[Federal Register Volume 83, Number 98 (Monday, May 21, 2018)]
[Notices]
[Pages 23422-23424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10780]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-880]


Polytetrafluoroethylene Resin From India: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of polytetrafluoroethylene resin (PTFE resin) from India. The period of 
investigation is April 1, 2016, through March 31, 2017.

DATES: Applicable May 21, 2018.

FOR FURTHER INFORMATION CONTACT: Toby Vandall, Emily Halle, or Aimee 
Phelan, AD/CVD Operations, Office I, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
1664, (202) 482-0176, or (202) 482-0697, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This final determination is made in accordance with section 705 of 
the Tariff Act of 1930, as amended (the Act). Commerce published the 
Preliminary Determination of this investigation on March 8, 2018.\1\ 
For a complete description of the events that followed the publication 
of the Preliminary Determination, see the Issues and Decision 
Memorandum issued concurrently with this notice.\2\ A list of topics 
discussed in the Issues and Decision Memorandum is included as Appendix 
II to this notice. The Issues and 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 Issues and Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov/frn/. The 
signed and electronic versions of the Issues and Decision Memorandum 
are identical in content.
---------------------------------------------------------------------------

    \1\ See Polytetrafluoroethylene Resin from India: Preliminary 
Affirmative Countervailing Duty Determination, 83 FR 9842 (March 8, 
2018) (Preliminary Determination) and accompanying Preliminary 
Decision Memorandum.
    \2\ See Memorandum, ``Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of 
Polytetrafluoroethylene Resin from India,'' dated concurrently with, 
and hereby adopted by, this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The product covered by this investigation is PTFE resin from India. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the Preliminary Scope Decision Memorandum,\3\ 
Commerce provided parties an opportunity to provide comments on all 
issues regarding product coverage, (i.e., scope). Although certain 
interested parties commented on the scope of the investigation as it 
appeared in the Initiation Notice,\4\ we preliminarily made no 
modifications to the scope of the investigation.\5\ No parties 
commented on our Preliminary Scope Decision Memorandum. As a result, in 
this final determination, we are adopting the preliminary decision not 
to modify the scope language.
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Polytetrafluoroethylene Resin from India 
and the People's Republic of China: Scope Comments Decision 
Memorandum for the Preliminary Determinations,'' dated February 28, 
2018 (Preliminary Scope Decision Memorandum).
    \4\ See Polytetrafluoroethylene Resin from India: Initiation of 
Countervailing Duty Investigation, 82 FR 49592 (October 26, 2017) 
(Initiation Notice).
    \5\ See Preliminary Scope Decision Memorandum.
---------------------------------------------------------------------------

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found 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.\6\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs submitted by the parties, are discussed in 
the Issues and Decision Memorandum. A list of the issues that parties 
raised, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix II.

[[Page 23423]]

    In making these findings, we relied, in part, on facts available 
and, because the government of India did not act to the best of its 
ability to respond to our requests for information, we 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 Issues and Decision 
Memorandum.
---------------------------------------------------------------------------

    \7\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections presented at verification, we made 
certain changes to the respondent's sales figures and subsidy rate 
calculations since the Preliminary Determination. For a discussion of 
these changes, see the Issues and Decision Memorandum and the Final 
Calculation Memorandum.\8\
---------------------------------------------------------------------------

    \8\ See Memorandum, ``Final Determination Calculations for 
Gujarat Fluorochemicals Limited,'' dated concurrently with this 
notice (Final Calculation Memorandum).
---------------------------------------------------------------------------

All-Others Rate

    Section 705(c)(5)(A) of the Act provides that in the final 
determination, Commerce 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.
    Commerce calculated an individual estimated countervailable subsidy 
rate for Gujarat Fluorochemicals Limited (GFL),\9\ the only 
individually examined exporter/producer in this investigation. Because 
the only individually calculated rate is not zero, de minimis, or based 
entirely on facts otherwise available, the countervailable subsidy rate 
calculated for GFL is the rate assigned to all-other producers and 
exporters, pursuant to section 705(c)(5)(A)(i) of the Act.
---------------------------------------------------------------------------

    \9\ As discussed in the Preliminary Determination, see 
Preliminary Decision Memorandum at 5-6, Commerce found Inox Leasing 
and Finance Limited to be cross-owned with GFL within the meaning of 
19 CFR 351.525(b)(6)(iii). No parties commented on this preliminary 
finding. Accordingly, our finding of cross-ownership remains 
unchanged for this final determination.
---------------------------------------------------------------------------

Final Determination

    Commerce determines that the following countervailable subsidy 
rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Gujarat Fluorochemicals Limited (GFL)...................            3.60
All-Others..............................................            3.60
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this final determination within five 
days of its public announcement of our final determination in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 703(d) of the Act, we will instruct U.S. 
Customs and Border Protection (CBP) to continue to suspend liquidation 
of all appropriate entries of PTFE resin from India as described in 
Appendix I to this notice, that were entered, or withdrawn from 
warehouse, for consumption, on or after March 8, 2018, the date of 
publication of the Preliminary Determination in the Federal Register. 
Furthermore, we will instruct CBP to require a cash deposit for such 
entries of merchandise at the rates shown above, pursuant to section 
705(c)(1)(B)(ii) of the Act.

U.S. International Trade Commission (ITC) Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final affirmative countervailing duty (CVD) determination. 
In addition, we are making available to the ITC all non-privileged and 
nonproprietary information related 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.
    Because the final determination in this proceeding is affirmative, 
in accordance with section 705(b) of the Act, the ITC will make its 
final determination regarding whether the domestic industry in the 
United States is materially injured, or threatened with material 
injury, by reason of imports of PTFE resin from India no later than 45 
days after our final determination. If the ITC determines that material 
injury or threat of material injury does not exist, the proceeding will 
be terminated and all cash deposits will be refunded. If the ITC 
determines that such injury does exist, Commerce will issue a CVD order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing duties on all imports of the subject merchandise 
entered, or withdrawn for warehouse, for consumption on or after the 
effective date of the suspension of liquidation, as discussed above in 
the ``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    In the event the ITC issues a final negative injury determination, 
this notice serves 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 conversion to judicial protective order, is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: May 14, 2018.
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 
polytetrafluoroethylene (PTFE) resin, including but not limited to 
granular, dispersion, or coagulated dispersion (also known as fine 
powder). PTFE is covered by the scope of this investigation whether 
filled or unfilled, whether or not modified, and whether or not 
containing co-polymer additives, pigments, or other materials. Also 
included is PTFE wet raw polymer. The chemical formula for PTFE is 
C2F4, and the Chemical Abstracts Service Registry number is 9002-84-
0.
    PTFE further processed into micropowder, having particle size 
typically ranging from 1 to 25 microns, and a melt-flow rate no less 
than 0.1 gram/10 minutes, is excluded from the scope of this 
investigation.
    PTFE is classified in the Harmonized Tariff Schedule of the 
United States (HTSUS) under subheadings 3904.61.0010 and 
3904.61.0090. Subject merchandise may also be classified under HTSUS 
subheading 3904.69.5000. Although the HTSUS subheadings and CAS 
Number are provided for convenience and Customs purposes, the 
written description of the scope is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background

[[Page 23424]]

III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Discussion of the Issues
    Comment 1: Whether Commerce is Conducting this Investigation in 
Accordance with its Obligations
    Comment 2: Commerce's Application of AFA for the GOI's Failure 
to Provide Requested Information
    Comment 3: Whether Commerce Should Use GFL's Corrections 
Presented at Verification
    Comment 4: Whether EPCGS Continues to Confer a Countervailable 
Benefit
    Comment 5: Whether the GOI Maintains a Reasonable or Effective 
Input Verification System for AAP
    Comment 6: Whether GFL Has a Reliable AAP Database
    Comment 7: Whether Commerce's Decision to find SHIS 
Countervailable is in Accordance with its Statutory Obligations
    Comment 8: Whether Commerce Should Use GFL's Minor Correction to 
the Electricity Duty Exemption for Wind Power
    Comment 9: Whether GFL Received a Countervailable Benefit from 
SGOG Preferential Water Rates
    Comment 10: Countervailability of Renewable Energy Certificates
    Comment 11: Whether a Tier-One Benchmark is Appropriate for SGOG 
Provision of Land for LTAR
    Comment 12: Whether MEIS is Tied to Non-Subject Merchandise
    Comment 13: Whether GFL Received a Benefit from Income Tax 
Exemption (80-IA) and Section 32AC (32AC) of the Income Tax Act
X. Conclusion

[FR Doc. 2018-10780 Filed 5-18-18; 8:45 am]
 BILLING CODE 3510-DS-P