Notice2022-25050
Emulsion Styrene-Butadiene Rubber From the Russian Federation: Final Affirmative Determination of Sales at Less Than Fair Value and Classification of the Russian Federation as a Non-Market Economy
Primary source
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Published
November 17, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that imports of emulsion styrene-butadiene rubber (ESBR) from the Russian Federation (Russia) are being, or are likely to be, sold in the United States at less than fair value (LTFV) for the period of investigation (POI) October 1, 2020, through September 30, 2021. Commerce has also reconsidered Russia's market economy status and has determined to treat Russia as a non-market economy in forthcoming proceedings.
Full Text
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<title>Federal Register, Volume 87 Issue 221 (Thursday, November 17, 2022)</title>
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[Federal Register Volume 87, Number 221 (Thursday, November 17, 2022)]
[Notices]
[Pages 69002-69004]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-25050]
[[Page 69002]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-821-835]
Emulsion Styrene-Butadiene Rubber From the Russian Federation:
Final Affirmative Determination of Sales at Less Than Fair Value and
Classification of the Russian Federation as a Non-Market Economy
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
imports of emulsion styrene-butadiene rubber (ESBR) from the Russian
Federation (Russia) are being, or are likely to be, sold in the United
States at less than fair value (LTFV) for the period of investigation
(POI) October 1, 2020, through September 30, 2021. Commerce has also
reconsidered Russia's market economy status and has determined to treat
Russia as a non-market economy in forthcoming proceedings.
DATES: Applicable November 17, 2022.
FOR FURTHER INFORMATION CONTACT: Caitlin Monks or Zachary Le Vene, AD/
CVD Operations, Office VII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-2670 or (202)
482-0056, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 27, 2022, Commerce published in the Federal Register the
preliminary affirmative determination in the LTFV investigation of ESBR
from Russia, in which it also postponed the final determination until
November 9, 2022.\1\ We invited interested parties to comment on the
Preliminary Determination. A summary of the events that occurred since
Commerce published the Preliminary Determination may be found in the
Issues and Decision Memorandum.\2\
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\1\ See Emulsion Styrene-Butadiene Rubber from the Russian
Federation: Preliminary Affirmative Determination of Sales at Less
Than Fair Value, Postponement of Final Determination and Extension
of Provisional Measures, 87 FR 38057 (June 27, 2022) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Decision Memorandum for the Final
Determination in the Less-Than-Fair-Value Investigation of Emulsion
Styrene-Butadiene Rubber from the Russian Federation, and
Classification of the Russian Federation as a Non-Market Economy''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is ESBR from Russia. For
a complete description of the scope of this investigation, see Appendix
I.
Analysis of Comments Received
All the issues raised in the case and rebuttal briefs that were
submitted by parties in this investigation are addressed in the Issues
and Decision Memorandum. A list of the issues addressed in the Issues
and Decision Memorandum is attached to this notice as Appendix II. The
Issues and 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 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>.
Verification
Commerce conducted verification of the information relied upon in
making its final determination in this investigation with respect to
Public Joint Stock Company SIBUR Holding, Joint Stock Company
Voronezhsintezkauchuk, SIBUR LLC, and SIBUR International GmbH
(collectively, SIBUR) in Vienna, Austria,\3\ as well as Public Joint
Stock Company TATNEFT, LLC TATNEFT-AZS Center, LLC Togliattikauchuk
(alternatively, LLC Tolyattikauchuk), and Tolyattisintez (collectively,
TATNEFT) in Zug, Switzerland, in accordance with section 782(i) of the
Tariff Act of 1930, as amended (the Act).\4\ Specifically, Commerce
conducted on-site verifications of the home market, U.S. sales, and
cost of production responses submitted by SIBUR and TATNEFT.
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\3\ See Memoranda, ``Less-Than-Fair-Value Investigation of
Emulsion Styrene-Butadiene Rubber from the Russian Federation:
Verification of Sales Responses of SIBUR,'' dated October 5, 2022;
and ``Verification of the Cost Responses of PJSC SIBUR Holding and
JSC Voronezhsintezkauchuk in the Antidumping Duty Investigation of
Emulsion Styrene-Butadiene Rubber from the Russian Federation,''
dated September 23, 2022.
\4\ See Memoranda, ``Less-Than-Fair-Value Investigation of
Emulsion Styrene-Butadiene Rubber from the Russian Federation:
Verification of Sales Responses of SIBUR,'' dated October 5, 2022;
``Verification of the Cost Responses of PJSC SIBUR Holding and JSC
Voronezhsintezkauchuk in the Antidumping Duty Investigation of
Emulsion Styrene-Butadiene Rubber from the Russian Federation,''
dated September 23, 2022; and ``Verification of the Sales Response
of TATNEFT in the Antidumping Investigation of Emulsion Styrene-
Butadiene Rubber from the Russian Federation,'' dated September 30,
2022; and ``Verification of the Cost Response of PJSC TATNEFT and
LLC Tolyattikauchuk in the Antidumping Duty Investigation of
Emulsion Styrene-Butadiene Rubber from Russia,'' dated October 6,
2022.
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Changes Since the Preliminary Determination
Based on our analysis of the comments received, we have made
certain changes to the margin calculations for SIBUR and TATNEFT. For a
discussion of these changes, see the Issues and Decision Memorandum.
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 (i.e., facts otherwise available).
Commerce calculated individual estimated weighted-average dumping
margins for both SIBUR and TATNEFT, the two respondents selected for
individual examination in this investigation, that are not zero, de
minimis, or based entirely on facts otherwise available. Commerce
calculated the all-others rate using a weighted average of the
estimated weighted-average dumping margins calculated for the
individually examined respondents using the publicly ranged total
values of each respondent's sales of the merchandise under
consideration to the United States during the POI.\5\
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\5\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated weighted-average
dumping margins calculated for the examined respondents; (B) a
simple average of the estimated weighted-average dumping margins
calculated for the examined respondents; and (C) a weighted-average
of the estimated weighted-average dumping margins calculated for the
examined respondents using each company's publicly-ranged U.S. sale
values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters. See
Ball Bearings and Parts Thereof from France, Germany, Italy, Japan,
and the United Kingdom: Final Results of Antidumping Duty
Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010). For a complete analysis of the data, see
Memorandum, ``Final Determination Calculation for All-Others,''
dated concurrently with this notice.
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[[Page 69003]]
Final Determination
The final estimated weighted-average dumping margins are as
follows:
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\6\ Commerce determines that Public Joint Stock Company SIBUR
Holding (SIBUR Holding)/SIBUR International GmbH (SIBUR
International)/SIBUR LLC/Joint Stock Company Voronezhsintezkauchuk
(VSK) are a single entity. See Issues and Decision Memorandum; see
also Memorandum, ``SIBUR Affiliation and Single Entity Memorandum,''
dated June 14, 2022; and Memorandum, ``SIBUR Final Analysis
Memorandum,'' dated concurrently with this notice.
\7\ Commerce determines that Public Joint Stock Company TATNEF,T
LLC TATNEFT-AZS Center/LLC Togliattikauchuk/and Tolyattisintez are a
single entity. See Issues and Decision Memorandum; see also
Memorandum, ``TATNEFT Affiliation and Single Entity Memorandum,''
dated June 14, 2022.
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Estimated weighted-
Exporter/producer average dumping
margin (percent)
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Public Joint Stock Company SIBUR Holding/Joint Stock 17.47
Company Voronezhsintezkauchuk/SIBUR International
GmbH/SIBUR LLC \6\.................................
Public Joint Stock Company TATNEFT/LLC TATNEFT-AZS 8.15
Center/LLC Togliattikauchuk/Tolyattisintez \7\.....
All Others.......................................... 11.90
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Russia's Market Economy Status
For this final determination, Commerce has reconsidered Russia's
market economy status and has determined to treat Russia as a non-
market economy in forthcoming proceedings. Because this determination
applies to future proceedings, Commerce has relied on its market
economy methodology in determining the antidumping duty margins for
this final determination. A detailed explanation for this determination
along with discussion of all comments and factual information submitted
concerning this determination can be found in the decision memorandum,
``Reconsideration of Russia's Status as a Market Economy,'' issued
concurrently with this memorandum.
For new segments of antidumping duty proceedings with a POI or
period of review (POR) starting after November 1, 2022, Commerce will
use its non-market economy methodology to calculate the antidumping
duty rates. If the POI or POR falls entirely before November 1, 2022,
Commerce will use its market economy methodology to calculate the
rates. Finally, if the POI or POR straddles the time periods where
Commerce considered Russia to be a market and non-market economy
country, Commerce will determine the appropriate approach to follow on
a case-by-case basis.
Disclosure
We intend to disclose the calculations and analysis performed to
interested parties in this final determination within five days of
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
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend the liquidation of all appropriate entries of subject
merchandise, as described in Appendix I of this notice, entered, or
withdrawn from warehouse, for consumption on or after June 27, 2022,
the date of publication in the Federal Register of the affirmative
Preliminary Determination. These suspension of liquidation instructions
will remain in effect until further notice.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit for
estimated antidumping duties for such entries as follows: (1) the cash
deposit rate for the companies listed above will be equal to the
company-specific estimated weighted-average dumping margins determined
in this final determination; (2) if the exporter is not a company
identified above, but the producer is identified above, 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.
U.S. International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
U.S. International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because Commerce's final determination
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 or sales (or the likelihood of
sales) for importation of ESBR no later than 45 days after this 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 and suspension of liquidation will be lifted. 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 effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
Administrative Protective Order
This notice will serve as a final 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 return or destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act, and 19 CFR
351.210(c).
[[Page 69004]]
Dated: November 9, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The products covered by this investigation are cold-polymerized
emulsion styrene-butadiene rubber (ESB rubber). The scope of the
investigation includes, but is not limited to, ESB rubber in primary
forms, bales, granules, crumbs, pellets, powders, plates, sheets,
strip, etc. ESB rubber consists of non-pigmented rubbers and oil-
extended non-pigmented rubbers, both of which contain at least one
percent of organic acids from the emulsion polymerization process.
ESB rubber is produced and sold in accordance with a generally
accepted set of product specifications issued by the International
Institute of Synthetic Rubber Producers (IISRP). The scope of the
investigation covers grades of ESB rubber included in the IISRP 1500
and 1700 series of synthetic rubbers. The 1500 grades are light in
color and are often described as ``Clear'' or ``White Rubber.'' The
1700 grades are oil-extended and thus darker in color, and are often
called ``Brown Rubber.''
Specifically excluded from the scope of this investigation are
products which are manufactured by blending ESB rubber with other
polymers, high styrene resin master batch, carbon black master batch
(i.e., IISRP 1600 series and 1800 series) and latex (an intermediate
product).
The products subject to this investigation are currently
classifiable under subheadings 4002.19.0015 and 4002.19.0019 of the
Harmonized Tariff Schedule of the United States (HTSUS). ESB rubber
is described by Chemical Abstracts Services (CAS) Registry No. 9003-
55-8. This CAS number also refers to other types of styrene
butadiene rubber. Although the HTSUS subheadings and CAS registry
number are provided for convenience and customs purposes, the
written description of the scope of this investigation is
dispositive.
Appendix II--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Russia's Market Economy Status
VI. Changes Since the Preliminary Determination
VII. Use of Facts Available, and Adverse Inferences
VIII. Final Determinations of Affiliation and Single Entity
Treatment
IX. Discussion of the Issues
Comment 1: How to Treat SIBUR's Sales of Expired ESBR and Sales
Without Production Date Data Found at Verification
Comment 2: SIBUR's Inventory Carrying Costs and Total Sales
Quantity and Value (Q&V) Reconciliation
Comment 3: Whether to Apply Total Adverse Facts Available (AFA)
to SIBUR
Comment 4: How to Treat SIBUR's Affiliated Party Transactions
Comment 5: SIBUR's Cost Verification Adjustments
Comment 6: SIBUR's and TATNEFT's Payment Dates and Credit
Expenses
Comment 7: TATNEFT's U.S. Sales Destinations
Comment 8: TATNEFT's General and Administrative (G&A) and
Financial Expense--Packing Cost
Comment 9: TATNEFT and TTK's G&A Expense Rate--Other Income and
Expenses
X. Recommendation
[FR Doc. 2022-25050 Filed 11-16-22; 8:45 am]
BILLING CODE 3510-DS-P
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