Notice2024-26257
Certain Epoxy Resins From the Republic of Korea: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Negative Critical Circumstances Determination, 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 certain epoxy resins (epoxy resins) from the Republic of Korea (Korea) 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 89605-89608]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-26257]
[[Page 89605]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-919]
Certain Epoxy Resins From the Republic of Korea: Preliminary
Affirmative Determination of Sales at Less Than Fair Value, Preliminary
Negative Critical Circumstances Determination, 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 certain epoxy resins (epoxy resins) from the Republic
of Korea (Korea) 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: Joy Zhang or Laura Delgado, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1168 or (202) 482-1468,
respectively.
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 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).
\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 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
Korea. 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 stated 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 and
constructed export prices in accordance with sections 772(a) and (b) of
the Act, respectively. Normal value is calculated in accordance with
section 773 of the Act. For a full description of the methodology
underlying the preliminary determination, see the Preliminary Decision
Memorandum.
Preliminary Negative Determination of Critical Circumstances
In accordance with section 733(e)(1) of the Act and 19 CFR
351.206(c), Commerce preliminarily finds that critical circumstances do
not exist with respect to imports of epoxy resins from Korea for Kukdo
Chemical Co., Ltd. and Kukdo Finechem (collectively Kukdo/Finechem),\9\
Kumho P&B Chemicals Inc. (Kumho P&B), and all other exporters or
producers not individually examined. For a full description of the
methodology and results of Commerce's critical circumstances analysis,
see the Preliminary Decision Memorandum.
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\9\ Commerce preliminarily determines that these companies are a
single entity. See Preliminary Decision Memorandum; see also
Memorandum, ``Preliminary Affiliation and Collapsing Memorandum,''
dated concurrently with this notice.
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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 any rates
that are zero, de minimis, or determined entirely under section 776 of
the Act.
In this investigation, Commerce calculated estimated weighted-
average dumping margins for Kukdo/Finechem and Kumho P&B that are not
zero, de minimis, or based entirely on facts otherwise available.
Commerce calculated the all-others rate using a weighted average of the
estimated weighted-average dumping margins calculated for the examined
respondents using each company's publicly-ranged values for the
merchandise under consideration.\10\
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\10\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated weighted-average
dumping margins calculated for the examined respondents; (B) a
simple average of the estimated weighted-average dumping margins
calculated for the examined respondents; and (C) a weighted-average
of the estimated weighted-average dumping margins calculated for the
examined respondents using each company's publicly-ranged U.S. sales
values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see the All-Others Rate Calculation Memorandum.
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[[Page 89606]]
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Estimated weighted-average
Exporter/producer dumping margin (percent) Cash deposit rate (adjusted for subsidy
\11\ offset(s)) (percent)
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Kukdo/Finechem....................... 24.65 Not Applicable.
Kumho P&B Chemicals, Inc............. 16.02 Not Applicable.
All Others........................... 21.56 Not Applicable.
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Suspension of Liquidation
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\11\ Commerce will normally adjust cash deposits for estimated
antidumping duties by the amount of export subsidies countervailed
in a companion countervailing duty (CVD) proceeding. However,
because Commerce made a preliminary negative finding in the
companion CVD proceeding, no such adjustment is warranted. See
Certain Epoxy Resins from the Republic of Korea: Preliminary
Negative Countervailing Duty Determination, Preliminary Negative
Critical Circumstances Determination and Alignment of Final
Determination with Final Antidumping Duty Determination, 89 FR
74912, (September 13, 2024), and accompanying Preliminary Decision
Memorandum at 6-7.
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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 or the estimated all-others rate, as follows:
(1) the cash deposit rate for the respondents 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. 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 of the date of publication of this
notice in accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in the
case briefs, may be filed not later than five days after the date for
filing case briefs.\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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\12\ See 19 351.309(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).
\13\ 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.\14\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\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 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
[[Page 89607]]
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 19, 2024, pursuant to 19 CFR 351.210(b)(2)(i), the
U.S. Epoxy Resin Producers Ad Hoc Coalition (the petitioner) requested
that, if the preliminary determination was negative, that Commerce
postpone the final determination and that provisional measures be
extended to a period not to exceed six months.\16\ On October 15, 2024,
pursuant to 19 CFR 351.210(e)(2), Kumho P&B and Kukdo Chemical
requested that Commerce fully postpone the final determination, if the
preliminary determination is affirmative and that provisional measures
be extended to a period not to exceed six months.\17\ 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 exporters account 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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\16\ See Petitioner's Letter, ``Petitioner's Request for
Postponement of the Final Determination,'' dated September 19, 2024.
\17\ See Kukdo's Letter, ``Kukdo's Request for Postponement of
Final Determination,'' dated October 15, 2024; see also Kumho P&B's
Letter, ``Request to Postpone the Deadline for the Final
Determination,'' dated October 15, 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 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 investigation
if performed in the subject country.
The scope also includes epoxy resin that is commingled or
blended with epoxy resin from sources not subject to this
investigation. Only the subject component of such commingled
products is covered by the scope of this investigation.
Excluded from the scope are phenoxy resins, which are polymers
with a weight greater than 11,000 Daltons, a Melt Flow Index (MFI)
at 200 [deg]C (392 [deg]F) no less than 4 grams and no greater than
70 grams per 10 min, Glass-Transition Temperatures (Tg) no less than
80 [deg]C (176 [deg]F) and no greater than 100 [deg]C (212 [deg]F),
and which contain no epoxy groups other than at the terminal ends of
the molecule.
Excluded from the scope are certain paint and coating products,
which are blends, mixtures, or other formulations of epoxy resin,
curing agent, and pigment, in any form, packaged in one or more
containers, wherein (1) the pigment represents a minimum of 10
percent of the total weight of the product, (2) the epoxy resin
represents a maximum of 80 percent of the total weight of the
product, and (3) the curing agent represents 5 to 40 percent of the
total weight of the product.
Excluded from the scope are preimpregnated fabrics or fibers,
often referred to as ``pre-pregs,'' which are composite materials
consisting of fabrics or fibers (typically carbon or glass)
impregnated with epoxy resin.
This merchandise is currently classifiable under Harmonized
Tariff Schedule of the United States (HTSUS) subheading
3907.30.0000. Subject merchandise may also be entered under
subheadings 3907.29.0000, 3824.99.9397, 3214.10.0020, 2910.90.9100,
2910.90.9000, 2910.90.2000, and 1518.00.4000. The HTSUS subheadings
are provided for convenience and customs purposes only; the written
description of the scope is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Affiliation and Single Entity Treatment
V. Discussion of the Methodology
VI. Preliminary Negative Determination of Critical Circumstances
VII. Currency Conversion
[[Page 89608]]
VIII. Recommendation
[FR Doc. 2024-26257 Filed 11-12-24; 8:45 am]
BILLING CODE 3510-DS-P
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