[Federal Register Volume 81, Number 170 (Thursday, September 1, 2016)]
[Notices]
[Pages 60341-60343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21095]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-038]


Antidumping Duty Investigation of Certain Amorphous Silica Fabric 
From the People's Republic of China: Affirmative Preliminary 
Determination of Sales at Less-Than-Fair Value, Preliminary Affirmative 
Determination of Critical Circumstances, and Postponement of Final 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that certain amorphous silica fabric (silica fabric) from 
the People's Republic of China (the PRC) is being, or is likely to be, 
sold in the United States at less-than-fair value (LTFV). The period of 
investigation is July 1, 2015, through December 31, 2015. The estimated 
weighted-average dumping margins are shown in the ``Preliminary 
Determination'' section of this notice. We invite interested parties to 
comment on this preliminary determination.

DATES: Effective September 1, 2016.

FOR FURTHER INFORMATION CONTACT: Scott Hoefke or Fred Baker, 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) 482-4947 
and (202) 482-2924, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the notice of initiation of this LTFV 
investigation on February 23, 2016.\1\ For a complete description of 
the events that followed the initiation of this investigation, see the 
Preliminary Decision Memorandum that is dated concurrently with this 
determination and is hereby adopted by this notice.\2\ A list of topics 
included in the Preliminary Decision Memorandum is included as Appendix 
I to this notice. 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 https://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 Preliminary Decision Memorandum can be found at 
http://enforcement.trade.gov/frn/. The signed Preliminary Decision 
Memorandum and electronic version of Preliminary Decision Memorandum 
are identical in content.
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    \1\ See Certain Amorphous Silica Fabric From the People's 
Republic of China: Initiation of Less-Than-Fair-Value Investigation, 
81 FR 8913 (February 23, 2016) (Initiation Notice).
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance 
``Decision Memorandum for the Preliminary Determination in the 
Antidumping Duty Investigation of Certain Amorphous Silica Fabric 
From the People's Republic of China,'' (Preliminary Decision 
Memorandum) dated concurrently with this notice.
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Scope of the Investigation

    The product 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,\3\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., ``scope'').\4\ We received 
comments from one interested party on March 13, 2016. However, since 
these comments were untimely filed, we rejected them from the record. 
We received no other comments on scope since publication of the 
Initiation Notice, other than rebuttal comments filed by petitioner on 
March 17, 2016, with respect to the untimely filed March 7, 2016, 
comments. The Department is preliminarily not modifying the scope 
language as it appeared in the Initiation Notice.
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    \3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \4\ See Initiation Notice, 81 FR at 8913.
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Methodology

    The Department conducted this investigation in accordance with 
section 731 of the Tariff Act of 1930, as amended (the Act). We 
calculated constructed export prices in accordance with section 772 of 
the Act. Because the PRC is a non-market economy within the meaning of 
section 771(18) of the Act, we calculated normal value (NV) in 
accordance with section 773(c) of the Act. For a full description of 
the methodology underlying our conclusions, see the Preliminary 
Decision Memorandum.

Affirmative Preliminary Determination of Critical Circumstances

    On July 13, 2016, Petitioner filed a timely critical circumstances 
allegation, pursuant to section 733(e)(1) of the Act and 19 CFR 
351.206, alleging that critical circumstances exist with respect to 
imports of silica fabric from the PRC.\5\ We preliminarily determine 
that critical circumstances exist for ACIT (Pinghu) Inc. (ACIT), 
Nanjing Tianyuan Fiberglass Material Co., Ltd. (Nanjing Tianyuan), and 
the PRC-wide entity. For a full description of the methodology and 
results of our analysis, please see the Preliminary Decision 
Memorandum.
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    \5\ See Letter from Auburn Manufacturing, Inc. (Petitioner), 
dated July 13, 2016.
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Combination Rates

    In the Initiation Notice, the Department stated that it would 
calculate combination rates for the respondents that are eligible for a 
separate rate in this investigation.\6\ Policy Bulletin 05.1 describes 
this practice.\7\
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    \6\ See Initiation Notice, 81 FR at 8917.
    \7\ 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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Preliminary Determination

    The preliminary weighted-average antidumping margins are as 
follows:

[[Page 60342]]



------------------------------------------------------------------------
                                                             Weighted-
            Exporter                     Producer         average margin
                                                                (%)
------------------------------------------------------------------------
ACIT (Pinghu) Inc..............  ACIT (Pinghu) Inc......          162.47
Nanjing Tianyuan Fiberglass      Nanjing Tianyuan                 162.47
 Material Co., Ltd.               Fiberglass Material
                                  Co., Ltd.
------------------------------------------------------------------------
                      PRC-Wide Rate                               162.47
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we will direct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of silica fabric from the PRC as described in the scope of the 
investigation section entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of investigation was published. As described above, we 
preliminarily find that critical circumstances exist for imports 
produced or exported by all exporters of subject merchandise from the 
PRC. Therefore, in accordance with section 733(e)(2)(A) of the Act, the 
suspension of liquidation shall apply to unliquidated entries of 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the date which is 90 days before the publication of this notice. 
Accordingly, for ACIT, Nanjing Tianyuan, and the PRC-wide entity, in 
accordance with section 733(e)(2)(A) of the Act, the suspension of 
liquidation shall apply to unliquidated entries of merchandise entered, 
or withdrawn from warehouse, for consumption on or after the date which 
is 90 days before the publication of this notice. We will also instruct 
CBP, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), 
to require a cash deposit equal to the margins indicated in the chart 
above.\8\ As described in the Preliminary Decision Memorandum, in this 
preliminary determination, no adjustments pursuant to section 777A(f) 
and 772(c)(1)(C) of the Act are being made for cash deposit purposes. 
The suspension of liquidation will remain in effect until further 
notice.
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    \8\ 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).
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Disclosure and Public Comment

    We will disclose to interested parties the calculations performed 
in this proceeding within five days of the date of announcement of this 
preliminary determination in accordance with 19 CFR 351.224(b). Case 
briefs or other written comments may be submitted to the Assistant 
Secretary for Enforcement and Compliance no later than seven days after 
the date on which the last verification report is issued in this 
proceeding.\9\ Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\10\
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    \9\ See 19 CFR 351.309(b)(2)(c)(i).
    \10\ See 19 CFR 351.309, see also 19 CFR 351.303 (for general 
filing requirements).
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    Parties who submit case briefs or rebuttal briefs in this 
proceeding are encouraged to submit with each argument: (1) A statement 
of the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.\11\ This summary should be limited to five pages total, 
including footnotes.
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    \11\ See 19 CFR 351.309(c)(2) and (d)(2).
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    Interested parties who wish to request a hearing must do so in 
writing within 30 days after the publication of this preliminary 
determination in the Federal Register.\12\ 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, time, and location to be 
determined. Parties will be notified of the date, time, and location of 
any hearing.
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    \12\ See 19 CFR 351.310(c).
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    Parties must file their case and rebuttal briefs, and any requests 
for a hearing, electronically using ACCESS.\13\ Electronically-filed 
documents must be received successfully in their entirety by 5:00 p.m. 
Eastern Time on the due dates established above.\14\
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    \13\ See 19 CFR 351.303(b)(2)(i).
    \14\ See 19 CFR 351.303(b)(1).
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Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination by the Department, a request for 
such postponement is made by exporters who account for a significant 
proportion of exports of the subject merchandise, or in the event of a 
negative preliminary determination by the Department, a request for 
such postponement is made by the petitioner. 19 CFR 351.210(e)(2) 
requires that requests by respondents for postponement of a final 
antidumping determination be accompanied by a request for extension of 
provisional measures from a four-month period to a period not more than 
six months in duration.
    On August 8, 2016, pursuant to 19 CFR 351.210(b)(2)(ii), Petitioner 
and ACIT requested that the Department postpone its final 
determination. On August 9, 2016, Nanjing Tianyuan also requested that 
the Department postpone its final determination. In their respective 
requests for postponement, ACIT and Nanjing Tianyuan also requested 
that the Department extend the application of the provisional measures 
prescribed under section 733(d) of the Act and 19 CFR 351.210(e)(2), 
from a four-month period to a period not to exceed six months.
    In accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii) and (e)(2), because (1) our preliminary determination 
is affirmative; (2) the requesting exporters account for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, we are postponing the final determination and 
extending the provisional measures from a four-month period to a period 
not greater than six months. Accordingly, we will make our final 
determination no later than 135 days after the date of publication of 
this preliminary determination, pursuant to section 735(a)(2) of the 
Act.\15\
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    \15\ See 19 CFR 351.210(e).

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[[Page 60343]]

International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, we will notify the 
International Trade Commission (ITC) of our preliminary determination 
of sales at LTFV. If our final determination is affirmative, the ITC 
will determine before the later of 120 days after the date of this 
preliminary determination or 45 days after our final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(I) of the Act and 19 CFR 351.205(c).

    Dated: August 24, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Preliminary Determination of Critical Circumstances
V. Scope of the Investigation
VI. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Surrogate Country and Surrogate Value Comments
    C. Separate Rates
    D. The PRC-wide Entity
    E. Application of Facts Available and Adverse Inferences
    F. Date of Sale
    G. Comparisons to Fair Value
VII. Currency Conversion
VIII. Adjustment Under Section 777A(F) of the Act
IX. Adjustment for Countervailable Subsidies
X. Disclosure and Public Comment
XI. Verification
XII. 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: (l) 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.\16\
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    \16\ Areal shrinkage is expressed as the following percentage: 
((Fired Area, em2-Initial Area, cm2)/Initial Area, cm2) x 100 = 
Areal Shrinkage, %.
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    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. 2016-21095 Filed 8-31-16; 8:45 am]
BILLING CODE 3510-DS-P