Certain Quartz Surface Products From India: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, In Part, and Alignment of Final Determination With Final Antidumping Duty Determination, 54838-54841 [2019-22314]

Download as PDF 54838 Federal Register / Vol. 84, No. 198 / Friday, October 11, 2019 / Notices jbell on DSK3GLQ082PROD with NOTICES Scope of the Order The product covered by this order is certain welded carbon and alloy line pipe, of circular cross section and with an outside diameter greater than 16 inches, but less than 64 inches, in diameter, whether or not stenciled. This product is normally produced according to American Petroleum Institute (API) specifications, including Grades A25, A, B, and X grades ranging from X42 to X80, but can also be produced to other specifications. The product currently is classified under U.S. Harmonized Tariff Schedule (HTSUS) item numbers 7305.11.10.30, 7305.11.10.60, 7305.11.50.00, 7305.12.10.30, 7305.12.10.60, 7305.12.50.00, 7305.19.10.30, 7305.19.10.60, and 7305.19.50.00. Although the HTSUS item numbers are provided for convenience and customs purposes, the written description of the scope is dispositive. Specifically not included within the scope of this investigation is American Water Works Association (AWWA) specification water and sewage pipe and the following size/ grade combinations; of line pipe: • Having an outside diameter greater than or equal to 18 inches and less than or equal to 22 inches, with a wall thickness measuring 0.750 inch or greater, regardless of grade. • Having an outside diameter greater than or equal to 24 inches and less than 30 inches, with wall thickness measuring greater than 0.875 inches in grades A, B, and X42, with wall thickness measuring greater than 0.750 inches in grades X52 through X56, and with wall thickness measuring greater than 0.688 inches in grades X60 or greater. • Having an outside diameter greater than or equal to 30 inches and less than 36 inches, with wall thickness measuring greater than 1.250 inches in grades A, B, and X42, with wall thickness measuring greater than 1.000 inches in grades X52 through X56, and with wall thickness measuring greater than 0.875 inches in grades X60 or greater. • Having an outside diameter greater than or equal to 36 inches and less than 42 inches, with wall thickness measuring greater than 1.375 inches in grades A, B, and X42, with wall thickness measuring greater than 1.250 inches in grades X52 through X56, and with wall thickness measuring greater than 1.125 inches in grades X60 or greater. • Having an outside diameter greater than or equal to 42 inches and less than 64 inches, with a wall thickness measuring greater than 1.500 inches in VerDate Sep<11>2014 17:56 Oct 10, 2019 Jkt 250001 grades A, B, and X42, with wall thickness measuring greater than 1.375 inches in grades X52 through X56, and with wall thickness measuring greater than 1.250 inches in grades X60 or greater. • Having an outside diameter equal to 48 inches, with a wall thickness measuring 1.0 inch or greater, in grades X–80 or greater. • In API grades X80 or above, having an outside diameter of 48 inches to and including 52 inches, and with a wall thickness of 0.90 inch or more. • In API grades XI00 or above, having an outside diameter of 48 inches to and including 52 inches, and with a wall thickness of 0.54 inch or more. • An API grade X–80 having an outside diameter of 21 inches and wall thickness of 0.625 inch or more. Continuation of the Order As a result of the determinations by Commerce and the ITC that revocation of the AD order would likely lead to a continuation or recurrence of dumping and material injury to an industry in the United States, pursuant to section 751(d)(2) of the Act and 19 CFR 351.218(a), Commerce hereby orders the continuation of the AD order on line pipe from Japan. U.S. Customs and Border Protection will continue to collect AD cash deposits at the rates in effect at the time of entry for all imports of subject merchandise. The applicable date of the continuation of the order will be the date of publication in the Federal Register of this notice of continuation. Pursuant to section 751(c)(2) of the Act, Commerce intends to initiate the next five-year sunset review of the order not later than 30 days prior to the fifth anniversary of the applicable date of continuation. This five-year sunset review and this notice are in accordance with section 751(c) of the Act and published pursuant to section 777(i)(1) of the Act and 19 CFR 351.218(f)(4). Dated: October 4, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. [FR Doc. 2019–22339 Filed 10–8–19; 4:15 pm] BILLING CODE 3510–DS–P PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 DEPARTMENT OF COMMERCE International Trade Administration [C–533–890] Certain Quartz Surface Products From India: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, In Part, 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 that countervailable subsidies are being provided to producers and exporters of certain quartz surface products (quartz surface products) from India for the period of investigation April 1, 2018 through March 31, 2019. Interested parties are invited to comment on this preliminary determination. DATES: Applicable October 11, 2019. FOR FURTHER INFORMATION CONTACT: Kristen Johnson or Stephanie Moore, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4793 or (202) 482–3692, respectively. SUPPLEMENTARY INFORMATION: AGENCY: 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 June 3, 2019.1 On July 3, 2019, Commerce postponed the preliminary determination of this investigation and the revised deadline is now October 7, 2019.2 For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.3 A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary 1 See Certain Quartz Surface Products from India and the Republic of Turkey: Initiation of Countervailing Duty Investigations, 84 FR 25524 (June 3, 2019) (Initiation Notice). 2 See Certain Quartz Surface Products from India and the Republic of Turkey: Postponement of Preliminary Determinations in the Countervailing Duty Investigations, 84 FR 31839 (July 3, 2019). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Determination of the Countervailing Duty Investigation of Certain Quartz Surface Products from India,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). E:\FR\FM\11OCN1.SGM 11OCN1 Federal Register / Vol. 84, No. 198 / Friday, October 11, 2019 / Notices 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 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. Scope of the Investigation The products covered by this investigation are quartz surface products from India. For a complete description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the Preamble to Commerce’s regulations,4 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).5 Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice. Commerce intends to issue its preliminary decision regarding comments concerning the scope of the antidumping duty (AD) and countervailing duty (CVD) investigations in the preliminary determination of the companion AD investigation. 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 gives rise to a benefit to the recipient, and that the subsidy is specific.6 Preliminary Affirmative Determination of Critical Circumstances, In Part In accordance with section 703(e)(1) of the Act, Commerce preliminarily determines that critical circumstances do not exist with respect to Pokarna Engineered Stone Limited (Pokarna) and Antique Marbonite Private Limited, India (Antique Marbonite) but do exist with respect to imports of quartz surface products from India for all other exporters or producers not individually examined. For a full description of the methodology and results of Commerce’s analysis, see the Preliminary Decision Memorandum. Alignment As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final CVD determination in this investigation with the final 54839 determination in the companion AD investigation of quartz surface products from India based on a request made by the petitioner.7 Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled no later than February 18, 2020, unless postponed.8 All-Others Rate Sections 703(d) 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 under section 776 of the Act. In this investigation, Commerce preliminarily found a de minimis rate for Antique Marbonite. Therefore, the only rate that is not zero, de minimis or based entirely on facts otherwise available is the rate calculated for Pokarna. Consequently, the rate calculated for Pokarna 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: Subsidy rate ad valorem (percent) Company Antique Marbonite Private Limited, India (Antique Marbonite) 9 ......................................................................................................... Pokarna Engineered Stone Limited (Pokarna) 10 ................................................................................................................................ All Others ............................................................................................................................................................................................. * 1.57 4.32 4.32 * De minimis. India is considered a developing country and has a de minimis rate of 2.0 percent.11 In accordance with section 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. Because the subsidy rate for Antique Marbonite is de minimis, Commerce is directing CBP not to suspend liquidation of entries of the merchandise produced by Antique 4 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 5 See Initiation Notice. 6 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. 7 See Petitioner’s Letter, ‘‘Certain Quartz Surface Products from India: Request for Alignment,’’ dated October 1, 2019. 8 See Certain Quartz Surface Products from India and the Republic of Turkey: Postponement of the Preliminary Determinations in the Less-Than-FairValue Investigations, 84 FR 52062 (October 1, 2019). 9 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Antique Marbonite Private Limited, India: Antique Granito Shareholders Trust (Antique Trust), Prism Johnson Limited (Prism Johnson), and Shivam Enterprises (Shivam). 10 As discussed in the Preliminary Decision Memorandum, Commerce has found the following company to be cross-owned with Pokarna: Pokarna Limited. 11 See Developing and Least-Developed Country Designations under the Countervailing Duty Law, 63 FR 29945 (June 2, 1998). The higher de minimis subsidization rate of 3.0 percent, under Article 27.11 of the Agreement on Subsidies and Countervailing Measures, expired on December 31, 2002. jbell on DSK3GLQ082PROD with NOTICES Suspension of Liquidation VerDate Sep<11>2014 19:15 Oct 10, 2019 Jkt 250001 PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 E:\FR\FM\11OCN1.SGM 11OCN1 54840 Federal Register / Vol. 84, No. 198 / Friday, October 11, 2019 / Notices Marbonite and exported by Antique Marbonite, Antique Trust, Prism Johnson, or Shivam. However, entries of subject merchandise in any other producer/exporter combination, e.g., merchandise produced by a third party and exported by Antique Marbonite, Antique Trust, Prism Johnson, or Shivam, or produced by Antique Marbonite and exported by a third party are subject to the cash deposit requirements at the all-others rate. Section 703(e)(2) of the Act provides that, given an affirmative determination of critical circumstances, 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 notice of initiation of the investigation was published. Commerce preliminarily finds that critical circumstances exist for imports of quartz surface products from India for all other exporters or producers not individually examined. In accordance with section 703(e)(2)(A) of the Act, the suspension of liquidation shall apply to unliquidated entries of merchandise from all other exporters or producers not individually examined that were entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the publication of this notice. 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). jbell on DSK3GLQ082PROD with NOTICES 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 Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than seven days after the date on which the last verification report is issued in this investigation. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than five days after the deadline date for case briefs.12 12 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). VerDate Sep<11>2014 17:56 Oct 10, 2019 Jkt 250001 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, 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. International Trade Commission Notification In accordance with section 703(f) of the Act, Commerce will notify the International Trade Commission (ITC) of its determination. If the final determination is affirmative, the ITC will determine 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: October 7, 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. 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, glass powder) 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 PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 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 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 1 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 7016.90.1050. The HTSUS subheadings set forth above are provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive. E:\FR\FM\11OCN1.SGM 11OCN1 Federal Register / Vol. 84, No. 198 / Friday, October 11, 2019 / Notices Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope Comments IV. Scope of the Investigation V. Preliminary Affirmative Determination of Critical Circumstances, In Part VI. Injury Test VII. Alignment VIII. Subsidies Valuation IX. Benchmarks and Interest Rates X. Use of Facts Otherwise Available XI. Analysis of Programs XII. Disclosure and Public Comment XIII. Conclusion [FR Doc. 2019–22314 Filed 10–10–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–489–838] Certain Quartz Surface Products From the Republic of Turkey: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances 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 that countervailable subsidies are being provided to producers and exporters of certain quartz surface products (quartz surface products) from the Republic of Turkey (Turkey). The period of investigation is January 1, 2018 through December 31, 2018. Interested parties are invited to comment on this preliminary determination. DATES: Applicable October 11, 2019. FOR FURTHER INFORMATION CONTACT: Stephanie Berger or Peter Zukowski, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–2483 or (202) 482–0189, respectively. SUPPLEMENTARY INFORMATION: jbell on DSK3GLQ082PROD with NOTICES AGENCY: 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 VerDate Sep<11>2014 17:56 Oct 10, 2019 Jkt 250001 on June 3, 2019.1 On July 3, 2019, Commerce postponed the preliminary determination of this investigation, and the revised deadline is now October 7, 2019.2 For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.3 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 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. Scope of the Investigation The products covered by this investigation are quartz surface products from Turkey. For a complete description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the Preamble to Commerce’s regulations,4 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage, (i.e., scope).5 Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice. Commerce intends to issue its preliminary decision regarding comments concerning the scope of the antidumping duty (AD) and countervailing duty (CVD) investigations in the preliminary determination of the companion AD investigation. 1 See Certain Quartz Surface Products from India and the Republic of Turkey: Initiation of Countervailing Duty Investigations, 84 FR 25524 (June 3, 2019) (Initiation Notice). 2 See Certain Quartz Surface Products from India and the Republic of Turkey: Postponement of Preliminary Determinations in the Countervailing Duty Investigations, 84 FR 31839 (July 3, 2019). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Determination of the Countervailing Duty Investigation of Certain Quartz Surface Products from Turkey,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). 4 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 5 See Initiation Notice. PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 54841 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 gives rise to a benefit to the recipient, and that the subsidy is specific.6 Preliminary Affirmative Determination of Critical Circumstances In accordance with section 703(e)(1) of the Act, Commerce preliminarily determines that critical circumstances exist with respect to imports of quartz surface products from Turkey for Belenco Dis¸ Ticaret A.S ¸ . (Belenco) and all other exporters or producers not individually examined. For a full description of the methodology and results of Commerce’s analysis, see the Preliminary Decision Memorandum. Alignment As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final CVD determination in this investigation with the final determination in the companion AD investigation of quartz surface products from Turkey based on a request made by the petitioner.7 Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than February 18, 2020, unless postponed.8 All-Others Rate Sections 703(d) 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 under section 776 of the Act. Commerce calculated an individual estimated countervailable subsidy rate for Belenco and Peker Yu¨zey Tasar(lar( 6 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. 7 See Petitioner’s Letter, ‘‘Certain Quartz Surface Products from Turkey: Request to Align Determinations,’’ dated October 1, 2019. 8 See Certain Quartz Surface Products from India and the Republic of Turkey: Postponement of the Preliminary Determinations in the Less-Than-FairValue Investigations, 84 FR 52062 (October 1, 2019). E:\FR\FM\11OCN1.SGM 11OCN1

Agencies

[Federal Register Volume 84, Number 198 (Friday, October 11, 2019)]
[Notices]
[Pages 54838-54841]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22314]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-890]


Certain Quartz Surface Products From India: Preliminary 
Affirmative Countervailing Duty Determination, Preliminary Affirmative 
Critical Circumstances Determination, In Part, 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 certain quartz surface products (quartz surface products) 
from India for the period of investigation April 1, 2018 through March 
31, 2019. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable October 11, 2019.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson or Stephanie Moore, 
AD/CVD Operations, Office III, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4793 
or (202) 482-3692, 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 June 3, 
2019.\1\ On July 3, 2019, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
October 7, 2019.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics discussed in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary

[[Page 54839]]

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 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.
---------------------------------------------------------------------------

    \1\ See Certain Quartz Surface Products from India and the 
Republic of Turkey: Initiation of Countervailing Duty 
Investigations, 84 FR 25524 (June 3, 2019) (Initiation Notice).
    \2\ See Certain Quartz Surface Products from India and the 
Republic of Turkey: Postponement of Preliminary Determinations in 
the Countervailing Duty Investigations, 84 FR 31839 (July 3, 2019).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Certain 
Quartz Surface Products from India,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

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

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. Commerce intends to issue its preliminary 
decision regarding comments concerning the scope of the antidumping 
duty (AD) and countervailing duty (CVD) investigations in the 
preliminary determination of the companion AD investigation.
---------------------------------------------------------------------------

    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice.
---------------------------------------------------------------------------

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 gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
---------------------------------------------------------------------------

    \6\ 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.
---------------------------------------------------------------------------

Preliminary Affirmative Determination of Critical Circumstances, In 
Part

    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that critical circumstances do not exist with 
respect to Pokarna Engineered Stone Limited (Pokarna) and Antique 
Marbonite Private Limited, India (Antique Marbonite) but do exist with 
respect to imports of quartz surface products from India for all other 
exporters or producers not individually examined. For a full 
description of the methodology and results of Commerce's analysis, see 
the Preliminary Decision Memorandum.

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of quartz surface 
products from India based on a request made by the petitioner.\7\ 
Consequently, the final CVD determination will be issued on the same 
date as the final AD determination, which is currently scheduled no 
later than February 18, 2020, unless postponed.\8\
---------------------------------------------------------------------------

    \7\ See Petitioner's Letter, ``Certain Quartz Surface Products 
from India: Request for Alignment,'' dated October 1, 2019.
    \8\ See Certain Quartz Surface Products from India and the 
Republic of Turkey: Postponement of the Preliminary Determinations 
in the Less-Than-Fair-Value Investigations, 84 FR 52062 (October 1, 
2019).
---------------------------------------------------------------------------

All-Others Rate

    Sections 703(d) 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 under section 
776 of the Act.
    In this investigation, Commerce preliminarily found a de minimis 
rate for Antique Marbonite. Therefore, the only rate that is not zero, 
de minimis or based entirely on facts otherwise available is the rate 
calculated for Pokarna. Consequently, the rate calculated for Pokarna 
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:

------------------------------------------------------------------------
                                                           Subsidy  rate
                         Company                            ad  valorem
                                                             (percent)
------------------------------------------------------------------------
Antique Marbonite Private Limited, India (Antique                 * 1.57
 Marbonite) \9\.........................................
Pokarna Engineered Stone Limited (Pokarna) \10\.........            4.32
All Others..............................................            4.32
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* De minimis. India is considered a developing country and has a de
  minimis rate of 2.0 percent.\11\

     
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    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Antique Marbonite Private Limited, India: Antique Granito 
Shareholders Trust (Antique Trust), Prism Johnson Limited (Prism 
Johnson), and Shivam Enterprises (Shivam).
    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following company to be cross-owned with 
Pokarna: Pokarna Limited.
    \11\ See Developing and Least-Developed Country Designations 
under the Countervailing Duty Law, 63 FR 29945 (June 2, 1998). The 
higher de minimis subsidization rate of 3.0 percent, under Article 
27.11 of the Agreement on Subsidies and Countervailing Measures, 
expired on December 31, 2002.
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Suspension of Liquidation

    In accordance with section 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. Because the subsidy rate for Antique Marbonite is de 
minimis, Commerce is directing CBP not to suspend liquidation of 
entries of the merchandise produced by Antique

[[Page 54840]]

Marbonite and exported by Antique Marbonite, Antique Trust, Prism 
Johnson, or Shivam. However, entries of subject merchandise in any 
other producer/exporter combination, e.g., merchandise produced by a 
third party and exported by Antique Marbonite, Antique Trust, Prism 
Johnson, or Shivam, or produced by Antique Marbonite and exported by a 
third party are subject to the cash deposit requirements at the all-
others rate.
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, 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 notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of quartz surface 
products from India for all other exporters or producers not 
individually examined. In accordance with section 703(e)(2)(A) of the 
Act, the suspension of liquidation shall apply to unliquidated entries 
of merchandise from all other exporters or producers not individually 
examined that were entered, or withdrawn from warehouse, for 
consumption on or after the date which is 90 days before the 
publication of this notice.

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

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\12\ 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.
---------------------------------------------------------------------------

    \12\ 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.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine 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: October 7, 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. 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, 
glass powder) 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 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 1 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 7016.90.1050. The HTSUS subheadings set forth 
above are provided for convenience and U.S. Customs purposes only. 
The written description of the scope is dispositive.

[[Page 54841]]

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Preliminary Affirmative Determination of Critical Circumstances, 
In Part
VI. Injury Test
VII. Alignment
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Use of Facts Otherwise Available
XI. Analysis of Programs
XII. Disclosure and Public Comment
XIII. Conclusion

[FR Doc. 2019-22314 Filed 10-10-19; 8:45 am]
BILLING CODE 3510-DS-P
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