[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]
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