Certain Epoxy Resins From the Republic of Korea: Preliminary Negative Countervailing Duty Determination, Preliminary Negative Critical Circumstances Determination and Alignment of Final Determination With Final Antidumping Duty Determination, 74912-74915 [2024-20886]

Download as PDF khammond on DSKJM1Z7X2PROD with NOTICES 74912 Federal Register / Vol. 89, No. 178 / Friday, September 13, 2024 / Notices examined sales to the total entered value of those same sales in accordance with 19 CFR 351.212(b)(1). We intend to instruct CBP to assess antidumping duties on all appropriate entries covered by this review when the importerspecific assessment rate calculated in the final results of this review is not zero or de minimis. Where either PMB Silicon’s weighted-average dumping margin is zero or de minimis within the meaning of 19 CFR 351.106(c), or an importer-specific assessment rate is zero or de minimis in the final results of this review, we intend to instruct CBP to liquidate the appropriate entries without regard to antidumping duties in accordance with 19 CFR 351.106(c)(2). The final results of this review shall be the basis for the assessment of antidumping duties on entries of merchandise covered by this review and for future deposits of estimated duties, where applicable.12 In accordance with Commerce’s ‘‘automatic assessment’’ practice, for entries of subject merchandise during the POR produced by PMB Silicon for which PMB Silicon did not know that the merchandise was destined for the United States, we will instruct CBP to liquidate those entries at the all-others rate established in the original less-thanfair-value (LTFV) investigation (i.e., 12.27 percent),13 if there is no rate for the intermediate company(ies) involved in the transaction.14 Commerce intends to issue instructions to CBP no earlier than 35 days after the publication date of the final results of this review in the Federal Register. If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired (i.e., within 90 days of publication). margin established in the final results of this administrative review; (2) for merchandise exported by producers or exporters not covered in this review but covered in a prior segment of the proceeding, the cash deposit rate will continue to be the company-specific rate published for the most recentlycompleted segment of this proceeding in which they were reviewed; (3) if the exporter is not a firm covered in this review, or the original investigation, but the producer is, then the cash deposit rate will be the rate established for the most recently-completed segment of this proceeding for the producer of the merchandise; (4) the cash deposit rate for all other producers or exporters will continue to be 12.27 percent, the allothers rate established in the LTFV investigation.15 The cash deposit requirements, when imposed, shall remain in effect until further notice. Cash Deposit Requirements The following cash deposit requirements will be effective upon publication in the Federal Register of the notice of final results of this administrative review for all shipments of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication, as provided by section 751(a)(2)(C) of the Act: (1) the cash deposit rate for PMB Silicon will be equal to the weighted-average dumping Notification to Interested Parties 12 See section 751(a)(2)(C) of the Act. Order, 86 FR at 46678. 14 For a full description of this practice, see Antidumping and Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). 13 See VerDate Sep<11>2014 17:53 Sep 12, 2024 Jkt 262001 Final Results of Review Unless extended, Commerce intends to issue the final results of this administrative review, including the results of its analysis of the issues raised in any written briefs, not later than 120 days after the date of publication of this notice, pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h)(1). Notification to Importers This notice serves as a preliminary reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during the POR. Failure to comply with this requirement could result in Commerce’s presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties. Commerce is issuing and publishing these results in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(4). Dated: September 6, 2024. Abdelali Elouaradia, Deputy Assistant Secretary for Enforcement and Compliance. Appendix—List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope of the Order IV. Discussion of the Methodology V. Currency Conversion 15 See PO 00000 Order, 86 FR at 46678. Frm 00046 Fmt 4703 Sfmt 4703 VI. Recommendation [FR Doc. 2024–20774 Filed 9–12–24; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–580–920] Certain Epoxy Resins From the Republic of Korea: Preliminary Negative Countervailing Duty Determination, Preliminary Negative Critical Circumstances 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 not being provided to producers and exporters of Certain Epoxy Resins (epoxy resins) from the Republic of Korea (Korea). The period of investigation is 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: Thomas Martin or Benjamin Blythe, AD/ CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–3936 or (202) 482–3457, respectively. AGENCY: 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 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 46016 (May 28, 2024). E:\FR\FM\13SEN1.SGM 13SEN1 Federal Register / Vol. 89, No. 178 / Friday, September 13, 2024 / Notices 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 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. 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. khammond on DSKJM1Z7X2PROD with NOTICES 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 other 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 3 See Memorandum, ‘‘Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,’’ dated July 22, 2024. 4 See Memorandum, ‘‘Decision Memorandum for the Preliminary Negative Determination in the Countervailing Duty Investigation of Certain Epoxy Resins from the Republic of Korea,’’ 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) (LTFV Prelim Postponement). VerDate Sep<11>2014 18:37 Sep 12, 2024 Jkt 262001 after considering any relevant comments submitted in scope case and rebuttal briefs.8 following estimated countervailable subsidy rates exist: Methodology Company 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 Preliminary Negative Determination of Critical Circumstances In accordance with section 703(e)(1) of the Act, Commerce preliminarily determines that critical circumstances do not exist with respect to imports of epoxy resins from Korea for Kukdo Chemical Co., Ltd. (Kukdo), Kumho P&B Chemicals Inc. (Kumho), all other exporters or producers not individually examined. For a full description of the methodology and results of Commerce’s analysis, see the Preliminary Decision Memorandum. 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 with the final determination in the companion LTFV investigation of epoxy resins from Korea 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.11 Preliminary Determination For this preliminary determination, Commerce calculated de minimis estimated countervailable subsidies for all individually examined producers/ exporters of the subject merchandise. Consistent with section 703(b)(4)(A) of the Act, Commerce has disregarded the de minimis rates. Commerce preliminarily determines that the 8 The deadline for interested parties to submit scope case and rebuttal briefs will be established in the preliminary scope decision memorandum. 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. The petitioner is the U.S. Epoxy Resin Producers Ad Hoc Coalition. 11 See LTFV Prelim Postponement. PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 74913 Kukdo Chemical Co., Ltd.12 ..... Kumho P&B Chemicals Inc.13 .. Subsidy rate (percent ad valorem) * 0.74 * 0.89 * De minimis. Consistent with section 703(d) of the Act, Commerce has not calculated an estimated weighted-average subsidy rate for all other producers/exporters because it has not made an affirmative preliminary determination Suspension of Liquidation Because Commerce preliminarily determines that no countervailable subsidies are being provided to the production or exportation of subject merchandise, Commerce will not direct U.S. Customs and Border Protection to suspend liquidation of any such entries. Disclosure Commerce intends to disclose to interested parties the 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). 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 12 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Kukdo Chemical Co., Ltd.: Kukdo Finechem Co., Ltd. 13 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Kumho P&B Chemicals Inc.: Kumho Petrochemical Co. Ltd. and Chemoil Corporation. E:\FR\FM\13SEN1.SGM 13SEN1 74914 Federal Register / Vol. 89, No. 178 / Friday, September 13, 2024 / Notices khammond on DSKJM1Z7X2PROD with NOTICES 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.14 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.15 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.16 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).17 Pursuant to 19 CFR 351.310(c), interested parties who wish to request a 14 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). 15 See 19 351.309(c)(2) and (d)(2). 16 We use the term ‘‘issue’’ here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum. 17 See APO and Service Final Rule. VerDate Sep<11>2014 17:53 Sep 12, 2024 Jkt 262001 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 75 days after the final determination whether imports of epoxy resins from Korea 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 these investigations 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 PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 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 ‘‘prepregs,’’ 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. E:\FR\FM\13SEN1.SGM 13SEN1 Federal Register / Vol. 89, No. 178 / Friday, September 13, 2024 / Notices Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Injury Test IV. Preliminary Negative Determination of Critical Circumstances V. Subsidies Valuation VI. Diversification of Korea’s Economy VII. Analysis of Programs VIII. Recommendation [FR Doc. 2024–20886 Filed 9–12–24; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–580–835] Stainless Steel Sheet and Strip in Coils From the Republic of Korea: Preliminary Results and Intent To Rescind, in Part, of Countervailing Duty Administrative Review; 2022 Enforcement and Compliance, International Trade Administration, Department of Commerce. AGENCY: The U.S. Department of Commerce (Commerce) preliminarily determines that certain exporters/ producers of stainless steel sheet and strip in coils (SSSS in coils) from the Republic of Korea (Korea) received countervailable subsidies during the period of review (POR) January 1, 2022, through December 31, 2022. We invite interested parties to comment on these preliminary results. SUMMARY: DATES: Applicable September 13, 2024. FOR FURTHER INFORMATION CONTACT: Scope of the Order 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. The product covered by this Order is SSSS in coils. For a complete description of the scope of the Order, see the Preliminary Decision Memorandum. SUPPLEMENTARY INFORMATION: 2 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 88 FR 71829 (October 18, 2023). 3 See Memorandum, ‘‘Respondent Selection,’’ dated January 18, 2024. 4 See Memorandum, ‘‘Selection of Additional Mandatory Respondent for Individual Examination,’’ dated February 8, 2024. 5 See Memorandum, ‘‘Extension of Deadline for Preliminary Results of Countervailing Duty Administrative Review,’’ dated April 17, 2024. 6 See Memorandum, ‘‘Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,’’ dated July 22, 2024. 7 See Memorandum, ‘‘Decision Memorandum for the Preliminary Results of the Administrative Review of the Countervailing Duty Order on Stainless Steel Sheet and Strip in Coils from the Republic of Korea; 2022,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). Background khammond on DSKJM1Z7X2PROD with NOTICES December 31, 2022.2 On January 18, 2024, Commerce selected Geumok Tech. Co., Ltd. (Geumok Tech) and Hyundai Steel Company (Hyundai Steel), as the mandatory respondents in this administrative review.3 Because Geumok Tech failed to respond to the initial questionnaire, on February 8, 2024, Commerce selected Hyundai BNG Steel Co. (Hyundai BNG) as an additional mandatory respondent in this administrative review.4 On April 17, 2024, Commerce extended the deadline for issuance of the preliminary results of this review until August 30, 2024, in accordance with 19 CFR 351.213(h)(2).5 On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days.6 The deadline for the preliminary results is now September 6, 2024. For a complete description of the events that followed the initiation of this review, see the Preliminary Decision Memorandum.7 A list of topics discussed in the Preliminary Decision Memorandum is included in an appendix 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. On August 6, 1999, Commerce published in the Federal Register the countervailing duty (CVD) order on SSSS in coils from Korea.1 On October 18, 2023, Commerce published in the Federal Register its initiation of the CVD administrative review of the Order for the period of January 1, 2022, to 1 See Amended Final Determination: Stainless Steel Sheet and Strip in Coils from the Republic of Korea; and Notice of Countervailing Duty Orders: Stainless Steel Sheet and Strip in Coils from France, Italy, and the Republic of Korea, 64 FR 42923 (August 6, 1999) (Order). VerDate Sep<11>2014 17:53 Sep 12, 2024 Jkt 262001 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 74915 Methodology Commerce is conducting this CVD administrative review in accordance with section 751(a)(l)(A) of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found countervailable, we preliminarily determine that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that confers a benefit to the recipient, and that the subsidy is specific.8 For a full description of the methodology underlying our conclusions, including our reliance upon adverse facts available (AFA) in determining a countervailing duty rate for Geumok Tech, pursuant to sections 776(a) and (b) of the Act, see the Preliminary Decision Memorandum. Intent To Rescind Administrative Review, in Part It is Commerce’s practice to rescind an administrative review of a countervailing duty order, pursuant to 19 CFR 351.213(d)(3), when there are no reviewable entries of subject merchandise during the POR for which liquidation is suspended.9 Normally, upon completion of an administrative review, the suspended entries are liquidated at the countervailing duty assessment rate calculated for the review period.10 Therefore, for an administrative review of a company to be conducted, there must be a reviewable, suspended entry that Commerce can instruct U.S. Customs and Border Protection (CBP) to liquidate at the calculated countervailing duty assessment rate calculated for the review period.11 According to the CBP import data on the record, there is one company subject to this review (i.e., Samsung STS Co., Ltd.) that did not have reviewable entries of subject merchandise during the POR for which liquidation is suspended. Accordingly, in the absence of reviewable, suspended entries of subject merchandise during the POR, we intend to rescind this administrative review with respect to this company, in accordance with 19 CFR 351.213(d)(3). Preliminary Results of Review As a result of this review, we preliminarily determine the following net countervailable subsidy rates for the period January 1, 2022, through December 31, 2022: 8 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. 9 See Preliminary Decision Memorandum at ‘‘Intent to Rescind Administrative Review, in Part.’’ 10 See 19 CFR 351.212(b)(2). 11 See 19 CFR 351.213(d)(3). E:\FR\FM\13SEN1.SGM 13SEN1

Agencies

[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Notices]
[Pages 74912-74915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-20886]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-920]


Certain Epoxy Resins From the Republic of Korea: Preliminary 
Negative Countervailing Duty Determination, Preliminary Negative 
Critical Circumstances 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 not being provided to 
producers and exporters of Certain Epoxy Resins (epoxy resins) from the 
Republic of Korea (Korea). The period of investigation is 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: Thomas Martin or Benjamin Blythe, AD/
CVD Operations, Office IV, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-3936 or (202) 
482-3457, respectively.

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

[[Page 74913]]

proceeding by seven days.\3\ The deadline for the preliminary 
determination is now September 9, 2024.
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    \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 46016 (May 28, 2024).
    \3\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
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    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.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Negative Determination in the Countervailing Duty Investigation of 
Certain Epoxy Resins from the Republic of Korea,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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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 other 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\
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    \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) (LTFV Prelim 
Postponement).
    \8\ The deadline for interested parties to submit scope case and 
rebuttal briefs will be established in the preliminary scope 
decision memorandum.
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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\
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    \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.
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Preliminary Negative Determination of Critical Circumstances

    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that critical circumstances do not exist with 
respect to imports of epoxy resins from Korea for Kukdo Chemical Co., 
Ltd. (Kukdo), Kumho P&B Chemicals Inc. (Kumho), all other exporters or 
producers not individually examined. For a full description of the 
methodology and results of Commerce's analysis, see the Preliminary 
Decision Memorandum.

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 with the final determination in 
the companion LTFV investigation of epoxy resins from Korea 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.\11\
---------------------------------------------------------------------------

    \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. The petitioner is the U.S. Epoxy Resin Producers Ad Hoc 
Coalition.
    \11\ See LTFV Prelim Postponement.
---------------------------------------------------------------------------

Preliminary Determination

    For this preliminary determination, Commerce calculated de minimis 
estimated countervailable subsidies for all individually examined 
producers/exporters of the subject merchandise. Consistent with section 
703(b)(4)(A) of the Act, Commerce has disregarded the de minimis rates. 
Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                               Subsidy
                                                                 rate
                          Company                            (percent ad
                                                               valorem)
------------------------------------------------------------------------
Kukdo Chemical Co., Ltd.\12\...............................       * 0.74
Kumho P&B Chemicals Inc.\13\...............................       * 0.89
------------------------------------------------------------------------
* De minimis.

    Consistent with section 703(d) of the Act, Commerce has not 
calculated an estimated weighted-average subsidy rate for all other 
producers/exporters because it has not made an affirmative preliminary 
determination
---------------------------------------------------------------------------

    \12\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Kukdo Chemical Co., Ltd.: Kukdo Finechem Co., Ltd.
    \13\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Kumho P&B Chemicals Inc.: Kumho Petrochemical Co. Ltd. and Chemoil 
Corporation.
---------------------------------------------------------------------------

Suspension of Liquidation

    Because Commerce preliminarily determines that no countervailable 
subsidies are being provided to the production or exportation of 
subject merchandise, Commerce will not direct U.S. Customs and Border 
Protection to suspend liquidation of any such entries.

Disclosure

    Commerce intends to disclose to interested parties the 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).
    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

[[Page 74914]]

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.\14\ 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.\15\
---------------------------------------------------------------------------

    \14\ 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).
    \15\ 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.\16\ 
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).\17\
---------------------------------------------------------------------------

    \16\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \17\ 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 75 days after the final determination whether imports of epoxy 
resins from Korea 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 
these investigations 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.

[[Page 74915]]

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Injury Test
IV. Preliminary Negative Determination of Critical Circumstances
V. Subsidies Valuation
VI. Diversification of Korea's Economy
VII. Analysis of Programs
VIII. Recommendation

 [FR Doc. 2024-20886 Filed 9-12-24; 8:45 am]
 BILLING CODE 3510-DS-P
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