Notice2024-25525
Hexamethylenetetramine From the People's Republic of China, Germany, India, and Saudi Arabia: 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
November 4, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 89 Issue 213 (Monday, November 4, 2024)</title>
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[Federal Register Volume 89, Number 213 (Monday, November 4, 2024)]
[Notices]
[Pages 87545-87550]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-25525]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-180, A-428-854, A-533-932, A-517-807]
Hexamethylenetetramine From the People's Republic of China,
Germany, India, and Saudi Arabia: Initiation of Less-Than-Fair-Value
Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable October 21, 2024.
FOR FURTHER INFORMATION CONTACT: Thomas Cloyd at 202-482-1246 (the
People's Republic of China (China)), Ajay Menon at 202-482-0208
(Germany), Dakota Potts at 202-482-0223 (India), and Andrew Hat at 202-
482-1058 (Saudi Arabia), 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 September 30, 2024, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of
hexamethylenetetramine (hexamine) from China, Germany, India, and Saudi
Arabia filed in proper form on behalf of Bakelite LLC (the
petitioner).\1\ The AD Petitions were accompanied by countervailing
duty (CVD) petitions concerning imports of hexamine from China and
India.\2\
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\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties,'' dated September 30, 2024
(Petitions).
\2\ Id.
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Between October 2 and 11, 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 October 7 and 18, 2024.\4\
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\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
October 2, 2024 (First General Issues Questionnaire); see also
Country-Specific AD Supplemental Questionnaires: China Supplemental,
Germany Supplemental, India Supplemental, and Saudi Arabia
Supplemental, dated October 3, 2024; Commerce's Letter, ``Second
Supplemental Questions,'' dated October 11, 2024 (Second General
Issues Questionnaire); Country-Specific Second AD Supplemental
Questionnaires: China Second Supplemental, India Second
Supplemental, and Saudi Arabia Second Supplemental; and Memorandum,
``Phone Call,'' dated October 15, 2024 (October 15, 2024,
Memorandum).
\4\ See Petitioner's Letters, ``Response to Supplemental
Questions,'' dated October 7, 2024 (First General Issues
Supplement); see also Country-Specific AD Supplemental Responses:
China AD Supplement, Germany AD Supplement, India AD Supplement, and
Saudi Arabia AD Supplement, dated October 8, 2024; Petitioners'
Letters, ``Petitioner's Response to Second Supplemental Questions,''
dated October 16, 2024 (Second General Issues Supplement); Country-
Specific Second AD Supplemental Responses: Second China AD
Supplement, Second India AD Supplement, and Second Saudi Arabia AD
Supplement, dated October 16, 2024; and Petitioner's Letter,
``Erratum to Response to Supplemental Questions,'' dated October 18,
2024 (Second General Issues Errata).
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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 hexamine from
China, Germany, India, and Saudi Arabia 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
hexamine 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)(C) of the Act. Commerce also finds that
the petitioner demonstrated sufficient industry support for the
initiation of the requested LTFV investigations.\5\
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\5\ See section on ``Determination of Industry Support for the
Petitions,'' infra.
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Periods of Investigation
Because the Petitions were filed on September 30, 2024, pursuant to
19 CFR 351.204(b)(1), the period of investigation (POI) for the
Germany, India, and Saudi Arabia LTFV investigations is July 1, 2023,
through June 30, 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 January 1, 2024, through June 30, 2024.
Scope of the Investigations
The product covered by these investigations is hexamine from China,
Germany, India, and Saudi Arabia. For a full description of the scope
of these investigations, see the appendix to this notice.
Comments on the Scope of the Investigations
On October 2 and 11, 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.\6\ On October 7 and 18, 2024, the petitioner provided
clarifications and revised the scope.\7\ The description of merchandise
covered by these investigations, as described in the appendix to this
notice, reflects these clarifications.
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\6\ See First General Issues Questionnaire; see also Second
General Issues Questionnaire; and October 15, 2024, Memorandum.
\7\ See First General Issues Supplement at 3-5; see also Second
General Issues Supplement at 1-3 and Second General Issues Errata.
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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 (i.e., scope).\8\ 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
[[Page 87546]]
include factual information,\9\ 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 November 12, 2024, which is the next
business day after 20 calendar days from the signature date of this
notice.\10\ 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 November 22, 2024, which is 10 calendar days
from the initial comment deadline.
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\8\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR
351.312.
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\10\ See 19 CFR 351.303(b)(1). The deadline for scope comments
falls on November 10, 2024, which is a Sunday. Monday, November 11,
2024 is a federal holiday. In accordance with 19 CFR 351.303(b)(1),
Commerce will accept comments filed by 5:00 p.m. ET on November 12,
2024 (``For both electronically filed and manually filed documents,
if the applicable due date falls on a non-business day, the
Secretary will accept documents that are filed on the next business
day.'').
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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.\11\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
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\11\ 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 hexamine 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 hexamine, 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 November 12,
2024, which is the next business day after 20 calendar days from the
signature date of this notice.\12\ Any rebuttal comments must be filed
by 5:00 p.m. ET on November 22, 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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\12\ See 19 CFR 351.303(b)(1). The deadline for comments on
product characteristics falls on November 10, 2024, which is a
Sunday. Monday, November 11, 2024 is a federal holiday. In
accordance with 19 CFR 351.303(b)(1), Commerce will accept comments
filed by 5:00 p.m. ET on November 12, 2024 (``For both
electronically filed and manually filed documents, if the applicable
due date falls on a non-business day, the Secretary will accept
documents that are filed on the next business day.'').
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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,\13\ 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.\14\
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\13\ See section 771(10) of the Act.
\14\ 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
[[Page 87547]]
distinct from the scope of the investigations.\15\ Based on our
analysis of the information submitted on the record, we have determined
that hexamine, as defined in the scope, constitutes a single domestic
like product, and we have analyzed industry support in terms of that
domestic like product.\16\
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\15\ 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: Hexamethylenetetramine from the People's Republic of
China, Germany, India, and Saudi Arabia,'' 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
Hexamethylenetetramine from the People's Republic of China, Germany,
India, and Saudi Arabia (Attachment II). These checklists are on
file electronically via ACCESS.
\16\ See Attachment II of the Country-Specific AD Initiation
Checklists.
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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
own production of the domestic like product in 2023.\17\ The petitioner
stated that there are no other known producers of hexamine in the
United States; therefore, the Petitions are supported by 100 percent of
the U.S. industry.\18\ We relied on data provided by the petitioner for
purposes of measuring industry support.\19\
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\17\ Id.
\18\ Id.
\19\ 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, 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\ Id.
\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 alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\25\
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\25\ For further information regarding negligibility and the
injury allegation, 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 Hexamethylenetetramine from the People's Republic
of China, Germany, India, and Saudi Arabia (Attachment III).
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The petitioner contends that the industry's injured condition is
illustrated by the significant volume and market share of subject
imports; underselling and price depression and/or suppression; lost
sales and revenues; and adverse impact on the domestic industry's
production, capacity utilization, U.S. shipments, employment variables,
capital expenditures, and sales and profitability.\26\ We assessed the
allegations and supporting evidence regarding material injury, threat
of material injury, causation, cumulation, as well as negligibility,
and we have determined that these allegations are properly supported by
adequate evidence and meet the statutory requirements for
initiation.\27\
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\26\ Id.
\27\ Id.
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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 hexamine from China, Germany, India, and Saudi Arabia.
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, Germany, and Saudi Arabia, the petitioner based export
price (EP) on the POI average unit values (AUVs) derived from official
U.S. import statistics for imports of hexamine produced in and exported
from each country.\28\ For India, the petitioner based EP on a
transaction-specific AUV (i.e., month- and port-specific AUV) derived
from official import statistics and tied to ship manifest data.\29\ For
each country, the petitioner made certain adjustments to U.S. price to
calculate a net ex-factory U.S. price, where applicable.\30\
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\28\ See Country-Specific AD Initiation Checklists.
\29\ See India AD Initiation Checklist.
\30\ See Country-Specific AD Initiation Checklists.
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Normal Value <SUP>31</SUP>
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\31\ In accordance with section 773(b)(2) of the Act, for the
India 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 Germany and India, the petitioner based NV on home market
pricing information obtained for hexamine produced in and sold, or
offered for sale, in the respective countries during the applicable
time period.\32\ For India, the petitioner provided information
indicating that the prices for hexamine sold or offered for sale in
India were below the COP. Therefore, for India, the petitioner based NV
on constructed value.\33\ For Saudi Arabia, the petitioner stated that
it was unable to obtain home market or third country pricing
information for hexamine to use as a basis for NV.\34\ Therefore, for
Saudi Arabia, the petitioner calculated NV based on CV.\35\ For further
discussion of CV for India and Saudi Arabia, see the section ``Normal
Value Based on Constructed Value,'' below.
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\32\ See Country-Specific AD Initiation Checklists.
\33\ Id.
\34\ See Saudi Arabia AD Initiation Checklist.
\35\ Id.
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Commerce considers China to be an NME country.\36\ In accordance
with
[[Page 87548]]
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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\36\ 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 the Republic of T[uuml]rkiye
(T[uuml]rkiye) 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.\37\ The petitioner provided publicly available information
from T[uuml]rkiye to value all FOPs.\38\ Based on the information
provided by the petitioner, we believe it is appropriate to use
T[uuml]rkiye as a surrogate country for China to value all FOPs for
initiation purposes.
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\37\ See China AD Initiation Checklist.
\38\ Id.
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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 its own production experience and product-specific
consumption rates as a surrogate to value Chinese manufacturers'
FOPs.\39\ Additionally, the petitioner calculated factory overhead,
selling, general, and administrative (SG&A) expenses, and profit based
on the experience of a Turkish producer of comparable merchandise.\40\
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\39\ Id.
\40\ Id.
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Normal Value Based on Constructed Value
As noted above for India, the petitioner provided information
indicating that the prices for hexamine sold or offered for sale in
India were below the COP. Also as noted above, for Saudi Arabia, the
petitioner stated that it was unable to obtain home market or third-
country prices for hexamine to use as a basis for NV. Therefore, for
India and Saudi Arabia, the petitioner calculated NV based on CV.\41\
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\41\ 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.\42\ For India and Saudi Arabia, in calculating
the cost of manufacturing, the petitioner relied on its own production
experience and product-specific consumption rates, valued using
publicly available information applicable to the respective countries,
where applicable.\43\ For India, in calculating SG&A expenses,
financial expenses, and profit ratios, the petitioner relied on the
fiscal year 2023 financial statements of a producer of identical
merchandise domiciled in India.\44\ For Saudi Arabia, in calculating
SG&A expenses, financial expenses, and profit ratios, the petitioner
relied on the fiscal year 2022 financial statements of a producer of
identical merchandise domiciled in Saudi Arabia.\45\
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\42\ Id.
\43\ Id.
\44\ Id.
\45\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of hexamine from China, Germany, India, and Saudi
Arabia 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 hexamine for each
of the countries covered by this initiation are as follows: (1) China--
405.19 percent; (2) Germany--104.72 to 111.24 percent; (3) India--
105.76 percent; (4) Saudi Arabia--292.32 percent.\46\
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\46\ 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 hexamine from China, Germany, India, and Saudi
Arabia 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.
Respondent Selection
Germany and Saudi Arabia
In the Petitions, the petitioner identified two companies in
Germany (Prefere Paraform GmbH & Co Kg and Fiberpipe GFK
Vertriebsgesellschaft), and two companies in Saudi Arabia (Methanol
Chemicals Company and The Factory of Methanol Chemicals) as producers/
exporters of hexamine.\47\ We currently know of no additional
producers/exporters of hexamine from Germany and Saudi Arabia.
Accordingly, Commerce intends to individually examine all known
producers/exporters in the investigations from these countries (i.e.,
the companies cited above).
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\47\ See Petitions at Volume I (pages 10-11 and Exhibit I-8);
see also First General Issues Supplement at 1-3 and Exhibit I-S1.
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India
In the Petitions, the petitioner identified four companies in
India.\48\ In the event that 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 quantity and value (Q&V)
questionnaires issued to potential respondents. Following standard
practice in LTFV investigations involving market economy countries,
Commerce would normally select respondents based on U.S. Customs and
Border Protection entry 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. However,
for these investigations, the main HTSUS subheading under which the
subject merchandise would enter (2933.69.5000) is not limited to
subject merchandise and therefore may also cover non-subject
merchandise. Therefore, we cannot rely on CBP entry data in selecting
respondents. Accordingly, for India, Commerce will send Q&V
questionnaires to each producer and/or exporter for which there is
complete address information on the record.
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\48\ See Petitions at Volume I (pages 10-11 and Exhibit I-8);
see also First General Issues Supplement at 1-3 and Exhibit I-S1.
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Commerce will post the Q&V questionnaire 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 hexamine from India that do
not receive Q&V questionnaires may still submit a response to the Q&V
questionnaire and
[[Page 87549]]
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
Indian producers/exporters no later than 5:00 p.m. ET on November 4,
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). 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 identified 10 companies in China
as producers and/or exporters of hexamine.\49\ Our standard practice
for respondent selection in AD investigations involving NME countries
is to select respondents based on 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 10 Chinese
producers and/or exporters identified in the Petitions, Commerce has
determined that it will issue Q&V questionnaires to each potential
respondent for which there is complete address information on the
record.
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\49\ See Petitions at Volume I (pages 10-11 and Exhibit I-8);
see also First General Issues Supplement at 1.
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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 hexamine 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 November 4, 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 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.\50\
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\50\ 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, Germany, India, and Saudi Arabia
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 hexamine from China, Germany, India, and/or
Saudi Arabia are materially injuring, or threatening material injury
to, a U.S. industry.\51\ A negative ITC determination for any country
will result in the investigation being terminated with respect to that
country.\52\ Otherwise, these LTFV investigations will proceed
according to statutory and regulatory time limits.
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\51\ See section 733(a) of the Act.
\52\ 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
[[Page 87550]]
information is being submitted \53\ 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.\54\ 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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\53\ See 19 CFR 351.301(b).
\54\ 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), the submission must be
filed in accordance with the requirements of 19 CFR 351.416(b), and
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.\55\ 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.\56\
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\55\ 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>.
\56\ 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 and completeness of that information.\57\
Parties must use the certification formats provided in 19 CFR
351.303(g).\58\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\57\ See section 782(b) of the Act.
\58\ 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).\59\
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\59\ 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: October 21, 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 I
Scope of the Investigations
The scope of the investigations covers hexamine in granular
form, with a particle size of 5 millimeters or less, whether
stabilized or unstabilized, whether or not blended, mixed,
pulverized, or grounded with other products, containing 50 percent
or more hexamine by weight.
Hexamine is the common name for hexamethylene tetramine
(Chemical Abstract Service #100-97-0), and is also referred to as
1,3,5,7-tetraazaadamantanemethenamine; HMT; HMTA; 1,3,5,7-
tetraazatricyclo {3.3.1.13,7{time} decane; 1,3,5,7-tetraaza
adamantane; hexamethylenamine. Hexamine has the chemical formula
C<INF>6</INF>H<INF>12</INF>N<INF>4</INF>.
Granular hexamine that has been blended with other product(s) is
included in this scope when the resulting mix contains 50 percent or
more of hexamine by weight, regardless of whether it is blended with
inert additives, co-reactants, or any additives that undergo self-
condensation.
Subject merchandise includes merchandise matching the above
description that has been processed in a third country, including by
commingling, diluting, adding or removing 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.
Merchandise covered by the scope of the investigations can be
classified in the Harmonized Tariff Schedule (HTSUS) of the United
States under the subheading 2933.69.5000. The HTSUS subheading and
Chemical Abstracts Service registry number are provided for
convenience and customs purposes only; however, the written
description of the scope is dispositive.
[FR Doc. 2024-25525 Filed 11-1-24; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on November 4, 2024.
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