[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]


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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\
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    \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.
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    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.
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    \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.
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    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.
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    \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).
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    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\
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    \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.
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    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.
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    \14\ See Petitioner's Request; see also Preliminary Decision 
Memorandum.
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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.
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    \15\ See Initiation Notice.
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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\
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    \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).
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    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.
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    \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'').
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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