[Federal Register Volume 84, Number 177 (Thursday, September 12, 2019)]
[Notices]
[Pages 48125-48127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19794]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-109]


Ceramic Tile From the People's Republic of China: Preliminary 
Affirmative Countervailing Duty Determination, Preliminary Negative 
Critical Circumstances 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 ceramic tile from the People's Republic of China (China). 
The period of investigation is January 1, 2018 through December 31, 
2018. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable September 12, 2019.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, Moses Song, or John 
McGowan, AD/CVD Operations, Office VI, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
3813, (202) 482-7885, or (202) 482-3019, 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 May 8, 
2019.\1\ On June 24, 2019, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
September 6, 2019.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ 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 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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    \1\ See Ceramic Tile from the People's Republic of China: 
Initiation of Countervailing Duty Investigations, 84 FR 20101 (May 
8, 2019) (Initiation Notice).
    \2\ See Ceramic Tile from the People's Republic of China: 
Postponement of Preliminary Determination in the Countervailing Duty 
Investigation, 84 FR 29497 (June 24, 2019).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination: Countervailing Duty Investigation of 
Ceramic Tile 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 ceramic tile from 
China. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ 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.\6\ 
Commerce is not preliminarily modifying the scope language as it 
appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Ceramic Tile from the People's Republic of 
China: Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated September 6, 2019.
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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 gives 
rise to a benefit to the recipient,

[[Page 48126]]

and that the subsidy is specific.\7\ In making these findings, we 
relied, in part, on facts available and, because one or more 
respondents did not act to the best of their ability to respond to 
Commerce's requests for information, we drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\8\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \7\ 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.
    \8\ See sections 776(a) and (b) of the Act.
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Preliminary Negative Determination of Critical Circumstances

    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that information provided in the critical 
circumstances allegation does not demonstrate the existence of critical 
circumstances with respect to imports of ceramic tile from China. For a 
full description of the methodology and results of Commerce's analysis, 
see the Preliminary Decision Memorandum.

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of ceramic tile from China based on a request 
made by the Coalition for Fair Trade in Ceramic Tile (the 
petitioner).\9\ Consequently, the final CVD determination will be 
issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than January 21, 2020, unless 
postponed.
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    \9\ See Petitioner's Letter, ``Countervailing Duty Investigation 
of Ceramic Tile from the People's Republic of China: Request to 
Align Countervailing Duty Final Determination with Companion 
Antidumping Final Determination,'' dated August 15, 2019.
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All-Others Rate

    Sections 703(d) 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 under section 
776 of the Act. In this investigation, Commerce preliminarily assigned 
a rate based entirely on facts available to Temgoo International 
Trading Limited. Therefore, the only rate that is not zero, de minimis, 
or based entirely on facts otherwise available is the rate calculated 
for Foshan Sanfi Imp & Exp Co., Ltd. (Sanfi). Consequently, the rate 
calculated for Sanfi 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:
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    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found Guangdong Sanfi Ceramics Group Co., Ltd. to be 
cross-owned with Sanfi.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Temgoo International Trading Limited........................      222.24
Foshan Sanfi Imp & Exp Co., Ltd.\10\........................      103.77
All Others..................................................      103.77
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Suspension of Liquidation

    In accordance with section 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.

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

    Case briefs or other written comments 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.\11\ 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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    \11\ 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.

International Trade Commission (ITC) Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the ITC of its 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 pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: September 6, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is ceramic 
flooring tile, wall tile, paving tile, hearth tile, porcelain tile, 
mosaic tile, flags, finishing tile, and the like

[[Page 48127]]

(hereinafter ceramic tile). Ceramic tiles are articles containing a 
mixture of minerals including clay (generally hydrous silicates of 
alumina or magnesium) that are fired so the raw materials are fused 
to produce a finished good that is less than 3.2 cm in actual 
thickness. All ceramic tile is subject to the scope regardless of 
end use, surface area, and weight, regardless of whether the tile is 
glazed or unglazed, regardless of the water absorption coefficient 
by weight, regardless of the extent of vitrification, and regardless 
of whether or not the tile is on a backing. Subject merchandise 
includes ceramic tile with decorative features that may in spots 
exceed 3.2 cm in thickness and includes ceramic tile ``slabs'' or 
``panels'' (tiles that are larger than 1 meter\2\ (11 ft.\2\)).
    Subject merchandise includes ceramic tile that undergoes minor 
processing in a third country prior to importation into the United 
States. Similarly, subject merchandise includes ceramic tile 
produced that undergoes minor processing after importation into the 
United States. Such minor processing includes, but is not limited 
to, one or more of the following: Beveling, cutting, trimming, 
staining, painting, polishing, finishing, additional firing, or any 
other processing that would otherwise not remove the merchandise 
from the scope of the investigation if performed in the country of 
manufacture of the in-scope product.
    Subject merchandise is currently classified in the Harmonized 
Tariff Schedule of the United States (HTSUS) under the following 
subheadings of heading 6907: 6907.21.1005, 6907.21.1011, 
6907.21.1051, 6907.21.2000, 6907.21.3000, 6907.21.4000, 
6907.21.9011, 6907.21.9051, 6907.22.1005, 6907.22.1011, 
6907.22.1051, 6907.22.2000, 6907.22.3000, 6907.22.4000, 
6907.22.9011, 6907.22.9051, 6907.23.1005, 6907.23.1011, 
6907.23.1051, 6907.23.2000, 6907.23.3000, 6907.23.4000, 
6907.23.9011, 6907.23.9051, 6907.30.1005, 6907.30.1011, 
6907.30.1051, 6907.30.2000, 6907.30.3000, 6907.30.4000, 
6907.30.9011, 6907.30.9051, 6907.40.1005, 6907.40.1011, 
6907.40.1051, 6907.40.2000, 6907.40.3000, 6907.40.4000, 
6907.40.9011, and 6907.40.9051. Subject merchandise may also enter 
under subheadings of headings 6914 and 6905: 6914.10.8000, 
6914.90.8000, 6905.10.0000, and 6905.90.0050. The HTSUS subheadings 
are provided for convenience and customs purposes only. The written 
description of the scope of this investigation is dispositive.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Preliminary Negative Determination of Critical Circumstances
VII. Application of the CVD Law to Imports from China
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Diversification of China's Economy
XI. Use of Facts Otherwise Available and Adverse Inferences
XII. Analysis of Programs
XIII. Calculation of the All-Others Rate
XIV. ITC Notification
XV. Disclosure and Public Comment
XVI. Verification
XVII. Recommendation

[FR Doc. 2019-19794 Filed 9-11-19; 8:45 am]
 BILLING CODE 3510-DS-P