Notice2025-03823
Methylene Diphenyl Diisocyanate From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation
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
March 11, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 90 Issue 46 (Tuesday, March 11, 2025)</title>
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[Federal Register Volume 90, Number 46 (Tuesday, March 11, 2025)]
[Notices]
[Pages 11710-11715]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03823]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-200]
Methylene Diphenyl Diisocyanate From the People's Republic of
China: Initiation of Less-Than-Fair-Value Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable March 4, 2025.
FOR FURTHER INFORMATION CONTACT: Christopher Maciuba, Office II, AD/CVD
Operations, Enforcement and Compliance, International Trade
[[Page 11711]]
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0413.
SUPPLEMENTARY INFORMATION:
The Petition
On February 12, 2025, the U.S. Department of Commerce (Commerce)
received an antidumping duty (AD) petition concerning imports of
methylene diphenyl diisocyanate (MDI) from the People's Republic of
China (China) filed in proper form on behalf of the Ad Hoc MDI Fair
Trade Coalition (the petitioner).\1\
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\1\ See Petitioner's Letter, ``Petition for the Imposition of
Antidumping Duties on Imports of Methylene Diphenyl Diisocyanate
from China,'' dated February 12, 2025 (Petition). The members of the
Ad Hoc MDI Fair Trade Coalition are BASF Corporation and The Dow
Chemical Company.
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Between February 14 and 26, 2025, Commerce requested supplemental
information pertaining to certain aspects of the Petition in
supplemental questionnaires.\2\ Between February 20 and 28, 2025, the
petitioner filed timely responses to these requests for additional
information.\3\
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\2\ See Commerce's Letters, ``Supplemental Questions,'' dated
February 14, 2025 (First General Issues Questionnaire);
``Supplemental Questions,'' dated February 14, 2025; ``Supplemental
Questions,'' dated February 24, 2025; and ``Supplemental
Questions,'' dated February 26, 2025 (Second General Issues
Questionnaire).
\3\ See Petitioner's Letters, ``Petitioner's Response to Volume
I Supplemental Questionnaire,'' dated February 20, 2025 (First
General Issues Supplement); ``Petitioner's Response to Volume II
Supplemental Questionnaire,'' dated February 20, 2025; see also
``Petitioner's Response to Volume II Second Supplemental
Questionnaire,'' dated February 26, 2025; and ``Petitioner's
Response to the February 26, 2025, General Issues Supplemental
Questionnaire,'' dated February 28, 2025 (Second General Issues
Supplement).
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of MDI from
China are being, or are likely to be, sold in the United States at less
than fair value (LTFV) within the meaning of section 731 of the Act,
and that imports of such products are materially injuring, or
threatening material injury to, the MDI industry in the United States.
Consistent with section 732(b)(1) of the Act, the Petition was
accompanied by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(F) of the Act.\4\ Commerce also finds that
the petitioner demonstrated sufficient industry support for the
initiation of the requested LTFV investigation.\5\
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\4\ The members of the petitioning coalition are interested
parties under section 771(9)(C) of the Act.
\5\ See section on ``Determination of Industry Support for the
Petition,'' infra.
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Period of Investigation
Because the Petition was filed on February 12, 2025, and because
China is a non-market economy (NME) country, pursuant to 19 CFR
351.204(b)(1), the period of investigation (POI) for the LTFV
investigation is July 1, 2024, through December 31, 2024.
Scope of the Investigation
The product covered by this investigation is MDI from China. For a
full description of the scope of this investigation, see the appendix
to this notice.
Comments on the Scope of the Investigation
On February 14 and 26, 2025, Commerce requested information and
clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petition is an accurate
reflection of the products for which the domestic industry is seeking
relief.\6\ On February 20 and 28, 2025, the petitioner provided
clarifications and revised the scope.\7\ The description of merchandise
covered by this investigation, as described in the appendix to this
notice, reflects these clarifications.
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\6\ See First General Issues Questionnaire; see also Second
General Issues Questionnaire.
\7\ See First General Issues Supplement at 2-5 and Exhibit I-S2;
see also Second General Issues Supplement at 1-5 and Exhibits I-SS1
and I-SS2; and Memorandum, ``Phone Call with Counsel to the
Petitioner,'' dated February 28, 2025.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\8\ Commerce will consider all scope
comments received from interested parties and, if necessary, will
consult with interested parties prior to the issuance of the
preliminary determination. If scope comments include factual
information,\9\ all such factual information should be limited to
public information. To facilitate preparation of its questionnaires,
Commerce requests that scope comments be submitted by 5 p.m. Eastern
Time (ET) on March 24, 2025, which is 20 calendar days from the
signature date of this notice. Any rebuttal comments, which may include
factual information, and should also be limited to public information,
must be filed by 5 p.m. ET on April 3, 2025, which is 10 calendar days
from the initial comment deadline.
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\8\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR
351.312.
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
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Commerce requests that any factual information that parties
consider relevant to the scope of this investigation be submitted
during that period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigation may be relevant, the party must contact Commerce and
request permission to submit the additional information.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\10\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
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\10\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance: Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at <a href="https://access.trade.gov/help.aspx">https://access.trade.gov/help.aspx</a> and a handbook
can be found at <a href="https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf">https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf</a>.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of MDI to be reported in
response to Commerce's AD questionnaires. This information will be used
to identify the key physical characteristics of the subject merchandise
in order to report the relevant factors of production (FOP) accurately,
as well as to develop appropriate product comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. In order to consider the suggestions of
interested parties in developing and issuing the AD questionnaires, all
product characteristics comments must be filed by 5 p.m. ET on March
24, 2025, which is 20 calendar days from the signature date of this
notice. Any rebuttal comments must be filed by 5 p.m. ET on April 3,
2025, which is 10 calendar days from the initial comment deadline. All
comments and submissions to Commerce must be filed electronically using
ACCESS, as
[[Page 11712]]
explained above, on the record of the LTFV investigation.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\11\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\12\
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\11\ See section 771(10) of the Act.
\12\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\13\ Based on our analysis of the information
submitted on the record, we have determined that MDI, as defined in the
scope, constitutes a single domestic like product, and we have analyzed
industry support in terms of that domestic like product.\14\
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\13\ See Petition at Volume I (pages 18-23 and Exhibits I-13 and
I-14); see also First General Issues Supplement at 8-10.
\14\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Checklist, ``Methylene Diphenyl Diisocyanate from the People's
Republic of China,'' dated concurrently with, and hereby adopted by,
this notice (China AD Initiation Checklist) at Attachment II,
``Analysis of Industry Support for the Analysis of Industry Support
for the Antidumping Duty Petition Covering Methylene Diphenyl
Diisocyanate from the People's Republic of China.'' These checklists
are on file electronically via ACCESS.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided the
2024 production of the domestic like product for the supporters of the
Petition and compared this to the estimated total production of the
domestic like product for the entire domestic industry.\15\ We relied
on data provided by the petitioner for purposes of measuring industry
support.\16\
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\15\ For further discussion, see Attachment II of the China AD
Initiation Checklist.
\16\ Id.
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Our review of the data provided in the Petition, the First General
Issues Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\17\ First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\18\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
732(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\19\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 732(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition.\20\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 732(b)(1) of the Act.\21\
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\17\ Id.
\18\ Id.; see also section 732(c)(4)(D) of the Act.
\19\ See Attachment II of the China AD Initiation Checklist.
\20\ Id.
\21\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\22\
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\22\ For further discussion, see China AD Initiation Checklist
at Attachment III, ``Analysis of Allegations and Evidence of
Material Injury and Causation for the Antidumping Duty Petition
Covering Methylene Diphenyl Diisocyanate from the People's Republic
of China.''
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The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
increased subject market share; underselling and price depression and/
or suppression; lost sales and revenues; declines in domestic
producers' U.S. shipments, production, and capacity utilization;
adverse impact on financial performance; and negative impact on the
existing development and production efforts of the domestic
industry.\23\ We assessed the allegations and supporting evidence
regarding material injury, threat of material injury, causation, as
well as negligibility, and we have determined that these allegations
are properly supported by adequate evidence, and meet the statutory
requirements for initiation.\24\
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\23\ Id.
\24\ Id.
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Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate an LTFV
investigation of imports of MDI
[[Page 11713]]
from China. The sources of data for the deductions and adjustments
relating to U.S. price and normal value (NV) are discussed in greater
detail in the China AD Initiation Checklist.
U.S. Price
The petitioner based export price (EP) on the following: (1) the
POI average unit value (AUV) derived from official import statistics
for imports of MDI from China into the United States, (2) a
transaction-specific AUV (i.e. month- and port-specific AUV) derived
from official import statistics and tied to ship manifest data, and (3)
pricing information for MDI produced in China and offered for sale in
the United States during the POI.\25\ The petitioner made certain
adjustments to U.S. price to calculate a net ex-factory U.S. price,
where applicable.\26\
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\25\ See China AD Initiation Checklist.
\26\ Id.
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Normal Value
Commerce considers China to be an NME country.\27\ In accordance
with section 771(18)(C)(i) of the Act, any determination that a foreign
country is an NME country shall remain in effect until revoked by
Commerce. Therefore, we continue to treat China as an NME country for
purposes of the initiation of this LTFV investigation. Accordingly, we
base NV on FOPs valued in a surrogate market economy country in
accordance with section 773(c) of the Act.
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\27\ See, e.g., Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Preliminary Affirmative
Determination of Sales at Less Than Fair Value and Preliminary
Affirmative Determination of Critical Circumstances, 88 FR 15372
(March 13, 2023), and accompanying Preliminary Decision Memorandum
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Final Affirmative Determination
of Sales at Less-Than-Fair Value and Final Affirmative Determination
of Critical Circumstances, 88 FR 34485 (May 30, 2023).
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The petitioner claims that Malaysia is an appropriate surrogate
country for China because it is a market economy that is at a level of
economic development comparable to that of China and is a significant
producer of comparable merchandise.\28\ The petitioner provided
publicly available information from Malaysia to value all FOPs except
labor.\29\ Consistent with Commerce's recent practice in cases
involving Malaysia as a surrogate country,\30\ to value labor, the
petitioner provided labor statistics from another surrogate country,
Mexico.\31\ Based on the information provided by the petitioner, we
believe it is appropriate to use Malaysia as a surrogate country for
China to value all FOPs except labor and to value labor using labor
statistics from Mexico for initiation purposes.
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\28\ See China AD Initiation Checklist.
\29\ Id.
\30\ See, e.g., Certain Collated Steel Staples from the People's
Republic of China: Final Results of Antidumping Duty Administrative
Review; and Final Determination of No Shipments; 2021-2022, 88 FR
85242 (December 7, 2023), and accompanying Issues and Decision
Memorandum (IDM) at Comment 2; and Light-Walled Rectangular Pipe and
Tube from the People's Republic of China: Final Results of
Antidumping Duty Administrative Review, 88 FR 15671 (March 14,
2023), and accompanying IDM at Comment 2.
\31\ See China AD Initiation Checklist.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
Because information regarding the volume of inputs consumed by
Chinese producers/exporters was not reasonably available, the
petitioner used a U.S. producer's production experience and product-
specific consumption rates as a surrogate to value Chinese
manufacturers' FOPs.\32\ Additionally, the petitioner calculated
factory overhead, selling, general, and administrative expenses, and
profit based on the experience of a Malaysian producer of comparable
merchandise.\33\
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\32\ Id.
\33\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of MDI from China are being, or are likely to be,
sold in the United States at LTFV. Based on comparisons of EP to NV in
accordance with sections 772 and 773 of the Act, the estimated dumping
margins for MDI from China covered by this initiation range from 305.81
to 511.75 percent.\34\
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\34\ Id.
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Initiation of LTFV Investigation
Based upon the examination of the Petition and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating a LTFV investigation to determine
whether imports of MDI are being, or are likely to be, sold in the
United States at LTFV. In accordance with section 733(b)(1)(A) of the
Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determination no later than 140 days after the date of this
initiation.
Respondent Selection
In the Petition, the petitioner identified eight companies in China
as producers and/or exporters of MDI.\35\ Our standard practice for
respondent selection in AD investigations involving NME countries is to
select respondents based on quantity and value (Q&V) questionnaires in
cases where Commerce has determined that the number of companies is
large, and it cannot individually examine each company based upon its
resources. Therefore, considering the number of producers and/or
exporters identified in the Petition, Commerce will solicit Q&V
information that can serve as a basis for selecting exporters for
individual examination in the event that Commerce determines that the
number is large and decides to limit the number of respondents
individually examined pursuant to section 777A(c)(2) of the Act.
Because there are eight Chinese producers and/or exporters identified
in the Petition, Commerce has determined that it will issue Q&V
questionnaires to each potential respondent for which there is complete
address information on the record.
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\35\ See Petition at Volume I (page 18 and Exhibit I-10); see
also First General Issues Supplement at 1 and Exhibit I-S1.
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Commerce will post the Q&V questionnaires along with filing
instructions on Commerce's website at <a href="https://www.trade.gov/ec-adcvd-case-announcements">https://www.trade.gov/ec-adcvd-case-announcements</a>. Producers/exporters of MDI from China that do not
receive Q&V questionnaires may still submit a response to the Q&V
questionnaire and can obtain a copy of the Q&V questionnaire from
Commerce's website. Responses to the Q&V questionnaire must be
submitted by the relevant Chinese producers/exporters no later than 5
p.m. ET on March 18, 2025, which is two weeks from the signature date
of this notice. All Q&V questionnaire responses must be filed
electronically via ACCESS. An electronically filed document must be
received successfully, in its entirety, by ACCESS no later than 5 p.m.
ET on the deadline noted above.
Interested parties must submit applications for disclosure under
administrative protective order (APO) in accordance with 19 CFR
351.305(b). As stated above, instructions for filing such applications
may be found on Commerce's website at <a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
Separate Rates
In order to obtain separate rate status in an NME investigation,
exporters and
[[Page 11714]]
producers must submit a separate rate application. The specific
requirements for submitting a separate rate application in an NME
investigation are outlined in detail in the application itself, which
is available on Commerce's website at <a href="https://access.trade.gov/Resources/nme/nme-sep-rate.html">https://access.trade.gov/Resources/nme/nme-sep-rate.html</a>. Note that Commerce recently
promulgated new regulations pertaining to separate rates, including the
separate rate application deadline and eligibility for separate rate
status, in 19 CFR 351.108.\36\ Pursuant to 19 CFR 351.108(d)(1), the
separate rate application will be due 21 days after publication of this
initiation notice.\37\ Exporters and producers must file a timely
separate rate application if they want to be considered for individual
examination. In addition, pursuant to 19 CFR 351.108(e), exporters and
producers who submit a separate rate application and have been selected
as mandatory respondents will be eligible for consideration for
separate rate status only if they fully respond to all parts of
Commerce's AD questionnaire and participate in the LTFV proceeding as
mandatory respondents.\38\ Commerce requires that companies from China
submit a response both to the Q&V questionnaire and to the separate
rate application by the respective deadlines to receive consideration
for separate rate status. Companies not filing a timely Q&V
questionnaire response will not receive separate rate consideration.
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\36\ See Regulations Enhancing the Administration of the
Antidumping and Countervailing Duty Trade Remedy Laws, 89 FR 101694,
101759-60 (December 16, 2024).
\37\ See 19 CFR 351.108(d)(1).
\38\ See 19 CFR 351.108(e).
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Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that {Commerce{time} will now
assign in its NME investigation will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period
of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well as the pool of non-investigated firms receiving the {weighted
average{time} of the individually calculated rates. This practice
is referred to as the application of ``combination rates'' because
such rates apply to specific combinations of exporters and one or
more producers. The cash-deposit rate assigned to an exporter will
apply only to merchandise both exported by the firm in question and
produced by a firm that supplied the exporter during the period of
investigation.\39\
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\39\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigation involving NME Countries,'' (April
5, 2005), at 6 (emphasis added), available on Commerce's website at
<a href="https://access.trade.gov/Resources/policy/bull05-1.pdf">https://access.trade.gov/Resources/policy/bull05-1.pdf</a>.
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Distribution of Copy of the Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the Government of China via ACCESS. To the extent
practicable, we will attempt to provide a copy of the public version of
the Petition to each exporter named in the Petition, as provided under
19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of our initiation, as required by
section 732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of MDI from China are materially injuring, or
threatening material injury to, a U.S. industry.\40\ A negative ITC
determination will result in the investigation being terminated.\41\
Otherwise, this LTFV investigation will proceed according to statutory
and regulatory time limits.
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\40\ See section 733(a) of the Act.
\41\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \42\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\43\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in this investigation.
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\42\ See 19 CFR 351.301(b).
\43\ See 19 CFR 351.301(b)(2).
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Time Limits for Submission of Factual Information in Response to
Questionnaires
Section 351.301(c) of Commerce's regulations states that during a
proceeding, Commerce may issue to any person questionnaires, which
includes both initial and supplemental questionnaires. For all
investigations initiated after January 15, 2025, the following time
limits apply:
(i) Initial questionnaire responses are due 30 days from the date
of receipt of such questionnaire. The time limit for response to
individual sections of the questionnaire, if Commerce requests a
separate response to such sections, may be less than the 30 days
allotted for response to the full questionnaire. In general, the date
of receipt will be considered to be seven days from the date on which
the initial questionnaire was transmitted.
(ii) Supplemental questionnaire responses are due on the date
specified by Commerce.
(iii) A notification by an interested party, under section
782(c)(1) of the Act, of difficulties in submitting information in
response to a questionnaire issued by Commerce is to be submitted in
writing within 14 days after the date of the questionnaire or, if the
questionnaire is due in 14 days or less, within the time specified by
Commerce.
(iv) A respondent interested party may request in writing that
Commerce conduct a questionnaire presentation. Commerce may conduct a
questionnaire presentation if Commerce notifies the government of the
affected country and that government does not object.
(v) Factual information submitted to rebut, clarify, or correct
questionnaire responses. Within 14 days after an initial questionnaire
response and within 10 days after a supplemental questionnaire response
has been filed with Commerce, an interested party other than the
original submitter is permitted one opportunity to submit factual
information to rebut, clarify, or correct factual information contained
in the questionnaire response. Within seven days of the filing of such
rebuttal, clarification, or correction to a questionnaire response, the
original
[[Page 11715]]
submitter of the questionnaire response is permitted one opportunity to
submit factual information to rebut, clarify, or correct factual
information submitted in the interested party's rebuttal, clarification
or correction. Commerce will reject any untimely filed rebuttal,
clarification, or correction submission and provide, to the extent
practicable, written notice stating the reasons for rejection. If
insufficient time remains before the due date for the final
determination or final results of review, Commerce may specify shorter
deadlines under this section.
Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301, or as otherwise specified by
Commerce.\44\ For submissions that are due from multiple parties
simultaneously, an extension request will be considered untimely if it
is filed after 10 a.m. ET on the due date. Under certain circumstances,
Commerce may elect to specify a different time limit by which extension
requests will be considered untimely for submissions which are due from
multiple parties simultaneously. In such a case, we will inform parties
in a letter or memorandum of the deadline (including a specified time)
by which extension requests must be filed to be considered timely. An
extension request must be made in a separate, standalone submission;
under limited circumstances we will grant untimely filed requests for
the extension of time limits, where we determine, based on 19 CFR
351.302, that extraordinary circumstances exist. Parties should review
Commerce's regulations concerning the extension of time limits and the
Time Limits Final Rule prior to submitting factual information in this
investigation.\45\
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\44\ See 19 CFR 351.301; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final
Rule), available at <a href="https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm</a>.
\45\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\46\
Parties must use the certification formats provided in 19 CFR
351.303(g).\47\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\46\ See section 782(b) of the Act.
\47\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional
information regarding the Final Rule is available at <a href="https://access.trade.gov/Resources/filing/index.html">https://access.trade.gov/Resources/filing/index.html</a>.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in this investigation should ensure that they meet the requirements of
19 CFR 351.103(d) (e.g., by filing the required letter of appearance).
Note that Commerce has amended certain of its requirements pertaining
to the service of documents in 19 CFR 351.303(f).\48\
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\48\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
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This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: March 4, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix
Scope of the Investigation
The merchandise subject to this investigation is methylene
diphenyl diisocyanate (MDI), which is an aromatic polyisocyanate
material whose composition includes two or more isocyanate groups
(i.e., functional group containing a nitrogen atom, a carbon atom,
and an oxygen atom bonded together (-NCO)) attached to one or more
benzene rings (i.e., flat, symmetrical molecule made up of six
carbon atoms arranged in a hexagonal ring and has the chemical
formula C<INF>6</INF>H<INF>6</INF>) that are joined by methylene
bridges (i.e., a carbon atom bound to two hydrogen atoms (-
CH<INF>2</INF>-) and connected by single bonds to two other distinct
atoms in the rest of the molecule). MDI is commonly called
Polymeric, Monomeric, or Modified MDI and may also be referred to
under other names, including Methylene bisphenyl isocyanate, 4,4'-
Diphenylmethane diisocyanate, Methylene di-p-phenylene ester of
isocyanic acid, Methylene bis(4-phenyl isocyanate), and
polymethylene polyphenylene isocyanate. MDI is normally associated
with Chemical Abstracts Service (CAS) registry numbers 9016-87-9,
101-68-8, 5873-54-1, 2536-05-2, 1689576-89-3, 25686-28-6, 26447-40-
5, and 39310-05-9, but several others are also used.
MDI ranges in physical form from low viscosity liquids to
solids. MDI is covered by the scope of this investigation
irrespective of whether it has gone through a distillation process
and regardless of acid content, reactivity, functionality, freeze
stability, physical form, viscosity, grade, purity, molecular
weight, or packaging.
MDI may contain additives, such as catalysts, solvents,
plasticizers, antioxidants, fire retardants, colorants, pigments,
diluents, thickeners, fillers, softeners, toughening agents. The
scope does not include mixtures of MDI with other materials, when
the combined MDI component comprises less than 40 percent of the
total weight of the mixture.
MDI may be partially reacted with itself, polyol, or polyamines,
and retain MDI component that has not fully chemically reacted so as
to convert it into a different product no longer containing
isocyanate groups. These products are known as homopolymer,
uretonimine MDI, carbodiimide MDI, or prepolymers. The scope does
not include partially reacted MDI when its NCO content is less than
10 weight percentage.
For MDI that enter as part of a system with separately packaged
resin consisting mostly of a chemical compound that has an OH
reactive group, including polyol, only the MDI portion of the system
is included in the scope. The scope does not include any separately
packaged polyol that would not fall within the scope if entered on
its own.
The scope includes merchandise matching the above description
that has been processed in a third country, including by
commingling, diluting, introducing or removing 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 MDI that is commingled or blended with
MDI from sources not subject to this investigation. Only the subject
component of such commingled products is covered by the scope of
this investigation.
This merchandise is currently classifiable under Harmonized
Tariff Schedule of the United States (HTSUS) subheadings
2929.10.8010 and 3909.31.0000. Subject merchandise may also be
entered under subheadings 3824.99.2600, 3909.50.1000, 3909.50.2000,
3909.50.5000, 3824.99.2900, 3506.91.5000, 3911.90.4500,
3921.13.5000, and 3920.99.5000. The HTSUS subheadings are provided
for convenience and customs purposes only; the written description
of the scope is dispositive.
[FR Doc. 2025-03823 Filed 3-10-25; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on March 11, 2025.
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.