Certain Corrosion Inhibitors From the People's Republic of China: Initiation of Countervailing Duty Investigation, 12502-12506 [2020-04342]

Download as PDF 12502 Federal Register / Vol. 85, No. 42 / Tuesday, March 3, 2020 / Notices lotter on DSKBCFDHB2PROD with NOTICES Postponement of Final Determination and Extension of Provisional Measures Section 735(a)(2) of the Act provides that a final determination may be postponed until not later than 135 days after the date of the publication of the preliminary determination if, in the event of an affirmative preliminary determination, a request for such postponement is made by exporters who account for a significant proportion of exports of the subject merchandise, or in the event of a negative preliminary determination, a request for such postponement is made by the petitioner. Section 351.210(e)(2) of Commerce’s regulations requires that a request by exporters for postponement of the final determination be accompanied by a request for extension of provisional measures from a four-month period to a period not more than six months in duration. On February 18, 2020, pursuant to 19 CFR 351.210(e), JYC requested that, contingent upon an affirmative preliminary determination of sales at LTFV, Commerce postpone the final determination and that provisional measures be extended to a period not to exceed six months. In addition, on February 14, 2020, the petitioners 8 requested that Commerce fully postpone the deadline for the final determination in this investigation. In accordance with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary determination is affirmative; (2) the requesting exporters account for a significant proportion of exports of the subject merchandise; and (3) no compelling reasons for denial exist, Commerce is postponing the final determination and extending the provisional measures from a four-month period to a period not greater than six months. Accordingly, Commerce will make its final determination no later than 135 days after the date of publication of this preliminary determination. International Trade Commission (ITC) Notification In accordance with section 733(f) of the Act, Commerce will notify the ITC of its preliminary determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether subject imports are materially injuring, or threaten material injury to, the U.S. industry. 8 The petitioners are Advanced Extrusion Inc., ExTech Plastics, Inc., and Multi-Plastics Extrusions, Inc. VerDate Sep<11>2014 17:19 Mar 02, 2020 Jkt 250001 Notification to Interested Parties This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c). Dated: February 25, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix I—Scope of the Investigation The merchandise covered by this investigation is raw, pretreated, or primed polyethylene terephthalate sheet, whether extruded or coextruded, in nominal thicknesses of equal to or greater than 7 mil (0.007 inches or 177.8 mm) and not exceeding 45 mil (0.045 inches or 1,143 mm) (PET sheet). The scope includes all PET sheet whether made from prime (virgin) inputs or recycled inputs, as well as any blends thereof. The scope includes all PET sheet meeting the above specifications regardless of width, color, surface treatment, coating, lamination, or other surface finish. The merchandise subject to this investigation is properly classified under statistical reporting number 3920.62.0090 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS statistical reporting number is provided for convenience and customs purposes, the written description of the merchandise is dispositive. Appendix II—List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Period of Investigation IV. Scope Comments V. Postponement of Final Determination and Extension of Provisional Measures VI. Application of Facts Available and Use of Adverse Inference VII. Discussion of the Methodology VIII. Date of Sale IX. Product Comparisons X. Constructed Export Price XI. Normal Value XII. Currency Conversion XIII. Recommendation [FR Doc. 2020–04344 Filed 3–2–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–123] Certain Corrosion Inhibitors From the People’s Republic of China: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable February 25, 2020. FOR FURTHER INFORMATION CONTACT: Theodore Pearson or Nicholas AGENCY: PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 Czajkowski, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–2631 or (202) 482–1395, respectively. SUPPLEMENTARY INFORMATION: The Petition On February 5, 2020, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition (Petition) concerning imports of certain corrosion inhibitors (corrosion inhibitors) from the People’s Republic of China (China), filed in proper form on behalf of Wincom Incorporated (the petitioner). The CVD Petition was accompanied by an antidumping duty (AD) Petition concerning imports of corrosion inhibitors from China.1 On February 10, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petitions.2 The petitioner filed responses to these requests on February 14, 2020.3 On February 14, 2020, Commerce requested additional supplemental information pertaining to the CVD investigation.4 On February 18, 2020, the petitioner responded to this request.5 On February 19, 2020, Commerce requested additional supplemental information pertaining to the CVD investigation.6 On February 21, 2020, the petitioner responded to the 1 See Petitioner’s Letter, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Certain Corrosion Inhibitors from China,’’ dated February 5, 2020 (the Petitions). 2 See Commerce’s Letter, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Certain Corrosion Inhibitors from the People’s Republic of China: Supplemental Questions,’’ dated February 10, 2020 (General Issues Questionnaire); see also Commerce’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Certain Corrosion Inhibitors from the People’s Republic of China: Supplemental Questions,’’ dated February 10, 2020. 3 See Petitioner’s Letter, ‘‘Certain Corrosion Inhibitors from the People’s Republic of China: Responses to Supplemental Questions (Volume I),’’ dated February 14, 2020 (General Issues Supplement); see also Petitioner’s Letter, ‘‘Certain Corrosion Inhibitors from the People’s Republic of China: Responses to Supplemental Questions (Volume III),’’ dated February 14, 2020 (CVD Supplement). 4 See Commerce’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Certain Corrosion Inhibitors from the People’s Republic of China: Supplemental Questions,’’ dated February 14, 2020. 5 See Petitioner’s Letter, ‘‘Certain Corrosion Inhibitors from the People’s Republic of China: Responses to Second Supplemental Questions (Volume III),’’ dated February 18, 2020. 6 See Commerce’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Certain Corrosion Inhibitors from the People’s Republic of China: Supplemental Questions,’’ dated February 19. 2020. E:\FR\FM\03MRN1.SGM 03MRN1 Federal Register / Vol. 85, No. 42 / Tuesday, March 3, 2020 / Notices request.7 On February 21, 2020, Commerce received comments on industry support from SUEZ WTS USA Inc. (Suez), an importer of the subject merchandise.8 The petitioner responded to Suez’s industry support comments on February 24, 2020.9 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that the Government of China (GOC) is providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of corrosion inhibitors in China, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing corrosion inhibitors in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating a CVD investigation, the Petition was accompanied by information reasonably available to the petitioner supporting its allegations. Commerce finds that the petitioner filed the Petition on behalf of the domestic industry because the petitioner is an interested party, as defined in sections 771(9)(C) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested CVD investigation.10 Period of Investigation Because the Petition was filed on February 5, 2020, the period of investigation (POI) is January 1, 2019 through December 31, 2019.11 Scope of the Investigation The merchandise covered by this investigation is corrosion inhibitors from China. For a full description of the scope of this investigation, see the Appendix to this notice. lotter on DSKBCFDHB2PROD with NOTICES Comments on Scope of the Investigation Commerce requested further information from the petitioner regarding the proposed scope to ensure that the scope language in the Petition 7 See Petitioner’s Letter, ‘‘Certain Corrosion Inhibitors from the People’s Republic of China: Third Supplemental Questionnaire Response (Volume III),’’ dated February 21, 2020. 8 See Suez’s Letter, ‘‘Certain Corrosion Inhibitors from the People’s Republic of China: Industry Support Comments on the Petitions for Antidumping and Countervailing Duties and Request to Poll Industry,’’ dated February 21, 2020. 9 See Petitioner’s Letter, ‘‘Certain Corrosion Inhibitors from the People’s Republic of China: Petitioner’s Response to Comments From SUEZ WTS USA, Inc. Regarding Industry Support,’’ dated February 24, 2020. 10 See ‘‘Determination of Industry Support for the Petition’’ section, infra. 11 See 19 CFR 351.204(b)(2). VerDate Sep<11>2014 17:19 Mar 02, 2020 Jkt 250001 is an accurate reflection of the products for which the domestic industry is seeking relief.12 As a result, the petitioner modified the scope of the Petition to clarify the description of the merchandise covered by the Petition.13 The description of the merchandise covered by this investigation, as described in the Appendix to this notice, reflects these clarifications. As discussed in the Preamble to Commerce’s regulations, we are setting aside a period for interested parties to raise issues regarding product coverage (scope).14 Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information,15 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit scope comments by 5:00 p.m. Eastern Time (ET) on March 16, 2020, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on March 26, 2020, which is 10 calendar days from the initial comment deadline.16 Commerce requests that any factual information the parties consider relevant to the scope of the investigation be submitted during this time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party may contact Commerce and request permission to submit the additional information. All such comments must be filed on the record of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically using Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS).17 12 See General Issues Questionnaire at 3. General Issues Supplement at 2–4 and at Exhibit I–S1. 14 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 15 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 16 See 19 CFR 351.303(b). 17 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for details of Commerce’s electronic filing requirements, effective August 5, 2011. Information on using 13 See PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 12503 An electronically filed document must be received successfully in its entirety by the time and date it is due. Documents exempted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, and stamped with the date and time of receipt by the applicable deadlines. Consultations Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified the GOC of the receipt of the Petition and provided it the opportunity for consultations with respect to the Petition.18 The GOC did not request consultations. Determination of Industry Support for the Petition Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) At least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, Commerce shall: (i) Poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the ‘‘industry.’’ Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers as a whole of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs Commerce to look to producers and workers who produce the domestic like product. The International Trade Commission (ITC), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also ACCESS can be found at https://access.trade.gov/ help.aspx and a handbook can be found at https:// access.trade.gov/help/Handbook%20on%20 Electronic%20Filling%20Procedures.pdf. 18 See Commerce’s Letter, ‘‘Countervailing Duty Petition on Corrosion Inhibitors from the People’s Republic of China,’’ dated February 5, 2020. E:\FR\FM\03MRN1.SGM 03MRN1 12504 Federal Register / Vol. 85, No. 42 / Tuesday, March 3, 2020 / Notices determine what constitutes a domestic like product in order to define the industry. While both Commerce and the ITC must apply the same statutory definition regarding the domestic like product,19 they do so for different purposes and pursuant to a separate and distinct authority. In addition, Commerce’s determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law.20 Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioner does not offer a definition of the domestic like product distinct from the scope of the investigation.21 Based on our analysis of the information submitted on the record, we have determined that corrosion inhibitors, as defined in the scope, constitute a single domestic like product, and we have analyzed industry support in terms of that domestic like product.22 In determining whether the petitioner has standing under section 702(c)(4)(A) of the Act, we considered the industry support data contained in the Petition with reference to the domestic like product as defined in the ‘‘Scope of the Investigation,’’ in the appendix to this notice. To establish industry support, the petitioner provided its own production of the domestic like product in 2019, as well as 2019 production of its two toll producers, who also support lotter on DSKBCFDHB2PROD with NOTICES 19 See section 771(10) of the Act. 20 See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989)). 21 See Volume I of the Petition, at 11–14; see also General Issues Supplement at 4–8 and Exhibits I– S2 and I–S3. 22 For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see Countervailing Duty Investigation Initiation Checklist: Certain Corrosion Inhibitors from the People’s Republic of China (China CVD Initiation Checklist) at Attachment II, ‘‘Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Certain Corrosion Inhibitors from the People’s Republic of China’’ (Attachment II), dated concurrently with this notice and on file electronically via ACCESS. Access to documents filed via ACCESS is also available in the Central Records Unit, Room B8024 of the main Commerce building. VerDate Sep<11>2014 17:19 Mar 02, 2020 Jkt 250001 the Petition.23 The petitioner states that there are no other known producers of corrosion inhibitors in the United States; therefore, the Petition is supported by 100 percent of the U.S. industry.24 We relied on data provided by the petitioner for purposes of measuring industry support.25 Our review of the data provided in the Petition, the General Issues Supplement, and other information readily available to Commerce indicates that the petitioner has established industry support for the Petition.26 First, the Petition established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, Commerce is not required to take further action in order to evaluate industry support (e.g., polling).27 Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petition account for at least 25 percent of the total production of the domestic like product.28 Finally, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) who support the Petition account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition.29 Accordingly, Commerce determines that the Petition was filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act.30 Injury Test Because China is a ‘‘Subsidies Agreement Country’’ within the meaning of section 701(b) of the Act, 23 See Volume I of the Petition, at 3–4, 9, 14, and Exhibits I–12, I–14, and I–15; see also General Issues Supplement at 8–10 and Exhibits I–S4 and I–S8. 24 See Volume I of the Petition, at 3–4; see also General Issues Supplement, at 8–10 and Exhibits I– S4 and I–S8. 25 See Volume I of the Petition, at 3–4, and 9, and Exhibits I–12, I–14, and I–15; see also General Issues Supplement at 8–10 and Exhibits I–S4 and I–S8. For further discussion, see China CVD Initiation Checklist, at Attachment II. 26 See Volume I of the Petition, at 3–4, and 9, and Exhibits I–12, I–14, and I–15; see also General Issues Supplement at 8–10 and Exhibits I–S4 and I–S8. For further discussion, see China CVD Initiation Checklist, at Attachment II. 27 See section 702(c)(4)(D) of the Act; see also China CVD Initiation Checklist, at Attachment II. 28 See China CVD Initiation Checklist, at Attachment II. 29 Id. 30 Id. PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 section 701(a)(2) of the Act applies to these investigations. Accordingly, the ITC must determine whether imports of the subject merchandise from China materially injure, or threaten material injury to, a U.S. industry. Allegations and Evidence of Material Injury and Causation The petitioner alleges that imports of the subject merchandise are benefitting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product.31 In addition, the petitioner alleges that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.32 The petitioner contends that the industry’s injured condition is illustrated by a significant and increasing volume of subject imports; reduced market share; underselling and price depression or suppression; lost sales and revenues; a decline in the domestic industry’s financial performance; decline in production, capacity utilization, U.S. shipments, and net sales quantities; and impacts on employment-related indicators.33 We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as negligibility, and we have determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.34 Initiation of CVD Investigation Based upon the examination of the Petition on corrosion inhibitors from China, we find that the Petition meets the requirements of section 702 of the Act. Therefore, we are initiating a CVD investigation to determine whether imports of corrosion inhibitors from China benefit from countervailable subsidies conferred by the GOC. Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on 17 of the 18 alleged programs. For a full discussion of the basis for our decision 31 See Volume I of the Petitions at 1–2. at Exhibit I–11. 33 See Volume I of the Petitions, at 14–25 and Exhibits I–5, I–7 through I–15; see also Petitioner’s Letter, ‘‘Certain Corrosion Inhibitors from the People’s Republic of China: Responses to Supplemental Questions (Volume I),’’ dated February 14, 2020 (General Issues Supplement), at 10–13, and Exhibits I–S5, I–S6, and I–S7. 34 See China CVD Initiation Checklist, at Attachment III, ‘‘Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Certain Corrosion Inhibitors from the People’s Republic of China’’ (Attachment III). 32 Id. E:\FR\FM\03MRN1.SGM 03MRN1 Federal Register / Vol. 85, No. 42 / Tuesday, March 3, 2020 / Notices to initiate (or not initiate) on each program, see CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 65 days after the date of this initiation. lotter on DSKBCFDHB2PROD with NOTICES Respondent Selection The petitioner named nine companies in China as producers/exporters of corrosion inhibitors.35 Commerce intends to follow its standard practice in CVD investigations and calculate company-specific subsidy rates in this investigation. In the event Commerce determines that the number of companies is large and, it cannot individually examine each company based upon Commerce’s resources, where appropriate, Commerce intends to select mandatory respondents based on quantity and value (Q&V) questionnaires issued to the potential respondents. Commerce normally selects mandatory respondents in CVD investigations using U.S. Customs and Border Protection (CBP) entry data for U.S. imports under the appropriate Harmonized Tariff Schedule of the United States (HTSUS) numbers listed in the scope of the investigation. However, for this investigation, among the HTSUS numbers under which the subject merchandise would enter (2933.99.82.10, 2933.99.82.20, 2933.99.82.90), are basket categories under which non-subject merchandise may enter. Therefore, we cannot rely on CBP entry data in selecting respondents. We intend instead to issue Q&V questionnaires to each potential respondent for which the petitioner has provided a complete address. Exporters and producers of certain corrosion inhibitors from China that do not receive Q&V questionnaires by mail may still submit a response to the Q&V questionnaire and can obtain the Q&V questionnaire from the Enforcement and Compliance website at https://trade.gov/ enforcemnet/news.asp. Responses to the Q&V questionnaire must be submitted by the relevant Chinese producers/exporters no later than 5:00 p.m. ET on March 11, 2020. All Q&V responses must be filed electronically via ACCESS. An electronically filed document must be received successfully, in its entirety, by ACCESS no later than 5:00 p.m. ET on the deadline noted above. Commerce intends to finalize its decisions regarding respondent selection within 20 days of publication of this notice. Distribution of Copies of the Petition In accordance with section 702(b)(4)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the GOC via ACCESS. Furthermore, to the extent practicable, Commerce will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, as provided under 19 CFR 351.203(c)(2). ITC Notification Commerce will notify the ITC of its initiation, as required by section 702(d) of the Act. Preliminary Determination by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petition was filed, whether there is a reasonable indication that imports of corrosion inhibitors from China are materially injuring or threatening material injury to a U.S. industry.36 A negative ITC determination will result in the investigation being terminated.37 Otherwise, this CVD investigation will proceed according to statutory and regulatory time limits. Submission of Factual Information Factual information is defined in 19 CFR 351.102(b)(21) as: (i) Evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by Commerce; and (v) evidence other than factual information described in (i)–(iv). Any party, when submitting factual information, must specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 38 and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct.39 Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on the type of factual information being submitted. Parties wishing to submit 36 See 38 See 35 See Volume I of the Petitions at Exhibit I–15. VerDate Sep<11>2014 17:19 Mar 02, 2020 Jkt 250001 section 733(a) of the Act. 37 Id. 39 See PO 00000 19 CFR 351.301(b). 19 CFR 351.301(b)(2). Frm 00012 Fmt 4703 Sfmt 4703 12505 factual information in this investigation are asked to review the regulations prior to submitting factual information in this investigation. Extensions of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by the Secretary. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301. For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, Commerce may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, Commerce will inform parties in a letter or memorandum of the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, standalone submission; under limited circumstances Commerce will grant untimely-filed requests for the extension of time limits. Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/ pkg/FR-2013-09-20/html/201322853.htm, prior to submitting extension requests or factual information in this investigation. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.40 Parties must use the certification formats provided in 19 CFR 351.303(g).41 Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. Instructions for filing such applications may be found on the Commerce website 40 See section 782(b) of the Act. Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also frequently asked questions regarding the Final Rule, available at https://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 41 See E:\FR\FM\03MRN1.SGM 03MRN1 12506 Federal Register / Vol. 85, No. 42 / Tuesday, March 3, 2020 / Notices at https://enforcement.trade.gov/apo. Parties wishing to participate in this investigation should ensure that they meet the requirements of 19 CFR 351.103(d) (e.g., by filing a letter of appearance). This notice is issued and published pursuant to sections 702 and 777(i) of the Act and 19 CFR 351.203(c). Dated: February 25, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. lotter on DSKBCFDHB2PROD with NOTICES Appendix Scope of the Investigation The merchandise covered by this investigation is tolyltriazole and benzotriazole. This includes tolyltriazole and benzotriazole of all grades and forms, including their sodium salt forms. Tolyltriazole is technically known as Tolyltriazole IUPAC 4,5 methyl benzotriazole. It can also be identified as 4, 5 methyl benzotriazole, tolutriazole, TTA, and TTZ. Benzotriazole is technically known as IUPAC 1,2,3-Benzotriazole. It can also be identified as 1,2,3-Benzotriazole, 1,2Aminozophenylene, 1H-Benzotriazole, and BTA. All forms of tolyltriazole and benzotriazole, including but not limited to flakes, granules, pellets, prills, needles, powder, or liquids, are included within the scope of these petitions. The scope includes tolyltriazole/sodium tolyltriazole and benzotriazole/sodium benzotriazole that are combined or mixed with other products. For such combined products, only the tolyltriazole/sodium tolyltriazole and benzotriazole/sodium benzotriazole component is covered by the scope of these investigations. Tolyltriazole and sodium tolyltriazole that have been combined with other products is included within the scope, regardless of whether the combining occurs in third countries. Tolyltriazole, sodium tolyltriazole, benzotriazole and sodium benzotriazole that is otherwise subject to these investigations is not excluded when commingled with tolyltriazole, sodium tolyltriazole, benzotriazole, or sodium benzotriazole from sources not subject to these investigations. Only the subject merchandise component of such commingled products is covered by the scope of these investigations. A combination or mixture is excluded from this investigation if the total tolyltriazole or benzotriazole component of the combination or mixture (regardless of the source or sources) comprises less than 5 percent of the combination or mixture, on a dry weight basis. Notwithstanding the foregoing language, a tolyltriazole or benzotriazole combination or mixture that is transformed through a chemical reaction into another product, such that, for example, the tolyltriazole or benzotriazole can no longer be separated from the other products through a distillation or other process is excluded from this investigation. VerDate Sep<11>2014 17:19 Mar 02, 2020 Jkt 250001 Tolyltriazole has the Chemical Abstracts Service (‘‘CAS’’) registry number 299385–43– 1. Tolyltriazole is classified under Harmonized Tariff Schedule of the United States (‘‘HTSUS’’) subheading 2933.99.82.20. Sodium Tolyltriazole has the CAS registry number 64665–57–2 and is classified under HTSUS subheading 2933.99.82.90. Benzotriazole has the CAS registry number #95–14–7 and is classified under HTSUS subheading 2933.99.82.10. Sodium Benzotriazole has the CAS registry number 15217–42–2. Sodium Benzotriazole is classified under HTSUS subheading 2933.99.82.90. Although the HTSUS subheadings and CAS registry numbers are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive. [FR Doc. 2020–04342 Filed 3–2–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–122] Certain Corrosion Inhibitors From the People’s Republic of China: Initiation of Less-Than-Fair-Value Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable February 25, 2020. FOR FURTHER INFORMATION CONTACT: Lochard Philozin or Nicholas Czajkowski, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4260 or (202) 482–1395, respectively. SUPPLEMENTARY INFORMATION: AGENCY: The Petition On February 5, 2020, the U.S. Department of Commerce (Commerce) received an antidumping duty (AD) petition (Petition) concerning imports of certain corrosion inhibitors (corrosion inhibitors) from the People’s Republic of China (China), filed in proper form on behalf of Wincom Incorporated (the petitioner). The AD Petition was accompanied by a countervailing duty (CVD) Petition concerning imports of corrosion inhibitors from China.1 On February 10 and February 11, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petition.2 The 1 See Petitioner’s Letter, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Certain Corrosion Inhibitors from China,’’ dated February 5, 2020 (the Petitions). 2 See Commerce’s Letter, ‘‘Petition for the Imposition of Antidumping Duties on Imports of PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 petitioner filed responses to these requests on February 14, 2020.3 On February 21, 2020, Commerce received comments on industry support from SUEZ WTS USA Inc. (Suez), an importer of the subject merchandise.4 The petitioner responded to Suez’s industry support comments on February 24, 2020.5 In accordance with section 732(b) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that imports of corrosion inhibitors from China are being, or are likely to be, sold in the United States at less-than-fair value (LTFV) within the meaning of section 731 of the Act, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing corrosion inhibitors in the United States. Consistent with section 732(b)(1) of the Act, the Petition is accompanied by information reasonably available to the petitioner supporting its allegations. Commerce finds that the petitioner filed this Petition on behalf of the domestic industry, because the petitioner is an interested party, as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested AD investigation.6 Period of Investigation Because China is a non-market economy (NME) country, pursuant to 19 CFR 351.204(b)(1), and because the Petition was filed on February 5, 2020, the period of investigation (POI) is July 1, 2019 through December 31, 2019. Certain Corrosion Inhibitors from the People’s Republic of China: Supplemental Questions,’’ dated February 11, 2020 (General Issues Supplemental Questionnaire); see also Commerce’s Letter, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Certain Corrosion Inhibitors from the People’s Republic of China: Supplemental Questions,’’ dated February 10, 2020. 3 See Petitioner’s Letter, ‘‘Corrosion Inhibitors from the People’s Republic of China: Responses to Supplemental Questions (Volume I),’’ dated February 14, 2020 (General Issues Supplement); see also Petitioner’s Letter, ‘‘Corrosion Inhibitors from the People’s Republic of China: Responses to Supplemental Questions (Volume II),’’ dated February 14, 2020 (AD Supplement). 4 See Suez’s Letter, ‘‘Certain Corrosion Inhibitors from the People’s Republic of China: Industry Support Comments on the Petitions for Antidumping and Countervailing Duties and Request to Poll Industry,’’ dated February 21, 2020. 5 See Petitioner’s Letter, ‘‘Certain Corrosion Inhibitors from the People’s Republic of China: Petitioner’s Response to Comments From SUEZ WTS USA, Inc. Regarding Industry Support,’’ dated February 24, 2020. 6 See ‘‘Determination of Industry Support for the Petition’’ section, infra. E:\FR\FM\03MRN1.SGM 03MRN1

Agencies

[Federal Register Volume 85, Number 42 (Tuesday, March 3, 2020)]
[Notices]
[Pages 12502-12506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04342]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-123]


Certain Corrosion Inhibitors From the People's Republic of China: 
Initiation of Countervailing Duty Investigation

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

DATES: Applicable February 25, 2020.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson or Nicholas 
Czajkowski, AD/CVD Operations, Office I, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2631 
or (202) 482-1395, respectively.

SUPPLEMENTARY INFORMATION: 

The Petition

    On February 5, 2020, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition (Petition) concerning 
imports of certain corrosion inhibitors (corrosion inhibitors) from the 
People's Republic of China (China), filed in proper form on behalf of 
Wincom Incorporated (the petitioner). The CVD Petition was accompanied 
by an antidumping duty (AD) Petition concerning imports of corrosion 
inhibitors from China.\1\
---------------------------------------------------------------------------

    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Certain Corrosion 
Inhibitors from China,'' dated February 5, 2020 (the Petitions).
---------------------------------------------------------------------------

    On February 10, 2020, Commerce requested supplemental information 
pertaining to certain aspects of the Petitions.\2\ The petitioner filed 
responses to these requests on February 14, 2020.\3\ On February 14, 
2020, Commerce requested additional supplemental information pertaining 
to the CVD investigation.\4\ On February 18, 2020, the petitioner 
responded to this request.\5\ On February 19, 2020, Commerce requested 
additional supplemental information pertaining to the CVD 
investigation.\6\ On February 21, 2020, the petitioner responded to the

[[Page 12503]]

request.\7\ On February 21, 2020, Commerce received comments on 
industry support from SUEZ WTS USA Inc. (Suez), an importer of the 
subject merchandise.\8\ The petitioner responded to Suez's industry 
support comments on February 24, 2020.\9\
---------------------------------------------------------------------------

    \2\ See Commerce's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Certain 
Corrosion Inhibitors from the People's Republic of China: 
Supplemental Questions,'' dated February 10, 2020 (General Issues 
Questionnaire); see also Commerce's Letter, ``Petition for the 
Imposition of Countervailing Duties on Imports of Certain Corrosion 
Inhibitors from the People's Republic of China: Supplemental 
Questions,'' dated February 10, 2020.
    \3\ See Petitioner's Letter, ``Certain Corrosion Inhibitors from 
the People's Republic of China: Responses to Supplemental Questions 
(Volume I),'' dated February 14, 2020 (General Issues Supplement); 
see also Petitioner's Letter, ``Certain Corrosion Inhibitors from 
the People's Republic of China: Responses to Supplemental Questions 
(Volume III),'' dated February 14, 2020 (CVD Supplement).
    \4\ See Commerce's Letter, ``Petition for the Imposition of 
Countervailing Duties on Imports of Certain Corrosion Inhibitors 
from the People's Republic of China: Supplemental Questions,'' dated 
February 14, 2020.
    \5\ See Petitioner's Letter, ``Certain Corrosion Inhibitors from 
the People's Republic of China: Responses to Second Supplemental 
Questions (Volume III),'' dated February 18, 2020.
    \6\ See Commerce's Letter, ``Petition for the Imposition of 
Countervailing Duties on Imports of Certain Corrosion Inhibitors 
from the People's Republic of China: Supplemental Questions,'' dated 
February 19. 2020.
    \7\ See Petitioner's Letter, ``Certain Corrosion Inhibitors from 
the People's Republic of China: Third Supplemental Questionnaire 
Response (Volume III),'' dated February 21, 2020.
    \8\ See Suez's Letter, ``Certain Corrosion Inhibitors from the 
People's Republic of China: Industry Support Comments on the 
Petitions for Antidumping and Countervailing Duties and Request to 
Poll Industry,'' dated February 21, 2020.
    \9\ See Petitioner's Letter, ``Certain Corrosion Inhibitors from 
the People's Republic of China: Petitioner's Response to Comments 
From SUEZ WTS USA, Inc. Regarding Industry Support,'' dated February 
24, 2020.
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of China 
(GOC) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act, to producers of corrosion 
inhibitors in China, and that such imports are materially injuring, or 
threatening material injury to, the domestic industry producing 
corrosion inhibitors in the United States. Consistent with section 
702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs 
on which we are initiating a CVD investigation, the Petition was 
accompanied by information reasonably available to the petitioner 
supporting its allegations.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because the petitioner is an interested party, as 
defined in sections 771(9)(C) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the requested CVD investigation.\10\
---------------------------------------------------------------------------

    \10\ See ``Determination of Industry Support for the Petition'' 
section, infra.
---------------------------------------------------------------------------

Period of Investigation

    Because the Petition was filed on February 5, 2020, the period of 
investigation (POI) is January 1, 2019 through December 31, 2019.\11\
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------

Scope of the Investigation

    The merchandise covered by this investigation is corrosion 
inhibitors from China. For a full description of the scope of this 
investigation, see the Appendix to this notice.

Comments on Scope of the Investigation

    Commerce requested further information from the petitioner 
regarding the proposed scope to ensure that the scope language in the 
Petition is an accurate reflection of the products for which the 
domestic industry is seeking relief.\12\ As a result, the petitioner 
modified the scope of the Petition to clarify the description of the 
merchandise covered by the Petition.\13\ The description of the 
merchandise covered by this investigation, as described in the Appendix 
to this notice, reflects these clarifications.
---------------------------------------------------------------------------

    \12\ See General Issues Questionnaire at 3.
    \13\ See General Issues Supplement at 2-4 and at Exhibit I-S1.
---------------------------------------------------------------------------

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (scope).\14\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\15\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on March 16, 2020, which is 20 calendar days from the signature 
date of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on March 26, 2020, which is 
10 calendar days from the initial comment deadline.\16\
---------------------------------------------------------------------------

    \14\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \15\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \16\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

    Commerce requests that any factual information the parties consider 
relevant to the scope of the investigation be submitted during this 
time period. However, if a party subsequently finds that additional 
factual information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such comments must be filed on 
the record of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\17\ An electronically 
filed document must be received successfully in its entirety by the 
time and date it is due. Documents exempted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230, and stamped with the date and time of receipt by the applicable 
deadlines.
---------------------------------------------------------------------------

    \17\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at https://access.trade.gov/help.aspx and a handbook 
can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------

Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the GOC of the receipt of the Petition and provided it the 
opportunity for consultations with respect to the Petition.\18\ The GOC 
did not request consultations.
---------------------------------------------------------------------------

    \18\ See Commerce's Letter, ``Countervailing Duty Petition on 
Corrosion Inhibitors from the People's Republic of China,'' dated 
February 5, 2020.
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also

[[Page 12504]]

determine what constitutes a domestic like product in order to define 
the industry. While both Commerce and the ITC must apply the same 
statutory definition regarding the domestic like product,\19\ they do 
so for different purposes and pursuant to a separate and distinct 
authority. In addition, Commerce's determination is subject to 
limitations of time and information. Although this may result in 
different definitions of the like product, such differences do not 
render the decision of either agency contrary to law.\20\
---------------------------------------------------------------------------

    \19\ See section 771(10) of the Act.
    \20\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\21\ Based on our analysis of the information 
submitted on the record, we have determined that corrosion inhibitors, 
as defined in the scope, constitute a single domestic like product, and 
we have analyzed industry support in terms of that domestic like 
product.\22\
---------------------------------------------------------------------------

    \21\ See Volume I of the Petition, at 11-14; see also General 
Issues Supplement at 4-8 and Exhibits I-S2 and I-S3.
    \22\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Countervailing Duty Investigation Initiation Checklist: Certain 
Corrosion Inhibitors from the People's Republic of China (China CVD 
Initiation Checklist) at Attachment II, ``Analysis of Industry 
Support for the Antidumping and Countervailing Duty Petitions 
Covering Certain Corrosion Inhibitors from the People's Republic of 
China'' (Attachment II), dated concurrently with this notice and on 
file electronically via ACCESS. Access to documents filed via ACCESS 
is also available in the Central Records Unit, Room B8024 of the 
main Commerce building.
---------------------------------------------------------------------------

    In determining whether the petitioner has standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
own production of the domestic like product in 2019, as well as 2019 
production of its two toll producers, who also support the 
Petition.\23\ The petitioner states that there are no other known 
producers of corrosion inhibitors in the United States; therefore, the 
Petition is supported by 100 percent of the U.S. industry.\24\ We 
relied on data provided by the petitioner for purposes of measuring 
industry support.\25\
---------------------------------------------------------------------------

    \23\ See Volume I of the Petition, at 3-4, 9, 14, and Exhibits 
I-12, I-14, and I-15; see also General Issues Supplement at 8-10 and 
Exhibits I-S4 and I-S8.
    \24\ See Volume I of the Petition, at 3-4; see also General 
Issues Supplement, at 8-10 and Exhibits I-S4 and I-S8.
    \25\ See Volume I of the Petition, at 3-4, and 9, and Exhibits 
I-12, I-14, and I-15; see also General Issues Supplement at 8-10 and 
Exhibits I-S4 and I-S8. For further discussion, see China CVD 
Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------

    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petition.\26\ First, the Petition established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\27\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
702(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition account for at least 25 percent of the total 
production of the domestic like product.\28\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 702(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition.\29\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 702(b)(1) of the Act.\30\
---------------------------------------------------------------------------

    \26\ See Volume I of the Petition, at 3-4, and 9, and Exhibits 
I-12, I-14, and I-15; see also General Issues Supplement at 8-10 and 
Exhibits I-S4 and I-S8. For further discussion, see China CVD 
Initiation Checklist, at Attachment II.
    \27\ See section 702(c)(4)(D) of the Act; see also China CVD 
Initiation Checklist, at Attachment II.
    \28\ See China CVD Initiation Checklist, at Attachment II.
    \29\ Id.
    \30\ Id.
---------------------------------------------------------------------------

Injury Test

    Because China is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to these investigations. Accordingly, the ITC must determine 
whether imports of the subject merchandise from China materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that imports of the subject merchandise are 
benefitting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product.\31\ In addition, the petitioner 
alleges that subject imports exceed the negligibility threshold 
provided for under section 771(24)(A) of the Act.\32\
---------------------------------------------------------------------------

    \31\ See Volume I of the Petitions at 1-2.
    \32\ Id. at Exhibit I-11.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
lost sales and revenues; a decline in the domestic industry's financial 
performance; decline in production, capacity utilization, U.S. 
shipments, and net sales quantities; and impacts on employment-related 
indicators.\33\ We have assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, 
causation, as well as negligibility, and we have determined that these 
allegations are properly supported by adequate evidence, and meet the 
statutory requirements for initiation.\34\
---------------------------------------------------------------------------

    \33\ See Volume I of the Petitions, at 14-25 and Exhibits I-5, 
I-7 through I-15; see also Petitioner's Letter, ``Certain Corrosion 
Inhibitors from the People's Republic of China: Responses to 
Supplemental Questions (Volume I),'' dated February 14, 2020 
(General Issues Supplement), at 10-13, and Exhibits I-S5, I-S6, and 
I-S7.
    \34\ See China CVD Initiation Checklist, at Attachment III, 
``Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Certain Corrosion Inhibitors from the People's Republic of 
China'' (Attachment III).
---------------------------------------------------------------------------

Initiation of CVD Investigation

    Based upon the examination of the Petition on corrosion inhibitors 
from China, we find that the Petition meets the requirements of section 
702 of the Act. Therefore, we are initiating a CVD investigation to 
determine whether imports of corrosion inhibitors from China benefit 
from countervailable subsidies conferred by the GOC. Based on our 
review of the Petition, we find that there is sufficient information to 
initiate a CVD investigation on 17 of the 18 alleged programs. For a 
full discussion of the basis for our decision

[[Page 12505]]

to initiate (or not initiate) on each program, see CVD Initiation 
Checklist. A public version of the initiation checklist for this 
investigation is available on ACCESS. In accordance with section 
703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we 
will make our preliminary determination no later than 65 days after the 
date of this initiation.

Respondent Selection

    The petitioner named nine companies in China as producers/exporters 
of corrosion inhibitors.\35\ Commerce intends to follow its standard 
practice in CVD investigations and calculate company-specific subsidy 
rates in this investigation. In the event Commerce determines that the 
number of companies is large and, it cannot individually examine each 
company based upon Commerce's resources, where appropriate, Commerce 
intends to select mandatory respondents based on quantity and value 
(Q&V) questionnaires issued to the potential respondents. Commerce 
normally selects mandatory respondents in CVD investigations using U.S. 
Customs and Border Protection (CBP) entry data for U.S. imports under 
the appropriate Harmonized Tariff Schedule of the United States (HTSUS) 
numbers listed in the scope of the investigation. However, for this 
investigation, among the HTSUS numbers under which the subject 
merchandise would enter (2933.99.82.10, 2933.99.82.20, 2933.99.82.90), 
are basket categories under which non-subject merchandise may enter. 
Therefore, we cannot rely on CBP entry data in selecting respondents. 
We intend instead to issue Q&V questionnaires to each potential 
respondent for which the petitioner has provided a complete address.
---------------------------------------------------------------------------

    \35\ See Volume I of the Petitions at Exhibit I-15.
---------------------------------------------------------------------------

    Exporters and producers of certain corrosion inhibitors from China 
that do not receive Q&V questionnaires by mail may still submit a 
response to the Q&V questionnaire and can obtain the Q&V questionnaire 
from the Enforcement and Compliance website at https://trade.gov/enforcemnet/news.asp.
    Responses to the Q&V questionnaire must be submitted by the 
relevant Chinese producers/exporters no later than 5:00 p.m. ET on 
March 11, 2020. All Q&V responses must be filed electronically via 
ACCESS. An electronically filed document must be received successfully, 
in its entirety, by ACCESS no later than 5:00 p.m. ET on the deadline 
noted above. Commerce intends to finalize its decisions regarding 
respondent selection within 20 days of publication of this notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOC via ACCESS.
    Furthermore, to the extent practicable, Commerce will attempt to 
provide a copy of the public version of the Petition to each exporter 
named in the Petition, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of its initiation, as required by 
section 702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of corrosion inhibitors from China are 
materially injuring or threatening material injury to a U.S. 
industry.\36\ A negative ITC determination will result in the 
investigation being terminated.\37\ Otherwise, this CVD investigation 
will proceed according to statutory and regulatory time limits.
---------------------------------------------------------------------------

    \36\ See section 733(a) of the Act.
    \37\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Any party, when submitting factual 
information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \38\ and, if the 
information is submitted to rebut, clarify, or correct factual 
information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\39\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Parties wishing to submit factual 
information in this investigation are asked to review the regulations 
prior to submitting factual information in this investigation.
---------------------------------------------------------------------------

    \38\ See 19 CFR 351.301(b).
    \39\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, Commerce may elect to specify a different 
time limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, Commerce will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, standalone submission; under limited circumstances Commerce 
will grant untimely-filed requests for the extension of time limits. 
Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting extension requests 
or factual information in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\40\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\41\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \40\ See section 782(b) of the Act.
    \41\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Instructions for filing such 
applications may be found on the Commerce website

[[Page 12506]]

at https://enforcement.trade.gov/apo. Parties wishing to participate in 
this investigation should ensure that they meet the requirements of 19 
CFR 351.103(d) (e.g., by filing a letter of appearance).
    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act and 19 CFR 351.203(c).

    Dated: February 25, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The merchandise covered by this investigation is tolyltriazole 
and benzotriazole. This includes tolyltriazole and benzotriazole of 
all grades and forms, including their sodium salt forms. 
Tolyltriazole is technically known as Tolyltriazole IUPAC 4,5 methyl 
benzotriazole. It can also be identified as 4, 5 methyl 
benzotriazole, tolutriazole, TTA, and TTZ.
    Benzotriazole is technically known as IUPAC 1,2,3-Benzotriazole. 
It can also be identified as 1,2,3-Benzotriazole, 1,2-
Aminozophenylene, 1H-Benzotriazole, and BTA.
    All forms of tolyltriazole and benzotriazole, including but not 
limited to flakes, granules, pellets, prills, needles, powder, or 
liquids, are included within the scope of these petitions.
    The scope includes tolyltriazole/sodium tolyltriazole and 
benzotriazole/sodium benzotriazole that are combined or mixed with 
other products. For such combined products, only the tolyltriazole/
sodium tolyltriazole and benzotriazole/sodium benzotriazole 
component is covered by the scope of these investigations. 
Tolyltriazole and sodium tolyltriazole that have been combined with 
other products is included within the scope, regardless of whether 
the combining occurs in third countries.
    Tolyltriazole, sodium tolyltriazole, benzotriazole and sodium 
benzotriazole that is otherwise subject to these investigations is 
not excluded when commingled with tolyltriazole, sodium 
tolyltriazole, benzotriazole, or sodium benzotriazole from sources 
not subject to these investigations. Only the subject merchandise 
component of such commingled products is covered by the scope of 
these investigations.
    A combination or mixture is excluded from this investigation if 
the total tolyltriazole or benzotriazole component of the 
combination or mixture (regardless of the source or sources) 
comprises less than 5 percent of the combination or mixture, on a 
dry weight basis.
    Notwithstanding the foregoing language, a tolyltriazole or 
benzotriazole combination or mixture that is transformed through a 
chemical reaction into another product, such that, for example, the 
tolyltriazole or benzotriazole can no longer be separated from the 
other products through a distillation or other process is excluded 
from this investigation.
    Tolyltriazole has the Chemical Abstracts Service (``CAS'') 
registry number 299385-43-1. Tolyltriazole is classified under 
Harmonized Tariff Schedule of the United States (``HTSUS'') 
subheading 2933.99.82.20.
    Sodium Tolyltriazole has the CAS registry number 64665-57-2 and 
is classified under HTSUS subheading 2933.99.82.90.
    Benzotriazole has the CAS registry number #95-14-7 and is 
classified under HTSUS subheading 2933.99.82.10.
    Sodium Benzotriazole has the CAS registry number 15217-42-2. 
Sodium Benzotriazole is classified under HTSUS subheading 
2933.99.82.90.
    Although the HTSUS subheadings and CAS registry numbers are 
provided for convenience and customs purposes, the written 
description of the scope of these investigations is dispositive.

[FR Doc. 2020-04342 Filed 3-2-20; 8:45 am]
 BILLING CODE 3510-DS-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.