[Federal Register Volume 83, Number 223 (Monday, November 19, 2018)]
[Notices]
[Pages 58223-58228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24953]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-885, A-570-097]


Polyester Textured Yarn From India and the People's Republic of 
China: Initiation of Less-Than-Fair-Value Investigations

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

DATES: Applicable November 7, 2018.

FOR FURTHER INFORMATION CONTACT: Kate Johnson at (202) 482-4929 
(India), or Irene Gorelik at (202) 482-6905 (the People's Republic of 
China (China)), AD/CVD Operations, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petitions

    On October 18, 2018, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) Petitions concerning imports of 
polyester textured yarn (yarn) from India and China, filed in proper 
form on behalf of Unifi Manufacturing, Inc. and Nan Ya Plastics 
Corporation, America (the petitioners), domestic producers of yarn.\1\ 
The AD Petitions were accompanied by countervailing duty (CVD) 
Petitions concerning imports of yarn from India and China.\2\
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    \1\ See Petitioners' Letter, ``Polyester Textured Yarn from the 
People's Republic of China and India--Petition for the Imposition of 
Antidumping and Countervailing Duties,'' dated October 18, 2018 
(Petitions).
    \2\ See Volumes III and V of the Petitions.
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    During the period October 22 through November 1, 2018, we requested 
information from the petitioners pertaining to the scope of the 
investigations and certain allegations contained within the 
Petitions.\3\ During the period October 26 through November 2, 2018, 
the petitioners supplemented the record in response to these 
requests.\4\
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    \3\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Polyester 
Textured Yarn from the People's Republic of China and India: 
Supplemental Questions,'' ``Petition for the Imposition of 
Antidumping Duties on Imports of Polyester Textured Yarn from India: 
Supplemental Questions,'' and ``Petition for the Imposition of 
Antidumping Duties on Imports of Polyester Textured Yarn from the 
People's Republic of China: Supplemental Questions,'' dated October 
22, 2018. See also ``Petition for the Imposition of Antidumping 
Duties on Imports of Polyester Textured Yarn from India: 
Supplemental Questions,'' dated October 29, 2018, ``Petitions for 
the Imposition of Antidumping and Countervailing Duties on Imports 
of Polyester Textured Yarn from the People's Republic of China and 
India: Phone Call with Counsel to the Petitioners,'' dated October 
29, 2018, and ``Petitions for the Imposition of Antidumping and 
Countervailing Duties on Imports of Polyester Textured Yarn from the 
People's Republic of China and India: Supplemental Questionnaire 
Regarding Proposed Scope,'' dated November 1, 2018.
    \4\ See the Petitioners' Letters, ``Polyester Textured Yarn from 
India and the People's Republic of China--Petitioners' Supplement to 
Volume I Relating to General Issues,'' (General Issues Supplement), 
and ``Polyester Textured Yarn from India--Petitioners' Supplement 
for Volume IV Regarding India Antidumping Duties,'' dated October 
26, 2018. See also Polyester Textured Yarn from the People's 
Republic of China; Petitioners' Supplemental for Volume II Regarding 
China Antidumping Duties'' (China AD Supplemental), dated October 
29, 2018, ``Polyester Textured Yarn from India--Petitioners' 2nd 
Supplemental Response for Volume IV Regarding India Antidumping 
Duties,'' dated October 30, 2018, ``Polyester Textured Yarn from 
India and the People's Republic of China--Petitioners' Supplement to 
Volume I Relating to General Issues,'' dated October 31, 2018 
(Second General Issues Supplement), and ``Polyester Textured Yarn 
from the People's Republic of China and India--Petitioners' Response 
to Commerce's Question Regarding Scope Language,'' dated November 2, 
2018.

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[[Page 58224]]

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that imports of yarn from 
India and China are being, or are likely to be, sold in the United 
States at less than fair value within the meaning of section 731 of the 
Act, and that such imports are materially injuring, or threatening 
material injury to, the domestic industry producing yarn in the United 
States. Consistent with section 732(b)(1) of the Act, the Petitions are 
accompanied by information reasonably available to the petitioners 
supporting their allegations.
    Commerce finds that the petitioners filed the Petitions on behalf 
of the domestic industry because the petitioners are interested parties 
as defined in section 771(9)(C) of the Act. Commerce also finds that 
the petitioners demonstrated sufficient industry support with respect 
to the initiation of the AD investigations that the petitioners are 
requesting.\5\
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    \5\ See the ``Determination of Industry Support for the 
Petition'' section, infra.
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Period of Investigations

    Because the Petitions were filed on October 18, 2018, pursuant to 
19 CFR 351.204(b)(1), the period of investigation (POI) for the India 
investigation is October 1, 2017, through September 30, 2018. Because 
China is a non-market economy (NME) country, pursuant to 19 CFR 
351.204(b)(1), the POI is April 1, 2018, through September 30, 2018.

Scope of the Investigations

    The product covered by these investigations is yarn from India and 
China. For a full description of the scope of these investigations, see 
the Appendix to this notice.

Comments on Scope of the Investigations

    During our review of the Petitions, we contacted the petitioners 
regarding the proposed scope to ensure that the scope language in the 
Petitions is an accurate reflection of the product for which the 
domestic industry is seeking relief.\6\ As a result, the scope of the 
Petitions was modified to clarify the description of merchandise 
covered by the Petitions. The description of the merchandise covered by 
these investigations, as described in the Appendix to this notice, 
reflects these clarifications.
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    \6\ See General Issues Supplement. See also Memorandum, 
``Petitions for the Imposition of Antidumping and Countervailing 
Duties on Imports of Polyester Textured Yarn from the People's 
Republic of China and India: Phone Call with Counsel to the 
Petitioners,'' dated October 29, 2018.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (scope).\7\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information,\8\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on November 27, 2018, which is 20 calendar days from the signature 
date of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on December 7, 2018, which 
is 10 calendar days from the initial comments deadline.\9\
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    \7\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \8\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \9\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigations be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigations may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must be filed 
on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\10\ An electronically 
filed document must be received successfully in its entirety by the 
time and date it is due. Documents exempted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230, and stamped with the date and time of receipt by the applicable 
deadlines.
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    \10\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of yarn to be reported in 
response to Commerce's AD questionnaires. This information will be used 
to identify the key physical characteristics of the subject merchandise 
in order to report the relevant factors of production (FOPs) 
accurately, as well as to develop appropriate product-comparison 
criteria.
    Interested parties may provide any factual information or comments 
that they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics, and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe yarn, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, Commerce attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on November 27, 
2018, which is 20 calendar days from the signature date of this 
notice.\11\ Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on December 7, 2018. All 
comments and submissions to Commerce must be filed electronically using 
ACCESS, as explained above, on

[[Page 58225]]

the record of each of the AD investigations.
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    \11\ See 19 CFR 351.303(b).
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Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\12\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\13\
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    \12\ See section 771(10) of the Act.
    \13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioners do not 
offer a definition of the domestic like product distinct from the scope 
of the Petitions.\14\ Based on our analysis of the information 
submitted on the record, we have determined that yarn, as defined in 
the scope, constitutes a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\15\
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    \14\ See Volume I of the Petitions, at 11-12; see also General 
Issues Supplement, at 4-5 and Exhibit GEN-Supp-2.
    \15\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Antidumping Duty Investigation Initiation Checklist: Polyester 
Textured Yarn from the People's Republic of China (China AD 
Initiation Checklist), at Attachment II, Analysis of Industry 
Support for the Antidumping and Countervailing Duty Petitions 
Covering Polyester Textured Yarn from the People's Republic of China 
and India (Attachment II); see also Antidumping Duty Investigation 
Initiation Checklist: Polyester Textured Yarn from India (India AD 
Initiation Checklist), at Attachment II. These checklists are dated 
concurrently with, and hereby adopted by, this notice and on file 
electronically via ACCESS. Access to documents filed via ACCESS is 
also available in the Central Records Unit, Room B8024 of the main 
Department of Commerce building.
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    In determining whether the petitioners have standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the Appendix to 
this notice. To establish industry support, the petitioners provided 
their own production of the domestic like product in 2017, as well as 
the 2017 production of companies that support the Petitions.\16\ The 
petitioners compared the production of the supporters of the Petitions 
to the estimated total production of the domestic like product for the 
entire domestic industry.\17\ We relied on data provided by the 
petitioners for purposes of measuring industry support.\18\
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    \16\ See Volume I of the Petitions, at 4-5 and Exhibit GEN-2.
    \17\ Id.; see also General Issues Supplement, at Exhibit GEN-
Supp-3.
    \18\ Id. For further discussion, see China AD Initiation 
Checklist, at Attachment II; and India AD Initiation Checklist, at 
Attachment II.
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    Our review of the data provided in the Petitions, the General 
Issues Supplement, and other information readily available to Commerce 
indicates that the petitioners have established industry support for 
the Petition.\19\ First, the Petitions established support from 
domestic producers (or workers) accounting for more than 50 percent of 
the total production of the domestic like product and, as such, 
Commerce is not required to take further action in order to evaluate 
industry support (e.g., polling).\20\ Second, the domestic producers 
(or workers) have met the statutory criteria for industry support under 
section 732(c)(4)(A)(i) of the Act because the domestic producers (or 
workers) who support the Petitions account for at least 25 percent of 
the total production of the domestic like product.\21\ Finally, the 
domestic producers (or workers) have met the statutory criteria for 
industry support under section 732(c)(4)(A)(ii) of the Act because the 
domestic producers (or workers) who support the Petitions account for 
more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the Petitions.\22\ Accordingly, Commerce determines that 
the Petitions were filed on behalf of the domestic industry within the 
meaning of section 732(b)(1) of the Act.
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    \19\ See China AD Initiation Checklist, at Attachment II; and 
India AD Initiation Checklist, at Attachment II.
    \20\ See section 732(c)(4)(D) of the Act; see also China AD 
Initiation Checklist, at Attachment II; and India AD Initiation 
Checklist, at Attachment II.
    \21\ See China AD Initiation Checklist, at Attachment II; and 
India AD Initiation Checklist, at Attachment II.
    \22\ Id.
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    Commerce finds that the petitioners filed the Petitions on behalf 
of the domestic industry because they are interested parties as defined 
in section 771(9)(C) of the Act, and they have demonstrated sufficient 
industry support with respect to the AD investigations that they are 
requesting that Commerce initiate.\23\
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    \23\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioners allege that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (NV). In addition, the 
petitioners allege that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\24\
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    \24\ See Volume I of the Petitions, at 13-14 and Exhibit GEN-8.
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    The petitioners contend that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression and 
suppression; declines in the domestic industry's production, capacity 
utilization, and

[[Page 58226]]

U.S. commercial shipments; decline in the domestic industry's financial 
performance; lost sales and revenues; and closures of U.S. production 
facilities.\25\ We have assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, 
causation, as well as cumulation, and we have determined that these 
allegations are properly supported by adequate evidence, and meet the 
statutory requirements for initiation.\26\
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    \25\ Id. at 10, 13-26 and Exhibits GEN-6 and GEN-8 through GEN-
13; see also General Issues Supplement, at 6-7 and Exhibits GEN-
Supp-4 and GEN-Supp-5.
    \26\ See China AD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Polyester Textured Yarn from the People's Republic of China 
and India (Attachment III); see also India AD Initiation Checklist, 
at Attachment III.
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Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value that are the basis for Commerce's decision to initiate 
AD investigations of imports of yarn from India and China. The sources 
of data for the deductions and adjustments relating to U.S. price and 
NV are discussed in greater detail in the country-specific AD 
Initiation Checklists.

Export Price

    For both India and China, the petitioner based export price (EP) on 
price quotes for yarn produced in, and exported from, India and China 
and offered for sale in the United States.\27\ Where appropriate, the 
petitioners made deductions from U.S. price for foreign brokerage and 
handling, foreign inland freight, ocean freight, marine insurance, U.S. 
inland freight, U.S. brokerage and handling, U.S. customs fees, and 
unrebated value added tax, consistent with the terms of sale as 
applicable.\28\
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    \27\ See China AD Initiation Checklist and India AD Initiation 
Checklist.
    \28\ See China AD Initiation Checklist and India AD Initiation 
Checklist.
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Normal Value

    For India, the petitioners based NV on home market prices obtained 
through market research for yarn produced in and sold, or offered for 
sale, in India within the proposed POI.\29\ The petitioners calculated 
net home market prices, adjusted as appropriate for rebates.\30\ The 
petitioners provided information indicating that the prices were below 
the cost of production (COP) and, therefore, the petitioners also 
calculated NV based on constructed value (CV).\31\ For further 
discussion of COP and NV based on CV, see the section ``Normal Value 
Based on Constructed Value'' below.\32\
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    \29\ See India AD Initiation Checklist.
    \30\ Id.
    \31\ Id.
    \32\ In accordance with section 773(b)(2) of the Act, for this 
investigation, Commerce will request information necessary to 
calculate the CV and cost of production (COP) to determine whether 
there are reasonable grounds to believe or suspect that sales of the 
foreign like product have been made at prices that represent less 
than the COP of the product.
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    With respect to China, Commerce considers China to be an NME 
country.\33\ In accordance with section 771(18)(C)(i) of the Act, any 
determination that a foreign country is an NME country shall remain in 
effect until revoked by Commerce. Therefore, we continue to treat China 
as an NME country for purposes of the initiation of this investigation. 
Accordingly, NV in China is appropriately based on FOPs valued in a 
surrogate market economy country, in accordance with section 773(c) of 
the Act.\34\
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    \33\ See Antidumping Duty Investigation of Certain Aluminum Foil 
from the People's Republic of China: Affirmative Preliminary 
Determination of Sales at Less-Than-Fair Value and Postponement of 
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and 
accompanying decision memorandum, China's Status as a Non-Market 
Economy, unchanged in Certain Aluminum Foil from the People's 
Republic of China: Final Determination of Sales at Less Than Fair 
Value, 83 FR 9282 (March 5, 2018).
    \34\ See China AD Initiation Checklist.
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    The petitioners claim that Malaysia is an appropriate surrogate 
country for China because it is a market economy country that is at a 
level of economic development comparable to that of China, it is a 
significant producer of identical merchandise, and data for Malaysia 
for valuing FOPs are available and reliable.\35\ The petitioners 
provided publicly available information from Malaysia to value all 
FOPs.\36\ Therefore, based on the information provided by the 
petitioners, we determine that it is appropriate to use Malaysia as the 
primary surrogate country for initiation purposes.
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    \35\ See Volume II of the Petitions, at 6-8 and Exhibit AD-PRC-
3.
    \36\ See Volume II of the Petitions, at 9-11; see also China AD 
Supplemental at 5-6 and Exhibit AD-PRC-Supp-4-B.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Based on their assertion that information regarding the FOPs and 
volume of inputs consumed by Chinese producers/exporters of yarn was 
not reasonably available, the petitioners used their own consumption 
rates for yarn to estimate the Chinese manufacturers' FOPs.\37\ The 
petitioners valued the estimated FOPs using surrogate values from 
Malaysia reported in Malaysian ringgit and converted to U.S. 
dollars.\38\ The petitioners calculated factory overhead, selling, 
general and administrative (SG&A) expenses, and profit based on the 
experience of a Malaysian producer of yarn.\39\
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    \37\ See China AD Initiation Checklist.
    \38\ Id.
    \39\ Id.
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Normal Value Based on Constructed Value

    As noted above, for India, the petitioners obtained home market 
prices but demonstrated that these prices were below the COP during the 
POI; therefore, the petitioners also based NV on CV pursuant to section 
773(a)(4) of the Act. Pursuant to section 773(e) of the Act, CV 
consists of the cost of manufacturing (COM), SG&A expenses, financial 
expenses, profit, and packing expenses.
    The petitioners calculated the COM based on two domestic producers' 
input FOPs and usage rates for raw materials, labor, energy, and 
packing.\40\ The petitioners valued the input FOPs using publicly 
available data on costs specific to India during the proposed POI. 
Specifically, the petitioners based the prices for raw material and 
packing inputs on publicly available import data for India.\41\ The 
petitioners valued labor and energy costs using publicly available 
sources for India.\42\ The petitioners calculated factory overhead, 
SG&A, financial expenses, and profit for India based on the experience 
of an Indian producer of yarn.\43\
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    \40\ See India AD Initiation Checklist.
    \41\ Id.
    \42\ Id.
    \43\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioners, there is reason to 
believe that imports of yarn from India and China are being, or are 
likely to be, sold in the United States at less than fair value. Based 
on comparisons of EP to NV in accordance with sections 772 and 773 of 
the Act, the estimated dumping margins for yarn are as follows: (1)

[[Page 58227]]

India--35.14 to 202.93 percent; \44\ and (2) China--74.98 and 77.15 
percent.\45\
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    \44\ See India AD Initiation Checklist.
    \45\ See China AD Initiation Checklist.
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Initiation of Less-Than-Fair-Value Investigations

    Based upon the examination of the Petitions, we find that the 
Petitions meet the requirements of section 732 of the Act. Therefore, 
we are initiating AD investigations to determine whether imports of 
yarn from India and China are being, or are likely to be, sold in the 
United States at less than fair value. In accordance with section 
733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we 
will make our preliminary determinations no later than 140 days after 
the date of this initiation.

Respondent Selection

    The petitioners identified 34 producers/exporters as accounting for 
the majority of exports of yarn to the United States from India.\46\ 
Following standard practice in AD investigations involving market 
economy countries, in the event Commerce determines that the number of 
companies is large and it cannot individually examine each company 
based upon Commerce's resources, where appropriate, Commerce intends to 
select respondents based on U.S. Customs and Border Protection (CBP) 
data for U.S. imports of yarn from India during the POI under the 
appropriate Harmonized Tariff Schedule of the United States numbers 
listed in the ``Scope of the Investigations,'' in the Appendix.
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    \46\ See Second General Issues Supplement, at Exhibit GEN-SUPP-
5.
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    We also intend to release the CBP data under Administrative 
Protective Order (APO) to all parties with access to information 
protected by APO on the record within five business days of publication 
of this Federal Register notice. Comments regarding the CBP data and 
respondent selection should be submitted seven calendar days after the 
placement of the CBP data on the record of the India AD investigation. 
Parties wishing to submit rebuttal comments should submit those 
comments five calendar days after the deadline for the initial 
comments. Interested parties must submit applications for disclosure 
under APO in accordance with 19 CFR 351.305(b). Instructions for filing 
such applications may be found on Commerce's website at http://enforcement.trade.gov/apo.
    Comments must be filed electronically using ACCESS. An 
electronically-filed document must be received successfully, in its 
entirety, by Commerce's electronic records system, ACCESS, no later 
than 5:00 p.m. ET on the dates noted above. We intend to finalize our 
decisions regarding respondent selection within 20 days of publication 
of this notice.
    The petitioners identified 51 producers/exporters as accounting for 
the majority of exports of yarn to the United States from China.\47\ In 
accordance with our standard practice for respondent selection in AD 
cases involving NME countries, we intend to issue quantity and value 
(Q&V) questionnaires to producers/exporters of merchandise subject to 
this investigation. In the event Commerce determines that it cannot 
individually examine each company, where appropriate, Commerce intends 
to select mandatory respondents based on the responses received to its 
Q&V questionnaires. Commerce will request Q&V information from known 
exporters and producers identified with complete contact information in 
the Petition.
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    \47\ Id.
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    Exporters and producers of yarn from China that do not receive Q&V 
questionnaires by mail may still submit a response to the Q&V 
questionnaire and can obtain a copy of the Q&V questionnaire from the 
Enforcement and Compliance website, at http://trade.gov/enforcement/news.asp. Responses to the Q&V questionnaire must be submitted by the 
relevant Chinese exporters/producers no later than 5:00 p.m. ET on 
November 21, 2018, which is two weeks from the signature date of this 
notice. All Q&V questionnaire responses must be filed electronically 
via ACCESS.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate application.\48\ 
The specific requirements for submitting a separate-rate application in 
this investigation are provided in the application itself, which is 
available on Commerce's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate application will be due 30 days 
after publication of this initiation notice.\49\ Exporters and 
producers who submit a separate-rate application and have been selected 
as mandatory respondents will only be eligible for consideration for 
separate-rate status if they respond to all parts of Commerce's AD 
questionnaire as mandatory respondents. Commerce requires that 
companies from China submit a response to both the Q&V questionnaire 
and the separate-rate application by the respective deadlines in order 
to receive consideration for separate-rate status. Companies not filing 
a timely Q&V questionnaire response will not receive separate-rate 
consideration.
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    \48\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving Non-Market Economy Countries (April 5, 2005), available at 
http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 
05.1).
    \49\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

    {w{time} hile continuing the practice of assigning separate 
rates only to exporters, all separate rates that the Department will 
now assign in its NME Investigation will be specific to those 
producers that supplied the exporter during the period of 
investigation. Note, however, that one rate is calculated for the 
exporter and all of the producers which supplied subject merchandise 
to it during the period of investigation. This practice applies both 
to mandatory respondents receiving an individually calculated 
separate rate as well as the pool of non-investigated firms 
receiving the weighted-average of the individually calculated rates. 
This practice is referred to as the application of ``combination 
rates'' because such rates apply to specific combinations of 
exporters and one or more producers. The cash-deposit rate assigned 
to an exporter will apply only to merchandise both exported by the 
firm in question and produced by a firm that supplied the exporter 
during the period of investigation.\50\
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    \50\ See Policy Bulletin 05.1 at 6 {emphasis added{time} .
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Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the Governments of India and China via ACCESS. To the 
extent practicable, we will attempt to provide a copy of the public 
version of the Petitions to each exporter named in the Petitions, as 
provided under 19 CFR 351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of yarn from India and/or China are materially 
injuring or threatening

[[Page 58228]]

material injury to a U.S. industry.\51\ A negative ITC determination 
for any country will result in the investigation being terminated with 
respect to that country.\52\ Otherwise, the investigations will proceed 
according to statutory and regulatory time limits.
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    \51\ See section 733(a) of the Act.
    \52\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). 19 CFR 351.301(b) requires any 
party, when submitting factual information, to specify under which 
subsection of 19 CFR 351.102(b)(21) the information is being submitted 
\53\ and, if the information is submitted to rebut, clarify, or correct 
factual information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\54\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Interested parties should review the 
regulations prior to submitting factual information in these 
investigations.
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    \53\ See 19 CFR 351.301(b).
    \54\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 504 of the Trade Preferences Extension Act of 2015 amended 
the Act by adding the concept of particular market situation (PMS) for 
purposes of CV under section 773(e) of the Act.\55\ Section 773(e) of 
the Act states that ``if a particular market situation exists such that 
the cost of materials and fabrication or other processing of any kind 
does not accurately reflect the cost of production in the ordinary 
course of trade, the administering authority may use another 
calculation methodology under this subtitle or any other calculation 
methodology.'' When an interested party submits a PMS allegation 
pursuant to section 773(e) of the Act, Commerce will respond to such a 
submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds 
that a PMS exists under section 773(e) of the Act, then it will modify 
its dumping calculations appropriately.
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    \55\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
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    Neither section 773(e) of the Act nor 19 CFR 351.301(c)(2)(v) set a 
deadline for the submission of PMS allegations and supporting factual 
information. However, in order to administer section 773(e) of the Act, 
Commerce must receive PMS allegations and supporting factual 
information with enough time to consider the submission. Thus, should 
an interested party wish to submit a PMS allegation and supporting new 
factual information pursuant to section 773(e) of the Act, it must do 
so no later than 20 days after submission of a respondent's initial 
Section D questionnaire response.

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances we will 
grant untimely-filed requests for the extension of time limits. Parties 
should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\56\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\57\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \56\ See section 782(b) of the Act.
    \57\ See also Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). On January 22, 2008, Commerce 
published Antidumping and Countervailing Duty Proceedings: Documents 
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). 
Parties wishing to participate in these investigations should ensure 
that they meet the requirements of these procedures (e.g., the filing 
of letters of appearance as discussed at 19 CFR 351.103(d)). 
Instructions for filing such applications may be found on Commerce's 
website at http://enforcement.trade.gov/apo.
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: November 7, 2018.
P. Lee Smith,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix

Scope of the Investigations

    The merchandise covered by these investigations, polyester 
textured yarn, is synthetic multifilament yarn that is manufactured 
from polyester (polyethylene terephthalate). Polyester textured yarn 
is produced through a texturing process, which imparts special 
properties to the filaments of the yarn, including stretch, bulk, 
strength, moisture absorption, insulation, and the appearance of a 
natural fiber. This scope includes all forms of polyester textured 
yarn, regardless of surface texture or appearance, yarn density and 
thickness (as measured in denier), number of filaments, number of 
plies, finish (luster), cross section, color, dye method, texturing 
method, or packing method (such as spindles, tubes, or beams).
    The merchandise subject to these investigations is properly 
classified under subheadings 5402.33.3000 and 5402.33.6000 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the merchandise is dispositive.

[FR Doc. 2018-24953 Filed 11-16-18; 8:45 am]
 BILLING CODE 3510-DS-P