Ultra-High Molecular Weight Polyethylene From the Republic of Korea: Initiation of Less-Than-Fair-Value Investigation, 17861-17865 [2020-06589]
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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
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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-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:
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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
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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.
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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.
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).
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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’’).
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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
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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).
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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
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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.
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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
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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
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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.
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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]
-----------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\5\ See Supplemental Questionnaire and Second Supplemental
Questionnaire; Petition Supplement at Exhibit GEN-SUP-11; and
Petition Second Supplement at Exhibit GEN-2SUP-1.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
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\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.
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\34\ See 19 CFR 351.301(b).
\35\ 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 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).
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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.
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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