[Federal Register Volume 81, Number 49 (Monday, March 14, 2016)]
[Notices]
[Pages 13337-13340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05715]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-025]


Countervailing Duty Investigation of Certain Polyethylene 
Terephthalate Resin From the People's Republic of China: Final 
Affirmative Determination

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 the People's 
Republic of China (PRC) 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 Emily Maloof, 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) 482-5649, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on August 
14, 2015.\1\ A summary of the events that

[[Page 13338]]

occurred since the Department submitted the 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.\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 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 the People's Republic of 
China: Preliminary Affirmative Determination and Alignment of Final 
Determination With Final Antidumping Duty Determination, 80 FR 48819 
(August 14, 2015) (``Preliminary Determination'').
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Countervailing Duty Investigation of Certain Polyethylene 
Terephthalate Resin from the People's Republic of China: Issues & 
Decision Memorandum for the Final Determination,'' 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.\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 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 gives rise to a benefit 
to the recipient, and that the subsidy is specific.\4\ For a full 
description of the methodology underlying our conclusions, see the 
Issues and Decision Memorandum.
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    \4\ 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.
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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 Facts Available, Including Adverse Inferences

    The Department notes that, in making this final determination, we 
relied, in part, on facts available and, because two respondents 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 with 
respect to those respondents.\5\ 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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    \5\ 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. For a discussion of these changes, see the 
Issues and Decision Memorandum.

Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for Jiangyin Xingyu New Material Co., Ltd. (Xingyu) 
and Dragon Special Resin (Xiamen) Co., Ltd. (Dragon), the two 
individually investigated exporters/producers 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 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 subsidy rates, and any rates 
determined entirely under section 776 of the Act. Notwithstanding the 
language of section 705(c)(5)(A)(i) of the Act, we have not calculated 
the ``all-others'' rate by weight-averaging the rates of the two 
individually investigated respondents, because doing so risks 
disclosure of proprietary information. Instead, we have calculated the 
all-others rate using a simple average of the final rates for the two 
mandatory company respondents. We intend to disclose to parties the 
calculations performed in this proceeding within five days of the 
public announcement of this final determination in accordance with 19 
CFR 351.224(b).

------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/producer                        (percent)
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Jiangyin Xingyu New Material Co., Ltd., Jiangsu Xingye              6.83
 Plastic Co., Ltd., Jiangyin Xingjia Plastic Co., Ltd.,
 Jiangyin Xingtai New Material Co., Ltd., Jiangsu Xingye
 Polarization Co., Ltd., Jiangsu Sanfangxiang Group Co.,
 Ltd., Jiangyin Hailun Petrochemicals Co., Ltd.,
 Jiangyin Xinlun Chemical Fiber Co., Ltd., Jiangyin
 Huasheng Polymer Co., Ltd., Jiangsu SanFangxiang
 International Trading Co., Ltd., Jiangyin HuaYi
 Polymerization Co., Ltd., Jiangyin Xingsheng Plastic
 Co., Ltd., Jiangyin Chemical Fiber Co., Ltd., Jiangyin
 Huaxing Synthetic Co., Ltd., Jiangyin Bolun Chemical
 Fiber Co., Ltd., (collectively, Xingyu)................

[[Page 13339]]

 
Dragon Special Resin (Xiamen) Co., Ltd.; Xiang Lu                  47.56
 Petrochemicals Co., Ltd.; Xianglu Petrochemicals
 (Zhangzhou) Co., Ltd.; Xiamen Xianglu Chemical Fiber
 Company Limited; and Dragon Aromatics (Zhangzhou) Co.,
 Ltd. (collectively, Dragon Group)......................
All-Others..............................................           27.20
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Continuation of Suspension of Liquidation

    As a result of our affirmative 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 the PRC that were entered or 
withdrawn from warehouse, for consumption, on or after August 14, 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 December 12, 2015, but to continue the 
suspension of liquidation of all entries from August 14, 2015 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

    This notice serves 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
III. Scope of the Investigation
IV. Application of the Countervailing Duty Law to Imports From the 
PRC
V. List of Issues
VI. Subsidies Valuation
    A. Allocation Period
    B. Attribution of Subsidies
    C. Denominators
VII. Benchmarks and Discount Rates
    A. Short-Term RMB-Denominated Loans
    B. Long-Term RMB-Denominated Loans
    C. Foreign Currency-Denominated Loans
    D. Discount Rates
    E. MEG and PTA Benchmarks
    F. Provision of Electricity for LTAR
VIII. Use of Facts Otherwise Available and Adverse Inferences
    Application of Facts Available
    Application of Adverse Facts Available
    Selection of the Adverse Facts Available Rate
    Corroboration of Secondary Information
IX. Analysis of Programs
    A. Programs Preliminarily Determined To Be Countervailable
    1. Policy Loans to the PET Resin Industry
    2. Preferential Export Financing
    3. Export Seller's Credits
    4. Import Tariff and Value-Added (VAT) Exemptions on Imported 
Equipment in Encouraged Industries
    5. Provision of Imports for LTAR
    1. Provision of MEG and PTA for LTAR
    2. Provision of Electricity for LTAR
    6. Energy Savings Technology Reform
    7. VAT Refunds for FIEs Purchasing Domestically-Produced 
Equipment ``Other Subsidies'' Reported in Initial Questionnaire 
Response
    8. 2013 Annual Incentive Funds Stable Foreign Trade Policy
    9. Export Credit Insurance
    10. Import/Export Credit Insurance/2013 Foreign Trade Policy 
Award
    11. Transition Gold Support
    12. Overseas Investment Discount (Jiangsu Province DOC)
    13. Energy Saving
    14. Technology Reform Interest Subsidy
    15. 2012 and 2013 Refund of Land Use Tax
    16. Income Tax Deduction for New High-Technology Enterprise 
(HNTE)
    17. Project Subsidy From Haicang Bureau of Science and 
Technology ``Other Subsidies'' Reported by Dragon Group
    1. Other Subsidy: Bounty for Enterprise With Production and 
Sales Growth
    2. Other Subsidy: 2013 Enterprise Financing Subsidy
    B. Programs Preliminary Determined Not To Be Used
    18. International Market Exploration Fund (SME Fund)
    19. City Construction Tax and Education Fees Exemptions for FIEs
    20. Xiamen Municipality Support for Pivotal Manufacturing 
Industries
    21. Xinghuo Development Zone Recycling Economic Construction 
Specialized Fund
    22. Science & Technology Awards
    23. Yangpu Economic Development Zone Preferential Tax Policies
    24. Xinghuo Development Zone Industrial Structural Adjustment 
Fund
    25. VAT Subsidies for FIEs
    26. Provision of Land for LTAR to Enterprises in Xinghuo 
Development Zone, Fengxian District, Shanghai Municipality
    27. Provision of Land for LTAR to Enterprises in Yangpu Economic 
Development Zone, Hainan Province
    28. Allowance for Increased Export
    C. Programs With No Benefit in the POI
    29. GOC and Sub-Central Government Subsidies for the Development 
of Famous Brands and China World Top Brands
    30. Income Tax Deductions for Research and Development Expenses 
Under the Enterprise Income Tax Law
    D. Final AFA Rates Determined for Programs Used by Xingyu
    E. Final AFA Rates Determined for Programs Used by Dragon Group
X. Calculation of the All-Others Rate
XI. Analysis of Comments
XII. 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

[[Page 13340]]

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. 2016-05715 Filed 3-11-16; 8:45 am]
 BILLING CODE 3510-DS-P