[Federal Register Volume 78, Number 186 (Wednesday, September 25, 2013)]
[Notices]
[Pages 59001-59004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23388]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-991]
Chlorinated Isocyanurates From the People's Republic of China:
Initiation of Countervailing Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: September 25, 2013.
FOR FURTHER INFORMATION CONTACT: Matthew Renkey or Paul Walker, AD/CVD
Operations, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230; telephone: 202.482.2312 or 202.482.0413,
respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On August 29, 2013, the Department of Commerce (the ``Department'')
received a countervailing duty (``CVD'') petition concerning imports of
chlorinated isocyanurates (``chlorinated isos'') from the People's
Republic of China (``PRC''), filed in proper form by Clearon Corp. and
Occidental Chemical Corporation (``Petitioners''), domestic producers
of chlorinated isos. The CVD petition was accompanied by an antidumping
duty (``AD'') petition concerning imports of chlorinated isos from
Japan.\1\ On September 4 and 5, 2013, the Department issued additional
requests for information and clarification of certain areas of the
Petition. Based on the Department's requests, Petitioners timely filed
additional information pertaining to the Petition on September 9,
2013.\2\
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\1\ See ``Petition for the Imposition of Antidumping Duties on
Chlorinated Isocyanurates from Japan and Countervailing Duties on
Chlorinated Isocyanurates from the People's Republic of China, dated
August 29, 2013 (hereafter referred to as the ``Petition'').
\2\ See Petitioners' September 9, 2013 response.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the ``Act''), Petitioners allege that producers/exporters of
chlorinated isos in the PRC received countervailable subsidies within
the meaning of sections 701 and 771(5) of the Act, and that imports
from these producers/exporters materially injure, or threaten material
injury to, an industry in the United States.
The Department finds that Petitioners filed this Petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act, and Petitioners have demonstrated
sufficient industry support with respect to the CVD investigation that
it is requesting the Department to initiate (see ``Determination of
Industry Support for the Petition'' below).
Period of Investigation
The period of investigation (``POI'') is 1/1/12--12/31/12, in
accordance with 19 CFR 351.204(b)(2).
Scope of the Investigation
The products covered by this investigation are chlorinated isos
from the PRC. For a full description of the scope of the investigation,
please see the ``Scope of Investigation'' in the appendix to this
notice.
Comments on the Scope of the Investigation
During our review of the Petition, we solicited information from
Petitioners to ensure that the proposed scope language is an accurate
reflection of the products for which the domestic industry is seeking
relief. Moreover, as discussed in the preamble to the Department's
regulations,\3\ we are setting aside a period for interested parties to
raise issues regarding product coverage. The Department encourages all
interested parties to submit such comments by October 8, 2013, which is
20 calendar days from the signature date of this notice. All comments
must be filed on the record of the PRC CVD investigation, as well as
the concurrent Japan AD investigation.
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\3\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997).
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Filing Requirements
All submissions to the Department must be filed electronically
using Import Administration's Antidumping and Countervailing Duty
Centralized Electronic Service System (``IA ACCESS''). An
electronically filed document must be received successfully in its
entirety by the Department's electronic records system, IA ACCESS, by
the time and date set by the Department. Documents excepted from the
electronic submission requirements must be filed manually (i.e., in
paper form) with the Import Administration's APO/Dockets Unit, Room
1870, U.S. Department of Commerce, 14th Street and Constitution Avenue
NW., Washington, DC 20230, and stamped with the date and time of
receipt by the deadline established by the Department.\4\
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\4\ Information on help using IA ACCESS can be found at https://iaaccess.trade.gov/help.aspx and a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
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Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department
held consultations with the government of the PRC (hereinafter, the
``GOC'') with respect to the Petition on September 12, 2013.\5\
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\5\ See ``Countervailing Duty Petition on Chlorinated
Isocyanurates from the People's Republic of China: Consultations
with the Government of the People's Republic of China,'' dated
September 12, 2013.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product,
[[Page 59002]]
the Department shall: (i) poll the industry or rely on other
information in order to determine if there is support for the petition,
as required by subparagraph (A); or (ii) determine industry support
using a statistically valid sampling method to poll the industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission
(``ITC''), which is responsible for determining whether ``the domestic
industry'' has been injured, must also determine what constitutes a
domestic like product in order to define the industry. While both the
Department and the ITC must apply the same statutory definition
regarding the domestic like product,\6\ they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law.\7\
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\6\ See section 771(10) of the Act
\7\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioners do not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that chlorinated isos, as defined in the
scope of the investigation, constitute a single domestic like product
and we have analyzed industry support in terms of that domestic like
product.\8\
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\8\ See Countervailing Duty Investigation Initiation Checklist:
Chlorinated Isocyanurates from the People's Republic of China
(``Initiation Checklist''), at Attachment II, Analysis of Industry
Support for the Petitions Covering Chlorinated Isocyanurates from
Japan and the People's Republic of China (``Attachment II''). This
checklist is dated concurrently with this notice and on file
electronically via IA ACCESS. Access to documents filed via IA
ACCESS is also available in the Central Records Unit, Room 7046 of
the main Department of Commerce building.
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In determining whether Petitioners have standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of Investigation'' section above. To
establish industry support, Petitioners provided their production of
the domestic like product in 2012, and compared this to the estimated
total production of the domestic like product for the entire domestic
industry.\9\ Petitioners estimated total 2012 production of the
domestic like product using their own production data and knowledge of
the industry.\10\ We have relied upon data Petitioners provided for
purposes of measuring industry support.\11\
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\9\ See Volume I of the Petition, at 3-4, and Volume II of the
Petition, at Exhibits GEN-9 and GEN-12.
\10\ Id.
\11\ See Initiation Checklist, at Attachment II.
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Based on information provided in the Petition, supplemental
submission, and other information readily available to the Department,
we determine that Petitioners have met the statutory criteria for
industry support under section 702(c)(4)(A)(i) of the Act because the
domestic producers (or workers) who support the Petition account for at
least 25 percent of the total production of the domestic like
product.\12\ Based on information provided in the Petition, the
domestic producers (or workers) have met the statutory criteria for
industry support under section 702(c)(4)(A)(ii) of the Act because the
domestic producers (or workers) who support the Petition account for
more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the Petition. Accordingly, the Department determines
that the Petition was filed on behalf of the domestic industry within
the meaning of section 702(b)(1) of the Act.\13\
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\12\ Id.
\13\ Id.
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The Department finds that Petitioners filed the Petition on behalf
of the domestic industry because they are interested parties as defined
in section 771(9)(C) of the Act and they have demonstrated sufficient
industry support with respect to the CVD investigation that they are
requesting the Department initiate.\14\
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\14\ Id.
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Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from the PRC materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
Petitioners allege that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, Petitioners allege
that subject imports exceed the negligibility threshold provided for
under section 771(24)(A) of the Act.\15\
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\15\ See Volume I of the Petition, at 112-113 and Volume IV of
the Petition, at Exhibit CVD-86.
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Petitioners contend that the industry's injured condition is
illustrated by reduced market share; underselling and price depression
or suppression; lost sales and revenues; decline in production,
shipments, and capacity utilization; reduced employment-related
variables; and decline in financial performance.\16\ We have assessed
the allegations and supporting evidence regarding material injury,
threat of material injury, and causation, and we have determined that
these allegations are properly supported by adequate evidence and meet
the statutory requirements for initiation.\17\
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\16\ See Volume I of the Petition, at 96-132, Volume II of the
Petition, at Exhibits GEN-2 and GEN-9 through GEN-17, and Volume IV
of the Petition, at Exhibit CVD-86.
\17\ See Initiation Checklist, at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Petitions Covering Chlorinated Isocyanurates from Japan and the
People's Republic of China.
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Initiation of Countervailing Duty Investigation
Section 702(b)(1) of the Act requires the Department to initiate a
CVD proceeding whenever an interested party files a CVD petition on
behalf of an industry that: (1) alleges the elements necessary for an
imposition of a duty under section 701(a) of the Act; and (2) is
accompanied by information reasonably available to the petitioners
supporting the allegations.
The Department has examined the Petition on chlorinated isos from
the PRC and finds that it complies with the requirements of section
702(b)(1) of the Act. Therefore, in accordance with section 702(b)(1)
of the Act, we are
[[Page 59003]]
initiating a CVD investigation to determine whether producers/exporters
of chlorinated isos in the PRC receive countervailable subsidies. For a
discussion of evidence supporting our initiation determination, see the
CVD Initiation Checklist which accompanies this notice.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation of 29 alleged
programs. For the other nine programs alleged by Petitioners, we have
determined that the requirements for initiation have not been met. For
a full discussion of the basis for our decision to initiate or not
initiate on each program, see the CVD Initiation Checklist.
Respondent Selection
For this investigation, the Department intends to select
respondents based on U.S. Customs and Border Protection (``CBP'') data
for U.S. imports during the POI (i.e., calendar year 2012) under the
following Harmonized Tariff Schedule of the United States numbers:
2933.69.6015, 2933.69.6021, 2933.69.6050, 3808.50.4000, 3808.94.5000,
and 3808.99.9500. We intend to release the CBP data under
Administrative Protective Order (``APO'') to all parties with access to
information protected by APO within five days of the announcement of
the initiation of this investigation. Interested parties may submit
comments regarding the CBP data and respondent selection within seven
calendar days of release of this data. Comments must be filed
electronically using IA ACCESS. An electronically filed document must
be received successfully in its entirety by the Department's electronic
records system, IA ACCESS, by 5 p.m. Eastern time by the date noted
above. Documents excepted from the electronic submission requirements
must be filed manually (i.e., in paper form) with the Import
Administration's APO/Dockets Unit, Room 1870, U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230, and stamped with the date and time of receipt by the deadline
noted above. We intend to make our decision regarding respondent
selection within 20 days of publication of this Federal Register
notice. Interested parties must submit applications for disclosure
under APO in accordance with 19 CFR 351.305(b). Instructions for filing
such applications may be found on the Department's Web site at http://ia.ita.doc.gov/apo.
Distribution of Copies of the CVD Petition
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the representatives of the GOC. Because of the particularly
large number of producers/exporters identified in the Petition, the
Department considers the service of the public version of the petition
to the foreign producers/exporters satisfied by the delivery of the
public version to the GOC, consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of subsidized chlorinated isos from the PRC
materially injure, or threaten material injury to, a U.S. industry.\18\
A negative ITC determination will result in the investigation being
terminated.\19\ Otherwise, the investigation will proceed according to
statutory and regulatory time limits.
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\18\ See section 703(a)(2) of the Act.
\19\ See section 703(a)(1) of the Act.
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Submission of Factual Information
On April 10, 2013, the Department published Definition of Factual
Information and Time Limits for Submission of Factual Information:
Final Rule, 78 FR 21246 (April 10, 2013), which modified two
regulations related to AD and CVD proceedings: the definition of
factual information (19 CFR 351.102(b)(21)), and the time limits for
the submission of factual information (19 CFR 351.301). The final rule
identifies five categories of factual information in 19 CFR
351.102(b)(21), which are summarized as follows: (i) evidence submitted
in response to questionnaires; (ii) evidence submitted in support of
allegations; (iii) publicly available information to value factors
under 19 CFR 351.408(c) or to measure the adequacy of remuneration
under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the
Department; and (v) evidence other than factual information described
in (i)-(iv). The final rule requires any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted and, if the information is submitted
to rebut, clarify, or correct factual information already on the
record, to provide an explanation identifying the information already
on the record that the factual information seeks to rebut, clarify, or
correct. The final rule also modified 19 CFR 351.301 so that, rather
than providing general time limits, there are specific time limits
based on the type of factual information being submitted. These
modifications are effective for all proceeding segments initiated on or
after May 10, 2013, and thus are applicable to this investigation.
Please review the final rule, available at http://ia.ita.doc.gov/frn/2013/1304frn/2013-08227.txt, prior to submitting factual information in
these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\20\
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials as well as their
representatives in all AD or CVD investigations or proceedings
initiated on or after August 16, 2013, including this
investigation.\21\ The formats for the revised certifications are
provided at the end of the Final Rule. The Department intends to reject
factual submissions if the submitting party does not comply with the
revised certification requirements.
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\20\ See section 782(b) of the Act
\21\ See Certification of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (``Final Rule'').
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This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: September 18, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.
Appendix
Scope of the Investigation
The products covered by this investigation are chlorinated
isocyanurates. Chlorinated isocyanurates are derivatives of cyanuric
acid, described as chlorinated s-triazine triones. There are three
primary chemical compositions of chlorinated isocyanurates: (1)
trichloroisocyanuric acid (``TCCA'')
(Cl3(NCO)3), (2) sodium dichloroisocyanurate
(dihydrate) (NaCl2(NCO)3 X 2H2O),
and (3) sodium dichloroisocyanurate (anhydrous)
(NaCl2(NCO)3). Chlorinated isocyanurates are
available in powder, granular and solid (e.g., tablet or stick)
forms.
Chlorinated isocyanurates are currently classifiable under
subheadings 2933.69.6015, 2933.69.6021, 2933.69.6050, 3808.50.4000,
3808.94.5000, and 3808.99.9500 of the Harmonized Tariff Schedule of
the United States (``HTSUS''). The tariff classification
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2933.69.6015 covers sodium dichloroisocyanurates (anhydrous and
dihydrate forms) and trichloroisocyanuric acid. The tariff
classifications 2933.69.6021 and 2933.69.6050 represent basket
categories that include chlorinated isocyanurates and other
compounds including an unfused triazine ring. The tariff
classifications 3808.50.4000, 3808.94.5000 and 3808.99.9500 cover
disinfectants that include chlorinated isocyanurates. The HTSUS
subheadings are provided for convenience and customs purposes. The
written description of the scope of the investigation is
dispositive.
[FR Doc. 2013-23388 Filed 9-24-13; 8:45 am]
BILLING CODE 3510-DS-P