Emulsion Styrene-Butadiene Rubber From the Republic of Korea: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Affirmative Determination of Critical Circumstances, in Part, Postponement of Final Determination, and Extension of Provisional Measures, 11536-11538 [2017-03637]
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11536
Federal Register / Vol. 82, No. 36 / Friday, February 24, 2017 / Notices
are oil-extended and thus darker in color,
and are often called ‘‘Brown Rubber.’’
Specifically excluded from the scope of
this investigation are products which are
manufactured by blending ESB rubber with
other polymers, high styrene resin master
batch, carbon black master batch (i.e., IISRP
1600 series and 1800 series) and latex (an
intermediate product).
The products subject to this investigation
are currently classifiable under subheadings
4002.19.0015 and 4002.19.0019 of the
Harmonized Tariff Schedule of the United
States (HTSUS). ESB rubber is described by
Chemical Abstract Services (CAS) Registry
No. 9003–55–8. This CAS number also refers
to other types of styrene butadiene rubber.
Although the HTSUS subheadings and CAS
registry number are provided for convenience
and customs purposes, the written
description of the scope of this investigation
is dispositive.
Appendix II
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
A. Determination of the Comparison
Method
B. Results of the Differential Pricing
Analysis
VI. Date of Sale
VII. Product Comparisons
VIII. Constructed Export Price
IX. Normal Value
A. Home Market Viability
B. Affiliated-Party Transactions and Arms’Length Test
C. Level of Trade
D. Cost of Production (COP) Analysis
1. Calculation of COP
2. Test of Comparison Market Sales Prices
3. Results of the COP Test
E. Calculation of NV Based on Comparison
Market Prices
X. Currency Conversion
[FR Doc. 2017–03625 Filed 2–23–17; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
asabaliauskas on DSK3SPTVN1PROD with NOTICES
[A–580–890]
Emulsion Styrene-Butadiene Rubber
From the Republic of Korea:
Preliminary Affirmative Determination
of Sales at Less Than Fair Value,
Affirmative Determination of Critical
Circumstances, in Part, Postponement
of Final Determination, and Extension
of Provisional Measures
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) preliminarily
AGENCY:
VerDate Sep<11>2014
17:20 Feb 23, 2017
Jkt 241001
determines that emulsion styrenebutadiene rubber (ESB rubber) from the
Republic of Korea (Korea) is being, or is
likely to be, sold in the United States at
less than fair value (LTFV). The period
of investigation (POI) is July 1, 2015,
through June 30, 2016.
DATES: Effective February 24, 2017.
FOR FURTHER INFORMATION CONTACT:
Carrie Bethea or Kabir Archuletta, 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) 482–1491 or (202) 482–2593,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is
made in accordance with section 733(b)
of the Tariff Act of 1930, as amended
(the Act). The Department published the
notice of initiation of this investigation
on August 19, 2016.1 The Department
postponed the preliminary
determination of this investigation until
February 16, 2017.2 For a complete
description of the events that followed
the initiation of this investigation, see
the Preliminary Decision
Memorandum.3 A list of topics included
in the Preliminary Decision
Memorandum is included as Appendix
II to this notice. The Preliminary
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 https://
access.trade.gov, and to all parties in the
Central Records Unit, room B8024 of the
main Department of Commerce
building. In addition, a complete
version of the Preliminary Decision
Memorandum can be accessed directly
at https://enforcement.trade.gov/frn/.
The signed Preliminary Decision
1 See Emulsion Styrene-Butadiene Rubber from
Brazil, the Republic of Korea, Mexico, and Poland:
Initiation of Less Than Fair Value Investigations, 81
FR 55438 (August 19, 2016) (Initiation Notice).
2 See Emulsion Styrene-Butadiene Rubber from
Brazil, the Republic of Korea, Mexico, and Poland:
Postponement of Preliminary Determination of
Sales at Less Than Fair Value Investigations, 81 FR
85208 (November 25, 2016).
3 See Memorandum to Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and
Compliance, from Gary Taverman, Associate
Deputy Assistant Secretary for Antidumping and
Countervailing Duty Operations, entitled, ‘‘Decision
Memorandum for the Preliminary Determination in
the Less Than Fair Value Investigation of Emulsion
Styrene-Butadiene Rubber from Korea,’’ dated
concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
Memorandum and the electronic
version are identical in content.
Scope of the Investigation
The product covered by this
investigation is ESB rubber from Korea.
For a complete description of the scope
of this investigation, see Appendix I.
Scope Comments
In accordance with the preamble to
the Department’s regulations,4 the
Initiation Notice set aside a period of
time for interested parties to raise issues
regarding product coverage (i.e., scope).5
No interested party commented on the
scope of the investigation as it appeared
in the Initiation Notice. The Department
is not preliminarily modifying the scope
language as it appeared in the Initiation
Notice.
Methodology
The Department is conducting this
investigation in accordance with section
731 of the Act. The Department has
calculated export prices in accordance
with section 772(a) of the Act.
Constructed export prices have been
calculated in accordance with section
773 of the Act. Normal value (NV) For
a full description of the methodology
underlying our preliminary conclusions,
see the Preliminary Decision
Memorandum.
Preliminary Affirmative Determination
of Critical Circumstances, in Part
In accordance with section 733(e) of
the Act and 19 CFR 351.206, we
preliminarily find that critical
circumstances do not exist for LG Chem,
Ltd. (LG Chem). However, because
Daewoo International Corporation
(Daewoo) and Kumho Petrochemical Co,
Ltd (Kumho) did not respond to the
Department’s questionnaires, we have
determined pursuant to sections 776(a)
and (b) of the Act, that critical
circumstances exist for both Daewoo
and Kumho as adverse facts available
(AFA). For a full description of the
methodology and results of our critical
circumstances analysis, see the
Preliminary Decision Memorandum.
Adverse Facts Available
Daewoo and Kumho were each
selected as a mandatory respondent, but
each failed to respond to the
Department’s questionnaires.
Accordingly, we preliminarily
determine to based their dumping
margins on AFA, in accordance with
sections 776(a) and (b) of the Act and 19
CFR 351.308. As AFA, we applied the
4 See Antidumping Duties; Countervailing Duties,
62 FR 27296, 27323 (May 19, 1997).
5 See Initiation Notice.
E:\FR\FM\24FEN1.SGM
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Federal Register / Vol. 82, No. 36 / Friday, February 24, 2017 / Notices
highest dumping margin calculated for
Korean exports of subject merchandise
contained in the petition,6 44.30
percent. For further discussion, see the
Preliminary Decision Memorandum.
All-Others Rate
Sections 733(d)(1)(A)(ii) and
735(c)(5)(A) of the Act provide that in
the preliminary determination the
Department shall determine an
estimated all-others rate for all exporters
and producers not individually
investigated, which 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.
The Department calculated a
company-specific rate for LG Chem that
is not zero, de minimis or determined
entirely under section 776 of the Act.
However, the Department is
preliminarily applying AFA, pursuant
to section 776(a) and (b) of the Act, to
Daewoo and Kumho. Therefore, for
purposes of determining the ‘‘all-others’’
rate and pursuant to section 735(c)(5)(A)
of the Act, we are using the weightedaverage dumping margin calculated for
LG Chem as the estimated weightedaverage dumping margin assigned to all
other producers and exporters of the
merchandise under consideration.
Preliminary Determination
The Department preliminarily
determines that the following weightedaverage dumping margins exist:
Weightedaverage
margins
(percent)
Exporter/producer
LG Chem, Ltd. ............................
Daewoo International Corporation ..........................................
Kumho Petrochemical Co, Ltd ...
All-Others ....................................
asabaliauskas on DSK3SPTVN1PROD with NOTICES
We intend to disclose the calculations
performed to interested parties in this
proceeding within five days of the date
of publication of this notice in
accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i) of the
Act, we intend to verify information
relied upon in making our final
determination.
Public Comment
44.30
44.30
11.63
Case briefs or other written comments
may be submitted to the Assistant
Secretary for Enforcement and
Compliance no later than seven days
after the date on which the final
verification report is issued in this
proceeding, and rebuttal briefs, limited
to issues raised in case briefs, may be
submitted no later than five days after
the deadline date for case briefs.7
Pursuant to 19 CFR 351.309(c)(2) and
(d)(2), parties who submit case briefs or
rebuttal briefs in this proceeding are
encouraged to submit with each
argument: (1) A statement of the issue;
(2) a brief summary of the argument;
and (3) a table of authorities.
In accordance with section 733(d)(2)
of the Act, the Department will direct
U.S. Customs and Border Protection
(CBP) to suspend liquidation of subject
merchandise as described in the scope
of the investigation section entered, or
withdrawn from warehouse, for
consumption on or after the date of
publication of this notice in the Federal
Register, as discussed below. Further,
6 See the Petitions for the Imposition of
Antidumping Duties on Emulsion Styrene
Butadiene Rubber from Brazil, the Republic of
Korea, Mexico, and Poland, dated July 21, 2016.
17:20 Feb 23, 2017
Disclosure
11.63
Suspension of Liquidation
VerDate Sep<11>2014
pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), the
Department will instruct CBP to require
a cash deposit equal to the weightedaverage amount by which normal value
exceeds U.S. price. These suspension of
liquidation instructions will remain in
effect until further notice.
Section 733(e)(2) of the Act provides
that, given an affirmative determination
of critical circumstances, any
suspension of liquidation shall apply to
unliquidated entries of merchandise
entered, or withdrawn from warehouse,
for consumption on or after the later of
(a) the date which is 90 days before the
date on which the suspension of
liquidation was first ordered, or (b) the
date on which notice of initiation of the
investigation was published. The
Department preliminarily finds that
critical circumstances exist for imports
of subject merchandise produced and
exported by Daewoo and Kumho. In
accordance with section 733(e)(2)(A) of
the Act, the suspension of liquidation
shall apply to unliquidated entries of
merchandise from the exporters
identified in this paragraph that were
entered, or withdrawn from warehouse,
for consumption on or after the date
which is 90 days before the publication
of this notice.
Jkt 241001
7 See 19 CFR 351.309; see also 19 CFR 351.303
(for general filing requirements).
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
11537
Pursuant to 19 CFR 351.310(c),
interested parties who wish to request a
hearing, limited to issues raised in the
case and rebuttal briefs, must submit a
written request to the Assistant
Secretary for Enforcement and
Compliance, U.S. Department of
Commerce, within 30 days after the date
of publication of this notice. Requests
should contain the party’s name,
address, and telephone number, the
number of participants, whether any
participant is a foreign national, and a
list of the issues to be discussed. If a
request for a hearing is made, the
Department intends to hold the hearing
at the U.S. Department of Commerce,
1401 Constitution Avenue NW.,
Washington, DC 20230, at a time and
date to be determined. Parties should
confirm by telephone the date, time, and
location of the hearing two days before
the scheduled date.
Postponement of Final Determination
and Extension of Provisional Measures
Section 735(a)(2) of the Act provides
that a final determination may be
postponed until not later than 135 days
after the date of the publication of the
preliminary determination if, in the
event of an affirmative preliminary
determination, a request for such
postponement is made by exporters who
account for a significant proportion of
exports of the subject merchandise, or in
the event of a negative preliminary
determination, a request for such
postponement is made by the
petitioners. Section 351.210(e)(2) of the
Department’s regulations requires that
requests by respondents for
postponement of a final antidumping
determination be accompanied by a
request for extension of provisional
measures from a four-month period to a
period not more than six months in
duration.
On January 10, 2017, pursuant to 19
CFR 351.210(e), LG Chem requested that
the Department postpone the final
determination and that provisional
measures be extended to a period not to
exceed six months.8 In accordance with
section 735(a)(2)(A) of the Act and 19
CFR 351.210(b)(2)(ii), because: (1) Our
preliminary determination is
affirmative; (2) the requesting exporter
accounts for a significant proportion of
exports of the subject merchandise; and
(3) no compelling reasons for denial
exist, we are postponing the final
determination and extending the
provisional measures from a four-month
8 See Letter to the Secretary of Commerce from LG
Chem, entitled, ‘‘LG Chem’s Request for Extension
of Final Determination and Provisional Measures,’’
dated January 10, 2017.
E:\FR\FM\24FEN1.SGM
24FEN1
11538
Federal Register / Vol. 82, No. 36 / Friday, February 24, 2017 / Notices
period to a period not greater than six
months. Accordingly, we will make our
final determination no later than 135
days after the date of publication of this
preliminary determination.
International Trade Commission
Notification
In accordance with section 733(f) of
the Act, we are notifying the
International Trade Commission (ITC) of
our preliminary affirmative
determination. If our final
determination is affirmative, the ITC
will determine before the later of 120
days after the date of this preliminary
determination or 45 days after our final
determination whether these imports
are materially injuring, or threaten
material injury to, the U.S. industry.
This determination is issued and
published in accordance with sections
733(f) and 777(i)(1) of the Act and 19
CFR 351.205(c).
Dated: February 16, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement
and Compliance.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Appendix I
Scope of the Investigation
For purposes of this investigation, the
product covered is cold-polymerized
emulsion styrene-butadiene rubber (ESB
rubber). The scope of the investigation
includes, but is not limited to, ESB rubber in
primary forms, bales, granules, crumbs,
pellets, powders, plates, sheets, strip, etc.
ESB rubber consists of non-pigmented
rubbers and oil-extended non-pigmented
rubbers, both of which contain at least one
percent of organic acids from the emulsion
polymerization process.
ESB rubber is produced and sold in
accordance with a generally accepted set of
product specifications issued by the
International Institute of Synthetic Rubber
Producers (IISRP). The scope of the
investigation covers grades of ESB rubber
included in the IISRP 1500 and 1700 series
of synthetic rubbers. The 1500 grades are
light in color and are often described as
‘‘Clear’’ or ‘‘White Rubber.’’ The 1700 grades
are oil-extended and thus darker in color,
and are often called ‘‘Brown Rubber.’’
Specifically excluded from the scope of
this investigation are products which are
manufactured by blending ESB rubber with
other polymers, high styrene resin master
batch, carbon black master batch (i.e., IISRP
1600 series and 1800 series) and latex (an
intermediate product).
The products subject to this investigation
are currently classifiable under subheadings
4002.19.0015 and 4002.19.0019 of the
Harmonized Tariff Schedule of the United
States (HTSUS). ESB rubber is described by
Chemical Abstract Services (CAS) Registry
No. 9003–55–8. This CAS number also refers
to other types of styrene butadiene rubber.
Although the HTSUS subheadings and CAS
registry number are provided for convenience
VerDate Sep<11>2014
17:20 Feb 23, 2017
Jkt 241001
and customs purposes, the written
description of the scope of this investigation
is dispositive.
Appendix II
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
A. Determination of the Comparison
Method
B. Results of the Differential Pricing
Analysis
VI. Date of Sale
VII. Product Comparisons
VIII. Export Price and Constructed Export
Price
IX. Normal Value
A. Home Market Viability
B. Level of Trade
C. Cost of Production (COP) Analysis
1. Calculation of COP
2. Test of Comparison Market Sales Prices
3. Results of the COP Test
D. Calculation of NV Based on Comparison
Market Prices
X. Application of Facts Available and Use of
Adverse Inference
A. Application of Facts Available
B. Use of Adverse Inference
C. Selection and Corroboration of the AFA
Rate
XI. Preliminary Affirmative Determination of
Critical Circumstances, In Part
A. Legal Framework
B. Critical Circumstances Analysis
C. Analysis
XII. Currency Conversion
XIII. Conclusion
FOR FURTHER INFORMATION CONTACT:
Drew Jackson, 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) 482–4406.
SUPPLEMENTARY INFORMATION:
Background
International Trade Administration
This preliminary determination is
made in accordance with section 733(b)
of the Tariff Act of 1930, as amended
(the Act). The Department published the
notice of initiation of this investigation
on August 19, 2016.1 The Department
postponed the preliminary
determination of this investigation until
February 16, 2017.2 For a complete
description of the events that followed
the initiation of this investigation, see
the Preliminary Decision
Memorandum.3 A list of topics included
in the Preliminary Decision
Memorandum is included as Appendix
II to this notice. The Preliminary
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 https://
access.trade.gov, and to all parties in the
Central Records Unit, room B8024 of the
main Department of Commerce
building. In addition, a complete
version of the Preliminary Decision
Memorandum can be accessed directly
at https://enforcement.trade.gov/frn/.
The signed Preliminary Decision
Memorandum and the electronic
version are identical in content.
[A–351–849]
Scope of the Investigation
Emulsion Styrene-Butadiene Rubber
From Brazil: Preliminary Affirmative
Determination of Sales at Less Than
Fair Value, Negative Determination of
Critical Circumstances, Postponement
of Final Determination, and Extension
of Provisional Measures
The product covered by this
investigation is ESB rubber from Brazil.
For a complete description of the scope
of this investigation, see Appendix I.
[FR Doc. 2017–03637 Filed 2–23–17; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) preliminarily
determines that emulsion styrenebutadiene rubber (ESB rubber) from
Brazil is being, or is likely to be, sold
in the United States at less than fair
value (LTFV). The period of
investigation (POI) is July 1, 2015,
through June 30, 2016.
DATES: Effective February 24, 2017.
AGENCY:
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
1 See Emulsion Styrene-Butadiene Rubber from
Brazil, the Republic of Korea, Mexico and Poland:
Initiation of Less Than Fair Value Investigations, 81
FR 55438 (August 19, 2016) (Initiation Notice).
2 See Emulsion Styrene-Butadiene Rubber from
Brazil, the Republic of Korea, Mexico, and Poland:
Postponement of Preliminary Determination of
Sales at Less Than Fair Value Investigations, 81 FR
85208 (November 25, 2016).
3 See Memorandum to Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and
Compliance, from Gary Taverman, Associate
Deputy Assistant Secretary for Antidumping and
Countervailing Duty Operations, entitled, ‘‘Decision
Memorandum for the Preliminary Determination in
the Less Than Fair Value Investigation of Emulsion
Styrene-Butadiene Rubber from Brazil,’’ dated
concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
E:\FR\FM\24FEN1.SGM
24FEN1
]]>Agencies
[Federal Register Volume 82, Number 36 (Friday, February 24, 2017)]
[Notices]
[Pages 11536-11538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03637]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-890]
Emulsion Styrene-Butadiene Rubber From the Republic of Korea:
Preliminary Affirmative Determination of Sales at Less Than Fair Value,
Affirmative Determination of Critical Circumstances, in Part,
Postponement of Final Determination, and Extension of Provisional
Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that emulsion styrene-butadiene rubber (ESB rubber) from the
Republic of Korea (Korea) is being, or is likely to be, sold in the
United States at less than fair value (LTFV). The period of
investigation (POI) is July 1, 2015, through June 30, 2016.
DATES: Effective February 24, 2017.
FOR FURTHER INFORMATION CONTACT: Carrie Bethea or Kabir Archuletta, 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) 482-1491 or (202)
482-2593, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). The Department
published the notice of initiation of this investigation on August 19,
2016.\1\ The Department postponed the preliminary determination of this
investigation until February 16, 2017.\2\ For a complete description of
the events that followed the initiation of this investigation, see the
Preliminary Decision Memorandum.\3\ A list of topics included in the
Preliminary Decision Memorandum is included as Appendix II to this
notice. The Preliminary 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 https://access.trade.gov,
and to all parties in the Central Records Unit, room B8024 of the main
Department of Commerce building. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum
and the electronic version are identical in content.
---------------------------------------------------------------------------
\1\ See Emulsion Styrene-Butadiene Rubber from Brazil, the
Republic of Korea, Mexico, and Poland: Initiation of Less Than Fair
Value Investigations, 81 FR 55438 (August 19, 2016) (Initiation
Notice).
\2\ See Emulsion Styrene-Butadiene Rubber from Brazil, the
Republic of Korea, Mexico, and Poland: Postponement of Preliminary
Determination of Sales at Less Than Fair Value Investigations, 81 FR
85208 (November 25, 2016).
\3\ See Memorandum to Ronald K. Lorentzen, Acting Assistant
Secretary for Enforcement and Compliance, from Gary Taverman,
Associate Deputy Assistant Secretary for Antidumping and
Countervailing Duty Operations, entitled, ``Decision Memorandum for
the Preliminary Determination in the Less Than Fair Value
Investigation of Emulsion Styrene-Butadiene Rubber from Korea,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The product covered by this investigation is ESB rubber from Korea.
For a complete description of the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the preamble to the Department's regulations,\4\
the Initiation Notice set aside a period of time for interested parties
to raise issues regarding product coverage (i.e., scope).\5\ No
interested party commented on the scope of the investigation as it
appeared in the Initiation Notice. The Department is not preliminarily
modifying the scope language as it appeared in the Initiation Notice.
---------------------------------------------------------------------------
\4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
\5\ See Initiation Notice.
---------------------------------------------------------------------------
Methodology
The Department is conducting this investigation in accordance with
section 731 of the Act. The Department has calculated export prices in
accordance with section 772(a) of the Act. Constructed export prices
have been calculated in accordance with section 773 of the Act. Normal
value (NV) For a full description of the methodology underlying our
preliminary conclusions, see the Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 733(e) of the Act and 19 CFR 351.206, we
preliminarily find that critical circumstances do not exist for LG
Chem, Ltd. (LG Chem). However, because Daewoo International Corporation
(Daewoo) and Kumho Petrochemical Co, Ltd (Kumho) did not respond to the
Department's questionnaires, we have determined pursuant to sections
776(a) and (b) of the Act, that critical circumstances exist for both
Daewoo and Kumho as adverse facts available (AFA). For a full
description of the methodology and results of our critical
circumstances analysis, see the Preliminary Decision Memorandum.
Adverse Facts Available
Daewoo and Kumho were each selected as a mandatory respondent, but
each failed to respond to the Department's questionnaires. Accordingly,
we preliminarily determine to based their dumping margins on AFA, in
accordance with sections 776(a) and (b) of the Act and 19 CFR 351.308.
As AFA, we applied the
[[Page 11537]]
highest dumping margin calculated for Korean exports of subject
merchandise contained in the petition,\6\ 44.30 percent. For further
discussion, see the Preliminary Decision Memorandum.
---------------------------------------------------------------------------
\6\ See the Petitions for the Imposition of Antidumping Duties
on Emulsion Styrene Butadiene Rubber from Brazil, the Republic of
Korea, Mexico, and Poland, dated July 21, 2016.
---------------------------------------------------------------------------
All-Others Rate
Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that
in the preliminary determination the Department shall determine an
estimated all-others rate for all exporters and producers not
individually investigated, which 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.
The Department calculated a company-specific rate for LG Chem that
is not zero, de minimis or determined entirely under section 776 of the
Act. However, the Department is preliminarily applying AFA, pursuant to
section 776(a) and (b) of the Act, to Daewoo and Kumho. Therefore, for
purposes of determining the ``all-others'' rate and pursuant to section
735(c)(5)(A) of the Act, we are using the weighted-average dumping
margin calculated for LG Chem as the estimated weighted-average dumping
margin assigned to all other producers and exporters of the merchandise
under consideration.
Preliminary Determination
The Department preliminarily determines that the following
weighted-average dumping margins exist:
------------------------------------------------------------------------
Weighted-
average
Exporter/producer margins
(percent)
------------------------------------------------------------------------
LG Chem, Ltd................................................ 11.63
Daewoo International Corporation............................ 44.30
Kumho Petrochemical Co, Ltd................................. 44.30
All-Others.................................................. 11.63
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, the Department
will direct U.S. Customs and Border Protection (CBP) to suspend
liquidation of subject merchandise as described in the scope of the
investigation section entered, or withdrawn from warehouse, for
consumption on or after the date of publication of this notice in the
Federal Register, as discussed below. Further, pursuant to section
733(d)(1)(B) of the Act and 19 CFR 351.205(d), the Department will
instruct CBP to require a cash deposit equal to the weighted-average
amount by which normal value exceeds U.S. price. These suspension of
liquidation instructions will remain in effect until further notice.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered, or (b) the date on which notice of
initiation of the investigation was published. The Department
preliminarily finds that critical circumstances exist for imports of
subject merchandise produced and exported by Daewoo and Kumho. In
accordance with section 733(e)(2)(A) of the Act, the suspension of
liquidation shall apply to unliquidated entries of merchandise from the
exporters identified in this paragraph that were entered, or withdrawn
from warehouse, for consumption on or after the date which is 90 days
before the publication of this notice.
Disclosure
We intend to disclose the calculations performed to interested
parties in this proceeding within five days of the date of publication
of this notice in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i) of the Act, we intend to verify
information relied upon in making our final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the final verification report is issued in
this proceeding, and rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than five days after the deadline
date for case briefs.\7\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this proceeding
are encouraged to submit with each argument: (1) A statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities.
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\7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made, the
Department intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Section 351.210(e)(2) of the Department's regulations
requires that requests by respondents for postponement of a final
antidumping determination be accompanied by a request for extension of
provisional measures from a four-month period to a period not more than
six months in duration.
On January 10, 2017, pursuant to 19 CFR 351.210(e), LG Chem
requested that the Department postpone the final determination and that
provisional measures be extended to a period not to exceed six
months.\8\ In accordance with section 735(a)(2)(A) of the Act and 19
CFR 351.210(b)(2)(ii), because: (1) Our preliminary determination is
affirmative; (2) the requesting exporter accounts for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, we are postponing the final determination and
extending the provisional measures from a four-month
[[Page 11538]]
period to a period not greater than six months. Accordingly, we will
make our final determination no later than 135 days after the date of
publication of this preliminary determination.
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\8\ See Letter to the Secretary of Commerce from LG Chem,
entitled, ``LG Chem's Request for Extension of Final Determination
and Provisional Measures,'' dated January 10, 2017.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, we are notifying the
International Trade Commission (ITC) of our preliminary affirmative
determination. If our final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 days after our final determination
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry.
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: February 16, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
For purposes of this investigation, the product covered is cold-
polymerized emulsion styrene-butadiene rubber (ESB rubber). The
scope of the investigation includes, but is not limited to, ESB
rubber in primary forms, bales, granules, crumbs, pellets, powders,
plates, sheets, strip, etc. ESB rubber consists of non-pigmented
rubbers and oil-extended non-pigmented rubbers, both of which
contain at least one percent of organic acids from the emulsion
polymerization process.
ESB rubber is produced and sold in accordance with a generally
accepted set of product specifications issued by the International
Institute of Synthetic Rubber Producers (IISRP). The scope of the
investigation covers grades of ESB rubber included in the IISRP 1500
and 1700 series of synthetic rubbers. The 1500 grades are light in
color and are often described as ``Clear'' or ``White Rubber.'' The
1700 grades are oil-extended and thus darker in color, and are often
called ``Brown Rubber.''
Specifically excluded from the scope of this investigation are
products which are manufactured by blending ESB rubber with other
polymers, high styrene resin master batch, carbon black master batch
(i.e., IISRP 1600 series and 1800 series) and latex (an intermediate
product).
The products subject to this investigation are currently
classifiable under subheadings 4002.19.0015 and 4002.19.0019 of the
Harmonized Tariff Schedule of the United States (HTSUS). ESB rubber
is described by Chemical Abstract Services (CAS) Registry No. 9003-
55-8. This CAS number also refers to other types of styrene
butadiene rubber. Although the HTSUS subheadings and CAS registry
number are provided for convenience and customs purposes, the
written description of the scope of this investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
A. Determination of the Comparison Method
B. Results of the Differential Pricing Analysis
VI. Date of Sale
VII. Product Comparisons
VIII. Export Price and Constructed Export Price
IX. Normal Value
A. Home Market Viability
B. Level of Trade
C. Cost of Production (COP) Analysis
1. Calculation of COP
2. Test of Comparison Market Sales Prices
3. Results of the COP Test
D. Calculation of NV Based on Comparison Market Prices
X. Application of Facts Available and Use of Adverse Inference
A. Application of Facts Available
B. Use of Adverse Inference
C. Selection and Corroboration of the AFA Rate
XI. Preliminary Affirmative Determination of Critical Circumstances,
In Part
A. Legal Framework
B. Critical Circumstances Analysis
C. Analysis
XII. Currency Conversion
XIII. Conclusion
[FR Doc. 2017-03637 Filed 2-23-17; 8:45 am]
BILLING CODE 3510-DS-P
