83 FR 24740 - Fine Denier Polyester Staple Fiber From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 104 (May 30, 2018)

Page Range24740-24743
FR Document2018-11714

The Department of Commerce (Commerce) determines that fine denier polyester staple fiber (fine denier PSF) from the People's Republic of China (China) is being, or is likely to be, sold in the United States at less-than-fair value. The period of investigation is October 1, 2016, through March 31, 2017.

Federal Register, Volume 83 Issue 104 (Wednesday, May 30, 2018)
[Federal Register Volume 83, Number 104 (Wednesday, May 30, 2018)]
[Notices]
[Pages 24740-24743]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11714]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-060]


Fine Denier Polyester Staple Fiber From the People's Republic of 
China: Final Affirmative Determination of Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) determines that fine 
denier polyester staple fiber (fine denier PSF) from the People's 
Republic of China (China) is being, or is likely to be, sold in the 
United States at less-than-fair value. The period of investigation is 
October 1, 2016, through March 31, 2017.

DATES: Applicable May 30, 2018.

FOR FURTHER INFORMATION CONTACT: Edythe Artman 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) 482-3931 or (202) 482-3019, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On January 5, 2018, Commerce published the Preliminary 
Determination of this antidumping duty investigation, as provided by 
section 733 of the Tariff Act of 1930, as amended (the Act). Commerce 
preliminarily found that fine denier PSF from China was sold at 
LTFV.\1\ A summary of the events that have occurred since Commerce 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by interested parties for this final 
determination, may be found 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 https://access.trade.gov, 
and to all parties in the Central Records Unit, Room B8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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    \1\ See Fine Denier Polyester Staple Fiber from the People's 
Republic of China: Preliminary Affirmative Determination of Sales at 
Less Than Fair Value, Postponement of Final Determination, and 
Extension of Provisional Measures, 83 FR 665 (January 5, 2018) 
(Preliminary Determination) and the accompanying Preliminary 
Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination of the Less-Than-Fair-Value Investigation of 
Fine Denier Polyester Staple Fiber from the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
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    Commerce has exercised its discretion to toll deadlines for the 
duration of the closure of the Federal Government from January 20 
through 22, 2018. The revised deadline for the final determination in 
this investigation is now May 23, 2018.\3\
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    \3\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by three days.
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Scope Comments

    We provided parties an opportunity to provide comments on all 
issues regarding product coverage (i.e., scope).\4\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Preliminary Determination.\5\ For a summary of the product coverage 
comments and rebuttals submitted to the record of this investigation, 
and our accompanying discussion and analysis of the comments and 
rebuttals that were timely received, see the Final Scope Decision 
Memorandum.\6\ Based on parties' comments, we made no changes to the 
scope of the investigation, as it appeared in the Preliminary 
Determination.\7\ The product covered by this investigation is fine 
denier PSF from China. For a complete description of the scope of this 
investigation, see Appendix I.
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    \4\ See Memorandum, ``Due Dates for Case and Rebuttal Briefs 
Regarding the Scope,'' dated December 11, 2017.
    \5\ See Preliminary Determination.
    \6\ See Memorandum, ``Fine Denier Polyester Staple Fiber from 
the People's Republic of China, India, Republic of Korea, and 
Taiwan: Scope Comments Decision Memorandum for the Final 
Determinations,'' dated January 16, 2018 (Final Scope Memorandum).
    \7\ While we made no changes to the scope based on parties' 
comments, we discovered that we inadvertently included the phrase 
``or pre-opened'' in the scope in the Preliminary Determination. 
This phrase was not included in the scope in the Initiation (see 
Fine Denier Polyester Staple Fiber from the People's Republic of 
China, India, the Republic of Korea, Taiwan, and the Socialist 
Republic of Vietnam: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 29023 (Initiation). We have corrected this 
error by removing the phrase ``or pre-opened'' from the scope for 
this final determination.
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Verification

    As provided in section 782(i) of the Act, we conducted 
verifications of the sales and factors-of-production information 
reported by Jiangyin Hailun Chemical Fiber Co., Ltd. (Hailun) \8\ and

[[Page 24741]]

Jiangyin Huahong Chemical Fiber Co., Ltd. (Huahong).\9\ We used 
standard verification procedures, including an examination of relevant 
accounting and production records and original source documents 
provided by the respondents.
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    \8\ We have determined that Hailun and several affiliates should 
be collapsed and treated as a single entity for purposes of this 
investigation. See Memorandum from Commerce, ``Less-Than-Fair-Value 
Investigation of Fine Denier Polyester Staple Fiber from the 
People's Republic of China: Affiliation and Collapsing Status for 
Jiangyin Hailun Chemical Fiber Co. Ltd.,'' dated December 18, 2017. 
Therefore, any reference to Hailun in this notice refers to the 
collapsed entity including the following companies: Jiangyin Hailun 
Chemical Fiber Co., Ltd.; Jiangyin Xinlun Chemical Fiber Co., Ltd.; 
Jiangyin Yunlun Chemical Fiber Co., Ltd.; Jiangyin Bolun Chemical 
Fiber Co., Ltd.; Jiangyin Fenghua Synthetic Fiber Co., Ltd.; 
Jiangyin Huamei Special Fiber Co., Ltd.; Jiangyin Huasheng 
Polymerization Co., Ltd.; Jiangyin Huayi Polymerization Co., Ltd.; 
Jiangyin Huaxing Synthetic Co., Ltd.; and Jiangyin Xingsheng Plastic 
Co., Ltd.
    \9\ We have determined that Huahong and two affiliates should be 
collapsed and treated as a single entity for purposes of this 
investigation. See Memorandum from Commerce, ``Less-Than-Fair-Value 
Investigation of Fine Denier Polyester Staple Fiber from the 
People's Republic of China: Affiliation and Collapsing Memorandum 
for Jiangyin Huahong Chemical Fiber Co., Ltd., Jiangyin Huakai 
Polyester Co., Ltd., and Jiangyin Hongkai Chemical Fiber Co., 
Ltd.,'' dated December 18, 2017. Therefore, any reference to Huahong 
in this notice refers to the collapsed entity including the 
following companies: Jiangyin Huahong Chemical Fiber Co., Ltd., 
Jiangyin Huakai Polyester Co., Ltd., and Jiangyin Hongkai Chemical 
Fiber Co., Ltd.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of these issues is attached to this 
notice as Appendix II.

Changes to the Dumping Margin Since the Preliminary Determination

    Based on Commerce's analysis of the comments received and findings 
at verification, we made certain changes to our dumping margin 
calculations. For further discussion, see the Issues and Decision 
Memorandum.

China-Wide Entity

    For the reasons explained in the Preliminary Determination, we are 
continuing to find that the use of adverse facts available (AFA), 
pursuant to sections 776(a) and (b) of the Act, is appropriate and are 
applying a rate based entirely on AFA to the China-wide entity. 
Commerce did not receive timely responses to its quantity and value 
(Q&V) questionnaire, separate rate applications, or separate rate 
supplemental questionnaires from certain exporters and/or producers of 
subject merchandise that were named in the petition and to which 
Commerce issued Q&V questionnaires.\10\ As these non-responsive China 
companies did not demonstrate that they are eligible for separate rate 
status, Commerce continues to consider them to be a part of the China-
wide entity. Consequently, we continue to find that the China-wide 
entity withheld requested information, significantly impeded the 
proceeding, and failed to cooperate to the best of their abilities, and 
thus we are continuing to base the China-wide entity's rate on AFA.
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    \10\ See Preliminary Decision Memorandum at Separate Rate 
Section.
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China-Wide Rate

    In selecting the AFA rate for the China-wide entity, Commerce's 
practice is to select a rate that is sufficiently adverse to ensure 
that the uncooperative party does not obtain a more favorable result by 
failing to cooperate than if it had fully cooperated.\11\ Specifically, 
it is Commerce's practice to select, as an AFA rate, the higher of: (a) 
The highest dumping margin alleged in the petition; or, (b) the highest 
calculated dumping margin of any respondent in the investigation.\12\ 
As AFA, Commerce has assigned to the China-wide entity the rate of 
103.06 percent, which is the highest dumping margin alleged in the 
petition.\13\
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    \11\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: 
Purified Carboxymethyl cellulose from Finland, 69 FR 77216 (December 
27, 2004), unchanged in Notice of Final Determination of Sales at 
Less Than Fair Value: Purified Carboxymethyl cellulose from Finland, 
70 FR 28279 (May 17, 2005).
    \12\ See, e.g., Certain Stilbenic Optical Brightening Agents 
from the People's Republic of China: Final Determination of Sales at 
Less Than Fair Value, 77 FR 17436, 17438 (March 26, 2012); Final 
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled 
Flat-Rolled Carbon Quality Steel Products from the People's Republic 
of China, 65 FR 34660 (May 31, 2000), and accompanying Issues and 
Decision Memorandum.
    \13\ See Issues and Decision Memorandum at 4-5 for additional 
information.
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Combination Rates

    In the Initiation Notice, Commerce stated that it would calculate 
combination rates for the respondents that are eligible for a separate 
rate in this investigation.\14\ Accordingly, we have assigned 
combination rates to Hailun and Huahong, along with 14 other companies 
receiving a separate rate, as provided in the ``Final Determination'' 
section below.\15\
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    \14\ See Fine Denier Polyester Staple Fiber from the People's 
Republic of China, India, the Republic of Korea, Taiwan, and the 
Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 29023, 29028 (June 27, 2017) (Initiation 
Notice); see also Enforcement and Compliance Policy Bulletin No. 
05.1 ``Separate-Rates Practice and Application of Combination Rates 
in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005), available on Commerce's website at 
http://enforcement.trade.gov/policy/bull05-1.pdf.
    \15\ The dumping margin for the separate rate companies is based 
on a simple average of the rates from both mandatory respondents, 
offset by the export subsidy adjustment for the all-others' rate in 
the companion countervailing duty case. See the Issues and Decision 
Memorandum at 7 for additional information.
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Final Determination

    Commerce determines that the following estimated weighted-average 
dumping margins exist:

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                                                                                     Weighted-     Cash deposit
                                                                                      average      adjusted for
                   Producer                                 Exporter                  margin      subsidy offset
                                                                                     (percent)       (percent)
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Jiangyin Hailun Chemical Fiber Co. Ltd./        Jiangyin Hailun Chemical Fiber             72.22           72.22
 Jiangyin Xinlun Chemical Fiber Co., Ltd./       Co. Ltd.
 Jiangyin Yunlun Chemical Fiber Co., Ltd./
 Jiangyin Bolun Chemical Fiber Co., Ltd./
 Jiangyin Fenghua Synthetic Fiber Co., Ltd./
 Jiangyin Huamei Special Fiber Co., Ltd./
 Jiangyin Huasheng Polymerization Co., Ltd./
 Jiangyin Huayi Polymerization Co., Ltd./
 Jiangyin Huaxing Synthetic Co., Ltd./Jiangyin
 Xingsheng Plastic Co., Ltd.
Jiangyin Huahong Chemical Fiber Co., Ltd./      Jiangyin Huahong Chemical Fiber            65.17           65.11
 Jiangyin Huakai Polyester Co., Ltd./Jiangyin    Co., Ltd.
 Hongkai Chemical Fiber Co., Ltd.
Hangzhou Best Chemical Fiber Co., Ltd.........  Hangzhou Best Chemical Fiber               68.70           68.64
                                                 Co., Ltd.
Cixi Jiangnan Chemical Fiber Co. Ltd..........  Cixi Jiangnan Chemical Fiber Co.           68.70           68.64
                                                 Ltd.
Jiangsu Xinsu Chemical Fiber Co., Ltd.........  Jiangsu Xinsu Chemical Fiber               68.70           68.64
                                                 Co., Ltd.
Jiangyin Jinyan Chemical Fiber Co., Ltd./       Jiangyin Jinyan Chemical Fiber             68.70           68.64
 Jiangsu Xiang He Tai Fiber Technology Co.,      Co., Ltd.
 Ltd.

[[Page 24742]]

 
Jiangsu Hengze Composite Materials Technology   Jiangyin Yangxi International              68.70           68.64
 Co., Ltd./Chuzhou Prosperity Environmental      Trade Co., Ltd.
 Protection Color Fiber Co., Ltd./Jiangsu
 Xiang He Tai Fiber Technology Co., Ltd./
 Jiangyin Hengfeng Chemical Fiber Co., Ltd./
 Jiangyin Shunze Chemical Fiber Co., Ltd.
Zhejiang Jinfuchun Industrial Co., Ltd........  Zhejiang Jinfuchun Industrial              68.70           68.64
                                                 Co., Ltd.
Nanyang Textile Co., Ltd......................  Nanyang Textile Co., Ltd........           68.70           68.64
Ningbo Dafa Chemical Fiber Co. Ltd............  Ningbo Dafa Chemical Fiber Co.             68.70           68.64
                                                 Ltd.
Zhaoqing Tifo New Fibre Co., Ltd..............  Zhaoqing Tifo New Fibre Co., Ltd           68.70           68.64
Jiangyin Yueda Chemical Fiber Limited Company/  Unifi Textiles (Suzhou) Co., Ltd           68.70           68.64
 Hangzhou BenMa Chemical and Spinning Company
 Ltd./Yizheng Chemical Fiber Limited Liability
 Company.
Yuyao Dafa Chemical Fiber Co., Ltd............  Yuyao Dafa Chemical Fiber Co.,             68.70           68.64
                                                 Ltd.
Jiangyin Jindun Chemical Fiber Co., Ltd.......  Zhangjiagang City Hongtuo                  68.70           68.64
                                                 Chemical Fiber Co., Ltd.
Zhejiang Huashun Technology Co., Ltd..........  Zhejiang Linan Foreign Trade               68.70           68.64
                                                 Co., Ltd.
Suzhou Zhengbang Chemical Fiber Co., Ltd......  Suzhou Zhengbang Chemical Fiber            68.70           68.64
                                                 Co., Ltd.
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                                China-Wide Entity                                         103.06          103.00
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Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of fine denier PSF from 
China as described in Appendix I of this notice, which were entered, or 
withdrawn from warehouse, for consumption on or after January 5, 2018, 
the date of publication of the Preliminary Determination of this 
investigation in the Federal Register.
    Further, pursuant to 19 CFR 351.210(d), upon the publication of 
this notice, Commerce will instruct CBP to require a cash deposit equal 
to the weighted-average amount by which the normal value exceeds U.S. 
price as follows: (1) The cash deposit rate for the exporter/producer 
combinations listed in the table above will be the rate identified in 
the table; (2) for all combinations of Chinese exporters/producers of 
merchandise under consideration that have not received their own 
separate rate above, the cash-deposit rate will be the cash deposit 
rate established for the China-wide entity; and (3) for all non-Chinese 
exporters of merchandise under consideration which have not received 
their own separate rate above, the cash-deposit rate will be the cash 
deposit rate applicable to the Chinese exporter/producer combination 
that supplied that non-Chinese exporter. These suspension of 
liquidation instructions will remain in effect until further notice.
    Consistent with our practice, where the product under investigation 
is also subject to a concurrent countervailing duty investigation, we 
will instruct CBP to require a cash deposit equal to the estimated 
amount by which the normal value exceeds the export price or 
constructed export price, adjusted where appropriate for export 
subsidies.\16\ Accordingly, as discussed in further detail in the 
Issues and Decision Memorandum, we have adjusted the cash deposit rates 
for Huahong, non-selected separate rate respondents, and the China-wide 
entity by 0.06 percent.\17\ These adjustments are reflected in the 
final column of the rate chart, above. Furthermore, we are not 
adjusting the final determination for estimated domestic subsidy pass-
through because the respondents failed to substantiate a subsidies-to-
cost link and a cost-to-price-link.\18\ Because a companion 
countervailing duty order has been issued,\19\ and suspension of 
liquidation on fine denier PSF from China continues pursuant to that 
order, Commerce will continue to instruct CBP to require cash deposits 
adjusted by the amount of export subsidies, as appropriate.
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    \16\ See section 772(c)(1)(C) of the Act. Unlike in 
administrative reviews, Commerce makes an adjustment for export 
subsidies in an LTFV investigation not in the calculation of the 
weighted-average dumping margin, but in the cash deposit 
instructions issued to U.S. Customs and Border Protection. See 
Notice of Final Determination of Sales at Less Than Fair Value, and 
Negative Determination of Critical Circumstances: Certain Lined 
Paper Products from India, 71 FR 45012 (August 8, 2006), and 
accompanying Issues and Decision Memorandum at Comment 1.
    \17\ See Issues and Decision Memorandum at pages 6-8.
    \18\ Id. at Comment 2.
    \19\ See Fine Denier Polyester Staple Fiber from the People's 
Republic of China and India: Amended Final Affirmative 
Countervailing Duty Determination for the People's Republic of China 
and Countervailing Duty Orders for the People's Republic of China 
and India, 83 FR 11681 (March 16, 2018).
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Disclosure

    We will disclose to interested parties the calculations performed 
in this proceeding within five days of the date of announcement of this 
determination in accordance with 19 CFR 351.224(b).

International Trade Commission Notification

    In accordance with section 735(d) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its final affirmative 
determination. Because the final determination in this proceeding is 
affirmative, in accordance with section 735(b)(2)(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 fine denier PSF from China no 
later than 45 days after Commerce's final determination. If the ITC 
determines that material injury or threat of material injury does not 
exist, the proceeding will be terminated and all securities posted will 
be refunded or canceled. If the ITC determines that such injury does 
exist, Commerce will issue an antidumping duty order directing CBP to 
assess, upon further instruction by Commerce, antidumping duties on 
appropriate imports of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Notification to Interested Parties

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their

[[Page 24743]]

responsibility concerning the disposition of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
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 the terms of an APO is a violation 
subject to sanction.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act and 19 CFR 
351.210(c).

    Dated: May 23, 2018.
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 polyester fiber 
having a polyester fiber component that melts at a lower temperature 
than the other polyester fiber component, which is currently 
classifiable 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 this investigation is dispositive.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. List of Issues
III. Background
IV. Scope of the Investigation
V. Selection and Corroboration of the Adverse Facts Available Rate 
Applied to the China-Wide Entity
VI. Adjustments to Cash Deposit Rates
VII. Discussion of the Issues
    Comment 1: Surrogate Country and Surrogate Value Selections for 
PTA
    Comment 2: Hailun and Huahong's Double Remedy Adjustments
    Comment 3: Calculations for Hailun's Purchased and Consigned PET 
Melt
VIII. Recommendation

[FR Doc. 2018-11714 Filed 5-29-18; 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 May 30, 2018.
ContactEdythe Artman 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) 482-3931 or (202) 482-3019, respectively.
FR Citation83 FR 24740 

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