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 Department of Commerce International Trade Administration [C-533-900]
 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 granular polytetrafluoroethylene (PTFE) resin from India. The period of investigation is April 1, 2019, through March 31, 2020. Interested parties are invited to comment on this preliminary determination.
 DATES: Applicable July 6, 2021.
 FOR FURTHER INFORMATION CONTACT: Janaé Martin or Joshua Simonidis, AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0238 or (202) 482-0608, respectively.


SUPPLEMENTARY INFORMATION: Background This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on February 23, 2021.[1]
                    
                     On March 19, 2021, Commerce postponed the preliminary determination of this investigation and the revised deadline is now June 28, 2021.[2]
                    
                     For a complete description of the events that followed the initiation of this investigation, 
                    *see*( print page 35480)
                    the Preliminary Decision Memorandum.[3]
                    
                     A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to 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.*
                     In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at 
                    *http://enforcement.trade.gov/​frn/​.* Scope of the Investigation The product covered by this investigation is granular PTFE resin from India. For a complete description of the scope of this investigation, 
                    *see*
                     Appendix I. Scope Comments In accordance with the preamble to Commerce's regulations,[4]
                    
                     the 
                    *Initiation Notice*
                     set aside a period of time for parties to raise issues regarding product coverage (
                    *i.e.,*
                     scope).[5]
                    
                     An interested party commented on the scope of the investigation as it appeared in the 
                    *Initiation Notice.*
                     For a summary of these comments and the rebuttal response submitted to the record for this preliminary determination, and accompanying discussion and analysis of the comments timely received, 
                    *see*
                     the Preliminary Scope Decision Memorandum.[6]
                    
                     Commerce is not preliminarily modifying the scope language as it appeared in the 
                    *Initiation Notice. See*
                     scope in Appendix I. The Preliminary Scope Decision Memorandum establishes the deadline to submit scope case briefs.[7]
                    
                     There will be no further opportunity to comment on scope-related issues. 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 gives rise to a benefit to the recipient, and that the subsidy is specific.[8] Commerce notes that in making these preliminary findings, it relied in part on facts available, and because it finds that the Government of India did not act to the best of its ability to respond to Commerce's requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.[9]
                    
                     For further information, 
                    *see*
                     “Use of Facts Otherwise Available and Adverse Inferences” in the Preliminary Decision Memorandum. Preliminary Affirmative Determination of Critical Circumstances In accordance with section 703(e)(1) of the Act, Commerce preliminarily determines that critical circumstances exist with respect to imports of granular PTFE resin from India for Gujarat Fluorochemicals Limited (GFCL) and all other exporters or producers not individually examined. For a full description of the methodology and results of Commerce's analysis, 
                    *see*
                     the Preliminary Decision Memorandum. Alignment In accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final determination in this countervailing duty (CVD) investigation with the final determination in the companion antidumping duty (AD) investigation of granular PTFE resin from India based on a request made by the petitioner.[10]
                    
                     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 8, 2021, unless postponed. All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary determination, 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. Commerce calculated an individual estimated countervailable subsidy rate for GFCL, the only individually examined exporter/producer in this investigation. Because the only individually calculated rate is not zero, 
                    *de minimis,*
                     or based entirely on facts otherwise available, the rate calculated for GFCL is the rate assigned to all other producers and exporters not individually examined in this investigation, pursuant to section 705(c)(5)(A)(i) of the Act. Preliminary Determination Commerce preliminarily determines that the following estimated countervailable subsidy rates
                    
                     exist: Company
Subsidy rate
                             (percent)Gujarat Fluorochemicals Limited 11
4.75All-Others
4.75
 Suspension of Liquidation In accordance with section 703(d)(1)(B) and (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 section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the 
                    **Federal Register**
                    . Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. Section 703(e)(2) of the Act provides that, given an affirmative determination of critical circumstances, any suspension of liquidation shall apply to unliquidated entries of merchandise entered, or withdrawn from warehouse, for consumption on or after the later of (a) the date which is 90 days before the date on which the suspension of liquidation was first ordered, or (b) the date on which notice of initiation of the investigation was published. Commerce preliminarily finds that critical circumstances exist for imports of subject merchandise from India. In accordance with section 703(e)(2)(A) of the Act, the suspension of liquidation shall apply to unliquidated entries of merchandise from all exporters and producers of subject merchandise from India that were entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the publication of this notice.
                    ( print page 35481) Disclosure Commerce intends to disclose to interested parties its calculations and analysis performed in this preliminary determination within five days of the date of its public announcement, or if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). Verification As provided in section 782(i)(1) of the Act, Commerce intends to verify the information relied upon in making its final determination. Normally, Commerce verifies information using standard procedures, including an on-site examination of original accounting, financial, and sales documentation. However, due to current travel restrictions in response to the global COVID-19 pandemic, Commerce is unable to conduct on-site verification in this investigation. Accordingly, we intend to verify the information relied upon in making the final determination through alternative means in lieu of an on-site verification. Public Comment Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance. Interested parties will be notified of the timeline for the submission of case briefs and written comments on non-scope issues at a later date. Rebuttal briefs, limited to issues raised in these case briefs, may be submitted no later than seven days after the deadline date for case briefs.[12]
                    
                     Note that Commerce has temporarily modified certain of its requirements for serving documents containing business proprietary information, until further notice.[13]
                    
                     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. 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, U.S. Department of Commerce within 30 days after the date of publication of this notice. 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 a time and date to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date. International Trade Commission Notification In accordance with section 703(f) of the Act, Commerce will notify the International Trade Commission (ITC) of its determination. If the final determination is affirmative, the ITC will make its final injury determination before the later of 120 days after the date of this preliminary determination or 45 days after the 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: June 28, 2021. Christian Marsh, Acting Assistant Secretary for Enforcement and Compliance.
 Appendix I Scope of the Investigation The product covered by this investigation is granular polytetrafluoroethylene (PTFE) resin. Granular PTFE resin is covered by the scope of this investigation whether filled or unfilled, whether or not modified, and whether or not containing co-polymer, additives, pigments, or other materials. Also included is PTFE wet raw polymer. The chemical formula for granular PTFE resin is C2 F4, and the Chemical Abstracts Service (CAS) Registry number is 9002-84-0. Subject merchandise includes material matching the above description that has been finished, packaged, or otherwise processed in a third country, including by filling, modifying, compounding, packaging with another product, or performing any other finishing, packaging, or processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the granular PTFE resin. The product covered by this investigation does not include dispersion or coagulated dispersion (also known as fine powder) PTFE. PTFE further processed into micropowder, having particle size typically ranging from 1 to 25 microns, and a melt-flow rate no less than 0.1 gram/10 minutes, is excluded from the scope of this investigation. Granular PTFE resin is classified in the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 3904.61.0010. Subject merchandise may also be classified under HTSUS subheading 3904.69.5000. Although the HTSUS subheadings and CAS Number are provided for convenience and customs purposes, the written description of the scope is dispositive. Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Injury Test IV. Preliminary Determination of Critical Circumstances V. Diversification of India's Economy VI. Subsidies Valuation VII. Benchmarks and Interest Rates VIII. Use of Facts Otherwise Available and Adverse Inferences IX. Analysis of Programs X. Recommendation


# Footnotes

1.
    
                         
                        *See Granular Polytetrafluoroethylene Resin from India and the Russian Federation: Initiation of Countervailing Duty Investigations,*86 FR 10931 (February 23, 2021) (
                        *Initiation Notice*). Back to Citation
 2.
    
                         
                        *See Granular Polytetrafluoroethylene Resin from India and the Russian Federation: Postponement of Preliminary Determinations in the Countervailing Duty Investigations,*86 FR 14871 (March 19, 2021). Back to Citation
 3.
    
                         
                        *See*
                         Memorandum, “Decision Memorandum for the Preliminary Determination of the Countervailing Duty Investigation of Granular Polytetrafluoroethylene Resin from India,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). Back to Citation
 4.
    
                         
                        *See Antidumping Duties; Countervailing Duties, Final Rule,*62 FR 27296, 27323 (May 19, 1997). Back to Citation
 5.
    
                         
                        *See Initiation Notice.* Back to Citation
 6.
    
                         
                        *See*
                         Memorandum, “Comments on Scope of Investigations,” dated concurrently with this notice (Preliminary Scope Decision Memorandum). Back to Citation
 7.
    
                         
                        *Id.* Back to Citation
 8.
    
                         
                        *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. Back to Citation
 9.
    
                         
                        *See*
                         sections 776(a) and (b) of the Act. Back to Citation
 10.
    
                         
                        *See*
                         Petitioner's Letter, “Request for Alignment,” dated April 9, 2021. Back to Citation
 11.
    
                         As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Gujarat Fluorochemicals Limited: Inox Leasing Finance Limited and Inox Wind Limited. Back to Citation
 12.
    
                         
                        *See*19 CFR 351.309; 
                        *see also*19 CFR 351.303 (for general filing requirements); and 
                        *Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-19,*85 FR 17006, 17007 (March 26, 2020). Back to Citation
 13.
    
                         
                        *See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-19; Extension of Effective Period,*85 FR 41363 (July 10, 2020). Back to Citation


[FR Doc. 2021-14318 Filed 7-2-21; 8:45 am] BILLING CODE 3510-DS-P