Notice2025-05757
Certain Epoxy Resins From South Korea: 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 imports of certain epoxy resins (epoxy resins) from South Korea (Korea) are being, or are likely to be, sold in the United States at less than fair value (LTFV) for the period of investigation (POI) 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 14623-14625]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05757]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-919]
Certain Epoxy Resins From South Korea: 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
imports of certain epoxy resins (epoxy resins) from South Korea (Korea)
are being, or are likely to be, sold in the United States at less than
fair value (LTFV) for the period of investigation (POI) April 1, 2023,
through March 31, 2024.
DATES: Applicable April 3, 2025.
FOR FURTHER INFORMATION CONTACT: Joy Zhang or Laura Delgado, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4001 or (202) 482-1468,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On November 13, 2024, Commerce published in its Federal Register
its preliminary affirmative determinative in the LTFV investigation of
epoxy resins from Korea.\1\ We invited interested parties to comment on
the Preliminary Determination.\2\ On December 13, 2024, Commerce
published in its Federal Register its amended preliminary affirmative
determination due to ministerial errors for Kumho P&B Chemicals Inc
(Kumho P&B).\3\
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\1\ See Certain Epoxy Resins from the Republic of Korea:
Preliminary Affirmative Determination of Sales at Less Than Fair
Value, Preliminary Negative Critical Circumstances Determination,
Postponement of Final Determination, and Extension of Provisional
Measures, 89 FR 89605 (November 13, 2024) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ Id., 89 FR 89605.
\3\ See Certain Epoxy Resins from the Republic of Korea: Amended
Preliminary Determination of Less-Than-Fair-Value Investigation, 89
FR 100972 (December 13, 2024) (Amended Preliminary Determination),
and accompanying Ministerial Error Memorandum.
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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.\4\ 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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\4\ See Memorandum, ``Decision Memorandum for the Final
Affirmative Determination of Sales at Less Than Fair Value in the
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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Final Negative Determination of Critical Circumstances
We continue to find that critical circumstances do not exist for
imports of epoxy resins from South Korea for all producers and
exporters pursuant to section 735(a)(3) of the Tariff Act of 1930, as
amended (the Act) and 19 CFR 351.206. For a discussion and analysis of
comments regarding Commerce's critical circumstances analysis, see the
Issues and Decision Memorandum.
Scope of the Investigation
The products covered by this investigation are 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.\5\ Between February 2025, and March 2025, Commerce
received scope case and rebuttal briefs from interested parties.\6\ We
made changes to the scope of the investigation from the scope published
in the Preliminary Determination, as noted in Appendix I.\7\
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\5\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated November 6, 2024 (Preliminary Scope Decision Memorandum).
\6\ See Petitioner's Letter, ``Case Brief on Scope Issues,''
dated February 28, 2025 (Petitioner's Scope Case Brief); see also
Sherwin Williams' Letter, ``Scope Case Brief on Behalf of Sherwin-
Williams,'' dated February 28, 2025 (Sherwin-Williams' Scope Case
Brief); PPG's Letter, ``Scope Case Brief of PPG Industries, Inc.,''
dated February 28, 2025 (PPG's Scope Case Brief); Petitioner's
Letter, ``Petitioner's Letter in Lieu of Rebuttal Brief on Scope
Issues,'' dated March 5, 2025 (Petitioner's Rebuttal Scope Case
Brief); PPG's Letter, ``Rebuttal Scope Case Brief of PPG Industries,
Inc.,'' dated March 5, 2025 (PPG's Rebuttal Scope Case Brief); and
Sherwin-Williams' Letter, ``Scope Rebuttal Brief on Behalf of
Sherwin Williams,'' dated March 5, 2025 (Sherwin-Williams' Rebuttal
Scope Case Brief).
\7\ 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 Kumho
P&B and Kukdo Chemical Co., Ltd. and Kukdo Finechem (collectively
referred to as Kukdo/Finechem), for use in our final determination,
consistent with section 782(i) of the Act.\8\ We used standard
verification procedures, including an examination of relevant sales and
accounting records, and original source documents provided by Kumho P&B
and Kukdo/Finechem.
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\8\ See Memoranda, ``Verification of the Sales Response of Kumho
P&B Chemicals Inc. in the Antidumping Duty Investigation of Epoxy
Resins from the Republic of Korea.,'' dated February 7, 2025 (Kumho
P&B's Sales Verification Report); ``Verification of the Sales
Response of Kukdo/Finechem and KDCA in the Antidumping Investigation
of Epoxy Resins from the Republic of Korea,'' dated February 7, 2025
(Kukdo/Finechem's Sales Verification Report); ``Verification of the
Cost Response of Kumho P&B Chemicals, Inc. in the Less-Than-Fair-
Value Investigation of Certain Epoxy Resins from the Republic of
Korea,'' dated February 27, 2025; and ``Verification of the Cost
Response of Kukdo Chemical Co., Ltd. in the Antidumping Duty
Investigation of Certain Epoxy Resins from Republic of Korea,''
dated February 27, 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
[[Page 14624]]
addressed in the Issues and Decision Memorandum. A list of the issues
addressed in the Issues and Decision Memorandum is attached to this
notice as Appendix II.
Changes Since the Amended Preliminary Determination
We made certain changes to the margin calculations for Kukdo/
Finechem and Kumho P&B since the Amended Preliminary Determination. For
a discussion of these changes, see the Issues and Decision Memorandum.
All-Others Rate
Sections 735(c)(5)(A) of the Act provide 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 estimated weighted-
average dumping margins for Kumho P&B and Kukdo/Finechem that are not
zero, de minimis or based entirely on facts available. As a result, the
rate calculated for all other producers and exporters is a weighted
average of the estimated weighted-average dumping margins for Kumho P&B
and Kukdo/Finechem using each company's publicly-ranged values for the
merchandise under consideration.\9\
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\9\ See Memorandum, ``All-Others Rate Calculation,'' dated
concurrently with this notice. With two respondents under
examination, Commerce normally calculates: (A) a weighted-average of
the estimated weighted-average dumping margins calculated for the
examined respondents; (B) a simple average of the estimated
weighted-average dumping margins calculated for the examined
respondents; and (C) a weighted-average of the estimated weighted-
average dumping margins calculated for the examined respondents
using each company's publicly-ranged U.S. sales values 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 Duty Administrative Reviews,
Final Results of Changed-Circumstances Review, and Revocation of an
Order in Part, 75 FR 53661, 53662 (September 1, 2010), and
accompanying Issues and Decision Memorandum at Comment 1. As
complete publicly ranged sales data were available, Commerce based
the all-others rate on the publicly-ranged sales data of the
mandatory respondents. For a complete analysis of the data, see All-
Others Rate Calculation Memorandum.
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Final Determination
Commerce determines that the following estimated weighted-average
dumping margins exist:
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Cash deposit rate
Weighted-average (adjusted for
Exporter/producer dumping margin subsidy
(percent) offset(s))
(percent)
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Kumho P&B Chemicals Inc........... 7.60 7.59
Kukdo Chemical Co., Ltd/Kukdo 5.68 5.62
Finechem \10\....................
All Others........................ 6.37 6.33
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Disclosure
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\10\ In the Preliminary Determination, Commerce preliminarily
determined that these companies are a single entity. See Preliminary
Determination PDM at 5; see also Memorandum, ``Preliminary
Affiliation and Collapsing Memorandum,'' dated November 6, 2024. No
parties commented on this determination; thus, we continue to treat
these companies as a single entity for purposes of this final
determination.
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Commerce intends to disclose its calculations and analysis
performed to interested parties in this final determination 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, 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 companies 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.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of export
subsidies countervailed in a companion countervailing duty (CVD)
proceeding, when CVD provisional measures are in effect. Accordingly,
where Commerce has made a final affirmative determination for
countervailable export subsidies, Commerce offsets the estimated
weighted-average dumping margin by the appropriate CVD rate. Commerce
has adjusted the cash deposit rate for export subsidies in the
companion CVD investigation by the appropriate export subsidy rate as
indicated in the above chart.
U.S. International Trade Commission Notification (ITC)
In accordance with section 735(d) of the Act, Commerce will notify
the ITC of its final affirmative determination of sales at LTFV.
Because Commerce's final determination 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 or sales (or the likelihood of sales) for importation of epoxy
resins no later than 45 days after this final determination. If the ITC
determines that such injury does not exist, this proceeding will be
terminated, all cash deposits posted will be refunded, and
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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 entered,
or withdrawn from warehouse, for consumption on or after the effective
date of the suspension of liquidation, as discussed in the
``Continuation of Suspension of Liquidation'' section above.
Administrative Protective Order
This notice serves as the only reminder to parties subject to an
administrative protective order (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 determination is issued and published in accordance with
sections 735(d) and 777(i)(1) 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.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Changes Since the Amended Preliminary Determination
IV. Final Negative Critical Circumstances Decision
V. Discussion of the Issues
Comment 1: Whether Commerce Should Correct a Ministerial Error
in the Calculation of Kukdo's U.S. Movement Expenses
Comment 2: Whether Commerce Should Use Kukdo's Most Recent Sales
Files in the Final Determination
Comment 3: Whether Commerce Should Treat Kukdo Finechem's
International Freight Expenses as Incurred in Korean Won (KRW)
Comment 4: Whether Commerce Should Increase the Costs of
Manufacture Reported by the Mandatory Respondents Due to Chinese
Overcapacity of Bisphenol A and Epichlorohydrin
Comment 5: Whether Commerce Should Revise the Transactions
Disregarded Adjustment Calculated for Certain Kumho P&B Inputs
Comment 6: Whether Commerce Should Consider the Losses on the
Valuation of Inventories or Inventory Obsolescence Amounts Related
to Finished Goods for Kumho P&B
VI. Recommendation
[FR Doc. 2025-05757 Filed 4-2-25; 8:45 am]
BILLING CODE 3510-DS-P
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