[Federal Register Volume 84, Number 42 (Monday, March 4, 2019)]
[Notices]
[Pages 7337-7339]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03821]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-879]


Polyvinyl Alcohol From the People's Republic of China: Initiation 
and Preliminary Results of Antidumping Duty Changed Circumstances 
Review

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

SUMMARY: The Department of Commerce (Commerce) is initiating a changed 
circumstances review and preliminarily determining that Sinopec 
Chongqing SVW Chemical Co., Ltd. (SVW) is the successor-in-interest to 
Sinopec Sichuan Vinylon Works (Sichuan SVW) for the purposes of the 
antidumping duty order on polyvinyl alcohol (PVA) from the People's 
Republic of China (China).

DATES: Applicable March 4, 2019.

FOR FURTHER INFORMATION CONTACT: Charles Doss, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: 202-482-4474.

SUPPLEMENTARY INFORMATION: 

Background

    On October 1, 2003, Commerce published in the Federal Register an 
antidumping duty order on PVA from China.\1\ On December 7, 2018, SVW, 
a foreign producer and exporter of polyvinyl alcohol from China, and 
Wego Chemical and Mineral Corp. (Wego), an importer of polyvinyl 
alcohol from China (collectively, SVW and Wego) requested that, 
pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act) and 19 CFR 351.216(b), Commerce conduct an expedited changed 
circumstances review of the Order to confirm that SVW is the successor-
in-interest to Sichuan SVW and, accordingly, to assign SVW the cash 
deposit rate of Sichuan SVW.\2\ In its submission, SVW and Wego explain 
that Sinopec Sichuan Vinylon Works (i.e., Sichuan SVW) has changed its 
name to Sinopec Chongqing SVW Chemical Co., Ltd. (i.e., SVW), and aver 
that no substantive changes other than this change of name have 
otherwise occurred.\3\ SVW and Wego further requested that Commerce 
combine the notice of initiation and preliminary results pursuant to 19 
CFR 351.221(c)(3)(ii) and (iii).\4\ We did not receive comments from 
other interested parties concerning this request.
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    \1\ See Antidumping Duty Order: Polyvinyl Alcohol from the 
People's Republic of China, 68 FR 56620 (October 1, 2003) (the 
Order).
    \2\ See SVW and Wego's letter, ``Polyvinyl Alcohol from China: 
Request for Changed Circumstances Review,'' dated December 12, 2018 
(CCR Request).
    \3\ Id. at 1-4.
    \4\ Id. at 2.
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    Commerce exercised its discretion to toll all deadlines affected by 
the partial federal government closure from December 22, 2018, through 
the resumption of operations on January 29, 2019.\5\ Accordingly, the 
revised deadline for issuance of this initiation and the preliminary 
results of changed circumstances review is now March 5, 2019.
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    \5\ See Memorandum to the Record from 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, ``Deadlines 
Affected by the Partial Shutdown of the Federal Government,'' dated 
January 28, 2019. All deadlines in this segment of the proceeding 
have been extended by 40 days.
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Scope of the Order

    The merchandise covered by the order is PVA. This product consists 
of all PVA hydrolyzed in excess of 80 percent, whether or not mixed or 
diluted with commercial levels of defoamer or boric acid, except as 
noted below.

[[Page 7338]]

    The following products are specifically excluded from the scope of 
this order:
    (1) PVA in fiber form.
    (2) PVA with hydrolysis less than 83 mole percent and certified not 
for use in the production of textiles.
    (3) PVA with hydrolysis greater than 85 percent and viscosity 
greater than or equal to 90 cps.
    (4) PVA with a hydrolysis greater than 85 percent, viscosity 
greater than or equal to 80 cps but less than 90 cps, certified for use 
in an ink jet application.
    (5) PVA for use in the manufacture of an excipient or as an 
excipient in the manufacture of film coating systems which are 
components of a drug or dietary supplement, and accompanied by an end-
use certification.
    (6) PVA covalently bonded with cationic monomer uniformly present 
on all polymer chains in a concentration equal to or greater than one 
mole percent.
    (7) PVA covalently bonded with carboxylic acid uniformly present on 
all polymer chains in a concentration equal to or greater than two mole 
percent, certified for use in a paper application.
    (8) PVA covalently bonded with thiol uniformly present on all 
polymer chains, certified for use in emulsion polymerization of non-
vinyl acetic material.
    (9) PVA covalently bonded with paraffin uniformly present on all 
polymer chains in a concentration equal to or greater than one mole 
percent.
    (10) PVA covalently bonded with silan uniformly present on all 
polymer chains certified for use in paper coating applications.
    (11) PVA covalently bonded with sulfonic acid uniformly present on 
all polymer chains in a concentration level equal to or greater than 
one mole percent.
    (12) PVA covalently bonded with acetoacetylate uniformly present on 
all polymer chains in a concentration level equal to or greater than 
one mole percent.
    (13) PVA covalently bonded with polyethylene oxide uniformly 
present on all polymer chains in a concentration level equal to or 
greater than one mole percent.
    (14) PVA covalently bonded with quaternary amine uniformly present 
on all polymer chains in a concentration level equal to or greater than 
one mole percent.
    (15) PVA covalently bonded with diacetoneacrylamide uniformly 
present on all polymer chains in a concentration level greater than 
three mole percent, certified for use in a paper application.
    The merchandise subject to this order is currently classifiable 
under subheading 3905.30.00 of the Harmonized Tariff Schedule of the 
United States (HTSUS). Although the HTSUS subheading is provided for 
convenience and customs purposes, the written description of the scope 
of this order is dispositive.

Initiation and Preliminary Results

    Pursuant to section 751(b)(1) of the Act, Commerce will conduct a 
changed circumstances review upon receipt of information concerning, or 
a request from, an interested party for a review of an antidumping duty 
order which shows changed circumstances sufficient to warrant a review 
of the order. In the past, Commerce has used changed circumstances 
reviews to address the applicability of cash deposit rates after there 
have been changes in the name or structure of a respondent, such as a 
merger or spinoff (`successor-in-interest' or `successorship' 
determinations).\6\ Based on the request from SVW and Wego, and in 
accordance with section 751(b)(1) of the Act and 19 CFR 351.216(d) and 
(e), we are initiating a changed circumstances review to determine 
whether SVW is the successor-in-interest to Sichuan SVW for purposes of 
antidumping duty liability.
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    \6\ See, e.g., Diamond Sawblades and Parts Thereof from the 
People's Republic of China: Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review, 82 FR 51605, 51606 
(November 7, 2017) (Diamond Sawblades Preliminary), unchanged in 
Diamond Sawblades and Parts Thereof from the People's Republic of 
China: Final Results of Antidumping Duty Changed Circumstances 
Review, 82 FR 60177 (December 19, 2017) (Diamond Sawblades Final).
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    Section 351.221(c)(3)(ii) of Commerce's regulations permits 
Commerce to combine the notice of initiation of a changed circumstances 
review and the notice of preliminary results if Commerce concludes that 
expedited action is warranted.\7\ In this instance, because the record 
contains information necessary to make a preliminary finding, we find 
that expedited action is warranted and have combined the notice of 
initiation and the notice of preliminary results.\8\
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    \7\ See 19 CFR 351.221(c)(3)(ii). See also Certain Pasta from 
Italy: Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review, 80 FR 33480, 33480-41 (June 12, 2015) 
(Pasta from Italy Preliminary Results) (unchanged in Certain Pasta 
from Italy: Final Results of Changed Circumstances Review, 80 FR 
48807 (August 14, 2015) (Pasta from Italy Final Results).
    \8\ See, e.g., Pasta from Italy Preliminary Results, 80 FR at 
33480-41 (unchanged in Pasta from Italy Final Results, 80 FR at 
48807).
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    Accordingly, pursuant to section 751(b) of the Act, we have 
conducted a successor-in-interest analysis in response to SWV and 
Wego's request. In making a successor-in-interest determination, 
Commerce examines several factors, including, but not limited to, 
changes in the following: (1) Management; (2) production facilities; 
(3) supplier relationships; and (4) customer base.\9\ While no single 
factor or combination of factors will necessarily provide a dispositive 
indication of a successor-in-interest relationship, generally, Commerce 
will consider the new company to be the successor to the previous 
company if the new company's resulting operation is not materially 
dissimilar to that of its predecessor.\10\ Thus, if the evidence 
demonstrates that, with respect to the production and sales of the 
subject merchandise, the new company operates as essentially the same 
business entity as the former company, Commerce will accord the new 
company the same antidumping treatment as its predecessor.\11\
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    \9\ See, e.g., Diamond Sawblades Final and Certain Frozen 
Warmwater Shrimp from India: Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review, 83 FR 37784 (August 
2, 2018) (unchanged in Certain Frozen Warmwater Shrimp from India: 
Notice of Final Results of Antidumping Duty Changed Circumstances 
Review, 83 FR 49909 (October 3, 2018)).
    \10\ Id.
    \11\ Id. See also, e.g., Notice of Initiation and Preliminary 
Results of Antidumping Duty Changed Circumstances Review: Certain 
Frozen Warmwater Shrimp from India, 77 FR 64953 (October 24, 2012), 
unchanged in Final Results of Antidumping Duty Changed Circumstances 
Review: Certain Frozen Warmwater Shrimp from India, 77 FR 73619 
(December 11, 2012).
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    In their request, SVW and Wego supplied evidence for Commerce to 
determine preliminarily that SVW is the successor-in-interest of 
Sichuan SVW. SVW and Wego provided documentation of approval of SVW's 
name change from regulators \12\ and its business license before and 
after the change.\13\ In addition, the record includes lists of SVW's 
management before and after the name change,\14\ supporting SVW and 
Wego's assertion that the management is identical.\15\
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    \12\ See SVW CCR Request at Attachment 1.
    \13\ Id. at Attachment 5.
    \14\ Id. at Attachment 3.
    \15\ Id. at 3.
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    Further, SVW and Wego provided an announcement of SVW's name 
change, articles of association, and business licenses that specify 
that its business premises are the same,\16\ and support the claim that 
SVW's production facilities, operations, and scope of business have not 
materially changed as a result of the name change.\17\ Moreover, SVW 
and Wego provide sufficient

[[Page 7339]]

information to support their assertion that there have been no material 
changes to SVW's raw material suppliers and only minor changes to its 
customer base before and following its name change.\18\
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    \16\ Id. at Attachment 2.
    \17\ Id. at Attachment 3.
    \18\ Id.
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    Based on the aforementioned evidence on the record, we 
preliminarily determine that SVW is the successor-in-interest to 
Sichuan SVW, as the change in the business' name was not accompanied by 
significant changes to its management and operations, production 
facilities, supplier relationships, or customer base. Thus, we 
preliminarily determine that SVW operates as essentially the same 
business entity as Sichuan SVW, that SVW is the successor-in-interest 
to Sichuan SVW, and that SVW should receive the same antidumping duty 
cash deposit rate with respect to subject merchandise as its 
predecessor.

Public Comment

    Pursuant to 19 CFR 351.310(c), any interested party may request a 
hearing within 30 days of publication of this notice. In accordance 
with 19 CFR 351.309(c)(1)(ii), interested parties may submit case 
briefs not later than 30 days after the date of publication of this 
notice. Rebuttal briefs, limited to issues raised in the case briefs, 
may be filed no later than five days after the case briefs, in 
accordance with 19 CFR 351.309(d). Parties who submit case or rebuttal 
briefs 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.\19\ All comments are to be filed electronically using 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS), available to registered 
users at https://access.trade.gov and in the Central Records Unit, Room 
B8024, of the main Department of Commerce building, and must also be 
served on interested parties. An electronically filed document must be 
received successfully in its entirety by ACCESS by 5:00 p.m. Eastern 
Time on the day it is due.\20\
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    \19\ See 19 CFR 351.309(c)(2).
    \20\ See 19 CFR 351.303(b).
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    Consistent with 19 CFR 351.216(e), we will issue the final results 
of this changed circumstances review no later than 270 days after the 
date on which this review was initiated, or within 45 days if all 
parties agree to our preliminary finding. This notice is published in 
accordance with sections 751(b)(1) and 777(i) of the Act and 19 CFR 
351.216(b), 351.221(b) and 351.221(c)(3).

    Dated: February 26, 2019.
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.
[FR Doc. 2019-03821 Filed 3-1-19; 8:45 am]
 BILLING CODE 3510-DS-P