[Federal Register Volume 79, Number 9 (Tuesday, January 14, 2014)]
[Notices]
[Pages 2417-2420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-00527]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-009]


Calcium Hypochlorite From the People's Republic of China: 
Initiation of Countervailing Duty Investigation

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

DATES: Effective Date: January 14, 2014.

FOR FURTHER INFORMATION CONTACT: Katie Marksberry, Office V, AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
7906.

SUPPLEMENTARY INFORMATION: 

The Petition

    On December 18, 2013, the Department of Commerce (the 
``Department'') received a countervailing duty (``CVD'') petition 
concerning imports of calcium hypochlorite from the People's Republic 
of China (``PRC''), filed in proper form by Arch Chemicals, Inc. 
(``Petitioner''), a domestic producer of calcium hypochlorite.\1\ The 
CVD Petition was accompanied by an antidumping duty (``AD'') petition 
concerning imports of calcium hypochlorite from the PRC. On December 
19, 2013, and December 24, 2013, the Department requested additional 
information and clarification of certain areas of the Petition, and on 
December 23, 2013, and December 30, 2013, Petitioner filed a response 
to each request.\2\
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    \1\ See ``Petition for the Imposition of Antidumping and 
Countervailing Duties on Calcium Hypochlorite from the People's 
Republic of China, dated December 18, 2013 (hereafter referred to as 
the ``Petition'').
    \2\ See Petitioner's December 23, 2013, filing titled, ``Calcium 
Hypochlorite from the People's Republic of China: Response to 
Supplemental Questions''; see also Petitioner's December 30, 2013, 
filing titled, ``Petition for the Imposition of Antidumping Duties 
on Imports of Calcium Hypochlorite from the People's Republic of 
China: Response to General Supplemental Questions'' (``General 
Issues Supplement'').
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the ``Act''), Petitioner alleges that producers/exporters of 
calcium hypochlorite in the PRC received countervailable subsidies 
within the meaning of sections 701 and 771(5) of the Act, and that 
imports from these producers/exporters materially injure, or threaten 
material injury to, an industry in the United States.
    The Department finds that Petitioner filed this Petition on behalf 
of the domestic industry because it is an interested party as defined 
in section 771(9)(C) of the Act. The Department also finds that 
Petitioner has demonstrated sufficient industry support with respect to 
the initiation of the CVD investigation that Petitioner is 
requesting.\3\
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    \3\ See ``Determination of Industry Support for the Petition'' 
section, below.
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Period of Investigation

    The period of investigation (``POI'') is January 1, 2012 through 
December 31, 2012, in accordance with 19 CFR 351.204(b)(2).

Scope of the Investigation

    The product covered by this investigation is calcium hypochlorite 
from the PRC. For a full description of the scope of the investigation, 
please see the ``Scope of Investigation'' in the appendix to this 
notice.

Comments on the Scope of the Investigation

    During our review of the Petition, we solicited information from 
Petitioner to ensure that the proposed scope language is an accurate 
reflection of the products for which the domestic industry is seeking 
relief. Moreover, as discussed in the preamble to the Department's 
regulations \4\, we are setting aside a period for interested parties 
to raise issues regarding product coverage. The Department encourages 
all interested parties to submit such comments by January 27, 2014, 
which is 20 calendar days from the signature date of this notice. All 
comments must be filed on the record of the CVD investigation, as well 
as the concurrent AD investigation.
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    \4\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
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Filing Requirements

    All submissions to the Department must be filed electronically 
using Enforcement & Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (``IA ACCESS''). An 
electronically filed document must be received successfully in its 
entirety by the Department's electronic records system, IA ACCESS, by 5 
p.m. on the due date. Documents excepted from the electronic submission 
requirements must be filed manually (i.e., in paper form) with the 
Enforcement & Compliance's APO/Dockets Unit, Room 1870, U.S. Department 
of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230, and stamped with the date and time of receipt by the deadline 
established by the Department.\5\
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    \5\ 19 CFR 351.303(b)(1). Information on help using IA ACCESS 
can be found at https://iaaccess.trade.gov/help.aspx and a handbook 
can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
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Consultations

    Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department 
held consultations with the government of the PRC (hereinafter, the 
``GOC'') with respect to the Petition on January 3, 2014.\6\
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    \6\ See ``Countervailing Duty Petition on Calcium Hypochlorite 
from the People's Republic of China: Consultations with the 
Government of the People's Republic of China,'' dated January 3, 
2014.
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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, the Department 
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

[[Page 2418]]

requisite industry support, the statute directs the Department to look 
to producers and workers who produce the domestic like product. The 
U.S. International Trade Commission (``ITC''), which is responsible for 
determining whether ``the domestic industry'' has been injured, must 
also determine what constitutes a domestic like product in order to 
define the industry. While both the Department and the ITC must apply 
the same statutory definition regarding the domestic like product,\7\ 
they do so for different purposes and pursuant to a separate and 
distinct authority. In addition, the Department'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.\8\
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    \7\ See section 771(10) of the Act.
    \8\ 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)).
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    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, Petitioner does not offer 
a definition of domestic like product distinct from the scope of the 
investigation. Based on our analysis of the information submitted on 
the record, we have determined that calcium hypochlorite, as defined in 
the scope of the investigation, constitutes a single domestic like 
product and we have analyzed industry support in terms of that domestic 
like product.\9\
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    \9\ See Countervailing Duty Investigation Initiation Checklist: 
Calcium Hypochlorite from the People's Republic of China (``CVD 
Initiation Checklist''), at Attachment II, Analysis of Industry 
Support for the Antidumping and Countervailing Duty Petitions 
Covering Calcium Hypochlorite from the People's Republic of China 
(``Attachment II''). This checklist is dated concurrently with this 
notice and on file electronically via IA ACCESS. Access to documents 
filed via IA ACCESS is also available in the Central Records Unit 
(``CRU''), Room 7046 of the main Department of Commerce building.
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    In determining whether 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 Investigation'' section above. To 
establish industry support, Petitioner provided its production of the 
domestic like product in 2012, and compared this to the estimated total 
production of the domestic like product for the entire domestic 
industry.\10\ Petitioner estimated total 2012 production of the 
domestic like product using its own production data and knowledge of 
the industry.\11\ We have relied upon data Petitioner provided for 
purposes of measuring industry support.\12\
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    \10\ See Volume I of the Petition, at 3-4 and Exhibit GEN-2.
    \11\ Id.
    \12\ See CVD Initiation Checklist, at Attachment II.
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    Based on information provided in the Petition, supplemental 
submission, and other information readily available to the Department, 
we determine that Petitioner has 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.\13\ Based on information provided in the Petition, 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. Accordingly, the Department determines 
that the Petition was filed on behalf of the domestic industry within 
the meaning of section 702(b)(1) of the Act.\14\
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    \13\ Id.
    \14\ Id.
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    The Department finds that Petitioner filed the Petition on behalf 
of the domestic industry because it is an interested party as defined 
in section 771(9)(C) of the Act and it has demonstrated sufficient 
industry support with respect to the countervailing duty investigation 
that it is requesting the Department initiate.\15\
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    \15\ Id.
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Injury Test

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

Allegations and Evidence of Material Injury and Causation

    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. Petitioner alleges that subject 
imports exceed the negligibility threshold provided for under section 
771(24)(A) of the Act.\16\
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    \16\ See Volume I of the Petition, at 18.
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    Petitioner contends that the industry's injured condition is 
illustrated by reduced market share; underselling and price depression 
or suppression; lost sales and revenues; reduced production and 
capacity utilization; decline in employment variables; and decline in 
financial performance.\17\ We have assessed the allegations and 
supporting evidence regarding material injury, threat of material 
injury, and causation, and we have determined that these allegations 
are properly supported by adequate evidence and meet the statutory 
requirements for initiation.\18\
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    \17\ See Volume I of the Petition, at 17-30 and Exhibits INJ-1 
through INJ-8.
    \18\ See Initiation Checklist, at Attachment III, Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Petitions Covering Calcium Hypochlorite from the People's Republic 
of China.
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Initiation of CVD Investigation

    Section 702(b)(1) of the Act requires the Department to initiate a 
CVD proceeding whenever an interested party files a CVD petition on 
behalf of an industry that: (1) Alleges the elements necessary for an 
imposition of a duty under section 701(a) of the Act; and (2) is 
accompanied by information reasonably available to the petitioner 
supporting the allegations.
    The Department has examined the Petition on calcium hypochlorite 
from the PRC and finds that it complies with the requirements of 
section 702(b)(1) of the Act. Therefore, in accordance with section 
702(b)(1) of the Act, we are initiating a CVD investigation to 
determine whether producers/exporters of calcium hypochlorite in the 
PRC receive countervailable subsidies. For a discussion of evidence 
supporting our initiation determination, see the CVD Initiation 
Checklist which accompanies this notice.
    Based on our review of the Petition, we find that there is 
sufficient information to initiate a CVD investigation of all 21 
alleged programs. For a full discussion of the basis for our decision 
to initiate on each program, see the CVD Initiation Checklist.

[[Page 2419]]

Respondent Selection

    For this investigation, the Department intends to select 
respondents based on U.S. Customs and Border Protection (``CBP'') data 
for U.S. imports during the POI (i.e., calendar year 2012) under the 
following Harmonized Tariff Schedule of the United States number: 
2828.10.0000. We intend to release the CBP data under Administrative 
Protective Order (``APO'') to all parties with access to information 
protected by APO within five days of the announcement of the initiation 
of this investigation. Interested parties may submit comments regarding 
the CBP data and respondent selection within seven calendar days of 
release of this data. We intend to make our decision regarding 
respondent selection within 20 days of publication of this Federal 
Register notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the representatives of the GOC. Because of the particularly 
large number of producers/exporters identified in the Petition, the 
Department considers the service of the public version of the petition 
to the foreign producers/exporters satisfied by the provision of the 
public version to the GOC, consistent with 19 CFR 351.203(c)(2).

ITC Notification

    We have notified the ITC of our 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 subsidized calcium hypochlorite from the PRC 
materially injure, or threaten material injury to, a U.S. industry.\19\ 
A negative ITC determination will result in the investigation being 
terminated.\20\ Otherwise, the investigation will proceed according to 
statutory and regulatory time limits.
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    \19\ See section 703(a)(2) of the Act.
    \20\ See section 703(a)(1) of the Act.
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Submission of Factual Information

    On April 10, 2013, the Department published Definition of Factual 
Information and Time Limits for Submission of Factual Information: 
Final Rule, 78 FR 21246 (April 10, 2013), which modified two 
regulations related to AD and CVD proceedings: The definition of 
factual information (19 CFR 351.102(b)(21)), and the time limits for 
the submission of factual information (19 CFR 351.301). The final rule 
identifies five categories of factual information in 19 CFR 
351.102(b)(21), which are summarized as follows: (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 the 
Department; and (v) evidence other than factual information described 
in (i)-(iv). The final rule requires any party, when submitting factual 
information, to specify under which subsection of 19 CFR 351.102(b)(21) 
the information is being submitted 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. The final rule also modified 19 CFR 351.301 so that, rather 
than providing general time limits, there are specific time limits 
based on the type of factual information being submitted. These 
modifications are effective for all proceeding segments initiated on or 
after May 10, 2013, and thus are applicable to this investigation. 
Please review the final rule, available at http://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt, prior to 
submitting factual information for this investigation.

Revised Extension of Time Limits Regulation

    On September 20, 2013, the Department modified its regulation 
concerning the extension of time limits for submissions in AD and CVD 
proceedings.\21\ The modification clarifies that parties may request an 
extension of time limits before a time limit established under Part 351 
expires, or as otherwise specified by the Secretary. In general, an 
extension request will be considered untimely if it is filed after the 
time limit established under Part 351 expires. For submissions which 
are due from multiple parties simultaneously, an extension request will 
be considered untimely if it is filed after 10:00 a.m. on the due date. 
Examples include, but are not limited to: (1) Case and rebuttal briefs, 
filed pursuant to 19 CFR 351.309; (2) factual information to value 
factors under section 19 CFR 351.408(c), or to measure the adequacy of 
remuneration under section 19 CFR 351.511(a)(2), filed pursuant to 19 
CFR 351.301(c)(3) and rebuttal, clarification and correction filed 
pursuant to 19 CFR 351.301(c)(3)(iv); (3) comments concerning the 
selection of a surrogate country and surrogate values and rebuttal; (4) 
comments concerning CBP data; and (5) quantity and value 
questionnaires. Under certain circumstances, the Department 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, the Department will inform parties in 
the letter or memorandum setting forth the deadline (including a 
specified time) by which extension requests must be filed to be 
considered timely. This modification also requires that an extension 
request must be made in a separate, stand-alone submission, and 
clarifies the circumstances under which the Department will grant 
untimely-filed requests for the extension of time limits. These 
modifications are effective for all segments initiated on or after 
October 21, 2013. Review Extension of Time Limits; Final Rule, 
available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information in this segment.
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    \21\ See Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013).
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Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\22\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials as well as their 
representatives in all AD or CVD investigations or proceedings 
initiated on or after August 16, 2013, including this 
investigation.\23\ The formats for the revised certifications are 
provided at the end of the Final Rule. The Department intends to reject 
factual submissions if the submitting party does not comply with the 
revised certification requirements.
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    \22\ See section 782(b) of the Act.
    \23\ See Certification of Factual Information To Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (``Final Rule'').
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on the Department's Web site at http://enforcement.trade.gov/apo/index.html.

[[Page 2420]]

    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: January 7, 2014.
Paul Piquado,
Assistant Secretary for Enforcement & Compliance.

Appendix I

Scope of the Investigation

    The product covered by this investigation 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% 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)2.2H2
O 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 investigation 
is dispositive.

[FR Doc. 2014-00527 Filed 1-13-14; 8:45 am]
BILLING CODE 3510-DS-P