Polyester Textured Yarn From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Determination of Critical Circumstances, 63845-63848 [2019-25041]
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Federal Register / Vol. 84, No. 223 / Tuesday, November 19, 2019 / Notices
Notification Regarding Administrative
Protective Orders
This notice will serve as a final
reminder to the parties subject to
administrative protective order (APO) of
their responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305. Timely written
notification of return or destruction of
APO materials or conversion to judicial
protective order is hereby requested.
Failure to comply with the regulations
and the terms of an APO is a
sanctionable violation.
Notification to Interested Parties
This determination and this notice are
issued and published pursuant to
sections 735(d) and 777(i)(1) of the Act
and 19 CFR 351.210(c).
Dated: November 13, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
Appendix I—Scope of the Investigation
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The merchandise covered by this
investigation, polyester textured yarn, is
synthetic multifilament yarn that is
manufactured from polyester (polyethylene
terephthalate). Polyester textured yarn is
produced through a texturing process, which
imparts special properties to the filaments of
the yarn, including stretch, bulk, strength,
moisture absorption, insulation, and the
appearance of a natural fiber. This scope
includes all forms of polyester textured yarn,
regardless of surface texture or appearance,
yarn density and thickness (as measured in
denier), number of filaments, number of
plies, finish (luster), cross section, color, dye
method, texturing method, or packing
method (such as spindles, tubes, or beams).
Excluded from the scope of the
investigation is bulk continuous filament
yarn that: (a) Is polyester synthetic
multifilament yarn; (b) has denier size ranges
of 900 and above; (c) has turns per meter of
40 and above; and (d) has a maximum
shrinkage of 2.5 percent.
The merchandise subject to this
investigation is properly classified under
subheadings 5402.33.3000 and 5402.33.6000
of the Harmonized Tariff Schedule of the
United States (HTSUS). Merchandise subject
to this investigation may also enter under
HTSUS subheading 5402.52.00. Although the
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the merchandise is
dispositive.
Appendix II—List of Topics Discussed
in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Changes from the Preliminary
Determination
IV. Discussion of the Issues
Reliance
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1. Whether Adverse Facts Available (AFA)
is Warranted for Reliance
2. Affiliated Party Purchases
3. Technical Services Adjustment
4. Level of Trade (LOT) Adjustment
5. Sales Made Outside the Ordinary Course
of Trade
JBF
6. Whether AFA is Warranted for JBF
7. Selection of the Appropriate AFA Rate
for JBF
8. Adjustment to Cash Deposit Rates for
Export Subsidies
V. Recommendation
[FR Doc. 2019–25085 Filed 11–18–19; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–098]
Polyester Textured Yarn From the
People’s Republic of China: Final
Affirmative Countervailing Duty
Determination and Final Affirmative
Determination of Critical
Circumstances
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
polyester textured yarn (yarn) from the
People’s Republic of China (China).
DATES: Applicable November 19, 2019.
FOR FURTHER INFORMATION CONTACT:
Joseph Dowling or Robert Palmer, AD/
CVD Operations, Office VIII,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–1646 or
(202) 482–9068, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On May 3, 2019, Commerce published
in the Federal Register the Preliminary
Determination.1 The selected mandatory
respondents in this investigation are
Fujian Billion Polymerization Fiber
Technology Industrial Co., Ltd. (Fujian
Billion), Suzhou Shenghong Fiber Co.,
Ltd. (Shenghong Fiber), and Suzhou
Shenghong Garmant Development Co.
(Garmant). In the Preliminary
Determination, in accordance with
1 See Polyester Textured Yarn from the People’s
Republic of China: Preliminary Affirmative
Countervailing Duty Determination, and Alignment
of Final Determination with Final Antidumping
Duty Determination, 84 FR 19040 (May 3, 2019)
(Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
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63845
section 705(a)(1) of the Tariff Act of
1930, as amended (the Act), and 19 CFR
351.210(b)(4), Commerce aligned the
final countervailing duty (CVD)
determination with the final
antidumping duty (AD) determination.
The revised deadline for the final
determination of this investigation is
now November 13, 2019. On August 22,
2019, Commerce issued its PostPreliminary Analysis.2
A summary of the events that
occurred since Commerce published the
Preliminary Determination, as well as a
full discussion of the issues raised by
parties for this final determination, may
be found in the Issues and Decision
Memorandum.3 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 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 Issues and
Decision Memorandum can be accessed
directly at https://enforcement.trade.gov/
frn/. The signed and electronic versions
of the Issues and Decision
Memorandum are identical in content.
Period of Investigation
The period of investigation (POI) is
January 1, 2017 through December 31,
2017.
Scope of the Investigation
The products covered by this
investigation are yarn from China. For a
complete description of the scope of this
investigation, see the ‘‘Scope of the
Investigation’’ in Appendix I.
Scope Comments
During the course of this investigation
and the concurrent AD investigation of
yarn from China, and concurrent AD
and CVD investigations of yarn from
India, certain interested parties
commented on the scope of the
investigations as it appeared in the
Initiation Notice.4 Commerce addressed
2 See Memorandum, ‘‘Post-Preliminary Analysis
of Countervailing Duty Investigation of Polyester
Textured Yarn from India,’’ dated August 22, 2019
(Post-Preliminary Analysis).
3 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Affirmative
Determination of the Countervailing Duty
Investigation of Polyester Textured Yarn from the
People’s Republic of China,’’ dated concurrently
with, and hereby adopted by this notice (Issues and
Decision Memorandum).
4 See Polyester Textured Yarn from India and the
People’s Republic of China: Initiation of Less-Than-
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Federal Register / Vol. 84, No. 223 / Tuesday, November 19, 2019 / Notices
these comments in the Preliminary
Determination, wherein Commerce
preliminarily modified the scope
language as it appeared in the Initiation
Notice to exclude bulk continuous
filament yarn.5 No interested parties
commented on the preliminary
exclusion of bulk continuous filament
yarn. Thus, we have made no changes
to the scope language from the
Preliminary Determination with regard
to bulk continuous filament yarn.
On May 2, 2019, the petitioners 6
requested that Commerce include an
additional Harmonized Tariff Schedule
of the United States (HTSUS)
subheading in the scope language.7
Specifically, the petitioners requested
that Commerce add HTSUS 5402.52.00
covering twisted yarn to the scope of the
investigations.8 As no interested parties
rebutted the petitioners’ request to add
this HTSUS subheading, and Commerce
finds the petitioners’ request is
reasonable, we have revised the scope of
the investigations to include HTSUS
5402.52.00. See Appendix I for the final
scope of the investigation.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed in the
Issues and Decision Memorandum. A
list of the issues that parties raised, and
to which we responded in the Issues
and Decision Memorandum, is attached
to this notice at Appendix II.
Methodology
As provided in section 782(i) of the
Act, in July 2019, we conducted
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.
In making this final determination,
Commerce relied, in part, on facts
available pursuant to section 776(a) of
the Act. Additionally, as discussed in
the Issues and Decision Memorandum,
because one or more respondents did
not act to the best of their ability in
responding to our requests for
information, we drew adverse
inferences, where appropriate, in
selecting from among the facts
otherwise available, pursuant to section
776(b) of the Act. For further
information, see the section ‘‘Use of
Fair-Value Investigations, 83 FR 58223, 58233
(November 19, 2018) (Initiation Notice).
5 See Preliminary Determination, 84 FR at 19041.
6 Unifi Manufacturing, Inc., and Nan Ya Plastics
Corporation, America, collectively, the petitioners.
7 See Petitioners’ Comments, ‘‘Request to Include
HTSUS Subheading 5402.52 in the Scope of These
Investigations,’’ dated May 2, 2019 (Petitioners’
Comments).
8 See Petitioners’ Comments.
9 See Preliminary Determination PDM at 6.
10 See Commerce Memoranda, ‘‘Verification of
the Questionnaire Responses of Fujian Billion
Polymerization Fiber Technology Industrial Co., Ltd
and Billion Development (Hong Kong) Limited,’’
dated August 5, 2019; and ‘‘Verification of the
Questionnaire Responses of the Government of the
People’s Republic of China,’’ dated August 5, 2019.
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.
Final Affirmative Determination of
Critical Circumstances
In accordance with section
703(e)(1)(B) of the Act, Commerce
preliminarily determined that critical
circumstances existed for all imports of
yarn from China.9 Based our
examination of the data on the record,
we continue to determine that critical
circumstances exist for all producers/
exporters of yarn from China in the final
determination. For comments regarding
critical circumstances, see Issues and
Decisions Memorandum.
Verification
khammond on DSKJM1Z7X2PROD with NOTICES
verification of the questionnaire
responses submitted by Fujian Billion
and the Government of China (GOC).10
We used standard verification
procedures, including an examination of
relevant accounting and financial
records, and original source documents.
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Facts Otherwise Available and Adverse
Inferences’’ in the Issues and Decision
Memorandum.
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties,
minor corrections presented at
verification, and our verification
findings, we made certain changes to
Fujian Billion’s subsidy rate
calculations. Commerce has also revised
the adverse facts available (AFA) rate
and the all-others rate. For a discussion
of these changes, see the Issues and
Decision Memorandum.
Final Determination
In accordance with section
705(c)(l)(B)(i) of the Act, we calculated
a rate for Fujian Billion, a producer/
exporter of subject merchandise selected
for individual examination in this
investigation. Commerce assigned rates
based entirely on facts otherwise
available with adverse inferences
pursuant to section 776 of the Act to
Shenghong Fiber and Garmant.
Section 705(c)(5)(A) of the Act
provides that in the final 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 assigned rates based
entirely on facts available for
Shenghong Fiber and its cross-owned
affiliates, and Garmant. Therefore, the
only rate that is not zero, de minimis,
or based entirely on facts otherwise
available is the rate calculated for Fujian
Billion. Consequently, the rate
calculated for Fujian Billion is also
assigned as the rate for all other
producers and exporters.
Commerce determines that the
following estimated countervailable
subsidy rates exist:
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Federal Register / Vol. 84, No. 223 / Tuesday, November 19, 2019 / Notices
Subsidy rate
(percent)
Company
Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd 12 .................................................................................................
Suzhou Shenghong Fiber Co., Ltd 13 ..................................................................................................................................................
Suzhou Shenghong Garmant Development Co ..................................................................................................................................
All Others .............................................................................................................................................................................................
Disclosure
We intend to disclose to parties in
this proceeding the calculations
performed for this final determination
within five days of the date of
publication of this notice, in accordance
with 19 CFR 351.224(b).
khammond on DSKJM1Z7X2PROD with NOTICES
Continuation of Suspension of
Liquidation
As a result of our Preliminary
Determination and pursuant to section
703(d)(1)(B) and (d)(2) of the Act, we
instructed 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 February 2, 2019,
which is 90 days before 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 CVD purposes for subject
merchandise entered, or withdrawn
from warehouse, on or after August 31,
2019, but to continue the suspension of
liquidation of all entries from February
2, 2019 through August 30, 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 determines that
material injury, or threat of material
12 As discussed in the PDM, Commerce has found
the following companies to be cross-owned with
Fujian Billion: (1) Billion Development (Hong
Kong) Limited and (2) Billion Industrial Investment
Limited.
13 As discussed in the PDM, Commerce has found
the following companies to be cross-owned with
Suzhou Shenghong Fiber Co., Ltd.: (1) Jiangsu
Zhonglu Technology Development Co., Ltd., (2)
Jiangsu Guowang High-Technique Fiber Co., Ltd.,
(3) Jiangsu Shenghong Science and Technology Co.,
Ltd., (4) Jiangsu Honggang Petrochemical Co., Ltd.,
(5) Shenghong Group Co., Ltd., (6) Shenghong
Holding Group, Co., Ltd., (7) Shenghong (Suzhou)
Group Co., Ltd., (8) Jiangsu Shenghong Investment
Development Co., Ltd., (9) Jiangsu Shenghong New
Material Co., Ltd., and (10) Jiangsu Shenghong
Textile Imp & Exp Co. and its successor Jiangsu
Huahui Import and Export Co., Ltd.
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16:47 Nov 18, 2019
Jkt 250001
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. In addition, we are
making available to the ITC all nonprivileged and non-proprietary
information related to this investigation.
We will allow the ITC access to all
privileged and business proprietary
information in our files, provided the
ITC confirms that it will not disclose
such information, either publicly or
under an administrative protective order
(APO), without the written consent of
the Assistant Secretary for Enforcement
and Compliance.
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 an 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 violation which is subject to
sanction.
Notification to Interested Parties
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act and 19 CFR
351.210(c).
Dated: November 13, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
Appendix I—Scope of the Investigation
The merchandise covered by this
investigation, polyester textured yarn, is
synthetic multifilament yarn that is
manufactured from polyester (polyethylene
terephthalate). Polyester textured yarn is
produced through a texturing process, which
imparts special properties to the filaments of
the yarn, including stretch, bulk, strength,
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63847
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32.18
473.09
472.51
32.18
moisture absorption, insulation, and the
appearance of a natural fiber. This scope
includes all forms of polyester textured yarn,
regardless of surface texture or appearance,
yarn density and thickness (as measured in
denier), number of filaments, number of
plies, finish (luster), cross section, color, dye
method, texturing method, or packing
method (such as spindles, tubes, or beams).
Excluded from the scope of this
investigation is bulk continuous filament
yarn that: (a) Is polyester synthetic
multifilament yarn; (b) has denier size ranges
of 900 and above; (c) has turns per meter of
40 and above; and (d) has a maximum
shrinkage of 2.5 percent.
The merchandise subject to this
investigation is properly classified under
subheadings 5402.33.3000 and 5402.33.6000
of the Harmonized Tariff Schedule of the
United States (HTSUS). Merchandise subject
to this investigation may also enter under
HTSUS subheading 5402.52.00. Although the
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the scope of the
investigation is dispositive.
Appendix II—List of Topics Discussed
in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and
Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
General Issues
Comment 1: Whether it is Unlawful to
Investigate Uninitiated Programs
Comment 2: Whether it is Appropriate to
Collect Cash Deposits on Entries Subject
to Preliminary Affirmative Critical
Circumstances
Comment 3: Whether Commerce Must
Consider 301 Duties in a Critical
Circumstances Determination
Program-Specific Issues
Comment 4: Export Buyer’s Credit (EBC)
Program
4a. Whether to Continue to Apply AFA to
EBC Program
4b. The Appropriate AFA Rate for the EBC
Program
Comment 5: Provision of Monoethylene
Glycol (MEG) and Purified Terephthalic
Acid (PTA) for Less Than Adequate
Renumeration (LTAR)
5.a. Whether MEG and PTA Producers are
Authorities
5.b. Whether MEG and PTA are Specific to
the Polyester Textured Yarn Industry
5.c. Whether Commerce used the Correct
Benchmark to Determine Remuneration
for MEG and PTA
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Federal Register / Vol. 84, No. 223 / Tuesday, November 19, 2019 / Notices
Comment 6: Provision of Electricity for
LTAR
6.a. Whether the Provision of Electricity is
Countervailable
6.b. Whether the Record Supports
Applying AFA to Find Electricity for
LTAR
Comment 7: Whether the GOC Provided
Countervailable Policy Loans During the
POI
Company-Specific Issues
Comment 8: Whether Application of AFA
for Shenghong Fiber is Warranted
Comment 9: Whether Commerce’s
Calculation of the AFA Rate is
Unreasonable
Comment 10: Calculation of Fujian
Billion’s Benefit of Electricity for LTAR
Comment 11: Calculation of Fujian
Billion’s Benefit for Tax Deduction for
Research and Development (R&D)
Expenses
Comment 12: Calculation of the Benefit for
Fujian Billion’s Import Tariff and Value
Added Tax (VAT) Exemptions on
Imported Equipment
VII. Recommendation
[FR Doc. 2019–25041 Filed 11–18–19; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–533–886]
Polyester Textured Yarn From India:
Final Affirmative Countervailing Duty
Determination
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
polyester textured yarn (yarn) from
India.
DATES: Applicable November 19, 2019.
FOR FURTHER INFORMATION CONTACT:
Janae Martin or Jesus Saenz, AD/CVD
Operations, Office VIII, Enforcement
and Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–0238 or (202) 482–8184,
respectively.
SUPPLEMENTARY INFORMATION:
khammond on DSKJM1Z7X2PROD with NOTICES
AGENCY:
Background
On May 3, 2019, Commerce published
in the Federal Register the Preliminary
Determination.1 On June 12, 2019,
1 See Polyester Textured Yarn from India:
Preliminary Affirmative Countervailing Duty
Determination, and Alignment of Final
Determination with Final Antidumping Duty
Determination, 84 FR 19036 (May 3, 2019)
(Preliminary Determination).
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Commerce also published the Amended
Preliminary Determination in the
Federal Register.2 On August 22, 2019,
Commerce issued its Post-Preliminary
Analysis.3 The selected mandatory
respondents in this investigation are JBF
Industries Limited (JBF) and Reliance
Industries Limited (Reliance). In the
Preliminary Determination, in
accordance with section 705(a)(1) of the
Act and 19 CFR 351.210(b)(4),
Commerce aligned the final
countervailing duty (CVD)
determination with the final
antidumping duty (AD) determination.
The revised deadline for the final
determination of this investigation is
now November 13, 2019.
A summary of the events that
occurred since Commerce published the
Preliminary Determination, as well as a
full discussion of the issues raised by
parties for this final determination, may
be found in the Issues and Decision
Memorandum issued concurrently with
this notice.4 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 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 Issues and
Decision Memorandum can be accessed
directly at https://enforcement.trade.gov/
frn/. The signed and electronic versions
of the Issues and Decision
Memorandum are identical in content.
Period of Investigation
The period of investigation (POI) is
April 1, 2017 through March 31, 2018.
Scope of the Investigation
The product covered by this
investigation is polyester textured yarn
from India. For a full description of the
scope of this investigation, see the
‘‘Scope of the Investigation’’ in
Appendix I.
2 See Polyester Textured Yarn From India:
Amended Preliminary Determination of
Countervailing Duty Determination, 84 FR 27240
(June 12, 2019) (Amended Preliminary
Determination).
3 See Memorandum, ‘‘Post-Preliminary Analysis
of Countervailing Duty Investigation of Polyester
Textured Yarn from India,’’ dated August 22, 2019
(Post-Preliminary Analysis).
4 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Affirmative
Determination of the Countervailing Duty
Investigation of Polyester Textured Yarn from
India,’’ dated concurrently with this determination
and hereby adopted by this notice (Issues and
Decision Memorandum).
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Scope Comments
During the course of this investigation
and the concurrent AD investigation of
yarn from India, and concurrent AD and
CVD investigations of yarn from China,
certain interested parties commented on
the scope of the investigation as it
appeared in the Initiation Notice.5
Commerce addressed these comments in
the Preliminary Determination, wherein
Commerce preliminarily modified the
scope language as it appeared in the
Initiation Notice to exclude bulk
continuous filament yarn.6 No
interested parties commented on the
preliminary exclusion of bulk
continuous filament yarn. Thus, we
have made no changes to the scope
language from the Preliminary
Determination with regard to bulk
continuous filament yarn.
On May 2, 2019, the petitioners 7
requested that Commerce include an
additional Harmonized Tariff Schedule
of the United States (HTSUS)
subheading in the scope language.8
Specifically, the petitioners requested
that Commerce add HTSUS 5402.52.00
covering twisted yarn to the scope of the
investigations.9 As no interested parties
rebutted the petitioners’ request to add
this HTSUS subheading, and Commerce
finds that the petitioners’ request is
reasonable, we have revised the scope of
the investigations to include HTSUS
5402.52.00. See Appendix I for the final
scope of the investigation.
Verification
As provided in section 782(i) of the
Tariff Act of 1930, as amended (the Act),
in July 2019, we conducted verification
of the questionnaire responses
submitted by JBF, Reliance, and the
Government of India (GOI).10 We used
standard verification procedures,
including an examination of relevant
5 See Polyester Textured Yarn from India and the
People’s Republic of China: Initiation of Less-ThanFair-Value Investigations, 83 FR 58223, 58233
(November 19, 2018) (Initiation Notice).
6 See Preliminary Determination at 19037.
7 Unifi Manufacturing, Inc., and Nan Ya Plastics
Corporation, America are collectively the
petitioners.
8 See Petitioner’s Comments, ‘‘Request to Include
HTSUS Subheading 5402.52 in the Scope of These
Investigations,’’ dated May 2, 2019 (Petitioners’
Scope Request).
9 See Petitioners’ Scope Request.
10 See Memoranda, ‘‘Verification of the
Questionnaire Responses of JBF Industries Limited:
Countervailing Duty Investigation of Polyester
Textured Yarn from India,’’ dated August 22, 2019;
‘‘Verification of the Questionnaire Responses of
Reliance Industries Limited: Countervailing Duty
Investigation of Polyester Textured Yarn from
India,’’ dated August 22, 2019; and ‘‘Verification of
the Questionnaire Responses of the Government of
India: Countervailing Duty Investigation of
Polyester Textured Yarn from India,’’ dated August
22, 2019.
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]]>Agencies
[Federal Register Volume 84, Number 223 (Tuesday, November 19, 2019)]
[Notices]
[Pages 63845-63848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25041]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-098]
Polyester Textured Yarn 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 polyester textured yarn (yarn) from the People's Republic of China
(China).
DATES: Applicable November 19, 2019.
FOR FURTHER INFORMATION CONTACT: Joseph Dowling or Robert Palmer, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-1646 or (202)
482-9068, respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 3, 2019, Commerce published in the Federal Register the
Preliminary Determination.\1\ The selected mandatory respondents in
this investigation are Fujian Billion Polymerization Fiber Technology
Industrial Co., Ltd. (Fujian Billion), Suzhou Shenghong Fiber Co., Ltd.
(Shenghong Fiber), and Suzhou Shenghong Garmant Development Co.
(Garmant). In the Preliminary Determination, in accordance with section
705(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR
351.210(b)(4), Commerce aligned the final countervailing duty (CVD)
determination with the final antidumping duty (AD) determination. The
revised deadline for the final determination of this investigation is
now November 13, 2019. On August 22, 2019, Commerce issued its Post-
Preliminary Analysis.\2\
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\1\ See Polyester Textured Yarn from the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination,
and Alignment of Final Determination with Final Antidumping Duty
Determination, 84 FR 19040 (May 3, 2019) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis of
Countervailing Duty Investigation of Polyester Textured Yarn from
India,'' dated August 22, 2019 (Post-Preliminary Analysis).
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, may be found in the
Issues and Decision Memorandum.\3\ 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
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 Issues and Decision Memorandum can be accessed
directly at https://enforcement.trade.gov/frn/. The signed and
electronic versions of the Issues and Decision Memorandum are identical
in content.
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\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Polyester Textured Yarn from the People's Republic
of China,'' dated concurrently with, and hereby adopted by this
notice (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation (POI) is January 1, 2017 through
December 31, 2017.
Scope of the Investigation
The products covered by this investigation are yarn from China. For
a complete description of the scope of this investigation, see the
``Scope of the Investigation'' in Appendix I.
Scope Comments
During the course of this investigation and the concurrent AD
investigation of yarn from China, and concurrent AD and CVD
investigations of yarn from India, certain interested parties commented
on the scope of the investigations as it appeared in the Initiation
Notice.\4\ Commerce addressed
[[Page 63846]]
these comments in the Preliminary Determination, wherein Commerce
preliminarily modified the scope language as it appeared in the
Initiation Notice to exclude bulk continuous filament yarn.\5\ No
interested parties commented on the preliminary exclusion of bulk
continuous filament yarn. Thus, we have made no changes to the scope
language from the Preliminary Determination with regard to bulk
continuous filament yarn.
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\4\ See Polyester Textured Yarn from India and the People's
Republic of China: Initiation of Less-Than-Fair-Value
Investigations, 83 FR 58223, 58233 (November 19, 2018) (Initiation
Notice).
\5\ See Preliminary Determination, 84 FR at 19041.
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On May 2, 2019, the petitioners \6\ requested that Commerce include
an additional Harmonized Tariff Schedule of the United States (HTSUS)
subheading in the scope language.\7\ Specifically, the petitioners
requested that Commerce add HTSUS 5402.52.00 covering twisted yarn to
the scope of the investigations.\8\ As no interested parties rebutted
the petitioners' request to add this HTSUS subheading, and Commerce
finds the petitioners' request is reasonable, we have revised the scope
of the investigations to include HTSUS 5402.52.00. See Appendix I for
the final scope of the investigation.
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\6\ Unifi Manufacturing, Inc., and Nan Ya Plastics Corporation,
America, collectively, the petitioners.
\7\ See Petitioners' Comments, ``Request to Include HTSUS
Subheading 5402.52 in the Scope of These Investigations,'' dated May
2, 2019 (Petitioners' Comments).
\8\ See Petitioners' Comments.
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Final Affirmative Determination of Critical Circumstances
In accordance with section 703(e)(1)(B) of the Act, Commerce
preliminarily determined that critical circumstances existed for all
imports of yarn from China.\9\ Based our examination of the data on the
record, we continue to determine that critical circumstances exist for
all producers/exporters of yarn from China in the final determination.
For comments regarding critical circumstances, see Issues and Decisions
Memorandum.
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\9\ See Preliminary Determination PDM at 6.
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Verification
As provided in section 782(i) of the Act, in July 2019, we
conducted verification of the questionnaire responses submitted by
Fujian Billion and the Government of China (GOC).\10\ We used standard
verification procedures, including an examination of relevant
accounting and financial records, and original source documents.
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\10\ See Commerce Memoranda, ``Verification of the Questionnaire
Responses of Fujian Billion Polymerization Fiber Technology
Industrial Co., Ltd and Billion Development (Hong Kong) Limited,''
dated August 5, 2019; and ``Verification of the Questionnaire
Responses of the Government of the People's Republic of China,''
dated August 5, 2019.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised, and to which we responded in the Issues and
Decision Memorandum, is attached to this notice at 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.
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\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.
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In making this final determination, Commerce relied, in part, on
facts available pursuant to section 776(a) of the Act. Additionally, as
discussed in the Issues and Decision Memorandum, because one or more
respondents did not act to the best of their ability in responding to
our requests for information, we drew adverse inferences, where
appropriate, in selecting from among the facts otherwise available,
pursuant to section 776(b) of the Act. For further information, see the
section ``Use of Facts Otherwise Available and Adverse Inferences'' in
the Issues and Decision Memorandum.
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, minor corrections presented at verification, and our
verification findings, we made certain changes to Fujian Billion's
subsidy rate calculations. Commerce has also revised the adverse facts
available (AFA) rate and the all-others rate. For a discussion of these
changes, see the Issues and Decision Memorandum.
Final Determination
In accordance with section 705(c)(l)(B)(i) of the Act, we
calculated a rate for Fujian Billion, a producer/exporter of subject
merchandise selected for individual examination in this investigation.
Commerce assigned rates based entirely on facts otherwise available
with adverse inferences pursuant to section 776 of the Act to Shenghong
Fiber and Garmant.
Section 705(c)(5)(A) of the Act provides that in the final
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 assigned rates based
entirely on facts available for Shenghong Fiber and its cross-owned
affiliates, and Garmant. Therefore, the only rate that is not zero, de
minimis, or based entirely on facts otherwise available is the rate
calculated for Fujian Billion. Consequently, the rate calculated for
Fujian Billion is also assigned as the rate for all other producers and
exporters.
Commerce determines that the following estimated countervailable
subsidy rates exist:
[[Page 63847]]
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Subsidy rate
Company (percent)
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Fujian Billion Polymerization Fiber Technology 32.18
Industrial Co., Ltd \12\...............................
Suzhou Shenghong Fiber Co., Ltd \13\.................... 473.09
Suzhou Shenghong Garmant Development Co................. 472.51
All Others.............................................. 32.18
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Disclosure
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\12\ As discussed in the PDM, Commerce has found the following
companies to be cross-owned with Fujian Billion: (1) Billion
Development (Hong Kong) Limited and (2) Billion Industrial
Investment Limited.
\13\ As discussed in the PDM, Commerce has found the following
companies to be cross-owned with Suzhou Shenghong Fiber Co., Ltd.:
(1) Jiangsu Zhonglu Technology Development Co., Ltd., (2) Jiangsu
Guowang High-Technique Fiber Co., Ltd., (3) Jiangsu Shenghong
Science and Technology Co., Ltd., (4) Jiangsu Honggang Petrochemical
Co., Ltd., (5) Shenghong Group Co., Ltd., (6) Shenghong Holding
Group, Co., Ltd., (7) Shenghong (Suzhou) Group Co., Ltd., (8)
Jiangsu Shenghong Investment Development Co., Ltd., (9) Jiangsu
Shenghong New Material Co., Ltd., and (10) Jiangsu Shenghong Textile
Imp & Exp Co. and its successor Jiangsu Huahui Import and Export
Co., Ltd.
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We intend to disclose to parties in this proceeding the
calculations performed for this final determination within five days of
the date of publication of this notice, in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we instructed 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
February 2, 2019, which is 90 days before 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 CVD purposes for subject
merchandise entered, or withdrawn from warehouse, on or after August
31, 2019, but to continue the suspension of liquidation of all entries
from February 2, 2019 through August 30, 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 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. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
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 an 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 violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act and 19 CFR 351.210(c).
Dated: November 13, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation, polyester
textured yarn, is synthetic multifilament yarn that is manufactured
from polyester (polyethylene terephthalate). Polyester textured yarn
is produced through a texturing process, which imparts special
properties to the filaments of the yarn, including stretch, bulk,
strength, moisture absorption, insulation, and the appearance of a
natural fiber. This scope includes all forms of polyester textured
yarn, regardless of surface texture or appearance, yarn density and
thickness (as measured in denier), number of filaments, number of
plies, finish (luster), cross section, color, dye method, texturing
method, or packing method (such as spindles, tubes, or beams).
Excluded from the scope of this investigation is bulk continuous
filament yarn that: (a) Is polyester synthetic multifilament yarn;
(b) has denier size ranges of 900 and above; (c) has turns per meter
of 40 and above; and (d) has a maximum shrinkage of 2.5 percent.
The merchandise subject to this investigation is properly
classified under subheadings 5402.33.3000 and 5402.33.6000 of the
Harmonized Tariff Schedule of the United States (HTSUS). Merchandise
subject to this investigation may also enter under HTSUS subheading
5402.52.00. Although the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
scope of the investigation is dispositive.
Appendix II--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
General Issues
Comment 1: Whether it is Unlawful to Investigate Uninitiated
Programs
Comment 2: Whether it is Appropriate to Collect Cash Deposits on
Entries Subject to Preliminary Affirmative Critical Circumstances
Comment 3: Whether Commerce Must Consider 301 Duties in a
Critical Circumstances Determination
Program-Specific Issues
Comment 4: Export Buyer's Credit (EBC) Program
4a. Whether to Continue to Apply AFA to EBC Program
4b. The Appropriate AFA Rate for the EBC Program
Comment 5: Provision of Monoethylene Glycol (MEG) and Purified
Terephthalic Acid (PTA) for Less Than Adequate Renumeration (LTAR)
5.a. Whether MEG and PTA Producers are Authorities
5.b. Whether MEG and PTA are Specific to the Polyester Textured
Yarn Industry
5.c. Whether Commerce used the Correct Benchmark to Determine
Remuneration for MEG and PTA
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Comment 6: Provision of Electricity for LTAR
6.a. Whether the Provision of Electricity is Countervailable
6.b. Whether the Record Supports Applying AFA to Find
Electricity for LTAR
Comment 7: Whether the GOC Provided Countervailable Policy Loans
During the POI
Company-Specific Issues
Comment 8: Whether Application of AFA for Shenghong Fiber is
Warranted
Comment 9: Whether Commerce's Calculation of the AFA Rate is
Unreasonable
Comment 10: Calculation of Fujian Billion's Benefit of
Electricity for LTAR
Comment 11: Calculation of Fujian Billion's Benefit for Tax
Deduction for Research and Development (R&D) Expenses
Comment 12: Calculation of the Benefit for Fujian Billion's
Import Tariff and Value Added Tax (VAT) Exemptions on Imported
Equipment
VII. Recommendation
[FR Doc. 2019-25041 Filed 11-18-19; 8:45 am]
BILLING CODE 3510-DS-P
