign-status components which become scrap/waste. Customs duties also could possibly be deferred or reduced on foreign-status production equipment. The material/component sourced from abroad is pegbelfermin—active pharmaceutical ingredient (duty-free). Public comment is invited from interested parties. Submissions shall be addressed to the Board’s Executive Secretary and sent to: ftz@trade.gov. The closing period for their receipt is July 2, 2019. A copy of the notification will be available for public inspection in the ‘‘Reading Room’’ section of the Board’s website, which is accessible via www.trade.gov/ftz. For further information, contact Christopher Wedderburn at Chris.Wedderburn@trade.gov or (202) 482–1963. Dated: May 17, 2019. Andrew McGilvray, Executive Secretary. DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [B–77–2018] Foreign-Trade Zone (FTZ) 168—Dallas/ Fort Worth, Texas, Authorization of Production Activity, Gulfstream Aerospace Corporation (Disassembly of Aircraft), Dallas, Texas khammond on DSKBBV9HB2PROD with NOTICES [FR Doc. 2019–10806 Filed 5–22–19; 8:45 am] On December 7, 2018, the Metroplex International Trade Development Corporation, grantee of FTZ 168, submitted a notification of proposed production activity to the FTZ Board on behalf of Gulfstream Aerospace Corporation, within Subzone168E, in Dallas, Texas. The notification was processed in accordance with the regulations of the FTZ Board (15 CFR part 400), including notice in the Federal Register inviting public comment (83 FR 64517–64518, December 17, 2018). On May 16, 2019, the applicant was notified of the FTZ Jkt 247001 DEPARTMENT OF COMMERCE International Trade Administration [C–570–085] Certain Quartz Surface Products From the People’s Republic of China: Final Affirmative Countervailing Duty Determination, and Final Affirmative Determination of Critical Circumstances BILLING CODE 3510–DS–P Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of certain quartz surface products (quartz surface products) from the People’s Republic of China (China). DATES: Applicable May 23, 2019. FOR FURTHER INFORMATION CONTACT: Darla Brown or Joshua Tucker, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1791 or (202) 482–2044, respectively. AGENCY: DEPARTMENT OF COMMERCE International Trade Administration [C–489–832] Carbon and Alloy Steel Wire Rod From Turkey: Correction to Notice of Opportunity To Request Administrative Review Enforcement and Compliance, International Trade Administration, Department of Commerce. AGENCY: FOR FURTHER INFORMATION CONTACT: Brenda E. Waters, AD/CVD Operations, Customs Liaison Unit, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4735. Background BILLING CODE 3510–DS–P 16:40 May 22, 2019 Dated: May 16, 2019. Andrew McGilvray, Executive Secretary. SUPPLEMENTARY INFORMATION: [FR Doc. 2019–10805 Filed 5–22–19; 8:45 am] VerDate Sep<11>2014 Board’s decision that no further review of the activity is warranted at this time. The production activity described in the notification was authorized, subject to the FTZ Act and the FTZ Board’s regulations, including Section 400.14. On May 1, 2019, Commerce published its notification to parties of the opportunity to request an administrative review of countervailing duty orders and inadvertently omitted Carbon and Alloy Steel Wire Rod from Turkey (C– 489–832), POR 9/5/2017–12/31/2018. See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity To Request Administrative Review, 84 FR 18479 (May 1, 2019). This notice serves as a correction to include the countervailing duty order Carbon and Alloy Steel Wire Rod from Turkey (C–489–832) administrative review in the referenced notice. Dated: May 16, 2019. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. [FR Doc. 2019–10804 Filed 5–22–19; 8:45 am] BILLING CODE 3510–DS–P PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 SUPPLEMENTARY INFORMATION: Background The petitioner in this investigation is Cambria Company, LLC. In addition to the Government of China (GOC), the mandatory respondents in this investigation are Fasa Industrial Corporation Limited (Fasa Industrial), Foshan Hero Stone Co., Ltd. (Hero Stone), and Foshan Yixin Stone Co., Ltd. (Foshan Yixin). The events that occurred since Commerce published the Preliminary Determination 1 on September 21, 2018; the post-preliminary analysis 2 on November 6, 2018; and the Preliminary Critical Circumstances Determination 3 on November 15, 2018, are discussed in the Issues and Decision Memorandum, 1 See Certain Quartz Surface Products from the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination with Final Antidumping Duty Determination, 83 FR 47881 (September 21, 2018) (Preliminary Determination), and accompanying Preliminary Decision Memorandum. 2 See Memorandum, ‘‘Post-Preliminary Analysis of Countervailing Duty Investigation: Certain Quartz Surface Products from the People’s Republic of China,’’ dated November 6, 2018. 3 See Certain Quartz Surface Products from the People’s Republic of China: Preliminary Affirmative Determination of Critical Circumstances, in Part, in the Countervailing Duty Investigation, 83 FR 57419 (November 15, 2018) (Preliminary Critical Circumstances Determination). E:\FR\FM\23MYN1.SGM 23MYN1 Federal Register / Vol. 84, No. 100 / Thursday, May 23, 2019 / Notices which is hereby adopted by this notice.4 The Issues and Decision Memorandum also details the changes we made since the Preliminary Determination to the subsidy rates calculated for the mandatory respondents and all other producers/exporters. The Issues and 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 http:// 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 Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/ frn/index.html. The signed Issues and Decision Memorandum and the electronic version of the Issues and Decision Memorandum are identical in content. 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 The revised deadline for the final determination of this investigation is now May 14, 2019. Period of Investigation The period of investigation is January 1, 2017, through December 31, 2017. Scope of the Investigation The products covered by this investigation are quartz surface products from China. For a complete description of the scope of the investigation, see Appendix I. khammond on DSKBBV9HB2PROD with NOTICES Scope Comments During the course of this investigation and the concurrent less-than-fair-value (LTFV) investigation of quartz surface products from China, Commerce received scope comments from interested parties. Commerce issued a Preliminary Scope Decision Memorandum to address these 4 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Certain Quartz Surface Products from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). 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. VerDate Sep<11>2014 16:40 May 22, 2019 Jkt 247001 comments and set aside a period of time for parties to address scope issues in scope case and rebuttal briefs.6 We received comments from interested parties on the Preliminary Scope Decision Memorandum, which we addressed in the Final Scope Decision Memorandum.7 In addition, on February 14, 2019, the petitioner submitted a proposed clarification to the scope of this and the concurrent LTFV investigation.8 In response to the petitioner’s proposed scope clarification, Commerce established a separate scope briefing schedule and received case and rebuttal briefs regarding the proposed clarification, which we addressed in the Proposed Scope Clarification Decision Memorandum.9 As a result, for this final determination, we made certain changes to the scope of these investigations from that published in the Preliminary Determination.10 See Appendix I. Final Affirmative Determination of Critical Circumstances In the Preliminary Critical Circumstances Determination, Commerce preliminarily determined, pursuant to section 703(e)(1) of the Tariff Act of 1930, as amended (the Act), that critical circumstances exist for Fasa Industrial and Hero Stone, but not for Foshan Yixin or the companies covered by the all-others rate. For this final determination, we continue to find that critical circumstances exist for Fasa Industrial and Hero Stone pursuant to section 705(a)(2) of the Act. Moreover, we now find that Foshan Yixin and its unaffiliated suppliers, Foshan Nanhai Julang Quartz Co. (Foshan Nanhai) and Qinguan Yuefeng Decoration Material Co. (Qinguan Yuefeng), as well as the companies covered by the all-others rate received export-contingent countervailable subsidies during the POI through the Export Buyer’s Credit program that are inconsistent with the 6 See Memorandum, ‘‘Certain Quartz Surface Products from the People’s Republic of China: Scope Comments Decision Memorandum for the Preliminary Determination,’’ dated September 14, 2018 (Preliminary Scope Decision Memorandum). 7 See Memorandum, ‘‘Certain Quartz Surface Products from the People’s Republic of China: Final Scope Comments Decision Memorandum,’’ dated May 10, 2019 (Final Scope Decision Memorandum). 8 See Petitioner’s Letter, ‘‘Certain Quartz Surface Products from the People’s Republic of China: Request to Extend Deadline to Submit Factual Information,’’ dated February 14, 2019. 9 See Memorandum, ‘‘Certain Quartz Surface Products from the People’s Republic of China: Proposed Scope Clarification Decision Memorandum,’’ dated concurrently with this notice (Proposed Scope Clarification Memorandum). 10 This scope modification will not apply to merchandise entered prior to the publication of this notice in the Federal Register. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 23761 Subsidies and Countervailing Measures Agreement and had massive imports of the subject merchandise over a relatively short period. Therefore, in accordance with section 705(a)(2) of the Act, we also find that critical circumstances exist with respect to Foshan Yixin, Foshan Nanhai, Qinguan Yuefeng, and the companies covered by the all-others rate. For the analysis of critical circumstances for this final determination, see the Issues and Decision Memorandum at Comment 10. Analysis of Subsidy Programs and Comments Received In the Issues and Decision Memorandum, we address the subsidy programs under investigation and all issues raised in parties’ case and rebuttal briefs, other than those issues related to scope. A list of the issues that parties raised, and to which we responded in the Issues and Decision Memorandum, is attached to this notice as Appendix II. Methodology Commerce conducted this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient, and that the subsidy is specific.11 For a full description of the methodology underlying our final determination, see the Issues and Decision Memorandum. Verification As provided in section 782(i) of the Act, Commerce verified the subsidy information reported by Foshan Yixin. We used standard verification procedures, including an examination of relevant accounting records and original source documents provided by the respondent.12 Changes Since the Preliminary Determination In addition to now finding critical circumstances for Foshan Yixin and companies covered by the all-others rate, based on our review and analysis of the comments received from parties and corrections presented at verification, we made certain changes to the subsidy rate calculations for Foshan Yixin. We also assigned individual 11 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. 12 See Memorandum, ‘‘Verification of the Questionnaire Responses of Foshan Yixin Stone Co., Ltd.,’’ dated December 14, 2018. E:\FR\FM\23MYN1.SGM 23MYN1 23762 Federal Register / Vol. 84, No. 100 / Thursday, May 23, 2019 / Notices khammond on DSKBBV9HB2PROD with NOTICES estimated subsidy rates based on adverse facts available to Foshan Yixin’s unaffiliated suppliers that failed to cooperate in this investigation: Foshan Nanhai and Qinguan Yuefeng. As a result of the changes to Foshan Yixin’s calculated rate, Commerce has also revised the all-others rate. For a discussion of these changes, see the Issues and Decision Memorandum.13 publication of this notice, in accordance with 19 CFR 351.224(b). Continuation of Suspension of Liquidation As a result of our Preliminary Determination of Critical Circumstances and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. Customs and Border Protection (CBP) to suspend liquidation Final Determination of entries of subject merchandise for Fasa Industrial and Hero Stone, as In accordance with section described in the scope of the 705(c)(1)(B)(i)(I) of the Act, we investigation section, entered, or calculated an individual estimated withdrawn from warehouse, for subsidy rate for Foshan Yixin (for consumption on or after June 23, 2018, entries produced and exported by which is 90 days prior to the date of Foshan Yixin), and established publication of the Preliminary individual estimated subsidy rates for Determination in the Federal Register. Fasa Industrial, Foshan Nanhai, Hero Additionally, as a result of our Stone, and Qinguan Yuefeng. Section Preliminary Determination, for Foshan 705(c)(5)(A)(i) of the Act states that, for Yixin and the companies covered by the companies not individually all-others rate, Commerce instructed investigated, we will determine an ‘‘all CBP to suspend liquidation of entries of others’’ rate equal to the weightedsubject merchandise, as described in the average countervailable subsidy rates scope of the investigation section, established for exporters and producers individually investigated, excluding any entered, or withdrawn from warehouse, for consumption on or after the date of zero and de minimis countervailable subsidy rates, and any rates determined publication of the Preliminary entirely under section 776 of the Act. In Determination in the Federal Register. In accordance with section 703(d) of the the final determination of this Act, we issued instructions to CBP to investigation, Commerce calculated rates for Fasa Industrial and Hero Stone discontinue the suspension of liquidation for countervailing duty in accordance with section 776 of the Act.14 Therefore, the only rate that is not (CVD) purposes for subject merchandise entered, or withdrawn from warehouse, zero, de minimis, or based entirely on on or after January 19, 2019, but to facts otherwise available is the rate continue the suspension of liquidation calculated for Foshan Yixin. of all entries from September 21, 2018 Consequently, the rate calculated for Foshan Yixin is also assigned as the rate (or, in the case of Fasa Industrial and for ‘‘all other’’ producers and exporters. Hero Stone, June 23, 2018), through January 18, 2019. Commerce determines the total If the U.S. International Trade estimated net countervailable subsidy Commission (ITC) issues a final rates to be the following: affirmative injury determination, we Subsidy will issue a CVD order, reinstate the Company rate suspension of liquidation under section (%) 706(a) of the Act, and require a cash Foshan Hero Stone Co., Ltd.15 ................. 190.99 deposit of estimated countervailing Fasa Industrial Corporation Limited .......... 190.99 duties for such entries of subject Foshan Yixin Stone Co., Ltd ..................... 45.32 Foshan Nanhai Julang Quartz Co ............ 190.99 merchandise in the amounts indicated Qinguan Yuefeng Decoration Material Co 190.99 above. If the ITC also issues a final All Others .................................................. 45.32 affirmative determination of critical circumstances, on the basis of our final Disclosure affirmative critical circumstances We intend to disclose the calculations determination, we will additionally instruct CBP to suspend liquidation and performed to parties in this proceeding require a cash deposit on all entries of within five days of the date of quartz surface products from China effective June 23, 2018. If the ITC issues 13 See Issues and Decision Memorandum. a final affirmative injury determination 14 We also assigned rates to Foshan Yixin’s but a final negative determination of unaffiliated suppliers Foshan Nanhai and Qinguan Yuefeng in accordance with section 776 of the Act. critical circumstances, we will instruct 15 Commerce has found the following companies CBP to liquidate entries prior to the date to be cross-owned with Foshan Hero Stone Co., of publication of the Preliminary Ltd.: Mingwei Quartz New Environmental Determination without regard to duties, Protection Materials Co., Ltd.; and Foshan Quartz Stone Imp & Exp Co., Ltd. and all estimated duties deposited or VerDate Sep<11>2014 16:40 May 22, 2019 Jkt 247001 PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 securities posted as a result of the suspension of liquidation will be refunded or canceled. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled. International Trade Commission Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. Because Commerce’s final determination is affirmative, in accordance with section 705(b) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of quartz surface products from China, or sales (or the likelihood of sales) for importation, of quartz surface products from China. If the ITC determines that material injury or threat of material injury does not exist, the proceeding will be terminated and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue a CVD order directing CBP to assess, upon further instruction by Commerce, countervailing duties on all imports of the subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the ‘‘Continuation of Suspension of Liquidation’’ section. Notification Regarding Administrative Protective Orders In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to the administrative protective order (APO) of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return/ destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation. Notification to Interested Parties This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act. E:\FR\FM\23MYN1.SGM 23MYN1 Federal Register / Vol. 84, No. 100 / Thursday, May 23, 2019 / Notices Dated: May 14, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. khammond on DSKBBV9HB2PROD with NOTICES Appendix I Scope of the Investigation The merchandise covered by the investigation is certain quartz surface products.16 Quartz surface products consist of slabs and other surfaces created from a mixture of materials that includes predominately silica (e.g., quartz, quartz powder, cristobalite) as well as a resin binder (e.g., an unsaturated polyester). The incorporation of other materials, including, but not limited to, pigments, cement, or other additives does not remove the merchandise from the scope of the investigation. However, the scope of the investigation only includes products where the silica content is greater than any other single material, by actual weight. Quartz surface products are typically sold as rectangular slabs with a total surface area of approximately 45 to 60 square feet and a nominal thickness of one, two, or three centimeters. However, the scope of this investigation includes surface products of all other sizes, thicknesses, and shapes. In addition to slabs, the scope of this investigation includes, but is not limited to, other surfaces such as countertops, backsplashes, vanity tops, bar tops, work tops, tabletops, flooring, wall facing, shower surrounds, fire place surrounds, mantels, and tiles. Certain quartz surface products are covered by the investigation whether polished or unpolished, cut or uncut, fabricated or not fabricated, cured or uncured, edged or not edged, finished or unfinished, thermoformed or not thermoformed, packaged or unpackaged, and regardless of the type of surface finish. In addition, quartz surface products are covered by the investigation whether or not they are imported attached to, or in conjunction with, non-subject merchandise such as sinks, sink bowls, vanities, cabinets, and furniture. If quartz surface products are imported attached to, or in conjunction with, such non-subject merchandise, only the quartz surface product is covered by the scope. Subject merchandise includes material matching the above description that has been finished, packaged, or otherwise fabricated in a third country, including by cutting, polishing, curing, edging, thermoforming, attaching to, or packaging with another product, or any other finishing, packaging, or fabrication that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the quartz surface products. The scope of the investigation does not cover quarried stone surface products, such as granite, marble, soapstone, or quartzite. Specifically excluded from the scope of the investigation are crushed glass surface products. Crushed glass surface products 16 Quartz surface products may also generally be referred to as engineered stone or quartz, artificial stone or quartz, agglomerated stone or quartz, synthetic stone or quartz, processed stone or quartz, manufactured stone or quartz, and Bretonstone®. VerDate Sep<11>2014 16:40 May 22, 2019 Jkt 247001 must meet each of the following criteria to qualify for this exclusion: (1) The crushed glass content is greater than any other single material, by actual weight; (2) there are pieces of crushed glass visible across the surface of the product; (3) at least some of the individual pieces of crushed glass that are visible across the surface are larger than one centimeter wide as measured at their widest cross-section (glass pieces); and (4) the distance between any single glass piece and the closest separate glass piece does not exceed three inches. The products subject to the scope are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheading: 6810.99.0010. Subject merchandise may also enter under subheadings 6810.11.0010, 6810.11.0070, 6810.19.1200, 6810.19.1400, 6810.19.5000, 6810.91.0000, 6810.99.0080, 6815.99.4070, 2506.10.0010, 2506.10.0050, 2506.20.0010, 2506.20.0080, and 7016.90.10. The HTSUS subheadings set forth above are provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive. Appendix II List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Final Determination of Critical Circumstances IV. Scope Comments V. Use of Adverse Facts Available VI. Subsidies Valuation Information VII. Analysis of Programs VIII. Analysis of Comments Comment 1: Whether This Investigation Was Improperly Initiated Comment 2: The Application of AFA to Hero Stone Comment 3: The Application of AFA to Foshan Yixin’s and Hero Stone’s Unaffiliated Suppliers of Subject Merchandise Comment 4: The Application of AFA to Input Market Distortion Comment 5: The Application of AFA Regarding Whether Inputs Are Specific Comment 6: Whether Commerce’s Use of a Tier Two Benchmark Takes Into Account Prevailing Market Conditions in China Comment 7: The Benchmark Used in the Calculation of the Provision of Polyester Resin for Less Than Adequate Remuneration (LTAR) Program Comment 8: The Benchmark Used in the Calculation of the Provision of Quartz for LTAR Program Comment 9: Whether Commerce Should Continue To Treat Quartz ‘‘Powder’’ as Crushed Quartz Sand Comment 10: Whether Commerce’s Preliminary Critical Circumstances Determination Was Lawful IX. Recommendation [FR Doc. 2019–10799 Filed 5–22–19; 8:45 am] BILLING CODE 3510–DS–P PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 23763 DEPARTMENT OF COMMERCE International Trade Administration [A–570–900] Diamond Sawblades and Parts Thereof From the People’s Republic of China: Notice of Court Decision Not in Harmony With the Final Results of Review, Rescission of Administrative Review in Part, and Amended Final Results of the Antidumping Duty Administrative Review; 2013–2014 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: On May 7, 2019, the United States Court of International Trade (CIT) sustained the final remand redetermination pertaining to the administrative review of the antidumping duty order on diamond sawblades and parts thereof from the People’s Republic of China covering the period November 1, 2013, through October 31, 2014. The Department of Commerce (Commerce) is notifying the public that the CIT’s final judgment in this case is not in harmony with the final results of the administrative review, that Commerce is rescinding the administrative review in part, and that Commerce is amending the final results with respect to the respondents eligible for separate rates. DATES: Applicable May 17, 2019. FOR FURTHER INFORMATION CONTACT: Yang Jin Chun or Minoo Hatten, AD/ CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone (202) 482–5760 or (202) 482–1690, respectively. AGENCY: SUPPLEMENTARY INFORMATION: Background On June 14, 2016, Commerce published the Final Results, in which we valued cores produced by Weihai Xiangguang Mechanical Industrial Co., Ltd. (Weihai) using a build-up methodology, and calculated surrogate truck freight distance using the average of the distances between industrial estates in Bangkok and the Port of Bangkok.1 On March 22, 2018, the CIT remanded the Final Results to Commerce to re-examine: (1) The withdrawals of review requests with 1 See Diamond Sawblades and Parts Thereof from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review; 2013– 2014, 81 FR 38673 (June 14, 2016) (Final Results) and accompanying Issues and Decision Memorandum at Comments 11 and 19. E:\FR\FM\23MYN1.SGM 23MYN1

Agencies

[Federal Register Volume 84, Number 100 (Thursday, May 23, 2019)]
[Notices]
[Pages 23760-23763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10799]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-085]


Certain Quartz Surface Products From the People's Republic of 
China: Final Affirmative Countervailing Duty Determination, and Final 
Affirmative Determination of Critical Circumstances

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain quartz surface products (quartz surface products) from the 
People's Republic of China (China).

DATES: Applicable May 23, 2019.

FOR FURTHER INFORMATION CONTACT: Darla Brown or Joshua Tucker, AD/CVD 
Operations, Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1791 or (202) 482-2044, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The petitioner in this investigation is Cambria Company, LLC. In 
addition to the Government of China (GOC), the mandatory respondents in 
this investigation are Fasa Industrial Corporation Limited (Fasa 
Industrial), Foshan Hero Stone Co., Ltd. (Hero Stone), and Foshan Yixin 
Stone Co., Ltd. (Foshan Yixin).
    The events that occurred since Commerce published the Preliminary 
Determination \1\ on September 21, 2018; the post-preliminary analysis 
\2\ on November 6, 2018; and the Preliminary Critical Circumstances 
Determination \3\ on November 15, 2018, are discussed in the Issues and 
Decision Memorandum,

[[Page 23761]]

which is hereby adopted by this notice.\4\ The Issues and Decision 
Memorandum also details the changes we made since the Preliminary 
Determination to the subsidy rates calculated for the mandatory 
respondents and all other producers/exporters. The Issues and 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 http://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 Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed Issues and Decision 
Memorandum and the electronic version of the Issues and Decision 
Memorandum are identical in content.
---------------------------------------------------------------------------

    \1\ See Certain Quartz Surface Products from the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, and Alignment of Final Determination with Final 
Antidumping Duty Determination, 83 FR 47881 (September 21, 2018) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum, ``Post-Preliminary Analysis of 
Countervailing Duty Investigation: Certain Quartz Surface Products 
from the People's Republic of China,'' dated November 6, 2018.
    \3\ See Certain Quartz Surface Products from the People's 
Republic of China: Preliminary Affirmative Determination of Critical 
Circumstances, in Part, in the Countervailing Duty Investigation, 83 
FR 57419 (November 15, 2018) (Preliminary Critical Circumstances 
Determination).
    \4\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Quartz Surface Products from the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
---------------------------------------------------------------------------

    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\ The revised 
deadline for the final determination of this investigation is now May 
14, 2019.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

Period of Investigation

    The period of investigation is January 1, 2017, through December 
31, 2017.

Scope of the Investigation

    The products covered by this investigation are quartz surface 
products from China. For a complete description of the scope of the 
investigation, see Appendix I.

Scope Comments

    During the course of this investigation and the concurrent less-
than-fair-value (LTFV) investigation of quartz surface products from 
China, Commerce received scope comments from interested parties. 
Commerce issued a Preliminary Scope Decision Memorandum to address 
these comments and set aside a period of time for parties to address 
scope issues in scope case and rebuttal briefs.\6\ We received comments 
from interested parties on the Preliminary Scope Decision Memorandum, 
which we addressed in the Final Scope Decision Memorandum.\7\ In 
addition, on February 14, 2019, the petitioner submitted a proposed 
clarification to the scope of this and the concurrent LTFV 
investigation.\8\ In response to the petitioner's proposed scope 
clarification, Commerce established a separate scope briefing schedule 
and received case and rebuttal briefs regarding the proposed 
clarification, which we addressed in the Proposed Scope Clarification 
Decision Memorandum.\9\ As a result, for this final determination, we 
made certain changes to the scope of these investigations from that 
published in the Preliminary Determination.\10\ See Appendix I.
---------------------------------------------------------------------------

    \6\ See Memorandum, ``Certain Quartz Surface Products from the 
People's Republic of China: Scope Comments Decision Memorandum for 
the Preliminary Determination,'' dated September 14, 2018 
(Preliminary Scope Decision Memorandum).
    \7\ See Memorandum, ``Certain Quartz Surface Products from the 
People's Republic of China: Final Scope Comments Decision 
Memorandum,'' dated May 10, 2019 (Final Scope Decision Memorandum).
    \8\ See Petitioner's Letter, ``Certain Quartz Surface Products 
from the People's Republic of China: Request to Extend Deadline to 
Submit Factual Information,'' dated February 14, 2019.
    \9\ See Memorandum, ``Certain Quartz Surface Products from the 
People's Republic of China: Proposed Scope Clarification Decision 
Memorandum,'' dated concurrently with this notice (Proposed Scope 
Clarification Memorandum).
    \10\ This scope modification will not apply to merchandise 
entered prior to the publication of this notice in the Federal 
Register.
---------------------------------------------------------------------------

Final Affirmative Determination of Critical Circumstances

    In the Preliminary Critical Circumstances Determination, Commerce 
preliminarily determined, pursuant to section 703(e)(1) of the Tariff 
Act of 1930, as amended (the Act), that critical circumstances exist 
for Fasa Industrial and Hero Stone, but not for Foshan Yixin or the 
companies covered by the all-others rate. For this final determination, 
we continue to find that critical circumstances exist for Fasa 
Industrial and Hero Stone pursuant to section 705(a)(2) of the Act. 
Moreover, we now find that Foshan Yixin and its unaffiliated suppliers, 
Foshan Nanhai Julang Quartz Co. (Foshan Nanhai) and Qinguan Yuefeng 
Decoration Material Co. (Qinguan Yuefeng), as well as the companies 
covered by the all-others rate received export-contingent 
countervailable subsidies during the POI through the Export Buyer's 
Credit program that are inconsistent with the Subsidies and 
Countervailing Measures Agreement and had massive imports of the 
subject merchandise over a relatively short period. Therefore, in 
accordance with section 705(a)(2) of the Act, we also find that 
critical circumstances exist with respect to Foshan Yixin, Foshan 
Nanhai, Qinguan Yuefeng, and the companies covered by the all-others 
rate. For the analysis of critical circumstances for this final 
determination, see the Issues and Decision Memorandum at Comment 10.

Analysis of Subsidy Programs and Comments Received

    In the Issues and Decision Memorandum, we address the subsidy 
programs under investigation and all issues raised in parties' case and 
rebuttal briefs, other than those issues related to scope. A list of 
the issues that parties raised, and to which we responded in the Issues 
and Decision Memorandum, is attached to this notice as Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found countervailable, 
Commerce determines that there is a subsidy, i.e., a financial 
contribution by an ``authority'' that gives rise to a benefit to the 
recipient, and that the subsidy is specific.\11\ For a full description 
of the methodology underlying our final determination, see the Issues 
and Decision Memorandum.
---------------------------------------------------------------------------

    \11\ 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.
---------------------------------------------------------------------------

Verification

    As provided in section 782(i) of the Act, Commerce verified the 
subsidy information reported by Foshan Yixin. We used standard 
verification procedures, including an examination of relevant 
accounting records and original source documents provided by the 
respondent.\12\
---------------------------------------------------------------------------

    \12\ See Memorandum, ``Verification of the Questionnaire 
Responses of Foshan Yixin Stone Co., Ltd.,'' dated December 14, 
2018.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    In addition to now finding critical circumstances for Foshan Yixin 
and companies covered by the all-others rate, based on our review and 
analysis of the comments received from parties and corrections 
presented at verification, we made certain changes to the subsidy rate 
calculations for Foshan Yixin. We also assigned individual

[[Page 23762]]

estimated subsidy rates based on adverse facts available to Foshan 
Yixin's unaffiliated suppliers that failed to cooperate in this 
investigation: Foshan Nanhai and Qinguan Yuefeng. As a result of the 
changes to Foshan Yixin's calculated rate, Commerce has also revised 
the all-others rate. For a discussion of these changes, see the Issues 
and Decision Memorandum.\13\
---------------------------------------------------------------------------

    \13\ See Issues and Decision Memorandum.
---------------------------------------------------------------------------

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated an individual estimated subsidy rate for Foshan Yixin (for 
entries produced and exported by Foshan Yixin), and established 
individual estimated subsidy rates for Fasa Industrial, Foshan Nanhai, 
Hero Stone, and Qinguan Yuefeng. Section 705(c)(5)(A)(i) of the Act 
states that, for companies not individually investigated, we will 
determine an ``all others'' rate equal to the weighted-average 
countervailable subsidy rates established for exporters and producers 
individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates determined entirely under 
section 776 of the Act. In the final determination of this 
investigation, Commerce calculated rates for Fasa Industrial and Hero 
Stone in accordance with section 776 of the Act.\14\ Therefore, the 
only rate that is not zero, de minimis, or based entirely on facts 
otherwise available is the rate calculated for Foshan Yixin. 
Consequently, the rate calculated for Foshan Yixin is also assigned as 
the rate for ``all other'' producers and exporters.
---------------------------------------------------------------------------

    \14\ We also assigned rates to Foshan Yixin's unaffiliated 
suppliers Foshan Nanhai and Qinguan Yuefeng in accordance with 
section 776 of the Act.
---------------------------------------------------------------------------

    Commerce determines the total estimated net countervailable subsidy 
rates to be the following:

------------------------------------------------------------------------
                                                                 Subsidy
                            Company                             rate (%)
------------------------------------------------------------------------
Foshan Hero Stone Co., Ltd.\15\...............................    190.99
Fasa Industrial Corporation Limited...........................    190.99
Foshan Yixin Stone Co., Ltd...................................     45.32
Foshan Nanhai Julang Quartz Co................................    190.99
Qinguan Yuefeng Decoration Material Co........................    190.99
All Others....................................................     45.32
------------------------------------------------------------------------

Disclosure

    We intend to disclose the calculations performed to parties in this 
proceeding within five days of the date of publication of this notice, 
in accordance with 19 CFR 351.224(b).
---------------------------------------------------------------------------

    \15\ Commerce has found the following companies to be cross-
owned with Foshan Hero Stone Co., Ltd.: Mingwei Quartz New 
Environmental Protection Materials Co., Ltd.; and Foshan Quartz 
Stone Imp & Exp Co., Ltd.
---------------------------------------------------------------------------

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination of Critical 
Circumstances and pursuant to sections 703(d)(1)(B) and (d)(2) of the 
Act, Commerce instructed U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise for Fasa 
Industrial and Hero Stone, as described in the scope of the 
investigation section, entered, or withdrawn from warehouse, for 
consumption on or after June 23, 2018, which is 90 days prior to the 
date of publication of the Preliminary Determination in the Federal 
Register. Additionally, as a result of our Preliminary Determination, 
for Foshan Yixin and the companies covered by the all-others rate, 
Commerce instructed 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 the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we issued 
instructions to CBP to discontinue the suspension of liquidation for 
countervailing duty (CVD) purposes for subject merchandise entered, or 
withdrawn from warehouse, on or after January 19, 2019, but to continue 
the suspension of liquidation of all entries from September 21, 2018 
(or, in the case of Fasa Industrial and Hero Stone, June 23, 2018), 
through January 18, 2019.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the suspension of liquidation under section 706(a) of the Act, and 
require a cash deposit of estimated countervailing duties for such 
entries of subject merchandise in the amounts indicated above. If the 
ITC also issues a final affirmative determination of critical 
circumstances, on the basis of our final affirmative critical 
circumstances determination, we will additionally instruct CBP to 
suspend liquidation and require a cash deposit on all entries of quartz 
surface products from China effective June 23, 2018. If the ITC issues 
a final affirmative injury determination but a final negative 
determination of critical circumstances, we will instruct CBP to 
liquidate entries prior to the date of publication of the Preliminary 
Determination without regard to duties, and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. Because Commerce's final determination is 
affirmative, in accordance with section 705(b) of the Act, the ITC will 
determine, within 45 days, whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of quartz surface products from China, or sales (or 
the likelihood of sales) for importation, of quartz surface products 
from China. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue a CVD order directing CBP to 
assess, upon further instruction by Commerce, countervailing duties on 
all imports of the subject merchandise that are entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the administrative protective order (APO) of their 
responsibility concerning the destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
written notification of the return/destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.


[[Page 23763]]


    Dated: May 14, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the investigation is certain quartz 
surface products.\16\ Quartz surface products consist of slabs and 
other surfaces created from a mixture of materials that includes 
predominately silica (e.g., quartz, quartz powder, cristobalite) as 
well as a resin binder (e.g., an unsaturated polyester). The 
incorporation of other materials, including, but not limited to, 
pigments, cement, or other additives does not remove the merchandise 
from the scope of the investigation. However, the scope of the 
investigation only includes products where the silica content is 
greater than any other single material, by actual weight. Quartz 
surface products are typically sold as rectangular slabs with a 
total surface area of approximately 45 to 60 square feet and a 
nominal thickness of one, two, or three centimeters. However, the 
scope of this investigation includes surface products of all other 
sizes, thicknesses, and shapes. In addition to slabs, the scope of 
this investigation includes, but is not limited to, other surfaces 
such as countertops, backsplashes, vanity tops, bar tops, work tops, 
tabletops, flooring, wall facing, shower surrounds, fire place 
surrounds, mantels, and tiles. Certain quartz surface products are 
covered by the investigation whether polished or unpolished, cut or 
uncut, fabricated or not fabricated, cured or uncured, edged or not 
edged, finished or unfinished, thermoformed or not thermoformed, 
packaged or unpackaged, and regardless of the type of surface 
finish.
---------------------------------------------------------------------------

    \16\ Quartz surface products may also generally be referred to 
as engineered stone or quartz, artificial stone or quartz, 
agglomerated stone or quartz, synthetic stone or quartz, processed 
stone or quartz, manufactured stone or quartz, and 
Bretonstone[supreg].
---------------------------------------------------------------------------

    In addition, quartz surface products are covered by the 
investigation whether or not they are imported attached to, or in 
conjunction with, non-subject merchandise such as sinks, sink bowls, 
vanities, cabinets, and furniture. If quartz surface products are 
imported attached to, or in conjunction with, such non-subject 
merchandise, only the quartz surface product is covered by the 
scope.
    Subject merchandise includes material matching the above 
description that has been finished, packaged, or otherwise 
fabricated in a third country, including by cutting, polishing, 
curing, edging, thermoforming, attaching to, or packaging with 
another product, or any other finishing, packaging, or fabrication 
that would not otherwise remove the merchandise from the scope of 
the investigation if performed in the country of manufacture of the 
quartz surface products.
    The scope of the investigation does not cover quarried stone 
surface products, such as granite, marble, soapstone, or quartzite. 
Specifically excluded from the scope of the investigation are 
crushed glass surface products. Crushed glass surface products must 
meet each of the following criteria to qualify for this exclusion: 
(1) The crushed glass content is greater than any other single 
material, by actual weight; (2) there are pieces of crushed glass 
visible across the surface of the product; (3) at least some of the 
individual pieces of crushed glass that are visible across the 
surface are larger than one centimeter wide as measured at their 
widest cross-section (glass pieces); and (4) the distance between 
any single glass piece and the closest separate glass piece does not 
exceed three inches.
    The products subject to the scope are currently classified in 
the Harmonized Tariff Schedule of the United States (HTSUS) under 
the following subheading: 6810.99.0010. Subject merchandise may also 
enter under subheadings 6810.11.0010, 6810.11.0070, 6810.19.1200, 
6810.19.1400, 6810.19.5000, 6810.91.0000, 6810.99.0080, 
6815.99.4070, 2506.10.0010, 2506.10.0050, 2506.20.0010, 
2506.20.0080, and 7016.90.10. The HTSUS subheadings set forth above 
are provided for convenience and U.S. Customs purposes only. The 
written description of the scope is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Final Determination of Critical Circumstances
IV. Scope Comments
V. Use of Adverse Facts Available
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Analysis of Comments
    Comment 1: Whether This Investigation Was Improperly Initiated
    Comment 2: The Application of AFA to Hero Stone
    Comment 3: The Application of AFA to Foshan Yixin's and Hero 
Stone's Unaffiliated Suppliers of Subject Merchandise
    Comment 4: The Application of AFA to Input Market Distortion
    Comment 5: The Application of AFA Regarding Whether Inputs Are 
Specific
    Comment 6: Whether Commerce's Use of a Tier Two Benchmark Takes 
Into Account Prevailing Market Conditions in China
    Comment 7: The Benchmark Used in the Calculation of the 
Provision of Polyester Resin for Less Than Adequate Remuneration 
(LTAR) Program
    Comment 8: The Benchmark Used in the Calculation of the 
Provision of Quartz for LTAR Program
    Comment 9: Whether Commerce Should Continue To Treat Quartz 
``Powder'' as Crushed Quartz Sand
    Comment 10: Whether Commerce's Preliminary Critical 
Circumstances Determination Was Lawful
IX. Recommendation

[FR Doc. 2019-10799 Filed 5-22-19; 8:45 am]
 BILLING CODE 3510-DS-P