[Federal Register Volume 80, Number 157 (Friday, August 14, 2015)]
[Notices]
[Pages 48819-48821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20124]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-862]


Countervailing Duty Investigation of Certain Polyethylene 
Terephthalate Resin From India: Preliminary Affirmative Determination, 
Preliminary Affirmative Critical Circumstances Determination, in Part, 
and Alignment of Final Determination With Final Antidumping Duty 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers/exporters of certain polyethylene terephthalate (PET) resin 
from India. The period of investigation is January 1, 2014, through 
December 31, 2014. Interested parties are invited to comment on this 
preliminary determination.

DATES: Effective Date: August 14, 2015.

FOR FURTHER INFORMATION CONTACT: Yasmin Nair or Angelica Townshend, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-3813 
or (202) 482-3019, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The merchandise covered by this investigation is PET resin. The 
merchandise subject to this investigation is properly classified under 
subheading 3907.60.00.30 of the Harmonized Tariff Schedule of the 
United States (HTSUS). Although the HTSUS subheading is provided for 
convenience and customs purposes, the written description of the 
merchandise under investigation is dispositive.\1\
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    \1\ For a complete description of the Scope of the Order, see 
Memorandum from Christian Marsh, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, to Ronald K. 
Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, ``Decision Memorandum for the Preliminary Determination 
in the Countervailing Duty Investigation of Certain Polyethylene 
Terephthalate Resin from India,'' dated concurrently with this 
notice (Preliminary Decision Memorandum).
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Methodology

    The Department is conducting this countervailing duty (CVD) 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (the Act). For each of the subsidy programs found 
countervailable, we preliminarily determine 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.\2\ For a 
full description of the methodology underlying our preliminary 
conclusions, see the Preliminary Decision Memorandum.\3\ The 
Preliminary 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 http://access.trade.gov, and 
is available to all parties in the Central Records Unit, Room B8024 of 
the main Department of Commerce building. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://trade.gov/enforcement. The signed Preliminary Decision 
Memorandum and the electronic versions of the Preliminary Decision 
Memorandum are identical in content.
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    \2\ 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.
    \3\ See Preliminary Decision Memorandum.
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    The Department notes that, in making this preliminary 
determination, we relied, in part, on facts available and, because one 
respondent did not act to the best of its ability to respond to the 
Department's requests for information, we drew an adverse inference 
where appropriate in selecting from among the facts otherwise available 
with respect to that respondent.\4\ For further information, see ``Use 
of Facts Otherwise Available and Adverse Inferences'' in the 
accompanying Preliminary Decision Memorandum.
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    \4\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning 
the final CVD determination in this investigation with the final 
determination in the companion antidumping duty (AD) investigation of 
PET resin from India based on a request made by Petitioners.\5\ 
Consequently, the final CVD determination will be issued on the same 
date as the final AD determination, which is currently scheduled to be 
issued no later than December 21, 2015,\6\ unless postponed.
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    \5\ DAK Americas, LLC; M&G Chemicals; and Nan Ya Plastics 
Corporation, America (collectively, Petitioners); see also Letter 
from Petitioners dated, July 31, 2015.
    \6\ We note that the current deadline for the final AD 
determination is December 20, 2015, which is a Sunday. Pursuant to 
Department practice, the signature date will be the next business 
day, which is Monday, December 21, 2015. See Notice of 
Clarification: Application of ``Next Business Day'' Rule for 
Administrative Determination Deadlines Pursuant to the Tariff Act of 
1930, As Amended, 70 FR 24533 (May 10, 2005).
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Preliminary Affirmative Determination of Critical Circumstances

    On July 16, 2015, Petitioners filed a timely critical circumstances 
allegation, pursuant to section 773(e)(1) of the Act and 19 CFR 
351.206(c)(1), alleging that critical circumstances exist with respect 
to imports of PET resin from India.\7\ We preliminarily determine that 
critical circumstances do not exist for Dhunseri Petrochem Ltd., but do 
exist for JBF Industries Limited, and the all-others companies. A 
discussion of our determination can be found in the Preliminary 
Decision Memorandum at the section, ``Critical Circumstances.''
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    \7\ See Letter from Petitioners dated July 16, 2015.
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Preliminary Determination and Suspension of Liquidation

    We preliminarily determine the countervailable subsidy rates to be:

[[Page 48820]]



------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/producer                        (percent)
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Dhunseri Petrochem Ltd (formerly Dhunseri Petrochem and             5.50
 Tea Ltd) (collectively, Dhunseri)......................
JBF Industries Limited..................................          115.04
All-Others..............................................            5.50
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    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, we 
are directing U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of PET resin from India 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 amounts indicated 
above. Moreover, because we preliminarily find that critical 
circumstances exist with respect to JBF Industries Ltd. and all other 
exporters or producers not individually examined, in accordance with 
section 703(e)(2)(A) of the Act, we are directing CBP to apply the 
suspension of liquidation to any unliquidated entries entered, or 
withdrawn from warehouse for consumption by these companies, on or 
after the date which is 90 days prior to the date of publication of 
this notice in the Federal Register.
    Sections 703(d) and 705(c)(5)(A) of the Act state that for 
companies not investigated, we will determine an all-others rate by 
weighting the individual company subsidy rate of each of the companies 
investigated by each company's exports of subject merchandise to the 
United States, excluding rates that are zero or de minimis or any rates 
determined entirely on the facts available. In this investigation, the 
only rate that is not zero or de minimis or determined entirely on 
facts available is the rate calculated for Dhunseri. Consequently, the 
rate calculated for Dhunseri is also assigned as the ``all-others'' 
rate.

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by Dhunseri and the Government of India (GOI) 
prior to making our final determination.

Disclosure and Public Comment

    The Department intends to disclose to interested parties the 
calculations performed for this preliminary determination within five 
days of the date of public announcement of this determination in 
accordance with 19 CFR 351.224(b). Case briefs or other written 
comments for all non-scope issues may be submitted to the Assistant 
Secretary for Enforcement and Compliance no later than seven days after 
the date on which the final verification report is issued in this 
proceeding, and rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\8\ A table of contents, list of authorities used 
and an executive summary of issues should accompany any briefs 
submitted to the Department. This summary should be limited to five 
pages total, including footnotes.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Interested parties who wish to request a hearing must submit a 
written request to the Assistant Secretary for Enforcement and 
Compliance, U.S. Department of Commerce, filed electronically using 
ACCESS. An electronically filed request for a hearing must be received 
successfully in its entirety by the Department's electronic records 
system, ACCESS, by 5:00 p.m. Eastern Time, within 30 days after the 
date of publication of this notice.\9\ Requests should contain the 
party's name, address, and telephone number; the number of 
participants; and a list of the issues to be discussed. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230, at a date and time to be determined. Parties 
will be notified of the date and time of any hearing. The hearing will 
be limited to issues raised in the respective briefs.\10\
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    \9\ See 19 CFR 351.310(c).
    \10\ Id.
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (ITC) of our determination. In addition, 
we are making available to the ITC all non-privileged and non-
proprietary information relating 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, without the written consent of the Assistant Secretary for 
Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: August 7, 2015.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
    A. Initiation and Case History
    B. Period of Investigation
III. Alignment
IV. Scope Comments
V. Scope of the Investigation
VI. Injury Test
VII. Subsidies Valuation
    A. Allocation Period
    B. Attribution of Subsidies
    C. Denominators
    D. Benchmarks and Discount Rates Short-Term and Long-Term Rupee 
Denominated Loans Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
    JBF Industries Limited (JBF)
    Selection of the Adverse Facts Available Rate
    Corroboration of Secondary Information
IX. Critical Circumstances
X. Analysis of Programs
    A. Programs Preliminarily Determined To Be Countervailable
    1. Export Promotion of Capital Goods Scheme (EPCG)
    2. Duty Drawback (DDB)
    3. Focus Product Scheme (FPS)
    4. Income Tax Exemption Scheme (ITES)
    5. Incentive Under the West Bengal State Support for Industries 
Scheme
    B. Programs Preliminary Determined Not To Be Used or Not To 
Confer a Benefit During the POI by Dhunseri
    Government of India Programs
    a) Pre- and Post-Shipment Export Financing
    b) Status Holder Incentive Scrip
    c) Advance Licenses Program
    d) Focus Market Scheme
    e) Special Economic Zones (6 programs) Export Oriented Units 
(EOUs) Program: Duty Drawback on Furnace Oil Procured From Domestic 
Oil Companies
    f) GOI Loan Guarantees
    g) Market Development Assistance Program
    State Government Programs
    h) Maharashtra Market Development Assistance Program
    i) Maharashtra Industrial Promotion Subsidy
    j) Maharashtra Electricity Duty Exemption
    k) Maharashtra Waiver of Stamp Duty
    l) State Government of Maharashtra--Incentives to Strengthening 
Micro-, Small-, and Medium-Sized and Large Scale Industries
    m) State Government of Gujarat--Industrial Policy 2009 Scheme
    C. Programs For Which Additional Information Is Needed
    D. Preliminary AFA Rates Determined for Programs Used by JBF

[[Page 48821]]

XI. Calculation of the All Others Rate
XII. ITC Notification
XIII. Disclosure and Public Comment
XIV. Verification
    Recommendation
[FR Doc. 2015-20124 Filed 8-13-15; 8:45 am]
 BILLING CODE 3510-DS-P