Certain Epoxy Resins From the Republic of Korea: Amended Preliminary Determination of Less-Than-Fair-Value Investigation
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Abstract
The U.S. Department of Commerce (Commerce) is amending its preliminary affirmative determination in the less-than-fair-value (LTFV) investigation of certain epoxy resins (epoxy resins) from the Republic of Korea (Korea) to correct for a significant ministerial error. The period of investigation (POI) is April 1, 2023, through March 31, 2024.
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<title>Federal Register, Volume 89 Issue 240 (Friday, December 13, 2024)</title>
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[Federal Register Volume 89, Number 240 (Friday, December 13, 2024)]
[Notices]
[Pages 100972-100974]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-29430]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-919]
Certain Epoxy Resins From the Republic of Korea: Amended
Preliminary Determination of Less-Than-Fair-Value Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) is amending its
preliminary affirmative determination in the less-than-fair-value
(LTFV) investigation of certain epoxy resins (epoxy resins) from the
Republic of Korea (Korea) to correct for a significant ministerial
error. The period of investigation (POI) is April 1, 2023, through
March 31, 2024.
DATES: Applicable December 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
On November 13, 2024, Commerce published in the Federal Register
its preliminary affirmative determination in the LTFV investigation of
epoxy resins from Korea.\1\ On November 18, 2024, a mandatory
respondent, Kumho P&B Chemicals (Kumho P&B), timely alleged that
Commerce made a significant ministerial error in calculating its
estimated weighted-average dumping margin.\2\
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\1\ See 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, 89 FR 89605 (November 13, 2024) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Kumho P&B's Letter, ``Kumho P&B's Ministerial Error
Allegation,'' dated November 18, 2024.
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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 the Appendix.
Legal Framework
A ministerial error is defined as including ``errors in addition,
subtraction, or other arithmetic function, clerical error resulting
from inaccurate copying, duplication, or the like, and any other
similar type of unintentional error which {Commerce{time} considers
ministerial.'' \3\ A ministerial error is considered to be
``significant'' if its correction, either singly or in combination with
other errors, would result in: (1) a change of at least five absolute
percentage points in, but not less than 25 percent of, the weighted-
average dumping margin calculated in the preliminary determination; or
(2) a difference between a weighted-average dumping margin of zero (or
de minimis) and a weighted-average dumping
[[Page 100973]]
margin of greater than de minimis or vice versa.\4\ Pursuant to 19 CFR
351.224(e), Commerce ``will analyze any comments received and, if
appropriate, correct any significant ministerial error by amending the
preliminary determination.''
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\3\ See section 735(e) of the Tariff Act of 1930, as amended
(the Act); see also 19 CFR 351.224(f).
\4\ See 19 CFR 351.224(g).
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Analysis of Significant Ministerial Error
In the Preliminary Determination, Commerce made a significant
ministerial error within the meaning of section 735(e) of the Act and
19 CFR 351.224(f) and (g)(1) in calculating the estimated weighted-
average dumping margin for Kumho P&B. Accordingly, pursuant to 19 CFR
351.224(e), Commerce is amending its Preliminary Determination to
correct for this significant ministerial error by revising the
weighted-average dumping margins for Kumho P&B and all other producers
and/or exporters.\5\ For a detailed discussion of the alleged
ministerial error, as well as Commerce's analysis, see the Ministerial
Error Memorandum.\6\
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\5\ See Preliminary Determination, 89 FR at 89605 (``{The all-
others rate{time} shall be an amount equal to the weighted average
of the estimated weighted-average dumping margins established for
exporters and producers individually investigated'').
\6\ See Memorandum, ``Less-Than-Fair-Value Investigation of
Epoxy Resins from the Republic of Korea: Ministerial Error
Allegations Regarding the Preliminary Determination,'' dated
concurrently with this notice (Ministerial Error Memorandum) at 2-3.
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Amended Preliminary Determination
As a result of correcting the significant ministerial error,
Commerce determines the following estimated weighted-average dumping
margins exist:
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Estimated
weighted-average Cash deposit rate
Exporter/producer dumping margin (adjusted for subsidy
(percent) \7\ offset(s)) (percent)
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Kukdo Chemical Co., Ltd./ 24.65 Not Applicable.
Kukdo Finechem.
Kumho P&B Chemicals, Inc.\8\. 7.19 Not Applicable.
All Others \9\............... 18.39 Not Applicable.
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Disclosure
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\7\ 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 PDM at 6-7.
\8\ See Memorandum, ``Amended Preliminary Determination Analysis
Memorandum for Kumho P&B,'' dated concurrently with this notice.
\9\ See Memorandum, ``Amended All-Others Rate Calculation,''
dated concurrently with this notice.
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We intend to disclose the calculations performed for this amended
preliminary determination to parties within five days after 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).
Amended Cash Deposits and Suspension of Liquidation
The collection of cash deposits and suspension of liquidation will
be revised according to the rates calculated in this amended
preliminary determination, in accordance with section 733(d) of the
Act. Because the amended rate for Kumho P&B and all other producers
and/or exporters result in decreased cash deposit rates, they will be
effective retroactively to November 13, 2024, the date of publication
of the Preliminary Determination. We will also instruct U.S. Customs
and Border Protection to issue instructions for requesting a refund of
the difference between the amount of cash deposits paid as a result of
the application of the Preliminary Determination rates and the amount
due as a result of the amended preliminary determination rates.
U.S. International Trade Commission (ITC) Notification
In accordance with section 733(f) of the Act, Commerce will notify
the ITC of our amended preliminary determination.
Notification to Interested Parties
This amended preliminary determination is issued and published in
accordance with sections 733(d) and 777(i) of the Act, and 19 CFR
351.224(e).
Dated: December 9, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix--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
[[Page 100974]]
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.
[FR Doc. 2024-29430 Filed 12-12-24; 8:45 am]
BILLING CODE 3510-DS-P
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