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
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Issuing agencies
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.
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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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