Notice2025-05749
Certain Epoxy Resins From India: Final Affirmative Countervailing Duty Determination
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
April 3, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of certain epoxy resins (epoxy resins) from India. The period of investigation (POI) is January 1, 2023, through December 31, 2023.
Full Text
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<title>Federal Register, Volume 90 Issue 63 (Thursday, April 3, 2025)</title>
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[Federal Register Volume 90, Number 63 (Thursday, April 3, 2025)]
[Notices]
[Pages 14636-14639]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05749]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-927]
Certain Epoxy Resins From India: Final Affirmative Countervailing
Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of certain epoxy resins (epoxy resins) from India. The period of
investigation (POI) is January 1, 2023, through December 31, 2023.
DATES: Applicable April 3, 2025.
FOR FURTHER INFORMATION CONTACT: Eliza DeLong or Colin Thrasher, 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) 482-3878 or (202) 482-6458,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 13, 2024, Commerce published the Preliminary
Determination in this investigation in the Federal Register.\1\ On
January 3, 2025, Commerce issued its Post Preliminary Analysis.\2\
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\1\ See Certain Epoxy Resins from India: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final
Determination with Final Antidumping Duty Determination, 89 FR 74889
(September 13, 2024) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis,'' dated January
3, 2025 (Post-Preliminary Analysis).
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[[Page 14637]]
For a complete description of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\3\
The Issues and 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 Issues and 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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\3\ See Memorandum, ``Issue and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Certain Epoxy Resins from India,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation are epoxy resins from
India. For a complete description of the scope of investigation, see
Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from interested parties. Commerce issued a Preliminary Scope
Decision Memorandum to address these comments and set aside a period of
time for parties to address scope issues in scope-specific case and
rebuttal briefs.\4\ Between February 2025 and March 2025, Commerce
received scope-specific case and rebuttal briefs from interested
parties.\5\ We made changes to the scope of the investigation from the
scope published in the Preliminary Determination, as noted in Appendix
I.\6\
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\4\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated November 6, 2024 (Preliminary Scope Decision Memorandum).
\5\ See Petitioner's Letter, ``Case Brief on Scope Issues,''
dated February 28, 2025; The Sherwin-Williams Company's Letter,
``Scope Case Brief on Behalf of Sherwin-Williams,'' dated February
28, 2025; PPG Industries, Inc.'s Letter, ``Scope Case Brief of PPG
Industries, Inc.,'' dated February 28, 2025; Petitioner's Letter,
``Petitioner's Letter in Lieu of Rebuttal Brief on Scope Issues,''
dated March 5, 2025; PPG Industries' Letter, ``Rebuttal Scope Case
Brief of PPG Industries, Inc.,'' dated March 5, 2025; and Sherwin-
Williams' Letter, ``Scope Rebuttal Brief on Behalf of Sherwin
Williams,'' dated March 5, 2025.
\6\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
concurrently with this notice.
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Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in November 2024, Commerce conducted verifications of the
information reported by Atul Limited (Atul) and the Government of India
(GOI) for use in our final determination. We used standard verification
procedures, including an examination of relevant account records and
original source documents provided by Atul and the GOI.\7\
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\7\ See Memoranda, ``Verification of the Government of India
Questionnaire Responses,'' dated January 14, 2025; and
``Verification of Atul Limited Questionnaire Responses,'' dated
January 14, 2025.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs that were submitted by interested parties
in this investigation are discussed in the Issues and Decision
Memorandum. For a complete list of the issues raised by parties, and to
which we responded in the Issues and Decision Memorandum, see Appendix
II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce determines that there is a subsidy, i.e., a
financial contribution by an ``authority'' that gives rise to a benefit
to the recipient, and that the subsidy is specific.\8\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
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In making this final determination, Commerce relied, in part, on
facts otherwise available, with adverse inferences (AFA), pursuant to
sections 776(a) and (b) of the Act. For a full discussion of our
methodology, including our application of AFA, see the Preliminary
Determination,\9\ and the Issues and Decision Memorandum.
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\9\ See Preliminary Determination PDM at 8-32.
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Changes Since the Preliminary Determination
Based on our review of the information examined at verification and
analysis of the comments received from interested parties, we made
certain changes to the countervailable subsidy rate calculations for
Atul which, in turn, impacted the rates assigned to Champion Advanced
Materials (Champion) and all other producers/exporters, including the
addition of subsidy programs included in the Post-Preliminary Analysis.
For a discussion of these changes, see the Issues and Decision
Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated an individual estimated countervailable subsidy rate for one
of the mandatory respondents, Atul. Section 705(c)(5)(A)(i) of the Act
states that, for companies not individually investigated, Commerce will
determine an all-others rate equal to the weighted-average
countervailable subsidy rates established for exporters and/or
producers individually investigated, excluding any rates that are zero,
de minimis, or determined entirely under section 776 of the Act.
In this investigation, we are assigning a rate based entirely on
AFA to Champion. Therefore, the only rate that is not zero, de minimis,
or based entirely on AFA is the rate calculated for Atul. Consequently,
we have also assigned the rate calculated for Atul as the rate for all-
other producers and exporters.
Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist for the period January 1, 2023,
through December 31, 2023:
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Subsidy rate
Company (percent ad
valorem)
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Atul Limited............................................ 10.66
Champion Advanced Materials *........................... * 103.72
All Others.............................................. 10.66
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations performed to
interested parties in this final determination within five days of its
public announcement or, if there is no public announcement, within five
days of the date of the publication of this notice in the Federal
Register, in accordance with 19 CFR 351.224(b).
Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
suspend liquidation of entries of subject merchandise from India that
were entered, or withdrawn from warehouse, for consumption on or after
September 13, 2024, the date of publication of the Preliminary
[[Page 14638]]
Determination in the Federal Register.\10\ In accordance with section
703(d) of the Act, we instructed CBP to discontinue the suspension of
liquidation of all entries of subject merchandise entered or withdrawn
from warehouse, on or after January 11, 2025, but to continue the
suspension of liquidation of all entries of subject merchandise on or
before January 10, 2025.
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\10\ See Preliminary Determination, 89 FR at 74890.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
(CVD) order, reinstate the suspension of liquidation under section
706(a) of the Act, and require a cash deposit of estimated
countervailing duties for entries of subject merchandise in the amounts
indicated above. Pursuant to section 705(c)(2) of the Act, if the ITC
determines that material injury, or threat of material injury, does not
exist, this proceeding will be terminated, and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or cancelled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of epoxy resins
from India. As Commerce's final determination is affirmative, in
accordance with section 705(b) of the Act, the ITC will determine,
within 45 days, whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
import of epoxy resins from India. In addition, we are making available
to the ITC all non-privileged and non-proprietary information in our
files, provided the ITC confirms that it will not disclose such
information, either publicly or under administrative protective order
(APO), without the written consent of the Assistant Secretary for
Enforcement and Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of the subject merchandise that are entered, or withdrawn, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Suspension of Liquidation''
section.
Administrative Protective Order (APO)
This notice will serve as the only reminder to parties subject to
the APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: March 28, 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 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 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.
Also excluded from the scope is Tetramethyl Bisphenol F
Diglycidyl Ether epoxy resin, also known as Tetramethyl Bisphenol F-
DGE Polymer (TMBPF-DGE), that (1) has the chemical name: phenol, 4,
4'-methylenebis[2,6-dimethyl-, polymer with 2-(chloromethyl)oxirane,
(2) falls under Chemical Abstract Services (CAS) Registry Number
113693-69-9, and (3) has an epoxy equivalent weight (EEW), also
referred to as the weight per epoxide (WPE), of no less than 200 and
no greater than 230 grams of epoxy resin per epoxy equivalent (g/eq
or GEW).\11\
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\11\ The bracket in this sentence is part of the chemical
formula and does not denote business proprietary information.
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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.
[[Page 14639]]
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and Application of Adverse
Inferences
IV. Subsidies Valuation Information
V. Analysis of Programs
VI. Discussion of the Issues
Comment 1: Countervailability of Remission of Duties and Taxes
on Export Products (RoDTEP)
Comment 2: Countervailability of Section 35(1)(iv) of the Income
Tax Act
Comment 3: Countervailability of State Government of Gujarat
(SGOG)--Electricity Duty Exemption (EDE)
Comment 4: Countervailability of SGOG--Preferential Water Rates
Comment 5: Provision of Coal for Less Than Adequate Remuneration
(LTAR) Benefit Calculation
Comment 6: Countervailability of Provision of Natural Gas for
LTAR
Comment 7: Countervailability of the Advanced Authorization
Program (AAP)
Comment 8: Countervailability of Provision of Land by the
Gujarat Industrial Development Corporation (GIDC) for LTAR
Comment 9: Countervailability of the Export Promotion of Capital
Goods Scheme (EPCGS)
VII. Recommendation
[FR Doc. 2025-05749 Filed 4-2-25; 8:45 am]
BILLING CODE 3510-DS-P
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