Notice2024-09161
Certain Epoxy Resins From the People's Republic of China, India, the Republic of Korea, Taiwan, and Thailand: Initiation of Less-Than-Fair-Value Investigations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 29, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 89 Issue 83 (Monday, April 29, 2024)</title>
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[Federal Register Volume 89, Number 83 (Monday, April 29, 2024)]
[Notices]
[Pages 33324-33330]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09161]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-166, A-533-926, A-580-919, A-583-876, A-549-850]
Certain Epoxy Resins From the People's Republic of China, India,
the Republic of Korea, Taiwan, and Thailand: Initiation of Less-Than-
Fair-Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable April 23, 2024.
FOR FURTHER INFORMATION CONTACT: Jacob Waddell or Mark Flessner (the
People's Republic of China (China)) at (202) 482-1369 or (202) 482-
6312, respectively; Amaris Wade (India) at (202) 482-6334; Laura
Delgado (the Republic of Korea (Korea)) at (202) 482-1468; Benito
Ballesteros (Taiwan) at (202) 482-7425; and Rachel Jennings (Thailand)
at (202) 482-1110, AD/CVD Operations, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On April 3, 2024, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of certain
epoxy resins (epoxy resins) from China, India, Korea, Taiwan, and
Thailand filed in proper form on behalf of the U.S. Epoxy Resin
Producers Ad Hoc Coalition (the petitioner).\1\ These AD Petitions were
accompanied by countervailing duty (CVD) petitions concerning imports
of epoxy resins from China, India, Korea, and Taiwan.\2\
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\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties,'' dated April 3, 2024 (the
Petitions). The members of the U.S. Epoxy Resin Producers Ad Hoc
Coalition are Olin Corporation and Westlake Corporation.
\2\ Id.
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Between April 8 and 16, 2024, Commerce requested supplemental
information pertaining to certain aspects of the Petitions in
supplemental questionnaires.\3\ The petitioner responded to Commerce's
supplemental questionnaires between April 10 and 18, 2024.\4\
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\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
April 8, 2024 (General Issues Questionnaire), and ``Supplemental
Questions,'' dated April 8, 2024 (China Supplemental); see also
Country-Specific Supplemental Questionnaires: India Supplemental,
Korea Supplemental, Taiwan Supplemental, and Thailand Supplemental,
dated April 9, 2024; and Memorandum, ``Phone Call with Counsel to
Petitioner,'' dated April 16, 2024 (April 16 Memorandum).
\4\ See Petitioner's Letters, ``Petitioner's Response to Volume
II Supplemental Questionnaire (China Antidumping),'' dated April 10,
2024, and ``Petitioner's Response to Volume I Supplemental
Questionnaire,'' dated April 12, 2024 (First General Issues
Supplement); see also Country-Specific AD Supplemental Responses:
India AD Supplement, Korea AD Supplement, Taiwan AD Supplement, and
Thailand AD Supplement, dated April 15, 2024; Petitioner's Letter,
``Petitioner's Response to Second General Issues Supplemental
Questionnaire,'' dated April 18, 2024 (Second General Issues
Supplement); and Country-Specific AD Supplemental Responses: Second
China AD Supplement, Second India AD Supplement, Second Korea AD
Supplement, Second Taiwan AD Supplement, and Second Thailand AD
Supplement, dated April 18, 2024.
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of epoxy resins
from China, India, Korea, Taiwan, and Thailand are being, or are likely
to be, sold in the United States at less than fair value (LTFV) within
the meaning of section 731 of the Act, and that imports of such
products are materially injuring, or threatening material injury to,
the epoxy resins industry in the United States. Consistent with section
732(b)(1) of the Act, the Petitions were accompanied by information
reasonably available to the petitioner supporting its allegations.
Commerce finds that the petitioner filed the Petitions on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(F) of the Act.\5\ Commerce also finds that
the petitioner demonstrated sufficient industry support for the
initiation of the requested LTFV investigations.\6\
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\5\ The members of the petitioning coalition are interested
parties under section 771(9)(C) of the Act.
\6\ See section on ``Determination of Industry Support for the
Petitions,'' infra.
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Periods of Investigation
Because the Petitions were filed on April 3, 2024, pursuant to 19
CFR 351.204(b)(1), the period of investigation (POI) for the India,
Korea, Taiwan, and Thailand LTFV investigations is April 1, 2023,
through March 31, 2024. Because China is a non-market economy (NME)
country, pursuant to 19 CFR 351.204(b)(1), the POI for the China LTFV
investigation is October 1, 2023, through March 31, 2024.
Scope of the Investigations
The products covered by these investigations are epoxy resins from
China, India, Korea, Taiwan, and Thailand. For a full description of
the scope of these investigations, see the appendix to this notice.
Comments on the Scope of the Investigations
On April 8 and 16, 2024, Commerce requested information and
clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petitions is an accurate
reflection of the products for which the domestic industry is seeking
relief.\7\ On April 12 and 18, 2024, the petitioner provided
clarifications and revised the scope.\8\ The description of merchandise
covered by these investigations, as described in the appendix to this
notice, reflects these clarifications.
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\7\ See General Issues Questionnaire; see also April 16
Memorandum.
\8\ See First General Issues Supplement at 3-10 and Exhibit I-
S4; see also Second General Issues Supplement at 2-3 and Exhibit I-
SS1.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage
[[Page 33325]]
(i.e., scope).\9\ Commerce will consider all scope comments received
from interested parties and, if necessary, will consult with interested
parties prior to the issuance of the preliminary determinations. If
scope comments include factual information,\10\ all such factual
information should be limited to public information. To facilitate
preparation of its questionnaires, Commerce requests that scope
comments be submitted by 5:00 p.m. Eastern Time (ET) on May 13, 2024,
which is 20 calendar days from the signature date of this notice.\11\
Any rebuttal comments, which may include factual information, and
should also be limited to public information, must be filed by 5:00
p.m. ET on May 23, 2024, which is 10 calendar days from the initial
comment deadline.
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\9\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR
351.312.
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\11\ See 19 CFR 351.303(b)(1).
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Commerce requests that any factual information that parties
consider relevant to the scope of these investigations be submitted
during that period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party must contact Commerce and
request permission to submit the additional information. All scope
comments must be filed simultaneously on the records of the concurrent
LTFV and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\12\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
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\12\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance: Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at <a href="https://access.trade.gov/help.aspx">https://access.trade.gov/help.aspx</a> and a handbook
can be found at <a href="https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf">https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf</a>.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of epoxy resins to be
reported in response to Commerce's AD questionnaires. This information
will be used to identify the key physical characteristics of the
subject merchandise in order to report the relevant factors of
production (FOP) or cost of production (COP) accurately, as well as to
develop appropriate product comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) general product
characteristics; and (2) product comparison criteria. We note that it
is not always appropriate to use all product characteristics as product
comparison criteria. We base product comparison criteria on meaningful
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe epoxy resins, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, Commerce attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all product
characteristics comments must be filed by 5:00 p.m. ET on May 13, 2024,
which is 20 calendar days from the signature date of this notice.\13\
Any rebuttal comments must be filed by 5:00 p.m. ET on May 23, 2024,
which is 10 calendar days from the initial comment deadline. All
comments and submissions to Commerce must be filed electronically using
ACCESS, as explained above, on the record of each of the LTFV
investigations.
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\13\ See 19 CFR 351.303(b)(1).
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Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC apply the same statutory definition regarding the domestic like
product,\14\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\15\
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\14\ See section 771(10) of the Act.
\15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United
States, 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigations.\16\ Based on our analysis of the information
submitted on the record, we have determined that epoxy
[[Page 33326]]
resins, as defined in the scope, constitute a single domestic like
product, and we have analyzed industry support in terms of that
domestic like product.\17\
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\16\ See Petitions at Volume I at 17-21 and Exhibits I-18
through I-23; see also First General Issues Supplement at 12-15 and
Exhibit I-S6; and Second General Issues Supplement at 8.
\17\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Checklists, ``Antidumping Duty Investigation Initiation
Checklists: Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, Taiwan, and Thailand,'' dated
concurrently with, and hereby adopted by, this notice (Country-
Specific AD Initiation Checklists), at Attachment II, Analysis of
Industry Support for the Antidumping and Countervailing Duty
Petitions Covering Certain Epoxy Resins from the People's Republic
of China, India, the Republic of Korea, Taiwan, and Thailand
(Attachment II). These checklists are on file electronically via
ACCESS.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
members' production data of the domestic like product in 2023 and
compared this to total production of the domestic like product by the
U.S. epoxy resins industry.\18\ We have relied on the data provided by
the petitioner for purposes of measuring industry support.\19\
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\18\ See Petitions at Volume I (pages 6-7 and Exhibit I-5; see
also First General Issues Supplement at 10-12 and Exhibits I-S2 and
I-S5; and Second General Issues Supplement at 3-8 and Exhibits I-
SS2--I-SS5.
\19\ See Petitions at Volume I (pages 6-7 and Exhibit I-5); see
also First General Issues Supplement at 10-12 and Exhibits I-S2 and
I-S5; and Second General Issues Supplement at 3-8 and Exhibits I-SS2
through I-SS5. For further discussion, see Attachment II of the
Country-Specific AD Initiation Checklists.
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Our review of the data provided in the Petitions, the First General
Issues Supplement, the Second General Issues Supplement, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the Petitions.\20\ First, the
Petitions established support from domestic producers (or workers)
accounting for more than 50 percent of the total production of the
domestic like product and, as such, Commerce is not required to take
further action in order to evaluate industry support (e.g.,
polling).\21\ Second, the domestic producers (or workers) have met the
statutory criteria for industry support under section 732(c)(4)(A)(i)
of the Act because the domestic producers (or workers) who support the
Petitions account for at least 25 percent of the total production of
the domestic like product.\22\ Finally, the domestic producers (or
workers) have met the statutory criteria for industry support under
section 732(c)(4)(A)(ii) of the Act because the domestic producers (or
workers) who support the Petitions account for more than 50 percent of
the production of the domestic like product produced by that portion of
the industry expressing support for, or opposition to, the
Petitions.\23\ Accordingly, Commerce determines that the Petitions were
filed on behalf of the domestic industry within the meaning of section
732(b)(1) of the Act.\24\
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\20\ See Attachment II of the Country-Specific AD Initiation
Checklists.
\21\ Id.; see also section 732(c)(4)(D) of the Act.
\22\ See Attachment II of the Country-Specific AD Initiation
Checklists.
\23\ Id.
\24\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner argues that
subject imports from Korea, Taiwan, and Thailand exceed the
negligibility threshold provided for under section 771(24)(A) of the
Act.\25\
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\25\ See Petitions at Volume I (page 22 and Exhibit I-7).
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With regard to China, while the allegedly dumped imports do not
exceed the statutory requirements for negligibility,\26\ the petitioner
alleges and provides supporting evidence that: (1) a significant
portion of the imported epoxy resins entering from Canada into the U.S.
market are produced in China, and once the transshipment issue is
corrected, imports from China are not negligible; \27\ and (2) there is
the potential that imports from China will imminently exceed the
negligibility threshold and, therefore, are not negligible for purposes
of a threat determination.\28\ With regard to India, while the
allegedly dumped imports do not exceed the statutory requirements for
negligibility,\29\ the petitioner alleges and provides supporting
evidence that there is the potential that imports from India will
imminently exceed the negligibility threshold and, therefore, are not
negligible for purposes of a threat determination.\30\ The petitioner's
arguments regarding the potential for imports from India and China to
imminently exceed the negligibility threshold are consistent with the
statutory criteria for ``negligibility in threat analysis'' under
section 771(24)(A)(iv) of the Act, which provides that imports shall
not be treated as negligible if there is a potential that subject
imports from a country will imminently exceed the statutory
requirements for negligibility.
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\26\ Id. at 23-24 and Exhibits I-7, I-14, I-24, and I-25.
\27\ Id. at 23-25 and Exhibits I-7, I-14, I-24, and I-25.
\28\ Id. at 23 and Exhibit I-31; see also First General Issues
Supplement at 15-17 and I-S7.
\29\ See Petitions at Volume I (page 25-26 and Exhibit I-24).
\30\ Id. at 25-26.
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The petitioner contends that the industry's injured condition is
illustrated by the significant volume of subject imports; reduced
market share; underselling and price depression and/or suppression;
lost sales and revenues; and adverse impact on U.S. shipments,
production, capacity utilization, and financial performance.\31\ We
assessed the allegations and supporting evidence regarding material
injury, threat of material injury, causation, as well as negligibility,
and we have determined that these allegations are properly supported by
adequate evidence, and meet the statutory requirements for
initiation.\32\
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\31\ Id. at 22-46 and Exhibits I-4 through I-7, I-14, I-16, I-
22, I-24 through I-26, and I-28 through I-31; see also First General
Issues Supplement at 17 and Exhibit I-S8; and Second General Issues
Supplement at 8 and Exhibit I-SS6.
\32\ See Country-Specific AD Initiation Checklists at Attachment
III, Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Certain Epoxy Resins from the People's Republic of China,
India, the Republic of Korea, Taiwan, and Thailand.
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Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate LTFV investigations
of imports of epoxy resins from China, India, Korea, Taiwan, and
Thailand. The sources of data for the deductions and adjustments
relating to U.S. price and normal value (NV) are discussed in greater
detail in the Country-Specific AD Initiation Checklists.
U.S. Price
For China, Korea, Taiwan, and Thailand, the petitioner based export
price (EP) on pricing information for sales, or offers for sale, of
epoxy resins produced in and exported from each country.\33\ For
Thailand, the petitioner also based EP on transaction-specific average
unit values (AUVs) (i.e., month- and port-specific AUVs) derived from
official import statistics and tied to ship manifest data.\34\ For
India, the petitioner based EP on transaction-specific AUVs (i.e.,
month- and port-specific AUVs)
[[Page 33327]]
derived from official import statistics and tied to ship manifest
data.\35\ For each country, the petitioner made certain adjustments to
U.S. price to calculate a net ex-factory U.S. price, where
applicable.\36\
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\33\ See Country-Specific AD Initiation Checklists.
\34\ See Thailand AD Initiation Checklist.
\35\ See India AD Initiation Checklist.
\36\ See Country-Specific AD Initiation Checklists.
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Normal Value <SUP>37</SUP>
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\37\ In accordance with section 773(b)(2) of the Act, for the
India, Korea, Taiwan, and Thailand investigations, Commerce will
request information necessary to calculate the constructed value
(CV) and COP to determine whether there are reasonable grounds to
believe or suspect that sales of the foreign like product have been
made at prices that represent less than the COP of the product.
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For Thailand, the petitioner based NV on home market pricing
information it obtained for epoxy resins produced in and sold, or
offered for sale, in Thailand during the applicable time period.\38\
The petitioner provided information indicating that the prices for
epoxy resins sold or offered for sale in Thailand were below the COP.
Therefore, for Thailand, the petitioner based NV on constructed
value.\39\ For India, Korea, and Taiwan, the petitioner stated that it
was unable to obtain home market or third country pricing information
for epoxy resins to use as a basis for NV.\40\ Therefore, for India,
Korea, and Taiwan, the petitioner calculated NV based on CV.\41\ For
further discussion of CV for India, Korea, Taiwan, and Thailand, see
the section ``Normal Value Based on Constructed Value,'' below.
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\38\ See Thailand AD Initiation Checklist.
\39\ Id.
\40\ See Country-Specific AD Initiation Checklists.
\41\ Id.
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Commerce considers China to be an NME country.\42\ In accordance
with section 771(18)(C)(i) of the Act, any determination that a foreign
country is an NME country shall remain in effect until revoked by
Commerce. Therefore, we continue to treat China as an NME country for
purposes of the initiation of the China LTFV investigation.
Accordingly, we base NV on FOPs valued in a surrogate market economy
country in accordance with section 773(c) of the Act.
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\42\ See, e.g., Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Preliminary Affirmative
Determination of Sales at Less Than Fair Value and Preliminary
Affirmative Determination of Critical Circumstances, 88 FR 15372
(March 13, 2023), and accompanying Preliminary Decision Memorandum
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Final Affirmative Determination
of Sales at Less-Than-Fair Value and Final Affirmative Determination
of Critical Circumstances, 88 FR 34485 (May 30, 2023).
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The petitioner claims that Malaysia is an appropriate surrogate
country for China because it is a market economy that is at a level of
economic development comparable to that of China and is a significant
producer of comparable merchandise.\43\ The petitioner provided
publicly available information from Malaysia to value all FOPs except
labor.\44\ Consistent with Commerce's recent practice in cases
involving Malaysia as a surrogate country,\45\ to value labor, the
petitioner provided labor statistics from another surrogate country,
Romania.\46\ Based on the information provided by the petitioner, we
believe it is appropriate to use Malaysia as a surrogate country for
China to value all FOPs except labor and to value labor using labor
statistics from Romania for initiation purposes.
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\43\ See China AD Initiation Checklist.
\44\ Id.
\45\ See, e.g., Certain Collated Steel Staples from the People's
Republic of China: Final Results of Antidumping Duty Administrative
Review; and Final Determination of No Shipments; 2021-2022, 88 FR
85242 (December 7, 2023), and accompanying Issues and Decision
Memorandum (IDM) at Comment 2; and Light-Walled Rectangular Pipe and
Tube from the People's Republic of China: Final Results of
Antidumping Duty Administrative Review, 88 FR 15671 (March 14,
2023), and accompanying IDM at Comment 2.
\46\ See China AD Initiation Checklist.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
Because information regarding the volume of inputs consumed by
Chinese producers/exporters was not reasonably available, the
petitioner used product-specific consumption rates from a U.S. producer
of epoxy resins as a surrogate to value Chinese manufacturers' FOPs
(except labor).\47\ Additionally, the petitioner calculated factory
overhead, selling, general, and administrative (SG&A) expenses, and
profit based on the experience of a Malaysian producer of identical
merchandise.\48\
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\47\ Id.
\48\ Id. As noted above, the petitioner calculated labor using
information specific to Romania.
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Normal Value Based on Constructed Value
As noted above for Thailand, the petitioner provided information
indicating that the prices for epoxy resins sold or offered for sale in
Thailand were below the COP. Also as noted above, for India, Korea, and
Taiwan, the petitioner stated that it was unable to obtain home market
or third-country prices for epoxy resins to use as a basis for NV.
Therefore, for India, Korea, Taiwan, and Thailand, the petitioner
calculated NV based on CV.\49\
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\49\ See Country-Specific AD Initiation Checklists.
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Pursuant to section 773(e) of the Act, the petitioner calculated CV
as the sum of the cost of manufacturing, SG&A expenses, financial
expenses, and profit.\50\ For India, Korea, Taiwan, and Thailand, in
calculating the cost of manufacturing, the petitioner relied on the
production experience and input consumption rates of a U.S. producer of
epoxy resins, valued using publicly available information applicable to
the respective countries, where applicable.\51\ In calculating SG&A
expenses, financial expenses, and profit ratios, the petitioner relied
on the fiscal year 2022-2023 financial statements of producers of
identical merchandise domiciled in India, Korea, Taiwan, and Thailand,
respectively.\52\
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\50\ Id.
\51\ Id.
\52\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of epoxy resins from China, India, Korea, Taiwan,
and Thailand are being, or are likely to be, sold in the United States
at LTFV. Based on comparisons of EP to NV in accordance with sections
772 and 773 of the Act, the estimated dumping margins for epoxy resins
for each of the countries covered by this initiation are as follows:
(1) China--266.37 to 354.99 percent; (2) India--9.92 to 15.68 percent;
(3) Korea--35.29 to 57.38 percent; (4) Taiwan--91.15 to 139.29 percent;
and (5) Thailand--143.73 to 176.34 percent.\53\
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\53\ Id.
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Initiation of LTFV Investigations
Based upon the examination of the Petitions and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating LTFV investigations to determine
whether imports of epoxy resins from China, India, Korea, Taiwan, and
Thailand are being, or are likely to be, sold in the United States at
LTFV. In accordance with section 733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determinations no later than 140 days after the date of these
initiations.
[[Page 33328]]
Respondent Selection
Thailand
In the Petitions, the petitioner identified one company in Thailand
(i.e., Aditya Birla Chemicals) as a producer/exporter of epoxy resins
and provided independent, third-party information as support.\54\ We
currently know of no additional producers/exporters of epoxy resins
from Thailand.
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\54\ See Petitions at Volume I (page 17 and Exhibit I-17); see
also First General Issues Supplement at 2-3 and Exhibits I-S1 and I-
S3.
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Accordingly, Commerce intends to individually examine all known
producers/exporters in the investigations from Thailand (i.e., the
companies cited above). We invite interested parties to comment on this
issue. Such comments may include factual information within the meaning
of 19 CFR 351.102(b)(21). Parties wishing to comment must do so within
three business days of the publication of this notice in the Federal
Register. Comments must be filed electronically using ACCESS. An
electronically filed document must be received successfully in its
entirety via ACCESS by 5:00 p.m. ET on the specified deadline. Because
we intend to examine all known producers/exporters in Thailand, if no
comments are received or if comments received further support the
existence of this sole producer/exporter in Thailand, we do not intend
to conduct respondent selection and will proceed to issuing the initial
AD questionnaires to the companies identified. However, if comments are
received which create a need for a respondent selection process, we
intend to finalize our decisions regarding respondent selection within
20 days of publication of this notice.
India, Korea, and Taiwan
In the Petitions, the petitioner identified six companies in India,
four companies in Korea, and four companies in Taiwan as producers/
exporters of epoxy resins.\55\ Following standard practice in LTFV
investigations involving market economy countries, in the event
Commerce determines that the number of companies is large, and it
cannot individually examine each company based upon Commerce's
resources, where appropriate, Commerce intends to select mandatory
respondents based on U.S. Customs and Border Protection (CBP) data for
imports under the appropriate Harmonized Tariff Schedule of the United
States (HTSUS) subheading(s) listed in the ``Scope of the
Investigations,'' in the appendix.
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\55\ See Petitions at Volume I (page 17 and Exhibit I-17); see
also First General Issues Supplement at 2-3 and Exhibits I-S1 and I-
S3; and Second General Issues Supplement at 1.
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On April 18, 2024, Commerce released CBP data on imports of epoxy
resins from India, Korea, and Taiwan under administrative protective
order (APO) to all parties with access to information protected by APO
and indicated that interested parties wishing to comment on CBP data
and/or respondent selection must do so within three business days of
the publication date of the notice of initiation of these
investigations.\56\ Comments must be filed electronically using ACCESS.
An electronically filed document must be received successfully in its
entirety via ACCESS by 5:00 p.m. ET on the specified deadline. Commerce
will not accept rebuttal comments regarding the CBP data or respondent
selection.
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\56\ See Memoranda, ``Antidumping Duty Petition of Certain Epoxy
Resins from India: U.S. Customs and Border Protection Data
Release,'' dated April 19, 2024; ``Epoxy Resins from the Republic of
Korea: Release of U.S. Customs and Border Protection Entry Data,''
dated April 18, 2024; and ``Certain Epoxy Resins from Taiwan:
Release of U.S. Customs and Border Protection Entry Data,'' dated
April 18, 2024.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on Commerce's website at <a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
China
In the Petitions, the petitioner named 28 companies in China as
producers and/or exporters of epoxy resins.\57\ Our standard practice
for respondent selection in AD investigations involving NME countries
is to select respondents based on quantity and value (Q&V)
questionnaires in cases where Commerce has determined that the number
of companies is large, and it cannot individually examine each company
based upon its resources. Therefore, considering the number of
producers and/or exporters identified in the Petitions, Commerce will
solicit Q&V information that can serve as a basis for selecting
exporters for individual examination in the event that Commerce
determines that the number is large and decides to limit the number of
respondents individually examined pursuant to section 777A(c)(2) of the
Act. Because there are 28 Chinese producers and/or exporters identified
in the Petitions, Commerce has determined that it will issue Q&V
questionnaires to the largest producers and/or exporters that are
identified in the CBP data for which there is complete address
information on the record.
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\57\ See Petitions at Volume I (page 17 and Exhibit I-17); see
also First General Issues Supplement at 2 and Exhibit I-S1.
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Commerce will post the Q&V questionnaires along with filing
instructions on Commerce's website at <a href="https://www.trade.gov/ec-adcvd-case-announcements">https://www.trade.gov/ec-adcvd-case-announcements</a>. Producers/exporters of epoxy resins from China that
do not receive Q&V questionnaires may still submit a response to the
Q&V questionnaire and can obtain a copy of the Q&V questionnaire from
Commerce's website. Responses to the Q&V questionnaire must be
submitted by the relevant Chinese producers/exporters no later than
5:00 p.m. ET on May 7, 2024, which is two weeks from the signature date
of this notice. All Q&V questionnaire responses must be filed
electronically via ACCESS. An electronically filed document must be
received successfully, in its entirety, by ACCESS no later than 5:00
p.m. ET on the deadline noted above.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). As stated above, instructions
for filing such applications may be found on Commerce's website at
<a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
Separate Rates
In order to obtain separate rate status in an NME investigation,
exporters and producers must submit a separate rate application. The
specific requirements for submitting a separate rate application in an
NME investigation are outlined in detail in the application itself,
which is available on Commerce's website at <a href="https://access.trade.gov/Resources/nme/nme-sep-rate.html">https://access.trade.gov/Resources/nme/nme-sep-rate.html</a>. The separate rate application will be
due 30 days after publication of this initiation notice. Exporters and
producers must file a timely separate rate application if they want to
be considered for individual examination. Exporters and producers who
submit a separate rate application and have been selected as mandatory
respondents will be eligible for consideration for separate rate status
only if they respond to all parts of Commerce's AD questionnaire as
mandatory respondents. Commerce requires that companies from China
submit a response both to the Q&V questionnaire and to the separate
rate application by the respective deadlines to receive consideration
for separate rate status. Companies not filing a timely Q&V
questionnaire response will not receive separate rate consideration.
Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are
[[Page 33329]]
eligible for a separate rate in an NME investigation. The Separate
Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that {Commerce{time}
will now assign in its NME investigation will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the {weighted average{time} of the individually
calculated rates. This practice is referred to as the application of
``combination rates'' because such rates apply to specific
combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise
both exported by the firm in question and produced by a firm that
supplied the exporter during the period of investigation.\58\
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\58\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigation involving NME Countries,'' (April
5, 2005) at 6 (emphasis added), available on Commerce's website at
<a href="https://access.trade.gov/Resources/policy/bull05-1.pdf">https://access.trade.gov/Resources/policy/bull05-1.pdf</a>.
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Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the governments of China, India, Korea, Taiwan, and
Thailand via ACCESS. To the extent practicable, we will attempt to
provide a copy of the public version of the Petitions to each exporter
named in the Petitions, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of our initiation, as required by
section 732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of epoxy resins from China, India, Korea,
Taiwan, and/or Thailand are materially injuring, or threatening
material injury to, a U.S. industry.\59\ A negative ITC determination
for any country will result in the investigation being terminated with
respect to that country.\60\ Otherwise, these LTFV investigations will
proceed according to statutory and regulatory time limits.
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\59\ See section 733(a) of the Act.
\60\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \61\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\62\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in these investigations.
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\61\ See 19 CFR 351.301(b).
\62\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation
Section 773(e) of the Act addresses the concept of particular
market situation (PMS) for purposes of CV, stating that ``if a
particular market situation exists such that the cost of materials and
fabrication or other processing of any kind does not accurately reflect
the cost of production in the ordinary course of trade, the
administering authority may use another calculation methodology under
this subtitle or any other calculation methodology.'' When an
interested party submits a PMS allegation pursuant to section 773(e) of
the Act (i.e., a cost-based PMS allegation), Commerce will respond to
such a submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce
finds that a cost-based PMS exists under section 773(e) of the Act,
then it will modify its dumping calculations appropriately.
Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v),
sets a deadline for the submission of cost-based PMS allegations and
supporting factual information. However, in order to administer section
773(e) of the Act, Commerce must receive PMS allegations and supporting
factual information with enough time to consider the submission. Thus,
should an interested party wish to submit a cost-based PMS allegation
and supporting new factual information pursuant to section 773(e) of
the Act, it must do so no later than 20 days after submission of a
respondent's initial section D questionnaire response.
We note that a PMS allegation filed pursuant to sections
773(a)(1)(B)(ii)(III) or 773(a)(1)(C)(iii) of the Act (i.e., a sales-
based PMS allegation) must be filed within 10 days of submission of a
respondent's initial section B questionnaire response, in accordance
with 19 CFR 351.301(c)(2)(i) and 19 CFR 351.404(c)(2).
Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301, or as otherwise specified by
Commerce.\63\ For submissions that are due from multiple parties
simultaneously, an extension request will be considered untimely if it
is filed after 10:00 a.m. ET on the due date. Under certain
circumstances, Commerce may elect to specify a different time limit by
which extension requests will be considered untimely for submissions
which are due from multiple parties simultaneously. In such a case, we
will inform parties in a letter or memorandum of the deadline
(including a specified time) by which extension requests must be filed
to be considered timely. An extension request must be made in a
separate, standalone submission; under limited circumstances we will
grant untimely filed requests for the extension of time limits, where
we determine, based on 19 CFR 351.302, that extraordinary circumstances
exist. Parties should review Commerce's regulations concerning the
extension of time limits and the Time Limits Final Rule prior to
submitting factual information in these investigations.\64\
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\63\ See 19 CFR 351.301; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final
Rule), available at <a href="https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm</a>.
\64\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy
[[Page 33330]]
and completeness of that information.\65\ Parties must use the
certification formats provided in 19 CFR 351.303(g).\66\ Commerce
intends to reject factual submissions if the submitting party does not
comply with the applicable certification requirements.
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\65\ See section 782(b) of the Act.
\66\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional
information regarding the Final Rule is available at <a href="https://access.trade.gov/Resources/filing/index.html">https://access.trade.gov/Resources/filing/index.html</a>.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in these investigations should ensure that they meet the requirements
of 19 CFR 351.103(d) (e.g., by filing the required letter of
appearance). Note that Commerce has amended certain of its requirements
pertaining to the service of documents in 19 CFR 351.303(f).\67\
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\67\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
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This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: April 23, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix--Scope of the Investigations
The merchandise subject to these investigations are fully or
partially uncured epoxy resins, also known as epoxide resins,
polyepoxides, oxirane resins, ethoxyline resins, diglycidyl ether of
bisphenol, (chloromethyl)oxirane, or aromatic diglycidyl, which are
polymers or prepolymers containing epoxy groups (i.e., three-
membered ring structures comprised of two carbon atoms and one
oxygen atom). Epoxy resins range in physical form from low viscosity
liquids to solids. All epoxy resins are covered by the scope of
these investigations irrespective of physical form, viscosity,
grade, purity, molecular weight, or molecular structure, and
packaging.
Epoxy resins may contain modifiers or additives, such as
hardeners, curatives, colorants, pigments, diluents, solvents,
thickeners, fillers, plasticizers, softeners, flame retardants,
toughening agents, catalysts, Bisphenol F, and ultraviolet light
inhibitors, so long as the modifier or additive has not chemically
reacted so as to cure the epoxy resin or convert it into a different
product no longer containing epoxy groups. Such epoxy resins with
modifiers or additives are included in the scope where the epoxy
resin component comprises no less than 30 percent of the total
weight of the product. The scope also includes blends of epoxy
resins with different types of epoxy resins, with or without the
inclusion of modifiers and additives, so long as the combined epoxy
resin component comprises at least 30 percent of the total weight of
the blend.
Epoxy resins that enter as part of a system or kit with
separately packaged co-reactants, such as hardeners or curing
agents, are within the scope. The scope does not include any
separately packaged co-reactants that would not fall within the
scope if entered on their own.
The scope includes merchandise matching the above description
that has been processed in a third country, including by
commingling, diluting, introducing, or removing modifiers or
additives, or performing any other processing that would not
otherwise remove the merchandise from the scope of the
investigations if performed in the subject country.
The scope also includes epoxy resin that is commingled or
blended with epoxy resin from sources not subject to these
investigations. Only the subject component of such commingled
products is covered by the scope of these investigations.
Excluded from the scope are phenoxy resins, which are polymers
with a weight greater than 11,000 Daltons, a Melt Flow Index (MFI)
at 200 [deg]C (392 [deg]F) no less than 4 grams and no greater than
70 grams per 10 min, Glass-Transition Temperatures (Tg) no less than
80 [deg]C (176 [deg]F) and no greater than 100 [deg]C (212 [deg]F),
and which contain no epoxy groups other than at the terminal ends of
the molecule.
Excluded from the scope are certain paint and coating products,
which are blends, mixtures, or other formulations of epoxy resin,
curing agent, and pigment, in any form, packaged in one or more
containers, wherein (1) the pigment represents a minimum of 10
percent of the total weight of the product, (2) the epoxy resin
represents a maximum of 80 percent of the total weight of the
product, and (3) the curing agent represents 5 to 40 percent of the
total weight of the product.
Excluded from the scope are preimpregnated fabrics or fibers,
often referred to as ``pre-pregs,'' which are composite materials
consisting of fabrics or fibers (typically carbon or glass)
impregnated with epoxy resin.
This merchandise is currently classifiable under Harmonized
Tariff Schedule of the United States (HTSUS) subheading
3907.30.0000. Subject merchandise may also be entered under
subheadings 3907.29.0000, 3824.99.9397, 3214.10.0020, 2910.90.9100,
2910.90.9000, 2910.90.2000, and 1518.00.4000. The HTSUS subheadings
are provided for convenience and customs purposes only; the written
description of the scope is dispositive.
[FR Doc. 2024-09161 Filed 4-26-24; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on April 29, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.