Notice2022-13561
Acrylonitrile-Butadiene Rubber From the Republic of Korea: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part
Primary source
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Published
June 24, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) 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 is April 1, 2020, through March 31, 2021.
Full Text
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<title>Federal Register, Volume 87 Issue 121 (Friday, June 24, 2022)</title>
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[Federal Register Volume 87, Number 121 (Friday, June 24, 2022)]
[Notices]
[Pages 37825-37828]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13561]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-912]
Acrylonitrile-Butadiene Rubber From the Republic of Korea: Final
Affirmative Determination of Sales at Less Than Fair Value and Final
Affirmative Determination of Critical Circumstances, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) 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 is April 1, 2020,
through March 31, 2021.
DATES: Applicable June 24, 2022.
FOR FURTHER INFORMATION CONTACT: Melissa Porpotage, AD/CVD Operations,
Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401
[[Page 37826]]
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
1413.
SUPPLEMENTARY INFORMATION:
Background
On February 2, 2022, Commerce published its Preliminary
Determination.\1\ Commerce invited interested parties to comment on the
Preliminary Determination.
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\1\ See Acrylonitrile-Butadiene Rubber from the Republic of
Korea: Preliminary Affirmative Determination of Sales at Less Than
Fair Preliminary Affirmative Determination of Critical
Circumstances, in Part, Postponement of Final Determination, and
Extension of Provisional Measures, 87 FR 5796 (February 2, 2022)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum.
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For a complete description of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\2\
The Issues and Decision Memorandum is a public document and is
available 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 Issues and 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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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the Antidumping Duty Investigation of
Acrylonitrile-Butadiene Rubber from the Republic of Korea,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope Comments
On January 26, 2022, we issued the Preliminary Scope Decision
Memorandum.\3\ Interested parties submitted case and rebuttal briefs
concerning the scope of this investigation.\4\ For a summary of the
product coverage comments and rebuttal responses submitted to the
record of this investigation, and accompanying analysis of all comments
timely received, see the Final Scope Memorandum.\5\ Based on the
comments received from interested parties, we are revising the scope of
this investigation as it appeared in the Preliminary Determination.\6\
The scope in the Appendix reflects these changes.
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\3\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated January 26, 2022 (Preliminary Scope Decision Memorandum).
\4\ See ARLANXEO Emulsion Rubber France S.A.S.'s Letter, ``Scope
Brief,'' dated February 25, 2022; see also Zeon Chemicals L.P. and
Zeon GP, LLC (collectively, the petitioner)'s Letter, ``Petitioner's
Rebuttal Scope Brief,'' dated March 4, 2022.
\5\ See Memorandum, ``Antidumping Duty Investigations of
Acrylonitrile-Butadiene Rubber from France, the Republic of Korea,
and Mexico: Final Scope Decision Memorandum,'' dated concurrently
with, and hereby adopted by, this notice (Final Scope Memorandum).
\6\ See Preliminary Determination, 87 FR at 5792. Specifically,
we added language to the scope that clarified that AB rubber
products that include a third component that is not methacrylic acid
or isoprene are not covered by the scope. See Final Scope
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.
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of an on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Tariff Act of
1930, as amended (the Act).\7\
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\7\ See Commerce's Letter, In Lieu of Verification
Questionnaire, dated February 14, 2022; see also Kumho's Letter,
``Response to the Verification Questionnaire,'' dated February 22,
2022.
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are discussed in the Issues and Decision Memorandum.
A list of the issues raised in the Issues and Decision Memorandum is
attached to this notice as Appendix II.
Methodology--Adverse Facts Available (AFA)
For purposes of this final determination, we relied, in part, on
facts available pursuant to section 776(a)(2)(A) of the Act. As
discussed in the Issues and Decision Memorandum, because one
respondent, LG Chemical, Ltd. (LG Chem), did not act to the best of its
ability in responding to our requests for information, we drew adverse
inferences, where appropriate, in selecting from among the facts
otherwise available, pursuant to section 776(b) of the Act. LG Chem did
not respond to Commerce's initial antidumping duty questionnaire and we
have continued to use an adverse inference in the selection of facts
available for determining the dumping rate for this company, pursuant
to section 776(d) of the Act. For further information, see the section
``Use of Adverse Facts Available'' in the accompanying Issues and
Decision Memorandum.
Changes From the Preliminary Determination
Based on our analysis of the comments received, we made certain
changes to the margin calculation for Kumho Petrochemical Co., Ltd.
(Kumho) since the Preliminary Determination. See the Issues and
Decision Memorandum for a discussion of these changes.
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated
weighted-average dumping margin for all other producers and exporters
not individually investigated shall be equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act. In this investigation, Commerce assigned an estimated weighted-
average dumping margin based entirely on facts available, i.e., under
section 776 of the Act, to LG Chem. Therefore, the only estimated
weighted-average dumping margin that is not zero, de minimis, or based
entirely on facts otherwise available is the margin calculated for
Kumho. Thus, the estimated weighted-average dumping margin calculated
for Kumho is the margin assigned to all other producers and exporters,
pursuant to section 735(c)(5)(A) of the Act.
Final Determination of Critical Circumstances, in Part
For the Preliminary Determination, in accordance with section
733(e) of the Act and 19 CFR 351.206, Commerce found that critical
circumstances exist, in part, with respect to imports of AB rubber from
Korea. Our final determination remains unchanged. Accordingly, pursuant
to section 735(a)(3) of the Act and 19 CFR 351.206, we continue to find
that critical circumstances exist for LG Chem and companies covered by
the ``all others'' rate, but do not exist for Kumho.
Final Determination
Commerce determines that the following estimated weighted-average
dumping margins exist:
------------------------------------------------------------------------
Estimated
weighted-
average
Exporter or producer dumping
margin
(percent)
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Kumho Petrochemical Co., Ltd................................ 18.80
LG Chemical, Ltd............................................ 35.31
All Others.................................................. 18.80
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[[Page 37827]]
Disclosure
Commerce intends to disclose its calculations performed in this
final 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).
Continuation of Suspension of Liquidation
Consistent with the Preliminary Determination, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue the
suspension of liquidation of all entries of subject merchandise, as
described in Appendix I, entered, or withdrawn from warehouse, for
consumption on or after February 2, 2022, the date of publication in
the Federal Register of the affirmative Preliminary Determination.
Further, in accordance with section 733(e)(2)(A) of the Act, Commerce
will instruct CBP to continue the suspension of liquidation of entries
of subject merchandise, as described in Appendix I, produced and/or
exported by LG Chem or companies covered by the all-others rate which
entered, or were withdrawn from warehouse, for consumption on or after
November 4, 2021, which is 90 days before the date of publication in
the Federal Register of the affirmative Preliminary Determination.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), upon the publication of this notice, we will instruct CBP
to require a cash deposit for such entries of merchandise equal to the
following: (1) the cash deposit rate for the respondents listed in the
table above will be equal to the company-specific estimated weighted-
average dumping margin determined in this final 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 listed in the table above. These
suspension of liquidation instructions will remain in effect until
further notice.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of our final affirmative
determination of sales at LTFV. 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.
Because Commerce's final determination in this investigation is
affirmative, in accordance with section 735(b)(2) of the Act, the ITC
will make its final determination as to whether the domestic industry
in the United States is materially injured, or threatened with material
injury, by reason of imports of subject merchandise from Korea no later
than 45 days after our final determination. If the ITC determines that
such injury does not exist, this proceeding will be terminated, and all
cash deposits posted will be refunded. If the ITC determines that such
injury does exist, Commerce will issue an antidumping duty order
directing CBP to assess, upon further instruction by Commerce,
antidumping duties on all imports of the subject merchandise entered,
or withdrawn from warehouse, for consumption on or after the February
2, 2022, effective date of the suspension of liquidation.
Notification Regarding Administrative Protective Order
This notice serves as a reminder to the parties subject to an
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of the return or 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 sanctionable
violation.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).
Dated: June 17, 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. AB Rubber products that include a third component that is
not methacrylic acid or isoprene are not covered by the scope. 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 HNBR) 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 Issues and Decision
Memorandum
I. Summary
II. Background
III. Use of Adverse Facts Available
IV. Changes Since the Preliminary Determination
V. Discussion of the Issues
Comment 1: Reclassification of Fumigation Expenses
Comment 2: Market Rate for Affiliated Input Purchases from Hanju
Co. Ltd. (Hanju)
Comment 3: Short-Term Interest Income Offset
[[Page 37828]]
VI. Recommendation
[FR Doc. 2022-13561 Filed 6-23-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on June 24, 2022.
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