[Federal Register Volume 80, Number 248 (Monday, December 28, 2015)]
[Notices]
[Pages 80751-80753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32632]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-020, C-570-021]


Melamine From the People's Republic of China: Antidumping Duty 
and Countervailing Duty Orders

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (``Department'') and the International Trade Commission 
(``ITC''), the Department is issuing antidumping duty (``AD'') and 
countervailing duty (``CVD'') orders on melamine from the People's 
Republic of China (``PRC'').

DATES:  Effective Date: December 28, 2015.

FOR FURTHER INFORMATION CONTACT: James Terpstra at (202) 482-3965 or 
Brendan Quinn at (202) 482-5848, 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.

SUPPLEMENTARY INFORMATION:

Background

    On November 6, 2015, the Department published its final affirmative 
determination of sales at less than fair value (``LTFV'') and its final 
affirmative determination that countervailable subsidies are being 
provided to producers and exporters of melamine from the PRC.\1\ On 
December 18, 2015, the ITC notified the Department of its final 
affirmative determination pursuant to section 735(b)(1)(A)(i) of the 
Tariff Act of 1930, as amended (``the Act''), that an industry in the 
United States is materially injured by reason of LTFV imports and 
subsidized imports of melamine from the PRC.\2\
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    \1\ See Melamine From the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value, 80 FR 68851 
(November 6, 2015) (``AD Final Determination''). See also Melamine 
From the People's Republic of China: Final Affirmative 
Countervailing Duty Determination, 80 FR 68847 (November 6, 2015).
    \2\ See ITC Notification Letter to the Deputy Assistant 
Secretary for Enforcement and Compliance referencing ITC 
Investigation Nos. 701-TA-526-527 and 731-TA-1262-1263 (December 18, 
2015) (``ITC Notification'').
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Scope of the Orders

    The merchandise subject to these orders is melamine (Chemical 
Abstracts Service (``CAS'') registry number 108-78-01, molecular 
formula C3H6N6).\3\ 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 these orders 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 these 
orders. Melamine that is otherwise subject to these orders 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 these orders.
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    \3\ Melamine is also known as 2,4,6-triamino-s-triazine; l,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.

Antidumping Duty Order

    In accordance with sections 735(b)(1)(A)(i) and 735(d) of the Act, 
the ITC has notified the Department of its final determination in this 
investigation, in which it found that imports of melamine from the PRC 
are materially injuring a U.S. industry. Therefore, in accordance with 
section 735(c)(2) of the Act, we are publishing this antidumping duty 
order.
    As a result of the ITC's final determination, in accordance with 
section 736(a)(1) of the Act, the Department will direct U.S. Customs 
and Border Protection (``CBP'') to assess, upon further instruction by 
the Department, antidumping duties equal to the amount by which the 
normal value of the merchandise exceeds the export price (or 
constructed export price) of the merchandise, for all relevant entries 
of melamine from the PRC. These antidumping duties will be assessed on 
unliquidated entries from the PRC entered, or withdrawn from warehouse, 
for consumption on or after June 18, 2015, the date on which the 
Department published the AD Preliminary Determination,\4\ but will

[[Page 80752]]

not include entries occurring after the expiration of the provisional 
measures period and before publication of the ITC's final injury 
determination, as further described below.
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    \4\ See Melamine from the People's Republic of China: 
Preliminary Determination of Sales at Less Than Fair Value, 80 FR 
34891 (June 18, 2015) (``AD Preliminary Determination'').
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Continuation of Suspension of Liquidation (AD)

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct CBP to continue to suspend liquidation on entries of subject 
merchandise from the PRC. We will also instruct CBP to require cash 
deposits equal to the estimated amount by which the normal value 
exceeds the U.S. price as indicated in the chart below, adjusted where 
appropriate for export subsidies.\5\ These instructions suspending 
liquidation will remain in effect until further notice.
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    \5\ See AD Final Determination, 80 FR at 68852 (describing the 
adjustments to the AD margins in more detail); see also sections 
772(c)(1)(C) and 777A(f) of the Act, respectively. Unlike in 
administrative reviews, the Department calculates the adjustment for 
export subsidies in investigations not in the margin calculation 
program, but in the cash deposit instructions issued to CBP. See, 
e.g.,Notice of Final Determination of Sales at Less Than Fair Value, 
and Negative Determination of Critical Circumstances: Certain Lined 
Paper Products from India, 71 FR 45012 (August 8, 2006), and 
accompanying Issues and Decision Memorandum at Comment 1.
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    Accordingly, effective on the date of publication of the ITC's 
final affirmative injury determination, CBP will require, at the same 
time as importers would normally deposit estimated duties on this 
subject merchandise, a cash deposit equal to the estimated weighted-
average antidumping duty margins, adjusted where appropriate for export 
subsidies, as discussed above.\6\ The ``PRC-wide'' rate applies to all 
exporters of subject merchandise not specifically listed.
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    \6\ See sections 736(a)(3), 772(c)(1)(C) and 777A(f) of the Act. 
Although the statute contemplates an adjustment for estimated 
domestic subsidy pass through, as stated in the AD Final 
Determination, we are not adjusting the PRC-wide rate for estimated 
domestic subsidy pass-through in this case because we have no basis 
upon which to make such an adjustment.
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Provisional Measures (AD)

    Section 733(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months except where exporters representing a 
significant proportion of exports of the subject merchandise request 
the Department to extend that four-month period to no more than six 
months. At the request of exporters that accounted for a significant 
proportion of exports of melamine from the PRC, we extended the four-
month period to no more than six months.\7\ In the underlying 
investigation, the Department published the AD Preliminary 
Determination on June 18, 2015. Therefore, the six-month period 
beginning on the date of the publication of the AD Preliminary 
Determination will end on December 15, 2015. Furthermore, section 
737(b) of the Act states that definitive duties are to begin on the 
date of publication of the ITC's final injury determination.
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    \7\ See Melamine from the People's Republic of China: 
Postponement of Final Determination of Sales at Less Than Fair 
Value, 80 FR 38175 (July 2, 2015).
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    Therefore, in accordance with section 733(d) of the Act and our 
practice, we will instruct CBP to terminate the suspension of 
liquidation and to liquidate, without regard to antidumping duties, 
unliquidated entries of melamine from the PRC entered, or withdrawn 
from warehouse, for consumption on or after December 15, 2015, the date 
the provisional measures expired, until and through the day preceding 
the date of publication of the ITC's final injury determination in the 
Federal Register.

Estimated Weighted-Average Dumping Margin

    The Department determines that the estimated final weighted-average 
dumping margin is as follows:

------------------------------------------------------------------------
                                                       Weighted-average
                      Exporter                         margin (percent)
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PRC-Wide Entity \8\.................................              363.31
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Countervailing Duty Order

    In accordance with sections 705(b)(1)(A)(i) and 705(d) of the Act, 
the ITC has notified the Department of its final determination that the 
industry in the United States producing melamine is materially injured 
by reason of subsidized imports of melamine from the PRC.\9\ Therefore, 
in accordance with section 705(c)(2) and 706(a) of the Act, we are 
publishing this countervailing duty order.
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    \8\ The PRC-wide entity includes, among other companies, the 
mandatory respondents Allied Chemicals Inc., Xinji Jiuyuan Chemical 
Co., Ltd., Sichuan Golden Elephant Sincerity Chemical Co., Ltd., and 
Zhongyuan Dahua Group Inc., which withdrew from the investigation 
prior to respondent selection. As stated previously, we will adjust 
cash deposit rates by the amount of export subsidies, where 
appropriate. In this LTFV investigation, with regard to PRC-wide 
entity, export subsidies constitute 9.66 percent of the final 
calculated countervailing duty rate in the concurrent countervailing 
duty investigation, and, thus, we will offset the PRC-wide rate of 
363.31 percent by the countervailing duty rate attributable to 
export subsidies (i.e., 9.66 percent). As a result, the cash deposit 
rate for the PRC-wide entity will be 353.65 percent.
    \9\ See ITC Notification.
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    Pursuant to section 706(a) of the Act, the Department will direct 
CBP to assess, upon further instruction by the Department, 
countervailing duties on unliquidated entries of melamine entered, or 
withdrawn from warehouse, for consumption on or after April 20, 2015, 
the date on which the Department published its affirmative preliminary 
countervailing duty determination in the Federal Register,\10\ and 
before August 18, 2015, the date on which the Department instructed CBP 
to discontinue the suspension of liquidation in accordance with section 
703(d) of the Act. Section 703(d) of the Act states that the suspension 
of liquidation pursuant to a preliminary determination may not remain 
in effect for more than four months. Entries of melamine made on or 
after August 18, 2015, and prior to the date of publication of the 
ITC's final determination in the Federal Register are not liable for 
the assessment of countervailing duties, due to the Department's 
discontinuation, effective August 18, 2015, of the suspension of 
liquidation.
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    \10\ 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).
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Provisional Measures (CVD)

    In accordance with Section 703(d) of the Act, the provisional 
measures period for the countervailing duty investigation ended on 
August 18, 2015, and CBP was instructed to terminate the suspension of 
liquidation and to liquidate, without regard to countervailing duties, 
unliquidated entries of melamine from the PRC, entered, or withdrawn 
from warehouse, for consumption on or after August 18, 2015, the date 
the provisional measures expired, until and through the day preceding 
the date of publication of the ITC's final injury determination in the 
Federal Register.

Suspension of Liquidation (CVD)

    In accordance with section 706 of the Act, the Department will 
direct CBP to reinstitute suspension of liquidation, effective on the 
date of publication of the ITC's notice of final determination in the 
Federal Register, and to assess, upon further instruction by the 
Department pursuant to section 706(a)(1) of the Act, countervailing 
duties for each entry of the subject merchandise in an amount based on 
the net countervailable subsidy rates for the subject merchandise. The 
Department will also direct CBP to require a cash deposit for each 
entry of subject merchandise in an amount equal to the

[[Page 80753]]

net countervailable subsidy rates listed below. The all-others rate 
applies to all producers and exporters of subject merchandise not 
specifically listed.

------------------------------------------------------------------------
                  Company                      Subsidy rate (percent)
------------------------------------------------------------------------
Far-Reaching Chemical Co., Ltd............                        154.00
M and A Chemicals Corp China..............                        154.00
Qingdao Unichem International Trade Co.,                          154.00
 Ltd......................................
Shandong Liaherd Chemical Industry Co.,                           156.90
 Ltd......................................
Zhongyuan Dahua Group Co., Ltd............                        154.00
All Others................................                        154.58
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Notification to Interested Parties

    This notice constitutes the AD and CVD orders with respect to 
melamine from the PRC pursuant to sections 736(a) and 706(a) of the 
Act. Interested parties can find an updated list of orders currently in 
effect by either visiting http://enforcement.trade.gov/stats/iastats1.html or by contacting the Department's Central Records Unit, 
Room B8024 of the main Commerce Building.
    These orders are published in accordance with sections 706(a), 
736(a), and 777(i) of the Act, and 19 CFR 351.211(b).

    Dated: December 21, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance .
[FR Doc. 2015-32632 Filed 12-24-15; 8:45 am]
 BILLING CODE 3510-DS-P