Acetone From Belgium, the Republic of Korea, the Kingdom of Saudi Arabia, Singapore, the Republic of South Africa, and Spain: Initiation of Less-Than-Fair-Value Investigations, 9755-9761 [2019-05004]
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Federal Register / Vol. 84, No. 52 / Monday, March 18, 2019 / Notices
for consumption on or after the date of
publication, as provided by section
751(a)(2) of the Act: (1) The cash deposit
rate for the respondents noted above
will be the rate established in the final
results of this administrative review; (2)
for merchandise exported by
manufacturers or exporters not covered
in this administrative review but
covered in a prior segment of the
proceeding, the cash deposit rate will
continue to be the company-specific rate
published for the most recently
completed segment of this proceeding;
(3) if the exporter is not a firm covered
in this review, a prior review, or the
original investigation, but the producer
is, the cash deposit rate will be the rate
established for the most recently
completed segment of this proceeding
for the producer of the subject
merchandise; and (4) the cash deposit
rate for all other producers or exporters
will continue to be 2.66 percent, the allothers rate established in the
investigation.12 These cash deposit
requirements, when imposed, shall
remain in effect until further notice.
Notification to Importers Regarding the
Reimbursement of Duties
This notice also serves as a final
reminder to importers of their
responsibility under 19 CFR 351.402(f)
to file a certificate regarding the
reimbursement of antidumping duties
prior to liquidation of the relevant
entries during the POR. Failure to
comply with this requirement could
result in Commerce’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of doubled antidumping duties.
Administrative Protective Order
This notice also serves as a reminder
to parties subject to administrative
protective orders (APO) of their
responsibility concerning the return or
destruction 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 the terms of an
APO is a sanctionable violation.
We are issuing and publishing this
notice in accordance with sections
751(a)(1) and 777(i) of the Act and 19
CFR 351.221(b)(5).
12 See Certain Steel Nails from the Republic of
Korea: Final Determination of Sales at Less Than
Fair Value, 80 FR 28955 (May 20, 2015).
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Dated: March 13, 2019.
Gary Taverman,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations,
performing the non-exclusive functions and
duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. List of Issues
III. Background
IV. Scope of the Order
V. Changes Since the Preliminary Results
VI. Discussion of the Issues
Inmax-Specific Issues
Comment 1: Revision of General and
Administrative Expenses
Region-Specific Issues
Comment 2: Application of the Transactions
Disregarded Analysis
(a) Heat Treatment
(b) Electroplating
(c) Clerical Errors
VII. Recommendation
[FR Doc. 2019–05002 Filed 3–15–19; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–423–814, A–580–899, A–517–805, A–559–
808, A–791–824, A–469–819]
Acetone From Belgium, the Republic
of Korea, the Kingdom of Saudi Arabia,
Singapore, the Republic of South
Africa, and Spain: Initiation of LessThan-Fair-Value Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable March 11, 2019.
FOR FURTHER INFORMATION CONTACT: Alex
Cipolla at (202) 482–4956 (Belgium);
Sean Carey at (202) 482–3964 (the
Republic of Korea (Korea)); Michael J.
Heaney or Heather Lui at (202) 482–
4475 or (202) 482–0016, respectively
(the Kingdom of Saudi Arabia (Saudi
Arabia)); Moses Y. Song or Joshua A.
DeMoss at (202) 482–7885 or (202) 482–
3362, respectively (Singapore); Charlotte
Baskin-Gerwitz at (202) 482–4880 (the
Republic of South Africa (South
Africa)); and John C. McGowan or
Preston N. Cox at (202) 482–3019 or
(202) 482–5041, respectively (Spain);
AD/CVD Operations, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
AGENCY:
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9755
The Petitions
On February 19, 2019, the U.S.
Department of Commerce (Commerce)
received antidumping duty (AD)
Petitions concerning imports of acetone
from Belgium, Korea, Saudi Arabia,
Singapore, South Africa, and Spain,
filed in proper form on behalf of the
Coalition for Acetone Fair Trade (the
petitioner).1 The petitioner is a coalition
consisting of domestic producers of
acetone.2
Between February 22 and 28, 2019,
Commerce requested supplemental
information pertaining to certain aspects
of the Petitions.3 The petitioner filed
responses to these requests on February
26, 2019 and March 4, 2019,
1 See Petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping on Imports of Acetone
from Belgium, Korea, Saudi Arabia, Singapore,
South Africa and Spain,’’ dated February 19, 2019
(the Petitions).
2 The Coalition for Acetone Fair Trade includes
AdvanSix Inc., Altivia Petrochemicals, LLC, and
Olin Corporation. See Volume I of the Petitions, at
1–2.
3 See Commerce’s Letters, ‘‘Petitions for the
Imposition of Antidumping Duties on Imports of
Acetone from Belgium, Korea, Saudi Arabia,
Singapore, South Africa, and Spain: Supplemental
Questions’’ (General Issues Supplemental
Questionnaire); ‘‘Petition for the Imposition of
Antidumping Duties on Imports of Acetone from
Belgium: Supplemental Questions’’ (Belgium
Supplemental Questionnaire); ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Acetone from Korea: Supplemental Questions’’
(Korea Supplemental Questionnaire); ‘‘Petition for
the Imposition of Antidumping Duties on Imports
of Acetone from Saudi Arabia: Supplemental
Questions’’ (Saudi Arabia Supplemental
Questionnaire); ‘‘Petition for the Imposition of
Antidumping Duties on Imports of Acetone from
Singapore: Supplemental Questions’’ (Singapore
Supplemental Questionnaire); ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Acetone from South Africa: Supplemental
Questions’’ (South Africa Supplemental
Questionnaire); and ‘‘Petition for the Imposition of
Antidumping Duties on Imports of Acetone from
Spain: Supplemental Questions’’ (Spain
Supplemental Questionnaire). All of these
documents are dated February 22, 2019. See also
Commerce’s Letters, ‘‘Petitions for the Imposition of
Antidumping Duties on Acetone from Belgium,
Korea, Saudi Arabia, Singapore, South Africa, and
Spain: Phone Call with Counsel to the Petitioner
Regarding Scope’’ (Scope Supplemental
Questionnaire); ‘‘Petitions for the Imposition of
Antidumping Duties Acetone from Singapore:
Phone Call with Counsel to the Petitioner’’
(Singapore Second Supplemental Questionnaire);
‘‘Petitions for the Imposition of Antidumping
Duties Acetone from South Africa: Phone Call with
Counsel to the Petitioner’’ (South Africa Second
Supplemental Questionnaire); ‘‘Petitions for the
Imposition of Antidumping Duties Acetone from
Spain: Phone Call with Counsel to the Petitioner’’
(Spain Second Supplemental Questionnaire);
‘‘Petitions for the Imposition of Antidumping
Duties Acetone from Saudi Arabia: Phone Call with
Counsel to the Petitioner’’ (Saudi Second
Supplemental Questionnaire); and ‘‘Petition for the
Imposition of Antidumping Duties on Acetone from
Belgium: Phone Call with Counsel to the Petitioner’’
(Belgium Second Supplemental Questionnaire). All
of these documents are dated February 28, 2019.
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respectively.4 Also on March 4, 2019,
the petitioner submitted certain
revisions to the scope as requested by
Commerce.5
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of acetone from Belgium, Korea, Saudi
Arabia, Singapore, South Africa and
Spain are being, or are likely to be, sold
in the United States at less than fair
value (LTFV) within the meaning of
section 731 of the Act, and that such
imports are materially injuring, or
threatening material injury to, the
domestic industry producing acetone in
the United States. Consistent with
section 732(b)(1) of the Act, the
Petitions are accompanied by
information reasonably available to the
petitioner supporting its allegations.
Commerce finds that the petitioner
filed the Petitions on behalf of the
domestic industry because the
petitioner is a coalition of interested
parties as defined in section 771(9)(C)
and (F) of the Act. Commerce also finds
that the petitioner demonstrated
sufficient industry support with respect
to the initiation of the requested AD
investigations.6
4 See Petitioner’s Letters, ‘‘Acetone from Belgium,
Korea, Saudi Arabia, Singapore, South Africa, and
Spain/Petitioner’s Responses to Supplemental
Questions Regarding Volume I’’ (General Issues
Supplement); ‘‘Acetone from Belgium/Petitioner’s
Responses to Supplemental Questions Regarding
Volume II’’ (Belgium Supplement); ‘‘Acetone from
Korea/Petitioner’s Responses to Supplemental
Questions Regarding Volume III’’ (Korea
Supplement); ‘‘Acetone from Saudi Arabia/
Petitioner’s Responses to Supplemental Questions
Regarding Volume IV’’ (Saudi Arabia Supplement);
‘‘Acetone from Singapore/Petitioner’s Responses to
Supplemental Questions Regarding Volume V’’
(Singapore Supplement); ‘‘Acetone from South
Africa/Petitioner’s Responses to Supplemental
Questions Regarding Volume VI’’ (South Africa
Supplement); and ‘‘Acetone from Spain: Response
to Questionnaire on Antidumping Petition/
Petitioner’s Responses to Supplemental Questions
Regarding Volume VII.’’ (Spain Supplement). All of
these documents are dated February 26, 2019. See
also Petitioner’s Letters, ‘‘Acetone from Belgium/
Petitioner’s Responses to Second Supplemental
Questions Regarding Volume II’’ (Second Belgium
Supplement); ‘‘Acetone from Singapore/Petitioner’s
Responses to Second Supplemental Questions
Regarding Volume II’’ (Second Singapore
Supplement); ‘‘Acetone from South Africa/
Petitioner’s Responses to Second Supplemental
Questions Regarding Volume VI’’ (Second South
Africa Supplement); Petitioner’s Letter, ‘‘Acetone
from Spain: Second Supplemental Response to
Antidumping Petition’’ (Second Spain
Supplement). All of these documents are dated
March 4, 2019.
5 See Petitioner’s Letter, ‘‘Acetone from Belgium
Korea, Saudi Arabia, Singapore, South Africa, and
Spain/Petitioner’s Responses to Supplemental
Questions Regarding Scope’’ (Scope Supplement),
dated March 4, 2019.
6 See the ‘‘Determination of Industry Support for
the Petitions’’ section, infra.
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Periods of Investigation
Because the Petitions were filed on
February 19, 2019, the period of
investigation (POI) for each of the
investigations is January 1, 2018,
through December 31, 2018.7
Scope of the Investigations
The product covered by these
investigations is acetone from Belgium,
Korea, Saudi Arabia, Singapore, South
Africa and Spain. For a full description
of the scope of these investigations, see
the Appendix to this notice.
Comments on Scope of the
Investigations
During our review of the Petitions,
Commerce issued questions to, and
received responses from, the petitioner
pertaining to the proposed scope to
ensure that the scope language in the
Petitions is an accurate reflection of the
products for which the domestic
industry is seeking relief.8 As a result of
these exchanges, the scope of the
Petitions was modified to clarify the
description of merchandise covered by
the Petitions. The description of the
merchandise covered by these
initiations, as described in the
Appendix to this notice, reflects these
clarifications.
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(scope).9 Commerce will consider all
comments received from interested
parties and, if necessary, will consult
with interested parties prior to the
issuance of the preliminary
determinations. If scope comments
include factual information,10 all such
factual information should be limited to
public information. To facilitate
preparation of its questionnaires,
Commerce requests that all interested
parties submit such comments by 5:00
p.m. Eastern Time (ET) on April 1, 2019,
which is the next business day after 20
calendar days from the signature date of
this notice.11 Any rebuttal comments,
which may include factual information,
must be filed by 5:00 p.m. ET on April
11, 2019, which is 10 calendar days
from the initial comments deadline.
Commerce requests that any factual
information parties consider relevant to
the scope of the investigations be
7 See
19 CFR 351.204(b)(1).
General Issues Supplemental Questionnaire,
at 2–4 and Exhibit I–S1; see also Scope
Supplemental Questionnaire, at 2 and Exhibit I–S4.
9 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
10 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
11 See 19 CFR 351.303(b).
8 See
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submitted during this period. However,
if a party subsequently finds that
additional factual information
pertaining to the scope of the
investigations may be relevant, the party
may contact Commerce and request
permission to submit the additional
information. All such submissions must
be filed on the records of each of the
concurrent AD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically using Enforcement
and Compliance’s Antidumping Duty
and Countervailing Duty Centralized
Electronic Service System (ACCESS).12
An electronically filed document must
be received successfully in its entirety
by the time and date it is due.
Documents exempted from the
electronic submission requirements
must be filed manually (i.e., in paper
form) with Enforcement and
Compliance’s APO/Dockets Unit, Room
18022, U.S. Department of Commerce,
1401 Constitution Avenue NW,
Washington, DC 20230, and stamped
with the date and time of receipt by the
applicable deadlines.
Comments on Product Characteristics
for AD Questionnaires
Commerce is providing interested
parties an opportunity to comment on
the appropriate physical characteristics
of acetone to be reported in response to
Commerce’s AD questionnaires. This
information will be used to identify the
key physical characteristics of the
merchandise under consideration in
order to report the relevant costs of
production accurately as well as to
develop appropriate productcomparison criteria.
Interested parties may provide any
information or comments that they feel
are relevant to the development of an
accurate list of physical characteristics.
Specifically, they may provide
comments as to which characteristics
are appropriate to use as: (1) General
product characteristics, and (2) productcomparison criteria. We note that it is
not always appropriate to use all
product characteristics as product
comparison criteria. We base product
comparison criteria on meaningful
12 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
access.trade.gov/help/Handbook%20on
%20Electronic%20Filling%20Procedures.pdf.
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commercial differences among products.
In other words, although there may be
some physical product characteristics
utilized by manufacturers to describe
acetone, it may be that only a select few
product characteristics take into account
commercially meaningful physical
characteristics. In addition, interested
parties may comment on the order in
which the physical characteristics
should be used in matching products.
Generally, Commerce attempts to list
the most important physical
characteristics first and the least
important characteristics last.
In order to consider the suggestions of
interested parties in developing and
issuing the AD questionnaires, all
product characteristics comments must
be filed by 5:00 p.m. ET on April 1,
2019, which is the next business day
after 20 calendar days from the
signature date of this notice.13 Any
rebuttal comments must be filed by 5:00
p.m. ET on April 11, 2019. All
comments and submissions to
Commerce must be filed electronically
using ACCESS, as explained above, on
the records of the Belgium, Korea, Saudi
Arabia, Singapore, South Africa and
Spain LTFV investigations.
Determination of Industry Support for
the Petitions
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
Commerce shall: (i) Poll the industry or
rely on other information in order to
determine if there is support for the
petition, as required by subparagraph
(A); or (ii) determine industry support
using a statistically valid sampling
method to poll the ‘‘industry.’’
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers, as a
whole, of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
13 See
19 CFR 351.303(b).
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like product. The International Trade
Commission (ITC), which is responsible
for determining whether ‘‘the domestic
industry’’ has been injured, must also
determine what constitutes a domestic
like product in order to define the
industry. While both Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,14 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’s determination is subject to
limitations of time and information.
Although this may result in different
definitions of the like product, such
differences do not render the decision of
either agency contrary to law.15
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, the petitioner does not offer a
definition of the domestic like product
distinct from the scope of the
Petitions.16 Based on our analysis of the
information submitted on the record, we
have determined that acetone, as
defined in the scope, constitutes a single
domestic like product, and we have
analyzed industry support in terms of
that domestic like product.17
14 See
section 771(10) of the Act.
USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd.
v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d 865 F.2d 240 (Fed. Cir. 1989)).
16 See Volume I of the Petitions, at 12–15 and
Exhibits I–2 and I–6.
17 For a discussion of the domestic like product
analysis as applied to these cases and information
regarding industry support, see Antidumping Duty
Investigation Initiation Checklist: Acetone from
Belgium (Belgium AD Initiation Checklist), at
Attachment II, Analysis of Industry Support for the
Antidumping Duty Petitions Covering Acetone from
Belgium, Korea, Saudi Arabia, Singapore, South
Africa, and Spain (Attachment II); Antidumping
Duty Investigation Initiation Checklist: Acetone
from Korea (Korea AD Initiation Checklist), at
Attachment II; Antidumping Duty Investigation
Initiation Checklist: Acetone from Saudi Arabia
(Saudi Arabia AD Initiation Checklist), at
Attachment II; Antidumping Duty Investigation
Initiation Checklist: Acetone from Singapore
(Singapore AD Initiation Checklist), at Attachment
II; Antidumping Duty Investigation Initiation
Checklist: Acetone from South Africa (South Africa
AD Initiation Checklist), at Attachment II; and
Antidumping Duty Investigation Initiation
Checklist: Acetone from Spain (Spain AD Initiation
Checklist), at Attachment II. These checklists are
dated concurrently with this notice and on file
electronically via ACCESS. Access to documents
filed via ACCESS is also available in the Central
15 See
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In determining whether the petitioner
has standing under section 732(c)(4)(A)
of the Act, we considered the industry
support data contained in the Petitions
with reference to the domestic like
product as defined in the ‘‘Scope of the
Investigations,’’ in the Appendix to this
notice. To establish industry support,
the petitioner provided its own
production of the domestic like product
in 2018. In addition, the petitioner
provided a letter of support from the
United Steel, Paper & Forestry, Rubber,
Manufacturing, Energy, Allied
Industrial and Service Workers
International Union (USW), which
represents workers at three U.S.
production facilities (AdvanSix,
LyondellBasell, and Shell Chemical).
The petitioner added the production of
the two producers not in the petitioning
coalition (LyondellBassell and Shell
Chemical) to the petitioner’s own
production data to calculate total
support for the Petitions. The petitioner
compared its own production plus the
production of the two additional
producers represented by the USW to
the estimated total production of the
domestic like product for the entire
domestic industry.18 We relied on data
the petitioner provided for purposes of
measuring industry support.19
Our review of the data provided in the
Petitions, the General Issues
Supplement, and other information
readily available to Commerce indicates
that the petitioner has established
industry support for the Petitions.20
First, the Petitions established support
from domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).21 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petitions
account for at least 25 percent of the
total production of the domestic like
Records Unit, Room B8024 of the main Department
of Commerce building.
18 See Volume I of the Petitions, at 2–4 and
Exhibits I–1 through I–5 and Exhibit I–29; see also
General Issues Supplement, at 5.
19 Id., at 2–4 and Exhibits I–1 through I–5 and
Exhibit I–29; see also General Issues Supplement,
at 5. For further discussion, see Attachment II of the
Belgium AD Initiation Checklist, Korea AD
Initiation Checklist, Saudi Arabia AD Initiation
Checklist, Singapore AD Initiation Checklist, South
Africa AD Initiation Checklist, and Spain AD
Initiation Checklist.
20 Id.
21 Id.; see also section 732(c)(4)(D) of the Act.
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product.22 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petitions
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petitions.23 Accordingly, Commerce
determines that the Petitions were filed
on behalf of the domestic industry
within the meaning of section 732(b)(1)
of the Act.
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at LTFV. In addition,
the petitioner alleges that subject
imports exceed the negligibility
threshold provided for under section
771(24)(A) of the Act.24
The petitioner contends that the
industry’s injured condition is
illustrated by a significant and
increasing volume of subject imports;
reduced market share; underselling and
price depression or suppression; a
decline in the domestic industry’s
financial performance; and lost sales
and revenues.25 We have assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, causation, negligibility,
as well as cumulation, and we have
determined that these allegations are
properly supported by adequate
evidence, and meet the statutory
requirements for initiation.26
Allegations of Sales at Less Than Fair
Value
The following is a description of the
allegations of sales at LTFV upon which
Commerce based its decision to initiate
AD investigations of imports of acetone
from Belgium, Korea, Saudi Arabia,
Singapore, South Africa and Spain. The
22 See
Attachment II of the Belgium AD Initiation
Checklist, Korea AD Initiation Checklist, Saudi
Arabia AD Initiation Checklist, Singapore AD
Initiation Checklist, South Africa AD Initiation
Checklist, and Spain AD Initiation Checklist.
23 Id.
24 See Volume I of the Petitions, at 19–20 and
Exhibit I–16.
25 Id., at 19–25 and Exhibits I–12 through I–13,
and I–16 through I–20.
26 See Belgium AD Initiation Checklist, at
Attachment III; Korea AD Initiation Checklist, at
Attachment III; Saudi Arabia AD Initiation
Checklist, at Attachment III; Singapore AD
Initiation Checklist, at Attachment III; South Africa
AD Initiation Checklist, at Attachment III; and
Spain AD Initiation Checklist, at Attachment III.
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sources of data for the deductions and
adjustments relating to U.S. price and
normal value (NV) are discussed in
greater detail in the country-specific
initiation checklists.
Second, the petitioner relied on AUVs
of publicly available U.S. import data
from Spain to establish EP.38
Export Price
For Belgium, the petitioner based
export price (EP) on two methods.27
First, the petitioner used import data to
determine average unit values (AUVs) of
imports of acetone from Belgium.28
Second, the petitioner was able to match
individual shipments of acetone
identified in the publicly available
shipment data to individual entries of
acetone in publicly available import
data to determine the shipper,
consignee, and AUV of specific
shipments.29
For Korea and Singapore, the
petitioner based EP on three methods.30
First, the petitioner used publicly
available customs data to determine
AUV of imports of acetone from Korea
and Singapore.31 Second, the petitioner
matched individual shipments of goods
identified in publicly available import
data from Korea and Singapore into the
United States with individual entries of
acetone in publicly available customs
data, to determine transaction-specific
AUVs.32 Lastly, the petitioner used
offers from a Korean and Singaporean
producer to a U.S. customer to establish
EP.33
For Saudi Arabia, the petitioner based
EP on AUVs which were based on
publicly available import data.34
For South Africa, the petitioner based
EP on two methodologies—the first
method relied on official U.S. Customs
statistics to determine the AUV of
imports of acetone from South Africa;
the second method involved matching
individual shipments of goods
identified in Custom and Border
Protection’s Automated Manifest
System (AMS) to individual entries of
acetone in the official U.S. Customs
statistics to determine the AUV of
specific shipments.35
For Spain, the petitioner based EP on
two methodologies.36 First, the
petitioner based EP on pricing
information for acetone produced in,
and exported from, Spain and sold or
offered for sale in the United States.37
The petitioner obtained home market
prices for Korea, Singapore, and South
Africa and third country prices for
Belgium, but these prices were below
cost of production. Consequently, the
petitioner, relied on CV as the basis for
NV. For further discussion of CV, see
the section ‘‘Normal Value Based on
Constructed Value’’ below.
For Saudi Arabia and Spain, the
petitioner was unable to obtain reliable
information relating to the prices
charged for acetone produced and sold
in Saudi Arabia and Spain or third
country sales prices for acetone
produced in these countries.39 Because
home market prices and third country
prices were not reasonably available, the
petitioner calculated NV based on
constructed value (CV). For further
discussion of CV, see the section
‘‘Normal Value Based on Constructed
Value’’ below.40
27 See
Belgium Initiation Checklist.
28 Id.
29 Id.
30 See
Korea and Singapore Initiation Checklists.
31 Id.
32 Id.
33 Id.
34 See
Saudi Arabia Initiation Checklist.
South Africa AD Initiation Checklist.
36 See Spain Initiation Checklist.
37 Id.
35 See
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Normal Value
Normal Value Based on Constructed
Value
As noted above, the petitioner
obtained home market prices for Korea,
Singapore, and South Africa and third
country prices for Belgium, but
demonstrated that these prices were
below the COP; therefore, the petitioner
based NV on CV pursuant to section
773(a)(4) of the Act.41 The petitioner
was unable to obtain information
relating to the prices charged for acetone
in Saudi Arabia and Spain, or any third
country market; accordingly, the
petitioner also based NV on CV.42
Pursuant to section 773(e) of the Act, CV
consists of the cost of manufacturing
(COM), SG&A expenses, financial
expenses, profit, and packing expenses.
The petitioner calculated the COM
based on domestic producers’ input
FOPs and usage rates for raw materials,
38 Id.
39 See Saudi Arabia and Spain AD Initiation
Checklists.
40 In accordance with section 505(a) of the Trade
Preferences Extension Act of 2015, amending
section 773(b)(2) of the Act, for this investigation,
Commerce will request information necessary to
calculate the CV and cost of production (COP) to
determine whether there are reasonable grounds to
believe or suspect that sales of the foreign like
product have been made at prices that represent
less than the COP of the product. Commerce no
longer requires a COP allegation to conduct this
analysis.
41 See Belgium AD Initiation Checklist; Singapore
AD Initiation Checklist; South Africa AD Initiation
Checklist; and South Korea AD Initiation Checklist.
42 See Saudi Arabia AD Initiation Checklist and
Spain AD Initiation Checklist.
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labor, and energy.43 The petitioner
valued the input FOPs using publicly
available data on costs specific to
Belgium, Singapore, South Africa,
Korea, Saudi Arabia, and Spain during
the proposed POI. Specifically, the
petitioner based the prices for raw
material inputs on publicly available
import data for Belgium, Singapore,
South Africa, Korea, Saudi Arabia, and
Spain.44 The prices for benzene and
propylene for South Africa were based
on the cost information from another
acetone producer. The petitioner valued
labor and energy costs using publicly
available sources for Belgium,
Singapore, South Africa, Korea, Saudi
Arabia, and Spain.45 The petitioner
calculated factory overhead, SG&A,
financial expenses, and profit for
Belgium, Singapore, South Africa,
Korea, Saudi Arabia, and Spain based
on the experience of a producer of
acetone from each of these countries.46
Fair Value Comparisons
Based on the data provided by the
petitioner, there is reason to believe that
imports of acetone from Belgium, Korea,
Saudi Arabia, Singapore, South Africa
and Spain are being, or are likely to be,
sold in the United States at LTFV. Based
on comparisons of EP to NV in
accordance with sections 772 and 773 of
the Act, the estimated dumping margins
for acetone for each of the countries
covered by this initiation are as follows:
(1) Belgium—43.14 to 73.69 percent; 47
(2) Korea—112.72 to 174.66 percent; 48
(3) Saudi Arabia—36.88 percent; 49 (4)
Singapore—14.52 to 131.75 percent; 50
(5) South Africa—214.09 to 414.92
percent; 51 and (6) Spain—102.97 and
171.81 percent.52
Initiation of LTFV Investigations
Based upon the examination of the
AD Petitions and supplemental
responses, we find that the Petitions
meet the requirements of section 732 of
the Act. Therefore, we are initiating AD
43 See Belgium AD Initiation Checklist; Singapore
AD Initiation Checklist; South Africa AD Initiation
Checklist; South Korea AD Initiation Checklist;
Saudi Arabia AD Initiation Checklist; and, Spain
AD Initiation Checklist. Because the petitioner’s
member producers in the United States purchase
cumene, whereas the Korean producers of acetone
produce their own cumene, the petitioner based the
input factors of production for cumene on a cumene
production facility located in a third country. See
Volume III of the Petitions, at Korea Exhibit III–3.
44 Id.
45 Id.
46 Id.
47 See Belgium AD Initiation Checklist.
48 See Korea AD Initiation Checklist.
49 See Saudi Arabia AD Initiation Checklist.
50 See Singapore AD Initiation Checklist.
51 See South Africa AD Initiation Checklist.
52 See Spain AD Initiation Checklist.
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investigations to determine whether
imports of acetone from Belgium, Korea,
Saudi Arabia, Singapore, South Africa
and Spain are being, or are likely to be,
sold in the United States at LTFV. In
accordance with section 733(b)(1)(A) of
the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our
preliminary determinations no later
than 140 days after the date of this
initiation.
Identification of Respondents
The petitioner named one producer in
Belgium (INEOS Phenol Belgium NV
(INEOS Phenol)),53 two producers in
Korea (Kumho P & B Chemicals, Inc.
(Kumho) and LG Chem, Ltd. (LG
Chem)),54 two producers in Saudi
Arabia (Rabigh Refining &
Petrochemical Company (Petro Rabigh)
and Saudi Kayan Petrochemical
Company (Saudi Kayan)),55 one
producer in Singapore (Mitsui Phenols
Singapore Pte Ltd (Mitsui)),56 one
producer in South Africa (Sasol Limited
(Sasol)),57 and two producers in Spain
(CEPSA Quimica, S.A. and IQOXE).58
Moreover, the petitioner provided
evidence in each of the Petitions
indicating that the named producers
were the only producers of acetone in
the subject countries.59
Although Commerce normally relies
on import data using United States
Customs and Border Protection (CBP)
import statistics to determine whether
to select a limited number of producers/
exporters for individual examination in
AD investigations, the petitioner has
identified only one or two producers in
each subject country and has
demonstrated that these are the sole
producers. We currently know of no
additional producers/exporters of
acetone from Belgium, Korea, Saudi
Arabia, Singapore, South Africa, or
Spain. Accordingly, Commerce intends
to examine all known producers in each
of the six investigations, as indicated by
the supporting information included in
the Petitions (described above).60 We
53 See
Volume I of the Petitions at Exhibit I–10.
54 Id.
55 Id.
56 Id.
57 Id. Sasol is identified in the petition by various
names including: Sasol Limited Company (Exhibit
VI–3), Sasol Limited Group (Exhibit VI–3), Sasol
Limited (Exhibit VI–3), and as Sasol Solvents Sasol
Limited (Exhibit I–10). Commerce intends to issue
one questionnaire addressed to all variations of the
company name under one cover letter.
58 Id.
59 See, e.g., Volume II of the Petitions at Exhibit
II–6; Volume VI of the Petitions at Exhibit VI–7. See
also Volume I of the Petitions at Exhibit I–2.
60 The Petitions also identify four possible trading
companies, with no indication of which countries’
acetone those companies might be trading/
exporting to the United States. However, because
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9759
invite interested parties to comment on
this issue. Such comments may include
factual information within the meaning
of 19 CFR 351.102(b)(21). Parties
wishing to comment must do so within
three business days of the publication of
this notice in the Federal Register.
Comments must be filed electronically
using ACCESS. An electronically filed
document must be received successfully
in its entirety by Commerce’s electronic
records system, ACCESS, by 5 p.m. ET
by the specified deadline.
Distribution of Copies of the Petitions
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version
of the Petitions have been provided to
the governments of Belgium, Korea,
Saudi Arabia, Singapore, South Africa,
and Spain via ACCESS. To the extent
practicable, we will attempt to provide
a copy of the public version of the
Petitions to each exporter named in the
Petitions, as provided under 19 CFR
351.203(c)(2).
ITC Notification
We will notify the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petitions were filed, whether there
is a reasonable indication that imports
of acetone from Belgium, Korea, Saudi
Arabia, Singapore, South Africa and
Spain are materially injuring or
threatening material injury to a U.S.
industry.61 A negative ITC
determination for any country will
result in the investigation being
terminated with respect to that
country.62 Otherwise, the investigations
will proceed according to statutory and
regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
described in (i)–(iv). 19 CFR 351.301(b)
the Petitions have identified the complete set of
producers in each country, there currently is no
need to issue questionnaires to the trading
companies/exporters as well.
61 See section 733(a) of the Act.
62 Id.
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requires any party, when submitting
factual information, to specify under
which subsection of 19 CFR
351.102(b)(21) the information is being
submitted 63 and, if the information is
submitted to rebut, clarify, or correct
factual information already on the
record, to provide an explanation
identifying the information already on
the record that the factual information
seeks to rebut, clarify, or correct.64 Time
limits for the submission of factual
information are addressed in 19 CFR
351.301, which provides specific time
limits based on the type of factual
information being submitted. Interested
parties should review the regulations
prior to submitting factual information
in these investigations.
Particular Market Situation Allegation
Section 504 of the Trade Preferences
Extension Act of 2015 amended the Act
by adding the concept of particular
market situation (PMS) for purposes of
CV under section 773(e) of the Act.65
Section 773(e) of the Act states that ‘‘if
a particular market situation exists such
that the cost of materials and fabrication
or other processing of any kind does not
accurately reflect the cost of production
in the ordinary course of trade, the
administering authority may use
another calculation methodology under
this subtitle or any other calculation
methodology.’’ When an interested
party submits a PMS allegation pursuant
to section 773(e) of the Act, Commerce
will respond to such a submission
consistent with 19 CFR 351.301(c)(2)(v).
If Commerce finds that a PMS exists
under section 773(e) of the Act, then it
will modify its dumping calculations
appropriately.
Neither section 773(e) of the Act nor
19 CFR 351.301(c)(2)(v) set a deadline
for the submission of PMS allegations
and supporting factual information.
However, in order to administer section
773(e) of the Act, Commerce must
receive PMS allegations and supporting
factual information with enough time to
consider the submission. Thus, should
an interested party wish to submit a
PMS allegation and supporting new
factual information pursuant to section
773(e) of the Act, it must do so no later
than 20 days after submission of a
respondent’s initial section D
questionnaire response.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
63 See
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Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.66
Parties must use the certification
formats provided in 19 CFR
351.303(g).67 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable revised certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305. On
January 22, 2008, Commerce published
Antidumping and Countervailing Duty
Proceedings: Documents Submission
Procedures; APO Procedures, 73 FR
3634 (January 22, 2008). Parties wishing
to participate in these investigations
should ensure that they meet the
requirements of these procedures (e.g.,
the filing of letters of appearance as
discussed at 19 CFR 351.103(d)).
66 See
section 782(b) of the Act.
also Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule). Answers to frequently asked
questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
67 See
19 CFR 351.301(b).
19 CFR 351.301(b)(2).
65 See Trade Preferences Extension Act of 2015,
Public Law 114–27, 129 Stat. 362 (2015).
64 See
time limit established under 19 CFR
351.301, or as otherwise specified by the
Secretary. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301.
For submissions that are due from
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
on the due date. Under certain
circumstances, we may elect to specify
a different time limit by which
extension requests will be considered
untimely for submissions which are due
from multiple parties simultaneously. In
such a case, we will inform parties in a
letter or memorandum setting forth the
deadline (including a specified time) by
which extension requests must be filed
to be considered timely. An extension
request must be made in a separate,
stand-alone submission; under limited
circumstances we will grant untimelyfiled requests for the extension of time
limits. Parties should review Extension
of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at
https://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to
submitting factual information in these
investigations.
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This notice is issued and published
pursuant to sections 732(c)(2) and 777(i)
of the Act, and 19 CFR 351.203(c).
Dated: March 11, 2019.
Christian Marsh,
Deputy Assistant Secretary for Enforcement
and Compliance.
Appendix
Scope of the Investigations
The merchandise covered by these
investigations is all grades of liquid or
aqueous acetone. Acetone is also known
under the International Union of Pure and
Applied Chemistry (IUPAC) name propan-2one. In addition to the IUPAC name, acetone
is also referred to as +-ketopropane (or betaketopropane), ketone propane, methyl
ketone, dimethyl ketone, DMK, dimethyl
carbonyl, propanone, 2-propanone, dimethyl
formaldehyde, pyroacetic acid, pyroacetic
ether, and pyroacetic spirit. Acetone is an
isomer of the chemical formula C3H6O, with
a specific molecular formula of CH3COCH3 or
(CH3)2CO.
The scope includes acetone that is
combined or mixed with other products,
including, but not limited to, isopropyl
alcohol, benzene, diethyl ether, methanol,
chloroform, and ethanol, regardless of the
quantity or value of the acetone component.
For such combined products, only the
acetone component is covered by the scope
of these investigations. Acetone that has been
combined with other products is included
within the scope, regardless of whether the
combining occurs in third countries.
Notwithstanding the foregoing language, an
acetone combination or mixture that is
transformed through a chemical reaction into
another product, such that, for example, the
acetone can no longer be separated from the
other products through a distillation process
(e.g., methyl methacrylate (MMA) or
Bisphenol A (BPA)) is excluded from these
investigations.
The scope also includes acetone that is
commingled with acetone from sources not
subject to these investigations, regardless of
the quantity or value of the subject acetone
component. Only the subject merchandise
component of such commingled products is
covered by the scope of these investigations.
Acetone that has been commingled with
acetone from sources not subject to these
investigations is included within the scope,
regardless of whether the combining occurs
in third countries. The acetone component
from sources not subject to these
investigations may still be subject to other
acetone investigations.
The Chemical Abstracts Service (CAS)
registry number for acetone is 67–64–1.
The merchandise covered by these
investigations is currently classifiable under
Harmonized Tariff Schedule of the United
States (HTSUS) subheadings 2914.11.1000
and 2914.11.5000. Acetone and acetone
combinations and mixtures covered by these
investigations may also enter under different
HTSUS subheadings, such as 2902.20.0000,
2902.70.0000, 2905.12.0050, or 2914.12.0000,
however, this list of HTSUS subheadings is
non-exhaustive. Although these HTSUS
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subheadings and CAS registry number are
provided for convenience and customs
purposes, the written description of the
scope of these investigations is dispositive.
[FR Doc. 2019–05004 Filed 3–15–19; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XG514
Atlantic Highly Migratory Species;
Atlantic Shark Management Measures;
2019 Research Fishery
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of public meeting.
AGENCY:
SUMMARY: On November 1, 2018, NMFS
published a notice inviting qualified
commercial shark permit holders to
submit applications to participate in the
2019 shark research fishery. The shark
research fishery allows for the collection
of fishery-dependent data for future
stock assessments and cooperative
research with commercial fishermen to
meet the shark research objectives of the
Agency. Every year, the permit terms
and permitted activities (e.g., number of
hooks and retention limits) specifically
authorized for selected participants in
the shark research fishery are designated
depending on the scientific and research
needs of the Agency, as well as the
number of NMFS-approved observers
available. In order to inform selected
participants of this year’s specific
permit requirements and ensure all
terms and conditions of the permit are
met, NMFS is holding a mandatory
meeting (via conference call) for
selected participants. The date and time
of that meeting is announced in this
notice.
A conference call will be held on
March 25, 2019.
ADDRESSES: A conference call will be
conducted. See SUPPLEMENTARY
INFORMATION for information on how to
access the conference call.
FOR FURTHER INFORMATION CONTACT:
Lauren Latchford at (301) 427–8503, or
Delisse Ortiz at (240) 681–9037.
SUPPLEMENTARY INFORMATION: The
Atlantic shark fisheries are managed
under the authority of the MagnusonStevens Fishery Conservation and
Management Act (Magnuson-Stevens
Act). The 2006 Consolidated Highly
Migratory species (HMS) Fishery
Management Plan (FMP) is
DATES:
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Jkt 247001
implemented by regulations at 50 CFR
part 635.
The final rule for Amendment 2 to the
2006 Consolidated HMS FMP (73 FR
35778, June 24, 2008, corrected at 73 FR
40658, July 15, 2008) established,
among other things, a shark research
fishery to maintain time-series data for
stock assessments and to meet NMFS’
research objectives. The shark research
fishery gathers important scientific data
and allows selected commercial
fishermen the opportunity to earn more
revenue from selling the sharks caught,
including sandbar sharks. Only the
commercial shark fishermen selected to
participate in the shark research fishery
are authorized to land/harvest sandbar
sharks subject to the sandbar quota
available each year. The 2019 sandbar
shark quota is 90.7 mt dw per year. The
selected shark research fishery
participants also have access to the
research large coastal shark, small
coastal shark, and pelagic shark quotas
subject to retention limits and quotas
per §§ 635.24 and 635.27, respectively.
On November 1, 2018 (83 FR 54917),
NMFS published a notice inviting
qualified commercial shark directed and
incidental permit holders to submit an
application to participate in the 2019
shark research fishery. NMFS received
11 applications and selected five
participants. In order to inform selected
participants of this year’s specific
permit requirements and to ensure all
terms and conditions of the permit are
met, per the requirements of § 635.32
(f)(4), NMFS is holding a mandatory
permit holder meeting via conference
call.
Conference Call Date, Time, and DialIn Number
The conference call will be held on
March 25, 2019, from 1:30 to 3:30 p.m.
(EDT). Participants and interested
parties should call 1–888–603–8940 and
use the passcode 3680172. This call is
mandatory for selected participants.
Selected participants who do not attend
will not be allowed to participate in the
shark research fishery. While the
conference call is mandatory for
selected participants, other interested
parties may call in and listen to the
discussion. Selected participants are
encouraged to invite their captain, crew,
or anyone else who may assist them in
meeting the terms and conditions of the
shark research fishery permit.
Dated: March 13, 2019.
Karen H. Abrams,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2019–04995 Filed 3–15–19; 8:45 am]
BILLING CODE 3510–22–P
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9761
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XG878
Marine Mammals; File No. 22387
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice; receipt of application.
AGENCY:
SUMMARY: Notice is hereby given that
Benjamin Hubert, Ph.D., New York
Genome Center, 101 Avenue of the
Americas, New York City, NY 10013,
has applied in due form for a permit to
import specimens from southern
hemisphere humpback whales
(Megaptera novaeangliae).
DATES: Written, telefaxed, or email
comments must be received on or before
April 17, 2019.
ADDRESSES: The application and related
documents are available for review by
selecting ‘‘Records Open for Public
Comment’’ from the ‘‘Features’’ box on
the Applications and Permits for
Protected Species (APPS) home page,
https://apps.nmfs.noaa.gov, and then
selecting File No. 22387 from the list of
available applications.
These documents are also available
upon written request or by appointment
in the Permits and Conservation
Division, Office of Protected Resources,
NMFS, 1315 East-West Highway, Room
13705, Silver Spring, MD 20910; phone
(301) 427–8401; fax (301) 713–0376.
Written comments on this application
should be submitted to the Chief,
Permits and Conservation Division, at
the address listed above. Comments may
also be submitted by facsimile to (301)
713–0376, or by email to
NMFS.Pr1Comments@noaa.gov. Please
include the File No. 22387 in the subject
line of the email comment.
Those individuals requesting a public
hearing should submit a written request
to the Chief, Permits and Conservation
Division at the address listed above. The
request should set forth the specific
reasons why a hearing on this
application would be appropriate.
FOR FURTHER INFORMATION CONTACT:
Jennifer Skidmore or Carrie Hubard,
(301) 427–8401.
SUPPLEMENTARY INFORMATION: The
subject permit is requested under the
authority of the Marine Mammal
Protection Act of 1972, as amended
(MMPA; 16 U.S.C. 1361 et seq.), and the
regulations governing the taking and
importing of marine mammals (50 CFR
part 216).
E:\FR\FM\18MRN1.SGM
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Agencies
[Federal Register Volume 84, Number 52 (Monday, March 18, 2019)]
[Notices]
[Pages 9755-9761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05004]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-423-814, A-580-899, A-517-805, A-559-808, A-791-824, A-469-819]
Acetone From Belgium, the Republic of Korea, the Kingdom of Saudi
Arabia, Singapore, the Republic of South Africa, and Spain: Initiation
of Less-Than-Fair-Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable March 11, 2019.
FOR FURTHER INFORMATION CONTACT: Alex Cipolla at (202) 482-4956
(Belgium); Sean Carey at (202) 482-3964 (the Republic of Korea
(Korea)); Michael J. Heaney or Heather Lui at (202) 482-4475 or (202)
482-0016, respectively (the Kingdom of Saudi Arabia (Saudi Arabia));
Moses Y. Song or Joshua A. DeMoss at (202) 482-7885 or (202) 482-3362,
respectively (Singapore); Charlotte Baskin-Gerwitz at (202) 482-4880
(the Republic of South Africa (South Africa)); and John C. McGowan or
Preston N. Cox at (202) 482-3019 or (202) 482-5041, respectively
(Spain); AD/CVD Operations, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On February 19, 2019, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) Petitions concerning imports of acetone
from Belgium, Korea, Saudi Arabia, Singapore, South Africa, and Spain,
filed in proper form on behalf of the Coalition for Acetone Fair Trade
(the petitioner).\1\ The petitioner is a coalition consisting of
domestic producers of acetone.\2\
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping on Imports of Acetone from Belgium, Korea, Saudi Arabia,
Singapore, South Africa and Spain,'' dated February 19, 2019 (the
Petitions).
\2\ The Coalition for Acetone Fair Trade includes AdvanSix Inc.,
Altivia Petrochemicals, LLC, and Olin Corporation. See Volume I of
the Petitions, at 1-2.
---------------------------------------------------------------------------
Between February 22 and 28, 2019, Commerce requested supplemental
information pertaining to certain aspects of the Petitions.\3\ The
petitioner filed responses to these requests on February 26, 2019 and
March 4, 2019,
[[Page 9756]]
respectively.\4\ Also on March 4, 2019, the petitioner submitted
certain revisions to the scope as requested by Commerce.\5\
---------------------------------------------------------------------------
\3\ See Commerce's Letters, ``Petitions for the Imposition of
Antidumping Duties on Imports of Acetone from Belgium, Korea, Saudi
Arabia, Singapore, South Africa, and Spain: Supplemental Questions''
(General Issues Supplemental Questionnaire); ``Petition for the
Imposition of Antidumping Duties on Imports of Acetone from Belgium:
Supplemental Questions'' (Belgium Supplemental Questionnaire);
``Petition for the Imposition of Antidumping Duties on Imports of
Acetone from Korea: Supplemental Questions'' (Korea Supplemental
Questionnaire); ``Petition for the Imposition of Antidumping Duties
on Imports of Acetone from Saudi Arabia: Supplemental Questions''
(Saudi Arabia Supplemental Questionnaire); ``Petition for the
Imposition of Antidumping Duties on Imports of Acetone from
Singapore: Supplemental Questions'' (Singapore Supplemental
Questionnaire); ``Petition for the Imposition of Antidumping Duties
on Imports of Acetone from South Africa: Supplemental Questions''
(South Africa Supplemental Questionnaire); and ``Petition for the
Imposition of Antidumping Duties on Imports of Acetone from Spain:
Supplemental Questions'' (Spain Supplemental Questionnaire). All of
these documents are dated February 22, 2019. See also Commerce's
Letters, ``Petitions for the Imposition of Antidumping Duties on
Acetone from Belgium, Korea, Saudi Arabia, Singapore, South Africa,
and Spain: Phone Call with Counsel to the Petitioner Regarding
Scope'' (Scope Supplemental Questionnaire); ``Petitions for the
Imposition of Antidumping Duties Acetone from Singapore: Phone Call
with Counsel to the Petitioner'' (Singapore Second Supplemental
Questionnaire); ``Petitions for the Imposition of Antidumping Duties
Acetone from South Africa: Phone Call with Counsel to the
Petitioner'' (South Africa Second Supplemental Questionnaire);
``Petitions for the Imposition of Antidumping Duties Acetone from
Spain: Phone Call with Counsel to the Petitioner'' (Spain Second
Supplemental Questionnaire); ``Petitions for the Imposition of
Antidumping Duties Acetone from Saudi Arabia: Phone Call with
Counsel to the Petitioner'' (Saudi Second Supplemental
Questionnaire); and ``Petition for the Imposition of Antidumping
Duties on Acetone from Belgium: Phone Call with Counsel to the
Petitioner'' (Belgium Second Supplemental Questionnaire). All of
these documents are dated February 28, 2019.
\4\ See Petitioner's Letters, ``Acetone from Belgium, Korea,
Saudi Arabia, Singapore, South Africa, and Spain/Petitioner's
Responses to Supplemental Questions Regarding Volume I'' (General
Issues Supplement); ``Acetone from Belgium/Petitioner's Responses to
Supplemental Questions Regarding Volume II'' (Belgium Supplement);
``Acetone from Korea/Petitioner's Responses to Supplemental
Questions Regarding Volume III'' (Korea Supplement); ``Acetone from
Saudi Arabia/Petitioner's Responses to Supplemental Questions
Regarding Volume IV'' (Saudi Arabia Supplement); ``Acetone from
Singapore/Petitioner's Responses to Supplemental Questions Regarding
Volume V'' (Singapore Supplement); ``Acetone from South Africa/
Petitioner's Responses to Supplemental Questions Regarding Volume
VI'' (South Africa Supplement); and ``Acetone from Spain: Response
to Questionnaire on Antidumping Petition/Petitioner's Responses to
Supplemental Questions Regarding Volume VII.'' (Spain Supplement).
All of these documents are dated February 26, 2019. See also
Petitioner's Letters, ``Acetone from Belgium/Petitioner's Responses
to Second Supplemental Questions Regarding Volume II'' (Second
Belgium Supplement); ``Acetone from Singapore/Petitioner's Responses
to Second Supplemental Questions Regarding Volume II'' (Second
Singapore Supplement); ``Acetone from South Africa/Petitioner's
Responses to Second Supplemental Questions Regarding Volume VI''
(Second South Africa Supplement); Petitioner's Letter, ``Acetone
from Spain: Second Supplemental Response to Antidumping Petition''
(Second Spain Supplement). All of these documents are dated March 4,
2019.
\5\ See Petitioner's Letter, ``Acetone from Belgium Korea, Saudi
Arabia, Singapore, South Africa, and Spain/Petitioner's Responses to
Supplemental Questions Regarding Scope'' (Scope Supplement), dated
March 4, 2019.
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of acetone from
Belgium, Korea, Saudi Arabia, Singapore, South Africa and Spain are
being, or are likely to be, sold in the United States at less than fair
value (LTFV) within the meaning of section 731 of the Act, and that
such imports are materially injuring, or threatening material injury
to, the domestic industry producing acetone in the United States.
Consistent with section 732(b)(1) of the Act, the Petitions are
accompanied by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the Petitions on behalf of
the domestic industry because the petitioner is a coalition of
interested parties as defined in section 771(9)(C) and (F) of the Act.
Commerce also finds that the petitioner demonstrated sufficient
industry support with respect to the initiation of the requested AD
investigations.\6\
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\6\ See the ``Determination of Industry Support for the
Petitions'' section, infra.
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Periods of Investigation
Because the Petitions were filed on February 19, 2019, the period
of investigation (POI) for each of the investigations is January 1,
2018, through December 31, 2018.\7\
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\7\ See 19 CFR 351.204(b)(1).
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Scope of the Investigations
The product covered by these investigations is acetone from
Belgium, Korea, Saudi Arabia, Singapore, South Africa and Spain. For a
full description of the scope of these investigations, see the Appendix
to this notice.
Comments on Scope of the Investigations
During our review of the Petitions, Commerce issued questions to,
and received responses from, the petitioner pertaining to the proposed
scope to ensure that the scope language in the Petitions is an accurate
reflection of the products for which the domestic industry is seeking
relief.\8\ As a result of these exchanges, the scope of the Petitions
was modified to clarify the description of merchandise covered by the
Petitions. The description of the merchandise covered by these
initiations, as described in the Appendix to this notice, reflects
these clarifications.
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\8\ See General Issues Supplemental Questionnaire, at 2-4 and
Exhibit I-S1; see also Scope Supplemental Questionnaire, at 2 and
Exhibit I-S4.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (scope).\9\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information,\10\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on April 1, 2019, which is the next business day after 20 calendar
days from the signature date of this notice.\11\ Any rebuttal comments,
which may include factual information, must be filed by 5:00 p.m. ET on
April 11, 2019, which is 10 calendar days from the initial comments
deadline.
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\9\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\11\ See 19 CFR 351.303(b).
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Commerce requests that any factual information parties consider
relevant to the scope of the investigations be submitted during this
period. However, if a party subsequently finds that additional factual
information pertaining to the scope of the investigations may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All such submissions must be filed
on the records of each of the concurrent AD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\12\ An electronically
filed document must be received successfully in its entirety by the
time and date it is due. Documents exempted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230, and stamped with the date and time of receipt by the applicable
deadlines.
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\12\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/help.aspx and a
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of acetone to be reported
in response to Commerce's AD questionnaires. This information will be
used to identify the key physical characteristics of the merchandise
under consideration in order to report the relevant costs of production
accurately as well as to develop appropriate product-comparison
criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics, and (2) product-comparison criteria. We note that it
is not always appropriate to use all product characteristics as product
comparison criteria. We base product comparison criteria on meaningful
[[Page 9757]]
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe acetone, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, Commerce attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all product
characteristics comments must be filed by 5:00 p.m. ET on April 1,
2019, which is the next business day after 20 calendar days from the
signature date of this notice.\13\ Any rebuttal comments must be filed
by 5:00 p.m. ET on April 11, 2019. All comments and submissions to
Commerce must be filed electronically using ACCESS, as explained above,
on the records of the Belgium, Korea, Saudi Arabia, Singapore, South
Africa and Spain LTFV investigations.
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\13\ See 19 CFR 351.303(b).
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Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers, as a whole, of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\14\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\15\
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\14\ See section 771(10) of the Act.
\15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the Petitions.\16\ Based on our analysis of the information
submitted on the record, we have determined that acetone, as defined in
the scope, constitutes a single domestic like product, and we have
analyzed industry support in terms of that domestic like product.\17\
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\16\ See Volume I of the Petitions, at 12-15 and Exhibits I-2
and I-6.
\17\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Antidumping Duty Investigation Initiation Checklist: Acetone
from Belgium (Belgium AD Initiation Checklist), at Attachment II,
Analysis of Industry Support for the Antidumping Duty Petitions
Covering Acetone from Belgium, Korea, Saudi Arabia, Singapore, South
Africa, and Spain (Attachment II); Antidumping Duty Investigation
Initiation Checklist: Acetone from Korea (Korea AD Initiation
Checklist), at Attachment II; Antidumping Duty Investigation
Initiation Checklist: Acetone from Saudi Arabia (Saudi Arabia AD
Initiation Checklist), at Attachment II; Antidumping Duty
Investigation Initiation Checklist: Acetone from Singapore
(Singapore AD Initiation Checklist), at Attachment II; Antidumping
Duty Investigation Initiation Checklist: Acetone from South Africa
(South Africa AD Initiation Checklist), at Attachment II; and
Antidumping Duty Investigation Initiation Checklist: Acetone from
Spain (Spain AD Initiation Checklist), at Attachment II. These
checklists are dated concurrently with this notice and on file
electronically via ACCESS. Access to documents filed via ACCESS is
also available in the Central Records Unit, Room B8024 of the main
Department of Commerce building.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in the Appendix to
this notice. To establish industry support, the petitioner provided its
own production of the domestic like product in 2018. In addition, the
petitioner provided a letter of support from the United Steel, Paper &
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service
Workers International Union (USW), which represents workers at three
U.S. production facilities (AdvanSix, LyondellBasell, and Shell
Chemical). The petitioner added the production of the two producers not
in the petitioning coalition (LyondellBassell and Shell Chemical) to
the petitioner's own production data to calculate total support for the
Petitions. The petitioner compared its own production plus the
production of the two additional producers represented by the USW to
the estimated total production of the domestic like product for the
entire domestic industry.\18\ We relied on data the petitioner provided
for purposes of measuring industry support.\19\
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\18\ See Volume I of the Petitions, at 2-4 and Exhibits I-1
through I-5 and Exhibit I-29; see also General Issues Supplement, at
5.
\19\ Id., at 2-4 and Exhibits I-1 through I-5 and Exhibit I-29;
see also General Issues Supplement, at 5. For further discussion,
see Attachment II of the Belgium AD Initiation Checklist, Korea AD
Initiation Checklist, Saudi Arabia AD Initiation Checklist,
Singapore AD Initiation Checklist, South Africa AD Initiation
Checklist, and Spain AD Initiation Checklist.
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Our review of the data provided in the Petitions, the General
Issues Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petitions.\20\ First, the Petitions established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\21\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
732(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petitions account for at least 25 percent of the total
production of the domestic like
[[Page 9758]]
product.\22\ Finally, the domestic producers (or workers) have met the
statutory criteria for industry support under section 732(c)(4)(A)(ii)
of the Act because the domestic producers (or workers) who support the
Petitions account for more than 50 percent of the production of the
domestic like product produced by that portion of the industry
expressing support for, or opposition to, the Petitions.\23\
Accordingly, Commerce determines that the Petitions were filed on
behalf of the domestic industry within the meaning of section 732(b)(1)
of the Act.
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\20\ Id.
\21\ Id.; see also section 732(c)(4)(D) of the Act.
\22\ See Attachment II of the Belgium AD Initiation Checklist,
Korea AD Initiation Checklist, Saudi Arabia AD Initiation Checklist,
Singapore AD Initiation Checklist, South Africa AD Initiation
Checklist, and Spain AD Initiation Checklist.
\23\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\24\
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\24\ See Volume I of the Petitions, at 19-20 and Exhibit I-16.
---------------------------------------------------------------------------
The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price depression or suppression;
a decline in the domestic industry's financial performance; and lost
sales and revenues.\25\ We have assessed the allegations and supporting
evidence regarding material injury, threat of material injury,
causation, negligibility, as well as cumulation, and we have determined
that these allegations are properly supported by adequate evidence, and
meet the statutory requirements for initiation.\26\
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\25\ Id., at 19-25 and Exhibits I-12 through I-13, and I-16
through I-20.
\26\ See Belgium AD Initiation Checklist, at Attachment III;
Korea AD Initiation Checklist, at Attachment III; Saudi Arabia AD
Initiation Checklist, at Attachment III; Singapore AD Initiation
Checklist, at Attachment III; South Africa AD Initiation Checklist,
at Attachment III; and Spain AD Initiation Checklist, at Attachment
III.
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Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate AD investigations of
imports of acetone from Belgium, Korea, Saudi Arabia, Singapore, South
Africa and Spain. The sources of data for the deductions and
adjustments relating to U.S. price and normal value (NV) are discussed
in greater detail in the country-specific initiation checklists.
Export Price
For Belgium, the petitioner based export price (EP) on two
methods.\27\ First, the petitioner used import data to determine
average unit values (AUVs) of imports of acetone from Belgium.\28\
Second, the petitioner was able to match individual shipments of
acetone identified in the publicly available shipment data to
individual entries of acetone in publicly available import data to
determine the shipper, consignee, and AUV of specific shipments.\29\
---------------------------------------------------------------------------
\27\ See Belgium Initiation Checklist.
\28\ Id.
\29\ Id.
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For Korea and Singapore, the petitioner based EP on three
methods.\30\ First, the petitioner used publicly available customs data
to determine AUV of imports of acetone from Korea and Singapore.\31\
Second, the petitioner matched individual shipments of goods identified
in publicly available import data from Korea and Singapore into the
United States with individual entries of acetone in publicly available
customs data, to determine transaction-specific AUVs.\32\ Lastly, the
petitioner used offers from a Korean and Singaporean producer to a U.S.
customer to establish EP.\33\
---------------------------------------------------------------------------
\30\ See Korea and Singapore Initiation Checklists.
\31\ Id.
\32\ Id.
\33\ Id.
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For Saudi Arabia, the petitioner based EP on AUVs which were based
on publicly available import data.\34\
---------------------------------------------------------------------------
\34\ See Saudi Arabia Initiation Checklist.
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For South Africa, the petitioner based EP on two methodologies--the
first method relied on official U.S. Customs statistics to determine
the AUV of imports of acetone from South Africa; the second method
involved matching individual shipments of goods identified in Custom
and Border Protection's Automated Manifest System (AMS) to individual
entries of acetone in the official U.S. Customs statistics to determine
the AUV of specific shipments.\35\
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\35\ See South Africa AD Initiation Checklist.
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For Spain, the petitioner based EP on two methodologies.\36\ First,
the petitioner based EP on pricing information for acetone produced in,
and exported from, Spain and sold or offered for sale in the United
States.\37\ Second, the petitioner relied on AUVs of publicly available
U.S. import data from Spain to establish EP.\38\
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\36\ See Spain Initiation Checklist.
\37\ Id.
\38\ Id.
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Normal Value
The petitioner obtained home market prices for Korea, Singapore,
and South Africa and third country prices for Belgium, but these prices
were below cost of production. Consequently, the petitioner, relied on
CV as the basis for NV. For further discussion of CV, see the section
``Normal Value Based on Constructed Value'' below.
For Saudi Arabia and Spain, the petitioner was unable to obtain
reliable information relating to the prices charged for acetone
produced and sold in Saudi Arabia and Spain or third country sales
prices for acetone produced in these countries.\39\ Because home market
prices and third country prices were not reasonably available, the
petitioner calculated NV based on constructed value (CV). For further
discussion of CV, see the section ``Normal Value Based on Constructed
Value'' below.\40\
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\39\ See Saudi Arabia and Spain AD Initiation Checklists.
\40\ In accordance with section 505(a) of the Trade Preferences
Extension Act of 2015, amending section 773(b)(2) of the Act, for
this investigation, Commerce will request information necessary to
calculate the CV and cost of production (COP) to determine whether
there are reasonable grounds to believe or suspect that sales of the
foreign like product have been made at prices that represent less
than the COP of the product. Commerce no longer requires a COP
allegation to conduct this analysis.
---------------------------------------------------------------------------
Normal Value Based on Constructed Value
As noted above, the petitioner obtained home market prices for
Korea, Singapore, and South Africa and third country prices for
Belgium, but demonstrated that these prices were below the COP;
therefore, the petitioner based NV on CV pursuant to section 773(a)(4)
of the Act.\41\ The petitioner was unable to obtain information
relating to the prices charged for acetone in Saudi Arabia and Spain,
or any third country market; accordingly, the petitioner also based NV
on CV.\42\ Pursuant to section 773(e) of the Act, CV consists of the
cost of manufacturing (COM), SG&A expenses, financial expenses, profit,
and packing expenses.
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\41\ See Belgium AD Initiation Checklist; Singapore AD
Initiation Checklist; South Africa AD Initiation Checklist; and
South Korea AD Initiation Checklist.
\42\ See Saudi Arabia AD Initiation Checklist and Spain AD
Initiation Checklist.
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The petitioner calculated the COM based on domestic producers'
input FOPs and usage rates for raw materials,
[[Page 9759]]
labor, and energy.\43\ The petitioner valued the input FOPs using
publicly available data on costs specific to Belgium, Singapore, South
Africa, Korea, Saudi Arabia, and Spain during the proposed POI.
Specifically, the petitioner based the prices for raw material inputs
on publicly available import data for Belgium, Singapore, South Africa,
Korea, Saudi Arabia, and Spain.\44\ The prices for benzene and
propylene for South Africa were based on the cost information from
another acetone producer. The petitioner valued labor and energy costs
using publicly available sources for Belgium, Singapore, South Africa,
Korea, Saudi Arabia, and Spain.\45\ The petitioner calculated factory
overhead, SG&A, financial expenses, and profit for Belgium, Singapore,
South Africa, Korea, Saudi Arabia, and Spain based on the experience of
a producer of acetone from each of these countries.\46\
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\43\ See Belgium AD Initiation Checklist; Singapore AD
Initiation Checklist; South Africa AD Initiation Checklist; South
Korea AD Initiation Checklist; Saudi Arabia AD Initiation Checklist;
and, Spain AD Initiation Checklist. Because the petitioner's member
producers in the United States purchase cumene, whereas the Korean
producers of acetone produce their own cumene, the petitioner based
the input factors of production for cumene on a cumene production
facility located in a third country. See Volume III of the
Petitions, at Korea Exhibit III-3.
\44\ Id.
\45\ Id.
\46\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of acetone from Belgium, Korea, Saudi Arabia,
Singapore, South Africa and Spain are being, or are likely to be, sold
in the United States at LTFV. Based on comparisons of EP to NV in
accordance with sections 772 and 773 of the Act, the estimated dumping
margins for acetone for each of the countries covered by this
initiation are as follows: (1) Belgium--43.14 to 73.69 percent; \47\
(2) Korea--112.72 to 174.66 percent; \48\ (3) Saudi Arabia--36.88
percent; \49\ (4) Singapore--14.52 to 131.75 percent; \50\ (5) South
Africa--214.09 to 414.92 percent; \51\ and (6) Spain--102.97 and 171.81
percent.\52\
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\47\ See Belgium AD Initiation Checklist.
\48\ See Korea AD Initiation Checklist.
\49\ See Saudi Arabia AD Initiation Checklist.
\50\ See Singapore AD Initiation Checklist.
\51\ See South Africa AD Initiation Checklist.
\52\ See Spain AD Initiation Checklist.
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Initiation of LTFV Investigations
Based upon the examination of the AD Petitions and supplemental
responses, we find that the Petitions meet the requirements of section
732 of the Act. Therefore, we are initiating AD investigations to
determine whether imports of acetone from Belgium, Korea, Saudi Arabia,
Singapore, South Africa and Spain are being, or are likely to be, sold
in the United States at LTFV. In accordance with section 733(b)(1)(A)
of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determinations no later than 140 days after the date of
this initiation.
Identification of Respondents
The petitioner named one producer in Belgium (INEOS Phenol Belgium
NV (INEOS Phenol)),\53\ two producers in Korea (Kumho P & B Chemicals,
Inc. (Kumho) and LG Chem, Ltd. (LG Chem)),\54\ two producers in Saudi
Arabia (Rabigh Refining & Petrochemical Company (Petro Rabigh) and
Saudi Kayan Petrochemical Company (Saudi Kayan)),\55\ one producer in
Singapore (Mitsui Phenols Singapore Pte Ltd (Mitsui)),\56\ one producer
in South Africa (Sasol Limited (Sasol)),\57\ and two producers in Spain
(CEPSA Quimica, S.A. and IQOXE).\58\ Moreover, the petitioner provided
evidence in each of the Petitions indicating that the named producers
were the only producers of acetone in the subject countries.\59\
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\53\ See Volume I of the Petitions at Exhibit I-10.
\54\ Id.
\55\ Id.
\56\ Id.
\57\ Id. Sasol is identified in the petition by various names
including: Sasol Limited Company (Exhibit VI-3), Sasol Limited Group
(Exhibit VI-3), Sasol Limited (Exhibit VI-3), and as Sasol Solvents
Sasol Limited (Exhibit I-10). Commerce intends to issue one
questionnaire addressed to all variations of the company name under
one cover letter.
\58\ Id.
\59\ See, e.g., Volume II of the Petitions at Exhibit II-6;
Volume VI of the Petitions at Exhibit VI-7. See also Volume I of the
Petitions at Exhibit I-2.
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Although Commerce normally relies on import data using United
States Customs and Border Protection (CBP) import statistics to
determine whether to select a limited number of producers/exporters for
individual examination in AD investigations, the petitioner has
identified only one or two producers in each subject country and has
demonstrated that these are the sole producers. We currently know of no
additional producers/exporters of acetone from Belgium, Korea, Saudi
Arabia, Singapore, South Africa, or Spain. Accordingly, Commerce
intends to examine all known producers in each of the six
investigations, as indicated by the supporting information included in
the Petitions (described above).\60\ We invite interested parties to
comment on this issue. Such comments may include factual information
within the meaning of 19 CFR 351.102(b)(21). Parties wishing to comment
must do so within three business days of the publication of this notice
in the Federal Register. Comments must be filed electronically using
ACCESS. An electronically filed document must be received successfully
in its entirety by Commerce's electronic records system, ACCESS, by 5
p.m. ET by the specified deadline.
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\60\ The Petitions also identify four possible trading
companies, with no indication of which countries' acetone those
companies might be trading/exporting to the United States. However,
because the Petitions have identified the complete set of producers
in each country, there currently is no need to issue questionnaires
to the trading companies/exporters as well.
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Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the governments of Belgium, Korea, Saudi Arabia, Singapore,
South Africa, and Spain via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the Petitions to
each exporter named in the Petitions, as provided under 19 CFR
351.203(c)(2).
ITC Notification
We will notify the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of acetone from Belgium, Korea, Saudi Arabia,
Singapore, South Africa and Spain are materially injuring or
threatening material injury to a U.S. industry.\61\ A negative ITC
determination for any country will result in the investigation being
terminated with respect to that country.\62\ Otherwise, the
investigations will proceed according to statutory and regulatory time
limits.
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\61\ See section 733(a) of the Act.
\62\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). 19 CFR 351.301(b)
[[Page 9760]]
requires any party, when submitting factual information, to specify
under which subsection of 19 CFR 351.102(b)(21) the information is
being submitted \63\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\64\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in these investigations.
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\63\ See 19 CFR 351.301(b).
\64\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation
Section 504 of the Trade Preferences Extension Act of 2015 amended
the Act by adding the concept of particular market situation (PMS) for
purposes of CV under section 773(e) of the Act.\65\ Section 773(e) of
the Act states that ``if a particular market situation exists such that
the cost of materials and fabrication or other processing of any kind
does not accurately reflect the cost of production in the ordinary
course of trade, the administering authority may use another
calculation methodology under this subtitle or any other calculation
methodology.'' When an interested party submits a PMS allegation
pursuant to section 773(e) of the Act, Commerce will respond to such a
submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds
that a PMS exists under section 773(e) of the Act, then it will modify
its dumping calculations appropriately.
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\65\ See Trade Preferences Extension Act of 2015, Public Law
114-27, 129 Stat. 362 (2015).
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Neither section 773(e) of the Act nor 19 CFR 351.301(c)(2)(v) set a
deadline for the submission of PMS allegations and supporting factual
information. However, in order to administer section 773(e) of the Act,
Commerce must receive PMS allegations and supporting factual
information with enough time to consider the submission. Thus, should
an interested party wish to submit a PMS allegation and supporting new
factual information pursuant to section 773(e) of the Act, it must do
so no later than 20 days after submission of a respondent's initial
section D questionnaire response.
Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, we will inform parties in a letter or memorandum setting forth
the deadline (including a specified time) by which extension requests
must be filed to be considered timely. An extension request must be
made in a separate, stand-alone submission; under limited circumstances
we will grant untimely-filed requests for the extension of time limits.
Parties should review Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information
in these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\66\
Parties must use the certification formats provided in 19 CFR
351.303(g).\67\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable revised
certification requirements.
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\66\ See section 782(b) of the Act.
\67\ See also Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce
published Antidumping and Countervailing Duty Proceedings: Documents
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008).
Parties wishing to participate in these investigations should ensure
that they meet the requirements of these procedures (e.g., the filing
of letters of appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: March 11, 2019.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigations
The merchandise covered by these investigations is all grades of
liquid or aqueous acetone. Acetone is also known under the
International Union of Pure and Applied Chemistry (IUPAC) name
propan-2-one. In addition to the IUPAC name, acetone is also
referred to as [szlig]-ketopropane (or beta-ketopropane), ketone
propane, methyl ketone, dimethyl ketone, DMK, dimethyl carbonyl,
propanone, 2-propanone, dimethyl formaldehyde, pyroacetic acid,
pyroacetic ether, and pyroacetic spirit. Acetone is an isomer of the
chemical formula C3H6O, with a specific
molecular formula of CH3COCH3 or
(CH3)2CO.
The scope includes acetone that is combined or mixed with other
products, including, but not limited to, isopropyl alcohol, benzene,
diethyl ether, methanol, chloroform, and ethanol, regardless of the
quantity or value of the acetone component. For such combined
products, only the acetone component is covered by the scope of
these investigations. Acetone that has been combined with other
products is included within the scope, regardless of whether the
combining occurs in third countries. Notwithstanding the foregoing
language, an acetone combination or mixture that is transformed
through a chemical reaction into another product, such that, for
example, the acetone can no longer be separated from the other
products through a distillation process (e.g., methyl methacrylate
(MMA) or Bisphenol A (BPA)) is excluded from these investigations.
The scope also includes acetone that is commingled with acetone
from sources not subject to these investigations, regardless of the
quantity or value of the subject acetone component. Only the subject
merchandise component of such commingled products is covered by the
scope of these investigations. Acetone that has been commingled with
acetone from sources not subject to these investigations is included
within the scope, regardless of whether the combining occurs in
third countries. The acetone component from sources not subject to
these investigations may still be subject to other acetone
investigations.
The Chemical Abstracts Service (CAS) registry number for acetone
is 67-64-1.
The merchandise covered by these investigations is currently
classifiable under Harmonized Tariff Schedule of the United States
(HTSUS) subheadings 2914.11.1000 and 2914.11.5000. Acetone and
acetone combinations and mixtures covered by these investigations
may also enter under different HTSUS subheadings, such as
2902.20.0000, 2902.70.0000, 2905.12.0050, or 2914.12.0000, however,
this list of HTSUS subheadings is non-exhaustive. Although these
HTSUS
[[Page 9761]]
subheadings and CAS registry number are provided for convenience and
customs purposes, the written description of the scope of these
investigations is dispositive.
[FR Doc. 2019-05004 Filed 3-15-19; 8:45 am]
BILLING CODE 3510-DS-P