Notice2025-05751
Certain Epoxy Resins From the Republic of Korea: Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances 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 the Republic of Korea (Korea). 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 14605-14608]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05751]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-920]
Certain Epoxy Resins From the Republic of Korea: Final
Affirmative Countervailing Duty Determination and Final Negative
Critical Circumstances 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 the Republic of Korea
(Korea). The period of investigation (POI) is January 1, 2023, through
December 31, 2023.
DATES: Applicable April 3, 2025.
FOR FURTHER INFORMATION CONTACT: Thomas Martin or Benjamin Blythe, AD/
CVD Operations, Office IV, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-3936 or (202)
482-3457, respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 13, 2024, Commerce published the Preliminary
Determination on epoxy resins from Korea in the Federal Register.\1\
Commerce invited parties to comment on the Preliminary
Determination.\2\ For a complete discussion 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 made available to the public 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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\1\ 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) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ Id.
\3\ See Memorandum, ``Issues and Decisions Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Certain Epoxy Resins from the Republic of Korea,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
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Scope of the Investigation
The merchandise covered by the scope of this investigation is epoxy
resins from Korea. For a complete description of the scope of this
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 and March 2025, Commerce received
scope case and rebuttal briefs from interested parties on the
Preliminary Scope Decision Memorandum, which we addressed in the Final
Scope Decision Memorandum.\5\ After analyzing these comments, we made
changes to the scope of the investigation published in the Preliminary
Determination. See Appendix I.
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\4\ 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 November 6,
2024 (Preliminary Scope Decision Memorandum).
\5\ 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: Final Scope Decision Memorandum,'' dated March 28, 2025
(Final Scope Decision Memorandum).
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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 by parties in this investigation, are
discussed in the Issues and Decision Memorandum. For a 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 Tariff Act of 1930, as amended (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.\6\ For a
[[Page 14606]]
full description of the methodology underlying our final determination,
see the Issues and Decision Memorandum.
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Verification
Consistent with section 782(i) of the Act, in January 2025,
Commerce verified all information reported by the cross-owned entities
Kukdo Chemical Co., Ltd. and Kukdo Finechem Co., Ltd. (Kukdo), the
cross-owned entities Kumho P&B Chemicals Inc. and Kumho Petrochemical
Co., Ltd. (Kumho), and the Government of Korea (GOK). We used standard
verification procedures, including an examination of relevant account
records and original source documents provided by the respondents.\7\
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\7\ See Memoranda, ``Verification of the Questionnaire Responses
of the Government of the Republic of Korea,'' dated February 7, 2025
(GOK Verification Report); see also ``Verification of the
Questionnaire Responses of Kumho Petrochemical and Kumho P & B
Chemicals Inc.'' dated February 10, 2025 (Kumho Verification
Report); and ``Verification of the Questionnaire Responses of Kukdo
Chemical Co., Ltd. and Kukdo Finechem Co., Ltd.,'' dated February
11, 2025 (Kukdo Verification Report).
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Changes Since the Preliminary Determination and Post-Preliminary
Analysis
Based on our review and analysis of the information received during
verification and comments received from parties, for this final
determination, we made certain changes to the countervailable subsidy
rate calculations for Kukdo, Kumho, and for all other producers/
exporters. For a discussion of these changes, see the Issues and
Decision Memorandum.
Final Negative Determination of Critical Circumstances
Commerce preliminarily determined, in accordance with sections
703(e)(1)(A) and (B) of the Act, and 19 CFR 351.206, that critical
circumstances did not exist with respect to imports of subject
merchandise for Kukdo, Kumho, and all other producers and/or
exporters.\8\ For this final determination, in accordance with section
705(a)(2) of the Act, Commerce continues to find that critical
circumstances do not exist with respect to imports of subject
merchandise for Kukdo, Kumho, and all other producers and/or exporters.
For a full description of the methodology and results of our critical
circumstances analysis, see the Issues and Decision Memorandum.
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\8\ See Preliminary Determination PDM at 4-7.
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All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted-average
countervailable subsidy rates established for exporters and/or
producers individually investigation, excluding any zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act. Commerce preliminarily calculated total net
subsidy rates for Kukdo and Kumho that were de minimis, and thus did
not calculate an estimated weighted-average subsidy rate for all other
producers/exporters. We calculated the all-others rate using a weighted
average of the individual estimated subsidy rates calculated for the
examined respondents (Kukdo and Kumho) using each company's publicly-
ranged sales value for their exports to the United States of subject
merchandise,\9\ in accordance with section 705(c)(5)(A)(i) of the
Act.\10\
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\9\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale quantities for the merchandise under consideration. Commerce
then compares (B) and (C) to (A) and selects the rate closest to (A)
as the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010); see also Forged Steel Fluid End Blocks from
Italy: Preliminary Affirmative Countervailing Duty Determination,
and Alignment of Final Determination with Final Antidumping Duty
Determination, 85 FR 31460, 31461 (May 26, 2020), unchanged in
Forged Steel Fluid End Blocks from Italy: Final Affirmative
Countervailing Duty Determination, 85 80022, 80023 (December 11,
2020).
\10\ See Memorandum, ``Calculation of the All Others Rate,''
dated concurrently with this memorandum.
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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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\11\ Commerce continues to find Kukdo Chemical Co., Ltd is
cross-owned with Kukdo Finechem Co., Ltd. See Preliminary
Determination PDM at 9-10.
\12\ Commerce continues to determine that Kumho P&B Chemicals
Inc. is cross-owned with Kumho Petrochemical Co., Ltd. and Chemoil
Corporation. See Preliminary Determination PDM at 10.
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Subsidy rate
Company (percent ad
valorem)
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Kukdo Chemical Co., Ltd.\11\............................ 1.01
Kumho P&B Chemicals Inc.\12\............................ 1.84
All Others.............................................. 1.30
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Disclosure
Commerce intends to disclose its calculations and analysis
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 351.244(b).
Suspension of Liquidation
Because the Preliminary Determination was negative, we did not
instruct U.S. Customs and Border Protection (CBP) to suspend entries of
subject merchandise. In accordance with section 705(c)(1)(C) of the
Act, we are now directing CBP to suspend liquidation of entries of
subject merchandise and to require the posting of a cash deposit on all
imports of the subject merchandise from Korea that are entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. The suspension of
liquidation will remain in effect until further notice. In addition,
pursuant to section 705(c)(1)(B)(ii) of the Act, we are directing CBP
to require a cash deposit for such entries of merchandise in the amount
indicated above.
As our final determination is affirmative and our preliminary
determination was negative, in accordance with section 705(b)(3) of the
Act, the U.S. International Trade Commission (ITC) will determine
within 75 days whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
imports or sales (or the likelihood of sales) for importation of the
subject merchandise. We will issue a countervailing duty order if the
ITC issues a final affirmative injury determination. 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 canceled.
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
for Korea. As Commerce's final determination is affirmative, in
accordance with section 705(b)(3) of the Act, the ITC will determine,
within 75 days, whether the domestic industry in the United States is
materially injured,
[[Page 14607]]
or threated with material injury, by reason of import of epoxy resins
for Korea. 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 countervailing duty 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 ``Continuation of Suspension of
Liquidation'' section.
Administrative Protective Order
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).\13\
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\13\ 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.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Final Negative Critical Circumstances Determination
IV. Subsidies Valuation
V. Use of Facts Otherwise Available and Application of Adverse
Inferences
VI. Changes Since the Preliminary Determination
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Whether the Provision of Electricity for Less Than
Adequate Remuneration (LTAR) is a Countervailable Subsidy
Comment 2: Whether Commerce Should Revise Its Benefit
Calculation for the Base Charge of the Provision of Electricity for
LTAR
Comment 3: Whether Commerce Should Revise the Electricity
Benchmarks Used to Determine Respondents' Preliminary Subsidy Rate
Comment 4: Whether the Provision of Electricity for More than
Adequate Remuneration (MTAR) is a Countervailable Subsidy
Comment 5: Whether Commerce Should Revise Its Benefit
Calculation of the Provision of Electricity for MTAR
Comment 6: Whether the Provision of Allocated Korea Allowance
Units is a Countervailable Subsidy
Comment 7: Whether Commerce Should Revise Its Benchmark to
Measure the Benefit to Kumho Under the Korea Emissions Trading
System Program
Comment 8: Whether the Chemical Substances Registration Support
Project is a Countervailable Subsidy
Comment 9: Whether Commerce Should Revise Its Benefit
Calculation for the Chemical Substances Registration Support Project
Comment 10: Whether the Renewable Energy Certificates Program is
Countervailable
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Comment 11: Whether the Loans Received by Kumho from the Korea
National Oil Company are Countervailable
Comment 12: Whether Certain Programs are De Facto Specific
Comment 13: Whether Commerce Should Find Kukdo and Several of
Its Affiliates to be Cross-Owned
Comment 14: Whether Commerce Should Clarify or Correct Aspects
of the Government of the Republic of Korea Verification Report
Comment 15: Whether Commerce has the Legal Authority under the
World Trade Organization Rules and U.S. Law to Investigate
Transnational Subsidies
Comment 16: Whether Commerce Should Account for Value-Added
Taxes on Certain Purchases for ECH from China for LTAR
Comment 17: Whether Transnational Subsidies Exist in this
Investigation
Comment 18: Whether the Provision of ECH from China for LTAR is
a Countervailable Subsidy
Comment 19: Whether Commerce Should Apply Adverse Facts
Available to Kukdo's Inland Freight Costs for Purchases of ECH
Comment 20: Whether Commerce Should find the Korean ECH Market
is Distorted by Chinese Overcapacity and Subsidies
Comment 21: Whether Commerce Should Reverse Its Decision Not to
Initiate an Investigation of the Provision of Certain Other Chemical
Inputs for LTAR
Comment 22: Whether Chinese Subsidies to an International
Consortium is a Countervailable Subsidy
IX. Recommendation
[FR Doc. 2025-05751 Filed 4-2-25; 8:45 am]
BILLING CODE 3510-DS-P
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