Polyester Textured Yarn From India: Final Affirmative Countervailing Duty Determination, 63848-63850 [2019-25084]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 84, Number 223 (Tuesday, November 19, 2019)]
[Notices]
[Pages 63848-63850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25084]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-886]


Polyester Textured Yarn From India: Final Affirmative 
Countervailing Duty Determination

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 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:

Background

    On May 3, 2019, Commerce published in the Federal Register the 
Preliminary Determination.\1\ On June 12, 2019, 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.
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    \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).
    \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).
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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 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.
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    \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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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.

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.
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    \5\ 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).
    \6\ See Preliminary Determination at 19037.
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    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.
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    \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.
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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

[[Page 63849]]

accounting and financial records, and original source documents.
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    \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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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.\12\ For further information, see 
the section ``Use of Facts Otherwise Available and Adverse Inferences'' 
in the accompanying Issues and Decision Memorandum.
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    \12\ See Issues and Decision Memorandum at ``Use of Facts 
Otherwise Available and Adverse Inferences'' section.
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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 JBF's and Reliance's 
subsidy rate calculations. Commerce has also revised 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 rates for JBF and Reliance, the producers/exporters of 
subject merchandise selected for individual examination in this 
investigation.
    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 calculated individual estimated 
countervailable subsidy rates for both JBF and Reliance that are not 
zero, de minimis, or based entirely on facts otherwise available. 
Commerce calculated the all-others rate using a weighted average of the 
individual estimated subsidy rates calculated for the examined 
respondents using each company's publicly-ranged values for the 
merchandise under consideration.\13\
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    \13\ See Memorandum, ``Calculation of the All-Others Rate for 
the Final Determination,'' dated concurrently with this notice.
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    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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JBF Industries Limited......................................       21.83
Reliance Industries Limited.................................        4.29
All Others..................................................        4.65
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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).

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 or 
after the date of publication of the Preliminary Determination in the 
Federal Register. In accordance with section 703(d) of the Act, we 
issued instructions to CBP to discontinue the suspension of liquidation 
for 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 May 3, 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).


[[Page 63850]]


    Dated: November 13, 2019.
Jeffery 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. Subsidies Valuation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether to Revise the All Other's Rate
    Comment 2: Whether the New Subsidy Allegations Were 
Appropriately Initiated
    Comment 3: Whether to Countervail the Advanced Authorization 
(AAP), Duty Drawback (DDB), and Export Promotion of Capital Goods 
Scheme (EPCGS) Programs
    Comment 4: Whether to Countervail the Merchandise Export 
Incentive Scheme (MEIS) Program
    Comment 5: Whether Certain Subsidies Are Tied to Subject 
Merchandise or Non-Subject Merchandise
    Comment 6: Whether Upstream Subsidy Provisions Are Applicable to 
Subsidies Provided Directly to Mandatory Respondents
    Comment 7: Whether the Government of India (GOI) Failed to 
Cooperate to the Best of Its Ability
    Comment 8: Whether the SEZ Import Duty Exemption Is 
Countervailable
    Comment 9: Whether to Recalculate the Benefits from the EPCGS 
Program and the SEZ Import Duty Exemption Program
    Comment 10: Whether to Apply Adverse Facts Available (AFA) to 
Reliance's Unreported Benefits from the SGOG Electricity Program
    Comment 11: Whether to Apply Different Benchmarks in the 
Calculation of Land Benefits Received by Reliance Under the Gujarat 
Industrial Development Corporation (GIDC)
    Comment 12: State Government of Gujarat (SGOG) Provision of 
Water for Less Than Adequate Renumeration (LTAR)
    Comment 13: Whether the Reliance Verification Report Contains 
Errors
    Comment 14: Whether JBF Received a Benefit Under the State and 
Union Territory Sales Tax Incentive Program (State and Union 
Territory Sales Tax Program)
    Comment 15: Whether to Countervail the GOI Policy Lending and 
GOI Export Financing Programs and Whether to Revise the Calculation 
of Benefits Received by JBF Under These Programs
    Comment 16: Whether to Apply AFA to JBF' Reporting of Subject 
Merchandise and Whether to Revise the Calculation of Benefits 
Received Under the DDB Program
    Comment 17: Whether to Accept JBF's Ministerial Error Comments
    Comment 18: Whether to Accept JBF's Minor Corrections Regarding 
the AAP Program
VII. Recommendation

[FR Doc. 2019-25084 Filed 11-18-19; 8:45 am]
BILLING CODE 3510-DS-P