Notice2024-26255
Certain Epoxy Resins From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Preliminary Affirmative Determination of Critical Circumstances
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 13, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that certain epoxy resins (epoxy resins) from the People's Republic of China (China) are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is October 1, 2023, through March 31, 2024. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 219 (Wednesday, November 13, 2024)</title>
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[Federal Register Volume 89, Number 219 (Wednesday, November 13, 2024)]
[Notices]
[Pages 89594-89597]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-26255]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-166]
Certain Epoxy Resins From the People's Republic of China:
Preliminary Affirmative Determination of Sales at Less Than Fair Value
and Preliminary Affirmative Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that certain epoxy resins (epoxy resins) from the People's
Republic of China (China) are being, or are likely to be, sold in the
United States at less than fair value (LTFV). The period of
investigation (POI) is October 1, 2023, through March 31, 2024.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable November 13, 2024.
FOR FURTHER INFORMATION CONTACT: Mark Flessner, AD/CVD Operations,
Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: 202-482-6312.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this LTFV investigation on April
23, 2024.\1\
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\1\ See 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, 89 FR 33324
(April 29, 2024) (Initiation Notice).
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On July 22, 2024, Commerce tolled certain deadlines in this
administrative proceeding by seven days.\2\ On August 12, 2024,
Commerce postponed the preliminary determination of this investigation
until November 6, 2024.\3\
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\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\3\ See Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, Taiwan, and Thailand:
Postponement of Preliminary Determinations of Antidumping Duty
Investigations, 89 FR 65583 (August 12, 2024).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\4\ A list of topics included 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>.
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\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Less-Than-Fair-Value Investigation
of Certain Epoxy Resins from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are epoxy resins from
China. 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\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice, as well as additional language proposed by
Commerce. For a summary of the product coverage comments and rebuttal
responses submitted to the record for this preliminary determination,
and accompanying discussion and analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\7\ Commerce is
not preliminarily modifying the scope language as it appeared in the
Initiation Notice. See the scope in Appendix I to this notice. Pursuant
to 19 CFR 351.309(c)(2), interested parties may submit additional
comments on the scope of this investigation in scope case briefs, which
may be submitted no later than 30 days after the issuance of the
[[Page 89595]]
Preliminary Scope Decision Memorandum.\8\
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\6\ See Initiation Notice, 89 FR at 33324-25.
\7\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of Certain Epoxy Resins from the People's
Republic of China, India, the Republic of Korea, Taiwan, and
Thailand: Preliminary Scope Decision Memorandum,'' dated
concurrently with this preliminary determination (Preliminary Scope
Decision Memorandum).
\8\ Id.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with 772(a) of the Act. Because China is a non-market
economy, within the meaning of section 771(18) of the Act, Commerce has
calculated normal value in accordance with section 773(c) of the Act.
Furthermore, pursuant to sections 776(a) and (b) of the Act, Commerce
has preliminarily relied upon facts otherwise available, with adverse
inferences, for the China-wide entity, which includes (1) Huntsman
Advanced Materials (Guangdong) Company Ltd.; (2) Artmate Co. Ltd.; (3)
Changzhou Original Chemical Co., Ltd.; (4) Jiangsu Ruiheng New Material
Technology Co., Ltd.; (5) Jiangsu Sanmu Group Co., Ltd.; (6) Jushi
Group Company Ltd.; (7) Mercury Far East Enterprise Ltd.; and (8)
Shandong Deyuan Epoxy Resin Co., Ltd. For a full description of the
methodology underlying the preliminary determination, see the
Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances
In accordance with section 733(e) of the Act and 19 CFR 351.206(c),
Commerce preliminarily determines that critical circumstances exist
with respect to imports of epoxy resins from China for the China-wide
entity. For a full description of the methodology and results of
Commerce's critical circumstances analysis, see the Preliminary
Decision Memorandum.
Combination Rates
In the Initiation Notice,\9\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\10\ In this case, because no respondent
qualified for a separate rate, producer/exporter combination rates were
not calculated. For a full description of the separate rate status of
interested parties in this investigation, see the Preliminary Decision
Memorandum.
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\9\ See Initiation Notice, 89 FR at 33328-33329.
\10\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available 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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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margin exists:
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Cash deposit rate (adjusted
Producer/exporter Estimated weighted-average for subsidy offset
dumping margin (percent) (percent))
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China-Wide Entity................................... 354.99 * 344.45
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* Rate based on facts available with adverse inferences.
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise, as described in Appendix I, entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register, as discussed below.
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR
351.205(d), Commerce will instruct CBP to require a cash deposit equal
to the weighted-average amount by which normal value exceeds U.S.
price, as indicated in the chart above as follows: (1) for all
combinations of China producers/exporters of merchandise under
consideration that have not established eligibility for their own
separate rates, the cash deposit rate will be equal to the estimated
weighted-average dumping margin established for the China-wide entity;
and (2) for all third-county exporters of merchandise under
consideration not listed in the table above, the cash deposit rate is
the cash deposit rate applicable to the China-wide entity that supplied
that third-country exporter.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered, or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise from the China-wide entity. In accordance with section
733(e)(2)(A) of the Act, the suspension of liquidation shall apply to
all unliquidated entries of merchandise from the China-wide entity that
were entered, or withdrawn from warehouse, for consumption on or after
the date which is 90 days before the publication of this notice.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted
rates may be found in the ``Preliminary Determination'' section's chart
of estimated weighted-average dumping margins above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margin calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a 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). However,
[[Page 89596]]
because Commerce preliminarily applied adverse facts available (AFA) to
the China-wide entity in this investigation, in accordance with section
776 of the Act, and the applied AFA rate is based solely on the
petition, there are no calculations to disclose.
Verification
Because the mandatory respondent in this investigation did not
provide information requested by Commerce, and Commerce preliminarily
determines that the mandatory respondent was uncooperative,
verification will not be conducted.
Public Comment
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than 14 days after the date of publication of the preliminary
determination, unless Commerce alters the time limit.\11\ Rebuttal
briefs, limited to issues raised in case briefs, may be submitted not
later than five days after the date for filing case briefs.\12\
Interested parties who submit case or rebuttal briefs in this
proceeding must submit: (1) a table of contents listing each issue; and
(2) a table of authorities.\13\
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\11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\12\ Id.
\13\ See 19 CFR 351.309(c)(2) and (d)(2).
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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 briefs 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.\14\
Further, we request that interested parties limit their public
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 public 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).\15\
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\14\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\15\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069, 67077 (September 29, 2023).
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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 and 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.
Final Determination
Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that
Commerce will issue the final determination within 75 days after the
date of its preliminary determination. Accordingly, Commerce will make
its final determination no later than 75 days after the signature date
of this preliminary determination.
U.S. International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether these imports are materially injuring, or
threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: November 6, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary, for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this investigation 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 this
investigation 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 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.
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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.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Discussion of the Methodology
V. Preliminary Affirmative Determination of Critical Circumstances
VI. Adjustment Under Section 777A(f) of the Act
VII. Adjustment to Cash Deposit Rate for Export Subsidies
VIII. Recommendation
[FR Doc. 2024-26255 Filed 11-12-24; 8:45 am]
BILLING CODE 3510-DS-P
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