Notice2024-26258
Certain Epoxy Resins From Taiwan: 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 Taiwan are being, or is 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 89591-89594]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-26258]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-583-876]
Certain Epoxy Resins From Taiwan: 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
Taiwan are being, or is 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: Elizabeth Beuley or Benito
Ballesteros, AD/CVD Operations, Office IX, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-3269
or (202) 482-7425, 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
[[Page 89592]]
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
Determination in the Less-Than-Fair-Value Investigation of Certain
Epoxy Resins from Taiwan'' 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
Taiwan. 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 address these comments
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).
\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.
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 any zero
and de minimis margins, and any margins determined entirely under
section 776 of the Act.
In this investigation, Commerce calculated estimated weighted-
average dumping margins for Chang Chun Plastics Co., Ltd. (Chang Chun)
and Nan Ya Plastics Corporation (Nan Ya) 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.\9\
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\9\ 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 Memorandum, ``Calculation of the All-Others Rate for the
Preliminary Determination,'' dated November 6, 2024.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Weighted-
average
Exporter/producer dumping
margin
(percent)
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Chang Chun Plastics Co., Ltd................................ 9.43
Nan Ya Plastics Corporation................................. 20.61
All Others.................................................. 14.81
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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 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 respondent 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.
Commerce normally adjusts cash deposits 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. However, because Commerce preliminarily did not make an
affirmative determination for countervailable export subsidies in the
companion CVD proceeding,\10\ Commerce has not offset the estimated
weighted-average dumping margins in the table above.
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\10\ See Certain Epoxy Resins from Taiwan: Preliminary
Affirmative Countervailing Duty Determination, and Alignment of
Final Determination With Final Antidumping Duty Determination, 89 FR
74896 (September 13, 2024), and accompanying Preliminary Decision
Memorandum.
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Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary
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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. A timeline for the submission of case briefs and
written comments will be released to interested parties at a later
date. 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.\11\ Interested parties who submit case briefs or rebuttal
briefs in this proceeding must submit: (1) a table of contents listing
each issue; and (2) a table of authorities.\12\
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\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 brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\13\
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).\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, 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 October 4, 2024, pursuant to 19 CFR 351.210(e), Nan Ya 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 Nan Ya's Letter, ``Request for Extension of Final
Determination,'' dated October 4, 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 epoxy
resin component comprises no less
[[Page 89594]]
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. Discussion of the Methodology
V. Currency Conversion
VI. Recommendation
[FR Doc. 2024-26258 Filed 11-12-24; 8:45 am]
BILLING CODE 3510-DS-P
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