[Federal Register Volume 85, Number 67 (Tuesday, April 7, 2020)]
[Notices]
[Pages 19440-19443]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07189]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-109]
Ceramic Tile From the People's Republic of China: Final
Affirmative Countervailing Duty Determination, and Final Negative
Critical Circumstances Determination
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 ceramic tile from the People's Republic of China (China).
DATES: Applicable April 7, 2020.
FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, Moses Song, or John
McGowan, AD/CVD Operations, Office VI, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
3813, (202) 482-7885, or (202) 482-3019, respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 12, 2019, Commerce published the Preliminary
Determination of this investigation.\1\
[[Page 19441]]
The petitioner is The Coalition for Fair Trade in Ceramic Tile. The
mandatory respondents in this investigation are Temgoo International
Trading Limited (Temgoo) and Foshan Sanfi Import & Export Co., Ltd.
(Foshan Sanfi). In the Preliminary Determination, Commerce aligned the
final determination in this countervailing duty (CVD) investigation
with the final determination in the companion less-than-fair-value
(LTFV) investigation, in accordance with section 705(a)(1) of the
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4).
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\1\ See Ceramic Tile from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Investigation,
Preliminary Negative Critical Circumstances Determination, and
Alignment of Final Determination with Final Antidumping Duty
Determination, 84 FR 48125 (September 12, 2019) (Preliminary
Determination) and accompanying Preliminary Decision Memorandum.
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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, are discussed in the
Issues and Decision Memorandum.\2\ 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/index.html. The signed and
electronic versions of the Issues and Decision Memorandum are identical
in content.
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\2\ See Memorandum, ``Issues and Decision for the Final
Determination in the Countervailing Duty Investigation of Ceramic
Tile from the People's Republic of China,'' dated concurrently, and
hereby adopted by, this notice (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation (POI) is from January 1, 2018 through
December 31, 2018.
Scope of the Investigation
The product covered by this investigation covers ceramic tile from
China. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
During the course of this investigation and the concurrent LTFV
investigation of ceramic tile from China, Commerce received scope
comments from interested parties. On September 6, 2019, Commerce issued
a Preliminary Scope Decision Memorandum.\3\ Several interested parties
submitted case and rebuttal briefs concerning the scope of this
investigation. For a summary of the product coverage comments and
rebuttal comments submitted to the record for this final determination,
and accompanying discussion and analysis of all comments timely
received, see the Final Scope Decision Memorandum.\4\ Based on the
comments received, Commerce is not modifying the scope language as it
appeared in the Preliminary Determination. The scope in Appendix I
remains unchanged from that which appeared in the Preliminary
Determination.
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\3\ See Memorandum, ``Ceramic Tile from the People's Republic of
China Decision Memorandum for the Preliminary Determinations,''
dated September 6, 2019 (Preliminary Scope Decision Memorandum).
\4\ See Memorandum, ``Ceramic Tile from the People's Republic of
China: Scope Decision Memorandum for the Final Determinations, dated
concurrently with this notice (Final Scope Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation, other than those issues related to scope, are
discussed in the Issues and Decision Memorandum. A list of the issues
raised by parties and responded to by Commerce in the Issues and
Decision Memorandum, is attached at Appendix II.
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.\5\ Commerce notes that, in making these findings, it relied,
in part, on facts available and, because it finds that one 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.\6\
For description of the methodology underlying our final determination,
see the Issues and Decision Memorandum.
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\5\ 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.
\6\ See Memorandum, ``Ceramic Tile from the People's Republic of
China Decision Memorandum for the Final Determination, dated
concurrently with this notice (Final Scope Decision Memorandum).
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Adverse Facts Available (AFA)
Commerce relied on ``facts otherwise available,'' including adverse
facts available (AFA), for several findings in the Preliminary
Determination. For this final determination, we are basing the CVD
rates for Temgoo and Foshan Sanfi on facts otherwise available, with an
adverse inference, pursuant to sections 776(a) and (b) of the Act. For
a full discussion of our application of AFA, see the Issues and
Decision Memorandum.
Final Negative Determination of Critical Circumstances
In the Preliminary Determination, Commerce determined, pursuant to
section 703(e)(1) of the Act, that information provided in the critical
circumstances allegation does not demonstrate the existence of critical
circumstances with respect to imports of ceramic tile from China. For
this final determination, we continue to find that critical
circumstances do not exist with respect to imports of ceramic tile from
China. For a full description of the methodology and results of
Commerce's analysis, see the Issues and Decision Memorandum.
Changes Since the Preliminary Determination
Based on our analysis of the comments received from parties, we
made certain changes to the respondents' subsidy rate calculations set
forth in the Preliminary Determination. For a discussion of these
changes, see the Issues and Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(5)(A) of the Act, Commerce shall
determine an estimated all-others rate for companies not individually
examined. Generally, under section 705(c)(5)(A)(i) of the Act, 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 on
AFA under section 776 of the Act. However, section 705(c)(5)(A)(ii) of
the Act provides that, where all countervailable subsidy rates
established for the mandatory respondents are zero, de minimis, or
based entirely on facts available, Commerce may use ``any reasonable
method'' for assigning an all-others rate, including ``averaging the
estimated average countervailable subsidy rates
[[Page 19442]]
determined for the exporters and producers individually investigated.''
In this investigation, all rates for the individually investigated
respondents are based entirely on facts available, pursuant to section
776 of the Act. We are relying on a simple average of the total AFA
rates assigned to Temgoo and Foshan Sanfi as the all-others rate in
this final determination, consistent with the statutory provision to
rely on ``any reasonable method.''
Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
established individual estimated countervailable subsidy rates, as
follows:
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\7\ Commerce assigned Sanfi's rate to each of the entities for
which Sanfi provided an initial questionnaire response: Guangdong
Sanfi Ceramics Group Co., Ltd.
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Subsidy rate
Company (percent)
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Temgoo International Trading Limited.................... 358.81
Sanfi Imp & Exp Co., Ltd \7\............................ 358.81
All Others.............................................. 358.81
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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 all entries of
merchandise under consideration from China that were entered or
withdrawn from warehouse, for consumption, on or after September 17,
2019, the date of publication of the Preliminary Determination in the
Federal Register. In accordance with section 703(d) of the Act, we
instructed CBP to discontinue the suspension of liquidation for CVD
purposes for subject merchandise entered, or withdrawn from warehouse,
on or after January 10, 2020, but continue the suspension of
liquidation of all entries from September 17 through January 9, 2020.
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.
Disclosure
We intend to disclose the calculations performed to parties in this
proceeding 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).
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of ceramic tile
from China. 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, by reason of
imports of ceramic tile from China, or sales (or the likelihood of
sales) for importation of ceramic tile from China. 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 the 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 in accordance with
sections 705(d) and 777(i) of the Act and 19 CFR 351.210(c). Note that
Commerce has temporarily modified certain of its requirements for
serving documents containing business proprietary information, until
May 19, 2020, unless extended.\8\
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\8\ See Temporary Rule Modifying AD/CVD Service Requirements Due
to COVID-19, 85 FR 17006 (March 26, 2020).
Dated: March 30, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is ceramic
flooring tile, wall tile, paving tile, hearth tile, porcelain tile,
mosaic tile, flags, finishing tile, and the like (hereinafter
ceramic tile). Ceramic tiles are articles containing a mixture of
minerals including clay (generally hydrous silicates of alumina or
magnesium) that are fired so the raw materials are fused to produce
a finished good that is less than 3.2 cm in actual thickness. All
ceramic tile is subject to the scope regardless of end use, surface
area, and weight, regardless of whether the tile is glazed or
unglazed, regardless of the water absorption coefficient by weight,
regardless of the extent of vitrification, and regardless of whether
or not the tile is on a backing. Subject merchandise includes
ceramic tile with decorative features that may in spots exceed 3.2
cm in thickness and includes ceramic tile ``slabs'' or ``panels''
(tiles that are larger than 1 meter\2\ (11 ft.\2\)).
Subject merchandise includes ceramic tile that undergoes minor
processing in a third country prior to importation into the United
States. Similarly, subject merchandise includes ceramic tile
produced that undergoes minor processing after importation into the
United States. Such minor processing includes, but is not limited
to, one or more of the following: Beveling, cutting, trimming,
staining, painting, polishing, finishing, additional firing, or any
other processing that would otherwise not remove the merchandise
from the scope of the investigation if performed in the country of
manufacture of the in-scope product.
Subject merchandise is currently classified in the Harmonized
Tariff Schedule of the United States (HTSUS) under the following
subheadings of heading 6907: 6907.21.1005, 6907.21.1011,
6907.21.1051, 6907.21.2000, 6907.21.3000, 6907.21.4000,
6907.21.9011, 6907.21.9051, 6907.22.1005, 6907.22.1011,
6907.22.1051, 6907.22.2000, 6907.22.3000, 6907.22.4000,
6907.22.9011, 6907.22.9051, 6907.23.1005, 6907.23.1011,
6907.23.1051, 6907.23.2000, 6907.23.3000, 6907.23.4000,
6907.23.9011, 6907.23.9051, 6907.30.1005, 6907.30.1011,
6907.30.1051, 6907.30.2000, 6907.30.3000, 6907.30.4000,
6907.30.9011, 6907.30.9051, 6907.40.1005, 6907.40.1011,
6907.40.1051, 6907.40.2000, 6907.40.3000, 6907.40.4000,
6907.40.9011, and 6907.40.9051. Subject merchandise may also enter
under subheadings of headings 6914 and 6905: 6914.10.8000,
6914.90.8000, 6905.10.0000, and 6905.90.0050. The HTSUS subheadings
are provided for convenience and customs purposes only. The written
description of the scope of this investigation is dispositive.
[[Page 19443]]
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Critical Circumstances
VI. Subsidies Valuation
VII. Benchmarks and Interest Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Discussion of Issues
Comment 1: Application of AFA to Sanfi and Temgoo and
Calculation of the All-Others Rate
Comment 2: Whether Commerce's Calculation of the AFA Rate in
Unreasonable
Comment 3: Selection of AFA Rates for Subsidy Programs
Comment 4: Preliminary Scope Determination
X. Recommendation
[FR Doc. 2020-07189 Filed 4-6-20; 8:45 am]
BILLING CODE 3510-DS-P