[Federal Register Volume 80, Number 215 (Friday, November 6, 2015)]
[Notices]
[Pages 68847-68849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28351]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-021]
Melamine From the People's Republic of China: Final Affirmative
Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Commerce.
SUMMARY: The Department of Commerce (``Department'') determines that
countervailable subsidies are being provided to producers and exporters
of melamine from the People's Republic of China (``PRC''). For
information on the estimated subsidy rates, see the ``Suspension of
Liquidation'' section of this notice.
DATES: Effective: November 6, 2015.
FOR FURTHER INFORMATION CONTACT: Andrew Medley, AD/CVD Operations,
Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone 202-482-4987.
SUPPLEMENTARY INFORMATION:
Background
The petitioner to this investigation is Cornerstone Chemical
Company (``Petitioner''). The Department selected five mandatory
respondents; Far-Reaching Chemical Co., Ltd. (``Far-Reaching
Chemical''), Zhongyuan Dahua Group Co., Ltd. (``Zhongyuan Dahua''),
Qingdao Unichem International Trade Co., Ltd. (``Qingdao Unichem''), M
and A Chemicals Corp China (``M&A Chemicals''), and Shandong Liaherd
Chemical Industry Co., Ltd. (``Shandong Liaherd''). All five mandatory
respondents and the Government of the PRC refused to participate in
this investigation.
Period of Investigation
The period of investigation for which we are measuring subsidies is
January 1, 2013, through December 31, 2013.
[[Page 68848]]
Case History
The Department published its Preliminary Determination on April 20,
2015.\1\ In it, the Department applied an adverse inference to find
that the programs on which the Department initiated this investigation
and the programs which the Department subsequently included in this
investigation pursuant to allegations made by Petitioner,\2\ are
countervailable. Further, the Department applied an adverse inference
in its calculation of the ad valorem estimated countervailable subsidy
rate for Far-Reaching Chemical, Zhongyuan Dahua, Qingdao Unichem, M&A
Chemicals, and Shandong Liaherd. The Department invited, but did not
receive, interested party comments on the Preliminary Determination.
Thus, we have made no changes from the Preliminary Determination with
respect to the determination to apply adverse inferences. However, as
explained below, we made certain changes to the ad valorem final
subsidy rate.
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\1\ See Melamine From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination, 80 FR 21706 (April 20, 2015) (``Preliminary
Determination''), and the accompanying Preliminary Decision
Memorandum.
\2\ See the Department's memorandum entitled ``Countervailing
Duty Investigation on Melamine from the People's Republic of China:
January 27, 2015 New Subsidy Allegations,'' dated March 25, 2015.
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Also in the Preliminary Determination, pursuant to section
705(a)(1) of the Tariff Act of 1930, as amended (``the Act'') and 19
CFR 351.210(b)(4), we aligned the final countervailing duty (``CVD'')
determination with the final antidumping duty (``AD'') determination.
On July 2, 2015, the Department postponed the final AD determination
(and, thus, the instant, aligned, CVD determination) until November 2,
2015.\3\
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\3\ See Melamine from the People's Republic of China:
Postponement of Final Determination of Sales at Less Than Fair
Value, 80 FR 38175 (July 02, 2015).
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Scope of the Investigation
The merchandise subject to this investigation is melamine (Chemical
Abstracts Service (``CAS'') registry number 108-78-01, molecular
formula C3H6N6).\4\ Melamine is a
crystalline powder or granule typically (but not exclusively) used to
manufacture melamine formaldehyde resins. All melamine is covered by
the scope of this investigation irrespective of purity, particle size,
or physical form. Melamine that has been blended with other products is
included within this scope when such blends include constituent parts
that have been intermingled, but that have not been chemically reacted
with each other to produce a different product. For such blends, only
the melamine component of the mixture is covered by the scope of this
investigation. Melamine that is otherwise subject to this investigation
is not excluded when commingled with melamine from sources not subject
to this investigation. Only the subject component of such commingled
products is covered by the scope of this investigation.
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\4\ Melamine is also known as 2,4,6-triamino-s-triazine; 1,3,5-
Triazine-2,4,6-triamine; Cyanurotriamide; Cyanurotriamine;
Cyanuramide; and by various brand names.
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The subject merchandise is provided for in subheading 2933.61.0000
of the Harmonized Tariff Schedule of the United States (``HTSUS'').
Although the HTSUS subheading and CAS registry number are provided for
convenience and customs purposes, the written description of the scope
is dispositive.
Use of Facts Otherwise Available, Including Adverse Inferences
For purposes of this final determination, we relied on facts
available and applied an adverse inference, in accordance with sections
776(a) and (b) of the Act, with regard to (1) the existence of a
financial contribution, benefit, and specificity for the alleged
subsidy programs and (2) the net subsidy rates assigned to Far-Reaching
Chemical, Zhongyuan Dahua, Qingdao Unichem, M&A Chemicals, and Shandong
Liaherd. A full discussion of our decision to rely on adverse facts
available (``AFA'') is presented in the Preliminary Decision Memorandum
under the section ``Use of Facts Otherwise Available and Adverse
Inferences.'' However, for this final determination we are making
certain changes to the AFA rates.\5\ Specifically, we are revising the
AFA rates for ``Preferential Export Financing from the Export-Import
Bank of China'' and ``Reduced Fee Export Insurance'' to reflect the
highest calculated CVD rates for these programs.\6\
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\5\ See Memorandum to the File titled ``Melamine from the
People's Republic of China: Final Calculations,'' dated November 2,
2015.
\6\ Id. See also Countervailing Duty Investigation of Certain
Passenger Vehicle and Light Truck Tires From the People's Republic
of China: Final Affirmative Determination, and Final Affirmative
Critical Circumstances Determination, in Part, 80 FR 34888 (June 18,
2015), and accompanying issues and decision memorandum (where we
calculated a rate of 4.25 percent for the similar program ``Export
Seller's Credits from the Export Import Bank of China''), unchanged
in Certain Passenger Vehicle and Light Truck Tires From the People's
Republic of China: Amended Final Affirmative Antidumping Duty
Determination and Antidumping Duty Order; and Amended Final
Affirmative Countervailing Duty Determination and Countervailing
Duty Order, 80 FR 47902 (August 10, 2015).
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Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i) of the Act, we have
calculated individual rates for Far-Reaching Chemical, Zhongyuan Dahua,
Qingdao Unichem, M&A Chemicals, and Shandong Liaherd. Section
705(c)(5)(A)(i) of the Act states that for companies not individually
investigated, we will determine an ``all-others'' rate equal to the
weighted average countervailable subsidy rates established for
exporters and producers individually investigated, excluding any zero
and de minimis countervailable rates, and any rates determined entirely
under section 776 of the Act. Section 705(c)(5)(A)(ii) of the Act
states that if the countervailable subsidy rates for all exporters and
producers individually investigated are zero or de minimis rates, or
are determined entirely under section 776 of the Act, the Department
may use any reasonable method to establish an all-others rate for
exporters and producers not individually investigated, including
averaging the weighted average countervailable subsidy rates determined
for the exporters and producers individually investigated. As described
above, all of the mandatory respondents' subsidy rates were calculated
entirely under section 776 of the Act. Therefore, we have resorted to
``any reasonable method'' to derive the ``all-others'' rate, as
described under section 705(c)(5)(A)(ii) of the Act. We are basing the
``all-others'' rate on the simple average of the five rates determined
for the mandatory respondents, consistent with section 705(c)(5)(A)(ii)
of the Act.\7\
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\7\ See, e.g., Carbon and Certain Alloy Steel Wire Rod From the
People's Republic of China: Final Affirmative Countervailing Duty
Determination and Final Affirmative Critical Circumstances
Determination, 79 FR 68858 (November 19, 2014).
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[[Page 68849]]
We determine the total estimated net countervailable subsidy rates
to be:
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Subsidy
Company rate
(percent)
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Far-Reaching Chemical Co., Ltd.............................. 154.00
M and A Chemicals Corp China................................ 154.00
Qingdao Unichem International Trade Co., Ltd................ 154.00
Shandong Liaherd Chemical Industry Co., Ltd................. \8\ 156.90
Zhongyuan Dahua Group Co., Ltd.............................. 154.00
All Others.................................................. 154.58
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As a result of our Preliminary Determination, and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (``CBP'') to suspend liquidation of all entries of melamine
from the PRC that were entered or withdrawn from warehouse, for
consumption on or after April 20, 2015, the date of publication of the
Preliminary Determination in the Federal Register. In accordance with
section 703(d) of the Act, we issued instructions to CBP to discontinue
the suspension of liquidation for CVD purposes for subject merchandise
entered, or withdrawn from warehouse, on or after August 18, 2015, but
to continue the suspension of liquidation of all entries from April 20,
2015, through August 17, 2015.
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\8\ See Preliminary Decision Memorandum at 7, where we explained
that the AFA rate applicable to Shandong Liaherd includes additional
grant programs applicable only to Shandong Liaherd based upon
information contained in Shandong's Liaherd's financial statements.
See also ``Initiation Checklist: Melamine from the People's Republic
of China'' (December 2, 2014).
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If the U.S. International Trade Commission (``ITC'') issues a final
affirmative injury determination, we will issue a CVD order and
reinstate the suspension of liquidation under section 706(a) of the Act
and will require a cash deposit of estimated CVDs for such entries of
merchandise in the amounts indicated above. If the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated and all estimated duties deposited or
securities posted as a result of the suspension of liquidation will be
refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms it will not disclose such information, either publicly or
under an administrative protective order (``APO''), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation that is subject to sanction.
This determination is published pursuant to sections 705(d) and
777(i) of the Act.
Dated: October 30, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2015-28351 Filed 11-5-15; 8:45 am]
BILLING CODE 3510-DS-P