[Federal Register Volume 80, Number 215 (Friday, November 6, 2015)]
[Notices]
[Pages 68847-68849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28351]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-021]


Melamine From the People's Republic of China: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (``Department'') determines that 
countervailable subsidies are being provided to producers and exporters 
of melamine from the People's Republic of China (``PRC''). For 
information on the estimated subsidy rates, see the ``Suspension of 
Liquidation'' section of this notice.

DATES: Effective: November 6, 2015.

FOR FURTHER INFORMATION CONTACT: Andrew Medley, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone 202-482-4987.

SUPPLEMENTARY INFORMATION:

Background

    The petitioner to this investigation is Cornerstone Chemical 
Company (``Petitioner''). The Department selected five mandatory 
respondents; Far-Reaching Chemical Co., Ltd. (``Far-Reaching 
Chemical''), Zhongyuan Dahua Group Co., Ltd. (``Zhongyuan Dahua''), 
Qingdao Unichem International Trade Co., Ltd. (``Qingdao Unichem''), M 
and A Chemicals Corp China (``M&A Chemicals''), and Shandong Liaherd 
Chemical Industry Co., Ltd. (``Shandong Liaherd''). All five mandatory 
respondents and the Government of the PRC refused to participate in 
this investigation.

Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2013, through December 31, 2013.

[[Page 68848]]

Case History

    The Department published its Preliminary Determination on April 20, 
2015.\1\ In it, the Department applied an adverse inference to find 
that the programs on which the Department initiated this investigation 
and the programs which the Department subsequently included in this 
investigation pursuant to allegations made by Petitioner,\2\ are 
countervailable. Further, the Department applied an adverse inference 
in its calculation of the ad valorem estimated countervailable subsidy 
rate for Far-Reaching Chemical, Zhongyuan Dahua, Qingdao Unichem, M&A 
Chemicals, and Shandong Liaherd. The Department invited, but did not 
receive, interested party comments on the Preliminary Determination. 
Thus, we have made no changes from the Preliminary Determination with 
respect to the determination to apply adverse inferences. However, as 
explained below, we made certain changes to the ad valorem final 
subsidy rate.
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    \1\ See Melamine From the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination With Final Antidumping Duty 
Determination, 80 FR 21706 (April 20, 2015) (``Preliminary 
Determination''), and the accompanying Preliminary Decision 
Memorandum.
    \2\ See the Department's memorandum entitled ``Countervailing 
Duty Investigation on Melamine from the People's Republic of China: 
January 27, 2015 New Subsidy Allegations,'' dated March 25, 2015.
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    Also in the Preliminary Determination, pursuant to section 
705(a)(1) of the Tariff Act of 1930, as amended (``the Act'') and 19 
CFR 351.210(b)(4), we aligned the final countervailing duty (``CVD'') 
determination with the final antidumping duty (``AD'') determination. 
On July 2, 2015, the Department postponed the final AD determination 
(and, thus, the instant, aligned, CVD determination) until November 2, 
2015.\3\
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    \3\ See Melamine from the People's Republic of China: 
Postponement of Final Determination of Sales at Less Than Fair 
Value, 80 FR 38175 (July 02, 2015).
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Scope of the Investigation

    The merchandise subject to this investigation is melamine (Chemical 
Abstracts Service (``CAS'') registry number 108-78-01, molecular 
formula C3H6N6).\4\ Melamine is a 
crystalline powder or granule typically (but not exclusively) used to 
manufacture melamine formaldehyde resins. All melamine is covered by 
the scope of this investigation irrespective of purity, particle size, 
or physical form. Melamine that has been blended with other products is 
included within this scope when such blends include constituent parts 
that have been intermingled, but that have not been chemically reacted 
with each other to produce a different product. For such blends, only 
the melamine component of the mixture is covered by the scope of this 
investigation. Melamine that is otherwise subject to this investigation 
is not excluded when commingled with melamine from sources not subject 
to this investigation. Only the subject component of such commingled 
products is covered by the scope of this investigation.
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    \4\ Melamine is also known as 2,4,6-triamino-s-triazine; 1,3,5-
Triazine-2,4,6-triamine; Cyanurotriamide; Cyanurotriamine; 
Cyanuramide; and by various brand names.
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    The subject merchandise is provided for in subheading 2933.61.0000 
of the Harmonized Tariff Schedule of the United States (``HTSUS''). 
Although the HTSUS subheading and CAS registry number are provided for 
convenience and customs purposes, the written description of the scope 
is dispositive.

Use of Facts Otherwise Available, Including Adverse Inferences

    For purposes of this final determination, we relied on facts 
available and applied an adverse inference, in accordance with sections 
776(a) and (b) of the Act, with regard to (1) the existence of a 
financial contribution, benefit, and specificity for the alleged 
subsidy programs and (2) the net subsidy rates assigned to Far-Reaching 
Chemical, Zhongyuan Dahua, Qingdao Unichem, M&A Chemicals, and Shandong 
Liaherd. A full discussion of our decision to rely on adverse facts 
available (``AFA'') is presented in the Preliminary Decision Memorandum 
under the section ``Use of Facts Otherwise Available and Adverse 
Inferences.'' However, for this final determination we are making 
certain changes to the AFA rates.\5\ Specifically, we are revising the 
AFA rates for ``Preferential Export Financing from the Export-Import 
Bank of China'' and ``Reduced Fee Export Insurance'' to reflect the 
highest calculated CVD rates for these programs.\6\
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    \5\ See Memorandum to the File titled ``Melamine from the 
People's Republic of China: Final Calculations,'' dated November 2, 
2015.
    \6\ Id. See also Countervailing Duty Investigation of Certain 
Passenger Vehicle and Light Truck Tires From the People's Republic 
of China: Final Affirmative Determination, and Final Affirmative 
Critical Circumstances Determination, in Part, 80 FR 34888 (June 18, 
2015), and accompanying issues and decision memorandum (where we 
calculated a rate of 4.25 percent for the similar program ``Export 
Seller's Credits from the Export Import Bank of China''), unchanged 
in Certain Passenger Vehicle and Light Truck Tires From the People's 
Republic of China: Amended Final Affirmative Antidumping Duty 
Determination and Antidumping Duty Order; and Amended Final 
Affirmative Countervailing Duty Determination and Countervailing 
Duty Order, 80 FR 47902 (August 10, 2015).
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Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we have 
calculated individual rates for Far-Reaching Chemical, Zhongyuan Dahua, 
Qingdao Unichem, M&A Chemicals, and Shandong Liaherd. Section 
705(c)(5)(A)(i) of the Act states that for companies not individually 
investigated, we will determine an ``all-others'' rate equal to the 
weighted average countervailable subsidy rates established for 
exporters and producers individually investigated, excluding any zero 
and de minimis countervailable rates, and any rates determined entirely 
under section 776 of the Act. Section 705(c)(5)(A)(ii) of the Act 
states that if the countervailable subsidy rates for all exporters and 
producers individually investigated are zero or de minimis rates, or 
are determined entirely under section 776 of the Act, the Department 
may use any reasonable method to establish an all-others rate for 
exporters and producers not individually investigated, including 
averaging the weighted average countervailable subsidy rates determined 
for the exporters and producers individually investigated. As described 
above, all of the mandatory respondents' subsidy rates were calculated 
entirely under section 776 of the Act. Therefore, we have resorted to 
``any reasonable method'' to derive the ``all-others'' rate, as 
described under section 705(c)(5)(A)(ii) of the Act. We are basing the 
``all-others'' rate on the simple average of the five rates determined 
for the mandatory respondents, consistent with section 705(c)(5)(A)(ii) 
of the Act.\7\
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    \7\ See, e.g., Carbon and Certain Alloy Steel Wire Rod From the 
People's Republic of China: Final Affirmative Countervailing Duty 
Determination and Final Affirmative Critical Circumstances 
Determination, 79 FR 68858 (November 19, 2014).

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[[Page 68849]]

    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Far-Reaching Chemical Co., Ltd..............................      154.00
M and A Chemicals Corp China................................      154.00
Qingdao Unichem International Trade Co., Ltd................      154.00
Shandong Liaherd Chemical Industry Co., Ltd.................  \8\ 156.90
Zhongyuan Dahua Group Co., Ltd..............................      154.00
All Others..................................................      154.58
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    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (``CBP'') to suspend liquidation of all entries of melamine 
from the PRC that were entered or withdrawn from warehouse, for 
consumption on or after April 20, 2015, the date of publication of the 
Preliminary Determination in the Federal Register. 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 August 18, 2015, but 
to continue the suspension of liquidation of all entries from April 20, 
2015, through August 17, 2015.
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    \8\ See Preliminary Decision Memorandum at 7, where we explained 
that the AFA rate applicable to Shandong Liaherd includes additional 
grant programs applicable only to Shandong Liaherd based upon 
information contained in Shandong's Liaherd's financial statements. 
See also ``Initiation Checklist: Melamine from the People's Republic 
of China'' (December 2, 2014).
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    If the U.S. International Trade Commission (``ITC'') issues a final 
affirmative injury determination, we will issue a CVD order and 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
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. In addition, we are making available to the 
ITC all non-privileged and non-proprietary 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 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.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve 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/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 that is subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

     Dated: October 30, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2015-28351 Filed 11-5-15; 8:45 am]
BILLING CODE 3510-DS-P