[Federal Register Volume 81, Number 49 (Monday, March 14, 2016)]
[Notices]
[Pages 13334-13336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05712]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-862]


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

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain polyethylene terephthalate (PET) resin from India as 
provided in section 705 of the Tariff Act of 1930, as amended (the 
Act). For information on the estimated subsidy rates, see the ``Final 
Determination'' section of this notice. The period of investigation is 
January 1, 2014, through December 31, 2014.

DATES: Effective Date: March 14, 2016.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas or John Corrigan, 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) 482-7438, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on August 
14, 2015,\1\ and placed the Post-Preliminary Memorandum on the record 
of this investigation on November 13, 2015.\2\ A summary of the events 
that occurred since the post-preliminary determination, as well as a 
full discussion of the issues raised by parties for this final 
determination, may be found in the Issues and Decision Memorandum.\3\ 
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 
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 Issues and Decision Memorandum can be accessed directly 
at http://trade.gov/enforcement. The signed Issues and Decision 
Memorandum and the electronic versions of the Issues and Decision 
Memorandum are identical in content.
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    \1\ See 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, 80 FR 48819 (August 14, 2015) 
(Preliminary Determination).
    \2\ See Memorandum to Paul Piquado, Assistant Secretary for 
Enforcement and Compliance, ``RE: Countervailing Duty (CVD) 
Investigation on Certain Polyethylene Terephthalate Resin from 
India--New Subsidy Allegations,'' dated November 13, 2015 (Post-
Preliminary Memorandum).
    \3\ 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 Affirmative 
Determination in the Countervailing Duty Investigation of Certain 
Polyethylene Terephthalate Resin from India,'' 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 and Compliance, the Department has exercised its 
discretion to toll all administrative deadlines due to the recent 
closure of the Federal Government. All deadlines in this segment of the 
proceeding have been extended by four business days. The revised 
deadline for the final determination is now March 4, 2016.\4\
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    \4\ See Memorandum to the Record from Ron Lorentzen, Acting 
Assistant Secretary for Enforcement & Compliance, regarding 
``Tolling of Administrative Deadlines As a Result of the Government 
Closure During Snowstorm Jonas,'' dated January 27, 2016.
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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. For a complete 
description of the scope of this investigation, see Appendix II.
    The Department did not receive comments regarding the scope of this 
investigation.

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 determine that there is a subsidy, i.e., a 
financial contribution by an ``authority'' that

[[Page 13335]]

gives rise to a benefit to the recipient, and that the subsidy is 
specific.\5\ For a full description of the methodology underlying our 
conclusions, see the Issues and Decision Memorandum.\6\
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    \5\ 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.
    \6\ See Issues and Decision Memorandum.
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised, and to which we responded in the Issues and 
Decision Memorandum, is attached to this notice at Appendix I.

Use of Adverse Facts Available

    In making this final determination, the Department relied, in part, 
on facts available and, because JBF Industries Limited and the 
Government of India did not act to the best of their 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.\7\ For further information, see the section ``Use of Facts 
Otherwise Available and Adverse Inferences'' in the accompanying Issues 
and Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties and minor corrections presented at verification, we made 
certain changes to the respondents' subsidy rate calculations since the 
Preliminary Determination and post-preliminary determination. For a 
discussion of these changes, see the Issues and Decision Memorandum.

Final Affirmative Determination of Critical Circumstances, in Part

    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.\8\ We preliminarily determined that 
critical circumstances did not exist for Dhunseri Petrochem Ltd., but 
did exist for JBF Industries Limited and the all-others companies. That 
determination remains unchanged and a discussion of our final critical 
circumstances determination can be found in the Issues and Decision 
Memorandum at the section, ``Final Determination of Critical 
Circumstances, In Part.''
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    \8\ See Letter from Petitioners dated July 16, 2015.
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Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for Dhunseri, the only individually investigated 
exporter/producer of the subject merchandise that participated in this 
investigation. In accordance with sections 705(c)(1)(B)(i)(I) and 
705(c)(5)(A) of the Act, for companies not individually investigated, 
we apply an ``all-others'' rate, which is normally calculated by 
weighting the subsidy rates of the individual companies selected as 
respondents with those companies' export sales of the subject 
merchandise to the United States. Under section 705(c)(5)(A)(i) of the 
Act, the all-others rate should exclude zero and de minimis rates 
calculated for the exporters and producers individually investigated, 
and any rates determined entirely under section 776 of the Act. In this 
investigation, the only rate that is not zero or de minimis, or based 
entirely on facts available, is the rate calculated for Dhunseri. 
Consequently, the rate calculated for Dhunseri is also assigned as the 
``all-others'' rate.

------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/producer                        (percent)
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Dhunseri Petrochem Ltd (formerly Dhunseri Petrochem and             5.12
 Tea Ltd) (collectively, Dhunseri)......................
JBF Industries Limited..................................          153.80
All-Others..............................................            5.12
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Continuation of Suspension of Liquidation

    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 entries of merchandise under 
consideration from India that were entered or withdrawn from warehouse, 
for consumption, on or after May 16, 2015 (for those entities for which 
we found critical circumstances exist) or on or after August 14, 2015, 
the date of publication of the Preliminary Determination in the Federal 
Register (for all entities for which we did not find critical 
circumstances exist). 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 December 12, 2015, but to continue the 
suspension of liquidation of all entries from May 16, 2015, or August 
14, 2015, as the case may be, through December 11, 2015.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
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 
subject 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.

International Trade Commission 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 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.

Notification Regarding Administrative Protective Orders

    In the event 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 disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or 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 subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

     Dated: March 4, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
    A. Case History
    B. Period of Investigation

[[Page 13336]]

III. Final Determination of Critical Circumstances, in Part
IV. Scope of the Investigation
V. List of Issues
VI. 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
VII. Use of Facts Otherwise Available and Adverse Inferences
    JBF Industries Limited (JBF)
    Government of India (GOI)
    Selection of the Adverse Facts Available Rate
    Corroboration of Secondary Information
VIII. 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. 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
    1. Pre- and Post-Shipment Export Financing
    2. Duty Free Import Authorization Scheme
    3. State Government of Gujarat's Provision of Land for Less Than 
Adequate Remuneration
    4. Financial Assistance to Industrial Parks
    5. Income Tax Exemption Scheme (ITES)

Government of India Programs

    a. Status Holder Incentive Scrip
    b. Advance Licenses Program
    c. Focus Market Scheme
    d. Special Economic Zones (SEZ) (6 Programs)
    e. 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

    a. State and Union Territory Sales Tax Incentive Programs
    b. Maharashtra Market Development Assistance Program
    c. Maharashtra Industrial Promotion Subsidy
    d. Maharashtra Electricity Duty Exemption
    e. Maharashtra Waiver of Stamp Duty
    f. State Government of Maharashtra--Incentives to Strengthening 
Micro-, Small-, and Medium-Sized and Large Scale Industries
    g. State Government of Gujarat--Industrial Policy 2009 Scheme
    C. Final AFA Rates for Programs Determined Used by JBF
IX. Calculation of the All-Others Rate
X. Analysis of Comments
XI. Recommendation

Appendix II

    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.

[FR Doc. 2016-05712 Filed 3-11-16; 8:45 am]
BILLING CODE 3510-DS-P