[Federal Register Volume 84, Number 86 (Friday, May 3, 2019)]
[Notices]
[Pages 19040-19043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09065]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-098]
Polyester Textured Yarn From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of polyester textured yarn (yarn) from the People's Republic
of China (China) for the period of investigation (POI) January 1, 2017
through December 31, 2017. Interested parties are invited to comment on
this preliminary determination.
DATES: Effective May 3, 2019.
FOR FURTHER INFORMATION CONTACT: Bob Palmer or Joseph Dowling, AD/CVD
Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-9068 or (202)
482-1646, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on November
19, 2018.\1\
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\1\ See Polyester Textured Yarn from India and the People's
Republic of China: Initiation of Countervailing Duty Investigations,
83 FR 58232 (November 19, 2018) (Initiation Notice).
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On February 1, 2019, pursuant to a request from the Unifi
Manufacturing, Inc. and Nan Ya Plastics Corporation (the
petitioners),\2\ Commerce postponed the preliminary determination of
this
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\2\ See Letter, ``Countervailing Duty Investigation of Polyester
Textured Yarn from China: Petitioners' Request to Postpone
Preliminary Determination,'' dated December 10, 2018.
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[[Page 19041]]
investigation to March 18, 2019.\3\ On April 18, 2019, Commerce issued
its preliminary critical circumstances determination determining that
critical circumstances exist for imports from all producers and
exporters of the subject merchandise from China.\4\ 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\ If the new deadline falls on a non-
business day, in accordance with Commerce's practice, the deadline will
become the next business day. The revised deadline for the preliminary
determination is now April 26, 2019.
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\3\ See Polyester Textured Yarn from India and the People's
Republic of China: Postponement of Preliminary Determinations in the
Countervailing Duty Investigations, 84 FR 1062 (February 1, 2019).
\4\ See Polyester Textured Yarn from the People's Republic of
China: Preliminary Affirmative Determination of Critical
Circumstances in the Antidumping and Countervailing Duty
Investigations, 84 FR 16840 (April 23, 2019) (Preliminary
Affirmative Critical Circumstances Determination).
\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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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\6\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
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
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the
Preliminary Decision Memorandum are identical in content.
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\6\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Polyester
Textured Yarn from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is polyester textured
yarn from China. For a complete description of the scope of this
investigation, see Appendix I and ``Scope Comments'' section below.
Scope Comments
In accordance with the preamble to Commerce's regulations,\7\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\8\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and responses submitted to the record for this preliminary
determination, and accompanying discussion and analysis of all comments
timely received, see the Preliminary Scope Decision Memorandum.\9\
Commerce is preliminarily modifying the scope language as it appeared
in the Initiation Notice to exclude bulk continuous filament yarn. See
revised scope in Appendix I.
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\7\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\8\ See Initiation Notice, 83 FR at 58233.
\9\ See Memorandum, ``Polyester Textured Yarn from India and the
People's Republic of China: Scope Comments Decision Memorandum for
the Preliminary Determinations,'' dated concurrently with this
notice (Preliminary Scope Decision Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that
confers a benefit to the recipient, and that the subsidy is
specific.\10\ In making these findings, Commerce relied, in part, on
facts available and, because it finds that certain respondents did not
act to the best of their ability to respond to Commerce's requests for
information, it drew an adverse inference where appropriate in
selecting from among the facts otherwise available.\11\ For further
information, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in the Preliminary Decision Memorandum. For a full
description of the methodology underlying our preliminary conclusions,
see the Preliminary Decision Memorandum.
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\10\ 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.
\11\ See sections 776(a) and (b) of the Act.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final countervailing duty
determination in this investigation with the final determination in the
companion antidumping duty investigation of yarn from China, based on a
request made by the petitioners.\12\ Consequently, the final
countervailing duty determination will be issued on the same date as
the final antidumping determination, which is currently scheduled to be
issued no later than September 9, 2019, unless postponed.
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\12\ See Petitioners' Letter, ``Polyester Textured Yarn from
China and India--Petitioners' Request to Align the Department's
Final Determinations,'' dated March 29, 2019.
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All-Others Rate
Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that
in the preliminary 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 on
facts otherwise available, as outlined under section 776 of the Act.
In this investigation, Commerce preliminarily assigned rates based
entirely on facts available for Suzhou Shenghong Fiber Co., Ltd. and
its cross-owned affiliates, and Suzhou Shenghong Garmant Development
Co. Therefore, the only rate that is not zero, de minimis or based
entirely on facts otherwise available is the rate calculated for Fujian
Billion Polymerization Fiber Technology Industrial Co., Ltd. (Fujian
Billion). Consequently, the rate calculated for Fujian Billion is also
assigned as the rate for all other producers and exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
[[Page 19042]]
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Subsidy rate
Company (percent)
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Fujian Billion Polymerization Fiber Technology 32.04
Industrial Co., Ltd \13\...............................
Suzhou Shenghong Fiber Co., Ltd \14\.................... 459.98
Suzhou Shenghong Garmant Development Co................. 459.98
All Others.............................................. 32.04
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Suspension of Liquidation
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\13\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Fujian Billion: (1) Billion Development (Hong Kong) Limited and (2)
Billion Industrial Investment Limited.
\14\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Suzhou Shenghong Fiber Co., Ltd.: (1) Jiangsu Zhonglu Technology
Development Co., Ltd., (2) Jiangsu Guowang High-Technique Fiber Co.,
Ltd., (3) Jiangsu Shenghong Science and Technology Co., Ltd., (4)
Jiangsu Honggang Petrochemical Co., Ltd., (5) Shenghong Group Co.,
Ltd., (6) Shenghong Holding Group, Co., Ltd., (7) Shenghong (Suzhou)
Group Co., Ltd., (8) Jiangsu Shenghong Investment Development Co.,
Ltd., (9) Jiangsu Shenghong New Material Co., Ltd., and (10) Jiangsu
Shenghong Textile Imp & Exp Co. and its successor Jiangsu Huahui
Import and Export Co., Ltd.
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In accordance with sections 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Section 703(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances,\15\ any suspension of
liquidation shall apply to unliquidated entries of merchandise entered,
or withdrawn from warehouse, for consumption on or after the later of
(a) the date which is 90 days before the date on which the suspension
of liquidation was first ordered, or (b) the date on which the notice
of initiation of the investigation was published. Commerce
preliminarily found that critical circumstances exist for all imports
of subject merchandise from China. In accordance with section
703(e)(2)(A) of the Act, the suspension of liquidation shall apply to
unliquidated entries from all exporters and producers of the subject
merchandise from China that were entered, or withdrawn from warehouse,
for consumption on or after the date which is 90 days before the
publication of this notice.
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\15\ See Preliminary Affirmative Critical Circumstances
Determination, 84 FR at 16842.
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Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
As stated in the Preliminary Scope Decision Memorandum, all
interested parties will have the opportunity to submit case and
rebuttal briefs on the preliminary scope determination.\16\ The
deadline for these comments will be established in the Federal Register
notice regarding the preliminary determination of the companion
antidumping duty investigation of yarn from China to be issued at a
later date.
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\16\ See Preliminary Scope Decision Memorandum.
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Case briefs or other written comments, not pertaining to scope
issues, may be submitted to the Assistant Secretary for Enforcement and
Compliance no later than seven days after the date on which the last
verification report is issued in this investigation. Rebuttal briefs,
limited to issues raised in case briefs, may be submitted no later than
five days after the deadline date for case briefs.\17\ Pursuant to 19
CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or
rebuttal briefs in this investigation 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.
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\17\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Parties are reminded that briefs and hearing requests are to be
filed electronically using ACCESS and that electronically filed
documents must be received successfully in their entirety by 5 p.m.
Eastern Time on the due date.
International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. Pursuant
to section 705(b)(2) of the Act, if the final determination is
affirmative, the ITC will make its final injury determination before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: April 26, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation, 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
[[Page 19043]]
method, texturing method, or packing method (such as spindles,
tubes, or beams).
Excluded from the scope of the investigation is bulk continuous
filament yarn that: (a) Is polyester synthetic multifilament yarn;
(b) has denier size ranges of 900 and above; (c) has turns per meter
of 40 and above; and (d) has a maximum shrinkage of 2.5 percent.
The merchandise subject to this investigation 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.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Preliminary Determination of Critical Circumstances
IV. Injury Test
V. Application of the CVD Law to Imports From China
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Conclusion
[FR Doc. 2019-09065 Filed 5-2-19; 8:45 am]
BILLING CODE 3510-DS-P