Notice2021-14318

Granular Polytetrafluoroethylene Resin From India: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination

Primary source

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Published
July 6, 2021

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

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.

Full Text

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<title>Federal Register, Volume 86 Issue 126 (Tuesday, July 6, 2021)</title>
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[Federal Register Volume 86, Number 126 (Tuesday, July 6, 2021)]
[Notices]
[Pages 35479-35481]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-14318]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-900]


Granular Polytetrafluoroethylene Resin From India: Preliminary 
Affirmative Countervailing Duty Determination, Preliminary Affirmative 
Critical Circumstances Determination, and Alignment of Final 
Determination With Final Antidumping Duty 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 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: Jana[eacute] 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

[[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 <a href="http://access.trade.gov">http://access.trade.gov</a>. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at <a href="http://enforcement.trade.gov/frn/">http://enforcement.trade.gov/frn/</a>.
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    \1\ See Granular Polytetrafluoroethylene Resin from India and 
the Russian Federation: Initiation of Countervailing Duty 
Investigations, 86 FR 10931 (February 23, 2021) (Initiation Notice).
    \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).
    \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).
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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.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Comments on Scope of Investigations,'' 
dated concurrently with this notice (Preliminary Scope Decision 
Memorandum).
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    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.
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    \7\ Id.
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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\
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    \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.
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    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.
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    \9\ See sections 776(a) and (b) of the Act.
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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.
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    \10\ See Petitioner's Letter, ``Request for Alignment,'' dated 
April 9, 2021.
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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:
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    \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.

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                                                           Subsidy rate
                         Company                             (percent)
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Gujarat Fluorochemicals Limited \11\....................            4.75
All-Others..............................................            4.75
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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.

[[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.
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    \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).
    \13\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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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, 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

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


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Indexed from Federal Register on July 6, 2021.

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