Granular Polytetrafluoroethylene Resin From India: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures
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Abstract
The Department of Commerce (Commerce) preliminarily determines that granular polytetrafluoroethylene (PTFE) resin from India is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is January 1, 2020, through December 31, 2020. Interested parties are invited to comment on this preliminary determination.
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<title>Federal Register, Volume 86 Issue 168 (Thursday, September 2, 2021)</title>
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[Federal Register Volume 86, Number 168 (Thursday, September 2, 2021)]
[Notices]
[Pages 49299-49302]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-18969]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-899]
Granular Polytetrafluoroethylene Resin From India: Preliminary
Affirmative Determination of Sales at Less Than Fair Value, Preliminary
Affirmative Determination of Critical Circumstances, Postponement of
Final Determination, and Extension of Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that granular polytetrafluoroethylene (PTFE) resin from India is being,
or is likely to be, sold in the United States at less than fair value
(LTFV). The period of investigation (POI) is January 1, 2020,
[[Page 49300]]
through December 31, 2020. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable September 2, 2021.
FOR FURTHER INFORMATION CONTACT: Alexis Cherry or Katherine Johnson,
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) 482-0607
or (202) 482-4929, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(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 June 11, 2021, Commerce postponed the preliminary
determination of this investigation and the deadline is now August 25,
2021.\2\ For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics included 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="https://access.trade.gov">https://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 Less-Than-Fair-Value
Investigations, 86 FR 10926 (February 23, 2021) (Initiation Notice).
\2\ See Granular Polytetrafluoroethylene Resin from India and
the Russian Federation: Postponement of Preliminary Determinations
in the Less-Than-Fair-Value Investigations, 86 FR 31276 (June 11,
2021).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value 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\ Certain interested
parties commented on the scope of this investigation, as published in
the Initiation Notice. For a summary of the product coverage comments
and rebuttals submitted to the record for this investigation, and
accompanying discussion of all comments timely received, see the
Preliminary Scope Decision Memorandum.\6\ As discussed in the
Preliminary Scope Decision Memorandum, Commerce is not preliminarily
modifying the scope language as it appeared in the Initiation Notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Granular Polytetrafluoroethylene Resin
from India and the Russian Federation: Comments on Scope of
Investigations,'' dated June 28, 2021 (Preliminary Scope Decision
Memorandum).
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No scope case briefs were received prior to the deadline
established in the Preliminary Scope Decision Memorandum.\7\ There will
be no further opportunity for comments on scope-related issues.\8\
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\7\ Id. at 1.
\8\ Case briefs, other written comments, and rebuttal briefs
submitted in response to this preliminary LTFV determination should
not include scope-related issues. See Preliminary Scope Decision
Memorandum; see also ``Public Comment'' section of this notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Constructed export prices
have been calculated in accordance with section 772(b) of the Act.
Normal value (NV) is calculated in accordance with section 773 of the
Act. For a full description of the methodology underlying the
preliminary determination, see the Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances
On June 8, 2021, the petitioner \9\ timely filed a critical
circumstances allegation, pursuant to section 733(e)(1) of the Act and
19 CFR 351.206(c)(1), alleging that critical circumstances exist with
respect to imports of granular PTFE resin from India.\10\ In accordance
with section 733(e) of the Act and 19 CFR 351.206, Commerce
preliminarily determines that critical circumstances exist with respect
to imports of granular PTFE resin from India produced and exported by
Gujarat Fluorochemicals Limited (GFCL). Furthermore, we preliminarily
determine that critical circumstances exist with respect to imports of
granular PTFE resin from India produced and exported by all other
producers and exporters. For a full description of Commerce's
preliminary critical circumstances determination, see the Preliminary
Decision Memorandum.
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\9\ The petitioner is Daikin America, Inc.
\10\ See Petitioner's Letter, ``Allegation of the Existence of
Critical Circumstances,'' dated June 8, 2021; see also Petitioner's
Letter, ``Critical Circumstances Addendum,'' dated June 16, 2021.
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All-Others Rate
Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that
in the preliminary determination Commerce shall determine an estimated
all-others rate for all exporters and producers not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated, excluding any zero
and de minimis margins, and any margins determined entirely under
section 776 of the Act.
In this investigation, Commerce calculated an individual estimated
weighted-average dumping margin for GFCL, the only individually
examined exporter/producer in this investigation. Because the only
individually calculated dumping margin is not zero, de minimis, or
based entirely on facts otherwise available, the estimated weighted-
average dumping margin calculated for GFCL is the margin assigned to
all other producers and exporters, pursuant to section 735(c)(5)(A) of
the Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
[[Page 49301]]
------------------------------------------------------------------------
Estimated Cash deposit
weighted- rate (adjusted
Exporter/producer average for subsidy
dumping margin offset(s))
(percent) (percent)
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Gujarat Fluorochemicals Limited......... 13.09 10.01
All Others.............................. 13.09 10.01
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Suspension of Liquidation
In accordance with section 733(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 Appendix I, entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register.
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR
351.205(d), Commerce will instruct CBP to require a cash deposit equal
to the estimated weighted-average dumping margin or the estimated all-
others rate, as follows: (1) The cash deposit rate for the respondent
listed above will be equal to the company-specific estimated weighted-
average dumping margin determined in this preliminary determination;
(2) if the exporter is not a respondent identified above, but the
producer is, then the cash deposit rate will be equal to the company-
specific estimated weighted-average dumping margin established for that
producer of the subject merchandise; and (3) the cash deposit rate for
all other producers and exporters will be equal to the all-others
estimated weighted-average dumping margin.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of subject 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. As noted above, Commerce
preliminarily finds that critical circumstances exist for imports of
subject merchandise produced or exported by GFCL and all other
producers or exporters. In accordance with section 733(e)(2)(A) of the
Act, the suspension of liquidation shall apply to unliquidated entries
of shipments of subject merchandise from the producers or exporters
identified in this paragraph that were entered, or withdrawn from
warehouse, for consumption on or after the date which is 90 days before
the publication of this notice.
Commerce normally adjusts cash deposits for estimated antidumping
duties by the amount of export subsidies countervailed in a companion
countervailing duty (CVD) proceeding, when CVD provisional measures are
in effect. Accordingly, where Commerce preliminarily made an
affirmative determination for countervailable export subsidies,
Commerce has offset the estimated weighted-average dumping margin by
the appropriate CVD rate(s).\11\ Any such adjusted cash deposit rate
may be found in the ``Preliminary Determination'' section above.\12\
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\11\ See, e.g., Polyester Textured Yarn from India: Preliminary
Affirmative Determination of Sales at Less Than Fair Value and
Postponement of Final Determination and Extension of Provisional
Measures, 84 FR 31301 (July 1, 2019), unchanged in Polyester
Textured Yarn from India: Final Determination of Sales at Less Than
Fair Value, 84 FR 63843 (November 19, 2019).
\12\ See Preliminary Decision Memorandum for further discussion.
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Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting estimated
antidumping duty cash deposits unadjusted for countervailed export
subsidies at the time that the provisional CVD measures expire. These
suspension of liquidation instructions will remain in effect until
further notice.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any 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 on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance.
Interested parties will be notified of the timeline for the submission
of such case briefs and written comments 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.\13\
Note that Commerce has modified certain of its requirements for serving
documents containing business proprietary information until further
notice.\14\ 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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\13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\14\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of
Effective Period, 85 FR 41363 (July 10, 2020) (collectively,
Temporary Rule).
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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
[[Page 49302]]
location of the hearing two days before the scheduled date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On August 5, 2021, pursuant to 19 CFR 351.210(e), GFCL requested
that Commerce postpone the final determination and that provisional
measures be extended to a period not to exceed six months.\15\ In
accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii) and (e)(2), because: (1) The preliminary
determination is affirmative; (2) the requesting exporter accounts for
a significant proportion of exports of the subject merchandise; and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make its final determination no later than 135 days after
the date of publication of this preliminary determination.
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\15\ See GFCL's Letter, ``Gujarat Fluorochemicals Limited's
Request to Postpone Final Determination,'' dated August 5, 2021.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c) and 19
CFR 351.210(g).
Dated: August 25, 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. PTFE 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 PTFE is C2F4, and the Chemical Abstracts
Service 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.
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 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. Period of Investigation
IV. Discussion of the Methodology
V. Adjustment to Cash Deposit Rate for Export Subsidies
VI. Affirmative Preliminary Determination of Critical Circumstances
VII. Currency Conversion
VIII. Recommendation
[FR Doc. 2021-18969 Filed 9-1-21; 8:45 am]
BILLING CODE 3510-DS-P
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