Notice2025-05754

Certain Epoxy Resins From Thailand: Final Affirmative Determination of Sales at Less-Than-Fair Value and Final Negative Determination of Critical Circumstances

Primary source

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Published
April 3, 2025

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) determines that certain epoxy resins (epoxy resins) from Thailand are being, or are likely to be, sold in the United States at less-than-fair value (LTFV). The period of investigation is April 1, 2023, through March 31, 2024.

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 14621-14623]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05754]



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DEPARTMENT OF COMMERCE

International Trade Administration

[A-549-850]


Certain Epoxy Resins From Thailand: Final Affirmative 
Determination of Sales at Less-Than-Fair Value and Final Negative 
Determination of Critical Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
certain epoxy resins (epoxy resins) from Thailand are being, or are 
likely to be, sold in the United States at less-than-fair value (LTFV). 
The period of investigation is April 1, 2023, through March 31, 2024.

DATES: Applicable April 3, 2025.

FOR FURTHER INFORMATION CONTACT: John Frye, 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) 482-3035.

SUPPLEMENTARY INFORMATION:

Background

    On November 13, 2024, Commerce published in the Federal Register 
its preliminary affirmative determination in the LTFV investigation of 
epoxy resins from Thailand.\1\ We invited interested parties to comment 
on the Preliminary Determination. Although we received comments on 
other issues, no interested party submitted comments regarding the 
preliminary determination of negative critical circumstances. 
Therefore, we continue to determine that critical circumstances do not 
exist for imports of epoxy resins from Thailand.
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    \1\ See Certain Epoxy Resins from Thailand: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Preliminary Negative Determination of Critical Circumstances, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 89 FR 89608 (November 13, 2024) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum.\2\ 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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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of Sales at Less-Than-Fair-Value of 
Certain Epoxy Resins from Thailand,'' 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 
Thailand. 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.\3\ Between February 2025 and March 2025, Commerce 
received scope-specific case and rebuttal briefs from interested 
parties.\4\ We made changes to the scope of the investigation from the 
scope published in the Preliminary Determination, as noted in Appendix 
I.\5\
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    \3\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated November 6, 2024 (Preliminary Scope Decision Memorandum).
    \4\ 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, Inc.'s Letter, ``Rebuttal Scope 
Case Brief of PPG Industries, Inc.,'' dated March 5, 2025; and The 
Sherwin-Williams Company's Letter, ``Scope Rebuttal Brief on Behalf 
of Sherwin Williams,'' dated March 5, 2025.
    \5\ See Memorandum, ``Final Scope Decision Memorandum,'' dated 
concurrently with this notice.
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Verification

    Commerce verified the sales and cost information submitted by 
Aditya Birla Chemicals (Thailand) Limited (Aditya Thai) and its 
affiliate, Aditya Birla Chemicals (USA), Inc. (ABCUSA),\6\ for use in 
our final determination, consistent with section 782(i) of the Tariff 
Act of 1930, as amended (the Act). We used standard verification 
procedures, including an examination of relevant sales and accounting 
records, and original source documents provided by Aditya Thai and 
ABCUSA.
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    \6\ See Memoranda, ``Verification of the Questionnaire Responses 
of Aditya Birla Chemicals (Thailand) Limited in the Less-Than-Fair-
Value Investigation of Certain Epoxy Resins from Thailand,'' dated 
February 11, 2025; ``Verification of the Questionnaire Responses of 
Aditya Birla Chemicals (USA), Inc. in the Less-Than-Fair-Value 
Investigation of Certain Epoxy Resins from Thailand,'' dated 
February 24, 2025; and ``Verification of the Cost Response of Aditya 
Birla Chemicals (Thailand) Limited in the Less-Than-Fair-Value Epoxy 
Resins from the Kingdom of Thailand,'' dated February 28, 2025.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs submitted by 
interested parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of the issues raised is attached to 
this notice as Appendix II.

Changes Since the Preliminary Determination

    We made certain changes since the Preliminary Determination. For a 
discussion of these changes, see the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that Commerce shall 
determine an estimated all-others rate for all exporters and producers 
not individually examined. This rate shall be an amount equal to the 
weighted average of the estimated weighted-average dumping margins 
established for exporters and producers individually investigated, 
excluding any zero and de minimis margins, and any margins determined 
entirely under section 776 of the Act.
    In this investigation, Commerce calculated an estimated weighted-
average dumping margin for Aditya Thai that is not zero, de minimis, or 
based entirely on facts available. Consequently, for this final 
determination, the estimated weighted-average dumping margin calculated 
for Aditya Thai is the estimated weighted-average dumping margin for 
all other producers and exporters.

Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
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Aditya Birla Chemicals (Thailand) Limited...................        5.25
All Others..................................................        5.25
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose under administrative protective order 
(APO) the calculations performed in connection with this final 
determination

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to interested parties within five days of any public announcement or, 
if there is no public announcement, within five days of the date of 
publication of this notice in the Federal Register, in accordance with 
19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of subject merchandise, as described 
in Appendix I of this notice, which were entered, or withdrawn from 
warehouse, for consumption, on or after November 13, 2024, the date of 
publication of the Preliminary Determination in the Federal Register. 
These suspension of liquidation instructions will remain in effect 
until further notice.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), upon the publication of this notice, we will instruct CBP 
to require a cash deposit for estimated weighted-average antidumping 
duties as follows: (1) the cash deposit rate for the company listed in 
the table above that exported the subject merchandise will be equal to 
the company-specific estimated weighted-average dumping margins 
determined in this final determination; (2) if the exporter is not a 
company identified in the table above, but the producer is, then the 
cash deposit rate will be equal to the company-specific estimated 
weighted-average dumping margin established for that producer of the 
subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters will be equal to the estimated weighted-average 
dumping margin for all other producers and exporters. These suspension 
of liquidation instructions will remain in effect until further notice.

U.S. International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of our final affirmative determination of sales at LTFV. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2) of the Act, the ITC will make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of epoxy resins from Thailand no later than 45 days 
after this final determination. If the ITC determines that material 
injury or threat of material injury does not exist, the proceeding will 
be terminated and all cash deposits will be refunded or canceled, and 
suspension of liquidation will be lifted. If the ITC determines that 
such injury does exist, Commerce will issue an antidumping duty order 
directing CBP to assess, upon further instruction by Commerce, 
antidumping duties on all imports of the subject merchandise that are 
entered, or withdrawn from warehouse, 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 
an APO of their responsibility concerning the disposition of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or 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 sanctionable violation.

Notification to Interested Parties

    This final determination and notice are issued and published in 
accordance with sections 735(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).\7\
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    \7\ 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

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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. Changes from the Preliminary Determination
IV. Discussion of the Issues
    Comment 1: Whether the Application of the Cohen's d Test is 
Appropriate
    Comment 2: Whether Commerce Should Apply the Cohen's d Test 
Using a Weighted Average
    Comment 3: Whether to Adjust Aditya Thai's Cost of Manufacturing 
(COM) to Account for Chinese Overcapacity of Material Inputs
    Comment 4: Whether to Adjust Aditya Thai's Reported Costs Based 
on the Cost Verification Findings

[FR Doc. 2025-05754 Filed 4-2-25; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on April 3, 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.