[Federal Register Volume 82, Number 209 (Tuesday, October 31, 2017)]
[Notices]
[Pages 50379-50381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-23602]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-830]


Biodiesel From Indonesia: Preliminary Affirmative Determination 
of Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that biodiesel from Indonesia is being, or is likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation (POI) is January 1, 2016, through December 31, 2016.

DATES: Effective October 31, 2017.

FOR FURTHER INFORMATION CONTACT: Myrna Lobo or Alexander Cipolla, 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) 482-2371 or (202) 
482-4956, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(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\ For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\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 accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary 
Decision Memorandum are identical in content.
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    \1\ See Biodiesel from Argentina and Indonesia: Initiation of 
Less-Than-Fair Value Investigations, 82 FR 18428 (April 19, 2017) 
(Initiation Notice).
    \2\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Biodiesel 
from Indonesia'' 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 
Indonesia. 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,\3\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ No interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. Therefore, the Department is preliminarily not 
modifying the scope language as it appeared in the Initiation Notice. 
See the scope in Appendix I to this notice.
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Initiation Notice, 82 FR at 18428-29.
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Methodology

    The Department is conducting this investigation in accordance with 
section

[[Page 50380]]

731 of the Act. The Department has calculated export prices in 
accordance with section 772(a) of the Act. Constructed export prices 
have been calculated in accordance with section 772(b) of the Act. 
Normal value (NV) is calculated in accordance with section 773 of the 
Act. In addition, the Department has relied on adverse facts available 
pursuant to sections 776(a) and (b) of the Act for PT Musim Mas (Musim 
Mas). For a full description of the methodology underlying the 
preliminary determination, see the Preliminary Decision Memorandum.

Particular Market Situation

    On July 25, 2017, the National Biodiesel Board Fair Trade Coalition 
(petitioner) filed a particular market situation (PMS) allegation with 
respect to the respondents' home market sales prices and reported costs 
of production.\5\ The petitioner asserts that a PMS exists in Indonesia 
because the Government of Indonesia (GOI) sets low mandatory prices and 
sales quotas for biodiesel in the home market, and restrains the 
exports of crude palm oil (CPO) with an export tax and levy, thereby 
distorting the respondents' reported raw material CPO costs in 
Indonesia. The petitioner argues that the Department should disregard 
the respondents' home market sales based on a finding that they are 
significantly distorted by government intervention. The petitioner also 
urges the Department to make an adjustment for the cost of CPO 
purchased from domestic suppliers to address the distorted Indonesian 
market for CPO.
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    \5\ See Petitioner's Letter, ``Biodiesel from Indonesia: 
Petitioner's Particular Market Situation Allegation Regarding 
Respondents' Home Market Sales and Costs of Produciton,'' dated July 
25, 2017.
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    The respondents and the GOI argue that the prices set by the GOI 
are based on market prices, and the total compensation each respondent 
receives for sales of biodiesel in Indonesia reflects the full market 
value of its biodiesel. The respondents also contend that their sales 
that are not controlled by the government constitute a viable home 
market. Each respondent argues that the lower prices paid for CPO are 
not enough for a PMS finding, and that they should be examined in the 
context of the concurrent countervailing duty (CVD) investigation.
    Based on the facts on the record, the Department preliminarily 
finds that the GOI's regulation of the domestic biodiesel market 
amounts to a particular market situation in Indonesia that renders the 
home market prices of Wilmar Trading PTE Ltd. (Wilmar), the only 
respondent for which we are preliminarily calculating a weighted-
average dumping margin, outside the ordinary course of trade. 
Therefore, the Department is preliminarily relying on constructed value 
(CV) as the basis for NV in this investigation for Wilmar. The 
Department also preliminarily finds that a PMS exists in Indonesia with 
regard to the cost of CPO as a component of the cost of manufacturing 
(COM) for biodiesel. Therefore, the Department has adjusted Wilmar's 
COM to account for the distorted cost of CPO. For a full description of 
the methodology underlying the PMS determination, see the Preliminary 
Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination the Department shall determine an 
estimated all-others rate for all exporters and producers not 
individually examined. This rate shall be an amount equal to the 
weighted average of the estimated weighted-average dumping margins 
established for exporters and producers individually investigated, 
excluding rates that are zero, de minimis, or determined entirely on 
facts available under section 776 of the Act.
    In this investigation, the Department preliminarily assigned a rate 
based entirely on facts available to Musim Mas. Therefore, the only 
rate that is not zero, de minimis or based entirely on facts otherwise 
available is the rate calculated for Wilmar. Consequently, the rate 
calculated for Wilmar is also assigned as the rate for all-other 
producers and exporters.

Preliminary Determination

    The Department preliminarily determines that the following 
estimated weighted-average dumping margins exist:
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    \6\ The Department preliminarily determines that Wilmar Trading 
PTE Ltd., PT Wilmar Bioenergi Indonesia, PT Wilmar Nabati Indonesia, 
and PT Multi Nabati Sulawesi are affiliated pursuant to section 
771(33)(F) of the Act and should be collapsed and treated as a 
single entity pursuant to 19 CFR 351.401(f). See Preliminary 
Decision Memorandum.

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                  Exporter or producer                        average
                                                          dumping margin
                                                             (percent)
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Wilmar Trading PTE Ltd \6\..............................           50.71
PT Musim Mas............................................           50.71
All-Others..............................................           50.71
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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 entries of subject merchandise, as described in Appendix 
I, entered, or withdrawn from warehouse, for consumption on or after 
the date of publication of this notice in the Federal Register. 
Further, 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 
equal to the estimated weighted-average dumping margin as follows: (1) 
The cash deposit rate for the respondents listed above will be equal to 
the company-specific estimated weighted-average dumping margins 
determined in this preliminary determination; (2) if the exporter is 
not a respondent identified above, but the producer is, then the cash 
deposit rate will be equal to the company-specific estimated weighted-
average dumping margin established for that producer of the subject 
merchandise; and (3) the cash deposit rate for all other producers and 
exporters will be equal to the all-others estimated weighted-average 
dumping margin.
    The Department normally adjusts cash deposits for estimated 
antidumping duties by the amount of export subsidies countervailed in a 
companion CVD proceeding in accordance with section 772(c)(1)(C), when 
CVD provisional measures are in effect. Accordingly, where the 
Department preliminarily made an affirmative determination for 
countervailable export subsidies, the Department has offset the 
estimated weighted-average dumping margin by the appropriate CVD rate. 
In the preliminary determination in the companion CVD investigation, 
the Department found no countervailable export subsidies.\7\ Therefore, 
we preliminarily determine not to adjust the cash deposit rates in the 
Preliminary Determination.
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    \7\ See Biodiesel from the Republic of Indonesia: Preliminary 
Affirmative Countervailing Duty Determination, 82 FR 40746 (August 
28, 2017), and accompanying Preliminary Decision Memorandum.
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    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

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

[[Page 50381]]

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, unless the Secretary alters the time limit. 
Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than five days after the deadline date for case 
briefs.\8\ 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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    \8\ 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.

Final Determination

    Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that 
the Department will issue the final determination within 75 days after 
the date of its preliminary determination. Accordingly, the Department 
will make its final determination no later than 75 days after the 
signature date of this preliminary determination, unless extended.

International Trade Commission Notification

    In accordance with section 733(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its preliminary 
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 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    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 19, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions 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 investigation covers 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 investigation.
    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. Period of Investigation
IV. Use of Facts Available and Adverse Facts Available
    A. Legal Authority
    B. Application of Facts Available to Musim Mas
    C. Use of Adverse Inferences
    D. Selection and Corroboration of AFA Rate
V. Affiliation and Collapsing
    A. Wilmar
VI. Discussion of the Methodology
    A. Comparisions to Fair Value
VII. Product Comparisons
VIII. Date of Sale
IX. Export Price and Constructed Price
X. Normal Value
    A. Home Market Viability
XI. Particular Market Situation
    A. Background
    B. Interested Parties' Arguments
    C. Analysis
XII. Calculation of Normal Value Based on Constructed Value
XIII. Circumstance of Sale
XIV. Adjustment to Cash Deposit Rate for Export Subsidies
XV. Currency Conversion
XVI. Conclusion

[FR Doc. 2017-23602 Filed 10-30-17; 8:45 am]
 BILLING CODE 3510-DS-P