83 FR 56300 - Biodiesel From Argentina: Initiation of Changed Circumstances Reviews of the Antidumping and Countervailing Duty Orders

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 219 (November 13, 2018)

The Department of Commerce (Commerce) is initiating changed circumstances reviews (CCR) of the antidumping duty (AD) and countervailing duty (CVD) orders on biodiesel from Argentina.

[Federal Register Volume 83, Number 219 (Tuesday, November 13, 2018)]
[Notices]
[Pages 56300-56302]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-24689]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-357-820, C-357-821]


Biodiesel From Argentina: Initiation of Changed Circumstances 
Reviews of the Antidumping and Countervailing Duty Orders

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

SUMMARY: The Department of Commerce (Commerce) is initiating changed 
circumstances reviews (CCR) of the antidumping duty (AD) and 
countervailing duty (CVD) orders on biodiesel from Argentina.

DATES: Applicable November 13, 2018.

FOR FURTHER INFORMATION CONTACT: Kathryn Wallace, 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) 482-6251.

SUPPLEMENTARY INFORMATION: 

Background

    On January 4, 2018, and April 26, 2018, Commerce published the CVD 
and AD orders on biodiesel from Argentina.\1\ On September 21, 2018, 
the GOA, joined by Vicentin S.A.I.C. (Vicentin) and LDC Argentina 
(LDC), requested that Commerce initiate a CCR of the AD order, and the 
GOA requested that Commerce initiate a CCR of the CVD order, in order 
to adjust the cash deposit rates established in the AD and CVD 
investigations to reflect changes to Argentina's export tax regime.\2\ 
On

[[Page 56301]]

October 1, 2018, the National Biodiesel Board Fair Trade Coalition 
(petitioner) filed comments requesting that Commerce deny the GOA's 
request.\3\ On October 11, 2018, the GOA, Vicentin and LDC filed 
comments responding to the petitioner's October 1, 2018 comments.\4\ On 
October 15, 2018, the petitioner submitted information and data 
illustrating the improvements in the domestic industry since the 
imposition of the orders, and on October 23, 2018, the petitioner 
submitted further comments opposing the CCRs.\5\ Between September 26, 
2018, and October 19, 2018, Commerce met with the GOA and the 
petitioner to discuss their submissions to the record.\6\
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    \1\ See Biodiesel from the Republic of Argentina and the 
Republic of Indonesia: Countervailing Duty Orders, 83 FR 522 
(January 4, 2018), corrected by Biodiesel from the Republic of 
Argentina and the Republic of Indonesia: Countervailing Duty Orders, 
83 FR 3114 (January 23, 2018); see also Biodiesel from Argentina and 
Indonesia: Antidumping Duty Orders, 83 FR 18278 (April 26, 2018) 
(collectively, Orders).
    \2\ See GOA's Letter, ``Biodiesel from Argentina: Request for 
Changed Circumstances Review,'' dated September 21, 2018 and filed 
on the record of A-357-820; see also GOA's Letter, ``Biodiesel from 
Argentina: Request for Changed Circumstances Review,'' dated 
September 21, 2018 and filed on the record of C-357-821 
(collectively, Requests for CCRs).
    \3\ See Petitioner's Letter, ``Biodiesel from Argentina: 
Petitioner's Opposition to the Government of Argentina's Requests 
for Changed Circumstances Reviews,'' dated October 1, 2018.
    \4\ See GOA's Letter, ``Biodiesel from Argentina: Response to 
Petitioners' Opposition to the Government of Argentina's Request for 
Changed Circumstances Review,'' dated October 11, 2018 (GOA's 
October 11, 2018 Submission).
    \5\ See Petitioner's Letter, ``Positive Impact of Orders from 
Argentina on Domestic Biodiesel Industry,'' dated October 15, 2018; 
see also Petitioner's Letter, ``Biodiesel from Argentina: 
Petitioner's Response to Respondents' October 11, 2018 Submission,'' 
dated October 23, 2018.
    \6\ See Memorandum, ``AD/CVD Orders on Biodiesel from 
Argentina--Requests for Changes Circumstance Reviews,'' dated 
September 26, 2018; see also Memorandum, ``Antidumping and 
Countervailing Duty Orders on Biodiesel from Argentina--Requests for 
Changed Circumstances Reviews: Ex Parte Meeting,'' dated October 4, 
2018; see also Memorandum, ``Antidumping and Countervailing Duty 
Orders on Biodiesel from Argentina--Requests for Changed 
Circumstances Reviews: Ex Parte Meeting,'' dated October 19, 2018.
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Scope of the Orders

    The product covered by the Orders is biodiesel from Argentina. For 
a complete description of the scope of the Orders, see the appendix to 
this notice.

Initiation of Changed Circumstances Reviews

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.216(d), Commerce will conduct a CCR of an AD 
or CVD order when it receives information concerning, or a request from 
an interested party which demonstrates, changed circumstances 
sufficient to warrant such a review. However, section 751(b)(4) of the 
Act also provides that Commerce may not conduct a CCR of an 
investigation determination within 24 months of the date of the 
investigation determination in the absence of ``good cause.''
    In its request for initiation, the GOA explains that there are 
changed circumstances sufficient to warrant reconsideration of the AD 
and CVD final determinations. Regarding changed circumstances, the GOA 
provided information indicating that, since the Orders, there have been 
changes in the export tax regime, which was a key element in Commerce's 
analysis of: (1) The soybeans for less than adequate remuneration 
program in the CVD investigation; and (2) the particular market 
situation finding concerning the cost of soybean input prices in the AD 
investigation.\7\ In particular, the GOA attached three legislative 
decrees effecting changes across its export tax regime, including 
changes to the export taxes applied to soybeans, soybean oil, soymeal, 
and biodiesel. Decrees 793/2018 and 486/2018, issued after the 
investigations were finalized, in May and September 2018, respectively, 
decreased significantly the export tax on soybeans and other 
commodities in the soybean value chain (e.g., soybean oil, soymeal), 
and imposed a new biodiesel export tax. According to the decrees 
themselves, such changes were ``necessary to continue fostering the 
convergence between the export tax applicable to {soybeans, soybean 
oil, soymeal{time}  and that applicable to biodiesel,'' \8\ and ``in 
order to, among other objectives, implement the monetary, exchange or 
foreign trade policy, to stabilize internal prices and to address 
public financial needs.'' \9\ Additionally, Decree 793/2018, in 
addition to decreasing the export tax on soybeans, imposes new, 
temporary taxes on ``all products'' exported from Argentina. The 
decree's preamble references an underlying statutory regime, as well as 
the GOA's 2018 national budget, noting concerns with ensuring ``fiscal 
convergence, an efficient tax policy and the gradual reduction of the 
tax burden.'' \10\ The GOA suggests that such changes indicate a 
revised focus on fiscal policy, and not the development of particular 
industries. The GOA documented that these changes are not merely 
theoretical or prospective but have been in full effect as of September 
2018. Furthermore, the GOA submitted information to support its claim 
that, since the imposition of the Orders, Argentine exporters have 
effectively been unable to ship biodiesel to the United States in light 
of combined AD and CVD cash deposit rates.\11\ According to the GOA, 
this alleged inability to ship to the United States prevents the 
conduct of administrative reviews through which Commerce would 
typically reexamine findings from investigations.\12\
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    \7\ See Requests for CCRs at 2, 4; see also Biodiesel from the 
Republic of Argentina: Final Affirmative Countervailing Duty 
Determination, 82 FR 53477 (November 16, 2017) and accompanying 
Issues and Decision Memorandum (CVD Final Determination) and 
Biodiesel from Argentina: Final Determination of Sales at Less Than 
Fair Value and Final Determination of Critical Circumstances, in 
Part, 83 FR 8837, and accompanying Issues and Decision Memorandum 
(AD Final Determination), which discussed these aspects of the final 
determinations.
    \8\ Decree 486/2018. See Requests for CCRs at Attachment 3.
    \9\ Decree 793/2018. See Requests for CCRs at Attachment 2.
    \10\ Id.
    \11\ See GOA's October 11, 2018 Submission at 8.
    \12\ Id. (citing U.S. Census Data).
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    Additionally, the GOA provided two correlating reasons for 
satisfying the ``good cause'' requirement pursuant to section 751(b)(4) 
of the Act. First, the GOA explained that the changes it has made to 
its export tax system, discussed above, have virtually eliminated the 
export tax differential among products in the soybean value chain. 
Specifically, prior to the issuance of the CVD order, in December 2017, 
products in the soybean value chain (except biodiesel) were subject to 
an export tax of 27 to 30 percent, while biodiesel was subject to an 
export tax rate of zero percent.\13\ As of September 2018, the export 
tax on soybean products has been reduced to 18 percent, and the export 
tax on biodiesel has been increased to 15 percent, reducing the export 
tax differential from approximately 30 percent to 3 percent.\14\ The 
GOA also noted its belief that the remaining three percent differential 
is offset by the Most-Favored Nation tariff of 4.6 percent applied to 
U.S. biodiesel imports.\15\ Second, the GOA notes that the imposition 
of the AD and CVD rates (ranging from 60.44 percent to 86.23 percent, 
and 71.45 percent to 72.28 percent, respectively) has completely closed 
the U.S. market for Argentine biodiesel, reducing Argentina's biodiesel 
exports to the United States from approximately $1.2 billion in 2016 to 
zero in 2018.\16\ The GOA notes the combined AD and CVD rates total at 
least 130 percent, depending on the producer and exporter.
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    \13\ See Requests for CCRs at 3-4, Attachments 1-3.
    \14\ Id.
    \15\ See Requests for CCRs at 4.
    \16\ See GOA's October 11, 2018 Submission at 8.
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    In considering the GOA's request for a CCR, we note that Commerce 
has initiated CCRs to address a wide variety of issues, some of which 
otherwise may or may not be addressed in the context of an annual 
administrative review.\17\

[[Page 56302]]

Here, although the issues raised by the GOA may be considered in the 
context of an administrative review under section 751(a) of the Act, 
there have been no shipments which could be the subject of an 
administrative review. Thus, under Commerce's normal administrative 
review procedures, we otherwise would not have an opportunity to review 
the substantial changes that the GOA has made to its export tax regime, 
which formed the basis for certain of our findings in the AD Final 
Determination and CVD Final Determination. These changes, as discussed 
in greater detail above, include legislative decrees that significantly 
reduced the export tax on soybeans and other soybean products which 
were examined in the underlying investigations, and imposed new export 
taxes on biodiesel and other goods which were not previously in place 
at the time of the investigations. In light of the above, including the 
information submitted by the GOA regarding a complete cessation of 
shipments of biodiesel from Argentina to the United States and the 
unique nature of the substantial changes to the GOA's export tax regime 
since the imposition of the Orders, we find that there is sufficient 
information and ``good cause'' to initiate CCRs.
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    \17\ See, e.g., Aluminum Extrusions from the People's Republic 
of China: Initiation and Preliminary Results of Expedited Changed 
Circumstances Review, 83 FR 34548 (July 20, 2018) (finding 
sufficient information to initiate a CCR to recalculate certain cash 
deposit rates); Certain Steel Nails From Malaysia: Initiation of 
Antidumping Duty Changed Circumstances Review, 80 FR 71772 (Nov. 17, 
2015) (finding sufficient information and ``good cause'' to initiate 
a CCR to evaluate whether a company was properly utilizing the 
correct cash deposit rate); Initiation of Changed Circumstances 
Countervailing Duty Administrative Reviews; Pure Magnesium and Alloy 
Magnesium From Canada, 57 FR 41473 (Sept. 10, 1992) (finding 
sufficient information and ``good cause'' to initiate a CCR to 
evaluate changes to the major subsidy program at issue in the 
underlying investigation).
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    Therefore, we are initiating CCRs pursuant to sections 751(b)(1) 
and (4) of the Act and 19 CFR 351.216(c) and (d) to assess the impacts 
of the GOA's revised export tax regime on the AD Final Determination 
and CVD Final Determination, as discussed above.
    We intend to publish in the Federal Register a notice of 
preliminary results of the AD and CVD CCRs, in accordance with 19 CFR 
351.221(b)(4) and 351.221(c)(3)(i), which will set forth the factual 
and legal conclusions upon which our preliminary results are based, and 
a description of any action proposed based on these results. Pursuant 
to 19 CFR 351.221(b)(4), interested parties will have an opportunity to 
comment on the preliminary results. We will issue the final results of 
review no later than 270 days after publication of this notice of 
initiation in accordance with 19 CFR 351.216(e).
    This notice is published in accordance with section 751(b)(1) and 
777(i) of the Act and 19 CFR 351.221(c)(3) of the Act.

    Dated: November 5, 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

Scope of the Orders

    The product covered by these orders 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. These orders 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 these order.
    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 (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 orders 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. 2018-24689 Filed 11-9-18; 8:45 am]
 BILLING CODE 3510-DS-P