83 FR 31729 - Rubber Bands From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 131 (July 9, 2018)

Page Range31729-31731
FR Document2018-14633

The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of rubber bands from the People's Republic of China (China) for the period of investigation of January 1, 2017, through December 31, 2017. Interested parties are invited to comment on this preliminary determination.

Federal Register, Volume 83 Issue 131 (Monday, July 9, 2018)
[Federal Register Volume 83, Number 131 (Monday, July 9, 2018)]
[Notices]
[Pages 31729-31731]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14633]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-070]


Rubber Bands From the People's Republic of China: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination With Final Antidumping Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of rubber bands from the People's Republic of China (China) 
for the period of investigation of January 1, 2017, through December 
31, 2017. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable July 9, 2018.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone (202) 482-4793.

[[Page 31730]]


SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). On February 20, 
2018, we initiated a countervailing duty (CVD) investigation of rubber 
bands from China.\1\ On April 12, 2018, in accordance with section 
703(c)(1)(A) of the Act, we postponed the preliminary determination of 
this investigation to July 2, 2018.\2\
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    \1\ See Rubber Bands from Thailand, the People's Republic of 
China, and Sri Lanka: Initiation of Countervailing Duty 
Investigations, 83 FR 8429 (February 27, 2018) (Initiation Notice).
    \2\ See Rubber Bands from Thailand and the People's Republic of 
China: Postponement of Preliminary Determinations in the 
Countervailing Duty Investigations, 83 FR 15789 (April 12, 2018).
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    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 in Appendix II of 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 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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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of Rubber Bands 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 products covered by this investigation are rubber bands from 
China. For a complete description of the scope of this investigation, 
see Appendix I.

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 
confers a benefit to the recipient, and that the subsidy is 
specific.\4\
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    \4\ 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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    In making these findings, we relied solely on facts available 
because neither the Government of China nor any of the selected 
mandatory respondent companies responded to the questionnaire.\5\ 
Further, because these parties did not act to the best of their ability 
to respond to Commerce's requests for information, we drew an adverse 
inference in selecting from among the facts otherwise available.\6\ For 
further information, see Preliminary Decision Memorandum at ``Use of 
Facts Otherwise Available and Adverse Inferences.''
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    \5\ Because the respondents in this investigation did not 
provide information requested by Commerce, and Commerce 
preliminarily determines each of the respondents to be 
uncooperative, we will not conduct verification.
    \6\ See sections 776(a) and (b) of the Act.
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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)(i), we are 
aligning the final CVD determination in this investigation with the 
final determination in the companion antidumping duty (AD) 
investigation of rubber bands 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 November 13, 2018, unless 
postponed.\8\
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    \7\ The petitioner in this investigation is Alliance Rubber Co. 
See Letter from the petitioner, ``Petition for the Imposition of 
Antidumping and Countervailing Duties on Rubber Bands from Thailand 
and China--Petitioner's Request for Postponement of the Preliminary 
Determinations,'' dated March 27, 2018.
    \8\ The AD preliminary determination was postponed to no later 
than August 29, 2018, see Rubber Bands from the People's Republic of 
China and Thailand: Postponement of Preliminary Determinations in 
the Less-Than-Fair-Value Investigations, 83 FR 29748 (June 26, 
2018). Therefore, the AD final determination is currently due for 
signature no later than Monday, November 12, 2018, which is a 
federal holiday. Commerce's practice dictates that where a deadline 
falls on a weekend or federal holiday, the appropriate deadline is 
the next business day (see Notice of Clarification: Application of 
``Next Business Day'' Rule for Administrative Determination 
Deadlines Pursuant to the Tariff Act of 1930, As Amended, 70 FR 
24533 (May 10, 2005). As such, the AD final determination signature 
date rolls to Tuesday, November 13, 2018.
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All-Others Rate

    Sections 703(d)(1)(A) and 705(c)(5)(A) of the Act provide that 
Commerce 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.\9\ In 
this investigation, Commerce preliminarily assigned a rate based 
entirely on facts available to each of the mandatory respondents. There 
is no other information on the record with which to determine an all-
others rate. As a result, in accordance with section 705(c)(5)(A)(ii) 
of the Act, we are using ``any reasonable method'' and have established 
the all-others rate by applying the countervailable subsidy rate 
assigned to the mandatory respondents.
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    \9\ See section 705(c)(5)(A)(i) of the Act.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Graceful Imp. & Exp. Co., Ltd...........................          125.77
Moyoung Trading Co., Ltd................................          125.77
Ningbo Syloon Imp & Exp Co., Ltd........................          125.77
All-Others..............................................          125.77
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Suspension of Liquidation

    In accordance with section 703(d)(2) of the Act, Commerce 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 entered, or withdrawn from warehouse, for consumption on 
or after the date of publication of this notice in the Federal 
Register. Further, pursuant to section 703(d)(1)(B) of the Act and 19 
CFR 351.205(d), Commerce will instruct CBP to require a cash deposit 
equal to the rates indicated above.

Public Comment

    Interested parties may submit case and rebuttal briefs, as well as 
request a hearing. Case briefs or other written comments may be 
submitted to the Assistant Secretary for Enforcement and Compliance via 
ACCESS no later than 30 days after the publication of the preliminary 
determination in the Federal Register.\10\ Rebuttal briefs, limited to 
issues raised in case briefs, may be submitted no later than five days

[[Page 31731]]

after the deadline date for case briefs.\11\ 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.\12\ This summary should be 
limited to five pages total, including footnotes.
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    \10\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for 
general filing requirements).
    \11\ See 19 CFR 351.309(d)(1).
    \12\ See 19 CFR 351.309(c)(2) and (d)(2).
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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 within 30 days after the date of publication 
of this notice in the Federal Register via ACCESS. Hearing 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, Commerce 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. Prior to the date of the hearing, Commerce 
will contact all parties that submitted case or rebuttal briefs to 
determine if they wish to participate in the hearing. Commerce will 
then provide a hearing schedule to the parties prior to the hearing and 
only those parties listed on the schedule may present issues raised in 
their briefs. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
    Electronically filed documents must be received successfully in 
their entirety by 5:00 p.m. Eastern Time,\13\ on the due dates 
established above.
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    \13\ See 19 CFR 351.303(b)(1).
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International Trade Commission (ITC) Notification

    In accordance with section 703(f) of the Act, we will notify the 
ITC of its determination. In addition, Commerce will make available to 
the ITC all non-privileged and non-proprietary information relating to 
this investigation. Commerce will allow the ITC access to all 
privileged and business proprietary information in the files, provided 
the ITC confirms that it will not disclose such information, either 
publicly or under an APO, without the written consent of the Assistant 
Secretary for Enforcement and Compliance.
    Pursuant to section 705(b)(2) of the Act, if Commerce's 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 Commerce's 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: July 2, 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 products subject to this investigation are bands made of 
vulcanized rubber, with a flat length, as actually measured end-to-
end by the band lying flat, no less than \1/2\ inch and no greater 
than 10 inches; with a width, which measures the dimension 
perpendicular to the length, actually of at least 3/64 inch and no 
greater than 2 inches; and a wall thickness actually from 0.020 inch 
to 0.125 inch. Vulcanized rubber has been chemically processed into 
a more durable material by the addition of sulfur or other 
equivalent curatives or accelerators. Subject products are included 
regardless of color or inclusion of printed material on the rubber 
band's surface, including but not limited to, rubber bands with 
printing on them, such as a product name, advertising, or slogan, 
and printed material (e.g., a tag) fastened to the rubber band by an 
adhesive or another temporary type of connection. The scope includes 
vulcanized rubber bands which are contained or otherwise exist in 
various forms and packages, such as, without limitation, vulcanized 
rubber bands included within a desk accessory set or other type of 
set or package, and vulcanized rubber band balls. The scope excludes 
products that consist of an elastomer loop and durable tag all-in-
one, and bands that are being used at the time of import to fasten 
an imported product. Merchandise covered by this investigation is 
currently classified in the Harmonized Tariff Schedule of the United 
States (HTSUS) under subheading 4016.99.3510. Merchandise covered by 
the scope may also enter under HTSUS subheading 4016.99.6050. While 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of the investigation 
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. Alignment
VI. Injury Test
VII. Application of the CVD Law to Imports from China
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Calculation of the All-Others Rate
X. Conclusion

[FR Doc. 2018-14633 Filed 7-6-18; 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 July 9, 2018.
ContactKristen Johnson, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone (202) 482-4793.
FR Citation83 FR 31729 

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