[Federal Register Volume 81, Number 49 (Monday, March 14, 2016)]
[Notices]
[Pages 13321-13322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05713]



[[Page 13321]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-523-811]


Certain Polyethylene Terephthalate Resin From the Sultanate of 
Oman: Final Negative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Department) determines that 
countervailable subsidies are not being provided to producers and 
exporters of certain polyethylene terephthalate resin (PET resin) from 
the Sultanate of Oman (Oman). Specifically, the Department determines 
that the subsidy programs reviewed in this investigation do not yield 
an aggregate net countervailable subsidy rate above a de minimis level 
(i.e., one percent ad valorem). The period of investigation is January 
1, 2014 through December 31, 2014.

DATES: Effective Date: March 14, 2016.

FOR FURTHER INFORMATION CONTACT: Thomas Martin, Office IV, AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3936.

SUPPLEMENTARY INFORMATION: 

Background

    Petitioners in this investigation are DAK Americas, LLC, M&G 
Chemicals, and Nan Ya Plastics Corporation, America, (collectively, 
Petitioners). In addition to the Government of the Sultanate of Oman 
(GSO), the mandatory respondent in this investigation is OCTAL SAOC-FZC 
and OCTAL Holding SAOC (collectively, OCTAL).
    The events that have occurred since the Department published the 
Preliminary Determination \1\ on August 14, 2015 are discussed in the 
Issues and Decision Memorandum, which is hereby incorporated in this 
notice.\2\ This memorandum also details the changes we made since the 
Preliminary Determination to the subsidy rates calculated for the 
mandatory respondent. 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://enforcement.trade.gov/frn/index.html. The signed Issues and Decision Memorandum and the 
electronic version of the Issues and Decision Memorandum are identical 
in content.
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    \1\ See Certain Polyethylene Terephthalate Resin From the 
Sultanate of Oman: Preliminary Negative Countervailing Duty 
Determination and Alignment of Final Countervailing Duty 
Determination With Final Antidumping Duty Determination, 80 FR 48808 
(August 14, 2015) (Preliminary Determination).
    \2\ See Memorandum to Paul Piquado, ``Countervailing Duty 
Investigation of Certain Polyethylene Terephthalate resin from the 
Sultanate of Oman: Issues and Decision Memorandum for the Final 
Negative Determination'' (March 4, 2015) (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.\3\
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    \3\ 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 I.

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, dated concurrently 
with this notice. A list of the issues that parties raised, and to 
which we responded in the Issues and Decision Memorandum, is attached 
to this notice as Appendix II.

Final Determination

    We determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                  Company                           Subsidy rate
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OCTAL SAOC--FZC and OCTAL Holding SAOC....  0.59 percent (de minimis).4
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    \4\ In accordance with section 703(b)(4) of the Act, we are 
disregarding de minimis subsidies for the purposes of this final 
determination.
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    Because the total estimated net countervailable subsidy rate for 
the examined company is de minimis, we determine that countervailable 
subsidies are not being provided to producers or exporters of PET resin 
from Oman. We did not calculate an all-others rate pursuant to sections 
705(c)(1)(B) and (c)(5) of the Tariff Act of 1930, as amended (the Act) 
because we did not reach an affirmative final determination. Because 
our final determination is negative, this proceeding is terminated in 
accordance with section 705(c)(2) of the Act.
    In the Preliminary Determination, the total net countervailable 
subsidy rate for the individually examined respondent was de minimis 
and, therefore, we did not suspend liquidation of entries of PET resin 
from Oman. Because the estimated subsidy rates for the examined company 
is de minimis in this final determination, we are not directing U.S. 
Customs and Border Protection to suspend liquidation of entries of PET 
resin from Oman.

International Trade Commission (ITC) Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final determination. Because our final determination is 
negative, this investigation is terminated.

Return or Destruction of Proprietary Information

    This notice serves as the only reminder to parties subject to the 
administrative protective order (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 which is 
subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.


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     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

List of Topics Discussed in the Issues and Decision Memorandum

Tariff Liability Issues

Comment 1: Whether the Absence of Duty Liability Based on OCTAL's 
Location in the SFZ Is a Countervailable Subsidy
Comment 2: Whether Petitioners' Subsidy Allegations Regarding 
OCTAL's Tariff Exemptions Were Properly Alleged

Provision of Land for Less Than Adequate Remuneration (LTAR) Issues

Comment 3: Whether the Department Should Recalculate the Land for 
LTAR Rate With a Revised Benchmark
Comment 4: Whether the Provision of Land for LTAR to OCTAL Is an 
Export Subsidy
Comment 5: Whether The Department Should Recalculate the Land for 
LTAR Rate To Adjust for OCTAL's Expenses To Develop the Land

Provision of Infrastructure for LTAR Issues

Comment 6: Whether the Department Should Continue To Find That OCTAL 
Benefited From GSO Non-General Infrastructure Funding in The Salalah 
Free Zone (SFZ)
Comment 7: Whether GSO Non-General Infrastructure Funding in the SFZ 
Is an Export Subsidy
Comment 8: Whether the Department Miscalculated the GSO Non-General 
Infrastructure Funding Subsidy

Provision of Electricity for LTAR Issues

Comment 9: Whether the Department Should Revise Its Electricity for 
LTAR Benchmark
Comment 10: Whether the Provision of Electricity for LTAR Is 
Specific

Miscellaneous Issues

Comment 11: Whether the Department Should Countervail OCTAL's Lease 
With Salalah Port Services Company SAOG (SPSC)
Comment 12: Whether The Department Should Have Investigated Other 
Potential Countervailable Subsidies

[FR Doc. 2016-05713 Filed 3-11-16; 8:45 am]
 BILLING CODE 3510-DS-P