[Federal Register Volume 84, Number 223 (Tuesday, November 19, 2019)]
[Notices]
[Pages 63845-63848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25041]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-098]
Polyester Textured Yarn From the People's Republic of China:
Final Affirmative Countervailing Duty Determination and Final
Affirmative Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of polyester textured yarn (yarn) from the People's Republic of China
(China).
DATES: Applicable November 19, 2019.
FOR FURTHER INFORMATION CONTACT: Joseph Dowling or Robert Palmer, 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) 482-1646 or (202)
482-9068, respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 3, 2019, Commerce published in the Federal Register the
Preliminary Determination.\1\ The selected mandatory respondents in
this investigation are Fujian Billion Polymerization Fiber Technology
Industrial Co., Ltd. (Fujian Billion), Suzhou Shenghong Fiber Co., Ltd.
(Shenghong Fiber), and Suzhou Shenghong Garmant Development Co.
(Garmant). In the Preliminary Determination, in accordance with section
705(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR
351.210(b)(4), Commerce aligned the final countervailing duty (CVD)
determination with the final antidumping duty (AD) determination. The
revised deadline for the final determination of this investigation is
now November 13, 2019. On August 22, 2019, Commerce issued its Post-
Preliminary Analysis.\2\
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\1\ See Polyester Textured Yarn from the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination,
and Alignment of Final Determination with Final Antidumping Duty
Determination, 84 FR 19040 (May 3, 2019) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis of
Countervailing Duty Investigation of Polyester Textured Yarn from
India,'' dated August 22, 2019 (Post-Preliminary Analysis).
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, may be found in the
Issues and Decision Memorandum.\3\ The Issues and 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
http://access.trade.gov and is available to all parties in the Central
Records Unit, Room B8024 of the main Commerce building. In addition, a
complete version of the Issues and Decision Memorandum can be accessed
directly at http://enforcement.trade.gov/frn/. The signed and
electronic versions of the Issues and Decision Memorandum are identical
in content.
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\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Polyester Textured Yarn from the People's Republic
of China,'' dated concurrently with, and hereby adopted by this
notice (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation (POI) is January 1, 2017 through
December 31, 2017.
Scope of the Investigation
The products covered by this investigation are yarn from China. For
a complete description of the scope of this investigation, see the
``Scope of the Investigation'' in Appendix I.
Scope Comments
During the course of this investigation and the concurrent AD
investigation of yarn from China, and concurrent AD and CVD
investigations of yarn from India, certain interested parties commented
on the scope of the investigations as it appeared in the Initiation
Notice.\4\ Commerce addressed
[[Page 63846]]
these comments in the Preliminary Determination, wherein Commerce
preliminarily modified the scope language as it appeared in the
Initiation Notice to exclude bulk continuous filament yarn.\5\ No
interested parties commented on the preliminary exclusion of bulk
continuous filament yarn. Thus, we have made no changes to the scope
language from the Preliminary Determination with regard to bulk
continuous filament yarn.
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\4\ See Polyester Textured Yarn from India and the People's
Republic of China: Initiation of Less-Than-Fair-Value
Investigations, 83 FR 58223, 58233 (November 19, 2018) (Initiation
Notice).
\5\ See Preliminary Determination, 84 FR at 19041.
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On May 2, 2019, the petitioners \6\ requested that Commerce include
an additional Harmonized Tariff Schedule of the United States (HTSUS)
subheading in the scope language.\7\ Specifically, the petitioners
requested that Commerce add HTSUS 5402.52.00 covering twisted yarn to
the scope of the investigations.\8\ As no interested parties rebutted
the petitioners' request to add this HTSUS subheading, and Commerce
finds the petitioners' request is reasonable, we have revised the scope
of the investigations to include HTSUS 5402.52.00. See Appendix I for
the final scope of the investigation.
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\6\ Unifi Manufacturing, Inc., and Nan Ya Plastics Corporation,
America, collectively, the petitioners.
\7\ See Petitioners' Comments, ``Request to Include HTSUS
Subheading 5402.52 in the Scope of These Investigations,'' dated May
2, 2019 (Petitioners' Comments).
\8\ See Petitioners' Comments.
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Final Affirmative Determination of Critical Circumstances
In accordance with section 703(e)(1)(B) of the Act, Commerce
preliminarily determined that critical circumstances existed for all
imports of yarn from China.\9\ Based our examination of the data on the
record, we continue to determine that critical circumstances exist for
all producers/exporters of yarn from China in the final determination.
For comments regarding critical circumstances, see Issues and Decisions
Memorandum.
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\9\ See Preliminary Determination PDM at 6.
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Verification
As provided in section 782(i) of the Act, in July 2019, we
conducted verification of the questionnaire responses submitted by
Fujian Billion and the Government of China (GOC).\10\ We used standard
verification procedures, including an examination of relevant
accounting and financial records, and original source documents.
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\10\ See Commerce Memoranda, ``Verification of the Questionnaire
Responses of Fujian Billion Polymerization Fiber Technology
Industrial Co., Ltd and Billion Development (Hong Kong) Limited,''
dated August 5, 2019; and ``Verification of the Questionnaire
Responses of the Government of the People's Republic of China,''
dated August 5, 2019.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised, and to which we responded in the Issues and
Decision Memorandum, is attached to this notice at Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of 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.\11\ For a full description
of the methodology underlying our final determination, see the Issues
and Decision Memorandum.
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\11\ 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
facts available pursuant to section 776(a) of the Act. Additionally, as
discussed in the Issues and Decision Memorandum, because one or more
respondents did not act to the best of their 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 Issues and Decision Memorandum.
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, minor corrections presented at verification, and our
verification findings, we made certain changes to Fujian Billion's
subsidy rate calculations. Commerce has also revised the adverse facts
available (AFA) rate and the all-others rate. For a discussion of these
changes, see the Issues and Decision Memorandum.
Final Determination
In accordance with section 705(c)(l)(B)(i) of the Act, we
calculated a rate for Fujian Billion, a producer/exporter of subject
merchandise selected for individual examination in this investigation.
Commerce assigned rates based entirely on facts otherwise available
with adverse inferences pursuant to section 776 of the Act to Shenghong
Fiber and Garmant.
Section 705(c)(5)(A) of the Act provides that in the final
determination, Commerce shall determine an estimated all-others rate
for companies not individually examined. This rate shall be an amount
equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce preliminarily assigned rates based
entirely on facts available for Shenghong Fiber and its cross-owned
affiliates, and Garmant. Therefore, the only rate that is not zero, de
minimis, or based entirely on facts otherwise available is the rate
calculated for Fujian Billion. Consequently, the rate calculated for
Fujian Billion is also assigned as the rate for all other producers and
exporters.
Commerce determines that the following estimated countervailable
subsidy rates exist:
[[Page 63847]]
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Subsidy rate
Company (percent)
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Fujian Billion Polymerization Fiber Technology 32.18
Industrial Co., Ltd \12\...............................
Suzhou Shenghong Fiber Co., Ltd \13\.................... 473.09
Suzhou Shenghong Garmant Development Co................. 472.51
All Others.............................................. 32.18
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Disclosure
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\12\ As discussed in the PDM, Commerce has found the following
companies to be cross-owned with Fujian Billion: (1) Billion
Development (Hong Kong) Limited and (2) Billion Industrial
Investment Limited.
\13\ As discussed in the PDM, Commerce has found the following
companies to be cross-owned with Suzhou Shenghong Fiber Co., Ltd.:
(1) Jiangsu Zhonglu Technology Development Co., Ltd., (2) Jiangsu
Guowang High-Technique Fiber Co., Ltd., (3) Jiangsu Shenghong
Science and Technology Co., Ltd., (4) Jiangsu Honggang Petrochemical
Co., Ltd., (5) Shenghong Group Co., Ltd., (6) Shenghong Holding
Group, Co., Ltd., (7) Shenghong (Suzhou) Group Co., Ltd., (8)
Jiangsu Shenghong Investment Development Co., Ltd., (9) Jiangsu
Shenghong New Material Co., Ltd., and (10) Jiangsu Shenghong Textile
Imp & Exp Co. and its successor Jiangsu Huahui Import and Export
Co., Ltd.
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We intend to disclose to parties in this proceeding the
calculations performed for this final determination within five days of
the date of publication of this notice, in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 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
February 2, 2019, 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, we issued instructions to CBP to
discontinue the suspension of liquidation for CVD purposes for subject
merchandise entered, or withdrawn from warehouse, on or after August
31, 2019, but to continue the suspension of liquidation of all entries
from February 2, 2019 through August 30, 2019.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and
require a cash deposit of estimated countervailing duties for such
entries of subject merchandise in the amounts indicated above. 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.
International Trade Commission Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary 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 Administrative Protective Orders
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: November 13, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation, polyester
textured yarn, is synthetic multifilament yarn that is manufactured
from polyester (polyethylene terephthalate). Polyester textured yarn
is produced through a texturing process, which imparts special
properties to the filaments of the yarn, including stretch, bulk,
strength, moisture absorption, insulation, and the appearance of a
natural fiber. This scope includes all forms of polyester textured
yarn, regardless of surface texture or appearance, yarn density and
thickness (as measured in denier), number of filaments, number of
plies, finish (luster), cross section, color, dye method, texturing
method, or packing method (such as spindles, tubes, or beams).
Excluded from the scope of this investigation is bulk continuous
filament yarn that: (a) Is polyester synthetic multifilament yarn;
(b) has denier size ranges of 900 and above; (c) has turns per meter
of 40 and above; and (d) has a maximum shrinkage of 2.5 percent.
The merchandise subject to this investigation is properly
classified under subheadings 5402.33.3000 and 5402.33.6000 of the
Harmonized Tariff Schedule of the United States (HTSUS). Merchandise
subject to this investigation may also enter under HTSUS subheading
5402.52.00. Although the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
scope of the investigation 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. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
General Issues
Comment 1: Whether it is Unlawful to Investigate Uninitiated
Programs
Comment 2: Whether it is Appropriate to Collect Cash Deposits on
Entries Subject to Preliminary Affirmative Critical Circumstances
Comment 3: Whether Commerce Must Consider 301 Duties in a
Critical Circumstances Determination
Program-Specific Issues
Comment 4: Export Buyer's Credit (EBC) Program
4a. Whether to Continue to Apply AFA to EBC Program
4b. The Appropriate AFA Rate for the EBC Program
Comment 5: Provision of Monoethylene Glycol (MEG) and Purified
Terephthalic Acid (PTA) for Less Than Adequate Renumeration (LTAR)
5.a. Whether MEG and PTA Producers are Authorities
5.b. Whether MEG and PTA are Specific to the Polyester Textured
Yarn Industry
5.c. Whether Commerce used the Correct Benchmark to Determine
Remuneration for MEG and PTA
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Comment 6: Provision of Electricity for LTAR
6.a. Whether the Provision of Electricity is Countervailable
6.b. Whether the Record Supports Applying AFA to Find
Electricity for LTAR
Comment 7: Whether the GOC Provided Countervailable Policy Loans
During the POI
Company-Specific Issues
Comment 8: Whether Application of AFA for Shenghong Fiber is
Warranted
Comment 9: Whether Commerce's Calculation of the AFA Rate is
Unreasonable
Comment 10: Calculation of Fujian Billion's Benefit of
Electricity for LTAR
Comment 11: Calculation of Fujian Billion's Benefit for Tax
Deduction for Research and Development (R&D) Expenses
Comment 12: Calculation of the Benefit for Fujian Billion's
Import Tariff and Value Added Tax (VAT) Exemptions on Imported
Equipment
VII. Recommendation
[FR Doc. 2019-25041 Filed 11-18-19; 8:45 am]
BILLING CODE 3510-DS-P