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]

Download as PDF 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 khammond on DSKJM1Z7X2PROD with NOTICES 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 VerDate Sep<11>2014 16:47 Nov 18, 2019 Jkt 250001 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). PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 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 http://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 http://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- E:\FR\FM\19NON1.SGM Continued 19NON1 63846 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. VerDate Sep<11>2014 16:47 Nov 18, 2019 Jkt 250001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 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: E:\FR\FM\19NON1.SGM 19NON1 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. VerDate Sep<11>2014 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, PO 00000 Frm 00011 Fmt 4703 63847 Sfmt 4703 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 E:\FR\FM\19NON1.SGM 19NON1 63848 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). VerDate Sep<11>2014 16:47 Nov 18, 2019 Jkt 250001 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 http://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 http://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). PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 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. E:\FR\FM\19NON1.SGM 19NON1

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]


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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 
http://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 http://enforcement.trade.gov/frn/. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.
---------------------------------------------------------------------------

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

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

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

    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]]



------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
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
------------------------------------------------------------------------

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

    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

[[Page 63848]]

    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