[Federal Register Volume 82, Number 78 (Tuesday, April 25, 2017)]
[Notices]
[Pages 19022-19025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08328]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-052]


Certain Hardwood Plywood Products From the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination, 
Preliminary Affirmative Critical Circumstances Determination, in Part, 
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 (Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain hardwood plywood products (hardwood 
plywood) from the People's Republic of China (PRC). The period of 
investigation is January 1, 2015, through December 31, 2015.

DATES: Effective April 25, 2017.

FOR FURTHER INFORMATION CONTACT: Justin Neuman or Matthew Renkey, AD/
CVD Operations, Office V, Enforcement

[[Page 19023]]

and Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; 
telephone: (202) 482-0486 or (202) 482-2312, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (Act). The Department 
published the notice of initiation of this investigation on December 
16, 2016.\1\ On January 27, 2017, the Department postponed the 
preliminary determination of this investigation to April 17, 2017.\2\ 
For a complete description of the events that followed the initiation 
of this investigation, see the Preliminary Decision Memorandum.\3\ A 
list of topics discussed 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 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://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Preliminary Decision Memorandum are identical in content.
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    \1\ See Certain Hardwood Plywood Products from the People's 
Republic of China: Initiation of Countervailing Duty Investigation, 
81 FR 91131 (December 16, 2016) (Initiation Notice).
    \2\ See Countervailing Duty Investigation of Certain Hardwood 
Plywood Products from the People's Republic of China: Postponement 
of Preliminary Determination, 82 FR 8605 (January 27, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Certain 
Hardwood Plywood Products from the 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 hardwood plywood from 
the PRC. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. We have evaluated the scope comments filed by 
the interested parties and are issuing our preliminary decision 
regarding the scope of the AD and CVD investigations in conjunction 
with this preliminary determination. We will issue final scope 
decisions after considering any relevant comments submitted in case and 
rebuttal briefs.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    The Department is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, the Department preliminarily determines 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.\6\
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    \6\ 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.
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    The Department notes that, in making these findings, it relied, in 
part, on facts available and, because it finds that one or more 
respondents did not act to the best of their ability to respond to the 
Department's requests for information, it drew an adverse inference 
where appropriate in selecting from among the facts otherwise 
available.\7\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    In accordance with section 703(e)(1) of the Act, the Department 
preliminarily determines that critical circumstances exist with respect 
to imports of hardwood plywood from PRC for Shandong Dongfang Bayley 
Wood Co., Ltd. (Bayley Wood) and all other exporters or producers not 
individually examined (including those that did not respond to our 
quantity and value questionnaire), but do not exist with respect to 
Linyi Sanfortune Wood Co., Ltd. (Sanfortune). For a full description of 
the methodology and results of the Department's analysis, see the 
Preliminary Decision Memorandum.

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), the Department 
is aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of hardwood plywood from the PRC based on a 
request made by Petitioners.\8\ 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 
August 30, 2017, unless postponed.
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    \8\ See Petitioners' Alignment Request, dated April 13, 2017.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, the Department shall determine an estimated 
all-others rate for companies not individually examined. This rate 
shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any zero and de minimis rates and any rates based entirely 
under section 776 of the Act. In this investigation, the Department 
preliminarily assigned a rate based entirely on facts available to 
Bayley Wood. Therefore, the only rate that is not zero, de minimis, or 
based entirely on facts otherwise available is the rate calculated for 
Sanfortune. Consequently, the rate calculated for Sanfortune is also 
assigned as the rate for all-other producers and exporters.

Preliminary Determination

    The Department preliminarily determines that the following 
estimated countervailable subsidy rates exist:
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    \9\ As discussed in the Preliminary Decision Memorandum, the 
Department has found that Bayley Wood is cross-owned with Linyi 
Yinhe Panel Factory (Yinhe Panel), a producer of subject 
merchandise. The Department also applied total adverse facts 
available (AFA) to Bayley Wood and Yinhe Panel.
    \10\ This company and those listed below are receiving the AFA 
rate because they did not respond to our quantity and value 
questionnaire.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                                rate
                                                               (percent)
------------------------------------------------------------------------
Dongfang Bayley Wood Co., Ltd \9\............................     111.09
Linyi Sanfortune Wood Co., Ltd...............................       9.89
All-Others...................................................       9.89
Anji Qichen Bamboo Industry Co. Ltd \10\.....................     111.09
Deqing Shengqiang Wood Co., Ltd..............................     111.09
Guangxi Sunway Cen.Xi Artificial Board Ltd...................     111.09
Guangxi Sunway Forest Products Industry Co., Ltd.............     111.09
Hebei Tongli Wood Co., Ltd...................................     111.09
Heze Fulin Wood Products Co., Ltd............................     111.09
Jiashan Minghong Wood Industry Co., Ltd......................     111.09
Jiaxing Brilliant Import & Export Co., Ltd...................     111.09

[[Page 19024]]

 
Joc Yuantai International Trading Co., Ltd...................     111.09
Keens Products...............................................     111.09
King Sheng...................................................     111.09
Kunming Alston Ast Wood Products Co., Ltd....................     111.09
Langfang Baomujie Wood Co., Ltd..............................     111.09
Larkcop International Co., Ltd...............................     111.09
Linyi Cathay Pacific Wood Factory............................     111.09
Linyi Celtic Wood Co., Ltd...................................     111.09
Linyi Dongri Plywood Co., Ltd................................     111.09
Linyi Hongma.................................................     111.09
Linyi Jinhua Wood Co., Ltd...................................     111.09
Linyi Kai Yi Arts and Crafts Co., Ltd........................     111.09
Linyi Laiyi Timber Industry Co., Ltd.........................     111.09
Linyi Lianyi Wood Co., Ltd...................................     111.09
Linyi Raya Commerce..........................................     111.09
Linyi Yutai Wood Co., Ltd....................................     111.09
Lishui Liancheng Pencil Manufacturing Co., Ltd...............     111.09
Mol Consolidation Service....................................     111.09
Ningbo Asia Pulp and Paper...................................     111.09
Ningbo Zhonghua Paper........................................     111.09
Qiangsheng Wood Co., Ltd.....................................     111.09
Qingdao Liansheng International Trading......................     111.09
Qufu Shengda Wood Co., Ltd...................................     111.09
Shandong Fengtai Wood Co., Ltd...............................     111.09
Shandong Hongyang Fire Resistant.............................     111.09
Shandong Xingang Group.......................................     111.09
Shanghai Sunshine Decorative Materials Co., Ltd..............     111.09
Shenghe Wood Company Ltd.....................................     111.09
Shouguang Evergreen Im & Ex Co. Ltd \11\.....................     111.09
Shouguang Taizhong Wood Co., Ltd.............................     111.09
Siyang Jiayuan Woodindustry Co., Ltd.........................     111.09
Siyang Senda Wood Industry Co., Ltd..........................     111.09
Suqian Bairun Wood Industry Co., Ltd.........................     111.09
Suqian Foreign Trade Co., Ltd................................     111.09
Suqian Sulu Wood Industry Co., Ltd \12\......................     111.09
Suzbou Dong He Wood Co., Ltd.................................     111.09
Tianjin Canex................................................     111.09
Tianjin Zhanye Metal Products Co., Ltd.......................     111.09
Xuzhou Fuyuan Wood Co., Ltd..................................     111.09
Xuzhou Hongwei Wood Co., Ltd.................................     111.09
Xuzhou Ruilin Timber Co., Ltd................................     111.09
Xuzhou Shenghe Wood Products.................................     111.09
Xuzhou Woodhi Trading Co. Ltd................................     111.09
Xuzhou Yishun Brightwood Co. Ltd.............................     111.09
Xuzhou Zhongda Building Materials Co., Ltd...................     111.09
Xuzhou Zhongyuan Wood Co., Ltd...............................     111.09
Yixing Lion-King Timber Industry Co., Ltd....................     111.09
Zhejiang Deqing Shengqiang Wood Co., Ltd.....................     111.09
Zhejiang Fuerjia Wooden Company..............................     111.09
Zhejiang Jufeng Wood Co., Ltd................................     111.09
Zhejiang Xinyuan Bamboo Products Co., Ltd....................     111.09
Zhejiang Yongyu Bamboo Joint-Stock Co., Ltd..................     111.09
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Suspension of Liquidation
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    \11\ This company was listed as having the following two ``aka'' 
names: Shouguang Evergreen Co., Ltd. and Weifang Evergreen Wood Co., 
Ltd.
    \12\ This company was listed as having the following ``aka'' 
name: Suqian Sulu Import and Export Trading.
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    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, the 
Department will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise 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. Further, pursuant to 19 CFR 351.205(d), 
the Department will instruct CBP to require a cash deposit equal to the 
rates indicated above.
    Section 703(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 the investigation was published. The Department 
preliminarily finds that critical circumstances exist for imports of 
subject merchandise produced and/or exported by Bayley Wood and all 
other exporters \13\ or producers not individually examined. In 
accordance with section 703(e)(2)(A) of the Act, the suspension of 
liquidation shall apply to unliquidated entries of merchandise from the 
exporters/producers identified in this paragraph that were entered, or 
withdrawn from warehouse, for consumption on or after the date which is 
90 days before the publication of this notice.
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    \13\ This includes those companies that are receiving the AFA 
rate, as described in footnote 10.
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Disclosure

    The Department intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, the Department intends 
to verify the information relied upon in making its final 
determination.

Public Comment

    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 investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\14\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
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.
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    \14\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, 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, 1401 Constitution Avenue NW., Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its determination. 
If the 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 the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: April 17, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise subject to this investigation is hardwood and 
decorative plywood, and certain veneered panels as described below. 
For purposes of this proceeding, hardwood and decorative plywood is 
defined as a generally flat, multilayered plywood or other veneered 
panel, consisting of two or more layers or plies of wood veneers and 
a core, with the face and/or back veneer made of non-coniferous wood 
(hardwood) or bamboo. The veneers, along with the core may be glued 
or otherwise bonded together. Hardwood and decorative plywood may 
include products that meet the American National Standard for 
Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2016 (including any 
revisions to that standard).

[[Page 19025]]

    For purposes of this investigation a ``veneer'' is a slice of 
wood regardless of thickness which is cut, sliced or sawed from a 
log, bolt, or flitch. The face and back veneers are the outermost 
veneer of wood on either side of the core irrespective of additional 
surface coatings or covers as described below.
    The core of hardwood and decorative plywood consists of the 
layer or layers of one or more material(s) that are situated between 
the face and back veneers. The core may be composed of a range of 
materials, including but not limited to hardwood, softwood, 
particleboard, or medium-density fiberboard (MDF).
    All hardwood plywood is included within the scope of this 
investigation regardless of whether or not the face and/or back 
veneers are surface coated or covered and whether or not such 
surface coating(s) or covers obscures the grain, textures, or 
markings of the wood. Examples of surface coatings and covers 
include, but are not limited to: Ultra violet light cured 
polyurethanes; oil or oil-modified or water based polyurethanes; 
wax; epoxy-ester finishes; moisture-cured urethanes; paints; stains; 
paper; aluminum; high pressure laminate; MDF; medium density overlay 
(MDO); and phenolic film. Additionally, the face veneer of hardwood 
plywood may be sanded; smoothed or given a ``distressed'' appearance 
through such methods as hand-scraping or wire brushing. All hardwood 
plywood is included within the scope even if it is trimmed; cut-to-
size; notched; punched; drilled; or has underwent other forms of 
minor processing.
    All hardwood and decorative plywood is included within the scope 
of this investigation, without regard to dimension (overall 
thickness, thickness of face veneer, thickness of back veneer, 
thickness of core, thickness of inner veneers, width, or length). 
However, the most common panel sizes of hardwood and decorative 
plywood are 1219 x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 
inches), and 1219 x 3048 mm (48 x 120 inches).
    Subject merchandise also includes hardwood and decorative 
plywood that has been further processed in a third country, 
including but not limited to trimming, cutting, notching, punching, 
drilling, 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 product.
    The scope of the investigation excludes the following items: (1) 
Structural plywood (also known as ``industrial plywood'' or 
``industrial panels'') that is manufactured to meet U.S. Products 
Standard PS 1-09, PS 2-09, or PS 2-10 for Structural Plywood 
(including any revisions to that standard or any substantially 
equivalent international standard intended for structural plywood), 
and which has both a face and a back veneer of coniferous wood; (2) 
products which have a face and back veneer of cork; (3) multilayered 
wood flooring, as described in the antidumping duty and 
countervailing duty orders on Multilayered Wood Flooring from the 
People's Republic of China, Import Administration, International 
Trade Administration. See Multilayered Wood Flooring from the 
People's Republic of China, 76 FR 76690 (December 8, 2011) (amended 
final determination of sales at less than fair value and antidumping 
duty order), and Multilayered Wood Flooring from the People's 
Republic of China, 76 FR 76693 (December 8, 2011) (countervailing 
duty order), as amended by Multilayered Wood Flooring from the 
People's Republic of China: Amended Antidumping and Countervailing 
Duty Orders, 77 FR 5484 (February 3, 2012); (4) multilayered wood 
flooring with a face veneer of bamboo or composed entirely of 
bamboo; (5) plywood which has a shape or design other than a flat 
panel, with the exception of any minor processing described above; 
(6) products made entirely from bamboo and adhesives (also known as 
``solid bamboo''); and (7) Phenolic Film Faced Plyform (PFF), also 
known as Phenolic Surface Film Plywood (PSF), defined as a panel 
with an ``Exterior'' or ``Exposure 1'' bond classification as is 
defined by The Engineered Wood Association, having an opaque 
phenolic film layer with a weight equal to or greater than 90g/m\3\ 
permanently bonded on both the face and back veneers and an opaque, 
moisture resistant coating applied to the edges.
    Excluded from the scope of these investigations are wooden 
furniture goods that, at the time of importation, are fully 
assembled and are ready for their intended uses. Also excluded from 
the scope of these investigations is ``ready to assemble'' (``RTA'') 
furniture. RTA furniture is defined as furniture packaged for sale 
for ultimate purchase by an end-user that, at the time of 
importation, includes (1) all wooden components (in finished form) 
required to assemble a finished unit of furniture, (2) all accessory 
parts (e.g., screws, washers, dowels, nails, handles, knobs, 
adhesive glues) required to assemble a finished unit of furniture, 
and (3) instructions providing guidance on the assembly of a 
finished unit of furniture.
    Excluded from the scope are kitchen cabinets that, at the time 
of importation, are fully assembled and are ready for their intended 
uses. Also excluded from the scope of these investigations are RTA 
kitchen cabinets. RTA kitchen cabinets are defined as kitchen 
cabinets packaged for sale for ultimate purchase by an end-user 
that, at the time of importation, includes (1) all wooden components 
(in finished form) required to assemble a finished unit of 
cabinetry, (2) all accessory parts (e.g., screws, washers, dowels, 
nails, handles, knobs, hooks, adhesive glues) required to assemble a 
finished unit of cabinetry, and (3) instructions providing guidance 
on the assembly of a finished unit of cabinetry.
    Imports of hardwood plywood are primarily entered under the 
following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 
4412.31.2510; 4412.31.2520; 4412.31.4040; 4412.31.4050; 
4412.31.4060; 4412.31.4075; 4412.31.4080; 4412.31.5125; 
4412.31.5135; 4412.31.5155; 4412.31.5165; 4412.31.5175; 
4412.31.6000; 4412.31.9100; 4412.32.0520; 4412.32.0540; 
4412.32.0565; 4412.32.0570; 4412.32.2510; 4412.32.2525; 
4412.32.2530; 4412.32.3125; 4412.32.3135; 4412.32.3155; 
4412.32.3165; 4412.32.3175; 4412.32.3185; 4412.32.5600; 
4412.94.1030; 4412.94.1050; 4412.94.3105; 4412.94.3111; 
4412.94.3121; 4412.94.3141; 4412.94.3161; 4412.94.3175; 
4412.94.4100; 4412.99.0600; 4412.99.1020; 4412.99.1030; 
4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130; 
4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 
4412.99.4100; 4412.99.5115; and 4412.99.5710.
    Imports of hardwood plywood may also enter under HTSUS 
subheadings 4412.39.1000; 4412.39.3000; 4412.39.4011; 4412.39.4012; 
4412.39.4019; 4412.39.4031; 4412.39.4032; 4412.39.4039; 
4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 
4412.39.4062; 4412.39.4069; 4412.39.5010; 4412.39.5030; 
4412.39.5050; 4412.99.6000; 4412.99.7000; 4412.99.8000; 
4412.99.9000; 4412.10.9000; 4412.94.5100; 4412.94.9500; and 
4412.99.9500. While the HTSUS subheadings are provided for 
convenience and customs purposes, 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. Alignment
IV. Scope Comments
V. Scope of the Investigation
VI. Injury Test
VII. Application of the CVD Law to Imports From the PRC
VIII. Preliminary Determination of Critical Circumstances
IX. Subsidies Valuation
X. Benchmarks and Interest Rates
XI. Use of Facts Otherwise Available and Adverse Inferences
XII. Analysis of Programs
XIII. ITC Notification
XIV. Disclosure and Public Comment
XV. Verification
XVI. Conclusion

[FR Doc. 2017-08328 Filed 4-24-17; 8:45 am]
 BILLING CODE 3510-DS-P