Notice2025-05752
Certain Epoxy Resins From Taiwan: 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 Taiwan. 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 14618-14620]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05752]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-583-877]
Certain Epoxy Resins From Taiwan: 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 Taiwan. The period of
investigation (POI) is January 1, 2023, through December 31, 2023.
DATES: Applicable April 3, 2025.
FOR FURTHER INFORMATION CONTACT: Ian Riggs, AD/CVD Operations, Office
IX, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-3810.
SUPPLEMENTARY INFORMATION:
Background
On September 13, 2024, Commerce published the Preliminary
Determination in the Federal Register and invited interested parties to
comment.\1\ On October 31, 2024, Commerce released its Post Preliminary
Analysis.\2\
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\1\ See Certain Epoxy Resins from Taiwan: Preliminary
Affirmative Countervailing Duty Determination, and Alignment of
Final Determination With Final Antidumping Duty Determination, 89 FR
74896 (September 13, 2024) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Post Preliminary Analysis in the
Countervailing Duty Investigation of Certain Epoxy Resins from
Taiwan,'' dated October 31, 2024 (Post Preliminary Analysis).
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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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\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination of the Countervailing Duty Investigation of
Certain Epoxy Resins from Taiwan,'' dated concurrently with, and
hereby adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The products covered by the scope of this investigation are epoxy
resins from Taiwan. 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.\5\ After
analyzing these comments, we made changes to the scope of the
investigation 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; Sherwin Williams' Letter, ``Scope Case
Brief on Behalf of Sherwin-Williams,'' dated February 28, 2025;
PPG'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's
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 verification of the
subsidy information reported by the Taiwan Authorities (TA), Chang Chun
Plastics Co. Ltd. (CCPC), and Nan Ya Plastics Corp. (Nan Ya) for use in
our final determination. We used standard verification procedures,
including an examination of relevant accounting records and original
source documents provided by CCPC, Nan Ya, and the TA.\7\
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\7 \ See Memoranda, ``Verification of the Questionnaire
Responses of Chang Chun Plastics Co. Ltd.,'' dated January 22, 2025;
``Verification of the Questionnaire Responses of Nan Ya Plastics
Corp.,'' dated January 22, 2025; and ``Verification of the
Questionnaire Responses of the Taiwan Authorities,'' dated January
22, 2025.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
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the case and rebuttal briefs that were submitted by interested parties
in this investigation are discussed in the Issues and Decision
Memorandum. For a list of the issues raised by interested parties and
addressed 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, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of adverse facts available (AFA), see the Issues and
Decision Memorandum at the section entitled ``Uses of Facts Available
and Application of Adverse Inferences.''
Changes Since the Preliminary Determination
Based on our review and analysis of the information at verification
and comments received from interested parties, we made changes to the
subsidy rate calculations for CCPC, Nan Ya, and for 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 the
two mandatory respondents, CCPC and Nan Ya. 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 zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act.
In this investigation, we continue to calculate individual total
net countervailable subsidy rates for CCPC and Nan Ya that are not
zero, de minimis, or based entirely on facts otherwise available.
Therefore, we continue to calculate the all-others rate using a
weighted average of the individual estimated subsidy rates calculated
for the examined respondents 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.
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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).
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Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period January 1, 2023, through December
31, 2023:
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\10\ Commerce has found the following companies to be cross-
owned with CCPC: Chang Chun Petrochemical Co., Ltd.; Dairen Chemical
Corporation; Jinzhou Technology Co., Ltd.; and Taiwan Prosperity
Chemical Corporation.
\11\ Commerce has found the following companies to be cross-
owned with Nan Ya: Formosa Plastics Corporation; Formosa Chemicals &
Fibre Corporation; and Formosa Petrochemical Corporation.
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Subsidy
rate
Company (percent ad
valorem)
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Chang Chun Plastics Co. Ltd.\10\........................... 19.13
Nan Ya Plastics Corp.\11\.................................. 3.38
All Others................................................. 11.35
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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, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of entries of subject merchandise from Taiwan that were
entered, or withdrawn from warehouse, for consumption, on or after
September 13, 2024, the date of the publication of the Preliminary
Determination in the Federal Register.\12\ 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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\12\ See Preliminary Determination, 89 FR at 74897.
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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 Taiwan. 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 Taiwan. 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
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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 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 (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 in accordance with
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. Subsidies Valuation
IV. Use of Facts Available and Adverse Inferences
V. Analysis of Programs
VI. Discussion of the Issues
Comment 1: Whether to Continue to Find the Provision of
Electricity for Less than Adequate Remuneration (LTAR) and the
Provision of Natural Gas for LTAR De Facto Specific
Comment 2: Whether to Revise the Benchmarks for the Provision of
Electricity and Natural Gas for LTAR
Comment 3: Whether Commerce Must Conduct an Upstream Subsidy
Analysis for Purchases of Natural Gas from Natural Gas Utility
Enterprises (NGUEs)
Comment 4: Whether to Continue to Find Certain Tax and Grant
Programs De Facto Specific
Comment 5: Whether Nan Ya's Usage of the Industrial Upgrade and
Innovation Platform (IUIP) Program is Tied to Non-Subject
Merchandise
Comment 6: Whether Nan Ya's Usage of the Smart Machinery and 5G
Equipment Investment (Smart Machinery) Program is Tied to Non-
Subject Merchandise
Comment 7: Whether to Find Nan Ya Cross-Owned With Certain
Affiliates
Comment 8: Whether to Apply Facts Available to the Provision of
Natural Gas for LTAR for Nan Ya's Cross-Owned Affiliates
Comment 9: Whether to Apply Adverse Facts Available (AFA) to
CCPC for its Unreported Subsidy Programs
VII. Recommendation
[FR Doc. 2025-05752 Filed 4-2-25; 8:45 am]
BILLING CODE 3510-DS-P
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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.