[Federal Register Volume 82, Number 7 (Wednesday, January 11, 2017)]
[Notices]
[Pages 3282-3284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00429]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-037]


Countervailing Duty Investigation of Certain Biaxial Integral 
Geogrid Products From the People's Republic of China: Final Affirmative 
Determination and Final Determination of Critical Circumstances, in 
Part

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 biaxial integral geogrid products (``geogrids'') 
from the People's Republic of China (the ``PRC''). The period of 
investigation is January 1, 2015, through December 31, 2015. For 
information on the estimated subsidy rates, see the ``Suspension of 
Liquidation'' section of this notice.

DATES: Effective January 11, 2017.

FOR FURTHER INFORMATION CONTACT: Bob Palmer or Ryan Mullen, AD/CVD 
Operations, Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone 202-482-9068 or 202-482-5260, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The petitioner in this investigation is Tensar Corporation 
(``Petitioner''). In addition to the Government of China (``GOC''), the 
mandatory respondents in this investigation are BOSTD Geosynthetics 
Qingdao Ltd. and its crossed-owned company Beijing Orient Science & 
Technology Development Co., Ltd. (``BOSTD''), and Taian Modern Plastic 
Co., Ltd. (``Taian Modern'').
    The Department published its Preliminary Determination on June 24, 
2016, and its Amended Preliminary Determination on July 26, 2016.\1\ A 
complete summary of the events that occurred since the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for this final determination, may be found in the 
``Countervailing Duty Investigation of Certain Biaxial Integral Geogrid 
Products from the People's Republic of China: Issues and Decision 
Memorandum for the Final Affirmative Determination,'' \2\ which is 
dated concurrently with and hereby adopted by this notice. The Issues 
and Decision Memorandum is a public document and is available 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (``ACCESS''). 
Access to ACCESS is available to registered users at https://access.trade.gov and to all parties in the Central Records Unit, Room 
B8024 of the Department's main building. In addition, a complete 
version of the Issues and Decision Memorandum can be viewed at http://enforcement.trade.gov/frn. The signed Issues and Decision Memorandum 
and the electronic version are identical in content.
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    \1\ See Countervailing Duty Investigation of Certain Biaxial 
Integral Geogrid Products from the People's Republic of China: 
Preliminary Determination and Alignment of Final Determination with 
Final Antidumping Duty Determination, 81 FR 41292 (June 24, 2016) 
(``Preliminary Determination'') and Certain Biaxial Integral Geogrid 
Products from the People's Republic of China: Amended Preliminary 
Results of Countervailing Duty Investigation, 81 FR 48384 (July 26, 
2016) (``Amended Preliminary Determination'').
    \2\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance, `` Countervailing Duty Investigation of Certain Biaxial 
Integral Geogrid Products from the People's Republic of China: 
Issues and Decision Memorandum for the Final Affirmative 
Determination,'' dated concurrently with this notice (``Issues and 
Decisions Memo'').
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Methodology

    The Department conducted 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. For a full 
description of the methodology underlying our preliminary conclusions, 
see the Issues and Decisions Memo.

Scope of the Investigation

    The products covered by this investigation are geogrids from the 
PRC. For a complete description of the scope of this investigation, see 
Appendix II.

Analysis of Subsidy Programs and Comments Received

    All issues raised in the comments filed by interested parties to 
this proceeding are discussed in the Issues and Decision Memorandum. A 
list of the issues raised by interested parties and responded to by the 
Department in the Issues and Decisions Memo are attached at Appendix II 
to this notice.

Use of Adverse Facts Available

    For purposes of this final determination, we relied, in part, on 
facts available and, because certain 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.\3\ A full 
discussion of our decision to rely on adverse facts available is 
presented in the ``Use of Facts Otherwise Available and Adverse 
Inferences'' section of the Issues and Decisions Memo.
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    \3\ See sections 776(a) and (b) of the Act.
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Final Determination

    In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A)(i) 
of the Act, we calculated an estimated countervailable subsidy rate for 
each producer/exporter of the subject merchandise individually 
investigated. These rates are:

------------------------------------------------------------------------
                       Company                            Subsidy rate
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BOSTD Geosynthetics Qingdao Ltd. and Beijing Orient                15.61
 Science & Technology Development Co., Ltd...........
Taian Modern Plastic Co., Ltd........................              56.24
All-Others...........................................              35.93

[[Page 3283]]

 
Chengdu Tian Road Engineering Materials Co., Ltd *...             152.50
Chongqing Jiudi Reinforced Soil Engineering Co., Ltd              152.50
 *...................................................
CNBM International Corporation *.....................             152.50
Dezhou Yaohua Geosynthetics Ltd *....................             152.50
Dezhou Zhengyu Geosynthetics Ltd *...................             152.50
Hongye Engineering Materials Co., Ltd *..............             152.50
Hubei Nete Geosynthetics Ltd *.......................             152.50
Jiangsu Dingtai Engineering Material Co., Ltd *......             152.50
Jiangsu Jiuding New Material Ltd *...................             152.50
Lewu New Material Ltd *..............................             152.50
Nanjing Jinlu Geosynthetics Ltd *....................             152.50
Nanjing Kunchi Composite Material Ltd *..............             152.50
Nanyang Jieda Geosynthetics Co., Ltd *...............             152.50
Qingdao Hongda Plastics Corp *.......................             152.50
Shandong Dexuda Geosynthetics Ltd *..................             152.50
Shandong Haoyang New Engineering Materials Co., Ltd *             152.50
Shandong Tongfa Glass Fiber Ltd *....................             152.50
Shandong Xinyu Geosynthetics Ltd *...................             152.50
Tai'an Haohua Plastics Co., Ltd *....................             152.50
Taian Hengbang Engineering Material Co., Ltd *.......             152.50
Taian Naite Geosynthetics Ltd *......................             152.50
Taian Road Engineering Materials Co., Ltd *..........             152.50
Tenax *..............................................             152.50
Hengshui Zhongtiejian Group Co *.....................             152.50
Qingdao Sunrise Dageng Import and Export Co., Ltd *..             152.50
------------------------------------------------------------------------
* 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 Issus and Decisions Memo.

    In accordance with sections 705(c)(5)(A) of the Act, for companies 
not investigated, we apply an ``all-others'' rate, which is normally 
calculated by weighting the subsidy rates of the individual companies 
selected as mandatory respondents by those companies' exports of the 
subject merchandise to the United States. Under section 705(c)(5)(i) of 
the Act, the all-others rate should exclude zero and de minimis rates 
calculated for the exporters and producers individually investigated as 
well as rates based entirely on facts otherwise 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 doing 
so risks disclosure of proprietary information. Therefore, for the 
``all-others'' rate, we calculated a simple average of the two 
responding firms' rates.

Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (``CBP'') to suspend liquidation of all entries of geogrids 
from the PRC, that were entered, or withdrawn from warehouse, for 
consumption on or after March 26, 2016, for BOSTD and all other 
companies, for which we found critical circumstances exist, and on or 
after June 24, 2016, the date of the publication of the Preliminary 
Determination in the Federal Register, for Taian Modern. In accordance 
with section 703(d) of the Act, we instructed CBP to discontinue the 
suspension of liquidation for CVD purposes for subject merchandise 
entered, or withdrawn from warehouse, on or after October 22, 2016, but 
to continue the suspension of liquidation of all entries from June 24, 
2016, or March 26, 2016, as applicable, through October 21, 2016.
    If the U.S. International Trade Commission (``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 (``APO''), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
such to an 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 or destruction 
of APO materials or, alternatively, conversion to judicial protective 
order, is hereby requested. Failure to comply with the regulations and 
terms of an APO is a violation that is subject to sanction.
    This determination is published pursuant to section 705(d) and 
777(i) of the Act.

    Dated: January 4, 2017.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memo

I. Summary
II. Background
III. Final Determination of Critical Circumstances, in Part
IV. Scope of the Investigation

[[Page 3284]]

V. Application of the Countervailing Duty Law to Imports From the 
PRC
VI. Subsidy Valuation
VII. Benchmarks and Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Analysis of Programs
X. Analysis of Comments
    Comment 1: Whether the Export Buyer's Credit Program Was Used by 
Respondents
    Comment 2: Policy Loans for Geogrids Industry
    Comment 3: Whether the Provision of Polypropylene for LTAR Is 
Specific
    Comment 4: Whether To Attribute Polypropylene LTAR Benefits to 
Only Polypropylene Products
    Comment 5: Whether To Use a Different Polypropylene Benchmark
    Comment 6: Whether To Remove Certain Freight Expenses From the 
Polypropylene Benchmark
    Comment 7: Whether To Exclude Non-Production Related Income From 
the Denominator
    Comment 8: Whether To Exclude Negative Offsets in the Benefit 
Calculation for Electricity
    Comment 9: Whether To Apply AFA to BOSTD's Electricity
    Comment 10: Whether To Include Certain Loans in the Subsidy 
Calculations
    Comment 11: Whether To Include Certain Electricity Funds
    Comment 12: Whether the Department's Finding of Critical 
Circumstance for BOSTD Is Contrary to Law
    Comment 13: Land-Use Rights for LTAR, Plant and Equipment for 
LTAR, and Installment Plans for Land-Use Rights
XI. Recommendation

Appendix II

    The products covered by the scope are certain biaxial integral 
geogrid products. Biaxial integral geogrid products are a polymer 
grid or mesh material (whether or not finished, slit, cut-to-length, 
attached to woven or non-woven fabric or sheet material, or 
packaged) in which four-sided openings in the form of squares, 
rectangles, rhomboids, diamonds, or other four-sided figures 
predominate. The products covered have integral strands that have 
been stretched to induce molecular orientation into the material (as 
evidenced by the strands being thinner in width toward the middle 
between the junctions than at the junctions themselves) constituting 
the sides of the openings and integral junctions where the strands 
intersect. The scope includes products in which four-sided figures 
predominate whether or not they also contain additional strands 
intersecting the four-sided figures and whether or not the inside 
corners of the four-sided figures are rounded off or not sharp 
angles. As used herein, the term ``integral'' refers to strands and 
junctions that are homogenous with each other. The products covered 
have a tensile strength of greater than 5 kilonewtons per meter 
(``kN/m'') according to American Society for Testing and Materials 
(``ASTM'') Standard Test Method D6637/D6637M in any direction and 
average overall flexural stiffness of more than 100,000 milligram-
centimeter according to the ASTM D7748/D7748M Standard Test Method 
for Flexural Rigidity of Geogrids, Geotextiles and Related Products, 
or other equivalent test method standards.
    Subject merchandise includes material matching the above 
description that has been finished, packaged, or otherwise further 
processed in a third country, including by trimming, slitting, 
coating, cutting, punching holes, stretching, attaching to woven or 
non-woven fabric or sheet material, or any other finishing, 
packaging, or other further processing that would not otherwise 
remove the merchandise from the scope of the investigations if 
performed in the country of manufacture of the biaxial integral 
geogrid.
    The products subject to the scope are currently classified in 
the Harmonized Tariff Schedule of the United States (``HTSUS'') 
under the following subheading: 3926.90.9995. Subject merchandise 
may also enter under subheadings 3920.20.0050 and 3925.90.0000. The 
HTSUS subheadings set forth above are provided for convenience and 
U.S. Customs purposes only. The written description of the scope is 
dispositive.

[FR Doc. 2017-00429 Filed 1-10-17; 8:45 am]
 BILLING CODE 3510-DS-P