82 FR 45807 - 100- to 150-Seat Large Civil Aircraft From Canada: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 189 (October 2, 2017)

Page Range45807-45809
FR Document2017-21055

The Department of Commerce (the Department) preliminarily determines that countervailable subsidies are being provided to producers and exporters of 100- to 150-seat large civil aircraft (aircraft) from Canada. The period of investigation is January 1, 2016, through December 31, 2016.

Federal Register, Volume 82 Issue 189 (Monday, October 2, 2017)
[Federal Register Volume 82, Number 189 (Monday, October 2, 2017)]
[Notices]
[Pages 45807-45809]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-21055]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-860]


100- to 150-Seat Large Civil Aircraft From Canada: 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 (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of 100- to 150-seat large civil aircraft 
(aircraft) from Canada. The period of investigation is January 1, 2016, 
through December 31, 2016.

DATES: Applicable October 2, 2017.

FOR FURTHER INFORMATION CONTACT: Andrew Medley or Ross Belliveau, AD/
CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-4987, or (202) 
482-4952, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on May 26, 
2017.\1\ On July 5, 2017, the Department postponed the preliminary 
determination of this investigation and the revised deadline is now 
September 25, 2017.\2\ 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, and 
is available to all parties in the Central Records Unit, room B8024 of 
the main Department of Commerce building. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See 100- to 150-Seat Large Civil Aircraft From Canada: 
Initiation of Countervailing Duty Investigation, 82 FR 24292 (May 
26, 2017) (Initiation Notice).
    \2\ See 100- to 150-Seat Large Civil Aircraft from Canada: 
Postponement of Preliminary Determination in the Countervailing Duty 
Investigation, 82 FR 31045 (July 5, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of 100- to 
150-Seat Large Civil Aircraft from Canada,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Investigation

    The product covered by this investigation is aircraft from Canada. 
For a complete description of the scope of the investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. The Department intends to issue its preliminary 
decision regarding comments concerning the scope of the antidumping 
duty (AD) and countervailing duty (CVD) investigations in the 
preliminary determination of the companion AD 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

    The Department is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, the Department 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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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), the Department 
is aligning the final CVD determination in this investigation with the 
final

[[Page 45808]]

determination in the companion AD investigation of aircraft from Canada 
based on a request made by the petitioner.\7\ 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 
December 18, 2017, unless postponed.
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    \7\ See Letter from The Boeing Company (the petitioner), ``100- 
To 150-Seat Large Civil Aircraft from Canada: Request for Alignment 
of Countervailing Duty Final Determination with Antidumping Duty 
Final Determination,'' dated September 11, 2017.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, the Department 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.
    The Department calculated an individual estimated countervailable 
subsidy rate for Bombardier, Inc. (Bombardier), the only individually 
examined exporter/producer in this investigation. Because the only 
individually calculated rate is not zero, de minimis, or based entirely 
on facts otherwise available, the estimated weighted-average rate 
calculated for Bombardier is the rate assigned to all-other producers 
and exporters, pursuant to section 705(c)(5)(A)(i) of the Act.

Preliminary Determination

    The Department preliminarily determines that the following 
estimated countervailable subsidy rates exist:
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    \8\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
Bombardier: C Series Aircraft Limited Partnership; Short Brothers 
PLC; BT (Investment) UK Limited.

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                                                           Subsidy rate
                         Company                             (percent)
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Bombardier, Inc. \8\....................................          219.63
All-Others..............................................          219.63
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, the 
Department 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), 
the Department will instruct CBP to require a cash deposit equal to the 
rates indicated above.

Disclosure

    The Department 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, the Department 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 five days after the deadline 
date for case briefs.\9\ 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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    \9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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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, the 
Department 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.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its determination. 
If the final determination is affirmative, the ITC will make its final 
determination before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination.

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: September 25, 2017.
Carole Showers,
Executive Director, Office of Policy, performing the duties of Deputy 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is aircraft, 
regardless of seating configuration, that have a standard 100- to 
150-seat two-class seating capacity and a minimum 2,900 nautical 
mile range, as these terms are defined below.
    ``Standard 100- to 150-seat two-class seating capacity'' refers 
to the capacity to accommodate 100 to 150 passengers, when eight 
passenger seats are configured for a 36-inch pitch, and the 
remaining passenger seats are configured for a 32-inch pitch. 
``Pitch'' is the distance between a point on one seat and the same 
point on the seat in front of it.
    ``Standard 100- to 150-seat two-class seating capacity'' does 
not delineate the number of seats actually in a subject aircraft or 
the actual seating configuration of a subject aircraft. Thus, the 
number of seats actually in a subject aircraft may be below 100 or 
exceed 150.
    A ``minimum 2,900 nautical mile range'' means:
    (i) Able to transport between 100 and 150 passengers and their 
luggage on routes equal to or longer than 2,900 nautical miles; or
    (ii) covered by a U.S. Federal Aviation Administration (FAA) 
type certificate or supplemental type certificate that also covers 
other aircraft with a minimum 2,900 nautical mile range.
    The scope includes all aircraft covered by the description 
above, regardless of whether they enter the United States fully or 
partially assembled, and regardless of whether, at the time of entry 
into the United States, they are approved for use by the FAA.
    The merchandise covered by this investigation is currently 
classifiable under Harmonized Tariff Schedule of the United States 
(HTSUS) subheading 8802.40.0040. The merchandise may alternatively 
be classifiable under HTSUS subheading 8802.40.0090. Although these 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of the investigation is 
dispositive.

[[Page 45809]]

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Injury Test
V. Subsidies Valuation
VI. Analysis of Programs
VII. Conclusion

[FR Doc. 2017-21055 Filed 9-29-17; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesApplicable October 2, 2017.
ContactAndrew Medley or Ross Belliveau, AD/ CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-4987, or (202) 482-4952, respectively.
FR Citation82 FR 45807 

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