Certain Epoxy Resins From Taiwan: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 74896-74898 [2024-20885]
Download as PDF
74896
Federal Register / Vol. 89, No. 178 / Friday, September 13, 2024 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[C–583–877]
Certain Epoxy Resins From Taiwan:
Preliminary Affirmative Countervailing
Duty Determination, and Alignment of
Final Determination With Final
Antidumping Duty Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) preliminarily
determines that countervailable
subsidies are being provided to
producers and exporters of certain
epoxy resins (epoxy resins) from Taiwan
for the period of investigation (POI)
January 1, 2023, through December 31,
2023. Interested parties are invited to
comment on this preliminary
determination.
DATES: Applicable September 13, 2024.
FOR FURTHER INFORMATION CONTACT: Ian
Riggs, AD/CVD Operations, Office IX,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–3810.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
This preliminary determination is
made in accordance with section 703(b)
of the Tariff Act of 1930, as amended
(the Act). Commerce published the
notice of initiation of this countervailing
duty (CVD) investigation on April 29,
2024.1 On May 28, 2024, Commerce
postponed the preliminary
determination until September 3, 2024.2
On July 22, 2024, Commerce tolled
certain deadlines in this administrative
proceeding by seven days.3 The
deadline for the preliminary
determination is now September 9,
2024.
For a complete description of the
events that followed the initiation of
this investigation, see the Preliminary
Decision Memorandum.4 A list of topics
khammond on DSKJM1Z7X2PROD with NOTICES
1 See
Certain Epoxy Resins from the People’s
Republic of China, India, the Republic of Korea,
and Taiwan: Initiation of Countervailing Duty
Investigations, 89 FR 33319 (April 29, 2024)
(Initiation Notice).
2 See Certain Epoxy Resins From the People’s
Republic of China, India, the Republic of Korea,
and Taiwan: Postponement of Preliminary
Determinations in the Countervailing Duty
Investigations, 89 FR 46061 (May 28, 2024).
3 See Memorandum, ‘‘Tolling of Deadlines for
Antidumping and Countervailing Duty
Proceedings,’’ dated July 22, 2024
4 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Determination of the
VerDate Sep<11>2014
17:53 Sep 12, 2024
Jkt 262001
discussed 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/FRNotices
ListLayout.aspx.
Scope of the Investigation
The products covered by this
investigation are epoxy resins. For a
complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to
Commerce’s regulations,5 the Initiation
Notice set aside a period of time for
parties to raise issues regarding product
coverage, (i.e., scope).6 We received
several comments concerning the scope
of this investigation, as well as in the
companion less-than-fair-value (LTFV)
and CVD investigations of epoxy resins,
as it appeared in the Initiation Notice.
We are currently evaluating the scope
comments filed by the interested
parties. We intend to issue our
preliminary decision regarding the
scope of the LTFV and CVD
investigations in the preliminary
determinations of the companion LTFV
investigations, the deadline for which is
November 6, 2024.7 We will incorporate
the scope decisions from the LTFV
investigations into the scope of the final
CVD determination for this investigation
after considering any relevant comments
submitted in scope case and rebuttal
briefs.8
Methodology
Commerce is conducting this
investigation in accordance with section
701 of the Act. For each of the subsidy
programs found countervailable,
Commerce preliminarily determines
Countervailing Duty Investigation of Certain Epoxy
Resins from Taiwan,’’ dated concurrently with, and
hereby adopted by, this notice (Preliminary
Decision Memorandum).
5 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
6 See Initiation Notice.
7 See Certain Epoxy Resins from the People’s
Republic of China, India, the Republic of Korea,
Taiwan, and Thailand: Postponement of
Preliminary Determinations in the Less-Than-FairValue Investigations, 89 FR 65583 (August 12,
2024).
8 The deadline for interested parties to submit
scope case and rebuttal briefs will be established in
the preliminary scope decision memorandum.
PO 00000
Frm 00030
Fmt 4703
Sfmt 4703
that there is a subsidy, i.e., a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient,
and that the subsidy is specific.9
Alignment
As noted in the Preliminary Decision
Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the
final CVD determination in this
investigation with the final
determination in the companion LTFV
investigation of epoxy resins from
Taiwan based on a request made by the
petitioner.10 Consequently, the final
CVD determination will be issued on
the same date as the final LTFV
determination, which is currently
scheduled to be issued no later than
January 21, 2025, unless postponed.
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of
the Act provide that in the preliminary
determination, Commerce shall
determine an estimated all-others rate
for companies not individually
examined. This rate shall be an amount
equal to the weighted average of the
estimated subsidy rates established for
those companies individually
examined, excluding any zero and de
minimis rates and any rates based
entirely under section 776 of the Act.
In this investigation, Commerce
calculated individual estimated
countervailable subsidy rates for Chang
Chun Plastics Co. Ltd. (CCPC) and Nan
Ya Plastics Corp. (Nan Ya) that are not
zero, de minimis, or based entirely on
facts otherwise available. Commerce
calculated the all-others rate using a
weighted average of the individual
estimated subsidy rates calculated for
the examined respondents using each
company’s publicly-ranged values for
the merchandise under consideration.11
9 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
10 See Petitioner’s Letter, ‘‘Petitioner’s Request to
Align Countervailing Duty Investigation Final
Determination with Antidumping Duty
Investigation Final Determination,’’ dated August
15, 2024.
11 With two respondents under examination,
Commerce normally calculates: (A) a weightedaverage of the estimated subsidy rates calculated for
the examined respondents; (B) a simple average of
the estimated subsidy rates calculated for the
examined respondents; and (C) a weighted-average
of the estimated subsidy rates calculated for the
examined respondents using each company’s
publicly-ranged U.S. sale values for the
merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate
closest to (A) as the most appropriate rate for all
other producers and exporters. See, e.g., Ball
Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results
E:\FR\FM\13SEN1.SGM
13SEN1
Federal Register / Vol. 89, No. 178 / Friday, September 13, 2024 / Notices
Preliminary Determination
Commerce preliminarily determines
that the following estimated
countervailable subsidy rates exist:
Verification
As provided in section 782(i)(1) of the
Act, Commerce intends to verify the
information relied upon in making its
final determination.
Subsidy rate
(percent ad
valorem)
Public Comment
All interested parties will have the
opportunity to submit scope case and
Chang Chun Plastics Co.
Ltd.12 .................................
3.32 rebuttal briefs on the preliminary
Nan Ya Plastics Corp. ..........
1.32 decision regarding the scope of the
All Others ..............................
2.33 LTFV and CVD investigations. The
deadlines to submit scope case and
rebuttal briefs will be provided in the
Suspension of Liquidation
preliminary scope decision
In accordance with section
memorandum. For all scope case and
703(d)(1)(B) and (d)(2) of the Act,
rebuttal briefs, parties must file
Commerce will direct U.S. Customs and
identical documents simultaneously on
Border Protection (CBP) to suspend
the records of the ongoing LTFV and
liquidation of entries of subject
CVD epoxy resins investigations. No
merchandise as described in the scope
new factual information or business
of the investigation section entered, or
proprietary information may be
withdrawn from warehouse, for
included in either scope case or rebuttal
consumption on or after the date of
publication of this notice in the Federal briefs.
Case briefs or other written comments
Register. Further, pursuant to 19 CFR
may be submitted to the Assistant
351.205(d), Commerce will instruct CBP
Secretary for Enforcement and
to require a cash deposit equal to the
Compliance no later than seven days
rates indicated above.
after the date on which the last
Disclosure
verification report is issued in this
investigation. Rebuttal briefs, limited to
Commerce intends to disclose its
issues raised in the case briefs, may be
calculations and analysis performed to
filed not later than five days after the
interested parties in this preliminary
date for filing case briefs.13 Interested
determination within five days of its
parties
who submit case briefs or
public announcement, or if there is no
rebuttal briefs in this proceeding must
public announcement, within five days
submit: (1) a table of contents listing
of the date of this notice in accordance
each issue; and (2) a table of
with 19 CFR 351.224(b).
authorities.14
Consistent with 19 CFR 351.224(e),
As provided under 19 CFR
Commerce will analyze and, if
351.309(c)(2) and (d)(2), in prior
appropriate, correct any timely
proceedings we have encouraged
allegations of significant ministerial
interested parties to provide an
errors by amending the preliminary
executive summary of their brief that
determination. However, consistent
with 19 CFR 351.224(d), Commerce will should be limited to five pages total,
not consider incomplete allegations that including footnotes. In this
do not address the significance standard investigation, we instead request that
interested parties provide at the
under 19 CFR 351.224(g) following the
beginning of their briefs a public,
preliminary determination. Instead,
Commerce will address such allegations executive summary for each issue raised
in the final determination together with in their briefs.15 Further, we request that
interested parties limit their executive
issues raised in the case briefs or other
summary of each issue to no more than
written comments.
450 words, not including citations. We
of Antidumping Duty Administrative Reviews, Final intend to use the executive summaries
Results of Changed-Circumstances Review, and
as the basis of the comment summaries
Revocation of an Order in Part, 75 FR 53661, 53662
included in the issues and decision
(September 1, 2010), and accompanying Issues and
memorandum that will accompany the
Decision Memorandum at Comment 1. As complete
publicly ranged sales data were available,
final determination in this investigation.
khammond on DSKJM1Z7X2PROD with NOTICES
Company
Commerce based the all-others rate on the publicly
ranged sales data of the mandatory respondents. For
a complete analysis of the data, see Memorandum,
‘‘Calculation of the Subsidy Rate for All Other
Companies,’’ dated concurrently with this notice.
12 As discussed in the Preliminary Decision
Memorandum, Commerce has found the following
companies to be cross-owned with Chang Chun
Plastics Co. Ltd.: Chang Chun Petrochemical Co.,
Ltd.; Dairen Chemical Corporation; Jinzhou
Technology Co., Ltd.; and Taiwan Prosperity
Chemical Corporation.
VerDate Sep<11>2014
17:53 Sep 12, 2024
Jkt 262001
13 See 19 CFR 351.309(d); see also Administrative
Protective Order, Service, and Other Procedures in
Antidumping and Countervailing Duty Proceedings,
88 FR 67069, 67077 (September 29, 2023) (APO and
Service Final Rule).
14 See 19 351.309(c)(2) and (d)(2).
15 We use the term ‘‘issue’’ here to describe an
argument that Commerce would normally address
in a comment of the Issues and Decision
Memorandum.
PO 00000
Frm 00031
Fmt 4703
Sfmt 4703
74897
We request that interested parties
include footnotes for relevant citations
in the executive summary of each issue.
Note that Commerce has amended
certain of its requirements pertaining to
the service of documents in 19 CFR
351.303(f).16
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.
U.S. International Trade Commission
Notification
In accordance with section 703(f) of
the Act, Commerce will notify the U.S.
International Trade Commission (ITC) of
its 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 epoxy
resins from Taiwan are materially
injuring, or threaten material injury to,
the U.S. industry.
Notification to Interested Parties
This determination is issued and
published pursuant to sections 703(f)
and 777(i) of the Act and 19 CFR
351.205(c).
Dated: September 9, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement
and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this
investigation is fully or partially uncured
epoxy resins, also known as epoxide resins,
polyepoxides, oxirane resins, ethoxyline
resins, diglycidyl ether of bisphenol,
(chloromethyl)oxirane, or aromatic
diglycidyl, which are polymers or
prepolymers containing epoxy groups (i.e.,
three-membered ring structures comprised of
two carbon atoms and one oxygen atom).
Epoxy resins range in physical form from low
viscosity liquids to solids. All epoxy resins
are covered by the scope of this investigation
16 See
E:\FR\FM\13SEN1.SGM
APO and Service Final Rule.
13SEN1
khammond on DSKJM1Z7X2PROD with NOTICES
74898
Federal Register / Vol. 89, No. 178 / Friday, September 13, 2024 / Notices
irrespective of physical form, viscosity,
grade, purity, molecular weight, or molecular
structure, and packaging.
Epoxy resins may contain modifiers or
additives, such as hardeners, curatives,
colorants, pigments, diluents, solvents,
thickeners, fillers, plasticizers, softeners,
flame retardants, toughening agents,
catalysts, Bisphenol F, and ultraviolet light
inhibitors, so long as the modifier or additive
has not chemically reacted so as to cure the
epoxy resin or convert it into a different
product no longer containing epoxy groups.
Such epoxy resins with modifiers or
additives are included in the scope where the
epoxy resin component comprises no less
than 30 percent of the total weight of the
product. The scope also includes blends of
epoxy resins with different types of epoxy
resins, with or without the inclusion of
modifiers and additives, so long as the
combined epoxy resin component comprises
at least 30 percent of the total weight of the
blend.
Epoxy resins that enter as part of a system
or kit with separately packaged co-reactants,
such as hardeners or curing agents, are
within the scope. The scope does not include
any separately packaged co-reactants that
would not fall within the scope if entered on
their own.
The scope includes merchandise matching
the above description that has been
processed in a third country, including by
commingling, diluting, introducing, or
removing modifiers or additives, or
performing any other processing that would
not otherwise remove the merchandise from
the scope of the investigation if performed in
the subject country.
The scope also includes epoxy resin that is
commingled or blended with epoxy resin
from sources not subject to this investigation.
Only the subject component of such
commingled products is covered by the scope
of this investigation.
Excluded from the scope are phenoxy
resins, which are polymers with a weight
greater than 11,000 Daltons, a Melt Flow
Index (MFI) at 200 °C (392 °F) no less than 4
grams and no greater than 70 grams per 10
min, Glass-Transition Temperatures (Tg) no
less than 80 °C (176 °F) and no greater than
100 °C (212 °F), and which contain no epoxy
groups other than at the terminal ends of the
molecule.
Excluded from the scope are certain paint
and coating products, which are blends,
mixtures, or other formulations of epoxy
resin, curing agent, and pigment, in any form,
packaged in one or more containers, wherein
(1) the pigment represents a minimum of 10
percent of the total weight of the product, (2)
the epoxy resin represents a maximum of 80
percent of the total weight of the product,
and (3) the curing agent represents 5 to 40
percent of the total weight of the product.
Excluded from the scope are
preimpregnated fabrics or fibers, often
referred to as ‘‘pre-pregs,’’ which are
composite materials consisting of fabrics or
fibers (typically carbon or glass) impregnated
with epoxy resin.
This merchandise is currently classifiable
under Harmonized Tariff Schedule of the
United States (HTSUS) subheading
VerDate Sep<11>2014
17:53 Sep 12, 2024
Jkt 262001
3907.30.0000. Subject merchandise may also
be entered under subheadings 3907.29.0000,
3824.99.9397, 3214.10.0020, 2910.90.9100,
2910.90.9000, 2910.90.2000, and
1518.00.4000. The HTSUS subheadings are
provided for convenience and customs
purposes only; the written description of the
scope is dispositive.
Appendix II
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Subsidies Valuation
V. Analysis of Programs
VI. Recommendation
[FR Doc. 2024–20885 Filed 9–12–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–533–884, C–570–081]
Glycine From India and the People’s
Republic of China: Final Results of the
Expedited First Sunset Reviews of the
Countervailing Duty Orders
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) finds that
revocation of the countervailing duty
orders on glycine from India and the
People’s Republic of China (China)
would be likely to lead to continuation
or recurrence of countervailable
subsidies at the levels as indicated in
the ‘‘Final Results of Sunset Reviews’’
section of this notice.
DATES: Applicable September 13, 2024.
FOR FURTHER INFORMATION CONTACT:
Theodora Mattei or Tyler Weinhold,
AD/CVD Operations, Office VI,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–4834
and (202) 482–3362 respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On June 21, 2019, Commerce
published the Orders in the Federal
Register.1 On May 1, 2024, Commerce
published the notice of initiation of the
first sunset reviews of the Orders,
pursuant to section 751(c) of the Tariff
Act of 1930, as amended (the Act).2 On
1 See Glycine from India and the People’s
Republic of China: Countervailing Duty Orders, 84
FR 29173 (June 21, 2019) (collectively, the Orders).
2 See Initiation of Five-Year (Sunset) Reviews, 89
FR 35073 (May 1, 2024).
PO 00000
Frm 00032
Fmt 4703
Sfmt 4703
May 13, 2024, Commerce received a
timely notice of intent to participate in
the sunset reviews of both Orders from
Deer Park Glycine and Chattem
Chemicals, Inc. (collectively, domestic
interested parties) within the 15-day
deadline specified in 19 CFR
351.218(d)(1)(i).3 Each claimed
interested party status under section
771(9)(C) of the Act as a domestic
producer engaged in the production in
the United States of glycine.
On May 20, 2024, Commerce received
adequate substantive responses from the
domestic interested parties within the
30-day deadline specified in 19 CFR
351.218(d)(3)(i).4 Commerce did not
receive a substantive response from any
other interested party in these
proceedings, and no party requested a
hearing. In accordance with section
751(c)(3)(B) of the Act, because
Commerce did not receive a substantive
response from any respondent party,
pursuant to 19 CFR 351.218(e)(1)(ii)(B)
and (e)(1)(ii)(C), respectively,
respectively, we determined that the
respondent interested parties did not
provide an adequate response to the
Initiation Notice. Therefore, on July 21,
2024, Commerce notified the U.S.
International Trade Commission that it
did not receive an adequate substantive
response from respondent interested
parties at that it would conduct
expedited (120-day) sunset reviews of
the Orders, pursuant to section
751(c)(3)(B) of the Act and 19 CFR
351.218(e)(1)(ii)(C)(2).5 On July 22,
2024, Commerce tolled certain
deadlines in these administrative
proceedings by seven days.6 The
deadline for the final results of these
sunset reviews is now September 5,
2024.
Scope of the Orders
The product covered by these Orders
is glycine at any purity level or grade
from India and China. For a complete
description of the scope of these Orders,
see the Issues and Decision
Memorandum.7
3 See Domestic Interested Parties’ Letter, ‘‘Notice
of Intent to Participate,’’ dated May 13, 2024.
4 See the Domestic Interested Parties’ Letters,
‘‘Sunset Review (1st Review) of the Countervailing
Duty Order on Glycine from India; Substantive
Response to the Notice of Initiation,’’ dated May 20,
2024; and ‘‘Sunset Review (1st Review) of the
Countervailing Duty Order on Glycine from the
People’s Republic of China: Substantive Response
to the Notice of Initiation,’’ dated May 20, 2024.
5 See Commerce’s Letter, ‘‘Sunset Reviews
Initiated on May 1, 2024,’’ dated June 21, 2024.
6 See Memorandum, ‘‘Tolling of Deadlines for
Antidumping and Countervailing Duty
Proceedings,’’ dated July 22, 2024.
7 See Memorandum, ‘‘Decision Memorandum for
the Final Results of the Expedited First Sunset
Reviews of the Countervailing Duty Orders on
E:\FR\FM\13SEN1.SGM
13SEN1
Agencies
[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Notices]
[Pages 74896-74898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-20885]
[[Page 74896]]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-583-877]
Certain Epoxy Resins From Taiwan: Preliminary Affirmative
Countervailing Duty Determination, and Alignment of Final Determination
With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain epoxy resins (epoxy resins) from
Taiwan for the period of investigation (POI) January 1, 2023, through
December 31, 2023. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable September 13, 2024.
FOR FURTHER INFORMATION CONTACT: Ian Riggs, AD/CVD Operations, Office
IX, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-3810.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this countervailing duty (CVD)
investigation on April 29, 2024.\1\ On May 28, 2024, Commerce postponed
the preliminary determination until September 3, 2024.\2\ On July 22,
2024, Commerce tolled certain deadlines in this administrative
proceeding by seven days.\3\ The deadline for the preliminary
determination is now September 9, 2024.
---------------------------------------------------------------------------
\1\ See Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, and Taiwan: Initiation of
Countervailing Duty Investigations, 89 FR 33319 (April 29, 2024)
(Initiation Notice).
\2\ See Certain Epoxy Resins From the People's Republic of
China, India, the Republic of Korea, and Taiwan: Postponement of
Preliminary Determinations in the Countervailing Duty
Investigations, 89 FR 46061 (May 28, 2024).
\3\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024
---------------------------------------------------------------------------
For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\4\ A list of topics discussed 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.
---------------------------------------------------------------------------
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Certain
Epoxy Resins from Taiwan,'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are epoxy resins. For a
complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e., scope).\6\ We received
several comments concerning the scope of this investigation, as well as
in the companion less-than-fair-value (LTFV) and CVD investigations of
epoxy resins, as it appeared in the Initiation Notice. We are currently
evaluating the scope comments filed by the interested parties. We
intend to issue our preliminary decision regarding the scope of the
LTFV and CVD investigations in the preliminary determinations of the
companion LTFV investigations, the deadline for which is November 6,
2024.\7\ We will incorporate the scope decisions from the LTFV
investigations into the scope of the final CVD determination for this
investigation after considering any relevant comments submitted in
scope case and rebuttal briefs.\8\
---------------------------------------------------------------------------
\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice.
\7\ See Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, Taiwan, and Thailand:
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 89 FR 65583 (August 12, 2024).
\8\ The deadline for interested parties to submit scope case and
rebuttal briefs will be established in the preliminary scope
decision memorandum.
---------------------------------------------------------------------------
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\9\
---------------------------------------------------------------------------
\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------
Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion LTFV investigation of epoxy resins
from Taiwan based on a request made by the petitioner.\10\
Consequently, the final CVD determination will be issued on the same
date as the final LTFV determination, which is currently scheduled to
be issued no later than January 21, 2025, unless postponed.
---------------------------------------------------------------------------
\10\ See Petitioner's Letter, ``Petitioner's Request to Align
Countervailing Duty Investigation Final Determination with
Antidumping Duty Investigation Final Determination,'' dated August
15, 2024.
---------------------------------------------------------------------------
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for Chang Chun Plastics Co. Ltd. (CCPC)
and Nan Ya Plastics Corp. (Nan Ya) that are not zero, de minimis, or
based entirely on facts otherwise available. Commerce calculated the
all-others rate using a weighted average of the individual estimated
subsidy rates calculated for the examined respondents using each
company's publicly-ranged values for the merchandise under
consideration.\11\
---------------------------------------------------------------------------
\11\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see Memorandum, ``Calculation of the Subsidy Rate for All Other
Companies,'' dated concurrently with this notice.
---------------------------------------------------------------------------
[[Page 74897]]
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
------------------------------------------------------------------------
Subsidy rate
Company (percent ad
valorem)
------------------------------------------------------------------------
Chang Chun Plastics Co. Ltd.\12\........................ 3.32
Nan Ya Plastics Corp.................................... 1.32
All Others.............................................. 2.33
------------------------------------------------------------------------
Suspension of Liquidation
---------------------------------------------------------------------------
\12\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Chang Chun Plastics Co. Ltd.: Chang Chun Petrochemical Co., Ltd.;
Dairen Chemical Corporation; Jinzhou Technology Co., Ltd.; and
Taiwan Prosperity Chemical Corporation.
---------------------------------------------------------------------------
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
All interested parties will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the LTFV and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum. For all scope case and rebuttal briefs, parties
must file identical documents simultaneously on the records of the
ongoing LTFV and CVD epoxy resins investigations. No new factual
information or business proprietary information may be included in
either scope case or rebuttal briefs.
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in the
case briefs, may be filed not later than five days after the date for
filing case briefs.\13\ Interested parties who submit case briefs or
rebuttal briefs in this proceeding must submit: (1) a table of contents
listing each issue; and (2) a table of authorities.\14\
---------------------------------------------------------------------------
\13\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\14\ See 19 351.309(c)(2) and (d)(2).
---------------------------------------------------------------------------
As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\15\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\16\
---------------------------------------------------------------------------
\15\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\16\ See APO and Service Final Rule.
---------------------------------------------------------------------------
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.
U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its 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 epoxy
resins from Taiwan are materially injuring, or threaten material injury
to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: September 9, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this investigation is fully or
partially uncured epoxy resins, also known as epoxide resins,
polyepoxides, oxirane resins, ethoxyline resins, diglycidyl ether of
bisphenol, (chloromethyl)oxirane, or aromatic diglycidyl, which are
polymers or prepolymers containing epoxy groups (i.e., three-
membered ring structures comprised of two carbon atoms and one
oxygen atom). Epoxy resins range in physical form from low viscosity
liquids to solids. All epoxy resins are covered by the scope of this
investigation
[[Page 74898]]
irrespective of physical form, viscosity, grade, purity, molecular
weight, or molecular structure, and packaging.
Epoxy resins may contain modifiers or additives, such as
hardeners, curatives, colorants, pigments, diluents, solvents,
thickeners, fillers, plasticizers, softeners, flame retardants,
toughening agents, catalysts, Bisphenol F, and ultraviolet light
inhibitors, so long as the modifier or additive has not chemically
reacted so as to cure the epoxy resin or convert it into a different
product no longer containing epoxy groups. Such epoxy resins with
modifiers or additives are included in the scope where the epoxy
resin component comprises no less than 30 percent of the total
weight of the product. The scope also includes blends of epoxy
resins with different types of epoxy resins, with or without the
inclusion of modifiers and additives, so long as the combined epoxy
resin component comprises at least 30 percent of the total weight of
the blend.
Epoxy resins that enter as part of a system or kit with
separately packaged co-reactants, such as hardeners or curing
agents, are within the scope. The scope does not include any
separately packaged co-reactants that would not fall within the
scope if entered on their own.
The scope includes merchandise matching the above description
that has been processed in a third country, including by
commingling, diluting, introducing, or removing modifiers or
additives, or performing any other processing that would not
otherwise remove the merchandise from the scope of the investigation
if performed in the subject country.
The scope also includes epoxy resin that is commingled or
blended with epoxy resin from sources not subject to this
investigation. Only the subject component of such commingled
products is covered by the scope of this investigation.
Excluded from the scope are phenoxy resins, which are polymers
with a weight greater than 11,000 Daltons, a Melt Flow Index (MFI)
at 200 [deg]C (392 [deg]F) no less than 4 grams and no greater than
70 grams per 10 min, Glass-Transition Temperatures (Tg) no less than
80 [deg]C (176 [deg]F) and no greater than 100 [deg]C (212 [deg]F),
and which contain no epoxy groups other than at the terminal ends of
the molecule.
Excluded from the scope are certain paint and coating products,
which are blends, mixtures, or other formulations of epoxy resin,
curing agent, and pigment, in any form, packaged in one or more
containers, wherein (1) the pigment represents a minimum of 10
percent of the total weight of the product, (2) the epoxy resin
represents a maximum of 80 percent of the total weight of the
product, and (3) the curing agent represents 5 to 40 percent of the
total weight of the product.
Excluded from the scope are preimpregnated fabrics or fibers,
often referred to as ``pre-pregs,'' which are composite materials
consisting of fabrics or fibers (typically carbon or glass)
impregnated with epoxy resin.
This merchandise is currently classifiable under Harmonized
Tariff Schedule of the United States (HTSUS) subheading
3907.30.0000. Subject merchandise may also be entered under
subheadings 3907.29.0000, 3824.99.9397, 3214.10.0020, 2910.90.9100,
2910.90.9000, 2910.90.2000, and 1518.00.4000. The HTSUS subheadings
are provided for convenience and customs purposes only; the written
description of the scope is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Subsidies Valuation
V. Analysis of Programs
VI. Recommendation
[FR Doc. 2024-20885 Filed 9-12-24; 8:45 am]
BILLING CODE 3510-DS-P