Notice2024-29430

Certain Epoxy Resins From the Republic of Korea: Amended Preliminary Determination of Less-Than-Fair-Value Investigation

Primary source

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Published
December 13, 2024

Issuing agencies

Commerce DepartmentInternational Trade Administration

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.

Full Text

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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:

------------------------------------------------------------------------
                                   Estimated
                                weighted-average     Cash deposit rate
      Exporter/producer          dumping margin   (adjusted for  subsidy
                                 (percent) \7\     offset(s))  (percent)
------------------------------------------------------------------------
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.
------------------------------------------------------------------------

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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Indexed from Federal Register on December 13, 2024.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.