[Federal Register Volume 85, Number 134 (Monday, July 13, 2020)]
[Notices]
[Pages 41960-41962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15053]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-123]
Certain Corrosion Inhibitors from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of certain corrosion inhibitors from the People's Republic of
China (China). The period of investigation (POI) is January 1, 2019
through December 31, 2019. Interested parties are invited to comment on
this preliminary determination
DATES: Applicable July 13, 2020.
FOR FURTHER INFORMATION CONTACT: Theodore Pearson or Nicholas
Czajkowski, AD/CVD Operations, Office I, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2631
or (202) 482-1395, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Trade Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on March 3,
2020.\1\ On April 1, 2020, Commerce postponed the preliminary
determination of this investigation, and the revised deadline is now
July 6, 2020.\2\
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\1\ See Certain Corrosion Inhibitors from the People's Republic
of China: Initiation of Countervailing Duty Investigation, 85 FR
12502 (March 3, 2020) (Initiation Notice).
\2\ See Certain Corrosion Inhibitors from the People's Republic
of China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 85 FR 19455 (April 7, 2020).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. 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 http://access.trade.gov. The signed and electronic
versions of the Preliminary Decision Memorandum are identical in
content.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Corrosion
Inhibitors from the People's Republic of China,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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Scope of the Investigation
The products covered by this investigation are certain corrosion
inhibitors from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ No parties provided
comment on the scope of the investigation.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily 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.\6\
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\6\ 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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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one
[[Page 41961]]
or more respondents did not act to the best of their ability to respond
to Commerce's requests for information, it drew an adverse inference
where appropriate in selecting from among the facts otherwise
available.\7\ For further information, see ``Use of Facts Otherwise
Available and Adverse Inferences'' in the Preliminary Decision
Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion antidumping duty (AD)
investigation of certain corrosion inhibitors from China based on a
request made by Wincom Incorporated (the petitioner).\8\ Consequently,
the final CVD determination will be issued on the same date as the
final AD determination, which is currently scheduled to be issued no
later than November 26, 2020, unless postponed.
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\8\ See Petitioner's Letter, ``Certain Corrosion Inhibitors from
the People's Republic of China: Petitioner's Request to Align
Countervailing Duty Investigation Final Determination with
Antidumping Duty Investigation Final Determination,'' dated June 3,
2020.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. The rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
rates that are zero, de minimis, or rates based entirely under section
776 of the Act.
In this investigation, as discussed in the Preliminary Decision
Memorandum, Commerce calculated individual estimated countervailable
subsidy rates for Jiangyin Delian Chemical Co., Ltd. (Delian) and
Nantong Botao Chemical Co., Ltd. (Botao) that were not zero, de
minimis, or based entirely under section 776 of the Act. Therefore,
Commerce calculated an all-others rate using a simple average of the
individual estimated subsidy rates calculated for Botao and Delian
using each company's values for the merchandise under consideration
because publicly ranged sales data was unavailable.\9\
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\9\ With two respondents under examination, Commerce normally
calculates (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale quantities for the merchandise under consideration. Commerce
then compares (B) and (C) to (A) and selects the rate closest to (A)
as the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010). As complete publicly ranged sales data are not
available, Commerce based the all-others rate on a simple average of
the mandatory respondents' subsidy rates.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy
Company rate
(percent)
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Jiangyin Delian Chemical Co., Ltd........................... 92.23
Nantong Botao Chemical Co., Ltd............................. 54.37
CAC Shanghai Chemical Co., Ltd.,............................ 237.19
Jiangyin Gold Fuda Chemical Co., Ltd........................ 237.19
Xinji Xi Chen Re Neng Co., Ltd.............................. 237.19
All Others.................................................. 73.30
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Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct 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 the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than seven days after the deadline
date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this investigation
are encouraged to submit with each argument: (1) A statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities.
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\10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements); and Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19; Extension of Effective Period, 85 FR
29615 (May 18, 2020) (Temporary Rule).
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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
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Parties are reminded that briefs and hearing requests are to be
filed electronically using ACCESS and that electronically filed
documents must be received successfully in their entirety by 5 p.m.
Eastern Time on the due date. Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until July 17, 2020, unless
extended.\11\
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\11\ See Temporary Rule.
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International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. If the
final determination is affirmative, the ITC will determine before the
later of 120 days after the date of this preliminary determination or
45 days after the final determination.
[[Page 41962]]
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: July 6, 2020.
Jeffrey I. Kessler
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is tolyltriazole
and benzotriazole. This includes tolyltriazole and benzotriazole of
all grades and forms, including their sodium salt forms.
Tolyltriazole is technically known as Tolyltriazole IUPAC 4,5 methyl
benzotriazole. It can also be identified as 4,5 methyl
benzotriazole, tolutriazole, TTA, and TTZ.
Benzotriazole is technically known as IUPAC 1,2,3-Benzotriazole.
It can also be identified as 1,2,3-Benzotriazole, 1,2-
Aminozophenylene, lH-Benzotriazole, and BTA.
All forms of tolyltriazole and benzotriazole, including but not
limited to flakes, granules, pellets, prills, needles, powder, or
liquids, are included within the scope of this investigation.
The scope includes tolyltriazole/sodium tolyltriazole and
benzotriazole/sodium benzotriazole that are combined or mixed with
other products. For such combined products, only the tolyltriazole/
sodium tolyltriazole and benzotriazole/sodium benzotriazole
component is covered by the scope of this investigation.
Tolyltriazole and sodium tolyltriazole that have been combined with
other products is included within the scope, regardless of whether
the combining occurs in third countries.
Tolyltriazole, sodium tolyltriazole, benzotriazole and sodium
benzotriazole that is otherwise subject to this investigation is not
excluded when commingled with tolyltriazole, sodium tolyltriazole,
benzotriazole, or sodium benzotriazole from sources not subject to
this investigation. Only the subject merchandise component of such
commingled products is covered by the scope of this investigation.
A combination or mixture is excluded from this investigation if
the total tolyltriazole or benzotriazole component of the
combination or mixture (regardless of the source or sources)
comprises less than 5 percent of the combination or mixture, on a
dry weight basis.
Notwithstanding the foregoing language, a tolyltriazole or
benzotriazole combination or mixture that is transformed through a
chemical reaction into another product, such that, for example, the
tolyltriazole or benzotriazole can no longer be separated from the
other products through a distillation or other process is excluded
from this investigation.
Tolyltriazole has the Chemical Abstracts Service (CAS) registry
number 299385-43-1. Tolyltriazole is classified under Harmonized
Tariff Schedule of the United States (HTSUS) subheading
2933.99.8220.
Sodium Tolyltriazole has the CAS registry number 64665-57-2 and
is classified under HTSUS subheading 2933.99.8290.
Benzotriazole has the CAS registry number 95-14-7 and is
classified under HTSUS subheading 2933.99.8210.
Sodium Benzotriazole has the CAS registry number 15217-42-2.
Sodium Benzotriazole is classified under HTSUS subheading
2933.99.8290.
Although the HTSUS subheadings and CAS registry numbers are
provided for convenience and customs purposes, the written
description of the scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. New Subsidy Allegations
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Benchmarks
IX. Analysis of Programs
X. Calculation of All-Others Rate
XI. ITC Notification
XII. Disclosure and Public Comments
XIII. Verification
XIV. Recommendation
[FR Doc. 2020-15053 Filed 7-10-20; 8:45 am]
BILLING CODE 3510-DS-P