[Federal Register Volume 84, Number 126 (Monday, July 1, 2019)]
[Notices]
[Pages 31297-31300]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13983]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-097]
Polyester Textured Yarn From the People's Republic of China:
Preliminary Affirmative Determination of Sales at Less Than Fair Value,
Postponement of Final Determination and Extension of Provisional
Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that polyester textured yarn (yarn) from
[[Page 31298]]
the People's Republic of China (China) is being, or is likely to be,
sold in the United States at less than fair value (LTFV). The period of
investigation (POI) is April 1, 2018 through September 30, 2018.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable July 1, 2019.
FOR FURTHER INFORMATION CONTACT: Irene Gorelik or Jinny Ahn, 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) 482-6905 or (202)
482-0339, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(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\ 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.\2\ The
revised tolled deadline for this preliminary determination was May 6,
2019. In response to the petitioners' request, Commerce postponed the
preliminary determination of this investigation and the revised
deadline is now June 25, 2019.\3\ On April 18, 2019, Commerce issued
its preliminary critical circumstances determination that critical
circumstances exist for imports from all producers and exporters of the
subject merchandise from China.\4\
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\1\ See Polyester Textured Yarn from India and the People's
Republic of China: Initiation of Less-Than-Fair-Value
Investigations, 83 FR 58223 (November 19, 2018) (Initiation Notice).
\2\ 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.
\3\ See Polyester Textured Yarn from India and the People's
Republic of China: Postponement of Preliminary Determinations in the
Less-Than-Fair-Value Investigations, 84 FR 16843 (April 23, 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).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\5\ A list of topics included 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 https://access.trade.gov, and to all parties in the
Central Records Unit, room B8024 of the main 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 the electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value 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.
Scope Comments
In accordance with the preamble to Commerce's regulations,\6\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (scope).\7\ 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 rebuttal 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.\8\
Commerce preliminarily modified the scope language as it appeared in
the Initiation Notice to exclude bulk continuous filament yarn.
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\6\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\7\ See Initiation Notice, 83 FR at 58233.
\8\ See Memorandum, ``Polyester Textured Yarn from India and the
People's Republic of China: Scope Comments Decision Memorandum for
the Preliminary Determinations,'' dated April 26, 2019 (Preliminary
Scope Decision Memorandum).
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On May 2, 2019, the petitioners requested that Commerce include an
additional Harmonized Tariff Schedule of the United States (HTSUS)
subheading in the scope language. We intend to address this request in
the final determinations of this and the concurrent AD and CVD
investigations of yarn from India and China.
Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. In addition, pursuant to sections 776(a) and
(b) of the Act, Commerce preliminarily has relied upon facts otherwise
available, with adverse inferences, for the China-wide entity. The
China-wide entity includes each of the companies selected for
individual examination: Fujian Zhengqi Hi-tech Fiber Technology Co.,
Ltd, Suzhou Shenghong Fiber Co., Ltd., and the single entity comprising
Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. and
its affiliate Fujian Baikai Textile Chemical Fiber Co., Ltd. As adverse
facts available (AFA) for the China-wide entity, we have assigned the
highest margin alleged in the Petition of 77.15 percent.\9\
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\9\ 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
(Petition); see also Petitioners' Letter, ``Polyester Textured Yarn
from the People's Republic of China--Petitioners' Supplement for
Volume II Regarding China Antidumping Duties,'' dated October 29,
2018, at 7 and Exhibit AD-PRC-Supp-5; Initiation Checklist, dated
November 7, 2018, at 12.
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We preliminarily find that Jiangsu Hengli Chemical Fiber Co., Ltd.
(Hengli), which was not selected for individual examination in this
investigation, has demonstrated eligibility for a separate rate.
However, because none of the mandatory respondents are receiving a
separate rate and we are determining the China-wide rate based on AFA,
we look to section 735(c)(5)(B) of the Act for guidance and are,
consistent with that provision, using ``any reasonable method'' to
determine the rate for exporters that are not being individually
examined and found to be entitled to a separate rate. As ``any
reasonable method,'' we find it appropriate to assign the simple
average of the Petition rates (i.e., 76.07 percent) \10\ to Hengli,
consistent with our practice.\11\ For a full description of the
methodology underlying Commerce's preliminary determination,
[[Page 31299]]
see the Preliminary Decision Memorandum.
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\10\ Id. The individual Petition rates, as initiated, are 74.98
percent and 77.15 percent. The simple average of these two Petition
margins is 76.07 percent.
\11\ See, e.g., Carton-Closing Staples from the People's
Republic of China: Final Affirmative Determination of Sales at Less
Than Fair Value, 83 FR 13236, 13238 (March 28, 2018).
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Combination Rates
In the Initiation Notice,\12\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\13\
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\12\ See Initiation Notice at 58227.
\13\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' dated April 5, 2005 (Policy Bulletin 05.1), available
on Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
dumping margins exist:
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Cash deposit
rate (adjusted
Estimated for export
Producer Exporter Dumping Margin subsidy
(percent) offsets)
(percent)
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Jiangsu Hengli Chemical Fiber Co., Ltd........ Jiangsu Hengli Chemical Fiber 76.07 65.39
Co., Ltd.
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China-wide Entity \14\.................... ................................ 77.15 66.47
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\14\ The China-wide entity includes: (1) The single entity
comprising Fujian Billion Polymerization Fiber Technology Industrial
Co., Ltd. and its affiliate Fujian Baikai Textile Chemical Fiber
Co., Ltd.; (2) Suzhou Shenghong Fiber Co., Ltd.; (3) Fujian Zhengqi
Hi-tech Fiber Technology Co., Ltd.; (4) Chori (China) Co., Ltd.; (5)
Jinjiang Jinfu Chemical Fiber and Polymer Co., Ltd.; (6) Jiangsu
Guowang High-Technique Fiber Co., Ltd.; and (7) Pujiang Fairy Home
Textile Co., Ltd. In addition, 33 companies named in the Petition
did not respond to our request for quantity and value information
and two companies that submitted quantity and value data did not
submit separate rate applications. Those companies are also part of
the China-wide entity and are identified in the Preliminary Decision
Memorandum.
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
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,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the estimated dumping margins, as indicated in the
chart above, as follows: (1) For the producer/exporter combination
listed in the table above, the cash deposit rate is equal to the
estimated dumping margin listed for that combination in the table; (2)
for all combinations of Chinese producers/exporters of the subject
merchandise that have not established eligibility for their own
separate rates, the cash deposit rate will be equal to the estimated
dumping margin established for the China-wide entity; and (3) for all
third-county exporters of merchandise under consideration not listed in
the table above, the cash deposit rate is the cash deposit rate
applicable to the Chinese producer/exporter combination (or the China-
wide entity) that supplied that third-country exporter.
Section 733(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 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 733(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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To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion CVD
proceeding when CVD provisional measures are in effect. Accordingly,
where Commerce has made a preliminary affirmative determination for
domestic subsidy pass-through or export subsidies, Commerce has offset
the calculated estimated dumping margin by the appropriate rates. As
noted in the chart of estimated dumping margins above, we adjusted the
cash deposit rates in this preliminary determination for export
subsidies determined in the companion CVD investigation.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated dumping margins assigned in
this preliminary determination unadjusted for the export subsidies at
the time the CVD provisional measures expire. These suspension of
liquidation instructions will remain in effect until further notice.
Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b). However, because Commerce
preliminarily applied AFA to the China-wide entity, of which the three
mandatory respondents are a part, in accordance with section 776 of the
Act, and the applied AFA rate is based solely on the Petition, and the
rate assigned to the sole separate rate company is a simple average of
the Petition rates, there are no calculations to disclose.
Verification
Because the only rates established in this investigation are based
on the Petition rates, we do not intend to conduct verification.
Public Comment
As stated in the Preliminary Scope Decision Memorandum, all
interested parties will have the opportunity to
[[Page 31300]]
submit case and rebuttal briefs on the preliminary scope
determination.\16\ Case briefs regarding scope issues may be submitted
within 10 days after the date of publication of this notice in the
Federal Register. Rebuttal briefs regarding scope issues, limited to
those issues which are raised in the scope case briefs, may be
submitted no later than five days after the deadline date for scope
case briefs. All scope case and rebuttal briefs must be filed
identically on the records of this investigation and the concurrent AD
and CVD investigations of yarn from India and China.
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\16\ See Preliminary Scope Decision Memorandum.
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Case briefs or other written comments regarding non-scope issues
may be submitted to the Assistant Secretary for Enforcement and
Compliance no later than 30 days after the date of publication of the
preliminary determination, unless the Secretary alters the time limit.
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.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On June 14, 2019, pursuant to 19 CFR 351.210(e), Fujian Billion
requested, in the event of an affirmative preliminary determination,
that Commerce postpone the final determination and that provisional
measures be extended to a period not to exceed six months.\18\ On June
18, 2019, the petitioners also filed a request to postpone the final
determination in the event of a negative preliminary determination.\19\
In accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii) and (e)(2), because (1) the preliminary determination
is affirmative; (2) the requesting exporter accounts for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, Commerce is postponing the final
determination and extending the provisional measures from a four-month
period to a period not greater than six months. Accordingly, Commerce's
final determination will publish no later than 135 days after the date
of publication of this preliminary determination.
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\18\ See Letter from Fujian Billion, ``Request for Extension of
Final Determination and Provisional Measures,'' dated June 14, 2019.
\19\ See Letter from the Petitioners, ``Request to Extend the
Antidumping Duty Final Determinations,'' dated June 18, 2019.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination
whether imports of the subject merchandise are materially injuring, or
threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: June 25, 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 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. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional
Measures
V. Selection of Respondents
VI. Preliminary Determination of Critical Circumstances
VII. Discussion of the Methodology
VIII. Adjustment Under Section 777(A)(f) of the Act
IX. Adjustments to Cash Deposit Rates for Export Subsidies
X. Conclusion
[FR Doc. 2019-13983 Filed 6-28-19; 8:45 am]
BILLING CODE 3510-DS-P