Notice2022-02112
Acrylonitrile-Butadiene Rubber From France: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Partial Affirmative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures
Primary source
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Published
February 2, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) preliminarily determines that acrylonitrile-butadiene rubber (AB rubber) from France is being, or is likely to be, sold in the United States at less than fair value (LTFV). Commerce also preliminarily determines that critical circumstances exist with respect to certain imports of subject merchandise. The period of investigation is April 1, 2020, through March 31, 2021. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 87 Issue 22 (Wednesday, February 2, 2022)</title>
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[Federal Register Volume 87, Number 22 (Wednesday, February 2, 2022)]
[Notices]
[Pages 5787-5790]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-02112]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-427-832]
Acrylonitrile-Butadiene Rubber From France: Preliminary
Affirmative Determination of Sales at Less Than Fair Value and Partial
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 acrylonitrile-butadiene rubber (AB rubber) from France is being,
or is likely to be, sold in the United States at less than fair value
(LTFV). Commerce also preliminarily determines that critical
circumstances exist with respect to certain imports of subject
merchandise. The period of investigation is April 1, 2020, through
March 31, 2021. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable February 2, 2022.
FOR FURTHER INFORMATION CONTACT: Patrick Barton, AD/CVD Operations,
Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0012.
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 July 27,
2021.\1\ On November 17, 2021, Commerce postponed the preliminary
determination in this investigation from December 7, 2021, to January
26, 2022.\2\
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\1\ See Acrylonitrile-Butadiene Rubber from France, the Republic
of Korea, and Mexcio: Initiation of Less-Than-Fair-Value
Investigations, 86 FR 40192 (July 27, 2021) (Initiation Notice).
\2\ See Acrylonitrile-Butadiene Rubber from France, the Republic
of Korea, and Mexico: Postponement of Preliminary Determinations in
the Less-Than-Fair Value Investigations, 86 FR 64185 (November 17,
2021).
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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="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of
Acrylonitrile-Butadiene Rubber from France,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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[[Page 5788]]
Scope of the Investigation
The product covered by this investigation is AB rubber from France.
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\ in
the Initiation Notice, Commerce 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 it
appeared in the Initiation Notice. For a summary of the product
coverage comments and rebuttal responses submitted to the record for
this investigation, and accompanying analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\6\ Based on
Commerce's analysis of the parties' comments, Commerce is preliminarily
modifying the scope language as it appeared in the Initiation Notice.
See the revised scope in Appendix I to this notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice, 86 FR at 40193.
\6\ See Memorandum, ``Antidumping Duty Investigations of
Acrylonitrile-Butadiene Rubber from France, the Republic of Korea,
and Mexico: Preliminary Scope Decision Memorandum,'' dated
concurrently with this notice (Preliminary Scope Decision
Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated constructed export
prices 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, in
Part
On January 5, 2022, the petitioner \7\ 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 the subject merchandise from France.\8\ Section
733(e)(1) of the Act provides that Commerce will preliminarily
determine that critical circumstances exist in an LTFV investigation if
there is a reasonable basis to believe or suspect that: (A) there is a
history of dumping and material injury by reason of dumped imports in
the United States or elsewhere of the subject merchandise, or the
person by whom, or for whose account, the merchandise was imported knew
or should have known that the exporter was selling the subject
merchandise at less than its fair value and that there was likely to be
material injury by reason of such sales; and (B) there have been
massive imports of the subject merchandise over a relatively short
period.
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\7\ The petitioner in this investigation is Zeon Chemicals L.P.
and Zeon GP, LLC (collectively, the petitioner).
\8\ See Petitioner's Letter, ``Acrylonitrile-Butadiene Rubber
from France: Petitioner's Allegation of Critical Circumstances,''
dated January 5, 2022.
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In accordance with section 733(e) of the Act and 19 CFR 351.206,
Commerce preliminarily determines that critical circumstances do not
exist with respect to imports of AB rubber produced and exported by
Arlanxeo Emulsion Rubber France S.A.S. (Arlanxeo France). Furthermore,
we preliminarily determine that critical circumstances exist with
respect to imports of AD Rubber produced and exported by all other
producers and exporters from France. For a full description of
Commerce's preliminary critical circumstances determination, see the
Preliminary Decision Memorandum.
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 preliminarily calculated an
individual estimated weighted-average dumping margin for Arlanxeo
France, the sole mandatory respondent, that is not zero, de minimis, or
based entirely on facts otherwise available. Consequently, the rate
calculated for Arlanxeo France is also assigned as the rate for all
other producers and exporters in France, pursuant to section
735(c)(5)(A) of the Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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Arlanxeo Emulsion Rubber France S.A.S....................... 164.13
All Others.................................................. 164.13
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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 described in Appendix I 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 respondents
listed above will be equal to the company-specific estimated weighted-
average dumping margins 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, the 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 and exported by all other producers and
exporters from France. In accordance with section 733(e)(2)(A) of the
Act, the suspension of liquidation shall apply to unliquidated entries
of shipments of AB rubber that were produced and exported by all other
producers and exporters that were entered, or withdrawn from warehouse,
for consumption on or after the date which is 90 days before the
publication date of this notice in the Federal Register.
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These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to interested parties any calculations
performed in connection with this preliminary determination within five
days 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
The deadlines for the submission of case and rebuttal briefs with
respect to scope issues are specified in the Preliminary Scope Decision
Memorandum. Interested parties will be notified of the deadline for the
submission of case briefs with respect to non-scope issues at a later
date. Rebuttal briefs, limited to issues raised in non-scope related
case briefs, may be submitted no later than seven days after the
deadline date for case briefs.\9\ 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. Note that Commerce has temporarily modified
certain of its requirements for serving documents containing business
proprietary information until further notice.\10\
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\9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\10\ 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).
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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 of the
hearing.
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 in the Federal Register
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 December 20, 2021, pursuant to 19 CFR 351.210(e), Arlanxeo
France requested that Commerce postpone the final determination and
that provisional measures be extended to a period not to exceed six
months.\11\ In accordance with sections 735(a)(2)(A) and 733(d)(3) of
the Act and 19 CFR 351.210(b)(2)(ii), 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,
pursuant to section 735(a)(2) of the Act, Commerce will make its final
determination no later than 135 days after the date of publication of
this preliminary determination.
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\11\ See Arlanxeo France's Letter, ``Acrylonitrile-Butadiene
Rubber from France, Case No. A-427-832: Request to Postpone Final
Determination,'' dated December 20, 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 imports of AB rubber from France 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: January 26, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The product covered by this investigation is commonly referred
to as acrylonitrile butadiene rubber or nitrile rubber (AB Rubber).
AB Rubber is a synthetic rubber produced by the emulsion
polymerization of butadiene and acrylonitrile with or without the
incorporation of a third component selected from methacrylic acid or
isoprene. This scope covers AB Rubber in solid or non-aqueous liquid
form. The scope also includes carboxylated AB Rubber.
Excluded from the scope of this investigation is AB Rubber in
latex form (commonly classified under Harmonized Tariff Schedule of
the United States (HTSUS) subheading 4002.51.0000). Latex AB Rubber
is commonly either (a) acrylonitrile/butadiene polymer in latex form
or (b) acrylonitrile/butadiene/methacrylic acid polymer in latex
form. The broader definition of latex refers to a water emulsion of
a synthetic rubber obtained by polymerization.
Also excluded from the scope of this investigation is: (a) AB
Rubber containing additives incorporated during the compounding,
mixing, molding, or use of AB Rubber comprising greater than twenty
percent of the total weight of the product. Additives would include,
but are not limited to, fillers (e.g., carbon black, silica, clay);
reinforcement agents (e.g., fibers, carbon black, silica);
vulcanization agents (e.g., sulfur, sulfur complexes, peroxide); or
AB Rubber containing extension oils making up greater than forty
percent of the total weight of the product. Such products would be
generally classified under HTSUS subheading 4005; (b) AB Rubber
containing polyvinyl chloride (PVC) making up greater than twenty
percent of total weight of the product; (c) hydrogenated AB Rubber
(commonly referred to as AB Rubber)
[[Page 5790]]
produced by subsequent dissolution and hydrogenation of AB Rubber;
and (d) reactive liquid polymers containing acrylonitrile and
butadiene with amine, epoxy, carboxyl or methacrylate vinyl chemical
functionality.
Subject merchandise includes material matching the above
description that has been finished, packaged, or otherwise processed
in a third country, including by modifying physical form or
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 AB Rubber.
The merchandise subject to this investigation is classified in
the HTSUS at subheading 4002.59.0000. While the HTSUS subheading
numbers are provided for convenience and customs purposes, the
written description of the merchandise under investigation 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. Date of Sale
VI. Product Comparisons
VII. Constructed Export Price
VIII. Normal Value
IX. Preliminary Determination of Critical Circumstances
X. Currency Conversion
XI. Recommendation
[FR Doc. 2022-02112 Filed 2-1-22; 8:45 am]
BILLING CODE 3510-DS-P
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