82 FR 53471 - Biodiesel From the Republic of Indonesia: Final Affirmative Countervailing Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 220 (November 16, 2017)

Page Range53471-53473
FR Document2017-24858

The Department of Commerce (Department) determines that countervailable subsidies are being provided to producers and exporters of biodiesel from the Republic of Indonesia (Indonesia). The period of investigation is January 1, 2016, through December 31, 2016.

Federal Register, Volume 82 Issue 220 (Thursday, November 16, 2017)
[Federal Register Volume 82, Number 220 (Thursday, November 16, 2017)]
[Notices]
[Pages 53471-53473]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24858]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-560-831]


Biodiesel From the Republic of Indonesia: Final Affirmative 
Countervailing Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of biodiesel from the Republic of Indonesia (Indonesia). The period of 
investigation is January 1, 2016, through December 31, 2016.

DATES: Appicable November 16, 2017.

FOR FURTHER INFORMATION CONTACT: Joseph Traw or Gene Calvert, AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone (202) 482-6079 or (202) 482-3586, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on August 
28, 2017.\1\ A summary of the events that occurred since the Department 
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 Final Decision Memorandum.\2\ The Final 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 Final 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Final Decision Memorandum and 
the electronic version are identical in content.
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    \1\ See Biodiesel From the Republic of Indonesia: Preliminary 
Affirmative Countervailing Duty Determination, 82 FR 40746 (August 
28, 2017) (Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Biodiesel from Indonesia,'' (Final Decision Memorandum), dated 
concurrently with this determination and hereby adopted by this 
notice.
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Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2016, through December 31, 2016.

Scope of the Investigation

    The product covered by this investigation is biodiesel from 
Indonesia. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix II 
of this notice.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs submitted by the interested parties in 
this proceeding, are discussed in the Final Decision Memorandum. A list 
of the issues raised by the parties and responded to by the Department 
in the Final Decision Memorandum, is attached at Appendix I to this 
notice.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), during September 2017, the Department verified the subsidy 
information reported by the Government of Indonesia, PT Musim Mas 
(Musim Mas), and Wilmar Trading Co., Ltd. (Wilmar Trading). We used 
standard verification procedures, including an examination of relevant 
accounting records and original source documents provided by the 
respondents.\3\
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    \3\ See Memorandum, ``Verification of the CVD Responses of the 
Government of Indonesia in the Countervailing Duty Investigation of 
Biodiesel,'' dated October 3, 2017; Memorandum, ``Verification of 
the CVD Responses of Wilmar Trading Ptd. Ltd. and its Cross Owned 
Affiliates in the Countervailing Duty Investigation of Biodiesel,'' 
dated October 2, 2017; and Memorandum, ``Countervailing Duty 
Investigation of Biodiesel from the Republic of Indonesia: 
Verification of the Questionnaire Responses Submitted by PT Musim 
Mas,'' dated September 28, 2017.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received from parties and the 
minor corrections presented, we made certain changes to the 
respondents' subsidy rate calculations set forth in the Preliminary 
Determination. For a discussion of these changes, see the Final 
Decision Memorandum and the Final Calculation Memoranda.\4\
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    \4\ See Issues and Decision Memorandum dated concurrently with 
this determination; see also Wilmar Trading's Final Calculation 
Memorandum, dated concurrently with this determination, and Musim 
Mas's Final Calculation Memorandum, dated concurrently with this 
determination.

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[[Page 53472]]

All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, the 
Department calculated a countervailable subsidy rate for the 
individually investigated exporters/producers of the subject 
merchandise. Consistent with sections 705(c)(1)(B)(i)(I) and 
705(c)(5)(A) of the Act, the Department also calculated an estimated 
``all-others'' rate for exporters and producers not individually 
investigated. Section 705(c)(5)(A)(i) of the Act provides that the 
``all-others'' rate shall be an amount equal to the weighted-average of 
the countervailable subsidy rates established for individually 
investigated exporters and producers, excluding any rates that are zero 
or de minimis or any rates determined entirely under section 776 of the 
Act. In this investigation, the Department calculated individual 
estimated countervailable subsidy rates for Wilmar Trading and Musim 
Mas that are not zero, de minimis, or based entirely on facts otherwise 
available. Therefore, the Department calculated the all-others' rate 
using a weighted average of the individual estimated subsidy rates 
calculated for the examined respondents using each company's publicly-
ranged values for the merchandise under consideration.\5\
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    \5\ With two respondents under examination, the Department 
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. The Department 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 were available, the Department based the 
all-others rate on the publicly ranged sales data of the mandatory 
respondents. For a complete analysis of the data, please see the 
All-Others' Rate Calculation Memorandum dated concurrently with this 
determination.
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Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established individual estimated countervailable subsidy rates for PT 
Musim Mas and Wilmar Trading Co., Ltd., and their cross-owned entities.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                                (%)
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PT Musim Mas............................................           64.73
Wilmar Trading Co., Ltd.................................           34.45
All-Others..............................................           38.95
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Disclosure

    The Department will disclose the calculations performed within five 
days of the date of publication of this notice to parties in this 
proceeding in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with sections 703(d) of the Act, the Department will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of biodiesel from 
Indonesia, which were entered, or withdrawn from warehouse, for 
consumption on or after August 28, 2017, the date of publication of the 
Preliminary Determination.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of countervailable subsidies. Because the final 
determination in this proceeding is affirmative, in accordance with 
section 705(b) of the Act, the ITC will make its final determination as 
to whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports of 
biodiesel from Indonesia no later than 45 days after our final 
determination. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, the Department will issue a CVD order directing CBP 
to assess, upon further instruction by the Department, countervailing 
duties on all imports of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    In the event the ITC issues a final negative injury determination, 
this notice serves 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 or 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 subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: November 6, 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

List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Period of Investigtaion
IV. Scope Comments
V. Scope of the Investigation
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Discussion of the Issues
    Comment 1: Whether payments from the oil palm plantation fund 
are countervailable
    Comment 2: Whether the Department should treat OPPF payments as 
more than adequate remuneration program instead of a grant program
    Comment 3: Whether the Department was correct to tie OPPF 
payments to all biodiesel sales
    Comment 4: Whether the Department should offset any benefit to 
mandatory respondents by the amount of export levy they pay into the 
OPPF
    Comment 5: Whether there is a basis for finding that the GOI 
entrusted or directed the provision of crude palm oil (CPO) for LTAR
    Comment 6: Whether the Department should use a tier-one 
benchmark for CPO
    Comment 7: Whether the Department should change its freight 
calculation for the CPO benchmark values
IX. Conclusion

Appendix II

Scope of the Investigation

    The product covered by this investigation is biodiesel, which is 
a fuel comprised of mono-alkyl esters of long chain fatty acids 
derived from vegetable oils or animal fats, including biologically-
based waste oils or greases, and other biologically-based oil or fat 
sources. The investigations cover biodiesel in pure form (B100) as 
well as fuel mixtures containing at least 99 percent biodiesel by 
volume (B99). For fuel mixtures containing less than 99 percent 
biodiesel by volume, only the biodiesel component of the mixture is 
covered by the scope of the investigation.
    Biodiesel is generally produced to American Society for Testing 
and Materials International (ASTM) D6751 specifications, but it can 
also be made to other specifications. Biodiesel commonly has one of 
the following Chemical Abstracts Service

[[Page 53473]]

(CAS) numbers, generally depending upon the feedstock used: 67784-
80-9 (soybean oil methyl esters); 91051-34-2 (palm oil methyl 
esters); 91051-32-0 (palm kernel oil methyl esters); 73891-99-3 
(rapeseed oil methyl esters); 61788-61-2 (tallow methyl esters); 
68990-52-3 (vegetable oil methyl esters); 129828-16-6 (canola oil 
methyl esters); 67762-26-9 (unsaturated alkylcarboxylic acid methyl 
ester); or 68937-84-8 (fatty acids, C12-C18, methyl ester).
    The B100 product subject to the investigation is currently 
classifiable under subheading 3826.00.1000 of the Harmonized Tariff 
Schedule of the United States (HTSUS), while the B99 product is 
currently classifiable under HTSUS subheading 3826.00.3000. Although 
the HTSUS subheadings, ASTM specifications, and CAS numbers are 
provided for convenience and customs purposes, the written 
description of the scope is dispositive.

[FR Doc. 2017-24858 Filed 11-15-17; 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
DatesAppicable November 16, 2017.
ContactJoseph Traw or Gene Calvert, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-6079 or (202) 482-3586, respectively.
FR Citation82 FR 53471 

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