Certain Epoxy Resins From Thailand: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Negative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures
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Issuing agencies
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that certain epoxy resins (epoxy resins) from Thailand are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation is April 1, 2023, through March 31, 2024. Interested parties are invited to comment on this preliminary determination.
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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 89608-89610]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-26259]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-549-850]
Certain Epoxy Resins From Thailand: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, Preliminary Negative
Determination of Critical Circumstances, 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 Thailand are
being, or are likely to be, sold in the United States at less than fair
value (LTFV). The period of investigation 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: Rachel Jennings or John Frye, AD/CVD
Operations, Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1110 or (202) 482-3035,
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 August 12, 2024, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
November 6, 2024.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ 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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\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 Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, Taiwan, and Thailand:
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 89 FR 65583 (August 12, 2024).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Certain
Epoxy Resins from Thailand,'' 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
Thailand. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ 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.\6\ Commerce is
preliminarily not to 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.\7\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 89 FR at 33328.
\6\ 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).
\7\ 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.
Preliminary Negative Determination of Critical Circumstances
In accordance with section 733(e) of the Act and 19 CFR 351.206,
Commerce preliminarily finds that critical circumstances do not exist
for Aditya Birla Chemicals (Thailand) Limited (Aditya Thai), and all
other exporters and producers of the subject merchandise. For a full
description of the methodology and results of Commerce's critical
circumstances analysis, 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 rates
that are zero, de minimis, or determined entirely under section 776 of
the Act.
In this investigation, Commerce calculated an individual estimated
weighted-average dumping margin for Aditya Thai, the only individually
examined exporter/producer in this investigation. Because the only
individually calculated dumping margin is not zero, de minimis, or
based entirely on facts otherwise available, the estimated weighted-
average dumping margin calculated for Aditya Thai is the margin
assigned to all other producers and exporters, pursuant to section
735(c)(5)(A) of the Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
[[Page 89609]]
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Estimated weighted-average Cash deposit rate (adjusted for subsidy
Exporter/producer dumping margin (percent) offset(s)) (percent)
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Aditya Birla Chemicals (Thailand) 5.59 Not Applicable.
Limited.
All Others........................... 5.59 Not Applicable.
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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 respondent 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.
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.\8\ 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.\9\
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\8\ 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).
\9\ 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.\10\
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).\11\
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\10\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\11\ 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 25, 2024, pursuant to 19 CFR 351.210(e), Aditya Thai
requested that Commerce postpone the final determination and that
provisional measures be extended to a period not to exceed six
months.\12\ 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
[[Page 89610]]
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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\12\ See Aditya Thai's Letter, ``Request for Extension of Final
Determination,'' dated September 25, 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. Discussion of the Methodology
V. Preliminary Negative Determination of Critical Circumstances
VI. Currency Conversion
VII. Recommendation
VIII.
[FR Doc. 2024-26259 Filed 11-12-24; 8:45 am]
BILLING CODE 3510-DS-P
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