Notice2022-02113
Acrylonitrile-Butadiene Rubber From the Republic of Korea: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, in Part, Postponement of Final Determination, and Extension of Provisional Measures
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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 the Republic of Korea (Korea) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) 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 5796-5798]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-02113]
[[Page 5796]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-912]
Acrylonitrile-Butadiene Rubber From the Republic of Korea:
Preliminary Affirmative Determination of Sales at Less Than Fair Value,
Preliminary Affirmative Determination of Critical Circumstances, in
Part, 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 the Republic of
Korea (Korea) is being, or is likely to be, sold in the United States
at less than fair value (LTFV). The period of investigation (POI) 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: Melissa Kinter, AD/CVD Operations,
Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1413.
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 of this investigation and the revised deadline is now
January 26, 2022.\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="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\1\ See Acrylonitrile-Butadiene Rubber from France, the Republic
of Korea, and Mexico: 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 of
Antidumping Duty Investigations, 86 FR 64185 (November 17, 2021).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of
Acrylonitrile-Butadiene Rubber from the Republic of Korea,'' 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 AB rubber from Korea.
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 the 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 preliminary determination, 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.
\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 preliminary determination (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 export price in
accordance with section 772(a) of the Act. Normal value is calculated
in accordance with section 773 of the Act. Furthermore, pursuant to
section 776(a) and (b) of the Act, Commerce has preliminarily relied
upon facts otherwise available to assign the estimated weighted-average
dumping margin to mandatory respondent LG Chemical, Ltd. (LG Chem)
because it did not submit a response to Commerce's antidumping duty
questionnaire. Further, Commerce preliminarily determined that LG Chem
failed to cooperate by not acting to the best of its ability to comply
with a request for information and is using an adverse inference when
selecting from among the facts otherwise available, in accordance with
section 776(b) 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
In accordance with section 733(e) of the Act and 19 CFR 351.206,
Commerce preliminarily finds that critical circumstances do not exist
for Kumho Petrochemical Co., Ltd. (Kumho), but do exist for LG Chem and
the companies covered by the all-others rate. For a full description of
the methodology and results of Commerce's critical circumstances
analysis, see the Preliminary Decision Memorandum.
All-Others Rate
Sections 733(d)(1)(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 assigned a rate based
entirely on facts available to LG Chem. Therefore, the only rate that
is not zero, de minimis or based entirely on facts otherwise available
is the rate calculated for Kumho. Consequently, the rate calculated for
Kumho is also assigned as the rate for all other producers and
exporters.
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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Kumho Petrochemical Co., Ltd................................ 19.20
LG Chemical, Ltd............................................ 35.21
All Others.................................................. 19.20
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[[Page 5797]]
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 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, 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. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise produced or exported by LG Chem and the companies covered
by the all-others rate. 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. 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
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.\7\ Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\8\ 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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\7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\8\ See Temporary Rule Modifying AD/CVD Service Requirements Due
to COVID-19, 85 FR 17006 (March 26, 2020) (Temporary Rule); 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,
parties will be notified of the time and date for the hearing.\9\
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\9\ See 19 CFR 351.310(d).
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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 no 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 January 14, 2022, pursuant to 19 CFR 351.210(e), Kumho requested
that Commerce postpone the final determination and that provisional
measures be extended to a period not to exceed six months.\10\ In
accordance with section 735(a)(2)(A) 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, Commerce
will make its final determination no later than 135 days after the date
of publication of this preliminary determination.
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\10\ See Kumho's Letter, ``Request to Postpone the Final
Determination,'' dated January 14, 2022.
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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.
[[Page 5798]]
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).
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) produced by subsequent
dissolution and hydrogenation of AB Rubber; (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. Application of Facts Available and Use of Adverse Inferences
V. Discussion of the Methodology
VI. Date of Sale
VII. Product Comparisons
VIII. Export Price
IX. Normal Value
X. Preliminary Determination of Critical Circumstances
XI. Currency Conversion
XII. Recommendation
[FR Doc. 2022-02113 Filed 2-1-22; 8:45 am]
BILLING CODE 3510-DS-P
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