82 FR 51396 - Fine Denier Polyester Staple Fiber From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 213 (November 6, 2017)

Page Range51396-51397
FR Document2017-24079

The Department of Commerce (the Department) preliminarily determines that countervailable subsidies are being provided to producers and exporters of fine denier polyester staple fiber (fine denier PSF) from the People's Republic of China (PRC). The period of investigation is January 1, 2016, through December 31, 2016.

Federal Register, Volume 82 Issue 213 (Monday, November 6, 2017)
[Federal Register Volume 82, Number 213 (Monday, November 6, 2017)]
[Notices]
[Pages 51396-51397]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24079]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-061]


Fine Denier Polyester Staple Fiber From the People's Republic of 
China: Preliminary Affirmative Countervailing 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 fine denier polyester staple fiber (fine 
denier PSF) from the People's Republic of China (PRC). The period of 
investigation is January 1, 2016, through December 31, 2016.

DATES: Applicable November 6, 2017.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas or Davina Friedmann, AD/
CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-3813 or (202) 482-0698, 
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 June 27, 
2017.\1\ On August 8, 2017, the Department postponed the preliminary 
determination of this investigation, and the revised deadline is now 
October 30, 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 Fine Denier Polyester Staple Fiber from India and the 
People's Republic of China: Initiation of Countervailing Duty 
Investigations, 82 FR 29029 (June 27, 2017) (Initiation Notice).
    \2\ See Fine Denier Polyester Staple Fiber from the People's 
Republic of China and India: Postponement of Preliminary 
Determination in the Countervailing Duty Investigations, 82 FR 37048 
(August 8, 2017).
    \3\ See Decision Memorandum for the Preliminary Affirmative 
Determination: Countervailing Duty Investigation of Fine Denier 
Polyester Staple Fiber 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 product covered by this investigation is fine denier PSF from 
the PRC. For a complete description of the scope of this 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, as well as additional language proposed by the 
Department. 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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    The Department 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 the 
Department'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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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. Notwithstanding the language of section 
705(c)(5)(A)(i) of the Act, we have not calculated the ``all-others'' 
rate by weight-averaging the rates of the two individually investigated 
respondents, because doing so risks disclosure of proprietary 
information. Therefore, for the ``all-others'' rate, we calculated a 
simple average of the two responding companies' rates.

Preliminary Determination

    The Department preliminarily determines that thefollowing 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 
Jiangyin Hailun Chemical Fiber Co. Ltd.: Jiangyin Bolun Chemical 
Fiber Co., Ltd. (Bolun); Jiangyin Fenghua Synthetic Fiber Co., Ltd. 
(Fenghua); Jiangsu Hailun Petrochemicals Co., Ltd. (Hailun 
Petrochemical); Jiangyin Huamei Special Fiber Co., Ltd. (Huamei); 
Jiangyin Huasheng Polymerization Co., Ltd. (Huasheng); Jiangyin 
Huaxing Synthetic Co., Ltd. (Huaxing); Jiangying Huayi 
Polymerization Co., Ltd. (Huayi); Jiangsu Sanfangxiang Group Co., 
Ltd. (Sanfangxiang Group); Jiangsu Sanfangxiang International 
Trading Co., Ltd. (Sanfangxiang Trading); Sanhai International 
Trading PTE Ltd. (Sanhai); Jiangyin Xingsheng Plastic Co., Ltd. 
(Xingsheng Plastic); Jiangyin Xingtai New Material Co., Ltd. 
(Xingtai); Jiangsu Xingye Plastic Co., Ltd. (Xingye Plastic); 
Jiangsu Xingye Polytech Co., Ltd. (Xingye Polytech); Jiangyin Xingyu 
New Material Co., Ltd. (Xingyu); Jiangyin Xinlun Chemical Fiber Co., 
Ltd. (Xinlun); Jiangyin Xinyuan Thermal Power Co., Ltd. (Xinyuan 
Thermal); and Jiangyin Yunlun Chemical Fiber Co., Ltd. (Yunlun).
    \9\ As discussed in the Preliminary Decision Memorandum, the 
Department has found Jiangsu Huahong Industrial Group Co., Ltd. to 
be cross-owned with Jiangyin Huahong Chemical Fiber Co. Ltd.; 
Jiangyin Hongkai Chemical Fiber Co., Ltd. (Hongkai); Jiangyin 
Huahong International Trade Co., Ltd. (Huahong International Trade); 
and Jiangyin Huakai Polyesterer Co., Ltd. (Huakai).

[[Page 51397]]



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                                                           Subsidy rate
                         Company                             (percent)
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Jiangyin Hailun Chemical Fiber Co. Ltd \8\..............           41.73
Jiangyin Huahong Chemical Fiber Co. Ltd \9\.............           47.64
All-Others..............................................           44.69
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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.\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).
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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, 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 determine 
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: October 30, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is fine denier 
polyester staple fiber (fine denier PSF), not carded or combed, 
measuring less than 3.3 decitex (3 denier) in diameter. The scope 
covers all fine denier PSF, whether coated or uncoated. The 
following products are excluded from the scope:
    (1) PSF equal to or greater than 3.3. decitex (more than 3 
denier, inclusive) currently classifiable under Harmonized Tariff 
Schedule of the United States (HTSUS) subheadings 5503.20.0045 and 
5503.20.0065.
    (2) Low-melt PSF defined as a bi-component fiber with a 
polyester core and an outer, polyester sheath that melts at a 
significantly lower temperature than its inner polyester core 
currently classified under HTSUS subheading 5503.20.0015.
    Fine denier PSF is classifiable under the HTSUS subheading 
5503.20.0025. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope of the investigations 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. Injury Test
VI. Application of the CVD Law to Imports From the PRC
VII. Subsidies Valuation
VIII. Benchamrks and Interest Rates
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Analysis of Programs
XI. ITC Notification
XII. Disclosure and Public Comment
XIII. Verification
XIV. Conclusion

[FR Doc. 2017-24079 Filed 11-3-17; 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 November 6, 2017.
ContactYasmin Bordas or Davina Friedmann, AD/ CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-3813 or (202) 482-0698, respectively.
FR Citation82 FR 51396 

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