[Federal Register Volume 82, Number 165 (Monday, August 28, 2017)]
[Notices]
[Pages 40748-40750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-18166]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-821]


Biodiesel From Argentina: Preliminary Affirmative Countervailing 
Duty Determination and Preliminary Affirmative Critical Circumstances 
Determination, in Part

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of biodiesel from Argentina. The period of 
investigation is January 1, 2016, through December 31, 2016.

DATES: August 28, 2017.

FOR FURTHER INFORMATION CONTACT: Elfi Blum-Page or Kathryn Wallace, AD/
CVD Operations, Office VII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-0197 or (202) 
482-6251, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on April 19, 
2017.\1\ On June 5, 2017, the Department postponed the preliminary 
determination of this investigation to August 20, 2017. However, 
because August 20, 2017, falls on a Sunday, the preliminary 
determination was postponed until August 21, 2017.\2\ 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 Biodiesel from Argentina and Indonesia: Initiation of 
Countervailing Duty Investigations, 82 FR 18423 (April 19, 2017) 
(Initiation Notice).
    \2\ See Biodiesel from Argentina and Indonesia: Postponement of 
Preliminary Determinations of Antidumping Duty Investigations, 82 FR 
25773 (June 5, 2017); see also Notice of Clarification: Application 
of ``Next Business Day'' Rule for Administrative Determination 
Deadlines Pursuant to the Tariff Act of 1930, As Amended, 70 FR 
24533 (May 10, 2005).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Biodiesel 
from Argentina,'' 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 biodiesel from 
Argentina. 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\ No interested 
party commented on the scope of the investigation as it appeared in the 
Initiation Notice.
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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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    In making these findings, the Department relied, in part, on facts 
available and, because one or more respondents did not act to the best 
of their ability to respond to the Department's requests for 
information, an adverse inference was drawn, 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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[[Page 40749]]

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 biodiesel from Argentina for LDC Argentina and Vicentin, 
but do not exist with respect to all other exporters or producers not 
individually examined. For a full description of the methodology and 
results of the Department's analysis, see the Preliminary Decision 
Memorandum.

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 
calculated individual estimated countervailable subsidy rates for LDC 
Argentina and Vicentin that are not zero, de minimis, or based entirely 
on facts otherwise available. The Department calculated the all-others' 
rate using a weighted average of the individual estimated subsidy rates 
calculated for the examined respondents using each company's publicly-
ranged values for the merchandise under consideration.\8\
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    \8\ With two respondents under examination, the Department 
normally calculates (A) a weighted average of the estimated subsidy 
rates calculated for the examined respondents; (B) a simple average 
of the estimated subsidy rates calculated for the examined 
respondents; and (C) a weighted average of the estimated subsidy 
rates calculated for the examined respondents using each company's 
publicly-ranged U.S. sale quantities for the merchandise under 
consideration. The Department then compares (B) and (C) to (A) and 
selects the rate closest to (A) as the most appropriate rate for all 
other producers and exporters. See, e.g., 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). As complete 
publicly ranged sales data was available, the Department based the 
all-others rate on the publicly ranged sales data of the mandatory 
respondents. For a complete analysis of the data, please see the 
All-Others' Rate Calculation Memorandum.
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Preliminary Determination

    The Department preliminarily determines that the following 
estimated countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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LDC Argentina S.A.\9\...................................           50.29
Vicentin S.A.I.C.\10\...................................           64.17
All-Others..............................................           57.01
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Suspension of Liquidation

    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.
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    \9\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
LDC Argentina S.A.: LDC Semillas S.A., Semillas del Rosario S.A.
    \10\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
Vicentin S.A.I.C.: Oleaginosa San Lorenzo S.A, Los Amores S.A.
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    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 LDC Argentina and 
Vicentin. 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.

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 and Request for Hearing

    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.\11\ 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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    \11\ 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. 
In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative,\12\ the ITC

[[Page 40750]]

will make its final determination within 45 days after the Department 
makes its final determination.
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    \12\ As of the signing of this notice, the petitioner (the 
National Biodiesel Fair Trade Coalition) had not requested that the 
date of the final determination of this investigation be aligned 
with the date of the final determination of the companion 
antidumping investigation, pursuant to section 705(a)(1) of the Act. 
Therefore, the current date for the final determination of this 
investigation is 75 days from the signature of this preliminary 
determination, November 6, 2017.
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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: August 21, 2017.
Gary Taverman
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive function and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The product covered by this investigation is biodiesel, which is 
a fuel comprised of mono-alkyl esters of long chain fatty acids 
derived from vegetable oils or animal fats, including biologically-
based waste oils or greases, and other biologically-based oil or fat 
sources. The investigations cover biodiesel in pure form (B100) as 
well as fuel mixtures containing at least 99 percent biodiesel by 
volume (B99). For fuel mixtures containing less than 99 percent 
biodiesel by volume, only the biodiesel component of the mixture is 
covered by the scope of the investigations.
    Biodiesel is generally produced to American Society for Testing 
and Materials International (ASTM) D6751 specifications, but it can 
also be made to other specifications. Biodiesel commonly has one of 
the following Chemical Abstracts Service (CAS) numbers, generally 
depending upon the feedstock used: 67784-80-9 (soybean oil methyl 
esters); 91051-34-2 (palm oil methyl esters); 91051-32-0 (palm 
kernel oil methyl esters); 73891-99-3 (rapeseed oil methyl esters); 
61788-61-2 (tallow methyl esters); 68990-52-3 (vegetable oil methyl 
esters); 129828-16-6 (canola oil methyl esters); 67762-26-9 
(unsaturated alkylcarboxylic acid methyl ester); or 68937-84-8 
(fatty acids, C12-C18, methyl ester).
    The B100 product subject to the investigation is currently 
classifiable under subheading 3826.00.1000 of the Harmonized Tariff 
Schedule of the United States (HTSUS), while the B99 product is 
currently classifiable under HTSUS subheading 3826.00.3000. Although 
the HTSUS subheadings, ASTM specifications, and CAS numbers are 
provided for convenience and customs purposes, the written 
description of the scope is dispositive.

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

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Preliminary Determination of Critical Circumstances
VII. Use of Facts Otherwise Available and Adverse Facts Available
VIII. Subsidies Valuation
IX. Analysis of Programs
X. Calculation of All-Others Rate
XI. ITC Notification
XII. Disclosure and Public Comment
XIII. Verification
XIV. Conclusion

[FR Doc. 2017-18166 Filed 8-25-17; 8:45 am]
 BILLING CODE 3510-DS-P