Notice2024-26256
Certain Epoxy Resins From India: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
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 imports of certain epoxy resins (epoxy resins) from India are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is April 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 89612-89615]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-26256]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-926]
Certain Epoxy Resins From India: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, Postponement of Final
Determination, and Extension of Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that imports of certain epoxy resins (epoxy resins) from
India are being, or are likely to be, sold in the United States at less
than fair value (LTFV). The period of investigation (POI) is April 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: Sean Grossnickle, AD/CVD Operations,
Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3818.
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 investigation on April 29,
2024.\1\ 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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\1\ See Certain Expoxy Resins from the People's Republic of
China, India, the Republic of Korea, Taiwan, and Thailand:
Initiation of Less-Than-Fair Value Invesitgations, 89 FR 33324
(April 29, 2024) (Initiation Notice).
\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\3\ See Certain Expoxy 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 India'' 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
India. 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
[[Page 89613]]
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 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 section 772(a) of the Act. Constructed export prices
have been calculated in accordance with section 772(b) of the Act.
Normal value is calculated in accordance with section 773 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 Champion Advanced Materials (Champion). For a full
description of the methodology underlying the preliminary
determination, see the Preliminary Decision Memorandum.
All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that, in
the preliminary determination, Commerce shall determine an estimated
all-others rate for all exporters and producers not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated, excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act.
In this investigation, Commerce preliminarily determined an
estimated weighted-average dumping margin for Atul Limited (Atul) that
is not zero, de minimis or based entirely on facts otherwise available.
The estimated weighted-average dumping margin preliminarily determined
for Champion is based on total facts available with an adverse
inference. Consequently, for this preliminary determination, the
estimated weighted-average dumping margin calculated for Atul is the
estimated weighted-average dumping margin for all other producers and
exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Weighted-average Adjusted cash
Exporter or producer dumping margin deposit rate
(percent) (percent) \9\
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Atul Limited.................... 12.01 10.52
Champion Advanced Materials..... * 15.68 * 0.00
All Others...................... 12.01 10.52
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* Rate based on facts available with adverse inferences.
Suspension of Liquidation
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\9\ Adjusted for export subsidies of 1.49 percent (comprised of
0.77 percent for the duty drawback program and 0.72 percent for the
remissions of duties and taxes on export products program) for Atul
and All Others. Adjusted for 91.04 percent (all programs) for
Champion. See Certain Epoxy Resins from India: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination With Final Antidumping Duty Determination, 89 FR 74889
(September 13, 2024), and accompanying Preliminary Decision
Memorandum.
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In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries 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. 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 estimated weighted-
average dumping margin as follows and as adjusted below: (1) the cash
deposit rate for the exporters listed above will be equal to the
company-specific estimated weighted-average dumping margins determined
in this preliminary determination; (2) if the exporter is not a company
identified above, but the producer is, then the cash deposit rate will
be equal to the company-specific estimated weighted-average dumping
margin established for that producer of the subject merchandise; and
(3) the cash deposit rate for all other producers and exporters will be
equal to the all-others estimated weighted-average dumping margin.
Commerce normally adjusts the cash deposit for estimated
antidumping duties by the amount of export subsidies countervailed in a
companion countervailing duty (CVD) proceeding, when CVD provisional
measures are in effect. Accordingly, where Commerce preliminarily made
an affirmative determination for countervailable export subsidies,
Commerce has offset the estimated weighted-average dumping margin by
the appropriate countervailed export subsidy rate. Any such adjusted
cash deposit rate may be found in the ``Preliminary Determination''
section 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 estimated
antidumping duty cash deposits unadjusted for countervailed export
subsidies at the time that the provisional CVD measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any public announcement or, if there is no public
announcement, within five days
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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 submitted by Atul that will be relied upon in
making its final determination.
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 seven days after the date on which the last verification
report is issued in this investigation.\10\ Rebuttal briefs, limited to
issues raised in the case briefs, may be filed no later than five days
after the date for filing case briefs.\11\ 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.\12\
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\10\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for
general filing requirements).
\11\ 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).
\12\ See 19 351.309(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.\13\
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 public 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).\14\
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\13\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\14\ See APO and Service Final Rule.
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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.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On September 16 and 19, 2024, pursuant to 19 CFR 351.210(e), Atul
and the U.S. Epoxy Resin Producers Ad Hoc Coalition (the petitioner),
respectively, requested that Commerce postpone the final determination
and that provisional measures be extended to a period not to exceed six
months.\15\ In accordance with section 735(a)(2)(A) of the Act and 19
CFR 351.210(b)(2)(ii), because: (1) the preliminary determination is
affirmative; (2) the requesting exporter accounts for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, Commerce is postponing the final
determination and extending the provisional measures from a four-month
period to a period not greater than six months. Accordingly, Commerce
will make its final determination no later than 135 days after the date
of publication of this preliminary determination.
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\15\ See Atul's Letter, ``Request to Extend Final
Determination,'' dated September 16, 2024; see also Petitioner's
Letter, ``Petitioner's Request For the Postponement Of The Final
Determinations,'' dated September 19, 2024.
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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. 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 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 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
[[Page 89615]]
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. 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. Application of Facts Available and Use of Adverse Inferences
V. Discussion of the Methodology
VI. Currency Conversion
VII. Adjustments to Estimated Weighted-Average Dumping Margins for
Export Subsidies in Companion Countervailing Duty Investigation
VIII. Recommendation
[FR Doc. 2024-26256 Filed 11-12-24; 8:45 am]
BILLING CODE 3510-DS-P
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