[Federal Register Volume 86, Number 224 (Wednesday, November 24, 2021)]
[Notices]
[Pages 67022-67023]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25657]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-038, C-570-039]


Certain Amorphous Silica Fabric Between 70 and 90 Percent Silica, 
From the People's Republic of China: Initiation of Circumvention 
Inquiry of Antidumping and Countervailing Duty Orders--70-90 Percent 
Amorphous Silica Fabric

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

SUMMARY: In response to allegations of circumvention from Auburn 
Manufacturing, Inc. (AMI), the Department of Commerce (Commerce) is 
initiating a country-wide circumvention inquiry to determine whether 
imports of certain amorphous silica fabric with 70-90 percent silica 
content (70-90 percent ASF) from the People's Republic of China (China) 
are circumventing the antidumping duty (AD) and countervailing duty 
(CVD) orders on certain amorphous silica fabric with a silica content 
of at least 90 percent from China.

DATES: Effective November 24, 2021.

FOR FURTHER INFORMATION CONTACT: Margaret Collins, 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) 482-6250.

SUPPLEMENTARY INFORMATION:

Background

    On August 20, 2021, Auburn Manufacturing, Inc. (AMI), the 
petitioner in the AD and CVD investigations, requested that Commerce 
initiate circumvention inquiries with regard to 70-90 percent ASF that 
is exported to the United States from China.\1\ The petitioner alleges 
that 70-90 percent ASF constitutes merchandise altered in form or 
appearance in such minor respects that it should be included within the 
scope of the Orders,\2\ pursuant to section 781(c) of the Tariff Act of 
1930, as amended (the Act) and 19 CFR 351.225(i). In addition, the 
petitioner alleges that 70-90 percent ASF is later-developed 
merchandise and should be included within the scope of the Orders, 
pursuant to section 781(d) of the Act and 19 CFR 351.225(j). No 
interested parties submitted comments in response to this request for 
an inquiry.
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    \1\ See Petitioner's Letter, ``Certain Amorphous Silica Fabric 
from the People's Republic of China: Request for Anti-Circumvention 
Inquiry,'' dated August 20, 2021.
    \2\ See Certain Amorphous Silica Fabric from the People's 
Republic of China: Antidumping Duty Order, 82 FR 14314 (March 17, 
2017); see also Certain Amorphous Silica Fabric from the Peoples' 
Republic of China: Countervailing Duty Order, 82 FR 14316 (March 27, 
2017) (Orders).
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Scope of the Orders

    The product subject to these Orders is amorphous silica fabric with 
silica content of at least 90 percent from China. For a complete 
description of the scope of the Orders, see the Initiation Decision 
Memorandum dated concurrently with this notice.\3\
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    \3\ See Memorandum, ``Decision Memorandum for Initiation of 
Anti-Circumvention Inquiry,'' dated concurrently with and hereby 
adopted by this notice (Initiation Decision Memorandum).
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Merchandise Subject to the Circumvention Inquiry

    This circumvention inquiry covers amorphous silica fabric with 
silica content between 70 and 90 percent produced in China and exported 
to the United States.

Legal Framework

    Section 781(c) of the Act provides that Commerce may find 
circumvention of an AD or CVD order when merchandise of the same class 
or kind as

[[Page 67023]]

merchandise has been ``altered in form or appearance in minor respects 
. . . whether or not included in the same tariff classification.'' 
Section 781(c)(2) of the Act provides an exception that 
``{p{time} aragraph 1 shall not apply with respect to altered 
merchandise if the administering authority determines that it would be 
unnecessary to consider the altered merchandise within the scope of the 
{order{time} .'' While the Act is silent regarding the factors to 
consider in determining whether alterations are properly considered 
``minor,'' the legislative history of this provision indicates that 
there are certain factors that should be considered before reaching a 
circumvention determination. In conducting a circumvention inquiry 
under section 781(c) of the Act, Commerce has generally relied upon 
``such criteria as the overall physical characteristics of the 
merchandise, the expectations of the ultimate users, the use of the 
merchandise, the channels of marketing and the cost of any modification 
relative to the total value of the imported products.'' \4\ Concerning 
the allegation of minor alteration under section 781(c) of the Act and 
19 CFR 351.225(i), Commerce examines such factors as: (1) Overall 
physical characteristics; (2) expectations of ultimate users; (3) use 
of merchandise; (4) channels of marketing; and, (5) cost of any 
modification relative to the value of the imported products.\5\
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    \4\ See Carbon and Certain Alloy Steel Wire Rod from Mexico: 
Initiation of Anti-Circumvention Inquiry of Antidumping Duty Order, 
83 FR 5405 (February 7, 2018) (citing S. Rep. No. 71, 100th Cong., 
1st Sess. 100 (1987)).
    \5\ Id.; see also Deacero S.A. de C.V. v. United States, 817 
F.3d 1332 (Fed. Cir. 2016).
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    Section 781(d) of the Act provides that Commerce may initiate an 
circumvention inquiry to determine whether merchandise developed after 
an AD or CVD investigation is within the scope of the order(s). In 
conducting later-developed merchandise inquiries under section 
781(d)(1) of the Act, Commerce will evaluate whether: (1) The general 
physical characteristics of the merchandise subject to the inquiry are 
the same as subject merchandise covered by the order(s); (2) the 
expectations of the ultimate purchasers of the merchandise subject to 
the inquiry are no different to the expectations of the ultimate 
purchasers of subject merchandise; (3) the ultimate use of the inquiry 
merchandise and subject merchandise are the same; (4) the channels of 
trade of both products are the same; and, (5) there are any differences 
in the advertisement and display of both products.\6\ First, however, 
Commerce applies a commercial availability test to determine whether 
the merchandise subject to the inquiry was commercially available at 
the time of the investigation(s) (i.e., the product was present in the 
commercial market or the product was tested and ready for commercial 
production).\7\
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    \6\ See section 781(d)(1) of the Act.
    \7\ See Later-Developed Anticircumvention Inquiry of the 
Antidumping Duty Order on Petroleum Wax Candles from the People's 
Republic of China: Affirmative Preliminary Determination of 
Circumvention of Antidumping Duty Order, 71 FR 32033, 32035 (June 2, 
2006), unchanged in Later-Developed Merchandise Anticircumvention 
Inquiry of the Antidumping Duty Order on Petroleum Wax Candles from 
the People's Republic of China: Affirmative Final Determination of 
Circumvention of the Antidumping Duty Order, 71 FR 59075 (October 6, 
2006).
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Analysis

    After analyzing the record evidence and the petitioner's 
allegation, we determine that there is sufficient information to 
warrant the initiation of a minor alterations circumvention inquiry, 
pursuant to section 781(c) of the Act and 19 CFR 351.225(i). However, 
we determine that initiation of a later-developed merchandise 
circumvention inquiry, pursuant to section 781(d) of the Act and 19 CFR 
351.225(j), is not warranted. For a full discussion of the basis for 
our decision to initiate a minor alterations circumvention inquiry, but 
not a later-developed merchandise circumvention inquiry, see the 
Initiation Decision Memorandum. The Initiation Decision Memorandum is a 
public document, 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. In addition, a complete version of the 
Initiation Decision Memorandum can be accessed directly at http://access.trade.gov/public/FRNoticesListLayout.aspx.

Conclusion

    Commerce will determine whether the merchandise subject to the 
inquiry (as described in the ``Merchandise Subject to the Anti-
Circumvention Inquiry'' section above) is circumventing the Orders such 
that it should be included within the scope of the Orders, pursuant to 
section 781(c) of the Act and 19 CFR 351.225(i).
    In accordance with 19 CFR 351.225(l)(2), if Commerce issues a 
preliminary affirmative determination, we will then instruct U.S. 
Customs and Border Protection to suspend liquidation and require a cash 
deposit of estimated duties, at the applicable rate, for each 
unliquidated entry of the merchandise at issue entered or withdrawn 
from warehouse for consumption on or after the date of publication in 
the Federal Register of the initiation of the inquiry.
    Commerce will establish a schedule for questionnaires and comments 
on the issues related to the inquiry. In accordance with section 781(f) 
of the Act, to the maximum extent practicable, Commerce intends to 
issue its final determination within 300 days of the date of 
publication of this initiation.

Notification to Interested Parties

    This notice is published in accordance with sections 781(c) of the 
Act and 19 CFR 351.225(i).

    Dated: November 18, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, Performing the 
Non-Exclusive Functions and Duties of the Assistant Secretary for 
Enforcement and Compliance.
[FR Doc. 2021-25657 Filed 11-23-21; 8:45 am]
BILLING CODE 3510-DS-P