[Federal Register Volume 85, Number 92 (Tuesday, May 12, 2020)]
[Notices]
[Pages 27987-27989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10129]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-357-821]
Biodiesel From Argentina: Final Results of Countervailing Duty
Changed Circumstances Review
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: On July 9, 2019, the Department of Commerce (Commerce)
published the preliminary results of the changed circumstances review
(CCR) of the countervailing duty (CVD) order on biodiesel from
Argentina. For these final results, Commerce finds that sufficient
changed circumstances do not exist warranting a recalculation of the
CVD deposit rates in the order.
DATES: Applicable May 12, 2020.
FOR FURTHER INFORMATION CONTACT: Mark Hoadley, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3148.
SUPPLEMENTARY INFORMATION:
Background
On January 4, 2019, Commerce published the CVD order on biodiesel
from Argentina.\1\ On November 13, 2018, in response to a request
submitted by the Government of Argentina (GOA), joined by Vicentin
S.A.I.C. (Vicentin) and LDC Argentina (LDC), Commerce initiated a CCR
for both the CVD and antidumping duty (AD) orders.\2\ 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.\3\ On July 1, 2019,
Commerce issued the Preliminary Results and placed additional
information on the record of the CCR, pursuant to 19 CFR
351.301(c)(4).\4\ On July 5, 2019, Commerce provided interested parties
until July 12, 2019 to place additional information on the record in
order to ``rebut, clarify, or correct'' the information placed on the
record by Commerce.\5\
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\1\ See Biodiesel from the Republic of Argentina and the
Republic of Indonesia: Countervailing Duty Orders, 83 FR 552
(January 4, 2018), corrected by Biodiesel from the Republic of
Argentina and the Republic of Indonesia: Countervailing Duty Orders,
83 FR 3114 (January 23, 2018) (Order).
\2\ See Biodiesel from Argentina: Initiation of Changed
Circumstances Reviews of the Antidumping and Countervailing Duty
Orders, 83 FR 56300 (November 13, 2018).
\3\ See Memorandum, ``Deadlines Affected by the Partial Shutdown
of the Federal Government,'' dated January 28, 2019.
\4\ See Biodiesel from Argentina: Preliminary Results of Changed
Circumstances Reviews of the Antidumping and Countervailing Duty
Orders, 84 FR 32714 (July 9, 2019) (Preliminary Results); see also
Memorandum, ``Additional Information Concerning the Preliminary
Changed Circumstances Reviews of Biodiesel,'' dated July 1, 2019.
\5\ See Memorandum, ``Additional Information Concerning the
Preliminary Changed Circumstances Reviews of Biodiesel,'' dated July
5, 2019.
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On July 12, 2019, the National Biodiesel Board Fair Trade Coalition
(the petitioner), and LDC and Vicentin submitted additional factual
information.\6\ On July 29, 2019, the
[[Page 27988]]
petitioner requested that Commerce conduct a verification of factual
information.\7\ The petitioner claimed that there was ``good cause'' to
request a verification in this CCR because the ``complexity of the
record compel{ed{time} a more thorough understanding of the GOA's
recent export tax modifications.'' \8\ Recognizing that verification
would impede Commerce's ability to meet its original September 19, 2019
deadline, the petitioner also requested an extension of the final
deadline.\9\ On August 2, 2019, Commerce temporarily put a hold on the
deadlines for case and rebuttal briefs.\10\
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\6\ See Petitioner's Letter, ``Biodiesel from Argentina: Factual
Information Pursuant to 19 CFR 301(c)(4),'' dated July 12, 2019; see
also LDC Argentina and Vicentin's Letter, ``Biodiesel from
Argentina: Additional Information Concerning the Preliminary Changed
Circumstances Reviews of Biodiesel,'' dated July 12, 2019.
\7\ See Petitioner's Letter, ``Biodiesel from Argentina:
Petitioner's Request for Verification,'' dated July 29, 2019.
\8\ Id. at 3.
\9\ Id. at 4-5.
\10\ See Memorandum, ``Changed Circumstances Reviews of the
Antidumping and Countervailing Duty Orders on Biodiesel from
Argentina: Holding of Deadlines,'' dated August 2, 2019.
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Commerce issued its verification agenda to the GOA on August 2,
2019.\11\ The petitioner submitted its pre-verification comments on
August 19, 2019.\12\ Commerce conducted its verification of the GOA on
August 26, 2019.\13\ On September 5, 2019, Commerce released its
verification report regarding the GOA.\14\
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\11\ See Memorandum, ``Changed Circumstances Review of the
Countervailing Duty Order on Biodiesel from Argentina; Verification
of Information Submitted by the Government of Argentina,'' dated
August 2, 2019.
\12\ See Petitioner's Letter,'' Biodiesel from Argentina:
Coalition's Comments Regarding Commerce's Verification of Government
of Argentina,'' dated August 19, 2019.
\13\ See Memorandum, ``Changed Circumstances Review of the
Countervailing Duty Order on Biodiesel from Argentina: Verification
Date,'' dated August 7, 2019.
\14\ See Memorandum, ``Changed Circumstances Reviews of the
Antidumping and Countervailing Duty Orders on Biodiesel from
Argentina: Publication of Verification Report and Reinstatement of
Deadlines,'' dated September 5, 2019.
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On September 5, 2019, Commerce reinstated the deadlines for case
and rebuttal briefs.\15\ On September 11, 2019, the petitioner
requested an indefinite suspension of the deadlines for briefs and the
final determination.\16\ The petitioner requested that Commerce accept
new factual information on September 11, 2019.\17\ On September 12,
2019, the GOA responded, stating that a short extension of the
deadlines was acceptable.\18\ On September 12, 2019, Commerce issued a
short extension of deadlines.\19\ Commerce rejected the petitioner's
request to include new factual information on the record on September
18, 2019.\20\
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\15\ See Memorandum, ``Changed Circumstances Reviews of the
Antidumping and Countervailing Duty Orders on Biodiesel from
Argentina: Publication of Verification Report and Reinstatement of
Deadlines,'' dated September 5, 2019.
\16\ See Petitioner's Letter, ``Biodiesel from Argentina:
Request for Meeting and Extension of Briefing Schedule,'' dated
September 11, 2019.
\17\ See Petitioner's Letter, ``Biodiesel from Argentina:
Request to Expand Record to Include Factual Information Regarding
Political Developments in Argentina,'' dated September 11, 2019.
\18\ See GOA's Letter, ``Biodiesel from Argentina: Response from
the GOA to Petitioner's Request for Meeting and Extension of
Briefing Schedule,'' dated September 12, 2019.
\19\ See Memorandum, Changed Circumstances Reviews of the
Antidumping and Countervailing Duty Orders on Biodiesel from
Argentina: Deadline for Case and Rebuttal Briefs and Hearing
Requests; Rejection of New Factual Information,'' dated September
12, 2019.
\20\ See Memorandum, ``Changed Circumstances Review of the
Countervailing Duty Order on Biodiesel from Argentina: Rejection of
Document from the Administrative Record,'' dated September 18, 2019.
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On September 17, 2019, the petitioner requested a public hearing
regarding the CCR.\21\ The petitioner and the GOA submitted case briefs
on September 17, 2019.\22\ On September 23, 2019, the petitioner and
the GOA submitted rebuttal briefs.\23\ Pursuant to the petitioner's
request, Commerce held a public hearing on September 26, 2019.\24\
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\21\ See Petitioner's Letter, ``Biodiesel from Argentina:
Petitioner's Hearing Request,'' dated September 17, 2019.
\22\ See Petitioner's Case Brief, ``Biodiesel from Argentina:
Petitioner's Case Brief,'' dated September 17, 2019; see also GOA's
Case Brief, ``Biodiesel from Argentina Changed Circumstances Review:
Government of Argentina Case Brief and Statement with Respect to
Public Hearing,'' dated September 17, 2019.
\23\ See Petitioner's Rebuttal Brief, ``Biodiesel from
Argentina: Rebuttal Brief on Behalf of the National Biodiesel Board
Fair Trade Coalition,'' dated September 23, 2019 (Petitioner's
Rebuttal Brief); see also GOA's Rebuttal Brief, ``Biodiesel from
Argentina: Rebuttal Brief in AD Changed Circumstances Review,''
dated September 23, 2019.
\24\ See Hearing Transcript, ``In the Matter of: The Changed
Circumstances Review of the Countervailing Duty Order on Biodiesel
from Argentina,'' dated September 26, 2019.
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On October 16, 2019, Commerce placed additional factual information
on the record of this proceeding.\25\ In response, the petitioner
placed additional factual information on the record on October 24,
2019.\26\ Between the time Commerce released its Preliminary Results
and the publication of these Final Results, Commerce has held numerous
phone calls and meetings with parties.\27\
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\25\ See Memorandum, ``Ex Parte Meeting with the National
Biodiesel Board and the American Soybean Association,'' dated
October 16, 2019.
\26\ See Petitioner's Letter, ``Biodiesel from Argentina:
Petitioners' Submission to Rebut, Clarify, or Correct Information
Placed on the Record,'' dated October 24, 2019.
\27\ Memorandum, ``Email Exchange with Governor Kim Reynolds,''
dated July 16, 2019, Memorandum, ``Ex Parte Discussion with Governor
Kim Reynolds,'' dated July 25, 2019, Memorandum, ``Ex Parte
Discussion with Congressman Darin LaHood,'' dated July 25, 2019,
Memorandum, ``Ex Parte Discussion with Senator Alexander's Office,''
dated July 30, 2019, Memorandum, ``Correspondence with Minister
Dante Sica,'' dated August 15, 2019, Memorandum, ``Correspondence
with Several U.S. Senators,'' dated August 15, 2019, Memorandum,
``Ex Parte Discussions with the Government of Argentina,'' dated
August 28, 2019, Memorandum, ``Ex Parte Discussion with National
Biodiesel Board,'' dated September 12, 2019, Memorandum, ``Ex Parte
Meeting with Senator Grassley's Staff Regarding Biodiesel Changed
Circumstances Reviews,'' dated September 27, 2019, Memorandum, ``Ex
Parte Meeting with National Biodiesel Board,'' dated September 30,
2019, Memorandum, ``Ex Parte Meeting with the National Biodiesel
Board and the American Soybean Association,'' dated October 16,
2019, Memorandum, ``Ex Parte Meeting with the Petitioners,'' dated
October 18, 2019, Memorandum, ``Ex Parte Meeting with the Government
of Argentina,'' dated October 18, 2019, Memorandum, ``Telephone call
with Argentine Embassy Official Regarding Changed Circumstances
Reviews (CCR) of Biodiesel from Argentina,'' dated December 9, 2019,
Memorandum, ``Telephone call with Representative Darin LaHood to
discuss Changed Circumstances Review (CCR) of Biodiesel from
Argentina,'' dated November 26, 2019, Memorandum, ``Telephone call
with Senator Chuck Grassley to discuss Changed Circumstances Reviews
(CCR) of Biodiesel from Argentina,'' dated November 26, 2019,
Memorandum, ``Telephone call with Ambassador Fernando Oris de Roa to
discuss Changed Circumstances Reviews (CCR) of Biodiesel from
Argentina,'' dated December 5, 2019, Memorandum, ``Telephone call
with the National Biodiesel Board to discuss Changed Circumstances
Reviews of Biodiesel from Argentina,'' dated December 19, 2019,
Memorandum, ``Telephone call with Senator Chuck Grassley to discuss
Changed Circumstances Reviews of Biodiesel from Argentina,'' dated
December 19, 2019, and Memorandum, ``Telephone call with Congressman
Darin LaHood,'' dated March 19, 2020.
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Scope of the Order
The product covered by the Order is biodiesel from Argentina. For a
complete description of the scope of the Order, see the appendix to
this notice.
Analysis of Comments Received
We addressed all issues raised in the case and rebuttal briefs by
parties to this review in the Issues and Decision Memorandum (I&D
Memo).\28\ Attached to this notice, in Appendix II, is a list of the
issues which parties raised. The I&D Memo is a public document and on
file in the Central Records Unit (CRU), Room B8024 of the main Commerce
building, as well as electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to
[[Page 27989]]
registered users at http://access.trade.gov. In addition, a complete
version of the I&D Memo can be accessed directly on the internet at
http://enforcement.trade.gov/frn/index.html. The signed I&D Memo and
the electronic versions of the I&D Memo are identical in content.
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\28\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of Antidumping Duty Changed Circumstances Review:
Biodiesel from Argentina,'' dated concurrently with, and hereby
adopted by, this notice.
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Final Results of Changed Circumstances Review
Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.216, Commerce has determined that sufficient
changed circumstances warranting a cash deposit adjustment do not
exist. As explained in the I&D Memo, Argentina's export tax regime is
in flux, leading Commerce to conclude that there are not sufficient
changed circumstances to warrant such an adjustment. Therefore,
Commerce is making no changes to the cash deposit rates as listed in
the order.
Administrative Protective Order (APO)
This notice also serves as a reminder to parties subject to APO of
their responsibility concerning the disposition of proprietary
information disclose under APO in accordance with 19 CFR 351.305(a)(3).
Timely written notification of the return/destruction of APO materials
or conversion to judicial protective order is hereby requested. Failure
to comply with the regulations and terms of APO is a sanctionable
violation.
Notification to Interested Parties
We are issuing and publishing these final results and notice in
accordance with sections 751(b)(1) and 777(i) of the Act, and 19 CFR
351.216 and 19 CFR 351.222.
Dated: May 5, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Order
The product covered by this order is biodiesel, which is a fuel
comprised of mono-alkyl esters of long chain fatty acids derived
from vegetable oils or animal fats, including biologically-based
waste oils or greases, and other biologically-based oil or fat
sources. The order covers biodiesel in pure form (B100) as well as
fuel mixtures containing at least 99 percent biodiesel by volume
(B99). For fuel mixtures containing less than 99 percent biodiesel
by volume, only the biodiesel component of the mixture is covered by
the scope of the order.
Biodiesel is generally produced to American Society for Testing
and Materials International (ASTM) D6751 specifications, but it can
also be made to other specifications. Biodiesel commonly has one of
the following Chemical Abstracts Service (CAS) numbers, generally
depending upon the feedstock used: 67784-80-9 (soybean oil methyl
esters); 91051-34-2 (palm oil methyl esters); 91051-32-0 (palm
kernel oil methyl esters); 73891-99-3 (rapeseed oil methyl esters);
61788-61-2 (tallow methyl esters); 68990-52-3 (vegetable oil methyl
esters); 129828-16-6 (canola oil methyl esters); 67762-26-9
(unsaturated alkylcarboxylic acid methyl ester); or 68937-84-8
(fatty acids, C12-C18, methyl ester).
The B100 product subject to the order is currently classifiable
under subheading 3826.00.1000 of the Harmonized Tariff Schedule of
the United States (HTSUS), while the B99 product is currently
classifiable under HTSUS subheading 3826.00.3000. Although the HTSUS
subheadings, ASTM specifications, and CAS numbers are provided for
convenience and customs purposes, the written description of the
scope is dispositive.
Attachment II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Final Results of Review
IV. Discussion of the Issues
Comment 1: Relevance of the GOA's Changes after the Preliminary
Results
Comment 2: Whether Commerce Properly Initiated the CCR
Comment 3: Whether Commerce Properly Conducted the CCR
Comment 4: Whether a Financial Contribution Still Exists
V. Recommendation
[FR Doc. 2020-10129 Filed 5-11-20; 8:45 am]
BILLING CODE 3510-DS-P