Certain Quartz Surface Products From India: Final Affirmative Countervailing Duty Determination and Final Affirmative Determination of Critical Circumstances, In Part, 25398-25400 [2020-09409]
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25398
Federal Register / Vol. 85, No. 85 / Friday, May 1, 2020 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[C–533–890]
Certain Quartz Surface Products From
India: Final Affirmative Countervailing
Duty Determination and Final
Affirmative Determination of Critical
Circumstances, In Part
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
certain quartz surface products (quartz
surface products) from India.
DATES: Applicable May 1, 2020.
FOR FURTHER INFORMATION CONTACT:
Kristen Johnson or Stephanie Moore,
AD/CVD Operations, Office III,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–4793 or
(202) 482–3692, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On October 11, 2019, Commerce
published the Preliminary
Determination of the countervailing
duty (CVD) investigation, which aligned
the final determination in this CVD
investigation with the final
determination in the companion
antidumping duty investigation of
quartz surface products from India.1 On
November 20, 2019, Commerce
published the Amended Preliminary
Determination in this investigation.2 On
March 12, 2020, we issued a PostPreliminary Determination.3
A summary of the events that
occurred since Commerce published the
1 See
Certain Quartz Surface Products from India:
Preliminary Affirmative Countervailing Duty
Determination, Preliminary Affirmative Critical
Circumstances Determination, In Part, and
Alignment of Final Determination With Final
Antidumping Duty Determination, 84 FR 54838
(October 11, 2019) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum
(PDM).
2 See Certain Quartz Surface Products from India:
Amended Preliminary Affirmative Countervailing
Duty Determination, Preliminary Affirmative
Critical Circumstances Determination, In Part, and
Alignment of Final Determination With Final
Antidumping Duty Determination, 84 FR 64047
(November 20, 2019) (Amended Preliminary
Determination), and accompanying Amended PDM.
3 See Memorandum, ‘‘Post-Preliminary Analysis
Memorandum in the Countervailing Duty
Investigation of Certain Quartz Surface Products
from India,’’ dated March 11, 2020 (PostPreliminary Determination).
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Amended 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,
which is hereby adopted by this notice.4
The Issues and Decision Memorandum
is a public document and is on file
electronically via Enforcement and
Compliance’s Antidumping and
Countervailing Duty Centralized
Electronic Service System (ACCESS).
ACCESS is available to registered users
at https://access.trade.gov. 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 is April 1,
2018 through March 31, 2019.
Scope of the Investigation
The products covered by this
investigation are quartz surface products
from India. For a complete description
of the scope of this investigation, see
Appendix I.
Scope Comments
On December 4, 2019, Commerce
issued a Preliminary Scope
Memorandum.5 We received no scope
case briefs from interested parties.
Therefore, Commerce has made no
changes to the scope of this
investigation since the Preliminary
Determination.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed in the
Issues and Decision Memorandum. A
list of the issues that parties raised is
attached to this notice as Appendix II.
Methodology
Commerce conducted this
investigation in accordance with section
701 of the Tariff Act of 1930, as
amended (the Act). For each of the
subsidy programs found
countervailable, Commerce determines
that there is a subsidy, i.e., a financial
4 See Memorandum, ‘‘Issues and Decisions
Memorandum for the Final Determination of the
Countervailing Duty Investigation of Certain Quartz
Surface Products from India,’’ dated concurrently
with, and hereby adopted by, this notice (Issues and
Decisions Memorandum).
5 See Memorandum, ‘‘Certain Quartz Surface
Products from India and Turkey: Preliminary Scope
Decision Memorandum,’’ dated December 4, 2019.
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Frm 00016
Fmt 4703
Sfmt 4703
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient,
and that the subsidy is specific.6
Additionally, consistent with the PostPreliminary Determination, we relied on
facts available with an adverse inference
(AFA) in accordance with sections
776(a) and (b) of the Act, for certain
determinations with respect to the
Government of India. For a full
description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
Verification
As provided in section 782(i) of the
Act, in December 2019 and February
2020, we conducted verification of the
information submitted by Antique
Marbonite Private Limited (Antique
Marbonite) and Pokarna Engineered
Stone Limited (Pokarna), respectively,
for use in Commerce’s final
determination. We used standard
verification procedures, including an
examination of relevant accounting
records and original source documents
provided by the respondents.7
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties and
our verification findings, we made
certain changes to the subsidy rate
calculations for Pokarna. For a
discussion of these changes, see the
Issues and Decision Memorandum.
Final Affirmative Determination of
Critical Circumstances, In Part
Pursuant to section 705(a)(2) of the
Act, Commerce determines that critical
circumstances exist for imports of
quartz surface products from India for
all other companies. For further
information on Commerce’s critical
circumstances analysis, see the Issues
and Decision Memorandum.
All-Others Rate
In accordance with section
705(c)(1)(B)(i)(I) of the Act, we
calculated an individual estimated
subsidy rate for Antique Marbonite and
Pokarna. Section 705(c)(5)(A)(i) of the
Act states that for companies not
individually investigated, we will
6 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.
7 See Memorandum, ‘‘Verification of the
Questionnaire Responses of Antique Marbonite
Private Limited and its responding cross-owned
affiliated companies,’’ dated January 8, 2020; see
also Memorandum, ‘‘Verification of the
Questionnaire Responses of Pokarna Engineered
Stone Limited and Pokarna Limited,’’ dated March
11, 2020.
E:\FR\FM\01MYN1.SGM
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Federal Register / Vol. 85, No. 85 / Friday, May 1, 2020 / Notices
of the investigation section, that was
entered or withdrawn from warehouse
for consumption on or after October 11,
2019, the date of publication of the
Preliminary Determination in the
Federal Register, for Pokarna. For all
other companies, Commerce instructed
CBP to suspend liquidation of entries of
subject merchandise that was entered or
withdrawn from warehouse for
consumption on or after July 13, 2019,
because Commerce determined that
critical circumstances exist for imports
Final Determination
of subject merchandise from all
We determine the total estimated net
producers and/or exporters not
countervailable subsidy rates to be:
individually examined.
Because the preliminary subsidy rate
Subsidy
for Antique Marbonite was de minimis,
Producer/exporter
rate
Commerce directed CBP not to suspend
(percent)
liquidation of entries of the subject
merchandise produced by Antique
Antique Marbonite Private LimMarbonite and exported by Antique
10 1.57
ited 9 ........................................
Marbonite, Antique Trust, Prism
Pokarna Engineered Stone Limited 11 .......................................
2.34 Johnson, or Shivam. However, because
the final subsidy rate for Antique
All Others .............................
2.17 Marbonite is above de minimis, in
accordance with section 705(c)(1)(C) of
Disclosure
the Act, we are directing CBP to
suspend liquidation of all entries of
We intend to disclose to interested
quartz surface products from India
parties the calculations and analysis
produced and/or exported by Antique
performed in this final determination
Marbonite that are entered, or
within five days of any public
withdrawn from warehouse, for
announcement or, if there is no public
consumption on or after the date of the
announcement, within five days of the
publication of this notice in the Federal
date of the publication of this notice to
parties in this proceeding in accordance Register and to require a cash deposit
for such entries of merchandise in the
with 19 CFR 351.224(b).
amount indicated above.
Continuation of Suspension of
As a result of the Amended
Liquidation
Preliminary Determination, on
November 21, 2019, Commerce
As a result of our Preliminary
Determination, and pursuant to sections instructed CBP to suspend liquidation
of entries of subject merchandise, that
703(d)(1)(B) and (d)(2) of the Act,
Commerce instructed U.S. Customs and was entered or withdrawn from
warehouse for consumption on or after
Border Protection (CBP) to suspend
November 20, 2019, the date of
liquidation of entries of subject
publication of the Amended Preliminary
merchandise, as described in the scope
Determination in the Federal Register,
at a different cash deposit rate for
8 See Memorandum, ‘‘Certain Quartz Surface
Pokarna and all other producers/exports
Products from India: All Others Rate,’’ dated
concurrently with this notice.
(i.e., other than Antique Marbonite) than
9 The company’s legal name is Antique Marbonite
the cash deposit rates in the Preliminary
Private Limited and trade name is Antique
Determination.
Marbonite Pvt. Ltd. Commerce finds the following
In accordance with section 703(d) of
companies to be cross owned with Antique
the Act, we issued instructions to CBP
Marbonite Private Limited: Antique Granito
Shareholders Trust (Antique Trust), Prism Johnson
to discontinue the suspension of
Limited (Prism Johnson), and Shivam Enterprise
liquidation for CVD purposes for subject
(Shivam).
merchandise entered, or withdrawn
10 Unlike at the Preliminary Determination,
from warehouse, on or after February 8,
Antique Marbonite’s subsidy rate is not de minimis
2020, but to continue the suspension of
for this final determination. On February 10, 2020,
the United States Trade Representative published in liquidation of all entries from October
the Federal Register revised designations of
11, 2019 through February 7, 2020 for
developing and least-developed countries under the
Pokarna and July 13, 2019 through
CVD law. Effective as of February 10, 2020, India
is no longer designated as a developing country and February 7, 2020, for all producers and/
now has a de minimis rate of 1.0 percent. See
or exporters not individually examined.
Designations of Developing and Least-Developed
If the U.S. International Trade
Countries Under the Countervailing Duty Law, 85
Commission (ITC) issues a final
FR 7613 (February 10, 2020).
affirmative injury determination, we
11 Commerce finds the following company to be
cross owned with Pokarna: Pokarna Limited.
will issue a CVD order, reinstate the
determine an all-others rate equal to the
weighted average of the countervailable
subsidy rates established for exporters
and producers individually
investigated, excluding any zero and de
minimis countervailable subsidy rates,
and any rates based entirely on AFA
under section 776 of the Act, by exports
of subject merchandise to the United
States. Therefore, the all-others rate is a
weighted average of the Antique
Marbonite and Pokarna rates.8
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25399
suspension of liquidation under section
706(a) of the Act, and will 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.
ITC Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. Because the final
determination in this proceeding is
affirmative, in accordance with section
705(b) of the Act, the ITC will make its
final determination as to whether the
domestic industry in the United States
is materially injured, or threatened with
material injury, by reason of imports of
quartz surface products from India no
later than 45 days after our final
determination. If the ITC determines
that material injury or threat of material
injury does not exist, the proceeding
will be terminated and all cash deposits
will be refunded. If the ITC determines
that material injury or threat of material
injury does exist, Commerce will issue
a CVD order directing CBP to assess,
upon further instruction by Commerce,
countervailing duties on all imports of
the subject merchandise entered, or
withdrawn from warehouse, for
consumption on or after the effective
date of the suspension of liquidation, as
discussed above in the ‘‘Continuation of
Suspension of Liquidation’’ section.
Notification Regarding Administrative
Protective Orders
In the event the ITC issues a final
negative injury determination, this
notice serves as the only reminder to
parties subject to an APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return 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 subject to sanction.
Notification to Interested Parties
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act and 19 CFR
351.210(c).
E:\FR\FM\01MYN1.SGM
01MYN1
25400
Federal Register / Vol. 85, No. 85 / Friday, May 1, 2020 / Notices
Dated: April 27, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by the
investigation is certain quartz surface
products. Quartz surface products consist of
slabs and other surfaces created from a
mixture of materials that includes
predominately silica (e.g., quartz, quartz
powder, cristobalite, glass powder) as well as
a resin binder (e.g., an unsaturated polyester).
The incorporation of other materials,
including, but not limited to, pigments,
cement, or other additives does not remove
the merchandise from the scope of the
investigation. However, the scope of the
investigation only includes products where
the silica content is greater than any other
single material, by actual weight. Quartz
surface products are typically sold as
rectangular slabs with a total surface area of
approximately 45 to 60 square feet and a
nominal thickness of one, two, or three
centimeters. However, the scope of this
investigation includes surface products of all
other sizes, thicknesses, and shapes. In
addition to slabs, the scope of this
investigation includes, but is not limited to,
other surfaces such as countertops,
backsplashes, vanity tops, bar tops, work
tops, tabletops, flooring, wall facing, shower
surrounds, fire place surrounds, mantels, and
tiles. Certain quartz surface products are
covered by the investigation whether
polished or unpolished, cut or uncut,
fabricated or not fabricated, cured or
uncured, edged or not edged, finished or
unfinished, thermoformed or not
thermoformed, packaged or unpackaged, and
regardless of the type of surface finish.
In addition, quartz surface products are
covered by the investigation whether or not
they are imported attached to, or in
conjunction with, non-subject merchandise
such as sinks, sink bowls, vanities, cabinets,
and furniture. If quartz surface products are
imported attached to, or in conjunction with,
such non-subject merchandise, only the
quartz surface product is covered by the
scope.
Subject merchandise includes material
matching the above description that has been
finished, packaged, or otherwise fabricated in
a third country, including by cutting,
polishing, curing, edging, thermoforming,
attaching to, or packaging with another
product, or any other finishing, packaging, or
fabrication that would not otherwise remove
the merchandise from the scope of the
investigation if performed in the country of
manufacture of the quartz surface products.
The scope of the investigation does not
cover quarried stone surface products, such
as granite, marble, soapstone, or quartzite.
Specifically excluded from the scope of the
investigation are crushed glass surface
products. Crushed glass surface products
must meet each of the following criteria to
qualify for this exclusion: (1) The crushed
glass content is greater than any other single
material, by actual weight; (2) there are
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08:07 May 01, 2020
Jkt 250001
pieces of crushed glass visible across the
surface of the product; (3) at least some of the
individual pieces of crushed glass that are
visible across the surface are larger than 1
centimeter wide as measured at their widest
cross-section (‘‘Glass Pieces’’); and (4) the
distance between any single Glass Piece and
the closest separate Glass Piece does not
exceed three inches.
The products subject to the scope are
currently classified in the Harmonized Tariff
Schedule of the United States (HTSUS) under
the following subheading: 6810.99.0010.
Subject merchandise may also enter under
subheadings 6810.11.0010, 6810.11.0070,
6810.19.1200, 6810.19.1400, 6810.19.5000,
6810.91.0000, 6810.99.0080, 6815.99.4070,
2506.10.0010, 2506.10.0050, 2506.20.0010,
2506.20.0080, and 7016.90.1050. The HTSUS
subheadings set forth above are provided for
convenience and U.S. Customs purposes
only. The written description of the scope is
dispositive.
Appendix II
List of Topics Discussed in the Final
Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Affirmative Final Determination of Critical
Circumstances
VI. Use of Facts Otherwise Available and
Adverse Inferences
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Analysis of Comments
Comment 1: Appropriate De Minimis
Threshold for India
Comment 2: Application of AFA for the
Provision of Natural Gas for Less Than
Adequate Remuneration (LTAR)
Comment 3: Whether Commerce Should
Select Imports of Liquified Natural Gas
as the Natural Gas Benchmark
Comment 4: Whether Commerce’s Natural
Gas AFA Determination Rewards NonCompliance
Comment 5: Inclusion of the Integrated
Goods and Services Tax in the Natural
Gas Benchmark
Comment 6: Whether Commerce Should
Countervail the Duty Drawback Scheme
Comment 7: Whether Commerce Should
Countervail the Interest Equalization
Scheme for Export Financing
Comment 8: Whether Special Economic
Zone (SEZ) Programs Which Pokarna
Used Are Countervailable
Comment 9: Whether Pokarna’s Lease of
Land from the Andhra Pradesh Industrial
Investment Corporation (APIIC)
Constitutes a Countervailable Subsidy
Comment 10: Whether Commerce Used the
Correct Benchmark to Determine
Whether the APIIC Allotted Land to
Pokarna for LTAR
Comment 11: Whether Pokarna
Misrepresented Its Purchase of Land and
Fixed Assets Originally Owned by Indo
Rock Granite Private Limited (Indo Rock)
That Warrants the Application of
Adverse Facts Available
Comment 12: Whether Commerce Used an
Incorrect Sales Denominator When
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
Calculating the Net Subsidy Rate for a
Countervailable Subsidy Attributable to
Pokarna Limited
Comment 13: Whether Commerce’s
Initiation of this Investigation Was
Contrary to Law
X. Recommendation
[FR Doc. 2020–09409 Filed 4–30–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–489–838]
Certain Quartz Surface Products From
the Republic of Turkey: Final
Affirmative Countervailing Duty
Determination and Final Affirmative
Determination of Critical
Circumstances, In Part
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
certain quartz surface products (quartz
surface products) from the Republic of
Turkey (Turkey).
DATES: Applicable May 1, 2020.
FOR FURTHER INFORMATION CONTACT:
Stephanie Berger or Peter Zukowski,
AD/CVD Operations, Office III,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–2483 or
(202) 482–0189, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On October 11, 2019, Commerce
published the Preliminary
Determination of the countervailing
duty (CVD) investigation, which aligned
the final determination in this CVD
investigation with the final
determination in the companion
antidumping duty (AD) investigation of
quartz surface products from Turkey.1
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
1 See Certain Quartz Surface Products from the
Republic of Turkey: Preliminary Affirmative
Countervailing Duty Determination, Preliminary
Affirmative Critical Circumstances Determination,
and Alignment of Final Determination with Final
Antidumping Duty Determination, 84 FR 54843
(October 11, 2019) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum
(PDM).
E:\FR\FM\01MYN1.SGM
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Agencies
[Federal Register Volume 85, Number 85 (Friday, May 1, 2020)]
[Notices]
[Pages 25398-25400]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09409]
[[Page 25398]]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-890]
Certain Quartz Surface Products From India: Final Affirmative
Countervailing Duty Determination and Final Affirmative Determination
of Critical Circumstances, In Part
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 certain quartz surface products (quartz surface products) from
India.
DATES: Applicable May 1, 2020.
FOR FURTHER INFORMATION CONTACT: Kristen Johnson or Stephanie Moore,
AD/CVD Operations, Office III, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4793
or (202) 482-3692, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 11, 2019, Commerce published the Preliminary
Determination of the countervailing duty (CVD) investigation, which
aligned the final determination in this CVD investigation with the
final determination in the companion antidumping duty investigation of
quartz surface products from India.\1\ On November 20, 2019, Commerce
published the Amended Preliminary Determination in this
investigation.\2\ On March 12, 2020, we issued a Post-Preliminary
Determination.\3\
---------------------------------------------------------------------------
\1\ See Certain Quartz Surface Products from India: Preliminary
Affirmative Countervailing Duty Determination, Preliminary
Affirmative Critical Circumstances Determination, In Part, and
Alignment of Final Determination With Final Antidumping Duty
Determination, 84 FR 54838 (October 11, 2019) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Certain Quartz Surface Products from India: Amended
Preliminary Affirmative Countervailing Duty Determination,
Preliminary Affirmative Critical Circumstances Determination, In
Part, and Alignment of Final Determination With Final Antidumping
Duty Determination, 84 FR 64047 (November 20, 2019) (Amended
Preliminary Determination), and accompanying Amended PDM.
\3\ See Memorandum, ``Post-Preliminary Analysis Memorandum in
the Countervailing Duty Investigation of Certain Quartz Surface
Products from India,'' dated March 11, 2020 (Post-Preliminary
Determination).
---------------------------------------------------------------------------
A summary of the events that occurred since Commerce published the
Amended 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, which is hereby adopted by this
notice.\4\ The Issues and Decision Memorandum is a public document and
is on file electronically via Enforcement and Compliance's Antidumping
and Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at https://access.trade.gov. 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.
---------------------------------------------------------------------------
\4\ See Memorandum, ``Issues and Decisions Memorandum for the
Final Determination of the Countervailing Duty Investigation of
Certain Quartz Surface Products from India,'' dated concurrently
with, and hereby adopted by, this notice (Issues and Decisions
Memorandum).
---------------------------------------------------------------------------
Period of Investigation
The period of investigation is April 1, 2018 through March 31,
2019.
Scope of the Investigation
The products covered by this investigation are quartz surface
products from India. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
On December 4, 2019, Commerce issued a Preliminary Scope
Memorandum.\5\ We received no scope case briefs from interested
parties. Therefore, Commerce has made no changes to the scope of this
investigation since the Preliminary Determination.
---------------------------------------------------------------------------
\5\ See Memorandum, ``Certain Quartz Surface Products from India
and Turkey: Preliminary Scope Decision Memorandum,'' dated December
4, 2019.
---------------------------------------------------------------------------
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised is attached to this notice as Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines that there
is a subsidy, i.e., a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\6\ Additionally, consistent with the Post-Preliminary
Determination, we relied on facts available with an adverse inference
(AFA) in accordance with sections 776(a) and (b) of the Act, for
certain determinations with respect to the Government of India. For a
full description of the methodology underlying our final determination,
see the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\6\ 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.
---------------------------------------------------------------------------
Verification
As provided in section 782(i) of the Act, in December 2019 and
February 2020, we conducted verification of the information submitted
by Antique Marbonite Private Limited (Antique Marbonite) and Pokarna
Engineered Stone Limited (Pokarna), respectively, for use in Commerce's
final determination. We used standard verification procedures,
including an examination of relevant accounting records and original
source documents provided by the respondents.\7\
---------------------------------------------------------------------------
\7\ See Memorandum, ``Verification of the Questionnaire
Responses of Antique Marbonite Private Limited and its responding
cross-owned affiliated companies,'' dated January 8, 2020; see also
Memorandum, ``Verification of the Questionnaire Responses of Pokarna
Engineered Stone Limited and Pokarna Limited,'' dated March 11,
2020.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties and our verification findings, we made certain changes to the
subsidy rate calculations for Pokarna. For a discussion of these
changes, see the Issues and Decision Memorandum.
Final Affirmative Determination of Critical Circumstances, In Part
Pursuant to section 705(a)(2) of the Act, Commerce determines that
critical circumstances exist for imports of quartz surface products
from India for all other companies. For further information on
Commerce's critical circumstances analysis, see the Issues and Decision
Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated an individual estimated subsidy rate for Antique Marbonite
and Pokarna. Section 705(c)(5)(A)(i) of the Act states that for
companies not individually investigated, we will
[[Page 25399]]
determine an all-others rate equal to the weighted average of the
countervailable subsidy rates established for exporters and producers
individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates based entirely on AFA
under section 776 of the Act, by exports of subject merchandise to the
United States. Therefore, the all-others rate is a weighted average of
the Antique Marbonite and Pokarna rates.\8\
---------------------------------------------------------------------------
\8\ See Memorandum, ``Certain Quartz Surface Products from
India: All Others Rate,'' dated concurrently with this notice.
---------------------------------------------------------------------------
Final Determination
We determine the total estimated net countervailable subsidy rates
to be:
------------------------------------------------------------------------
Subsidy
Producer/exporter rate
(percent)
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Antique Marbonite Private Limited \9\....................... \10\ 1.57
Pokarna Engineered Stone Limited \11\....................... 2.34
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All Others.............................................. 2.17
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Disclosure
We intend to disclose to interested parties the calculations and
analysis performed in this final determination within five days of any
public announcement or, if there is no public announcement, within five
days of the date of the publication of this notice to parties in this
proceeding in accordance with 19 CFR 351.224(b).
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\9\ The company's legal name is Antique Marbonite Private
Limited and trade name is Antique Marbonite Pvt. Ltd. Commerce finds
the following companies to be cross owned with Antique Marbonite
Private Limited: Antique Granito Shareholders Trust (Antique Trust),
Prism Johnson Limited (Prism Johnson), and Shivam Enterprise
(Shivam).
\10\ Unlike at the Preliminary Determination, Antique
Marbonite's subsidy rate is not de minimis for this final
determination. On February 10, 2020, the United States Trade
Representative published in the Federal Register revised
designations of developing and least-developed countries under the
CVD law. Effective as of February 10, 2020, India is no longer
designated as a developing country and now has a de minimis rate of
1.0 percent. See Designations of Developing and Least-Developed
Countries Under the Countervailing Duty Law, 85 FR 7613 (February
10, 2020).
\11\ Commerce finds the following company to be cross owned with
Pokarna: Pokarna Limited.
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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, Commerce instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise, as described in the scope of the investigation
section, that was entered or withdrawn from warehouse for consumption
on or after October 11, 2019, the date of publication of the
Preliminary Determination in the Federal Register, for Pokarna. For all
other companies, Commerce instructed CBP to suspend liquidation of
entries of subject merchandise that was entered or withdrawn from
warehouse for consumption on or after July 13, 2019, because Commerce
determined that critical circumstances exist for imports of subject
merchandise from all producers and/or exporters not individually
examined.
Because the preliminary subsidy rate for Antique Marbonite was de
minimis, Commerce directed CBP not to suspend liquidation of entries of
the subject merchandise produced by Antique Marbonite and exported by
Antique Marbonite, Antique Trust, Prism Johnson, or Shivam. However,
because the final subsidy rate for Antique Marbonite is above de
minimis, in accordance with section 705(c)(1)(C) of the Act, we are
directing CBP to suspend liquidation of all entries of quartz surface
products from India produced and/or exported by Antique Marbonite that
are entered, or withdrawn from warehouse, for consumption on or after
the date of the publication of this notice in the Federal Register and
to require a cash deposit for such entries of merchandise in the amount
indicated above.
As a result of the Amended Preliminary Determination, on November
21, 2019, Commerce instructed CBP to suspend liquidation of entries of
subject merchandise, that was entered or withdrawn from warehouse for
consumption on or after November 20, 2019, the date of publication of
the Amended Preliminary Determination in the Federal Register, at a
different cash deposit rate for Pokarna and all other producers/exports
(i.e., other than Antique Marbonite) than the cash deposit rates in the
Preliminary Determination.
In accordance with section 703(d) of the Act, we issued
instructions to CBP to discontinue the suspension of liquidation for
CVD purposes for subject merchandise entered, or withdrawn from
warehouse, on or after February 8, 2020, but to continue the suspension
of liquidation of all entries from October 11, 2019 through February 7,
2020 for Pokarna and July 13, 2019 through February 7, 2020, for all
producers and/or exporters not individually examined.
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 will
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.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. Because the final determination in this
proceeding is affirmative, in accordance with section 705(b) of the
Act, the ITC will make its final determination as to whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports of quartz surface
products from India no later than 45 days after our final
determination. If the ITC determines that material injury or threat of
material injury does not exist, the proceeding will be terminated and
all cash deposits will be refunded. If the ITC determines that material
injury or threat of material injury does exist, Commerce will issue a
CVD order directing CBP to assess, upon further instruction by
Commerce, countervailing duties on all imports of the subject
merchandise entered, or withdrawn from warehouse, for consumption on or
after the effective date of the suspension of liquidation, as discussed
above in the ``Continuation of Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Orders
In the event the ITC issues a final negative injury determination,
this notice serves as the only reminder to parties subject to an APO of
their responsibility concerning the destruction of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return 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 subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act and 19 CFR 351.210(c).
[[Page 25400]]
Dated: April 27, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by the investigation is certain quartz
surface products. Quartz surface products consist of slabs and other
surfaces created from a mixture of materials that includes
predominately silica (e.g., quartz, quartz powder, cristobalite,
glass powder) as well as a resin binder (e.g., an unsaturated
polyester). The incorporation of other materials, including, but not
limited to, pigments, cement, or other additives does not remove the
merchandise from the scope of the investigation. However, the scope
of the investigation only includes products where the silica content
is greater than any other single material, by actual weight. Quartz
surface products are typically sold as rectangular slabs with a
total surface area of approximately 45 to 60 square feet and a
nominal thickness of one, two, or three centimeters. However, the
scope of this investigation includes surface products of all other
sizes, thicknesses, and shapes. In addition to slabs, the scope of
this investigation includes, but is not limited to, other surfaces
such as countertops, backsplashes, vanity tops, bar tops, work tops,
tabletops, flooring, wall facing, shower surrounds, fire place
surrounds, mantels, and tiles. Certain quartz surface products are
covered by the investigation whether polished or unpolished, cut or
uncut, fabricated or not fabricated, cured or uncured, edged or not
edged, finished or unfinished, thermoformed or not thermoformed,
packaged or unpackaged, and regardless of the type of surface
finish.
In addition, quartz surface products are covered by the
investigation whether or not they are imported attached to, or in
conjunction with, non-subject merchandise such as sinks, sink bowls,
vanities, cabinets, and furniture. If quartz surface products are
imported attached to, or in conjunction with, such non-subject
merchandise, only the quartz surface product is covered by the
scope.
Subject merchandise includes material matching the above
description that has been finished, packaged, or otherwise
fabricated in a third country, including by cutting, polishing,
curing, edging, thermoforming, attaching to, or packaging with
another product, or any other finishing, packaging, or fabrication
that would not otherwise remove the merchandise from the scope of
the investigation if performed in the country of manufacture of the
quartz surface products.
The scope of the investigation does not cover quarried stone
surface products, such as granite, marble, soapstone, or quartzite.
Specifically excluded from the scope of the investigation are
crushed glass surface products. Crushed glass surface products must
meet each of the following criteria to qualify for this exclusion:
(1) The crushed glass content is greater than any other single
material, by actual weight; (2) there are pieces of crushed glass
visible across the surface of the product; (3) at least some of the
individual pieces of crushed glass that are visible across the
surface are larger than 1 centimeter wide as measured at their
widest cross-section (``Glass Pieces''); and (4) the distance
between any single Glass Piece and the closest separate Glass Piece
does not exceed three inches.
The products subject to the scope are currently classified in
the Harmonized Tariff Schedule of the United States (HTSUS) under
the following subheading: 6810.99.0010. Subject merchandise may also
enter under subheadings 6810.11.0010, 6810.11.0070, 6810.19.1200,
6810.19.1400, 6810.19.5000, 6810.91.0000, 6810.99.0080,
6815.99.4070, 2506.10.0010, 2506.10.0050, 2506.20.0010,
2506.20.0080, and 7016.90.1050. The HTSUS subheadings set forth
above are provided for convenience and U.S. Customs purposes only.
The written description of the scope is dispositive.
Appendix II
List of Topics Discussed in the Final Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Affirmative Final Determination of Critical Circumstances
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Analysis of Comments
Comment 1: Appropriate De Minimis Threshold for India
Comment 2: Application of AFA for the Provision of Natural Gas
for Less Than Adequate Remuneration (LTAR)
Comment 3: Whether Commerce Should Select Imports of Liquified
Natural Gas as the Natural Gas Benchmark
Comment 4: Whether Commerce's Natural Gas AFA Determination
Rewards Non- Compliance
Comment 5: Inclusion of the Integrated Goods and Services Tax in
the Natural Gas Benchmark
Comment 6: Whether Commerce Should Countervail the Duty Drawback
Scheme
Comment 7: Whether Commerce Should Countervail the Interest
Equalization Scheme for Export Financing
Comment 8: Whether Special Economic Zone (SEZ) Programs Which
Pokarna Used Are Countervailable
Comment 9: Whether Pokarna's Lease of Land from the Andhra
Pradesh Industrial Investment Corporation (APIIC) Constitutes a
Countervailable Subsidy
Comment 10: Whether Commerce Used the Correct Benchmark to
Determine Whether the APIIC Allotted Land to Pokarna for LTAR
Comment 11: Whether Pokarna Misrepresented Its Purchase of Land
and Fixed Assets Originally Owned by Indo Rock Granite Private
Limited (Indo Rock) That Warrants the Application of Adverse Facts
Available
Comment 12: Whether Commerce Used an Incorrect Sales Denominator
When Calculating the Net Subsidy Rate for a Countervailable Subsidy
Attributable to Pokarna Limited
Comment 13: Whether Commerce's Initiation of this Investigation
Was Contrary to Law
X. Recommendation
[FR Doc. 2020-09409 Filed 4-30-20; 8:45 am]
BILLING CODE 3510-DS-P