[Federal Register Volume 81, Number 214 (Friday, November 4, 2016)]
[Notices]
[Pages 76916-76918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26755]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-045]


1-Hydroxyethylidene-1, 1-Diphosphonic Acid From the People's 
Republic of China: Affirmative Preliminary Determination of Sales at 
Less Than Fair Value, and Postponement of Final Determination

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

SUMMARY: The Department of Commerce (``Department'') preliminarily 
determines that 1-Hydroxyethylidene-1, 1-Diphosphonic Acid (``HEDP'') 
from the People's Republic of China (``PRC'') is being, or is likely to 
be, sold in the United States at less than fair value (``LTFV''), as 
provided in section 733 of the Tariff Act of 1930, as amended (``the 
Act''). The period of investigation (``POI'') is July 1, 2015 through 
December 31, 2015. The estimated weighted-average dumping margins are 
shown in the ``Preliminary Determination'' section of this notice. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Effective November 4, 2016.

FOR FURTHER INFORMATION CONTACT: Omar Qureshi or Kenneth Hawkins, AD/
CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-5307 or (202) 
482-6491, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the notice of initiation of this 
investigation on April 28, 2016.\1\ For a complete description of the 
events that followed the initiation of this investigation, see the 
Preliminary Decision Memorandum, which is dated concurrently with and 
hereby adopted by this notice.\2\ A list of topics included in the 
Preliminary Decision Memorandum is included as Appendix II 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 the electronic version of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See 1-Hydroxyethylidene-1, 1-Diphosphonic Acid from People's 
Republic of China: Initiation of Less-Than-Fair-Value Investigation, 
81 FR 25377 (April 28, 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 1-Hydroxyethylidene-1, 1-
Diphosphonic Acid from People's Republic of China,'' dated 
concurrently with and hereby adopted by this notice (``Preliminary 
Decision Memorandum'').
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Scope of the Investigation

    The product covered by this investigation is HEDP from the PRC. For 
a full description of the scope of this investigation, see the ``Scope 
of the Investigation,'' in Appendix I.

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\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Decision Memorandum.\5\
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    \3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \4\ See Initiation Notice, 81 FR 25377.
    \5\ See Preliminary Decision Memorandum.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. We calculated export prices and 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. In addition, the Department relied on adverse facts 
available under sections 776(a) and (b) of the Act. Specifically, the 
Department did not receive timely responses to its Q&V questionnaire or 
separate rate applications from numerous PRC exporters and/or producers 
of merchandise under consideration that were named in the Petition and 
to whom the Department issued Q&V questionnaires.\6\ Because non-
responsive PRC companies have not demonstrated that they are eligible 
for separate rate status, the Department considers them to be part of 
the PRC-wide entity.\7\ For a full description of the methodology 
underlying our preliminary conclusions, see the Preliminary Decision 
Memorandum.
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    \6\ See Q&V Delivery Confirmation Memo.
    \7\ See Certain Cut-to-Length Carbon Steel Plate from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review; 2013-2014, 80 FR 75966 (December 7, 2015) and 
accompanying Issues and Decision Memorandum at Comment 1.
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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. Policy Bulletin 05.1 describes 
this practice.\8\
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    \8\ 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 Department preliminarily determines that the following 
weighted-average dumping margins exist during the POI:

------------------------------------------------------------------------
                                                       Weighted-average
           Producer                   Exporter          dumping margin
------------------------------------------------------------------------
Nanjing University of          Nanjing University of              179.97
 Chemical Technology            Chemical Technology
 Changzhou Wujin Water          Changzhou Wujin
 Quality Stabilizer Factory.    Water Quality
                                Stabilizer Factory
                                and Nantong Uniphos
                                Chemicals Co., Ltd.
                                (collectively, ``WW
                                Group'').

[[Page 76917]]

 
Shandong Taihe Water           Shandong Taihe                     137.61
 Treatment Technologies Co.,    Chemicals Co., Ltd.
 Ltd.                           (``Taihe'').
Henan Qingshuiyuan Technology  Henan Qingshuiyuan                 168.95
 Co., Ltd.                      Technology Co., Ltd.
                                (``Qingshuiyuan'').
Jianghai Environmental         Jianghai                           168.95
 Protection Co., Ltd.           Environmental
                                Protection Co., Ltd.
                                (``Jianghai'').
------------------------------------------------------------------------
                   PRC-Wide Entity                                179.97
------------------------------------------------------------------------

Non-Selected Separate Rate

    In calculating rates for non-individually investigated respondents 
in the context of non-market economy cases, the Department looks to 
section 735(c)(5)(A)-(B) of the Act, which provides instructions for 
calculating the all-others rate in an investigation. Section 
735(c)(5)(A) of the Act provides that the estimated all-others rate 
shall be equivalent to the weighted average of the estimated weighted-
average dumping margins calculated for exporters and producers 
individually investigated, excluding any margins that are zero, de 
minimis, or based entirely on facts available. Section 735(c)(5)(B) of 
the Act provides that where all individually investigated exporters or 
producers receive rates that are zero, de minimis, or based entirely on 
facts available, then the Department may use ``any reasonable method'' 
to establish the all-others rate for those companies not individually 
investigated.
    Apart from the mandatory respondents in this investigation, two 
other PRC exporters of the subject merchandise during the POI 
established entitlement to a separate rate.\9\ Thus, separate rates are 
being assigned in this segment to Jianghai and Qingshuiyuan. There 
currently exist no individually investigated respondents that have 
failed to cooperate in this investigation, and there are no zero or de 
minimis margins. Therefore, we are preliminarily determining the 
separate rate for non-selected companies (Jianghai and Qingshuiyuan) 
based on a weighted-average of the calculated rates determined for the 
mandatory respondents,\10\ in accordance with section 735(c)(5)(A) of 
the Act.
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    \9\ See Preliminary Decision Memo.
    \10\ We have calculated (A) a weighted-average of the dumping 
margins calculated for the mandatory respondents; (B) a simple 
average of the dumping margins calculated for the mandatory 
respondents; and (C) a weighted-average of the dumping margins 
calculated for the mandatory respondents using each company's 
publicly-ranged values for the merchandise under consideration. We 
would compare (B) and (C) to (A) and select the rate closest to (A) 
as the most appropriate rate for all other companies. See Ball 
Bearings and Parts Thereof from France, Germany, Italy, Japan, and 
the United Kingdom: Final Results of Antidumping Duty Administrative 
Reviews, Final Results of Changed-Circumstances Review, and 
Revocation of an Order in Part, 75 FR 53661, 53663 (September 1, 
2010).
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, the Department 
will direct U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of HEDP 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.
    Pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), 
the Department will instruct CBP to require a cash deposit \11\ equal 
to the weighted-average amount by which NV exceeds U.S. price as 
follows: (1) The cash deposit rate for the exporter/producer 
combination listed in the table above will be the rate identified for 
that combination in the table; (2) for all combinations of PRC 
exporters/producers of merchandise under consideration that have not 
received their own separate rate above, the cash-deposit rate will be 
the cash deposit rate established for the PRC-wide entity; and (3) for 
all non-PRC exporters of the merchandise under consideration which have 
not received their own separate rate above, the cash-deposit rate will 
be the cash deposit rate applicable to the PRC exporter/producer 
combination that supplied that non-PRC exporter. These suspension of 
liquidation instructions will remain in effect until further notice.
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    \11\ 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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    We normally adjust antidumping duty cash deposit rates by the 
amount of export subsidies, where appropriate. In the companion CVD 
investigation, we preliminarily found that the WW Group did not receive 
export subsidies.\12\ Therefore, no offset to the WW Group's cash 
deposit rate for export subsidies is necessary.\13\ With respect to 
Taihe, because its countervailing duty rate in the companion 
investigation included an amount for export subsidies, an offset of 
0.28 percent will be made to its cash deposit rate.\14\ With respect to 
the separate-rate companies, we find that an export subsidy adjustment 
of 0.14 percent to the cash deposit rate is warranted because this is 
the export subsidy rate included in the countervailing duty ``all 
others'' rate to which the separate-rate companies are subject. For the 
PRC-wide entity, which received an adverse facts available rate in this 
preliminary determination, as an extension of the adverse inference 
found necessary pursuant to section 776(b) of the Act, the Department 
has not adjusted the PRC-wide entity's AD cash deposit rate by the 
lowest export subsidy rate determined for any party in the companion 
CVD proceeding, because the lowest export subsidy rate determined in 
the companion CVD proceeding is 0.00 percent.\15,16\
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    \12\ See Countervailing Duty Investigation of 1-
Hydroxyethylidene-1, 1-Diphosphonic Acid from the People's Republic 
of China: Preliminary Affirmative Determination and Alignment of 
Final Determination with Final Antidumping Duty Determination, 81 FR 
62084 (September 8, 2016) (``HEDP CVD Prelim''), and accompanying 
Preliminary Decision Memorandum at 13-19.
    \13\ Id.
    \14\ Id.
    \15\ See, e.g., Certain Passenger Vehicle and Light Truck Tires 
From the People's Republic of China: Preliminary Determination of 
Sales at Less Than Fair Value; Preliminary Affirmative Determination 
of Critical Circumstances; In Part and Postponement of Final 
Determination, 80 FR 4250 (January 27, 2015), and accompanying 
Issues and Decision Memorandum at 35.
    \16\ See HEDP CVD Prelim at 81 FR 62085.
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    Pursuant to section 777A(f) of the Act, we normally adjust 
preliminary cash deposit rates for estimated domestic subsidy pass-
through, where appropriate. However, in this case there is no basis to 
grant a domestic subsidy pass-through adjustment.\17\
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    \17\ See Preliminary Decision Memorandum at 28-29.
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Disclosure and Public Comment

    We intend to disclose the calculations performed to interested 
parties in this proceeding within five days of the date of announcement 
of this preliminary determination in accordance with 19 CFR 351.224(b). 
Interested parties may submit case briefs, rebuttal briefs, and hearing 
requests.\18\ For a schedule of the deadlines for filing case briefs, 
rebuttal briefs, and hearing requests, see the

[[Page 76918]]

Preliminary Decision Memorandum at Section IX.
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    \18\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
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International Trade Commission (``ITC'') Notification

    In accordance with section 733(f) of the Act, we will notify the 
ITC of our affirmative 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.\19\
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    \19\ See section 735(b)(2) of the Act.
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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, 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, a request for such postponement is made by 
Petitioners. 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 October 19 and 20, 2016, pursuant to 19 CFR 351.210(b) and (e), 
the WW Group and Taihe, respectively, requested that, contingent upon 
an affirmative preliminary determination of sales at LTFV, the 
Department postpone the final determination and that provisional 
measures be extended to a period not to exceed six months.\20\
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    \20\ See the WW Group's Letter (October 19, 2016); Taihe's 
Letter (October 20, 2016).
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    In accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), 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.\21\
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    \21\ See also 19 CFR 351.210(e).
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    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

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

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation includes all 
grades of aqueous acidic (non-neutralized) concentrations of 1-
hydroxyethylidene-1, 1-diphosphonic acid (HEDP), also referred to as 
hydroxyethylidenendiphosphonic acid, hydroxyethanediphosphonic acid, 
acetodiphosphonic acid, and etidronic acid. The CAS (Chemical 
Abstract Service) registry number for HEDP is 2809-21-4.
    The merchandise subject to this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) at subheading 2931.90.9043. It may also enter under HTSUS 
subheadings 2811.19.6090 and 2931.90.9041. While HTSUS subheadings 
and the CAS registry number are provided for convenience and customs 
purposes only, the written description of the scope of this 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional 
Measures
V. Scope Comments
VI. Selection of Respondents
VII. Scope of the Investigation
VIII. Discussion of the Methodology
    a. Non-Market Economy Country
    b. Surrogate Country and Surrogate Values Comments
    c. Separate Rates
    d. Combination Rates
    e. Collapsing and Affiliation
    f. The PRC-Wide Entity
    g. Application of Facts Available and Adverse Inferences
    h. Date of Sale
    i. Comparisons to Fair Value
    j. Normal Value
    k. Factor Valuation Methodology
    l. Determination of the Comparison Method
IX. Currency Conversion
X. Export Subsidy Adjustment
XI. Adjustment Under Section 777A(f) of the Act
XII. Disclosure and Public Comment
XIII. Verification
XIV. Recommendation

[FR Doc. 2016-26755 Filed 11-3-16; 8:45 am]
BILLING CODE 3510-DS-P