Ceramic Tile From the People's Republic of China: Final Affirmative Countervailing Duty Determination, and Final Negative Critical Circumstances Determination, 19440-19443 [2020-07189]

Download as PDF 19440 Federal Register / Vol. 85, No. 67 / Tuesday, April 7, 2020 / Notices khammond on DSKJM1Z7X2PROD with NOTICES 19 CFR 351.218(d)(3)(i).4 We received no substantive responses from any other interested parties, nor was a hearing requested. On December 23, 2019, Commerce notified the U.S. International Trade Commission (ITC) that it did not receive an adequate substantive response from respondent interested parties.5 As a result, pursuant to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2), Commerce conducted an expedited (120-day) sunset review of this Order. Scope of the Order The product covered by this order is calcium hypochlorite, regardless of form (e.g., powder, tablet (compressed), crystalline (granular), or in liquid solution), whether or not blended with other materials, containing at least 10 percent available chlorine measured by actual weight. The scope also includes bleaching powder and hemibasic calcium hypochlorite. Calcium hypochlorite has the general chemical formulation Ca(OCl)2, but may also be sold in a more dilute form as bleaching powder with the chemical formulation, Ca(OCl)2.CaCl2.Ca(OH)2.2H2O or hemibasic calcium hypochlorite with the chemical formula of 2Ca(OCl)2.Ca(OH)2 or Ca(OCl)2.0.5Ca(OH)2. Calcium hypochlorite has a Chemical Abstract Service (CAS) registry number of 7778– 54–3, and a U.S. Environmental Protection Agency (EPA) Pesticide Code (PC) Number of 014701. The subject calcium hypochlorite has an International Maritime Dangerous Goods (IMDG) code of Class 5.1 UN 1748, 2880, or 2208 or Class 5.1/8 UN 3485, 3486, or 3487. Calcium hypochlorite is currently classifiable under the subheading 2828.10.0000 of the Harmonized Tariff Schedule of the United States (HTSUS). The subheading covers commercial calcium hypochlorite and other calcium hypochlorite. When tableted or blended with other materials, calcium hypochlorite may be entered under other tariff classifications, such as 3808.94.5000 and 3808.99.9500, which cover disinfectants and similar products. While the HTSUS subheadings, the CAS registry number, the U.S. EPA PC number, and the IMDG codes are provided for convenience and customs purposes, the written description of the scope of this order is dispositive. 4 See IWC’s Letter, ‘‘Substantive Response to Notice of Initiation,’’ dated January 2, 2020. 5 See Commerce’s Letter, ‘‘Sunset Reviews Initiated on December 2, 2019,’’ dated December 23, 2019. VerDate Sep<11>2014 18:22 Apr 06, 2020 Jkt 250001 Analysis of Comments Received All issues raised in this review, including the likelihood of continuation or recurrence of dumping in the event of revocation and the magnitude of the margins likely to prevail if the order were revoked, are addressed in the accompanying Issues and Decision Memorandum. A list of topics discussed in the Issues and Decision Memorandum is included as an appendix to this notice. 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 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 on the internet at https://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and the electronic version of the Issues and Decision Memorandum are identical in content. Final Results of Sunset Review Pursuant to sections 751(c)(1) and 752(c)(1) and (3) of the Act, Commerce determines that revocation of the antidumping duty order on calcium hypochlorite from China would likely lead to continuation or recurrence of dumping and that the magnitude of the margins is up to 210.52 percent.6 Administrative Protective Order (APO) This notice serves as the only reminder to interested parties subject to an APO of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely notification of the return or 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 We are issuing and publishing these final results and notice in accordance with sections 751(c), 752(c), and 777(i)(1) of the Act and 19 CFR 351.218. Note that Commerce has temporarily modified certain of its requirements for 6 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Results of the Expedited First Sunset Review of the Antidumping Duty Order on Calcium Hypochlorite from the People’s Republic of China,’’ dated concurrently with this notice. PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 serving documents containing business proprietary information, until May 19, 2020, unless extended.7 Dated: March 31, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Order IV. History of the Order V. Legal Framework VI. Discussion of the Issues 1. Likelihood of Continuation or Recurrence of Dumping 2. Magnitude of the Margins Likely to Prevail VII. Final Results of Sunset Review VIII. Recommendation [FR Doc. 2020–07298 Filed 4–6–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–109] Ceramic Tile From the People’s Republic of China: Final Affirmative Countervailing Duty Determination, and Final Negative Critical Circumstances 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 ceramic tile from the People’s Republic of China (China). DATES: Applicable April 7, 2020. FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, Moses Song, or John McGowan, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–3813, (202) 482–7885, or (202) 482–3019, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On September 12, 2019, Commerce published the Preliminary Determination of this investigation.1 7 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19, 85 FR 17006 (March 26, 2020). 1 See Ceramic Tile from the People’s Republic of China: Preliminary Affirmative Countervailing Duty E:\FR\FM\07APN1.SGM 07APN1 Federal Register / Vol. 85, No. 67 / Tuesday, April 7, 2020 / Notices The petitioner is The Coalition for Fair Trade in Ceramic Tile. The mandatory respondents in this investigation are Temgoo International Trading Limited (Temgoo) and Foshan Sanfi Import & Export Co., Ltd. (Foshan Sanfi). In the Preliminary Determination, Commerce aligned the final determination in this countervailing duty (CVD) investigation with the final determination in the companion less-than-fair-value (LTFV) investigation, in accordance with section 705(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4). 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, are discussed in the Issues and Decision Memorandum.2 The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov, and is available to all parties in the Central Records Unit, Room B8024 of the main Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/ frn/. The signed and electronic versions of the Issues and Decision Memorandum are identical in content. Period of Investigation The period of investigation (POI) is from January 1, 2018 through December 31, 2018. Scope of the Investigation The product covered by this investigation covers ceramic tile from China. For a complete description of the scope of this investigation, see Appendix I. khammond on DSKJM1Z7X2PROD with NOTICES Scope Comments During the course of this investigation and the concurrent LTFV investigation of ceramic tile from China, Commerce received scope comments from interested parties. On September 6, Investigation, Preliminary Negative Critical Circumstances Determination, and Alignment of Final Determination with Final Antidumping Duty Determination, 84 FR 48125 (September 12, 2019) (Preliminary Determination) and accompanying Preliminary Decision Memorandum. 2 See Memorandum, ‘‘Issues and Decision for the Final Determination in the Countervailing Duty Investigation of Ceramic Tile from the People’s Republic of China,’’ dated concurrently, and hereby adopted by, this notice (Issues and Decision Memorandum). VerDate Sep<11>2014 18:22 Apr 06, 2020 Jkt 250001 2019, Commerce issued a Preliminary Scope Decision Memorandum.3 Several interested parties submitted case and rebuttal briefs concerning the scope of this investigation. For a summary of the product coverage comments and rebuttal comments submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, see the Final Scope Decision Memorandum.4 Based on the comments received, Commerce is not modifying the scope language as it appeared in the Preliminary Determination. The scope in Appendix I remains unchanged from that which appeared in the Preliminary Determination. Analysis of Subsidy Programs and Comments Received All issues raised in the case and rebuttal briefs by parties in this investigation, other than those issues related to scope, are discussed in the Issues and Decision Memorandum. A list of the issues raised by parties and responded to by Commerce in the Issues and Decision Memorandum, is attached at Appendix II. Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient, and that the subsidy is specific.5 Commerce notes that, in making these findings, it relied, in part, on facts available and, because it finds that one or more respondents did not act to the best of their ability to respond to Commerce’s requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.6 For description of the methodology 3 See Memorandum, ‘‘Ceramic Tile from the People’s Republic of China Decision Memorandum for the Preliminary Determinations,’’ dated September 6, 2019 (Preliminary Scope Decision Memorandum). 4 See Memorandum, ‘‘Ceramic Tile from the People’s Republic of China: Scope Decision Memorandum for the Final Determinations, dated concurrently with this notice (Final Scope Decision Memorandum). 5 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. 6 See Memorandum, ‘‘Ceramic Tile from the People’s Republic of China Decision Memorandum for the Final Determination, dated concurrently with this notice (Final Scope Decision Memorandum). PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 19441 underlying our final determination, see the Issues and Decision Memorandum. Adverse Facts Available (AFA) Commerce relied on ‘‘facts otherwise available,’’ including adverse facts available (AFA), for several findings in the Preliminary Determination. For this final determination, we are basing the CVD rates for Temgoo and Foshan Sanfi on facts otherwise available, with an adverse inference, pursuant to sections 776(a) and (b) of the Act. For a full discussion of our application of AFA, see the Issues and Decision Memorandum. Final Negative Determination of Critical Circumstances In the Preliminary Determination, Commerce determined, pursuant to section 703(e)(1) of the Act, that information provided in the critical circumstances allegation does not demonstrate the existence of critical circumstances with respect to imports of ceramic tile from China. For this final determination, we continue to find that critical circumstances do not exist with respect to imports of ceramic tile from China. For a full description of the methodology and results of Commerce’s analysis, see the Issues and Decision Memorandum. Changes Since the Preliminary Determination Based on our analysis of the comments received from parties, we made certain changes to the respondents’ subsidy rate calculations set forth in the Preliminary Determination. For a discussion of these changes, see the Issues and Decision Memorandum. All-Others Rate In accordance with section 705(c)(5)(A) of the Act, Commerce shall determine an estimated all-others rate for companies not individually examined. Generally, under section 705(c)(5)(A)(i) of the Act, 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 on AFA under section 776 of the Act. However, section 705(c)(5)(A)(ii) of the Act provides that, where all countervailable subsidy rates established for the mandatory respondents are zero, de minimis, or based entirely on facts available, Commerce may use ‘‘any reasonable method’’ for assigning an all-others rate, including ‘‘averaging the estimated average countervailable subsidy rates E:\FR\FM\07APN1.SGM 07APN1 19442 Federal Register / Vol. 85, No. 67 / Tuesday, April 7, 2020 / Notices determined for the exporters and producers individually investigated.’’ In this investigation, all rates for the individually investigated respondents are based entirely on facts available, pursuant to section 776 of the Act. We are relying on a simple average of the total AFA rates assigned to Temgoo and Foshan Sanfi as the all-others rate in this final determination, consistent with the statutory provision to rely on ‘‘any reasonable method.’’ Final Determination a result of the suspension of liquidation will be refunded or canceled. information, until May 19, 2020, unless extended.8 Disclosure Dated: March 30, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. We intend to disclose the calculations performed to parties in this proceeding within five days of its public announcement, or if there is no public announcement, within five days of the date of this notice, in accordance with 19 CFR 351.224(b). ITC Notification In accordance with section 705(d) of the Act, we will notify the ITC of our final affirmative determination that countervailable subsidies are being provided to producers and exporters of ceramic tile from China. As Commerce’s final determination is affirmative, in Subsidy rate Company accordance with section 705(b) of the (percent) Act, the ITC will determine, within 45 Temgoo International Traddays, whether the domestic industry in ing Limited ......................... 358.81 the United States is materially injured, Sanfi Imp & Exp Co., Ltd 7 ... 358.81 or threatened with material injury, by All Others .............................. 358.81 reason of imports of ceramic tile from China, or sales (or the likelihood of Continuation of Suspension of sales) for importation of ceramic tile Liquidation from China. In addition, we are making available to the ITC all non-privileged As a result of our Preliminary Determination, and pursuant to sections and nonproprietary information related to this investigation. We will allow the 703(d)(1)(B) and (d)(2) of the Act, we ITC access to all privileged and business instructed U.S. Customs and Border Protection (CBP) to suspend liquidation proprietary information in our files, provided the ITC confirms that it will of all entries of merchandise under not disclose such information, either consideration from China that were publicly or under an administrative entered or withdrawn from warehouse, protective order (APO), without the for consumption, on or after September written consent of the Assistant 17, 2019, the date of publication of the Secretary for Enforcement and Preliminary Determination in the Compliance. Federal Register. In accordance with section 703(d) of the Act, we instructed Notification Regarding APO CBP to discontinue the suspension of liquidation for CVD purposes for subject In the event that the ITC issues a final merchandise entered, or withdrawn negative injury determination, this from warehouse, on or after January 10, notice will serve as the only reminder 2020, but continue the suspension of to parties subject to the APO of their liquidation of all entries from responsibility concerning the September 17 through January 9, 2020. destruction of proprietary information If the U.S. International Trade disclosed under APO in accordance Commission (ITC) issues a final with 19 CFR 351.305(a)(3). Timely affirmative injury determination, we written notification of the return/ will issue a CVD order, reinstate the destruction of APO materials or suspension of liquidation under section conversion to judicial protective order is 706(a) of the Act, and require a cash hereby requested. Failure to comply deposit of estimated countervailing with the regulations and terms of an duties for such entries of subject APO is a violation which is subject to merchandise in the amounts indicated sanction. above. If the ITC determines that Notification to Interested Parties material injury, or threat of material injury, does not exist, this proceeding This determination is issued and will be terminated, and all estimated published in accordance with sections duties deposited or securities posted as 705(d) and 777(i) of the Act and 19 CFR 351.210(c). Note that Commerce has 7 Commerce assigned Sanfi’s rate to each of the temporarily modified certain of its entities for which Sanfi provided an initial requirements for serving documents questionnaire response: Guangdong Sanfi Ceramics containing business proprietary Group Co., Ltd. khammond on DSKJM1Z7X2PROD with NOTICES In accordance with section 705(c)(1)(B)(i)(I) of the Act, we established individual estimated countervailable subsidy rates, as follows: VerDate Sep<11>2014 18:22 Apr 06, 2020 Jkt 250001 PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 Appendix I Scope of the Investigation The merchandise covered by this investigation is ceramic flooring tile, wall tile, paving tile, hearth tile, porcelain tile, mosaic tile, flags, finishing tile, and the like (hereinafter ceramic tile). Ceramic tiles are articles containing a mixture of minerals including clay (generally hydrous silicates of alumina or magnesium) that are fired so the raw materials are fused to produce a finished good that is less than 3.2 cm in actual thickness. All ceramic tile is subject to the scope regardless of end use, surface area, and weight, regardless of whether the tile is glazed or unglazed, regardless of the water absorption coefficient by weight, regardless of the extent of vitrification, and regardless of whether or not the tile is on a backing. Subject merchandise includes ceramic tile with decorative features that may in spots exceed 3.2 cm in thickness and includes ceramic tile ‘‘slabs’’ or ‘‘panels’’ (tiles that are larger than 1 meter2 (11 ft.2)). Subject merchandise includes ceramic tile that undergoes minor processing in a third country prior to importation into the United States. Similarly, subject merchandise includes ceramic tile produced that undergoes minor processing after importation into the United States. Such minor processing includes, but is not limited to, one or more of the following: Beveling, cutting, trimming, staining, painting, polishing, finishing, additional firing, or any other processing that would otherwise not remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product. Subject merchandise is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheadings of heading 6907: 6907.21.1005, 6907.21.1011, 6907.21.1051, 6907.21.2000, 6907.21.3000, 6907.21.4000, 6907.21.9011, 6907.21.9051, 6907.22.1005, 6907.22.1011, 6907.22.1051, 6907.22.2000, 6907.22.3000, 6907.22.4000, 6907.22.9011, 6907.22.9051, 6907.23.1005, 6907.23.1011, 6907.23.1051, 6907.23.2000, 6907.23.3000, 6907.23.4000, 6907.23.9011, 6907.23.9051, 6907.30.1005, 6907.30.1011, 6907.30.1051, 6907.30.2000, 6907.30.3000, 6907.30.4000, 6907.30.9011, 6907.30.9051, 6907.40.1005, 6907.40.1011, 6907.40.1051, 6907.40.2000, 6907.40.3000, 6907.40.4000, 6907.40.9011, and 6907.40.9051. Subject merchandise may also enter under subheadings of headings 6914 and 6905: 6914.10.8000, 6914.90.8000, 6905.10.0000, and 6905.90.0050. The HTSUS subheadings are provided for convenience and customs purposes only. The written description of the scope of this investigation is dispositive. 8 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19, 85 FR 17006 (March 26, 2020). E:\FR\FM\07APN1.SGM 07APN1 Federal Register / Vol. 85, No. 67 / Tuesday, April 7, 2020 / Notices Appendix II List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope Comments IV. Scope of the Investigation V. Critical Circumstances VI. Subsidies Valuation VII. Benchmarks and Interest Rates VIII. Use of Facts Otherwise Available and Adverse Inferences IX. Discussion of Issues Comment 1: Application of AFA to Sanfi and Temgoo and Calculation of the AllOthers Rate Comment 2: Whether Commerce’s Calculation of the AFA Rate in Unreasonable Comment 3: Selection of AFA Rates for Subsidy Programs Comment 4: Preliminary Scope Determination X. Recommendation [FR Doc. 2020–07189 Filed 4–6–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–009] Calcium Hypochlorite From the People’s Republic of China: Final Results of the Expedited First Sunset Review of the Countervailing Duty Order Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) finds that revocation of the countervailing duty (CVD) order would be likely to lead to the continuation or recurrence of a countervailable subsidy at the levels indicated in the ‘‘Final Results of Review’’ section of this notice. DATES: Applicable April 7, 2020. FOR FURTHER INFORMATION CONTACT: Rachel Greenberg, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–0652. SUPPLEMENTARY INFORMATION: khammond on DSKJM1Z7X2PROD with NOTICES AGENCY: Background On January 30, 2015, Commerce published in the Federal Register the CVD order on calcium hypochlorite from the People’s Republic of China (China).1 On December 2, 2019, 1 See Calcium Hypochlorite from the People’s Republic of China: Countervailing Duty Order, 80 FR 5082 (January 30, 2015). VerDate Sep<11>2014 18:22 Apr 06, 2020 Jkt 250001 Commerce published the notice of initiation of the first sunset review of the CVD order on calcium hypochlorite from China, pursuant to section 751(c) of the Tariff Act of 1930, as amended (the Act).2 On January 2, 2019, Commerce received a timely filed notice of intent to participate from Innovative Water Care, LLC dba Sigura (IWC) within the deadline specified in 19 CFR 351.218(d)(1)(i).3 IWC claimed interested party status under section 771(9)(C) of the Act, as a manufacturer of a domestic like product in the United States. Commerce received an adequate substantive response to the notice of initiation from IWC within the 30-day deadline specified in 19 CFR 351.218(d)(3)(i).4 We received no substantive responses from any other interested parties, including the Government of China, nor was a hearing requested. On December 23, 2019, Commerce notified the U.S. International Trade Commission that it did not receive an adequate substantive response from respondent interested parties.5 As a result, pursuant to 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(B)–(C), Commerce conducted an expedited (120-day) sunset review of the CVD order on calcium hypochlorite from China. Scope of the Order The product covered by this order is calcium hypochlorite, regardless of form (e.g., powder, tablet (compressed), crystalline (granular), or in liquid solution), whether or not blended with other materials, containing at least 10 percent available chlorine measured by actual weight. The scope also includes bleaching powder and hemibasic calcium hypochlorite. Calcium hypochlorite has the general chemical formulation Ca(OCl)2, but may also be sold in a more dilute form as bleaching powder with the chemical formulation, Ca(OCl)2.CaCl2.Ca(OH)2.2H2O or hemibasic calcium hypochlorite with the chemical formula of 2Ca(OCl)2.Ca(OH)2 or Ca(OCl)2.0.5Ca(OH)2. Calcium hypochlorite has a Chemical Abstract 2 See Initiation of Five-Year (Sunset) Reviews, 84 FR 65968 (December 2, 2019). 3 See IWC’s Letter, ‘‘Countervailing Duty Order on Calcium Hypochlorite from the People’s Republic of China: Notice of Intent to Participate,’’ December 17, 2019. 4 See IWC’s Letter, ‘‘Countervailing Duty Order on Calcium Hypochlorite from the People’s Republic of China: Substantive Response to Notice of Initiation,’’ dated January 2, 2020. 5 See Commerce’s Letter, ‘‘Sunset Reviews Initiated on December 2, 2019,’’ dated December 23, 2019. PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 19443 Service (CAS) registry number of 7778– 54–3, and a U.S. Environmental Protection Agency (EPA) Pesticide Code (PC) Number of 014701. The subject calcium hypochlorite has an International Maritime Dangerous Goods (IMDG) code of Class 5.1 UN 1748, 2880, or 2208 or Class 5.1/8 UN 3485, 3486, or 3487. Calcium hypochlorite is currently classifiable under the subheading 2828.10.0000 of the Harmonized Tariff Schedule of the United States (HTSUS). The subheading covers commercial calcium hypochlorite and other calcium hypochlorite. When tableted or blended with other materials, calcium hypochlorite may be entered under other tariff classifications, such as 3808.94.5000 and 3808.99.9500, which cover disinfectants and similar products. While the HTSUS subheadings, the CAS registry number, the U.S. EPA PC number, and the IMDG codes are provided for convenience and customs purposes, the written description of the scope of this order is dispositive. Analysis of Comments Received All issues raised in this sunset review are addressed in the Issues and Decision Memorandum,6 which is hereby adopted by this notice. The issues discussed in the Issues and Decision Memorandum are the likelihood of continuation or recurrence of a countervailable subsidy and the net countervailable subsidy likely to prevail if the order were revoked. 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 to all 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. Final Results of Review Pursuant to sections 751(c)(1) and 752(b) of the Act, Commerce determines that revocation of the CVD order on calcium hypochlorite from China would 6 See Memorandum ‘‘Issues and Decision Memorandum for the Final Results of the Expedited First Sunset Review of the Countervailing Duty Order on Calcium Hypochlorite from the People’s Republic of China,’’ dated concurrently with this notice (Issues and Decision Memorandum). E:\FR\FM\07APN1.SGM 07APN1

Agencies

[Federal Register Volume 85, Number 67 (Tuesday, April 7, 2020)]
[Notices]
[Pages 19440-19443]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07189]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-109]


Ceramic Tile From the People's Republic of China: Final 
Affirmative Countervailing Duty Determination, and Final Negative 
Critical Circumstances 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 ceramic tile from the People's Republic of China (China).

DATES: Applicable April 7, 2020.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, Moses Song, or John 
McGowan, AD/CVD Operations, Office VI, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
3813, (202) 482-7885, or (202) 482-3019, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 12, 2019, Commerce published the Preliminary 
Determination of this investigation.\1\

[[Page 19441]]

The petitioner is The Coalition for Fair Trade in Ceramic Tile. The 
mandatory respondents in this investigation are Temgoo International 
Trading Limited (Temgoo) and Foshan Sanfi Import & Export Co., Ltd. 
(Foshan Sanfi). In the Preliminary Determination, Commerce aligned the 
final determination in this countervailing duty (CVD) investigation 
with the final determination in the companion less-than-fair-value 
(LTFV) investigation, in accordance with section 705(a)(1) of the 
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4).
---------------------------------------------------------------------------

    \1\ See Ceramic Tile from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Investigation, 
Preliminary Negative Critical Circumstances Determination, and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 84 FR 48125 (September 12, 2019) (Preliminary 
Determination) and accompanying Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    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, are discussed in the 
Issues and Decision Memorandum.\2\ 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.
---------------------------------------------------------------------------

    \2\ See Memorandum, ``Issues and Decision for the Final 
Determination in the Countervailing Duty Investigation of Ceramic 
Tile from the People's Republic of China,'' dated concurrently, and 
hereby adopted by, this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Period of Investigation

    The period of investigation (POI) is from January 1, 2018 through 
December 31, 2018.

Scope of the Investigation

    The product covered by this investigation covers ceramic tile from 
China. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    During the course of this investigation and the concurrent LTFV 
investigation of ceramic tile from China, Commerce received scope 
comments from interested parties. On September 6, 2019, Commerce issued 
a Preliminary Scope Decision Memorandum.\3\ Several interested parties 
submitted case and rebuttal briefs concerning the scope of this 
investigation. For a summary of the product coverage comments and 
rebuttal comments submitted to the record for this final determination, 
and accompanying discussion and analysis of all comments timely 
received, see the Final Scope Decision Memorandum.\4\ Based on the 
comments received, Commerce is not modifying the scope language as it 
appeared in the Preliminary Determination. The scope in Appendix I 
remains unchanged from that which appeared in the Preliminary 
Determination.
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Ceramic Tile from the People's Republic of 
China Decision Memorandum for the Preliminary Determinations,'' 
dated September 6, 2019 (Preliminary Scope Decision Memorandum).
    \4\ See Memorandum, ``Ceramic Tile from the People's Republic of 
China: Scope Decision Memorandum for the Final Determinations, dated 
concurrently with this notice (Final Scope Decision Memorandum).
---------------------------------------------------------------------------

Analysis of Subsidy Programs and Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation, other than those issues related to scope, are 
discussed in the Issues and Decision Memorandum. A list of the issues 
raised by parties and responded to by Commerce in the Issues and 
Decision Memorandum, is attached at Appendix II.

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\5\ Commerce notes that, in making these findings, it relied, 
in part, on facts available and, because it finds that one or more 
respondents did not act to the best of their ability to respond to 
Commerce's requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\6\ 
For description of the methodology underlying our final determination, 
see the Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \5\ 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.
    \6\ See Memorandum, ``Ceramic Tile from the People's Republic of 
China Decision Memorandum for the Final Determination, dated 
concurrently with this notice (Final Scope Decision Memorandum).
---------------------------------------------------------------------------

Adverse Facts Available (AFA)

    Commerce relied on ``facts otherwise available,'' including adverse 
facts available (AFA), for several findings in the Preliminary 
Determination. For this final determination, we are basing the CVD 
rates for Temgoo and Foshan Sanfi on facts otherwise available, with an 
adverse inference, pursuant to sections 776(a) and (b) of the Act. For 
a full discussion of our application of AFA, see the Issues and 
Decision Memorandum.

Final Negative Determination of Critical Circumstances

    In the Preliminary Determination, Commerce determined, pursuant to 
section 703(e)(1) of the Act, that information provided in the critical 
circumstances allegation does not demonstrate the existence of critical 
circumstances with respect to imports of ceramic tile from China. For 
this final determination, we continue to find that critical 
circumstances do not exist with respect to imports of ceramic tile from 
China. For a full description of the methodology and results of 
Commerce's analysis, see the Issues and Decision Memorandum.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received from parties, we 
made certain changes to the respondents' subsidy rate calculations set 
forth in the Preliminary Determination. For a discussion of these 
changes, see the Issues and Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(5)(A) of the Act, Commerce shall 
determine an estimated all-others rate for companies not individually 
examined. Generally, under section 705(c)(5)(A)(i) of the Act, 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 on 
AFA under section 776 of the Act. However, section 705(c)(5)(A)(ii) of 
the Act provides that, where all countervailable subsidy rates 
established for the mandatory respondents are zero, de minimis, or 
based entirely on facts available, Commerce may use ``any reasonable 
method'' for assigning an all-others rate, including ``averaging the 
estimated average countervailable subsidy rates

[[Page 19442]]

determined for the exporters and producers individually investigated.'' 
In this investigation, all rates for the individually investigated 
respondents are based entirely on facts available, pursuant to section 
776 of the Act. We are relying on a simple average of the total AFA 
rates assigned to Temgoo and Foshan Sanfi as the all-others rate in 
this final determination, consistent with the statutory provision to 
rely on ``any reasonable method.''

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established individual estimated countervailable subsidy rates, as 
follows:
---------------------------------------------------------------------------

    \7\ Commerce assigned Sanfi's rate to each of the entities for 
which Sanfi provided an initial questionnaire response: Guangdong 
Sanfi Ceramics Group Co., Ltd.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Temgoo International Trading Limited....................          358.81
Sanfi Imp & Exp Co., Ltd \7\............................          358.81
All Others..............................................          358.81
------------------------------------------------------------------------

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
merchandise under consideration from China that were entered or 
withdrawn from warehouse, for consumption, on or after September 17, 
2019, the date of publication of the Preliminary Determination in the 
Federal Register. In accordance with section 703(d) of the Act, we 
instructed CBP to discontinue the suspension of liquidation for CVD 
purposes for subject merchandise entered, or withdrawn from warehouse, 
on or after January 10, 2020, but continue the suspension of 
liquidation of all entries from September 17 through January 9, 2020.
    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.

Disclosure

    We intend to disclose the calculations performed to parties in this 
proceeding within five days of its public announcement, or if there is 
no public announcement, within five days of the date of this notice, in 
accordance with 19 CFR 351.224(b).

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of ceramic tile 
from China. As Commerce's final determination is affirmative, in 
accordance with section 705(b) of the Act, the ITC will determine, 
within 45 days, whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports of ceramic tile from China, or sales (or the likelihood of 
sales) for importation of ceramic tile from China. In addition, we are 
making available to the ITC all non-privileged and nonproprietary 
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 APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the 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 in accordance with 
sections 705(d) and 777(i) of the Act and 19 CFR 351.210(c). Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information, until 
May 19, 2020, unless extended.\8\
---------------------------------------------------------------------------

    \8\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19, 85 FR 17006 (March 26, 2020).

    Dated: March 30, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is ceramic 
flooring tile, wall tile, paving tile, hearth tile, porcelain tile, 
mosaic tile, flags, finishing tile, and the like (hereinafter 
ceramic tile). Ceramic tiles are articles containing a mixture of 
minerals including clay (generally hydrous silicates of alumina or 
magnesium) that are fired so the raw materials are fused to produce 
a finished good that is less than 3.2 cm in actual thickness. All 
ceramic tile is subject to the scope regardless of end use, surface 
area, and weight, regardless of whether the tile is glazed or 
unglazed, regardless of the water absorption coefficient by weight, 
regardless of the extent of vitrification, and regardless of whether 
or not the tile is on a backing. Subject merchandise includes 
ceramic tile with decorative features that may in spots exceed 3.2 
cm in thickness and includes ceramic tile ``slabs'' or ``panels'' 
(tiles that are larger than 1 meter\2\ (11 ft.\2\)).
    Subject merchandise includes ceramic tile that undergoes minor 
processing in a third country prior to importation into the United 
States. Similarly, subject merchandise includes ceramic tile 
produced that undergoes minor processing after importation into the 
United States. Such minor processing includes, but is not limited 
to, one or more of the following: Beveling, cutting, trimming, 
staining, painting, polishing, finishing, additional firing, or any 
other processing that would otherwise not remove the merchandise 
from the scope of the investigation if performed in the country of 
manufacture of the in-scope product.
    Subject merchandise is currently classified in the Harmonized 
Tariff Schedule of the United States (HTSUS) under the following 
subheadings of heading 6907: 6907.21.1005, 6907.21.1011, 
6907.21.1051, 6907.21.2000, 6907.21.3000, 6907.21.4000, 
6907.21.9011, 6907.21.9051, 6907.22.1005, 6907.22.1011, 
6907.22.1051, 6907.22.2000, 6907.22.3000, 6907.22.4000, 
6907.22.9011, 6907.22.9051, 6907.23.1005, 6907.23.1011, 
6907.23.1051, 6907.23.2000, 6907.23.3000, 6907.23.4000, 
6907.23.9011, 6907.23.9051, 6907.30.1005, 6907.30.1011, 
6907.30.1051, 6907.30.2000, 6907.30.3000, 6907.30.4000, 
6907.30.9011, 6907.30.9051, 6907.40.1005, 6907.40.1011, 
6907.40.1051, 6907.40.2000, 6907.40.3000, 6907.40.4000, 
6907.40.9011, and 6907.40.9051. Subject merchandise may also enter 
under subheadings of headings 6914 and 6905: 6914.10.8000, 
6914.90.8000, 6905.10.0000, and 6905.90.0050. The HTSUS subheadings 
are provided for convenience and customs purposes only. The written 
description of the scope of this investigation is dispositive.

[[Page 19443]]

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Critical Circumstances
VI. Subsidies Valuation
VII. Benchmarks and Interest Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Discussion of Issues
    Comment 1: Application of AFA to Sanfi and Temgoo and 
Calculation of the All-Others Rate
    Comment 2: Whether Commerce's Calculation of the AFA Rate in 
Unreasonable
    Comment 3: Selection of AFA Rates for Subsidy Programs
    Comment 4: Preliminary Scope Determination
X. Recommendation

[FR Doc. 2020-07189 Filed 4-6-20; 8:45 am]
BILLING CODE 3510-DS-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.