[Federal Register Volume 83, Number 224 (Tuesday, November 20, 2018)]
[Notices]
[Pages 58538-58540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25296]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-070]


Rubber Bands From the People's Republic of China: 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 rubber bands from the People's Republic of China (China) for the 
period of investigation (POI) January 1, 2017, through December 31, 
2017.

DATES: Applicable November 20, 2018.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone (202) 482-4793.

SUPPLEMENTARY INFORMATION:

Background

    This final determination is made in accordance with section 705 of 
the Tariff Act of 1930, as amended (the Act). The petitioner in this 
investigation is Alliance Rubber Co. The mandatory respondents in this 
investigation are Graceful Imp. & Exp. Co., Ltd. (Graceful), Moyoung 
Trading Co., Ltd. (Moyoung), and Ningbo Syloon Imp & Exp Co., Ltd. 
(Ningbo). Neither the mandatory respondents nor the Government of China 
(GOC) responded to our requests for information in this investigation.
    We published the Preliminary Determination on July 9, 2018,\1\ and 
the Preliminary Critical Circumstances and Amended Scope on September 
6, 2018.\2\ We invited interested parties to comment on the preliminary 
determinations. We received scope comments from certain interested 
parties.
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    \1\ See Rubber Bands from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping 
Determination, 83 FR 31729 (July 9, 2018) (Preliminary 
Determination), and accompanying Preliminary Determination 
Memorandum (PDM).
    \2\ See Rubber Bands from the People's Republic of China: 
Preliminary Affirmative Determination of Critical Circumstances, in 
Part, in the Countervailing Duty Investigation, and Amendment to the 
Scope of the Preliminary Determination in the Countervailing Duty 
Investigation, 83 FR 45217 (September 6, 2018) (Preliminary Critical 
Circumstances and Amended Scope).
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Period of Investigation

    The POI is January 1, 2017, through December 31, 2017.

Scope Comments

    We invited parties to comment on Commerce's Preliminary Scope 
Memorandum, and the changes made to the scope of the investigation 
therein.\3\ We have reviewed the briefs submitted by interested 
parties, considered the arguments therein, but have not made further 
changes to the scope of the investigation beyond those incorporated in 
the Preliminary Critical Circumstances and Amended Scope. For further 
discussion, see Commerce's Final Scope Decision Memorandum.\4\
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    \3\ See Memorandum, ``Rubber Bands from the People's Republic of 
China and Thailand: Scope Comments Decision Memorandum for the 
Preliminary Antidumping Duty and Countervailing Duty 
Determinations,'' dated August 29, 2018 (Preliminary Scope 
Memorandum).
    \4\ See Memorandum, ``Rubber Bands from the People's Republic of 
China and Thailand: Scope Decision Memorandum for the Final 
Antidumping Duty and Countervailing Duty Determinations,'' dated 
concurrently with, and hereby adopted by, this notice (Final Scope 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are rubber bands from 
China. For a complete description of the scope of this investigation, 
see the Appendix to this notice.

Analysis of Subsidy Programs--Adverse Facts Available

    For purposes of this final determination, we relied solely on facts 
otherwise available because neither the GOC nor any of the selected 
mandatory respondents participated in this investigation.\5\ Further, 
because the mandatory respondents and the GOC did not cooperate to the 
best of their abilities in responding to our requests for information 
in this investigation, we drew adverse inferences in selecting from 
among the facts otherwise available, in accordance with sections 
776(a)-(b) of the Act. Therefore, consistent with the Preliminary 
Determination, we continue to apply adverse facts available (AFA) to 
Graceful, Moyoung, and Ningbo Syloon. No interested party submitted 
comments on Commerce's preliminary determination to apply AFA. Thus, we 
made no changes to the subsidy rate for the mandatory respondents for 
this final determination. A detailed discussion of our application of 
AFA was provided in the Preliminary Determination.\6\
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    \5\ See sections 776(a)(1) and (2) of the Act.
    \6\ See Preliminary Determination PDM at Use of Facts Otherwise 
Available and Adverse Inferences.
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All-Others Rate

    As discussed in the Preliminary Determination, Commerce based the 
selection of the all-others rate on the countervailable subsidy rate 
established for the mandatory respondents, in accordance with section 
705(c)(5)(A)(ii) of the Act.\7\ We made no changes to the selection of 
the all-others rate for this final determination.
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    \7\ See Preliminary Determination, 83 FR at 31730.
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Final Affirmative Determination of Critical Circumstances, in Part

    As noted above, the mandatory respondents did not participate in 
this investigation, and no interested party submitted comments on 
critical circumstances. Because Graceful, Moyoung, and Ningbo Syloon 
did not cooperate to the best of their abilities in this investigation, 
we continue to determine that it is appropriate to apply AFA, in 
accordance with sections 776(a)-(b) of the Act, with respect to 
critical circumstances.
    We are making the inconsistency determination with regard to the 
``Export Assistance Grants'' program, which had the lowest rate in the 
Preliminary Determination among the programs alleged to be inconsistent 
with the Subsidies and Countervailing Measures Agreement (SCM

[[Page 58539]]

Agreement).\8\ In so doing, we limit the corresponding offset to the 
dumping margin in the companion antidumping duty investigation, which 
best fulfills our statutory mandate ``to ensure that the party does not 
obtain a more favorable result by failing to cooperate than if it had 
cooperated fully,'' \9\ and induce future cooperation by companies in 
investigations where the petitioners allege the existence of programs 
potentially inconsistent with the SCM Agreement.
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    \8\ See Preliminary Determination PDM at 10-11 and Appendix.
    \9\ See Statement of Administrative Action accompanying the 
Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994) at 
870.
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    Because we find that the ``Export Assistance Grants'' program is 
export contingent, we determine that the criterion under section 
705(a)(2)(A) of the Act has been met. In addition, for the purposes of 
the ``massive imports'' analysis, we continue to find, pursuant to 
section 776(b) of the Act, that the mandatory respondents shipped 
rubber bands in ``massive'' quantities during the comparison period, 
thereby fulfilling the criteria under section 705(a)(2)(B) of the Act. 
Consequently, pursuant to section 705(a)(2) of the Act, Commerce 
determines that critical circumstances exist for imports of rubber 
bands from China for Graceful, Moyoung, and Ningbo Syloon.
    Commerce, however, determines that critical circumstances do not 
exist with respect to all other producers or exporters of rubber bands 
from China because there was not a massive increase in imports, as 
defined by 19 CFR 351.206(h)(2). For further information on Commerce's 
critical circumstances analysis, see the Preliminary Critical 
Circumstances and Amended Scope.\10\
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    \10\ See Preliminary Critical Circumstances and Amended Scope, 
83 FR at 45218-19.
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Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Graceful Imp. & Exp. Co., Ltd...........................          125.77
Moyoung Trading Co., Ltd................................          125.77
Ningbo Syloon Imp & Exp Co., Ltd........................          125.77
All-Others..............................................          125.77
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Disclosure

    We described the subsidy rate calculations, which were based on 
AFA, in the Preliminary Determination.\11\ As noted above, there are no 
changes to the calculations. Thus, no additional disclosure is 
necessary for this final determination.
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    \11\ See Preliminary Determination PDM at Appendix--AFA Rate 
Calculation.
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Continuation of Suspension of Liquidation

    As a result of our affirmative Preliminary Determination and 
pursuant to section 703(d) of the Act, we instructed U.S. Customs and 
Border Protection (CBP) to suspend liquidation of all entries of rubber 
bands from China that were entered or withdrawn from warehouse, for 
consumption, on or after July 9, 2018, the date of publication of the 
Preliminary Determination in the Federal Register.\12\ Subsequently, we 
issued our affirmative Preliminary Critical Circumstances and Amended 
Scope and, pursuant to section 703(e)(2)(A) of the Act, we instructed 
CBP to suspend liquidation, with regard to Graceful, Moyoung, and 
Ningbo Syloon, of any unliquidated entries of subject merchandise from 
China entered, or withdrawn from warehouse, for consumption on or after 
April 10, 2018, which is 90 days prior to the date of publication of 
the Preliminary Determination in the Federal Register.\13\
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    \12\ See Preliminary Determination, 83 FR at 31729.
    \13\ See Preliminary Critical Circumstances and Amended Scope, 
83 FR at 45219-20.
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    Additionally, in accordance with section 703(d) of the Act, we 
issued instructions to CBP to discontinue the suspension of liquidation 
for CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after November 6, 2018. We also 
instructed CBP to continue to suspend liquidation on all shipments from 
all other producers or exporters entered, or withdrawn from warehouse, 
for consumption made during the period July 9, 2018, through November 
5, 2018, until the conclusion of this investigation. For Graceful, 
Moyoung, and Ningbo Syloon, we instructed CBP to continue to suspend 
liquidation on all shipments entered, or withdrawn from warehouse, for 
consumption made during the period April 10, 2018, through November 5, 
2018, until the conclusion of this investigation.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the suspension of liquidation under section 706(a) of the Act, and 
require a cash deposit of estimated CVDs for such entries of subject 
merchandise in the amounts indicated above. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated and all estimated duties deposited as a 
result of the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its determination. In addition, Commerce will make available 
to the ITC all non-privileged and non-proprietary information relating 
to this investigation. Commerce will allow the ITC access to all 
privileged and business proprietary information in the 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.

Notification Regarding APOs

    This notice serves as a reminder to parties subject to an APO of 
their responsibility concerning the disposition 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, alternatively, conversion to judicial protective 
order is hereby requested. Failure to comply with the regulations and 
terms of an APO is a violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: November 13, 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

Scope of the Investigation

    The products subject to this investigation are bands made of 
vulcanized rubber, with a flat length, as actually measured end-to-
end by the band lying flat, no less than \1/2\ inch and no greater 
than 10 inches; with a width, which measures the dimension 
perpendicular to the length, actually of at least \3/64\ inch and no 
greater than 2 inches; and a wall thickness actually from 0.020 inch 
to 0.125 inch. Vulcanized rubber has been chemically processed into 
a more durable material by the addition of sulfur or other 
equivalent curatives or accelerators. Subject products are included 
regardless of color or

[[Page 58540]]

inclusion of printed material on the rubber band's surface, 
including but not limited to, rubber bands with printing on them, 
such as a product name, advertising, or slogan, and printed material 
(e.g., a tag) fastened to the rubber band by an adhesive or another 
temporary type of connection. The scope includes vulcanized rubber 
bands which are contained or otherwise exist in various forms and 
packages, such as, without limitation, vulcanized rubber bands 
included within a desk accessory set or other type of set or 
package, and vulcanized rubber band balls. The scope excludes 
products that consist of an elastomer loop and durable tag all-in-
one, and bands that are being used at the time of import to fasten 
an imported product.
    Excluded from the scope of this investigation are vulcanized 
rubber bands of various sizes with arrow shaped rubber protrusions 
from the outer diameter that exceeds at the anchor point a wall 
thickness of 0.125 inches and where the protrusion is used to loop 
around, secure and lock in place.
    Excluded from the scope of this investigation are yarn/fabric-
covered vulcanized rubber hair bands, regardless of size.
    Merchandise covered by this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under subheading 4016.99.3510. Merchandise covered by the 
scope may also enter under HTSUS subheading 4016.99.6050. While the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of the investigation is 
dispositive.

[FR Doc. 2018-25296 Filed 11-19-18; 8:45 am]
BILLING CODE 3510-DS-P