[Federal Register Volume 87, Number 171 (Tuesday, September 6, 2022)]
[Notices]
[Pages 54458-54460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19124]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-038, C-570-039]
Certain Amorphous Silica Fabric From the People's Republic of
China: Preliminary Affirmative Determinations of Circumvention
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that amorphous silica fabric with 70-90 percent silica
content (70-90 percent ASF) from the People's Republic of China (China)
is circumventing the antidumping duty (AD) and countervailing duty
(CVD) orders on certain amorphous silica fabric (ASF) from China.
DATES: Applicable September 6, 2022.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold, AD/CVD Operations,
Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1121.
SUPPLEMENTARY INFORMATION:
Background
On March 27, 2017, Commerce published the AD and CVD orders on
imports of ASF from China.\1\ On August 20, 2021, Auburn Manufacturing,
Inc., 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.\2\ In its
allegation, Auburn Manufacturing, Inc. (the petitioner) alleged 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, 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
alleged 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). The petitioner requested that
Commerce conduct these circumvention inquiries on an order-wide
basis.\3\
---------------------------------------------------------------------------
\1\ See Certain Amorphous Silica Fabric from the People's
Republic of China: Antidumping Duty Order, 82 FR 14314 (March 17,
2017); and Certain Amorphous Silica Fabric from the People's
Republic of China: Countervailing Duty Order, 82 FR 14316 (March 17,
2017) (collectively, Orders).
\2\ See Petitioner's Letter, ``Certain Amorphous Silica Fabric
from the People's Republic of China: Request for Anti-Circumvention
Inquiry,'' dated August 20, 2021 (Petitioner's Request).
\3\ Id. at 2.
---------------------------------------------------------------------------
On November 24, 2021, Commerce published in the Federal Register
the notice of initiation of these circumvention inquiries.\4\ In that
notice, Commerce initiated the circumvention inquiries on the basis of
the minor alterations allegation, pursuant to section 781(c) of the Act
and 19 CFR 351.225(i).\5\ However, Commerce declined to initiate the
circumvention inquiries on the basis of the later-developed merchandise
allegation, pursuant to section 781(d) of the Act and 19 CFR
351.225(j).\6\ Commerce initiated the inquiries on a country-wide
basis.
---------------------------------------------------------------------------
\4\ See 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, 86 FR 67022 (November
24, 2021) (Initiation Notice), and accompanying Initiation Decision
Memorandum. Although Commerce recently published revisions to its
circumvention regulations, under 19 CFR 351.226, the new
circumvention regulations apply to circumvention inquiries for which
a circumvention request is filed on or after November 4, 2021. See
Regulations to Improve Administration and Enforcement of Antidumping
and Countervailing Duty Laws, 86 FR 52300 (September 20, 2021)
(``{a{time} mendments to Sec. 351.226 . . . apply to circumvention
inquiries for which a circumvention request is filed . . . on or
after November 4, 2021''). Because Auburn Manufacturing, Inc. (the
petitioner) filed its request on August 20, 2021, before the
effective date of the new regulations, these circumvention inquiries
are being conducted according to the circumvention regulations, 19
CFR 351.226, in effect prior to November 4, 2021. Id.
\5\ Initiation Notice, 86 FR at 67023.
\6\ Id.
---------------------------------------------------------------------------
For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\7\ A list of topics
[[Page 54459]]
included in the Preliminary Decision Memorandum is included in the
appendix to this notice.
---------------------------------------------------------------------------
\7\ See Memorandum, ``Certain Amorphous Silica Fabric from the
People's Republic of China: Preliminary Affirmative Determination of
Circumvention for 70-90 Percent Amorphous Silica Fabric,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
---------------------------------------------------------------------------
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 https://access.trade.gov. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
Scope of the Orders
The product subject to the Orders is amorphous silica fabric with a
minimum silica content of 90 percent by weight, from China. For a
complete description of the scope of the Orders, see the Preliminary
Decision Memorandum.
Merchandise Subject to the Scope and Anti-Circumvention Inquiries
This circumvention inquiry covers amorphous silica fabric with
silica content between 70 and 90 percent produced in China and exported
to the United States.
Affirmative Preliminary Determination of Circumvention
As detailed in the Preliminary Decision Memorandum, we
preliminarily determine that 70-90 percent ASF produced in China and
exported to the United States is circumventing the Orders. We make this
determination on a country-wide basis. As a result, we preliminarily
determine that it is appropriate to include this merchandise within the
Orders and to instruct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of 70 and 90 percent ASF produced in
China and exported to the United States, and to require cash deposits
of estimated antidumping and countervailing duties.
Methodology
Commerce made these preliminary affirmative determinations of
circumvention in accordance with section 781(c) of the Act and 19 CFR
351.225(i). We relied on facts available, under section 776(a) of the
Act, and drew adverse inferences in selecting from among the facts
available, under section 776(b) of the Act. We identified potential
producers and/or exporters of 70-90 percent ASF produced in China and
exported to the United States based on information submitted by the
petitioner,\8\ and by reviewing CBP entry data.\9\ We issued
questionnaires requesting the quantity and value (Q&V) of production
and exports of 70-90 percent ASF produced in China and exported to the
United States and related information, from the top 10 producers (by
export quantity) represented in these CBP data.\10\ None of the 10
companies to which we issued Q&V questionnaires responded in full.
Seven companies received the Q&V questionnaire and did not provide a
response.\11\ One company, New Fire Co., Ltd. (New Fire), provided a
partial response, but failed to provide a full response or seek a
further extension, by the relevant deadline.\12\ For two companies, the
Q&V questionnaires remains ``in-transit.'' \13\
---------------------------------------------------------------------------
\8\ See Petitioner's Request at 10-11.
\9\ See Memorandum, ``Certain Amorphous Silica Fabric from the
People's Republic of China: Release of U.S. Customs and Border
Protection Data,'' dated February 24, 2022.
\10\ See Commerce's Letter, ``Circumvention Inquiry of the
Antidumping and Countervailing Duty Orders on Certain Amorphous
Silica Fabric from the People's Republic of China: Quantity and
Value Questionnaire,'' dated March 17, 2022; see also Memorandum,
``Certain Amorphous Silica Fabric from the People's Republic of
China: Q&V Questionnaire Respondents and Tracking of Delivery,''
dated concurrently with this preliminary determination (Q&V
Respondents and Delivery Tracking Memorandum).
\11\ See Q&V Respondents and Delivery Tracking Memorandum; see
also Preliminary Decision Memorandum.
\12\ See New Fire's Letter, ``Circumvention Inquiry of the
Antidumping and Countervailing Duty Orders on Certain Amorphous
Silica Fabric from the People's Republic of China: Submission of
Quantity and Value Response,'' dated May 25, 2022; see also
Preliminary Decision Memorandum.
\13\ See Q&V Respondents and Delivery Tracking Memorandum at
Attachment III.
---------------------------------------------------------------------------
Therefore, we preliminarily find that the seven companies and New
Fire, the companies that received the Q&V Questionnaires, but which did
not respond to our requests for information in full, failed to provide
necessary information, withheld information requested by Commerce, and
significantly impeded this proceeding by not submitting the requested
information. Thus, we further find that they failed to cooperate to the
best of their abilities, by not providing the relevant information or
seeking an extension prior to the relevant deadline, and we have relied
on an adverse inference when selecting from among the facts otherwise
available on the record for certain aspects of this preliminary
determination, pursuant to sections 776(a) and (b) of the Act. As
adverse facts available, we preliminarily determine the eight companies
that produce 70-90 percent ASF in China and exported to the United
States are circumventing the Orders. We further note that the
petitioner (the only party to provide information in these inquiries)
has provided evidence consistent with this finding. Specifically, the
petitioner provided evidence that 70-90 percent ASF are ``articles
altered in form or appearance in minor respects,'' within the meaning
of 19 CFR 351.225(i) and section 781(c) of the Act, and that 70-90
percent ASF produced in China and exported to the United States is
circumventing the Orders.\14\ Finally, because none of the companies
that were mailed a Q&V questionnaire fully responded, Commerce is
making this circumvention determination on a country-wide basis.
---------------------------------------------------------------------------
\14\ See Petitioner's Request; see also Preliminary Decision
Memorandum.
---------------------------------------------------------------------------
Suspension of Liquidation
As stated above, Commerce is making preliminary determinations of
circumvention of the Orders on ASF from China for 70-90 percent ASF
produced in China and exported to the United States. Further, we are
making this preliminary determination on a country-wide basis. In
accordance with 19 CFR 351.225(l)(2), Commerce intends to instruct CBP
to suspend liquidation and to require a cash deposit of estimated
antidumping and countervailing duties on unliquidated entries of 70-90
percent ASF produced in China that are entered, or withdrawn from
warehouse, for consumption on or after November 24, 2021, the date of
publication of initiation of the circumvention inquiries in the Federal
Register.\15\ The suspension of liquidation instructions will remain in
effect until further notice. Commerce intends to instruct CBP to
require AD and CVD cash deposits at the applicable rate for each
unliquidated entry of the subject 70-90 percent ASF.
---------------------------------------------------------------------------
\15\ See Initiation Notice.
---------------------------------------------------------------------------
Public Comment
Pursuant to 19 CFR 351.309(c), interested parties may submit case
briefs no later than 21 days after the date of publication of this
notice. Rebuttal briefs, limited to issues raised in case briefs, may
be submitted no later than seven days after the deadline for case
briefs.\16\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in these scope and anti-
circumvention inquiries are encouraged to submit with each argument:
(1) a statement of the issue; (2) a brief summary of the
[[Page 54460]]
argument; and (3) a table of authorities. Note that Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary information, until further notice.\17\
---------------------------------------------------------------------------
\16\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\17\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
---------------------------------------------------------------------------
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:
(1) the party's name, address, and telephone number; (2) the number of
participants; and (3) a list of the issues to be discussed. If a
request for a hearing is made, Commerce intends to hold the hearing at
a time and date to be determined. Parties should confirm by telephone
the date and time of the hearing two days before the scheduled date.
U.S. International Trade Commission Notification
Consistent with section 781(e) of the Act, Commerce has notified
the U.S. International Trade Commission (ITC) of this preliminary
determination to include the merchandise subject to these circumvention
inquiries within the Orders. Pursuant to section 781(e) of the Act, the
ITC may request consultations concerning Commerce's proposed inclusion
of the inquiry merchandise. If, after consultations, the ITC believes
that a significant injury issue is presented by the proposed inclusion,
it will have 60 days from the date of notification by Commerce to
provide written advice.
Final Determinations
According to section 781(f) of the Act, Commerce shall, to the
maximum extent practicable, make its anti-circumvention determination
within 300 days from the date of the initiation of the inquiry.\18\ Due
to the complicated nature of these anti-circumvention inquiries, we are
hereby extending the deadline for the final determinations of these
anti-circumvention inquiries by 73 days. Therefore, Commerce intends to
issue the final determinations of these anti-circumvention inquiries to
December 2, 2022.
---------------------------------------------------------------------------
\18\ See also 19 CFR 351.225(f)(iii)(5) (explaining that
Commerce will issue a final anticircumvention ruling ``normally
within 300 days from the date of the initiation of the . . .
inquiry'').
---------------------------------------------------------------------------
Notification to Interested Parties
This determination is issued and published in accordance with
section 781(c) of the Act and 19 CFR 351.225(i).
Dated: August 26, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiries
V. Statutory and Regulatory Framework
VI. Use of Facts Available and Adverse Inferences
VII. Circumvention Determinations
VIII. Country-Wide Determination
IX. Recommendation
[FR Doc. 2022-19124 Filed 9-2-22; 8:45 am]
BILLING CODE 3510-DS-P