Ultra-High Molecular Weight Polyethylene From the Republic of Korea: Initiation of Less-Than-Fair-Value Investigation, 17861-17865 [2020-06589]

Download as PDF 17861 Federal Register / Vol. 85, No. 62 / Tuesday, March 31, 2020 / Notices Exporter Producer YEKALON INDUSTRY, INC ..................................... YEKALON INDUSTRY, INC ..................................... YEKALON INDUSTRY, INC ..................................... Yi Sen Wood Industry Limited Company of Ning An City. Yichun Dongmeng Wood Co., Ltd ............................ Yichun Dongmeng Wood Co., Ltd ............................ Yichun Sunshine Wood Products Co., Ltd ............... Yixing Pengjia Cabinetry Co. Ltd .............................. Zhangjiagang Daye Hotel Furniture Co., Ltd ............ ZHANGJIAGANG PRO–FIXTURE CO., LTD ........... ZHANGZHOU CITY XIN JIA HUA FURNITURE CO., LTD. Zhangzhou Guohui Industrial & Trade Co., Ltd ........ Zhangzhou OCA Furniture Co., Ltd .......................... Zhaoqing Centech Decorative Material Company Ltd. Zhejiang Jindi Holding Group Co., Ltd ..................... Zhong Shan Shi Yicheng Furniture & Craftwork Co., Ltd. Zhong Shan Yue Qin Imp. & Exp. Co., Ltd .............. Zhongshan City Shenwan Meiting Furniture Factory Oriental Chic Furniture Company Limited ............... DONGGUAN FRANCISS FURNITURE CO., LTD .. SHANGHAI YUANYANG WOODEN CO., LTD ....... Yi Sen Wood Industry Limited Company of Ning An City. Yichun Dongmeng Wood Co., Ltd ........................... Qingdao Dimei Wood Co., Ltd ................................. Yichun Sunshine Wood Products Co., Ltd .............. Yixing Pengjia Cabinetry Co. Ltd ............................. Zhangjiagang Daye Hotel Furniture Co., Ltd ........... Zhangjiagang Yuanjiahe Home Furniture Co., Ltd .. ZHANGZHOU CITY XIN JIA HUA FURNITURE CO., LTD. Zhangzhou Guohui Industrial & Trade Co., Ltd ...... Zhangzhou OCA Furniture Co., Ltd ......................... Zhaoqing Centech Decorative Material Company Ltd. Zhejiang Jindi Holding Group Co., Ltd .................... Zhong Shan Shi Yicheng Furniture & Craftwork Co., Ltd. Zhongshan Jinpeng Furniture Co., Ltd .................... Zhongshan City Shenwan Meiting Furniture Factory. Zhongshan Fookyik Furniture Co., Ltd .................... ZHONGSHAN GAINWELL FURNITURE CO., LTD Zhongshan Guanda Furniture Manufacturing Co., Ltd. ZHONGSHAN HENGFU FURNITURE COMPANY LIMITED. Zhongshan King’s Group Furniture (ENTERPRISES) Co., Ltd. Zhoushan For-strong Wood Co., Ltd ....................... Shanghai Wanmuda Furniture Co., Ltd ................... Zhucheng Tonghe Woodworks Co., ltd ................... Zhuhai Seagull Kitchen and Bath Products Co., Ltd DONGGUAN FANG CHENG FURNITURE LTD ..... ZhongShan PRO–YEARN Crafts Product Co., Ltd FUJIAN NEWMARK INDUSTRIAL CO., LTD .......... Fuzhou Zhonghe Houseware CO., LTD .................. MING LIANG FURNITURE PRODUCT CO., LTD .. XIANJU JUNYANG HOUSEHOLD PRODUCTS CO., LTD. DongGuan HeTai Homewares CO., LTD ................ CHENG TONG HARDWARE PRODUCT LTD ........ Nantong Jon Ergonomic Office Co., Ltd .................. .................................................................................. Zhongshan Fookyik Furniture Co., Ltd ..................... ZHONGSHAN GAINWELL FURNITURE CO., LTD Zhongshan Guanda Furniture Manufacturing Co., Ltd also known as Guanda Furniture Co., Ltd. ZHONGSHAN HENGFU FURNITURE COMPANY LIMITED. Zhongshan King’s Group Furniture (ENTERPRISES) Co., Ltd. Zhoushan For-strong Wood Co., Ltd ........................ Zhoushan For-strong Wood Co., Ltd ........................ Zhucheng Tonghe Woodworks Co., ltd .................... Zhuhai Seagull Kitchen and Bath Products Co., Ltd ZIEL INTERNATIONAL CO., LIMITED ..................... ZIEL INTERNATIONAL CO., LIMITED ..................... ZIEL INTERNATIONAL CO., LIMITED ..................... ZIEL INTERNATIONAL CO., LIMITED ..................... ZIEL INTERNATIONAL CO., LIMITED ..................... ZIEL INTERNATIONAL CO., LIMITED ..................... ZIEL INTERNATIONAL CO., LIMITED ..................... ZIEL INTERNATIONAL CO., LIMITED ..................... ZIEL INTERNATIONAL CO., LIMITED ..................... China-Wide Entity ..................................................... Suspension of Liquidation Suspension of liquidation and cash deposit rates for all producers and exporters of subject merchandise from China are unaffected by this correction notice. Refer to the Final Determination for the suspension instructions in effect at the time of the issuance of this notice. Public Comment jbell on DSKJLSW7X2PROD with NOTICES Estimated weightedaverage dumping margin (percent) Commerce is not accepting public comments in response to this corrected final determination. International Trade Commission Notification International Trade Commission of this correction notice. Notification to Interested Parties This corrected final determination is issued and published in accordance with sections 735(d) and 777(i)(1) of the Tariff Act of 1930, as amended, and 19 CFR 351.210(c). 19:01 Mar 30, 2020 Jkt 250001 48.50 48.50 48.50 48.50 37.96 37.96 37.96 37.96 48.50 48.50 48.50 48.50 48.50 48.50 48.50 37.96 37.96 37.96 37.96 37.96 37.96 37.96 48.50 48.50 48.50 37.96 37.96 37.96 48.50 48.50 37.96 37.96 48.50 48.50 37.96 37.96 48.50 48.50 48.50 37.96 37.96 37.96 48.50 37.96 48.50 37.96 48.50 48.50 48.50 48.50 48.50 48.50 48.50 48.50 48.50 48.50 37.96 37.96 37.96 37.96 37.96 37.96 37.96 37.96 37.96 37.96 48.50 48.50 48.50 262.18 37.96 37.96 37.96 251.64 DEPARTMENT OF COMMERCE International Trade Administration [A–580–907] Ultra-High Molecular Weight Polyethylene From the Republic of Korea: Initiation of Less-Than-FairValue Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. Dated: March 25, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. AGENCY: [FR Doc. 2020–06645 Filed 3–30–20; 8:45 am] FOR FURTHER INFORMATION CONTACT: PO 00000 Frm 00014 Fmt 4703 DATES: Applicable March 24, 2020. Darla Brown or Ian Hamilton, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of BILLING CODE 3510–DS–P In accordance with section 735(d) of the Act, Commerce will notify the VerDate Sep<11>2014 Cash deposit rate (adjusted for subsidy offsets) (percent) Sfmt 4703 E:\FR\FM\31MRN1.SGM 31MRN1 17862 Federal Register / Vol. 85, No. 62 / Tuesday, March 31, 2020 / Notices Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1791 or (202) 482–4798, respectively. SUPPLEMENTARY INFORMATION: The Petition On March 4, 2020, the U.S. Department of Commerce (Commerce) received an antidumping duty (AD) petition concerning imports of ultrahigh molecular weight polyethylene (ultra-high polyethylene) from the Republic of Korea (Korea), filed in proper form on behalf of Celanese Corporation (the petitioner).1 On March 6 and 12, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petition.2 On March 10 and 16, 2020, respectively, the petitioner filed its responses to these supplemental questionnaires.3 In accordance with section 732(b) of the Act, the petitioner alleges that imports of ultra-high polyethylene from Korea 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 ultra-high polyethylene in the United States. Consistent with section 732(b)(1) of the Act, the Petition is accompanied by information reasonably available to the petitioner supporting its allegation. jbell on DSKJLSW7X2PROD with NOTICES 1 See Petitioner’s Letter, ‘‘Petitioners for the Imposition of Antidumping Duties: Ultra-High Molecular Weight Polyethylene from South Korea,’’ dated March 3, 2020 (Petition). The Petition was filed with Commerce and the U.S. International Trade Commission (ITC) on March 3, 2020, after 12:00 noon, and pursuant to 19 CFR 207.10(a), is deemed to have been filed with the ITC on the next business day, March 4, 2020. Because section 732(b)(2) of the Tariff Act of 1930, as amended (the Act), requires simultaneous filing of the Petition with Commerce and the ITC, Commerce deemed the Petition to have been filed with Commerce on March 4, 2020. See Memorandum, ‘‘Decision Memorandum Concerning the Filing Date of the Petition,’’ dated March 9, 2020. 2 See Commerce’s Letter, ‘‘Petition for the Imposition of Antidumping Duties on Imports of Ultra-High Molecular Weight Polyethylene from the Republic of Korea: Supplemental Questions,’’ dated March 6, 2020 (Supplemental Questionnaire); and Memorandum, ‘‘Additional Supplemental Questions Regarding Antidumping Duty Petition,’’ dated March 12, 2020 (Second Supplemental Questionnaire). 3 See Petitioner’s Letter, ‘‘Petitioners {sic} for the Imposition of Antidumping Duties on Imports of Ultra-High Molecular Weight Polyethylene from the Republic of Korea: Supplemental Questions,’’ dated March 10, 2020 (Petition Supplement); and Petitioner’s Letter, ‘‘Petitioners {sic} for the Imposition of Antidumping Duties on Imports of Ultra-High Molecular Weight Polyethylene from the Republic of Korea: Additional Supplemental Questions,’’ dated March 16, 2020 (Petition Second Supplement). VerDate Sep<11>2014 19:01 Mar 30, 2020 Jkt 250001 Commerce finds that the petitioner filed the Petition on behalf of the domestic industry, because the petitioner is an interested party, as defined by section 771(9)(C) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested AD investigation.4 Period of Investigation Because the Petition was filed on March 4, 2020, pursuant to 19 CFR 351.204(b)(1), the period of investigation (POI) is January 1, 2019 through December 31, 2019. Scope of the Investigation The product covered by this investigation is ultra-high molecular weight polyethylene from Korea. For a full description of the scope of this investigation, see the appendix to this notice. Comments on the Scope of the Investigation During our review of the Petition, we contacted the petitioner regarding the proposed scope to ensure that the scope language in the Petition is an accurate reflection of the products for which the domestic industry is seeking relief.5 The description of the merchandise covered by this investigation, as described in the appendix to this notice, reflects these clarifications. Consistent with the Preamble to Commerce’s regulations, we are setting aside a period for interested parties to raise issues regarding product coverage (i.e., scope).6 Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information,7 all such factual information should be limited to public information. To facilitate preparation of its questionnaire, Commerce requests that all interested parties submit scope comments by 5:00 p.m. Eastern Time (ET) on April 13, 4 See infra, section on ‘‘Determination of Industry Support for the Petition;’’ Antidumping Duty Initiation Checklist: Ultra-High Polyethylene from the Republic of Korea (Initiation Checklist) at Attachment II, Analysis of Industry Support for the Antidumping Duty Petition Covering Ultra-High Polyethylene from the Republic of Korea (Attachment II). 5 See Supplemental Questionnaire and Second Supplemental Questionnaire; Petition Supplement at Exhibit GEN–SUP–11; and Petition Second Supplement at Exhibit GEN–2SUP–1. 6 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 7 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 2020, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on April 23, 2020, which is 10 calendar days from the initial comment deadline.8 Commerce requests that any factual information parties consider relevant to the scope of the investigation be submitted during this period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party may contact Commerce and request permission to submit the additional information. Filing Requirements All submissions to Commerce must be filed electronically via Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS).9 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 Commerce is providing interested parties an opportunity to comment on the appropriate physical characteristics of ultra-high polyethylene to be reported in response to Commerce’s AD questionnaire. 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. 8 See 19 CFR 351.303(b). 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. 9 See E:\FR\FM\31MRN1.SGM 31MRN1 Federal Register / Vol. 85, No. 62 / Tuesday, March 31, 2020 / Notices jbell on DSKJLSW7X2PROD with NOTICES 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 commercial differences among products. In other words, although there may be some physical product characteristics utilized by manufacturers to describe ultra-high polyethylene, 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 questionnaire, all product characteristics comments must be filed by 5:00 p.m. ET on April 13, 2020, which is 20 calendar days from the signature date of this notice.10 Any rebuttal comments must be filed by 5:00 p.m. ET on April 23, 2020. All comments and submissions to Commerce must be filed electronically using ACCESS, as explained above, on the record of the investigation. Determination of Industry Support for the Petition 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.’’ 10 See 19 CFR 351.303(b). VerDate Sep<11>2014 19:01 Mar 30, 2020 Jkt 250001 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 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,11 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.12 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 investigation.13 Based on our analysis of the information submitted on the record, we have determined that ultrahigh polyethylene, as defined in the scope, constitutes a single domestic like product, and we have analyzed industry support in terms of that domestic like product.14 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 Petition with reference to the domestic like product as defined in the ‘‘Scope of the Investigation,’’ in the appendix to this notice. To establish domestic production, the petitioner provided its 11 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)). 13 See Volume I of the Petition at 14–18 and Exhibits GEN–12 and GEN–18. 14 For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see Initiation Checklist at Attachment II. 12 See PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 17863 own production of the domestic like product in 2019, as well as estimated 2019 effective total U.S. production capacity of the only other known producer of domestic like product.15 To establish industry support, the petitioner compared its production to the estimated total production of the domestic like product for the entire domestic industry.16 We relied on data provided by the petitioner for purposes of measuring industry support.17 Our review of the data provided in the Petition, the General Issues Supplement, the Second General Issues Supplement, and other information readily available to Commerce indicates that the petitioner has established industry support for the Petition.18 First, the Petition 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).19 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 Petition account for at least 25 percent of the total production of the domestic like product.20 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 Petition 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 Petition.21 Accordingly, Commerce determines that the Petition was filed on behalf of the domestic industry within the meaning of section 732(b)(1) of the Act.22 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 15 See Volume I of the Petition at 6–7 and Exhibit GEN–2; see also Petition Supplement at 2–5 and Exhibits GEN–SUP–2 through GEN–SUP–7, and GEN–SUP–10; and Second Petition Supplement at 1. 16 Id. 17 Id. For further discussion, see Initiation Checklist at Attachment II. 18 Id. 19 See section 732(c)(4)(D) of the Act; see also Initiation Checklist at Attachment II. 20 See Initiation Checklist at Attachment II. 21 Id. 22 Id. E:\FR\FM\31MRN1.SGM 31MRN1 17864 Federal Register / Vol. 85, No. 62 / Tuesday, March 31, 2020 / Notices 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.23 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; lost sales and revenues; and declining financial performance.24 We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as negligibility, and we have determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.25 Allegations of Sales at LTFV The following is a description of the allegations of sales at LTFV upon which Commerce based its decision to initiate an AD investigation of imports of ultrahigh polyethylene from Korea. 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 Initiation Checklist. Export Price The petitioner based export price (EP) on the average unit values (AUVs) of the official U.S. import statistics obtained from the ITC’s Dataweb (Dataweb). The petitioner made deductions from these AUVs for foreign inland freight expenses. The petitioner also based EP on an offer for sale from Korea Petrochemical Industry Corporation (KPIC) to a customer of the petitioner. The petitioner made deductions from this offer for sale for foreign inland freight expenses, foreign brokerage and handling charges, ocean freight expenses, marine insurance expenses, merchandise processing fees, U.S. brokerage and handling charges, and U.S. inland freight expenses.26 jbell on DSKJLSW7X2PROD with NOTICES Normal Value 27 The petitioner based NV on home market price quotes obtained through 23 See Volume I of the Petition at 19 and Exhibit GEN–8; see also Petition Supplement at 5. 24 See Volume I of the Petition at 20–22 and Exhibits GEN–9 and GEN–10; see also Petition Supplement at 5–7 and Exhibit GEN–SUP–9. 25 See Initiation Checklist at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping Duty Petition Covering Ultra-High Molecular Weight Polyethylene from the Republic of Korea. 26 See Initiation Checklist at 6–8. 27 In accordance with section 505(a) of the Trade Preferences Extension Act of 2015, amending VerDate Sep<11>2014 19:01 Mar 30, 2020 Jkt 250001 market research for ultra-high polyethylene produced in and sold, or offered for sale, in Korea within the POI.28 The petitioner deducted foreign inland freight expenses from the home market prices.29 Fair Value Comparisons Based on the data provided by the petitioner, there is reason to believe that imports of ultra-high polyethylene from Korea 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 ultra-high polyethylene from Korea range from 13.16 to 153.35 percent.30 Initiation of LTFV Investigation We find that the Petition and supplemental responses meet the requirements of section 732 of the Act. Therefore, we are initiating an AD investigation to determine whether imports of ultra-high polyethylene from Korea 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. Respondent Selection Although Commerce normally relies on import data from using U.S. Customs and Border Protection import statistics to determine whether to select a limited number of producers/exporters for individual examination in AD investigations, the petitioner identified only one company in Korea, i.e., KPIC, as a producer/exporter of ultra-high polyethylene and provided independent, third-party information as support.31 We currently know of no additional producers/exporters of ultrahigh polyethylene from Korea. Accordingly, Commerce intends to examine all known Korean producers/ exporters (i.e., KPIC). We invite interested parties to comment on this issue. Such comments may include section 773(b)(2) of the Act, for this investigation, Commerce will request information necessary to calculate the constructed value 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. 28 See Initiation Checklist at 6–8. 29 Id. 30 Id. 31 See Volume I of the Petition at 12 and Exhibit GEN–15, Volume II of the Petition at 4 and Exhibit AD–II–1; see also Petition Supplement at Exhibit AD–II–SUP–13. PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 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 via ACCESS by 5:00 p.m. ET on the specified deadline. Distribution of Copies of the Petition In accordance with section 732(b)(3)(A) of the Act and 19 CFR 351.202(f), copies of the public version of the Petition have been provided to the Government of Korea via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, 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 Determination by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petition was filed, whether there is a reasonable indication that imports of ultra-high polyethylene from Korea are materially injuring, or threatening material injury to, a U.S. industry.32 A negative ITC determination will result in the investigation being terminated.33 Otherwise, this AD investigation 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) requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 34 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 32 See section 733(a) of the Act. 33 Id. 34 See E:\FR\FM\31MRN1.SGM 19 CFR 351.301(b). 31MRN1 Federal Register / Vol. 85, No. 62 / Tuesday, March 31, 2020 / Notices seeks to rebut, clarify, or correct.35 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 this investigation. jbell on DSKJLSW7X2PROD with NOTICES 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 constructed value under section 773(e) of the Act.36 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) sets 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 Commerce. 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 35 See 19 CFR 351.301(b)(2). Trade Preferences Extension Act of 2015, Public Law 114–27, 129 Stat. 362 (2015). 36 See VerDate Sep<11>2014 19:01 Mar 30, 2020 Jkt 250001 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 this investigation. Certification Requirements Any party submitting factual information in an AD or countervailing duty proceeding must certify to the accuracy and completeness of that information.37 Parties must use the certification formats provided in 19 CFR 351.303(g).38 Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under Administrative Protective Order (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 this investigation 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). 37 See section 782(b) of the Act. 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. 38 See PO 00000 Frm 00018 Fmt 4703 Sfmt 9990 17865 Dated: March 24, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Investigation The merchandise covered by the scope is ultra-high molecular weight polyethylene. Ultra-high molecular weight polyethylene is a linear polyethylene, in granular or powder form. It is defined by its melt mass-flow rate of <0.1 g/10 min, measured at 190 °C and 21.6 kg load, based on the methods and calculations set forth in the International Organization for Standardization (ISO) standards 21304–1 and 21304–2. Ultra-high molecular weight polyethylene has a Chemical Abstract Service (CAS) registry number of 9002–88–4. The scope includes all ultra-high molecular weight polyethylene in granular or powder forms meeting the above specifications regardless of additives introduced in the manufacturing process. Ultra-high molecular weight polyethylene blended with other products is included in the scope of this investigation where ultrahigh molecular weight polyethylene accounts for more than 50 percent, by actual weight, of the blend and the resulting blend maintains a melt mass-flow rate of <0.1 g/10 min. Excluded from the scope of the investigation is medical-grade ultra-high molecular weight polyethylene. Medical grade ultra-high molecular weight polyethylene has a minimum viscosity of 2,000 ml/g at a concentration of 0.02% at 135 °C (275 °F) in decahydronaphthalene and an elongational stress of 0.2 MPa or greater. Medical-grade ultra-high molecular weight polyethylene is further defined by its ash and trace element content, which shall not exceed the following maximum quantities as set forth in ISO–5834–1: ash (125 mg/kg), titanium (40 mg/kg), calcium (5 mg/kg), chlorine (30 mg/kg), and aluminum (20 mg/ kg). ISO 5834–1 further defines medical grade ultra-high molecular weight polyethylene by its particulate matter content, which requires that there shall be no more than three particles of contaminant per 300 ± 20 g tested. Each of the above criteria is calculated based on the standards and methods used in ISO 5834–1. Ultra-high molecular weight polyethylene is classifiable under the HTSUS subheadings 3901.10.1000 and 3901.20.1000. Although the HTSUS subheadings and CAS registry number are provided for convenience and customs purposes, the written description of the scope is dispositive. [FR Doc. 2020–06589 Filed 3–30–20; 8:45 am] BILLING CODE 3510–DS–P E:\FR\FM\31MRN1.SGM 31MRN1

Agencies

[Federal Register Volume 85, Number 62 (Tuesday, March 31, 2020)]
[Notices]
[Pages 17861-17865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06589]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-907]


Ultra-High Molecular Weight Polyethylene From the Republic of 
Korea: Initiation of Less-Than-Fair-Value Investigation

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


DATES: Applicable March 24, 2020.

FOR FURTHER INFORMATION CONTACT: Darla Brown or Ian Hamilton, AD/CVD 
Operations, Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of

[[Page 17862]]

Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 
(202) 482-1791 or (202) 482-4798, respectively.

SUPPLEMENTARY INFORMATION: 

The Petition

    On March 4, 2020, the U.S. Department of Commerce (Commerce) 
received an antidumping duty (AD) petition concerning imports of ultra-
high molecular weight polyethylene (ultra-high polyethylene) from the 
Republic of Korea (Korea), filed in proper form on behalf of Celanese 
Corporation (the petitioner).\1\
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    \1\ See Petitioner's Letter, ``Petitioners for the Imposition of 
Antidumping Duties: Ultra-High Molecular Weight Polyethylene from 
South Korea,'' dated March 3, 2020 (Petition). The Petition was 
filed with Commerce and the U.S. International Trade Commission 
(ITC) on March 3, 2020, after 12:00 noon, and pursuant to 19 CFR 
207.10(a), is deemed to have been filed with the ITC on the next 
business day, March 4, 2020. Because section 732(b)(2) of the Tariff 
Act of 1930, as amended (the Act), requires simultaneous filing of 
the Petition with Commerce and the ITC, Commerce deemed the Petition 
to have been filed with Commerce on March 4, 2020. See Memorandum, 
``Decision Memorandum Concerning the Filing Date of the Petition,'' 
dated March 9, 2020.
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    On March 6 and 12, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the Petition.\2\ On March 
10 and 16, 2020, respectively, the petitioner filed its responses to 
these supplemental questionnaires.\3\
---------------------------------------------------------------------------

    \2\ See Commerce's Letter, ``Petition for the Imposition of 
Antidumping Duties on Imports of Ultra-High Molecular Weight 
Polyethylene from the Republic of Korea: Supplemental Questions,'' 
dated March 6, 2020 (Supplemental Questionnaire); and Memorandum, 
``Additional Supplemental Questions Regarding Antidumping Duty 
Petition,'' dated March 12, 2020 (Second Supplemental 
Questionnaire).
    \3\ See Petitioner's Letter, ``Petitioners {sic{time}  for the 
Imposition of Antidumping Duties on Imports of Ultra-High Molecular 
Weight Polyethylene from the Republic of Korea: Supplemental 
Questions,'' dated March 10, 2020 (Petition Supplement); and 
Petitioner's Letter, ``Petitioners {sic{time}  for the Imposition of 
Antidumping Duties on Imports of Ultra-High Molecular Weight 
Polyethylene from the Republic of Korea: Additional Supplemental 
Questions,'' dated March 16, 2020 (Petition Second Supplement).
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    In accordance with section 732(b) of the Act, the petitioner 
alleges that imports of ultra-high polyethylene from Korea 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 ultra-high polyethylene in the United 
States. Consistent with section 732(b)(1) of the Act, the Petition is 
accompanied by information reasonably available to the petitioner 
supporting its allegation.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry, because the petitioner is an interested party, 
as defined by section 771(9)(C) of the Act. Commerce also finds that 
the petitioner demonstrated sufficient industry support with respect to 
the initiation of the requested AD investigation.\4\
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    \4\ See infra, section on ``Determination of Industry Support 
for the Petition;'' Antidumping Duty Initiation Checklist: Ultra-
High Polyethylene from the Republic of Korea (Initiation Checklist) 
at Attachment II, Analysis of Industry Support for the Antidumping 
Duty Petition Covering Ultra-High Polyethylene from the Republic of 
Korea (Attachment II).
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Period of Investigation

    Because the Petition was filed on March 4, 2020, pursuant to 19 CFR 
351.204(b)(1), the period of investigation (POI) is January 1, 2019 
through December 31, 2019.

Scope of the Investigation

    The product covered by this investigation is ultra-high molecular 
weight polyethylene from Korea. For a full description of the scope of 
this investigation, see the appendix to this notice.

Comments on the Scope of the Investigation

    During our review of the Petition, we contacted the petitioner 
regarding the proposed scope to ensure that the scope language in the 
Petition is an accurate reflection of the products for which the 
domestic industry is seeking relief.\5\ The description of the 
merchandise covered by this investigation, as described in the appendix 
to this notice, reflects these clarifications.
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    \5\ See Supplemental Questionnaire and Second Supplemental 
Questionnaire; Petition Supplement at Exhibit GEN-SUP-11; and 
Petition Second Supplement at Exhibit GEN-2SUP-1.
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    Consistent with the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\6\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\7\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaire, Commerce requests that all 
interested parties submit scope comments by 5:00 p.m. Eastern Time (ET) 
on April 13, 2020, which is 20 calendar days from the signature date of 
this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on April 23, 2020, which is 
10 calendar days from the initial comment deadline.\8\
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    \6\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \7\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \8\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigation be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\9\ 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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    \9\ 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.
---------------------------------------------------------------------------

Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of ultra-high polyethylene 
to be reported in response to Commerce's AD questionnaire. 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.

[[Page 17863]]

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 commercial differences 
among products. In other words, although there may be some physical 
product characteristics utilized by manufacturers to describe ultra-
high polyethylene, 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 questionnaire, all product 
characteristics comments must be filed by 5:00 p.m. ET on April 13, 
2020, which is 20 calendar days from the signature date of this 
notice.\10\ Any rebuttal comments must be filed by 5:00 p.m. ET on 
April 23, 2020. All comments and submissions to Commerce must be filed 
electronically using ACCESS, as explained above, on the record of the 
investigation.
---------------------------------------------------------------------------

    \10\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    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 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,\11\ 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.\12\
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    \11\ See section 771(10) of the Act.
    \12\ 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 investigation.\13\ Based on our analysis of the information 
submitted on the record, we have determined that ultra-high 
polyethylene, as defined in the scope, constitutes a single domestic 
like product, and we have analyzed industry support in terms of that 
domestic like product.\14\
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    \13\ See Volume I of the Petition at 14-18 and Exhibits GEN-12 
and GEN-18.
    \14\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Initiation Checklist at Attachment II.
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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 Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the appendix to 
this notice. To establish domestic production, the petitioner provided 
its own production of the domestic like product in 2019, as well as 
estimated 2019 effective total U.S. production capacity of the only 
other known producer of domestic like product.\15\ To establish 
industry support, the petitioner compared its production to the 
estimated total production of the domestic like product for the entire 
domestic industry.\16\ We relied on data provided by the petitioner for 
purposes of measuring industry support.\17\
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    \15\ See Volume I of the Petition at 6-7 and Exhibit GEN-2; see 
also Petition Supplement at 2-5 and Exhibits GEN-SUP-2 through GEN-
SUP-7, and GEN-SUP-10; and Second Petition Supplement at 1.
    \16\ Id.
    \17\ Id. For further discussion, see Initiation Checklist at 
Attachment II.
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    Our review of the data provided in the Petition, the General Issues 
Supplement, the Second General Issues Supplement, and other information 
readily available to Commerce indicates that the petitioner has 
established industry support for the Petition.\18\ First, the Petition 
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).\19\ 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 Petition account for at 
least 25 percent of the total production of the domestic like 
product.\20\ 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 
Petition 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 Petition.\21\ 
Accordingly, Commerce determines that the Petition was filed on behalf 
of the domestic industry within the meaning of section 732(b)(1) of the 
Act.\22\
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    \18\ Id.
    \19\ See section 732(c)(4)(D) of the Act; see also Initiation 
Checklist at Attachment II.
    \20\ See Initiation Checklist at Attachment II.
    \21\ Id.
    \22\ 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

[[Page 17864]]

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.\23\
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    \23\ See Volume I of the Petition at 19 and Exhibit GEN-8; see 
also Petition Supplement at 5.
---------------------------------------------------------------------------

    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; 
lost sales and revenues; and declining financial performance.\24\ We 
have assessed the allegations and supporting evidence regarding 
material injury, threat of material injury, causation, as well as 
negligibility, and we have determined that these allegations are 
properly supported by adequate evidence, and meet the statutory 
requirements for initiation.\25\
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    \24\ See Volume I of the Petition at 20-22 and Exhibits GEN-9 
and GEN-10; see also Petition Supplement at 5-7 and Exhibit GEN-SUP-
9.
    \25\ See Initiation Checklist at Attachment III, Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Antidumping Duty Petition Covering Ultra-High Molecular Weight 
Polyethylene from the Republic of Korea.
---------------------------------------------------------------------------

Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate an AD investigation 
of imports of ultra-high polyethylene from Korea. 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 Initiation Checklist.

Export Price

    The petitioner based export price (EP) on the average unit values 
(AUVs) of the official U.S. import statistics obtained from the ITC's 
Dataweb (Dataweb). The petitioner made deductions from these AUVs for 
foreign inland freight expenses. The petitioner also based EP on an 
offer for sale from Korea Petrochemical Industry Corporation (KPIC) to 
a customer of the petitioner. The petitioner made deductions from this 
offer for sale for foreign inland freight expenses, foreign brokerage 
and handling charges, ocean freight expenses, marine insurance 
expenses, merchandise processing fees, U.S. brokerage and handling 
charges, and U.S. inland freight expenses.\26\
---------------------------------------------------------------------------

    \26\ See Initiation Checklist at 6-8.
---------------------------------------------------------------------------

Normal Value \27\
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    \27\ 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 constructed value 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.
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    The petitioner based NV on home market price quotes obtained 
through market research for ultra-high polyethylene produced in and 
sold, or offered for sale, in Korea within the POI.\28\ The petitioner 
deducted foreign inland freight expenses from the home market 
prices.\29\
---------------------------------------------------------------------------

    \28\ See Initiation Checklist at 6-8.
    \29\ Id.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of ultra-high polyethylene from Korea 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 ultra-high polyethylene from 
Korea range from 13.16 to 153.35 percent.\30\
---------------------------------------------------------------------------

    \30\ Id.
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Initiation of LTFV Investigation

    We find that the Petition and supplemental responses meet the 
requirements of section 732 of the Act. Therefore, we are initiating an 
AD investigation to determine whether imports of ultra-high 
polyethylene from Korea 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.

Respondent Selection

    Although Commerce normally relies on import data from using U.S. 
Customs and Border Protection import statistics to determine whether to 
select a limited number of producers/exporters for individual 
examination in AD investigations, the petitioner identified only one 
company in Korea, i.e., KPIC, as a producer/exporter of ultra-high 
polyethylene and provided independent, third-party information as 
support.\31\ We currently know of no additional producers/exporters of 
ultra-high polyethylene from Korea. Accordingly, Commerce intends to 
examine all known Korean producers/exporters (i.e., KPIC). 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 via ACCESS by 5:00 p.m. 
ET on the specified deadline.
---------------------------------------------------------------------------

    \31\ See Volume I of the Petition at 12 and Exhibit GEN-15, 
Volume II of the Petition at 4 and Exhibit AD-II-1; see also 
Petition Supplement at Exhibit AD-II-SUP-13.
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Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petition have been 
provided to the Government of Korea via ACCESS. To the extent 
practicable, we will attempt to provide a copy of the public version of 
the Petition to each exporter named in the Petition, 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 Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of ultra-high polyethylene from Korea are 
materially injuring, or threatening material injury to, a U.S. 
industry.\32\ A negative ITC determination will result in the 
investigation being terminated.\33\ Otherwise, this AD investigation 
will proceed according to statutory and regulatory time limits.
---------------------------------------------------------------------------

    \32\ See section 733(a) of the Act.
    \33\ 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) requires any 
party, when submitting factual information, to specify under which 
subsection of 19 CFR 351.102(b)(21) the information is being submitted 
\34\ 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

[[Page 17865]]

seeks to rebut, clarify, or correct.\35\ 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 this investigation.
---------------------------------------------------------------------------

    \34\ See 19 CFR 351.301(b).
    \35\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

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 constructed value under section 773(e) of the Act.\36\ 
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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    \36\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
---------------------------------------------------------------------------

    Neither section 773(e) of the Act nor 19 CFR 351.301(c)(2)(v) sets 
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 Commerce. 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 this investigation.

Certification Requirements

    Any party submitting factual information in an AD or countervailing 
duty proceeding must certify to the accuracy and completeness of that 
information.\37\ Parties must use the certification formats provided in 
19 CFR 351.303(g).\38\ Commerce intends to reject factual submissions 
if the submitting party does not comply with the applicable 
certification requirements.
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    \37\ See section 782(b) of the Act.
    \38\ See 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.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
Administrative Protective Order (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 this investigation 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 24, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The merchandise covered by the scope is ultra-high molecular 
weight polyethylene. Ultra-high molecular weight polyethylene is a 
linear polyethylene, in granular or powder form. It is defined by 
its melt mass-flow rate of <0.1 g/10 min, measured at 190 [deg]C and 
21.6 kg load, based on the methods and calculations set forth in the 
International Organization for Standardization (ISO) standards 
21304-1 and 21304-2. Ultra-high molecular weight polyethylene has a 
Chemical Abstract Service (CAS) registry number of 9002-88-4.
    The scope includes all ultra-high molecular weight polyethylene 
in granular or powder forms meeting the above specifications 
regardless of additives introduced in the manufacturing process. 
Ultra-high molecular weight polyethylene blended with other products 
is included in the scope of this investigation where ultra-high 
molecular weight polyethylene accounts for more than 50 percent, by 
actual weight, of the blend and the resulting blend maintains a melt 
mass-flow rate of <0.1 g/10 min.
    Excluded from the scope of the investigation is medical-grade 
ultra-high molecular weight polyethylene. Medical grade ultra-high 
molecular weight polyethylene has a minimum viscosity of 2,000 ml/g 
at a concentration of 0.02% at 135 [deg]C (275 [deg]F) in 
decahydronaphthalene and an elongational stress of 0.2 MPa or 
greater. Medical-grade ultra-high molecular weight polyethylene is 
further defined by its ash and trace element content, which shall 
not exceed the following maximum quantities as set forth in ISO-
5834-1: ash (125 mg/kg), titanium (40 mg/kg), calcium (5 mg/kg), 
chlorine (30 mg/kg), and aluminum (20 mg/kg). ISO 5834-1 further 
defines medical grade ultra-high molecular weight polyethylene by 
its particulate matter content, which requires that there shall be 
no more than three particles of contaminant per 300  20 
g tested. Each of the above criteria is calculated based on the 
standards and methods used in ISO 5834-1.
    Ultra-high molecular weight polyethylene is classifiable under 
the HTSUS subheadings 3901.10.1000 and 3901.20.1000. Although the 
HTSUS subheadings and CAS registry number are provided for 
convenience and customs purposes, the written description of the 
scope is dispositive.

[FR Doc. 2020-06589 Filed 3-30-20; 8:45 am]
BILLING CODE 3510-DS-P
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