[Federal Register Volume 79, Number 9 (Tuesday, January 14, 2014)]
[Notices]
[Pages 2417-2420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-00527]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-009]
Calcium Hypochlorite From the People's Republic of China:
Initiation of Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, formerly Import Administration,
International Trade Administration, Department of Commerce.
DATES: Effective Date: January 14, 2014.
FOR FURTHER INFORMATION CONTACT: Katie Marksberry, Office V, AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
7906.
SUPPLEMENTARY INFORMATION:
The Petition
On December 18, 2013, the Department of Commerce (the
``Department'') received a countervailing duty (``CVD'') petition
concerning imports of calcium hypochlorite from the People's Republic
of China (``PRC''), filed in proper form by Arch Chemicals, Inc.
(``Petitioner''), a domestic producer of calcium hypochlorite.\1\ The
CVD Petition was accompanied by an antidumping duty (``AD'') petition
concerning imports of calcium hypochlorite from the PRC. On December
19, 2013, and December 24, 2013, the Department requested additional
information and clarification of certain areas of the Petition, and on
December 23, 2013, and December 30, 2013, Petitioner filed a response
to each request.\2\
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\1\ See ``Petition for the Imposition of Antidumping and
Countervailing Duties on Calcium Hypochlorite from the People's
Republic of China, dated December 18, 2013 (hereafter referred to as
the ``Petition'').
\2\ See Petitioner's December 23, 2013, filing titled, ``Calcium
Hypochlorite from the People's Republic of China: Response to
Supplemental Questions''; see also Petitioner's December 30, 2013,
filing titled, ``Petition for the Imposition of Antidumping Duties
on Imports of Calcium Hypochlorite from the People's Republic of
China: Response to General Supplemental Questions'' (``General
Issues Supplement'').
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the ``Act''), Petitioner alleges that producers/exporters of
calcium hypochlorite 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 Petitioner 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. The Department also finds that
Petitioner has demonstrated sufficient industry support with respect to
the initiation of the CVD investigation that Petitioner is
requesting.\3\
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\3\ See ``Determination of Industry Support for the Petition''
section, below.
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Period of Investigation
The period of investigation (``POI'') is January 1, 2012 through
December 31, 2012, in accordance with 19 CFR 351.204(b)(2).
Scope of the Investigation
The product covered by this investigation is calcium hypochlorite
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
Petitioner 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 \4\, 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 January 27, 2014,
which is 20 calendar days from the signature date of this notice. All
comments must be filed on the record of the CVD investigation, as well
as the concurrent AD investigation.
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\4\ 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 Enforcement & Compliance'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 5
p.m. on the due date. Documents excepted from the electronic submission
requirements must be filed manually (i.e., in paper form) with the
Enforcement & Compliance'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.\5\
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\5\ 19 CFR 351.303(b)(1). 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 January 3, 2014.\6\
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\6\ See ``Countervailing Duty Petition on Calcium Hypochlorite
from the People's Republic of China: Consultations with the
Government of the People's Republic of China,'' dated January 3,
2014.
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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, 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
[[Page 2418]]
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,\7\
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.\8\
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\7\ See section 771(10) of the Act.
\8\ 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, Petitioner does 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 calcium hypochlorite, as defined in
the scope of the investigation, constitutes a single domestic like
product and we have analyzed industry support in terms of that domestic
like product.\9\
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\9\ See Countervailing Duty Investigation Initiation Checklist:
Calcium Hypochlorite from the People's Republic of China (``CVD
Initiation Checklist''), at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing Duty Petitions
Covering Calcium Hypochlorite from 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
(``CRU''), Room 7046 of the main Department of Commerce building.
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In determining whether Petitioner has 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, Petitioner provided its 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.\10\ Petitioner estimated total 2012 production of the
domestic like product using its own production data and knowledge of
the industry.\11\ We have relied upon data Petitioner provided for
purposes of measuring industry support.\12\
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\10\ See Volume I of the Petition, at 3-4 and Exhibit GEN-2.
\11\ Id.
\12\ See CVD 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 Petitioner has 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.\13\ 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.\14\
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\13\ Id.
\14\ Id.
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The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act and it has demonstrated sufficient
industry support with respect to the countervailing duty investigation
that it is requesting the Department initiate.\15\
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\15\ 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
Petitioner alleges 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. Petitioner alleges that subject
imports exceed the negligibility threshold provided for under section
771(24)(A) of the Act.\16\
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\16\ See Volume I of the Petition, at 18.
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Petitioner contends that the industry's injured condition is
illustrated by reduced market share; underselling and price depression
or suppression; lost sales and revenues; reduced production and
capacity utilization; decline in employment variables; and decline in
financial performance.\17\ 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.\18\
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\17\ See Volume I of the Petition, at 17-30 and Exhibits INJ-1
through INJ-8.
\18\ See Initiation Checklist, at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Petitions Covering Calcium Hypochlorite from the People's Republic
of China.
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Initiation of CVD 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 petitioner
supporting the allegations.
The Department has examined the Petition on calcium hypochlorite
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 initiating a CVD investigation to
determine whether producers/exporters of calcium hypochlorite 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 all 21
alleged programs. For a full discussion of the basis for our decision
to initiate on each program, see the CVD Initiation Checklist.
[[Page 2419]]
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 number:
2828.10.0000. 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. We intend to make our decision regarding
respondent selection within 20 days of publication of this Federal
Register notice.
Distribution of Copies of the 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 provision 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 calcium hypochlorite from the PRC
materially injure, or threaten material injury to, a U.S. industry.\19\
A negative ITC determination will result in the investigation being
terminated.\20\ Otherwise, the investigation will proceed according to
statutory and regulatory time limits.
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\19\ See section 703(a)(2) of the Act.
\20\ 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://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt, prior to
submitting factual information for this investigation.
Revised Extension of Time Limits Regulation
On September 20, 2013, the Department modified its regulation
concerning the extension of time limits for submissions in AD and CVD
proceedings.\21\ The modification clarifies that parties may request an
extension of time limits before a time limit established under Part 351
expires, or as otherwise specified by the Secretary. In general, an
extension request will be considered untimely if it is filed after the
time limit established under Part 351 expires. For submissions which
are due from multiple parties simultaneously, an extension request will
be considered untimely if it is filed after 10:00 a.m. on the due date.
Examples include, but are not limited to: (1) Case and rebuttal briefs,
filed pursuant to 19 CFR 351.309; (2) factual information to value
factors under section 19 CFR 351.408(c), or to measure the adequacy of
remuneration under section 19 CFR 351.511(a)(2), filed pursuant to 19
CFR 351.301(c)(3) and rebuttal, clarification and correction filed
pursuant to 19 CFR 351.301(c)(3)(iv); (3) comments concerning the
selection of a surrogate country and surrogate values and rebuttal; (4)
comments concerning CBP data; and (5) quantity and value
questionnaires. Under certain circumstances, the Department may elect
to specify a different time limit by which extension requests will be
considered untimely for submissions which are due from multiple parties
simultaneously. In such a case, the Department will inform parties in
the letter or memorandum setting forth the deadline (including a
specified time) by which extension requests must be filed to be
considered timely. This modification also requires that an extension
request must be made in a separate, stand-alone submission, and
clarifies the circumstances under which the Department will grant
untimely-filed requests for the extension of time limits. These
modifications are effective for all segments initiated on or after
October 21, 2013. Review Extension of Time Limits; Final Rule,
available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information in this segment.
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\21\ See Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013).
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\22\
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.\23\ 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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\22\ See section 782(b) of the Act.
\23\ 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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Notification to Interested Parties
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://enforcement.trade.gov/apo/index.html.
[[Page 2420]]
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: January 7, 2014.
Paul Piquado,
Assistant Secretary for Enforcement & Compliance.
Appendix I
Scope of the Investigation
The product covered by this investigation is calcium
hypochlorite, regardless of form (e.g., powder, tablet (compressed),
crystalline (granular), or in liquid solution), whether or not
blended with other materials, containing at least 10% available
chlorine measured by actual weight. The scope also includes
bleaching powder and hemibasic calcium hypochlorite.
Calcium hypochlorite has the general chemical formulation
Ca(OCl)2, but may also be sold in a more dilute form as
bleaching powder with the chemical formulation,
Ca(OCl)2.CaCl2.Ca(OH)2.2H2
O or hemibasic calcium hypochlorite with the chemical formula of
2Ca(OCl)2.Ca(OH)2 or
Ca(OCl)2.0.5Ca(OH)2. Calcium hypochlorite has
a Chemical Abstract Service (``CAS'') registry number of 7778-54-3,
and a U.S. Environmental Protection Agency (``EPA) Pesticide Code
(``PC'') Number of 014701. The subject calcium hypochlorite has an
International Maritime Dangerous Goods (``IMDG'') code of Class 5.1
UN 1748, 2880, or 2208 or Class 5.1/8 UN 3485, 3486, or 3487.
Calcium hypochlorite is currently classifiable under the
subheading 2828.10.0000 of the Harmonized Tariff Schedule of the
United States (``HTSUS''). The subheading covers commercial calcium
hypochlorite and other calcium hypochlorite. When tableted or
blended with other materials, calcium hypochlorite may be entered
under other tariff classifications, such as 3808.94.5000 and
3808.99.9500, which cover disinfectants and similar products. While
the HTSUS subheadings, the CAS registry number, the U.S. EPA PC
number, and the IMDG codes are provided for convenience and customs
purposes, the written description of the scope of this investigation
is dispositive.
[FR Doc. 2014-00527 Filed 1-13-14; 8:45 am]
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