[Federal Register Volume 84, Number 223 (Tuesday, November 19, 2019)]
[Notices]
[Pages 63850-63853]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25088]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-097]


Polyester Textured Yarn From the People's Republic of China: 
Final Determination of Sales at Less Than Fair Value, and Final 
Affirmative Determination of Critical Circumstances

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of polyester textured yarn (yarn) from the People's Republic of China 
(China) are being, or are likely to be, sold in the United States at 
less than fair value (LTFV).

DATES: Applicable November 19, 2019.

FOR FURTHER INFORMATION CONTACT: Irene Gorelik, 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.

SUPPLEMENTARY INFORMATION: 

Background

    On July 1, 2019, Commerce published in the Federal Register its 
preliminary affirmative determination in the LTFV investigation of yarn 
from China and invited parties to comment.\1\ A summary of the events 
that occurred since Commerce published the Preliminary Determination 
may be found in the Issues and Decision Memorandum.\2\
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    \1\ See 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, 84 FR 31297 (July 1, 2019) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative 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 (Issues and Decision Memorandum).
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    The Issues and 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 
to all parties in the Central Records Unit, Room B8024 of the main 
Commerce building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Issues and Decision Memorandum are identical in content.

Period of Investigation

    The period of investigation is April 1, 2018 through September 30, 
2018.

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.

Scope Comments

    During the course of this investigation and the concurrent 
countervailing duty (CVD) investigation of yarn from China, and 
concurrent antidumping duty (AD) and CVD investigations of yarn from 
India, certain interested parties commented on the scope of the 
investigations as it appeared in the Initiation Notice.\3\ Commerce 
addressed

[[Page 63851]]

these comments in the Preliminary Determination, wherein Commerce 
preliminarily modified the scope language as it appeared in the 
Initiation Notice to exclude bulk continuous filament yarn.\4\ No 
interested parties commented on the preliminary exclusion of bulk 
continuous filament yarn. Thus, we have made no changes to the scope 
language from the Preliminary Determination with regard to bulk 
continuous filament yarn.
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    \3\ See Polyester Textured Yarn from India and the People's 
Republic of China: Initiation of Less-Than-Fair-Value 
Investigations, 83 FR 58223, 58233 (November 19, 2018) (Initiation 
Notice).
    \4\ See Preliminary Determination, 84 FR at 31298.
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    In the Preliminary Determination, we also noted that, on May 2, 
2019, the petitioners \5\ requested that Commerce include an additional 
Harmonized Tariff Schedule of the United States (HTSUS) subheading in 
the scope language.\6\ We stated our intent to address this request in 
the final determinations of this and the above-referenced concurrent 
investigations. Specifically, the petitioners requested that Commerce 
add HTSUS 5402.52.00 covering twisted yarn to the scope of the 
investigations.\7\ As no interested parties rebutted the petitioners' 
request to add this HTSUS subheading, and Commerce finds the 
petitioners' request is reasonable, we have revised the scope of the 
investigations to include HTSUS 5402.52.00. See Appendix I for the 
final scope of the investigation.
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    \5\ Unifi Manufacturing, Inc., and Nan Ya Plastics Corporation, 
America are, collectively, the petitioners.
    \6\ See Preliminary Determination, 84 FR at 31298.
    \7\ See Petitioners' Comments, ``Request to Include HTSUS 
Subheading 5402.52 in the Scope of These Investigations,'' dated May 
2, 2019.
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Final Affirmative Determination of Critical Circumstances

    On April 18, 2019, Commerce issued its preliminary determination 
that critical circumstances exist for imports from all producers and 
exporters of yarn from China.\8\ 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 yarn from 
China that were entered, or withdrawn from warehouse, for consumption 
on or after the date which is 90 days before the publication of the 
Preliminary Determination, April 2, 2019.\9\ For this final 
determination, we continue to find that critical circumstances exist 
for all imports of yarn from China, pursuant to section 735(a)(3) of 
the Act and 19 CFR 351.206.
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    \8\ 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).
    \9\ See Preliminary Determination, 84 FR at 31299.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of the issues addressed in the Issues 
and Decision Memorandum is attached to this notice at Appendix II.

China-Wide Entity

    For the final determination, we continue to find that the China-
wide entity, which includes certain Chinese exporters and/or producers 
that did not respond to Commerce's requests for information, failed to 
provide necessary information, failed to provide information in a 
timely manner, and significantly impeded the proceeding. Commerce 
continues to rely upon facts otherwise available, with adverse 
inferences (AFA), for the China-wide entity pursuant to sections 776(a) 
and (b) of the Tariff Act of 1930, as amended (the Act). The China-wide 
entity includes each of the following 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 AFA, we 
continue to assign the highest margin alleged in the Petition of 77.15 
percent.\10\
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    \10\ 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; and Initiation Checklist, 
dated November 7, 2018, at 12.
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Separate Rates

    For the final determination, we continue to find that one exporter, 
Jiangsu Hengli Chemical Fiber Co., Ltd. (Hengli), which was not 
selected for individual examination in this investigation, demonstrated 
eligibility for a separate rate. In the Preliminary Determination, we 
stated that, because none of the mandatory respondents received a 
separate rate and we determined the China-wide rate based on AFA, we 
looked to section 735(c)(5)(B) of the Act for guidance and, consistent 
with that provision, used ``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 
found it appropriate to assign the simple average of the Petition rates 
(i.e., 76.07 percent) \11\ to Hengli, the separate rate applicant not 
individually examined, consistent with our practice.\12\ For the final 
determination, we continue to find the method applied in the 
Preliminary Determination to be the most reasonable, and thus, continue 
to assign the simple average of the Petition rates to Hengli.
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    \11\ See Preliminary Determination, 84 FR at 31298. 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.
    \12\ See, e.g., Certain Steel Wheels 12 to 16.5 Inches in 
Diameter from the People's Republic of China: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, and 
Preliminary Affirmative Determination of Critical Circumstances, 84 
FR 16643 (April 22, 2019) (``As `any reasonable method,' we find it 
appropriate to assign the simple average of the Petition rates . . . 
to Chungang Machinery, the separate rate applicant not individually 
examined.''), unchanged in Certain Steel Wheels 12 to 16.5 Inches in 
Diameter From the People's Republic of China: Final Affirmative 
Determination of Sales at Less Than Fair Value, and Final 
Affirmative Determination of Critical Circumstances, 84 FR 32707 
(July 9, 2019).
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Combination Rates

    As explained in the Initiation Notice and implemented in the 
Preliminary Determination, we have continued to calculate producer/
exporter combination rates for the respondents that are eligible for a 
separate rate.\13\ Policy Bulletin 05.1 describes this practice.\14\
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    \13\ See Initiation Notice, 83 FR at 58227; see also Preliminary 
Determination, 84 FR at 31299.
    \14\ 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,'' (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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Final Determination

    The final estimated dumping margins are as follows:

[[Page 63852]]



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                                                                                               Cash deposit rate
                                                                            Estimated dumping    (adjusted for
                  Producer                              Exporter             margin (percent)    export subsidy
                                                                                               offset) (percent)
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Jiangsu Hengli Chemical Fiber Co., Ltd.....  Jiangsu Hengli Chemical Fiber              76.07              65.39
                                              Co., Ltd.
rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
                          China-Wide Entity \15\                                        77.15              66.47
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Disclosure

    As we stated in the Preliminary Determination, because Commerce has 
continued to apply AFA to the China-wide entity, of which 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 was a simple average of the 
Petition rates, there are no calculations to disclose.\16\
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    \15\ 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.
    \16\ See Preliminary Determination, 84 FR at 31298-99.
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Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of yarn from China, as 
described in Appendix I, from the separate rate company, Hengli, and 
the China-wide entity, and, in accordance with section 735(c)(4) of the 
Act, because we continue to find that critical circumstances exist, we 
will instruct CBP to continue to suspend liquidation of all appropriate 
entries of yarn from China which were entered, or withdrawn from 
warehouse, for consumption on or after April 2, 2019, which is 90 days 
prior to the date of publication of the Preliminary Determination in 
the Federal Register.
    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 makes an affirmative determination for domestic subsidy 
pass-through or export subsidies, Commerce offsets the calculated 
estimated weighted-average dumping margin by the appropriate rate(s). 
We have made an affirmative final determination for export subsidies 
for certain respondents and all others in the companion CVD 
investigation.\17\ However, suspension of liquidation for provisional 
measures in the companion CVD case has been discontinued; therefore, we 
are not instructing CBP to collect cash deposits based upon the 
adjustment for those export subsidies at this time.
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    \17\ The following subsidy programs in the final determination 
of the concurrent CVD investigation are export subsidies calculated 
for Fujian Billion: 0.14 percent (Export Assistance Grants) and 
10.54 percent (Export Buyer's Credit), resulting in a total export 
subsidy rate of 10.68 percent. See Polyester Textured Yarn from the 
People's Republic of China: Final Affirmative Countervailing Duty 
Determination and Final Affirmative Determination of Critical 
Circumstances (unpublished), and accompanying Issues and Decision 
Memorandum. The final determination in this companion CVD proceeding 
will be concurrently released on the same day as this final 
determination.
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    Pursuant to section 735(c)(1)(B)(ii) of the Act, Commerce will 
instruct CBP to require a cash deposit equal to the weighted-average 
amount by which normal value exceeds U.S. price as follows: (1) The 
cash deposit rate for the exporter/producer combination listed in the 
table above will be the rate identified for that combination in the 
table; (2) for all combinations of exporters/producers of merchandise 
under consideration that have not received their own separate rate 
above, the cash-deposit rate will be the cash deposit rate established 
for the China-wide entity; and (3) for all non-Chinese exporters of the 
merchandise under consideration which have not received their own 
separate rate above, the cash-deposit rate will be the cash deposit 
rate applicable to the Chinese exporter/producer combination that 
supplied that non-Chinese exporter. These suspension of liquidation 
instructions will remain in effect until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determination as to whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of imports or sales (or the likelihood of 
sales) for importation of yarn from China, no later than 45 days after 
this final determination. If the ITC determines that such injury does 
not exist, this proceeding will be terminated and all cash deposits 
posted will be refunded. If the ITC determines that such injury does 
exist, Commerce will issue an antidumping duty order directing CBP to 
assess, upon further instruction by Commerce, antidumping duties on all 
imports of yarn from China entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice will serve as a final reminder to the parties subject 
to administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305. Timely written notification of 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).


[[Page 63853]]


    Dated: November 13, 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). Merchandise 
subject to this investigation may also enter under HTSUS subheading 
5402.52.00. 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 Issues and Decision 
Memorandum

I. Summary
II. Background
III. Discussion of the Issues
    Comment 1: Separate Rate Status of Fujian Billion Polymerization 
Fiber Technology Industrial Co., Ltd.
    Comment 2: Authority to Collect Cash Deposits Based Upon an 
Affirmative Preliminary Critical Circumstances Determination
IV. Recommendation

[FR Doc. 2019-25088 Filed 11-18-19; 8:45 am]
 BILLING CODE 3510-DS-P