[Federal Register Volume 81, Number 128 (Tuesday, July 5, 2016)]
[Notices]
[Pages 43579-43582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15729]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-039]


Countervailing Duty Investigation of Certain Amorphous Silica 
Fabric From the People's Republic of China: Preliminary Determination 
and Alignment of Final Determination With Final Antidumping Duty 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain amorphous silica fabric (silica 
fabric) from the People's Republic of China (the PRC). The period of 
investigation is January 1, 2015 through December 31,

[[Page 43580]]

2015. We invite interested parties to comment on this preliminary 
determination.

DATES: Effective July 5, 2016.

FOR FURTHER INFORMATION CONTACT: Emily Maloof 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) 482-5649 
or (202) 482-7438, respectively.

SUPPLEMENTARY INFORMATION: 

Scope of the Investigation

    The merchandise covered by this investigation is silica fabric from 
the PRC. For a complete description of the scope of this investigation, 
see Appendix II.

Scope Comments

    In accordance with the preamble to the Department's regulations,\1\ 
we set aside a period of time in our Initiation Notice for parties to 
raise issues regarding product coverage, and we encouraged all parties 
to submit comments within 20 calendar days of the signature date of 
that notice.\2\
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    \1\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \2\ See Certain Amorphous Silica Fabric From the People's 
Republic of China: Initiation of Countervailing Duty Investigation, 
81 FR 8909 (February 23, 2016) (Initiation Notice).
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    We received several comments concerning the scope of the 
antidumping (AD) and countervailing duty (CVD) investigations of silica 
fabric from the PRC. We intend to issue our preliminary decision 
regarding the scope of the AD and CVD investigations in the preliminary 
determination of the companion AD investigation, which is due for 
signature on August 24, 2016. On March 13, 2016, Lewco Specialty 
Products, Inc. (Lewco) submitted a letter that was later rejected by 
the Department as it was improperly filed.\3\ We intend to issue our 
preliminary decision regarding the scope of the AD and CVD 
investigations in the preliminary determination of the companion AD 
investigation, which is due for signature on August 24, 2016.
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    \3\ See Memorandum to the File from John K. Drury, ``Request to 
Take Action on Certain Barcodes,'' dated March 18, 2016.
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Methodology

    The Department is conducting this 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 preliminarily 
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 preliminary conclusions, see the Preliminary Decision 
Memorandum.\5\ The Preliminary 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 Preliminary Decision Memorandum 
can be accessed directly at http://trade.gov/enforcement. The signed 
Preliminary Decision Memorandum and the electronic versions of the 
Preliminary Decision Memorandum are identical in content.
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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.
    \5\ See Memorandum to Paul Piquado, ``Decision Memorandum for 
the Preliminary Affirmative Determination: Countervailing Duty 
Investigation of Certain Amorphous Silica Fabric from the People's 
Republic of China,'' dated June 27, 2016 (Preliminary Decision 
Memorandum).
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    The Department notes that, in making this preliminary 
determination, we relied, in part, on facts available and, because one 
or more 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.\6\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \6\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning 
the final CVD determination in this investigation with the final 
determination in the companion AD investigation of silica fabric from 
the PRC based on a request made by Petitioner.\7\ Consequently, the 
final CVD determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
November 7, 2016, unless postponed.
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    \7\ Auburn Manufacturing, Inc. (AMI) (Petitioner); see also 
Letter from AMI, ``Re: Certain Amorphous Silica Fabric from the 
People's Republic of China: Petitioner's Request for Postponement of 
Date for Final Countervailing Duty Determinations to Align to the 
Date of the Final Antidumping Determination,'' dated June 9, 2016.
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Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated an individual rate for each exporter/producer of the subject 
merchandise individually investigated. We preliminarily determine the 
countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/producer                        (percent)
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ACIT (Pinghu) Inc. and ACIT (Shanghai) Inc..............            4.36
Nanjing Tianyuan Fiberglass Material Co. Ltd............           28.25
Acmetex Co., Ltd.,* Beijing Great Pack Materials, Co.
 Ltd.,* Beijing Landingji Engineering Tech Co., Ltd.,*
 Changshu Yaoxing Fiberglass Insulation Products Co.,
 Ltd.,* Changzhou Kingze Composite Materials Co., Ltd.,*
 Changzhou Utek Composite Co.,* Chengdu Chang Yuan Shun
 Co., Ltd.,* China Beihai Fiberglass Co., Ltd.,* China
 Yangzhou Guo Tai Fiberglass Co., Ltd.,* Chongqing
 Polycomp International Corp.,* Chongqing Yangkai Import
 & Export Trade Co., Ltd.,* Cixi Sunrise Sealing
 Material Co., Ltd.,*...................................

[[Page 43581]]

 
 Fujian Minshan Fire-Fighting Co., Ltd.,* Grand                   104.10
 Fiberglass Co., Ltd.,* Haining Jiete Fiberglass Fabric
 Co., Ltd.,* Hebei Yuniu Fiberglass Manufacturing Co.,
 Ltd.,* Hebei Yuyin Trade Co., Ltd.,* Hengshui Aohong
 International Trading Co., Ltd.,* Hitex Insulation
 (Ningbo) Co., Ltd.,* Mowco Industry Limited,* Nanjing
 Debeili New Materials Co., Ltd.,* Ningbo Fitow High
 Strength Composites Co., Ltd.,* Ningbo Universal Star
 Industry & Trade Limited,* Ningguo BST Thermal
 Protection Products Co., Ltd.,* Qingdao Feelongda
 Industry & Trade Co., Ltd.,* Qingdao Shishuo Industry
 Co., Ltd.,* Rugao City Ouhua Composite Material Co.,
 Ltd.,* Rugao Nebola Fiberglass Co., Ltd.,* Shanghai
 Bonthe Insulative Material Co., Ltd.,* Shanghai Horse
 Construction Co., Ltd.,* Shanghai Liankun Electronics
 Material Co., Ltd.,* Shanghai Suita Environmental
 Protection Technology Co., Ltd.,* Shangqui Huanyu
 Fiberglass Co., Ltd.,* Shengzhou Top-Tech New Material
 Co., Ltd.,* Shenzhen Songxin Silicone Products Co.,
 Ltd.,* Taixing Chuanda Plastic Co., Ltd.,* Taixing
 Vichen Composite Material Co., Ltd.,* TaiZhou Xinxing
 Fiberglass Products Co., Ltd.,* Tenglong Sealing
 Products Manufactory Yuyao,* Texaspro (China) Company,*
 Wallean Industries Co., Ltd.,* Wuxi First Special-Type
 Fiberglass Co., Ltd.,* Wuxi Xingxiao Hi-Tech Material
 Co., Ltd.,* Yuyao Feida Insulation Sealing Factory,*
 Yuyao Tianyi Special Carbon Fiber Co., Ltd.,* Zibo
 Irvine Trading Co., Ltd.,* Zibo Yao Xing Fire-Resistant
 and Heat-Preservation Material Co., Ltd.,* Zibo Yuntai
 Furnace Technology Co., Ltd.*..........................
All-Others..............................................            4.36
------------------------------------------------------------------------
* Non-cooperative company to which an adverse facts available rate is
  being applied. See ``Use of Facts Otherwise Available and Adverse
  Inferences,'' section in the Preliminary Decision Memorandum.

    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, we 
are directing U.S. Customs and Border Protection to suspend liquidation 
of all entries of silica fabric from the PRC that are entered, or 
withdrawn from warehouse, for consumption on or after the date of the 
publication of this notice in the Federal Register, and to require a 
cash deposit for such entries of merchandise in the amounts indicated 
above.
    Sections 703(d) and 705(c)(5)(A) of the Act state that, for 
companies not investigated, we determine an ``all-others rate,'' by 
weighting the subsidy rates of the individual company subsidy rate of 
each of the companies investigated by each company's exports of subject 
merchandise to the United States excluding rates that are zero or de 
minimis or any rates determined entirely on the facts available. 
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 the 
rate calculated for Nanjing Tianyuan was determined entirely on facts 
available. Therefore, for the ``all-others'' rate, we applied the rate 
calculated for ACIT Pinghu.

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondents prior to making our final 
determination.

Disclosure and Public Comment

    The Department will disclose calculations performed for this 
preliminary determination to the parties within five days of the date 
of public announcement of this determination in accordance with 19 CFR 
351.224(b). Case briefs or other written comments for all non-scope 
issues may be submitted to the Assistant Secretary for Enforcement and 
Compliance no later than seven days after the date on which the final 
verification report is issued in this proceeding, and rebuttal briefs, 
limited to issues raised in case briefs, may be submitted no later than 
five days after the deadline date for case briefs.\8\ A table of 
contents, list of authorities used and an executive summary of issues 
should accompany any briefs submitted to the Department. This summary 
should be limited to five pages total, including footnotes.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Interested parties who wish to request a hearing must submit a 
written request to the Assistant Secretary for Enforcement and 
Compliance, U.S. Department of Commerce, filed electronically using 
ACCESS. An electronically filed request for a hearing must be received 
successfully in its entirety by the Department's electronic records 
system, ACCESS, by 5:00 p.m. Eastern Time, within 30 days after the 
date of publication of this notice.\9\ Requests should contain the 
party's name, address, and telephone number; the number of 
participants; and a list of the issues to be discussed. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW, Washington, DC 20230, at a date and time to be determined. Parties 
will be notified of the date and time of any hearing. The hearing will 
be limited to issues raised in the respective briefs.\10\
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    \9\ See 19 CFR 351.310(c).
    \10\ Id.
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (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.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: June 27, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
    A. Initiation and Case History
    B. Postponement of Preliminary Determination
    C. Period of Investigation
III. Alignment
IV. Scope Comments
V. Scope of the Investigation
VI. Injury Test
VII. Application of the CVD Law to Imports From the PRC
VIII. Subsidies Valuation
    A. Allocation Period
    B. Attribution of Subsidies
    C. Denominators
IX. Benchmarks and Interest Rates
    A. Renminbi-Denominated Loans
    B. Discount Rates
X. Use of Facts Otherwise Available and

[[Page 43582]]

Adverse Inferences
    A. Application of AFA: Non-Responsive Companies to the Q&V 
Questionnaire
    B. Application of AFA: Nanjing Tianyuan
    C. Application of AFA: Provision of Electricity for LTAR
    D. Application of AFA: Policy Loans to the Silica Fabric 
Industry
    E. Application of AFA: Provision of ``Other Subsidies'' as 
Specific
XI. Analysis of Programs
    A. Programs Preliminarily Determined To Be Countervailable
    1. Policy Loans to the Silica Fabric Industry
    2. Provision of Electricity for LTAR
    B. Programs Preliminary Determined Not To Be Used During the POI
    1. Preferential Export Financing
    2. Preferential Loans to SOEs
    3. Export Seller's Credits
    4. Export Buyer's Credits
    5. Export Credit Insurance
    6. Provision of Land for LTAR in SEZs
    7. Provision of Fiberglass Yarn for LTAR
    8. Provision of Services at LTAR Through Demonstration Bases and 
Common Service Platform Programs
    9. Income Tax Reduction for HNTEs
    10. Income Tax Reduction for R&D Under the EITL
    11. Income Tax Reduction/Exemption for HNTEs for Geographic 
Location
    12. Import Tariff and VAT Exemptions on Imported Equipment in 
Encouraged Industries
    13. City Construction Tax and Education Fees Exemptions for FIEs
    14. Other VAT Subsidies
    15. GOC and Sub-Central Government Subsidies for Development of 
Famous Brands and China World Top Brands
    16. International Market Exploration Fund (SME Fund)
    17. Science and Technology Awards
XII. ITC Notification
XIII. Disclosure and Public Comment
XIV. Verification
XV. Conclusion

Appendix II

Scope of the Investigation

    The product covered by this investigation is woven (whether from 
yarns or rovings) industrial grade amorphous silica fabric, which 
contains a minimum of 90 percent silica (SiO2) by nominal 
weight, and a nominal width in excess of 8 inches. The investigation 
covers industrial grade amorphous silica fabric regardless of other 
materials contained in the fabric, regardless of whether in roll 
form or cut-to-length, regardless of weight, width (except as noted 
above), or length. The investigation covers industrial grade 
amorphous silica fabric regardless of whether the product is 
approved by a standards testing body (such as being Factory Mutual 
(FM) Approved), or regardless of whether it meets any governmental 
specification.
    Industrial grade amorphous silica fabric may be produced in 
various colors. The investigation covers industrial grade amorphous 
silica fabric regardless of whether the fabric is colored. 
Industrial grade amorphous silica fabric may be coated or treated 
with materials that include, but are not limited to, oils, 
vermiculite, acrylic latex compound, silicone, aluminized polyester 
(Mylar[supreg]) film, pressure-sensitive adhesive, or other coatings 
and treatments. The investigation covers industrial grade amorphous 
silica fabric regardless of whether the fabric is coated or treated, 
and regardless of coating or treatment weight as a percentage of 
total product weight. Industrial grade amorphous silica fabric may 
be heat-cleaned. The investigation covers industrial grade amorphous 
silica fabric regardless of whether the fabric is heat-cleaned.
    Industrial grade amorphous silica fabric may be imported in 
rolls or may be cut-to-length and then further fabricated to make 
welding curtains, welding blankets, welding pads, fire blankets, 
fire pads, or fire screens. Regardless of the name, all industrial 
grade amorphous silica fabric that has been further cut-to-length or 
cut-to-width or further finished by finishing the edges and/or 
adding grommets, is included within the scope of this investigation.
    Subject merchandise also includes (1) any industrial grade 
amorphous silica fabric that has been converted into industrial 
grade amorphous silica fabric in China from fiberglass cloth 
produced in a third country; and (2) any industrial grade amorphous 
silica fabric that has been further processed in a third country 
prior to export to the United States, including but not limited to 
treating, coating, slitting, cutting to length, cutting to width, 
finishing the edges, adding grommets, or any other processing that 
would not otherwise remove the merchandise from the scope of the 
investigation if performed in the country of manufacture of the in-
scope industrial grade amorphous silica fabric.
    Excluded from the scope of the investigation is amorphous silica 
fabric that is subjected to controlled shrinkage, which is also 
called ``pre-shrunk'' or ``aerospace grade'' amorphous silica 
fabric. In order to be excluded as a pre-shrunk or aerospace grade 
amorphous silica fabric, the amorphous silica fabric must meet the 
following exclusion criteria: (1) The amorphous silica fabric must 
contain a minimum of 98 percent silica (SiO2) by nominal 
weight; (2) the amorphous silica fabric must have an areal shrinkage 
of 4 percent or less; (3) the amorphous silica fabric must contain 
no coatings or treatments; and (4) the amorphous silica fabric must 
be white in color. For purposes of this scope, ``areal shrinkage'' 
refers to the extent to which a specimen of amorphous silica fabric 
shrinks while subjected to heating at 1800 degrees F for 30 minutes.
[GRAPHIC] [TIFF OMITTED] TN05JY16.010

    Also excluded from the scope are amorphous silica fabric rope 
and tubing (or sleeving). Amorphous silica fabric rope is a knitted 
or braided product made from amorphous silica yarns. Silica tubing 
(or sleeving) is braided into a hollow sleeve from amorphous silica 
yarns.
    The subject imports are normally classified in subheadings 
7019.59.4021, 7019.59.4096, 7019.59.9021, and 7019.59.9096 of the 
Harmonized Tariff Schedule of the United States (HTSUS), but may 
also enter under HTSUS subheadings 7019.40.4030, 7019.40.4060, 
7019.40.9030, 7019.40.9060, 7019.51.9010, 7019.51.9090, 
7019.52.9010, 7019.52.9021, 7019.52.9096 and 7019.90.1000. HTSUS 
subheadings are provided for convenience and customs purposes only; 
the written description of the scope of this investigation is 
dispositive.

[FR Doc. 2016-15729 Filed 7-1-16; 8:45 am]
 BILLING CODE 3510-DS-P