[Federal Register Volume 87, Number 16 (Tuesday, January 25, 2022)]
[Notices]
[Pages 3765-3767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01338]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-900]


Granular Polytetrafluoroethylene Resin From India: Final 
Affirmative Countervailing Duty Determination and Final Affirmative 
Critical Circumstances Determination

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


[[Page 3766]]


SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of granular polytetrafluoroethylene (PTFE) resin from India.

DATES: Applicable January 25, 2022.

FOR FURTHER INFORMATION CONTACT: Josh Simonidis or Janae Martin, 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) 482-0608 or (202) 
482-0238, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 6, 2021, Commerce published its Preliminary 
Determination.\1\ On October 1, 2021, Commerce released its Post-
Preliminary Analysis.\2\ For a complete description of the events that 
followed the Preliminary Determination and Post-Preliminary Analysis, 
see the Issues and Decision Memorandum.\3\ The Issues and Decision 
Memorandum is a public document and is made available to the public 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. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \1\ See Granular Polytetrafluoroethylene Resin from India: 
Preliminary Affirmative Countervailing Duty Determination, 
Preliminary Affirmative Critical Circumstances Determination, and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 86 FR 35479 (July 6, 2021) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ See Memorandum, ``Post-Preliminary Analysis of 
Countervailing Duty Investigation,'' dated October 4, 2021 (Post-
Preliminary Analysis).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Granular Polytetrafluoroethylene Resin from 
India,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is April 1, 2019, through March 31, 
2020.

Scope of the Investigation

    The product covered by this investigation is granular PTFE resin 
from India. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    No interested party commented on the scope of the investigation as 
it appeared in the Preliminary Determination. Therefore, no changes 
were made to the scope of the investigation.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs that were submitted by parties in this 
investigation are addressed in the Issues and Decision Memorandum. For 
a list of the issues raised by interested parties and addressed in the 
Issues and Decision Memorandum, see Appendix II to this notice.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce determines that there 
is a subsidy, i.e., a financial contribution by an ``authority'' that 
gives rise to a benefit to the recipient, and that the subsidy is 
specific.\4\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \4\ 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.
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    In making this final determination, Commerce relied, in part, on 
the facts otherwise available on the record pursuant to section 776(a) 
of the Act. Additionally, as discussed in the Issues and Decision 
Memorandum, because the Government of India did not act to the best of 
its ability in responding to our requests for information, we drew 
adverse inferences, where appropriate, in selecting from among the 
facts otherwise available, pursuant to section 776(b) of the Act. For 
further information, see the section ``Use of Facts Otherwise Available 
and Adverse Inferences'' in the accompanying Issues and Decision 
Memorandum.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\5\
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    \5\ See Commerce's Letter, ``In Lieu of On-Site Verification 
Questionnaire,'' dated October 21, 2021; see also GFCL's Letter, 
``In Lieu of Verification Questionnaire Response,'' dated November 
15, 2021.
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Final Affirmative Determination of Critical Circumstances

    In accordance with section 703(e) of the Act and 19 CFR 351.206, 
Commerce preliminarily determined that critical circumstances exist for 
Gujarat Fluorochemicals Limited (GFCL).\6\ Commerce did not receive any 
comments in response to its preliminary determination with respect to 
critical circumstances. That determination remains unchanged, and a 
discussion of our final critical circumstances determination can be 
found in the Issues and Decision Memorandum.
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    \6\ See Preliminary Determination PDM at 3-5.
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Changes Since the Preliminary Determination and Post-Preliminary 
Analysis

    Based on our review and analysis of the comments received from 
parties, we made certain changes to GFCLs preliminary subsidy rate 
calculations. For a discussion of these changes, see the Issues and 
Decision Memorandum.

All-Others Rate

    We continue to determine the all-others rate using the individual 
estimated subsidy rate determined for GFCL, the only individually 
examined exporter/producer in this investigation, in accordance with 
section 705(c)(5)(A)(i) of the Act.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                                                                rate ad
                           Company                              valorem
                                                               (percent)
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Gujarat Fluorochemicals Limited \7\.........................       31.89
All Others..................................................       31.89
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Disclosure
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    \7\ Commerce has found the following companies to be cross-owned 
with GFCL: Inox Leasing Finance Limited and Inox Wind Limited.
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    Commerce intends to disclose to interested parties the calculations 
and analysis performed in this final determination within five days of 
any public announcement or, if there is no public announcement, within 
five days of the date of the publication of this notice in the Federal 
Register, in accordance with 19 CFR 351.224(b).

[[Page 3767]]

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed 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 April 7, 2021, which is 90 days before the date of publication of 
the Preliminary Determination in the Federal Register. In accordance 
with section 703(d) of the Act, effective November 3, 2021, we 
instructed CBP to discontinue the suspension of liquidation of all 
entries of subject merchandise, but to continue the suspension of 
liquidation of all entries of subject merchandise between April 7, 2021 
and November 2, 2021.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, reinstate the suspension of liquidation under section 706(a) of 
the Act, and require a cash deposit of estimated countervailing duties 
for entries of subject merchandise in the amounts indicated above, in 
accordance with section 706(a) of the Act. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated, and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of granular 
PTFE resin from India. As Commerce's final determination is 
affirmative, in accordance with section 705(b) of the Act, the ITC will 
determine, within 45 days, whether the domestic industry in the United 
States is materially injured or threatened with material injury. In 
addition, we are making available to the ITC all non-privileged and 
nonproprietary information related to this investigation. We will allow 
the ITC access to all privileged and business proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under an administrative protective 
order (APO), without the written consent of the Assistant Secretary for 
Enforcement and Compliance.

Notification Regarding APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed 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 an APO 
is a violation which is subject to sanction.

Notification to Interested Parties

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

    Dated: January 18, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The product covered by this investigation is granular 
polytetrafluoroethylene (PTFE) resin. Granular PTFE resin is covered 
by the scope of this investigation whether filled or unfilled, 
whether or not modified, and whether or not containing co-polymer, 
additives, pigments, or other materials. Also included is PTFE wet 
raw polymer. The chemical formula for granular PTFE resin is C2F4, 
and the Chemical Abstracts Service (CAS) Registry number is 9002-84-
0.
    Subject merchandise includes material matching the above 
description that has been finished, packaged, or otherwise processed 
in a third country, including by filling, modifying, compounding, 
packaging with another product, or performing any other finishing, 
packaging, or processing that would not otherwise remove the 
merchandise from the scope of the investigation if performed in the 
country of manufacture of the granular PTFE resin.
    The product covered by this investigation does not include 
dispersion or coagulated dispersion (also known as fine powder) 
PTFE.
    PTFE further processed into micropowder, having particle size 
typically ranging from 1 to 25 microns, and a melt-flow rate no less 
than 0.1 gram/10 minutes, is excluded from the scope of this 
investigation.
    Granular PTFE resin is classified in the Harmonized Tariff 
Schedule of the United States (HTSUS) under subheading 3904.61.0010. 
Subject merchandise may also be classified under HTSUS subheading 
3904.69.5000. Although the HTSUS subheadings and CAS Number are 
provided for convenience and customs purposes, the written 
description of the scope is dispositive.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Final Determination of Critical Circumstances
V. Subsidies Valuation
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether Production of Wind Energy Supplied by Inox 
Wind Limited Is Primarily Dedicated
    Comment 2: Whether the Mumbai Benchmark Is Comparable in 
Calculating State Industrial Development Corporation's (SIDC's) 
Provision of Land for Less Than Adequate Remuneration (LTAR) 
Benefits
    Comment 3: Whether the Mumbai Benchmark Is Aberrational in 
Calculating SIDC's Provision of Land for LTAR Benefits
    Comment 4: Whether Commerce Should Correct Its Land Benefit 
Calculations
    Comment 5: Whether Commerce Should Apply Adverse Facts Available 
to the Programs Under the State Government of Madhya Pradesh 
Industrial Promotion Act and the Merchandise Export from India 
Scheme Program
    Comment 6: Whether the Advanced Authorization Program and Duty 
Drawback Programs Are Countervailable
    Comment 7: Whether Renewable Energy Certificates Provide a 
Financial Contribution
    Comment 8: Whether Commerce Should Correct Its Electricity Duty 
Exemption Calculations
VIII. Recommendation
[FR Doc. 2022-01338 Filed 1-24-22; 8:45 am]
BILLING CODE 3510-DS-P