[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)]
[Notices]
[Pages 3120-3122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01152]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-061]


Countervailing Duty Investigation of Fine Denier Polyester Staple 
Fiber From the People's Republic of China: Final Affirmative 
Determination

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

SUMMARY: The Department of Commerce (Commerce) 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 (China). The period of investigation is 
January 1, 2016, through December 31, 2016. For information on the 
estimated subsidy rates, see the ``Final Determination and Suspension 
of Liquidation'' section of this notice.

DATES: Applicable January 23, 2018.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas or Davina Friedmann, 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) 482-3813 or (202) 482-
0698, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Commerce published the Preliminary Determination on November 6, 
2017.\1\ A summary of the events that occurred since Commerce 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 Issues and Decision Memorandum \2\ issued concurrently with this 
notice. 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 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 Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed Issues and Decision 
Memorandum and the electronic version are identical in content.
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    \1\ See Fine Denier Polyester Staple Fiber from the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, 82 FR 51396 (November 6, 2017) (Preliminary 
Determination) and accompanying Preliminary Decision Memorandum 
(Preliminary Decision Memorandum).
    \2\ See Commerce Memorandum, ``Issues and Decision Memorandum 
for the Final Determination in the Countervailing Duty Investigation 
of Fine Denier Polyester Staple Fiber from the People's Republic of 
China,'' dated concurrently with this determination and hereby 
adopted by this notice (Issues and Decision Memorandum).
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Scope Comments

    In accordance with the Preliminary Scope Memorandum, Commerce 
provided parties an opportunity to provide comments on all issues 
regarding product coverage (i.e., scope).\3\ Certain interested parties 
commented on the scope of the investigation as it appeared in the 
Initiation Notice.\4\ As a result, the scope of this investigation was 
modified for the preliminary determination. No further changes to the 
scope of the investigation were made to this final determination. For a 
summary of the product coverage comments and rebuttal responses 
submitted to the

[[Page 3121]]

record for this final determination, and accompanying discussion and 
analysis of all comments timely received, see the Final Scope Decision 
Memorandum.\5\
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    \3\ See Commerce 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 Preliminary 
Determinations,'' dated December 8 31, 2017 (Preliminary Scope 
Memorandum); see also See Commerce Memorandum, ``Due Dates for Case 
and Rebuttal Briefs Regarding the Scope,'' dated December 11, 2017.
    \4\ 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).
    \5\ See Commerce 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 concurrently with this determination and 
hereby adopted by this notice (Final Scope Memorandum).
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Methodology

    Commerce is conducting this countervailing duty (CVD) investigation 
in accordance with section 701 of the Tariff Act of 1930, as amended 
(Act). For each of the subsidy programs found to be countervailable, we 
determine 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. For a full description of the methodology 
underlying our final determination, see the Issues and Decisions 
Memorandum.

Scope of the Investigation

    The merchandise covered by this investigation is generally 
described as fine denier PSF from China. For a complete description of 
the scope of this investigation, see Appendix II.

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 parties, are discussed in 
the Issues and Decision Memorandum. A list of the issues that parties 
raised, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix I.

Use of Adverse Facts Available (AFA)

    For purposes of this final determination, we relied on facts 
available, and because certain respondents did not act to the best of 
their ability in responding to Commerce's requests for information, we 
drew an adverse inference, where appropriate, in selecting from among 
the facts otherwise available.\6\ A full discussion of our decision to 
rely on adverse facts available is presented in the ``Use of Facts 
Otherwise Available and Adverse Inferences'' section of the Issues and 
Decision Memorandum.
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    \6\ See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections presented at verification, we made 
certain changes to the respondents' subsidy rate calculations since the 
Preliminary Determination. For a discussion of these changes, see the 
Issues and Decision Memorandum and the Final Calculation Memoranda.\7\
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    \7\ See Commerce Memoranda, ``Countervailing Duty Investigation 
of Fine Denier Polyester Staple Fiber from the People's Republic of 
China: Jiangyin Hailun Chemical Fiber Co. Ltd.; Final Analysis 
Memorandum,'' dated January 16, 2017 (Hailun's Final Calculation 
Memorandum) and ``Countervailing Duty Investigation of Fine Denier 
Polyester Staple Fiber from the People's Republic of China: Jiangyin 
Huahong Chemical Fiber Co. Ltd.; Final Analysis Memorandum,'' dated 
January 16, 2017 (Huahong's Final Calculation Memorandum).
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Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an individual rate for each producer/exporter of the subject 
merchandise individually investigated.
    In accordance with section 705(c)(5)(A) of the Act, for companies 
not individually investigated, we apply an ``all-others'' rate. Under 
section 705(c)(5)(A)(i) of the Act, the ``all-others'' rate excludes 
zero and de minimis rates calculated for the exporters and producers 
individually investigated as well as rates based entirely on facts 
otherwise available.
    Pursuant to section 705(c)(5)(A)(i) of the Act, we have calculated 
the ``all-others'' rate using the subsidy rates of the two individually 
investigated respondents. However, we have not calculated the ``all-
others'' rate by weight-averaging the rates because doing so risks 
disclosure of proprietary information. Therefore, and consistent with 
Commerce's practice, for the ``all-others'' rate, we calculated a 
simple average of the two mandatory respondents' subsidy rates.
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    \8\ As discussed in the Preliminary Decision Memorandum, 
Commerce 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, 
Commerce 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).

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                                (%)
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Jiangyin Hailun Chemical Fiber Co. Ltd.\8\..............           38.00
Jiangyin Huahong Chemical Fiber Co. Ltd.\9\.............           47.57
All-Others..............................................           42.79
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Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of public announcement of our final determination, in 
accordance with 19 CFR 351.224(b).

Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
merchandise under consideration from the PRC that were entered or 
withdrawn from warehouse, for consumption, on or after November 6, 
2017, the date of publication of the Preliminary Determination in the 
Federal Register.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order, will 
reinstate the suspension of liquidation under section 706(a) of the 
Act, and will require a cash deposit of estimated CVDs for such entries 
of subject merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

[[Page 3122]]

Return or Destruction of Proprietary Information

    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: January 16, 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

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Application of the Countervailing Duty Law to Imports from the 
PRC
VI. Subsidies Valuation Information
VII. Benchmarks and Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Analysis of Programs
X. Analysis of Comments
    Comment 1: Application of AFA to the Electricity Program
    Comment 2: Export Buyer's Credit Program
    Comment 3: Market Distortion in the MEG/PTA Industry
    Comment 4: Input Benchmarks
    Comment 5: Hailun Verification Minor Corrections
    Comment 6: Huahong Verification Minor Corrections
    Comment 7: Exclusion of Finance Leasing and Margin Trading from 
the Policy Loans Benefit Calculation
    Comment 8: Treatment of Hailun's Other Types of Financing under 
the Policy Loan Program
    Comment 9: PTA for LTAR Benefit
    Comment 10: Sales Denominator for the Sanfangxiang Group
    Comment 11: Sales Denominator for Hailun Petrochemical
    Comment 12: Treatment of Foreign-Purchased Inputs
    Comment 13: Correction of Calculation Errors for Huahong
    Comment 14: Correction of Calculation Errors for Hailun
XI. Recommendation

Appendix II

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 the investigations is dispositive.

[FR Doc. 2018-01152 Filed 1-22-18; 8:45 am]
BILLING CODE 3510-DS-P