Acrylonitrile-Butadiene Rubber From France: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Partial Affirmative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures, 5787-5790 [2022-02112]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 87, Number 22 (Wednesday, February 2, 2022)]
[Notices]
[Pages 5787-5790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02112]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-427-832]


Acrylonitrile-Butadiene Rubber From France: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value and Partial 
Affirmative Determination of Critical Circumstances, Postponement of 
Final Determination, and Extension of Provisional Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that acrylonitrile-butadiene rubber (AB rubber) from France is being, 
or is likely to be, sold in the United States at less than fair value 
(LTFV). Commerce also preliminarily determines that critical 
circumstances exist with respect to certain imports of subject 
merchandise. The period of investigation is April 1, 2020, through 
March 31, 2021. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable February 2, 2022.

FOR FURTHER INFORMATION CONTACT: Patrick Barton, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0012.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on July 27, 
2021.\1\ On November 17, 2021, Commerce postponed the preliminary 
determination in this investigation from December 7, 2021, to January 
26, 2022.\2\
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    \1\ See Acrylonitrile-Butadiene Rubber from France, the Republic 
of Korea, and Mexcio: Initiation of Less-Than-Fair-Value 
Investigations, 86 FR 40192 (July 27, 2021) (Initiation Notice).
    \2\ See Acrylonitrile-Butadiene Rubber from France, the Republic 
of Korea, and Mexico: Postponement of Preliminary Determinations in 
the Less-Than-Fair Value Investigations, 86 FR 64185 (November 17, 
2021).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics included in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of 
Acrylonitrile-Butadiene Rubber from France,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).

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[[Page 5788]]

Scope of the Investigation

    The product covered by this investigation is AB rubber from France. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ in 
the Initiation Notice, Commerce set aside a period of time for parties 
to raise issues regarding product coverage (i.e., scope).\5\ Certain 
interested parties commented on the scope of this investigation as it 
appeared in the Initiation Notice. For a summary of the product 
coverage comments and rebuttal responses submitted to the record for 
this investigation, and accompanying analysis of all comments timely 
received, see the Preliminary Scope Decision Memorandum.\6\ Based on 
Commerce's analysis of the parties' comments, Commerce is preliminarily 
modifying the scope language as it appeared in the Initiation Notice. 
See the revised scope in Appendix I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 86 FR at 40193.
    \6\ See Memorandum, ``Antidumping Duty Investigations of 
Acrylonitrile-Butadiene Rubber from France, the Republic of Korea, 
and Mexico: Preliminary Scope Decision Memorandum,'' dated 
concurrently with this notice (Preliminary Scope Decision 
Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated constructed export 
prices in accordance with section 772(b) of the Act. Normal value (NV) 
is calculated in accordance with section 773 of the Act. For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.

Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    On January 5, 2022, the petitioner \7\ timely filed a critical 
circumstances allegation, pursuant to section 733(e)(1) of the Act and 
19 CFR 351.206(c)(1), alleging that critical circumstances exist with 
respect to imports of the subject merchandise from France.\8\ Section 
733(e)(1) of the Act provides that Commerce will preliminarily 
determine that critical circumstances exist in an LTFV investigation if 
there is a reasonable basis to believe or suspect that: (A) there is a 
history of dumping and material injury by reason of dumped imports in 
the United States or elsewhere of the subject merchandise, or the 
person by whom, or for whose account, the merchandise was imported knew 
or should have known that the exporter was selling the subject 
merchandise at less than its fair value and that there was likely to be 
material injury by reason of such sales; and (B) there have been 
massive imports of the subject merchandise over a relatively short 
period.
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    \7\ The petitioner in this investigation is Zeon Chemicals L.P. 
and Zeon GP, LLC (collectively, the petitioner).
    \8\ See Petitioner's Letter, ``Acrylonitrile-Butadiene Rubber 
from France: Petitioner's Allegation of Critical Circumstances,'' 
dated January 5, 2022.
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    In accordance with section 733(e) of the Act and 19 CFR 351.206, 
Commerce preliminarily determines that critical circumstances do not 
exist with respect to imports of AB rubber produced and exported by 
Arlanxeo Emulsion Rubber France S.A.S. (Arlanxeo France). Furthermore, 
we preliminarily determine that critical circumstances exist with 
respect to imports of AD Rubber produced and exported by all other 
producers and exporters from France. For a full description of 
Commerce's preliminary critical circumstances determination, see the 
Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that 
in the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    In this investigation, Commerce preliminarily calculated an 
individual estimated weighted-average dumping margin for Arlanxeo 
France, the sole mandatory respondent, that is not zero, de minimis, or 
based entirely on facts otherwise available. Consequently, the rate 
calculated for Arlanxeo France is also assigned as the rate for all 
other producers and exporters in France, pursuant to section 
735(c)(5)(A) of the Act.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
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Arlanxeo Emulsion Rubber France S.A.S.......................      164.13
All Others..................................................      164.13
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise described in Appendix I on or after 
the date of publication of this notice in the Federal Register. 
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the estimated weighted-average dumping margin or the estimated all-
others rate, as follows: (1) The cash deposit rate for the respondents 
listed above will be equal to the company-specific estimated weighted-
average dumping margins determined in this preliminary determination; 
(2) if the exporter is not a respondent identified above, but the 
producer is, then the cash deposit rate will be equal to the company-
specific estimated weighted-average dumping margin established for that 
producer of the subject merchandise; and (3) the cash deposit rate for 
all other producers and exporters will be equal to the all-others 
estimated weighted-average dumping margin.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, the suspension of liquidation 
shall apply to unliquidated entries of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of: (a) 
The date which is 90 days before the date on which the suspension of 
liquidation was first ordered; or (b) the date on which notice of 
initiation of the investigation was published. As noted above, Commerce 
preliminarily finds that critical circumstances exist for imports of 
subject merchandise produced and exported by all other producers and 
exporters from France. In accordance with section 733(e)(2)(A) of the 
Act, the suspension of liquidation shall apply to unliquidated entries 
of shipments of AB rubber that were produced and exported by all other 
producers and exporters that were entered, or withdrawn from warehouse, 
for consumption on or after the date which is 90 days before the 
publication date of this notice in the Federal Register.

[[Page 5789]]

    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose to interested parties any calculations 
performed in connection with this preliminary determination within five 
days of its public announcement or, if there is no public announcement, 
within five days of the date of publication of this notice in 
accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce is unable to conduct 
on-site verification in this investigation. Accordingly, we intend to 
verify the information relied upon in making the final determination 
through alternative means in lieu of an on-site verification.

Public Comment

    The deadlines for the submission of case and rebuttal briefs with 
respect to scope issues are specified in the Preliminary Scope Decision 
Memorandum. Interested parties will be notified of the deadline for the 
submission of case briefs with respect to non-scope issues at a later 
date. Rebuttal briefs, limited to issues raised in non-scope related 
case briefs, may be submitted no later than seven days after the 
deadline date for case briefs.\9\ Pursuant to 19 CFR 351.309(c)(2) and 
(d)(2), parties who submit case briefs or rebuttal briefs in this 
investigation are encouraged to submit with each argument: (1) A 
statement of the issue; (2) a brief summary of the argument; and (3) a 
table of authorities. Note that Commerce has temporarily modified 
certain of its requirements for serving documents containing business 
proprietary information until further notice.\10\
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    \9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \10\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date of the 
hearing.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination in the Federal Register 
if, in the event of an affirmative preliminary determination, a request 
for such postponement is made by exporters who account for a 
significant proportion of exports of the subject merchandise, or in the 
event of a negative preliminary determination, a request for such 
postponement is made by the petitioner. Section 351.210(e)(2) of 
Commerce's regulations requires that a request by exporters for 
postponement of the final determination be accompanied by a request for 
extension of provisional measures from a four-month period to a period 
not more than six months in duration.
    On December 20, 2021, pursuant to 19 CFR 351.210(e), Arlanxeo 
France requested that Commerce postpone the final determination and 
that provisional measures be extended to a period not to exceed six 
months.\11\ In accordance with sections 735(a)(2)(A) and 733(d)(3) of 
the Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary 
determination is affirmative; (2) the requesting exporter accounts for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
pursuant to section 735(a)(2) of the Act, Commerce will make its final 
determination no later than 135 days after the date of publication of 
this preliminary determination.
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    \11\ See Arlanxeo France's Letter, ``Acrylonitrile-Butadiene 
Rubber from France, Case No. A-427-832: Request to Postpone Final 
Determination,'' dated December 20, 2021.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether imports of AB rubber from France are materially injuring, or 
threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c) and 19 
CFR 351.210(g).

    Dated: January 26, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The product covered by this investigation is commonly referred 
to as acrylonitrile butadiene rubber or nitrile rubber (AB Rubber). 
AB Rubber is a synthetic rubber produced by the emulsion 
polymerization of butadiene and acrylonitrile with or without the 
incorporation of a third component selected from methacrylic acid or 
isoprene. This scope covers AB Rubber in solid or non-aqueous liquid 
form. The scope also includes carboxylated AB Rubber.
    Excluded from the scope of this investigation is AB Rubber in 
latex form (commonly classified under Harmonized Tariff Schedule of 
the United States (HTSUS) subheading 4002.51.0000). Latex AB Rubber 
is commonly either (a) acrylonitrile/butadiene polymer in latex form 
or (b) acrylonitrile/butadiene/methacrylic acid polymer in latex 
form. The broader definition of latex refers to a water emulsion of 
a synthetic rubber obtained by polymerization.
    Also excluded from the scope of this investigation is: (a) AB 
Rubber containing additives incorporated during the compounding, 
mixing, molding, or use of AB Rubber comprising greater than twenty 
percent of the total weight of the product. Additives would include, 
but are not limited to, fillers (e.g., carbon black, silica, clay); 
reinforcement agents (e.g., fibers, carbon black, silica); 
vulcanization agents (e.g., sulfur, sulfur complexes, peroxide); or 
AB Rubber containing extension oils making up greater than forty 
percent of the total weight of the product. Such products would be 
generally classified under HTSUS subheading 4005; (b) AB Rubber 
containing polyvinyl chloride (PVC) making up greater than twenty 
percent of total weight of the product; (c) hydrogenated AB Rubber 
(commonly referred to as AB Rubber)

[[Page 5790]]

produced by subsequent dissolution and hydrogenation of AB Rubber; 
and (d) reactive liquid polymers containing acrylonitrile and 
butadiene with amine, epoxy, carboxyl or methacrylate vinyl chemical 
functionality.
    Subject merchandise includes material matching the above 
description that has been finished, packaged, or otherwise processed 
in a third country, including by modifying physical form or 
packaging with another product, or performing any other finishing, 
packaging, or processing that would not otherwise remove the 
merchandise from the scope of the investigation if performed in the 
country of manufacture of the AB Rubber.
    The merchandise subject to this investigation is classified in 
the HTSUS at subheading 4002.59.0000. While the HTSUS subheading 
numbers are provided for convenience and customs purposes, the 
written description of the merchandise under investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Discussion of the Methodology
V. Date of Sale
VI. Product Comparisons
VII. Constructed Export Price
VIII. Normal Value
IX. Preliminary Determination of Critical Circumstances
X. Currency Conversion
XI. Recommendation

[FR Doc. 2022-02112 Filed 2-1-22; 8:45 am]
BILLING CODE 3510-DS-P