[Federal Register Volume 82, Number 55 (Thursday, March 23, 2017)]
[Notices]
[Pages 14872-14874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05804]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-046]


Countervailing Duty Investigation of 1-Hydroxyethylidene-1, 1-
Diphosphonic Acid 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 (Department) determines that

[[Page 14873]]

countervailable subsidies are being provided to producers and exporters 
of 1-Hydroxyethylidene-1, 1-Diphosphonic Acid (HEDP) from the People's 
Republic of China (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 March 23, 2017.

FOR FURTHER INFORMATION CONTACT: Javier Barrientos or Matthew Renkey, 
AD/CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone 202.482.2243 or 
202.482.2312, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The petitioner in this investigation is Compass Chemical 
International LLC (Petitioner). In addition to the Government of China 
(GOC), the mandatory respondents in this investigation are Nanjing 
University of Chemical Technology Changzhou Wujin Water Quality 
Stabilizer Factory (Wujin Water) and Shandong Taihe Water Treatment 
Technologies Co., Ltd. (Taihe Technologies). The Department has 
determined that Taihe Technologies is affiliated with Shandong Taihe 
Chemicals Co., Ltd. (Taihe Chemicals), a trading company, and will 
refer to them collectively as ``Taihe Companies.''
    The Department published its Preliminary Determination on September 
8, 2016.\1\ On March 2, 2017, the Department issued a Post-Preliminary 
Analysis.\2\ A complete summary of the events that occurred since the 
Preliminary Determination, as well as a full discussion of the issues 
raised by the parties for this final determination, may be found in the 
Issues and Decision Memorandum accompanying the Final Affirmative 
Determination,\3\ 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 1-
Hydroxyethylidene-1, 1-Diphosphonic Acid from the People's Republic 
of China: Preliminary Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 81 FR 62084 
(September 8, 2016) (Preliminary Determination).
    \2\ See Countervailing Duty Investigation of 1-
Hydroxyethylidene-1, 1-Diphosphonic Acid from the People's Republic 
of China: Post-Preliminary Analysis Memorandum, dated March 2, 2017 
(Post-Preliminary Analysis).
    \3\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for 
Enforcement and Compliance, ``Countervailing Duty Investigation of 
1-Hydroxyethylidene-1, 1-Diphosphonic Acid from the People's 
Republic of China: Issues and Decision Memorandum for the Final 
Affirmative Determination,'' dated concurrently with this notice 
(Issues and Decisions Memorandum).
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Methodology

    The Department is conducting this countervailing duty (CVD) 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (Act). For each of the subsidy programs found to be 
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 final determination, see 
the Issues and Decisions Memorandum.

Scope of the Investigation

    The product covered by this investigation is HEDP 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 Memorandum are attached at 
Appendix I to this notice.

Use of Adverse Facts Available

    For purposes of this final determination, we relied on facts 
available, and because certain respondents did not act to the best of 
their ability in responding to the Department's requests for 
information, we drew an adverse inference, where appropriate, in 
selecting from among the facts otherwise available.\4\ 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 Memorandum.
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    \4\ See sections 776(a) and (b) of the Act.
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Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated an estimated individual countervailable subsidy rate for 
each producer/exporter of the subject merchandise individually 
investigated.
    In accordance with section 705(c)(5)(A) of the Act, for companies 
not individually investigated, we applied 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)(A)(i) of the Act, the all-others rate excludes zero and de 
minimis rates calculated for the exporters and producers individually 
investigated, as well as rates based entirely on facts otherwise 
available. In this investigation, the only non-de minimis rate, or rate 
not based entirely on facts otherwise available, is the rate calculated 
for the Taihe Companies. Consequently, the rate calculated for the 
Taihe Companies is assigned as the ``all others'' rate.

------------------------------------------------------------------------
               Company                 Subsidy rate (percent ad valorem)
------------------------------------------------------------------------
Nanjing University of Chemical         0.75 (de minimis)
 Technology Changzhou Wujin Water
 Quality Stabilizer Factory (Wujin
 Water).
Shandong Taihe Chemicals Co., Ltd.     2.40
 and Shandong Taihe Water Treatment
 Technologies Co., Ltd. (Taihe
 Companies).
All-Others...........................  2.40
* Changzhou Kewei Fine Chemicals Co.,  54.11
 Ltd.
* Hebei Longke Water Treatment Co.,    54.11
 Ltd.

[[Page 14874]]

 
* Shandong Huayou Chemistry Co., Ltd.  54.11
* Shandong Xintai Water Treatment      54.11
 Technology.
* Zaozhuang Fuxing Water Treatment     54.11
 Technology.
* Zaozhuang YouBang Chemicals Co.,     54.11
 Ltd.
* Zouping Dongfang Chemical Industry   54.11
 Co., Ltd.
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* 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 Issues and Decisions Memorandum.

Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of public announcement of our final determination, in 
accordance with 19 CFR 351.224(b).

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 HEDP from the 
PRC, that were entered, or withdrawn from warehouse, for consumption on 
or after September 8, 2016, the date of the publication of the 
Preliminary Determination in the Federal Register. 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 January 6, 2017, but 
to continue the suspension of liquidation of all entries from September 
8, 2016, through January 5, 2017.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and 
reinstate the suspension of liquidation under section 706(a) of the 
Act, requiring 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 
subject 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 sections 705(d) and 
777(i) of the Act.

    Dated: March 20, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Subsidy Valuation
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Analysis of Comments
    Comment 1: Electricity for LTAR Calculation
    Comment 2: Whether the Department Should Find Wujin Water To Be 
Cross-Owned With Nantong Uniphos
X. Recommendation

Appendix II

    The merchandise covered by this investigation includes all 
grades of aqueous acidic (non-neutralized) concentrations of HEDP, 
also referred to as hydroxyethylidenendiphosphonic acid, 
hydroxyethanediphosphonic acid, acetodiphosphonic acid, and 
etidronic acid. The Chemical Abstract Service (CAS) 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 281.19.6090 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.

[FR Doc. 2017-05804 Filed 3-22-17; 8:45 am]
 BILLING CODE 3510-DS-P