Notice2024-20886
Certain Epoxy Resins From the Republic of Korea: Preliminary Negative Countervailing Duty Determination, Preliminary Negative Critical Circumstances Determination and Alignment of Final Determination With Final Antidumping Duty Determination
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
September 13, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are not being provided to producers and exporters of Certain Epoxy Resins (epoxy resins) from the Republic of Korea (Korea). The period of investigation is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 178 (Friday, September 13, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Notices]
[Pages 74912-74915]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-20886]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-920]
Certain Epoxy Resins From the Republic of Korea: Preliminary
Negative Countervailing Duty Determination, Preliminary Negative
Critical Circumstances Determination and Alignment of Final
Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are not being provided to
producers and exporters of Certain Epoxy Resins (epoxy resins) from the
Republic of Korea (Korea). The period of investigation is January 1,
2023, through December 31, 2023. Interested parties are invited to
comment on this preliminary determination.
DATES: Applicable September 13, 2024.
FOR FURTHER INFORMATION CONTACT: Thomas Martin or Benjamin Blythe, AD/
CVD Operations, Office IV, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-3936 or (202)
482-3457, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this countervailing duty (CVD)
investigation on April 29, 2024.\1\ On May 28, 2024, Commerce postponed
the preliminary determination until September 3, 2024.\2\ On July 22,
2024, Commerce tolled certain deadlines in this administrative
[[Page 74913]]
proceeding by seven days.\3\ The deadline for the preliminary
determination is now September 9, 2024.
---------------------------------------------------------------------------
\1\ See Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, and Taiwan: Initiation of
Countervailing Duty Investigations, 89 FR 33319 (April 29, 2024)
(Initiation Notice).
\2\ See Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, and Taiwan: Postponement of
Preliminary Determinations in the Countervailing Duty
Investigations, 89 FR 46016 (May 28, 2024).
\3\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
---------------------------------------------------------------------------
For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\4\ A list of topics discussed 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>.
---------------------------------------------------------------------------
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Negative Determination in the Countervailing Duty Investigation of
Certain Epoxy Resins from the Republic of Korea,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are epoxy resins. For a
complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e. , scope).\6\ We received
several comments concerning the scope of this investigation, as well as
in the companion less-than-fair-value (LTFV) and other CVD
investigations of epoxy resins, as it appeared in the Initiation
Notice. We are currently evaluating the scope comments filed by the
interested parties. We intend to issue our preliminary decision
regarding the scope of the LTFV and CVD investigations in the
preliminary determinations of the companion LTFV investigations, the
deadline for which is November 6, 2024.\7\ We will incorporate the
scope decisions from the LTFV investigations into the scope of the
final CVD determination for this investigation after considering any
relevant comments submitted in scope case and rebuttal briefs.\8\
---------------------------------------------------------------------------
\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice.
\7\ See Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, Taiwan, and Thailand:
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 89 FR 65583 (August 12, 2024) (LTFV Prelim
Postponement).
\8\ The deadline for interested parties to submit scope case and
rebuttal briefs will be established in the preliminary scope
decision memorandum.
---------------------------------------------------------------------------
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e. , a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\9\
---------------------------------------------------------------------------
\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------
Preliminary Negative Determination of Critical Circumstances
In accordance with section 703(e)(1) of the Act, Commerce
preliminarily determines that critical circumstances do not exist with
respect to imports of epoxy resins from Korea for Kukdo Chemical Co.,
Ltd. (Kukdo), Kumho P&B Chemicals Inc. (Kumho), all other exporters or
producers not individually examined. For a full description of the
methodology and results of Commerce's analysis, see the Preliminary
Decision Memorandum.
Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination with the final determination in
the companion LTFV investigation of epoxy resins from Korea based on a
request made by the petitioner.\10\ Consequently, the final CVD
determination will be issued on the same date as the final LTFV
determination, which is currently scheduled to be issued no later than
January 21, 2025, unless postponed.\11\
---------------------------------------------------------------------------
\10\ See Petitioner's Letter, ``Petitioner's Request to Align
Countervailing Duty Investigation Final Determination with
Antidumping Duty Investigation Final Determination,'' dated August
15, 2024. The petitioner is the U.S. Epoxy Resin Producers Ad Hoc
Coalition.
\11\ See LTFV Prelim Postponement.
---------------------------------------------------------------------------
Preliminary Determination
For this preliminary determination, Commerce calculated de minimis
estimated countervailable subsidies for all individually examined
producers/exporters of the subject merchandise. Consistent with section
703(b)(4)(A) of the Act, Commerce has disregarded the de minimis rates.
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
------------------------------------------------------------------------
Subsidy
rate
Company (percent ad
valorem)
------------------------------------------------------------------------
Kukdo Chemical Co., Ltd.\12\............................... * 0.74
Kumho P&B Chemicals Inc.\13\............................... * 0.89
------------------------------------------------------------------------
* De minimis.
Consistent with section 703(d) of the Act, Commerce has not
calculated an estimated weighted-average subsidy rate for all other
producers/exporters because it has not made an affirmative preliminary
determination
---------------------------------------------------------------------------
\12\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Kukdo Chemical Co., Ltd.: Kukdo Finechem Co., Ltd.
\13\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Kumho P&B Chemicals Inc.: Kumho Petrochemical Co. Ltd. and Chemoil
Corporation.
---------------------------------------------------------------------------
Suspension of Liquidation
Because Commerce preliminarily determines that no countervailable
subsidies are being provided to the production or exportation of
subject merchandise, Commerce will not direct U.S. Customs and Border
Protection to suspend liquidation of any such entries.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
All interested parties will have the opportunity to submit scope
case and
[[Page 74914]]
rebuttal briefs on the preliminary decision regarding the scope of the
LTFV and CVD investigations. The deadlines to submit scope case and
rebuttal briefs will be provided in the preliminary scope decision
memorandum. For all scope case and rebuttal briefs, parties must file
identical documents simultaneously on the records of the ongoing LTFV
and CVD epoxy resins investigations. No new factual information or
business proprietary information may be included in either scope case
or rebuttal briefs.
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in the
case briefs, may be filed not later than five days after the date for
filing case briefs.\14\ Interested parties who submit case briefs or
rebuttal briefs in this proceeding must submit: (1) a table of contents
listing each issue; and (2) a table of authorities.\15\
---------------------------------------------------------------------------
\14\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\15\ See 19 351.309(c)(2) and (d)(2).
---------------------------------------------------------------------------
As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\16\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\17\
---------------------------------------------------------------------------
\16\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\17\ See APO and Service Final Rule.
---------------------------------------------------------------------------
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its 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 75 days after the final determination whether imports of epoxy
resins from Korea are materially injuring, or threaten material injury
to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: September 9, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this investigation is 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 investigation
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 this
investigation. Only the subject component of such commingled
products is covered by the scope of this investigation.
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.
[[Page 74915]]
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Preliminary Negative Determination of Critical Circumstances
V. Subsidies Valuation
VI. Diversification of Korea's Economy
VII. Analysis of Programs
VIII. Recommendation
[FR Doc. 2024-20886 Filed 9-12-24; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on September 13, 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.