[Federal Register Volume 81, Number 49 (Monday, March 14, 2016)]
[Notices]
[Pages 13331-13334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05707]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-024]
Certain Polyethylene Terephthalate Resin From the People's
Republic of China: Final Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
imports of certain polyethylene terephthalate resin (PET resin) from
the People's Republic of China (PRC) are being sold in the United
States at less than fair value (LTFV), as provided in section 735 of
the Tariff Act of 1930, as amended (the Act). The final weighted-
average dumping margins of sales at LTFV are listed in the ``Final
Determination Margins'' section, infra.
DATES: Effective Date: March 14, 2016.
FOR FURTHER INFORMATION CONTACT: Steve Bezirganian or Tyler Weinhold,
AD/CVD Operations, Office VI, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW., Washington, DC 20230; telephone: (202) 482-1131 or (202)
482-1121, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 15, 2015, the Department of Commerce (Department)
published in the Federal Register the preliminary determination in the
LTFV investigation of PET resin from the PRC.\1\ For a
[[Page 13332]]
description of the events that have occurred since the Preliminary
Determination, see the Issue and Decision Memorandum, which is hereby
adopted by this notice.\2\ 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
http://access.trade.gov and to all parties in the Central Records Unit,
room B8024 of the main Department of Commerce building. In addition, a
complete version of the Issues and Decision Memorandum can be accessed
directly at http://enforcement.trade.gov. The signed and electronic
versions of the Issues and Decision Memorandum are identical in
content.
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\1\ See Certain Polyethylene Terephthalate Resin From the
People's Republic of China: Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination, 80 FR
62024 (October 15, 2015) (Preliminary Determination). We later
published a correction to that notice, which corrected errors in the
weighted-average margin chart appearing in the Preliminary
Determination (see Certain Polyethylene Terephthalate Resin From the
People's Republic of China: Notice of Correction to Preliminary
Affirmative Less Than Fair Value Determination, 80 FR 69643
(November 10, 2015).
\2\ See Memorandum from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, to
Paul Piquado, Assistant Secretary for Enforcement and Compliance,
``Issues and Decision Memorandum for the Final Determination of the
Antidumping Duty Investigation of Certain Polyethylene Terephthalate
Resin From the People's Republic of China,'' dated concurrently with
this notice (Issues and Decision Memorandum).
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As explained in the memorandum from the Acting Assistant Secretary
for Enforcement & Compliance, the Department has exercised its
discretion to toll all administrative deadlines due to the recent
closure of the Federal Government because of snowstorm ``Jonas.'' All
deadlines in this segment of the proceeding have been extended by four
business days. The revised deadline for the final determination of this
investigation is now March 4, 2016.
Period of Investigation
The period of investigation (POI) is July 1, 2014, through December
31, 2014.
Scope of the Investigation
The merchandise covered by this investigation is certain PET resin
from the PRC. For a full description of the scope of the investigation,
see Appendix I to this notice.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues and Decision Memorandum
accompanying this notice. A list of the issues raised and to which the
Department responded is attached to this notice as Appendix II.
Changes to the Margin Calculations Since the Preliminary Determination
Based on the Department's analysis of the comments received and our
findings at verification, we made certain changes to our margin
calculations. For a discussion of these changes, see the Issues and
Decision Memorandum.
Combination Rates
In the Initiation Notice,\3\ the Department stated that it would
calculate combination rates for the respondents that are eligible for a
separate rate in this investigation. Policy Bulletin 05.1 describes
this practice.\4\
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\3\ See Certain Polyethylene Terephthalate Resin From Canada,
the People's Republic of China, India, and the Sultanate of Oman:
Initiation of Less-Than-Fair-Value Investigations, 80 FR 18376
(April 6, 2015) (Initiation Notice).
\4\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
the Department's Web site at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Separate Rate
Under section 735(c)(5)(A) of the Act, the rate for all other
companies that have not been individually examined is normally an
amount equal to the weighted average of the estimated weighted average
dumping margins established for exporters and producers individually
investigated, excluding any zero and de minimis margins, and any
margins determined entirely on the basis of facts available. In this
final determination, the Department has calculated rates for both
mandatory respondents that are not zero, de minimis, or based entirely
on facts available. Therefore, the Department has assigned to the
companies that have not been individually examined but have
demonstrated their eligibility for a separate rate a margin of 114.47
percent, which is the weighted-average of Xingyu's and FEIS's margins
using publicly-ranged quantities for their sales of subject
merchandise.\5\
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\5\ See Memorandum to the File entitled ``Final Determination of
the Investigation of Certain Polyethylene Terephthalate Resin from
the People's Republic of China: Calculation of the Final Margin for
Separate Rate Companies,'' dated concurrently with this notice. With
two respondents, we normally calculate: (A) A weighted-average of
the dumping margins calculated for the mandatory respondents; (B) a
simple average of the dumping margins calculated for the mandatory
respondents; and (C) a weighted-average of the dumping margins
calculated for the mandatory respondents using each company's
publicly-ranged values for the merchandise under consideration. We
compare (B) and (C) to (A) and select the rate closest to (A) as the
most appropriate rate for all other companies. See Ball Bearings and
Parts Thereof From France, Germany, Italy, Japan, and the United
Kingdom: Final Results of Antidumping Duty Administrative Reviews,
Final Results of Changed-Circumstances Review, and Revocation of an
Order in Part, 75 FR 53661, 53663 (September 1, 2010).
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PRC-Wide Rate
In our Preliminary Determination, we found that certain PRC
exporters and/or producers of the merchandise under consideration
during the POI did not respond to the Department's quantity and value
questionnaire. As a result, we preliminarily determined to calculate
the PRC-wide rate on the basis of adverse facts available (AFA). For
the final determination, we have determined to use, as the AFA rate
applied to the PRC-wide entity, 126.58 percent, the highest CONNUM-
specific dumping margin calculated in this final determination.
Consistent with our practice, the Department selected Xingyu's highest
CONNUM-specific margin, as AFA, because this rate is higher than the
other rates in this investigation and therefore, sufficiently adverse
to serve the purposes of facts available.\6\ Furthermore, there is no
need to corroborate the selected margin because it is based on
information submitted by Xingyu in the course of this investigation,
i.e., it is not secondary information.\7\
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\6\ See Issues and Decision Memorandum for a detailed
discussion.
\7\ See 19 CFR 351.308(c) and (d) and section 776(c) of the Act.
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Final Determination Margins
The Department determines that the final weighted-average dumping
margins, and cash deposit rates reflecting adjustments to the weighted-
average dumping margins to account for export subsidies and estimated
domestic subsidy pass-through (see below for additional explanation),
are as follows:
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Weighted- Cash
average deposit
Exporter Producer marginl rate
(percent) (percent)
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Far Eastern Industries (Shanghai) Ltd. or Far Eastern Industries (Shanghai) Ltd. 104.98 99.29
Oriental Industries (Suzhou) Limited.\8\ or Oriental Industries (Suzhou)
Limited.
[[Page 13333]]
Jiangyin Xingyu New Material Co., Ltd. or Jiangyin Xingyu New Material Co., Ltd. 118.32 114.25
Jiangsu Xingye Plastic Co., Ltd. or Jiangyin or Jiangsu Xingye Plastic Co., Ltd.
Xingjia Plastic Co., Ltd. or Jiangyin Xingtai or Jiangyin Xingjia Plastic Co., Ltd.
New Material Co., Ltd. or Jiangsu Xingye or Jiangyin Xingtai New Material Co.,
Polytech Co., Ltd.\9\ Ltd. or Jiangsu Xingye Polytech Co.,
Ltd.
Dragon Special Resin (XIAMEN) Co., Ltd........ Dragon Special Resin (XIAMEN) Co., Ltd 114.47 100.90
Hainan Yisheng Petrochemical Co., Ltd......... Hainan Yisheng Petrochemical Co., Ltd. 114.47 105.75
Shanghai Hengyi Polyester Fiber Co., Ltd...... Shanghai Hengyi Polyester Fiber Co., 114.47 105.75
Ltd.
Zhejiang Wankai New Materials Co., Ltd........ Zhejiang Wankai New Materials Co., Ltd 114.47 105.75
PRC-Wide Entity............................... ...................................... 126.58 125.75
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\8\ In the Preliminary Determination, we collapsed Oriental Industries (Suzhou) Limited with FEIS. No parties
challenged those findings, and we are continuing to collapse those firms in this final determination.
\9\ In the Preliminary Determination, we collapsed four firms (Jiangsu Xingye Plastic Co., Ltd., Jiangyin
Xingjia Plastic Co., Ltd., Jiangyin Xingtai New Material Co., Ltd., and Jiangsu Xingye Polytech Co., Ltd.)
with Xingyu. No parties challenged those findings, and we are continuing to so collapse those firms in this
final determination.
Disclosure
We intend to disclose to parties in this proceeding the
calculations performed for this final determination within five days of
the date of public announcement of our final determination, in
accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
Pursuant to section 735(c)(1)(B) of the Act, the Department will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all entries of PET resin from the PRC, which
were entered, or withdrawn from warehouse, for consumption on or after
October 15, 2015, the date of publication in the Federal Register of
the affirmative Preliminary Determination. Further, pursuant to section
735(c)(1)(B)(ii) of the Act, the Department will instruct CBP to
require a cash deposit \10\ equal to the weighted-average amount by
which the normal value exceeds U.S. price, adjusted where appropriate
for export subsidies and estimated domestic subsidy pass-through,\11\
as follows: (1) For the exporter/producer combination listed in the
table above, the cash deposit rate will be equal to the dumping margin
which the Department determined in this final determination; (2) for
all combinations of PRC exporters/producers of merchandise under
consideration which have not received their own separate rate above,
the cash deposit rate will be equal to the dumping margin established
for the PRC-wide entity; and (3) for all non-PRC exporters of
merchandise under consideration which have not received their own
separate rate above, the cash deposit rate will be equal to the cash
deposit rate applicable to the PRC exporter/producer combination that
supplied that non-PRC exporter. The suspension of liquidation
instructions will remain in effect until further notice.
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\10\ See Modification of Regulations Regarding the Practice of
Accepting Bonds During the Provisional Measures Period in
Antidumping and Countervailing Duty Investigations, 76 FR 61042
(October 3, 2011).
\11\ See sections 772(c)(1)(C) and 777A(f) of the Act,
respectively.
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Consistent with the Preliminary Determination and as noted above,
where the product under investigation is also subject to a concurrent
countervailing duty investigation, we instruct CBP to require a cash
deposit less the amount of the countervailing duty determined to
constitute any export subsidies or domestic subsidy pass through.
Therefore, in the event that countervailing duty order is issued and
suspension of liquidation is resumed in the companion countervailing
duty investigation on PET resin from the PRC, the Department will
instruct CBP to require cash deposits adjusted by the amount of export
subsidies and domestic subsidy pass through, as appropriate. These
adjustments are reflected in the final column of the rate chart,
above.\12\ Until such suspension of liquidation is resumed in the
companion countervailing duty investigation, and so long as suspension
of liquidation continues under this antidumping duty investigation, the
cash deposit rates for this antidumping duty investigation will be the
rates identified in the weighted-average margin column in the rate
chart, above.
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\12\ For details regarding the calculation of these adjustments,
see the March 4, 2016, memorandum to the File entitled ``Certain
Polyethylene Terephthalate Resin From the People's Republic of
China: Final Double Remedies Calculation Memorandum.''
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International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
U.S. International Trade Commission (ITC) of our final determination.
As our final determination is affirmative, in accordance with section
735(b)(2) of the Act, the ITC will determine within 45 days whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports or sales (or the
likelihood of sales) for importation of the subject merchandise. If the
ITC determines that such injury exists, the Department will issue an
antidumping duty order directing CBP to assess, upon further
instruction by the Department, antidumping 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.
Return or Destruction of Proprietary Information
This notice will serve as a reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of the destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
We are issuing and publishing this determination and notice in
accordance with sections 735(d) and 777(i) of the Act.
[[Page 13334]]
Dated: March 4, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation is polyethylene
terephthalate (PET) resin having an intrinsic viscosity of at least
0.70, but not more than 0.88, deciliters per gram. The scope
includes blends of virgin PET resin and recycled PET resin
containing 50 percent or more virgin PET resin content by weight,
provided such blends meet the intrinsic viscosity requirements
above. The scope includes all PET resin meeting the above
specifications regardless of additives introduced in the
manufacturing process. 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.
Appendix II--Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Changes Since the Preliminary Determination
V. Use of Adverse Facts Available
VI. Description of the Issues
Comment 1: PTA Value
Comment 2: Brokerage and Handling Expense Source of Valuation
Comment 3: Brokerage and Handling Expense Denominator's Cargo
Load Volume
Comment 4: Brokerage and Handling Expense Letter of Credit Cost
Comment 5: Addition of Brokerage and Handling Expenses to FOP
Surrogate Values
Comment 6: Inland Freight Expense Source of Valuation
Comment 7: Inland Freight Expense Denominator's Cargo Load
Volume
Comment 8: Inland Freight Expense Denominator's Distance
Comment 9: Thai Labor Values
Comment 10: Irrecoverable VAT
Comment 11: FEIS Verification Minor Corrections
Comment 12: FEIS Chilled Water
Comment 13: FEIS Freight Distance for Factors of Production
Comment 14: FEIS International Freight Expense
Comment 15: FEIS U.S. Inland Freight Expense
Comment 16: Xingyu Indirect Labor
Comment 17: Xingyu IPA Consumption Recommendation
[FR Doc. 2016-05707 Filed 3-11-16; 8:45 am]
BILLING CODE 3510-DS-P