[Federal Register Volume 83, Number 4 (Friday, January 5, 2018)]
[Notices]
[Pages 665-668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27749]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-060]


Fine Denier Polyester Staple Fiber From the People's Republic of 
China: Preliminary Affirmative Determination of Sales at Less Than Fair 
Value, Postponement of Final Determination, and Extension of 
Provisional Measures

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that fine denier polyester staple fiber (fine denier PSF) 
from the People's Republic of China (PRC) is being, or is likely to be 
sold in the United States at less than fair value (LTFV). The period of 
investigation (POI) is October 1, 2016, through March 31, 2017.

FOR FURTHER INFORMATION CONTACT: Edythe Artman or John McGowan, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3931 or (202) 482-3019, 
respectively.

DATES: Applicable January 5, 2018.

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 June 28, 
2017.\1\ On October 24, 2017, the Department postponed the preliminary 
determination of this investigation and the revised deadline is now 
December 18, 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 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 found 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 Fine Denier Polyester Staple Fiber From the People's 
Republic of China, India, the Republic of Korea, Taiwan, and the 
Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 29023 (June 27, 2017) (Initiation Notice).
    \2\ See Fine Denier Polyester Staple Fiber from the People's 
Republic of China, India, the Republic of Korea, and Taiwan: 
Postponement of Preliminary Determinations in Less-Than-Fair-Value 
Investigations, 82 FR 49178 (October 24, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair Value Investigation of Fine 
Denier Polyester Staple Fiber 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 fine denier PSF 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. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\6\ The 
Department is preliminarily modifying the scope language as it appeared 
in the Initiation Notice. See the revised scope in Appendix I to this 
notice.
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    \4\ See Antidumping Duties; Countervailing Duties: Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Fine Denier Polyester Staple Fiber from 
the Republic of Korea: Scope Comments Decision Memorandum for the 
Preliminary Determination'' (Preliminary Scope Decision Memorandum), 
dated December 8, 2017.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. The Department has calculated export prices and 
constructed export prices in accordance with section 772(a) of the Act. 
Because the PRC is a non-market economy within the meaning of section 
771(18) of the Act, normal value (NV) was calculated in accordance with 
section 773(c) of the

[[Page 666]]

Act.\7\ For a full description of the methodology underlying the 
preliminary determination, see the Preliminary Decision Memorandum.
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    \7\ Jiangyin Hailun Chemical Fiber Co., Ltd. (Hailun), and 
Jiangyin Huahong Chemical Fiber Co., Ltd. (Huahong), are the 
mandatory respondents in this investigation.
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Combination Rates

    In the Initiation Notice,\8\ the Department stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\9\
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    \8\ See Initiation Notice, 82 FR at 29028.
    \9\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
the Department's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    The Department preliminarily determines that the following 
estimated weighted-average dumping margins exist:

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                                                                                     Weighted-     Cash deposit
                                                                                      average      adjusted for
                      Producer                                 Exporter               margin      subsidy offset
                                                                                     (percent)       (percent)
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Jiangyin Hailun Chemical Fiber Co. Ltd./Jiangyin      Jiangyin Hailun Chemical            181.46          170.92
 Xinlun Chemical Fiber Co., Ltd./Jiangyin Yunlun       Fiber Co. Ltd.
 Chemical Fiber Co., Ltd./Jiangyin Bolun Chemical
 Fiber Co., Ltd./Jiangyin Fenghua Synthetic Fiber
 Co., Ltd./Jiangyin Huamei Special Fiber Co., Ltd./
 Jiangyin Huasheng Polymerization Co., Ltd./Jiangyin
 Huayi Polymerization Co., Ltd./Jiangyin Huaxing
 Synthetic Co., Ltd./Jiangyin Xingsheng Plastic Co.,
 Ltd \10\.
Jiangyin Huahong Chemical Fiber Co., Ltd./Jiangyin    Jiangyin Huahong Chemical            63.26           52.66
 Huakai Polyester Co., Ltd./Jiangyin Hongkai           Fiber Co., Ltd.
 Chemical Fiber Co., Ltd \11\.
Hangzhou Best Chemical Fiber Co., Ltd...............  Hangzhou Best Chemical              122.36          111.79
                                                       Fiber Co., Ltd.
Cixi Jiangnan Chemical Fiber Co. Ltd................  Cixi Jiangnan Chemical              122.36          111.79
                                                       Fiber Co. Ltd.
Jiangsu Xinsu Chemical Fiber Co., Ltd...............  Jiangsu Xinsu Chemical              122.36          111.79
                                                       Fiber Co., Ltd.
Jiangyin Jinyan Chemical Fiber Co., Ltd./Jiangsui     Jiangyin Jinyan Chemical            122.36          111.79
 Xiang He Tai Fiber Technology Co., Ltd.               Fiber Co., Ltd.
Jiangsu Hengze Composite Materials Technology Co.,    Jiangyin Yangxi                     122.36          111.79
 Ltd./Chuzhou Prosperity Enviromental Protection       International Trade Co.,
 Color Fiber Co., Ltd./Jiangsu Xiang He Tai Fiber      Ltd.
 Technology Co., Ltd./Jiangyin Hengfeng Chemical
 Fiber Co., Ltd./Jiangyin Shunze Chemical Fiber Co.,
 Ltd.
Zhejiang Jinfuchun Industrial Co., Ltd..............  Zhejiang Jinfuchun                  122.36          111.79
                                                       Industrial Co., Ltd.
Nanyang Textile Co., Ltd............................  Nanyang Textile Co., Ltd..          122.36          111.79
Ningbo Dafa Chemical Fiber Co. Ltd..................  Ningbo Dafa Chemical Fiber          122.36          111.79
                                                       Co. Ltd.
Zhaoqing Tifo New Fibre Co., Ltd....................  Zhaoqing Tifo New Fibre             122.36          111.79
                                                       Co., Ltd.
Jiangyin Yueda Chemical Fiber Limited Company/        Unifi Textiles (Suzhou)             122.36          111.79
 Hangzhou BenMa Chemical and Spinning Company Ltd./    Co., Ltd.
 Yizheng Chemical Fiber Limited Liability Company.
Yuyao Dafa Chemical Fiber Co., Ltd..................  Yuyao Dafa Chemical Fiber           122.36          111.79
                                                       Co., Ltd.
Jiangyin Jindun Chemical Fiber Co., Ltd.............  Zhangjiagang City Hongtuo           122.36          111.79
                                                       Chemical Fiber Co., Ltd.
Zhejiang Huashun Technology Co., Ltd................  Zhejiang Linan Foreign              122.36          111.79
                                                       Trade Co., Ltd.
Suzhou Zhengbang Chemical Fiber Co., Ltd............  Suzhou Zhengbang Chemical           122.36          111.79
                                                       Fiber Co., Ltd.
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PRC-Wide Entity.................................................................          181.46          170.92
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Suspension of Liquidation
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    \10\ The Department preliminarily determines that the following 
companies are a single entity for dumping purposes: Hailun; Jiangyin 
Xinlun Chemical Fiber Co., Ltd.; Jiangyin Yunlun Chemical Fiber Co., 
Ltd.; Jiangyin Bolun Chemical Fiber Co., Ltd.; Jiangyin Fenghua 
Synthetic Fiber Co., Ltd.; Jiangyin Huamei Special Fiber Co., Ltd.; 
Jiangyin Huasheng Polymerization Co., Ltd.; Jiangyin Huayi 
Polymerization Co., Ltd.; Jiangyin Huaxing Synthetic Co., Ltd.; 
Jiangyin Xingsheng Plastic Co., Ltd. See Preliminary Decision 
Memorandum.
    \11\ The Department preliminarily determines that Huahong, 
Jiangyin Huakai Polyester Co., Ltd., and Jiangyin Hongkai Chemical 
Fiber Co., Ltd., are a single entity for dumping purposes. See 
Preliminary Decision Memorandum.
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    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

[[Page 667]]

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 \12\ equal to the weighted-average amount by which NV 
exceeds U.S. price, adjusted where appropriate for export 
subsidies,\13\ as follows: (1) For the producer/exporter combinations 
listed in the above table, the cash deposit rate for the exporter/
producer combinations listed in the table above will be the rate the 
Department determines in this preliminary determination; (2) for all 
combinations of PRC exporters/producers of merchandise under 
consideration that have not established eligibility for their own 
separate rates, the cash-deposit rate will be the cash deposit rate 
established for the PRC-wide entity; and (3) for all non-PRC exporters 
of merchandise under consideration which have not received their own 
separate rate above, the cash-deposit rate will be the cash deposit 
rate applicable to the PRC exporter/producer combination that supplied 
that non-PRC exporter.
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    \12\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
    \13\ See section 772(c)(1)(C) of the Act. Unlike in 
administrative reviews, the Department does not calculate the 
adjustment for export subsidies in investigations in the margin 
calculation program, but in the cash deposit instructions issued to 
CBP. See, e.g., Notice of Final Determination of Sales at Less Than 
Fair Value, and Negative Determination of Critical Circumstances: 
Certain Lined Paper Products from India, 71 FR 45012 (August 8, 
2006), and accompanying Issues and Decision Memorandum at Comment 1.
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    To determine the cash deposit rate, the Department normally adjusts 
the estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion CVD 
proceeding when CVD provisional measures are in effect. Accordingly, 
where the Department has made a preliminary affirmative determination 
for domestic subsidy pass-through or export subsidies, the Department 
has offset the calculated estimated weighted-average dumping margin by 
the appropriate rate(s). Rates adjusted for export subsidies may be 
found in the Preliminary Determination section's chart of estimated 
weighted-average dumping margins above.
    As stated previously, we will adjust cash deposit rates by the 
amount of export subsidies, where appropriate. In the companion CVD 
investigation, Hailun was also a mandatory respondent and received a 
calculated export subsidy rate of 10.54 percent, and, thus, we will 
offset the calculated rate for Hailun by 10.54 percent. Huahong was 
also a mandatory responding in the companion CVD investigation and 
received a calculated export subsidy rate of 10.60 percent, and, thus, 
we will offset the calculated rate for the Huahong by 10.60 percent. 
For the separate rate companies, which were not mandatory respondents 
in the companion CVD investigation, we will offset the calculated rate 
for each of the companies by 10.57 percent, the average of the export 
subsidy rates for the two mandatory respondents in the companion CVD 
investigation. Finally, we are adjusting the cash deposit rate for the 
PRC-wide entity by 10.54 percent, the lowest adjustment for any party 
in the companion CVD investigation.\14\
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    \14\ See Preliminary Decision Memorandum.
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    Pursuant to 777A(f) of the Act, we also intend to adjust 
preliminary cash deposit rates for estimated domestic subsidy pass-
through, where appropriate. We will make these adjustments after 
analysis of responses to a double-remedy questionnaire, which we issued 
to Hailun and Huahong on December 12, 2017.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, the Department will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margins calculated in this preliminary determination unadjusted for 
export subsidies at the time the CVD provisional measures expire.
    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).

Verification

    As provided in section 782(i) of the Act, the Department intends to 
verify 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 final verification report is issued in 
this proceeding, 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 for case briefs.\15\ 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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    \15\ 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 for a hearing 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.
    All documents must be filed electronically using ACCESS. An 
electronically-filed request must be received successfully in its 
entirety by ACCESS no later than 5:00 p.m. Eastern Time on the 
established due date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of the Department's regulations 
requires that a request by exporters for postponement of the final 
antidumping determination be accompanied by a request for extension of 
provisional measures from a four-month period to a period not more than 
six months in duration.

[[Page 668]]

    On November 10 and December 12, 2017, the petitioners and the 
respondents, respectively, requested that the Department postpone the 
final determination and extend provisional measures from four months to 
six months.\16\ In accordance with section 735(a)(2)(A) of the Act and 
19 CFR 351.210(b)(2)(ii), because: (1) Our preliminary determination is 
affirmative; (2) the requesting exporter accounts for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, the Department is postponing the final 
determination and extending the provisional measures from a four-month 
period to a period not greater than six months. Accordingly, we will 
make our final determination no later than 135 days after the date of 
publication of this preliminary determination.\17\
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    \16\ See Letter from the petitioners, ``Fine Denier Polyester 
Staple Fiber from China, India, Korea and Taiwan--Petitioners' 
Request to Extend the Antidumping Duty Final Determinations'', dated 
November 10, 2017; Letter from the respondents, ``Fine Denier 
Polyester Staple Fiber from the People's Republic of China--Request 
for Postponement of Final Determination,'' dated December 12, 2017, 
and People's Republic of China--Petitioners' Request to Extend Final 
Determination,'' dated September 11, 2017.
    \17\ See also 19 CFR 351.210(e).
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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: December 18, 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 merchandise covered by this investigation is f[igrave]ne 
denier polyester staple fiber (fine denier PSF), not carded, combed, 
or pre-opened, measuring less than 3.3 decitex (3 denier) in 
diameter. The scope covers all fine denier PSF, whether coated or 
uncoated. The following products are excluded from the scope:
    (1) PSF equal to or greater than 3.3 decitex (more than 3 
denier, inclusive) currently classifiable under Harmonized Tariff 
Schedule of the United States (HTSUS) subheadings 5503.20.0045 and 
5503.20.0065.
    (2) Low-melt PSF defined as a bi-component polyester fiber 
having a polyester fiber component that melts at a lower temperature 
than the other polyester fiber component, which is currently 
classifiable under HTSUS subheading 5503.20.0015.
    Fine denier PSF is classifiable under the HTSUS subheading 
5503.20.0025. Although 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. Period of Investigation
IV. Postponement of Preliminary Determination
V. Postponement of Final Determination and Extension of Provisional 
Measures
VI. Scope of the Investigation
VII. Scope Comments
VIII. Discussion of Methodology
    Non-Market Economy Country
    Surrogate Country and Surrogate Values
    1. Economic Comparability
    2. Significant Producer of Comparable Merchandise
    3. Data Availability
    Separate Rates
    1. Absence of De Jure Control
    2. Absence of De Facto Control
    3. Companies Not Receiving a Separate Rate
    Combination Rates
    Collapsing and Affiliation
    The PRC-Wide Entity
    Application of Facts Available and Adverse Inferences
    1. Use of Facts Available
    2. Application of Facts Available with an Adverse Inference
    3. Selection and Corroboration of the AFA Rate
    Date of Sale
    Comparisons to Fair Value
    1. Export Price
    Normal Value
    Factor Valuation Methodology
    Determination of the Comparison Method
IX. Currency Conversion
X. Adjustment Under Section 777A(f) of the Act
XI. Adjustments for Countervailable Export Subsidies
XII. Disclosure and Public Comment
XIII. Verification
XIV. Conclusion

[FR Doc. 2017-27749 Filed 1-4-18; 8:45 am]
 BILLING CODE 3510-DS-P