Certain Epoxy Resins From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Determination of Critical Circumstances, and Alignment of Final Determination With Final Antidumping Duty Determination, 74891-74894 [2024-20888]
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Federal Register / Vol. 89, No. 178 / Friday, September 13, 2024 / Notices
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
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 this 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 these
investigations. 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.
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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.
Appendix II
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Diversification of India’s Economy
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and
Adverse Inferences
VII. Analysis of Programs
VIII. Recommendation
[FR Doc. 2024–20887 Filed 9–12–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–167]
Certain Epoxy Resins From the
People’s Republic of China:
Preliminary Affirmative Countervailing
Duty Determination, Preliminary
Affirmative Determination of Critical
Circumstances, 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 the
People’s Republic of China (China) 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:
Nathan James, AD/CVD Operations,
Office V, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–5305.
AGENCY:
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74891
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.
For a complete description of 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.
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
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 Affirmative Determination of the
Countervailing Duty Investigation of Certain Epoxy
Resins from the People’s Republic of China,’’ 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)
(Preamble).
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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
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
Commerce notes that, in making these
findings, it relied on facts available and,
because it finds that the Government of
China and both mandatory respondents
did not act to the best of their abilities
to respond to Commerce’s requests for
information, Commerce has drawn an
adverse inference where appropriate in
selecting from among the facts
otherwise available. For a full
description of the methodology
underlying our preliminary conclusions,
see the Preliminary Decision
Memorandum.
Preliminary Affirmative Determination
of Critical Circumstances
In accordance with section 703(e)(1)
of the Act, we preliminarily find that
critical circumstances exist with respect
to imports of subject merchandise for
Jiangsu Sanmu Group Co., Ltd. (Sanmu),
Shandong Bluestar Dongda Chemical
(Bluestar), and all other producers and/
6 See
Initiation Notice.
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 Preliminary Postponement).
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.
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7 See
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or exporters. For a full discussion of our
preliminary critical circumstances
determination, see the ‘‘Critical
Circumstances’’ section of the
Preliminary Decision Memorandum.
Preliminary Determination
Commerce preliminarily determines
that the following estimated
countervailable subsidy rates exist:
Alignment
Company
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 China
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
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 rates that are
zero, de minimis, or based entirely
under section 776 of the Act.
Pursuant to section 705(c)(5)(A)(ii) of
the Act, if the individual estimated
countervailable subsidy rates
established for all exporters and
producers individually examined are
zero, de minimis, or determined based
entirely on facts otherwise available,
Commerce may use ‘‘any reasonable
method’’ to establish the estimated
subsidy rate for all other producers or
exporters. In this investigation,
Commerce preliminarily determined the
individually estimated subsidy rate for
each of the individually examined
respondents based entirely on facts
available under section 776 of the Act.
This is the only rate available in this
proceeding for deriving the all-others
rate. Consequently, pursuant to sections
703(d) and 705(c)(5)(A)(ii) of the Act,
Commerce established the all-others rate
by applying the countervailable subsidy
rate assigned to the mandatory
respondents.
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 LTFV Preliminary Postponement.
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Jiangsu Sanmu Group Co.,
Ltd .....................................
Shandong Bluestar Dongda
Chemical ...........................
All Others ..............................
Subsidy rate
(percent ad
valorem)
* 108.64
* 108.64
* 108.64
* Rate based on an adverse inference.
Suspension of Liquidation
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 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.
Section 703(e)(2) of the Act provides
that, given an affirmative determination
of critical circumstances, any
suspension of liquidation shall apply to
unliquidated entries of merchandise
entered, or withdrawn from warehouse,
for consumption on or after the later of:
(a) the date which is 90 days before the
date on which the suspension of
liquidation was first ordered; or (b) the
date on which notice of initiation of the
investigation was published. Commerce
preliminarily finds that critical
circumstances exist for imports of
subject merchandise produced and/or
exported by Bluestar, Sanmu, and all
other producers and/or exporters. In
accordance with section 703(e)(2)(A) of
the Act, the suspension of liquidation
shall apply to unliquidated entries of
merchandise from the exporters/
producers identified in this paragraph
that were entered, or withdrawn from
warehouse, for consumption on or after
the date which is 90 days before the
publication of this notice.
Disclosure
Normally, Commerce discloses its
calculations performed in connection
with the preliminary determination to
interested parties within five days of its
public announcement, or if there is no
public announcement, within five days
of the date of publication of the notice,
in accordance with 19 CFR 351.224(b).
However, because Commerce
preliminarily applied facts available
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with adverse inferences in the
assignment of a subsidy rate for Bluestar
and Sanmu, there are no calculations to
disclose.
Verification
Because the examined respondents in
this investigation did not provide
information Commerce requested and
Commerce preliminarily determines
that each of the examined respondents
has been uncooperative, it will not
conduct verification.
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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
on non-scope issues may be submitted
to the Assistant Secretary for
Enforcement and Compliance at a time
to be determined.12 Rebuttal briefs,
limited to issues raised in the case
briefs, may be submitted no later than
five days after the deadline 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
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
12 See 19 CFR 351.309(c)(1)(i); see also 19 CFR
351.303 (for general filing requirements).
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 CFR 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.
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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
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, via ACCESS 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, and
a list of the issues to be discussed. Oral
presentations at the hearing will be
limited to issues raised in the briefs. If
a request for a hearing is made, parties
will be notified of the time and date for
the hearing.17 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 China are materially
injuring, or threaten material injury to,
the U.S. industry.
Notification to Interested Parties
This determination is issued and
published in accordance with sections
703(f) and 777(i)(1) 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
16 See APO and Service Final Rule, 88 FR at
67069.
17 See 19 CFR 351.310(d).
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74893
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
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,
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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.
AGENCY:
China.1 On December 1, 2023,
Commerce published in the Federal
Register a notice of opportunity to
request an administrative review of the
Order.2 Based on timely requests for
review from Dixon Ticonderoga
Company (the petitioner) and Aloha
Pencil Co. (Aloha), in accordance with
351.221(c)(1)(i) and section 751(a) of the
Tariff Act of 1930, as amended (the Act),
Commerce published the initiation of
this administrative review on February
8, 2024, with respect to 17 companies.3
On February 14, 2024, Commerce
released the U.S. Customs and Border
Protection (CBP) data to all interested
parties under an administrative
protective order and requested
comments regarding the data and
respondent selection.4 We received no
comments from interested parties on the
CBP data.
On March 7, 2024, the petitioner
submitted an objection to Aloha’s
request for administrative review
alleging that Aloha did not qualify for
producer, manufacturer, or wholesaler
status during the POR.5 In the Initiation
Notice, Commerce required that
interested parties submit a separate rate
application (SRA) or separate rate
certification (SRC) within 30 days of
publication of the Initiation Notice.6
Because of the petitioner’s objection to
Aloha’s request for review, we extended
the deadline for parties to file an SRA
or SRC multiple times.7 However, no
party submitted an SRA or SRC within
the extended time frame.
On March 13, 2024, Commerce issued
a questionnaire to Aloha to assess its
standing as a domestic producer,
manufacturer, or wholesaler of pencils
Background
On December 28, 1994, Commerce
published in the Federal Register the
antidumping duty order on pencils from
1 See Antidumping Duty Order: Certain Cased
Pencils from the People’s Republic of China, 59 FR
66909 (December 28, 1994) (Order).
2 See Antidumping or Countervailing Duty Order,
Finding, or Suspended Investigation; Opportunity
to Request Administrative Review and Join Annual
Inquiry Service List, 88 FR 83917 (December 1,
2023).
3 See Initiation of Antidumping and
Countervailing Duty Administrative Reviews, 89 FR
8641, 8643 (February 8, 2024) (Initiation Notice).
4 See Memorandum, ‘‘Release of Customs Entry
Data,’’ dated February 14, 2024.
5 See Petitioner’s Letter, ‘‘Refiled Dixon’s
Objection to Aloha Pencil Co.’s Request for
Administrative Review of the Antidumping Duty
Order on Cased Pencils from the People’s Republic
of China,’’ dated March 7, 2024.
6 See Initiation Notice, 89 FR at 8642 (‘‘Exporters
and producers must file a timely Separate Rate
Application or Certification if they want to be
considered for individual examination.’’).
7 See Commerce’s Letters, ‘‘Extension for Separate
Rate Application or Certification,’’ dated March 6,
2024; ‘‘Extension for Separate Rate Application or
Certification,’’ dated March 21, 2024; and
‘‘Extension for Separate Rate Application or
Certification,’’ dated April 3, 2024.
Appendix II
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Analysis of China’s Financial System
V. Diversification of China’s Economy
VI. Use of Facts Otherwise Available and
Adverse Inferences
VII. Critical Circumstances
VIII. Recommendation
[FR Doc. 2024–20888 Filed 9–12–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–827]
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Certain Cased Pencils From the
People’s Republic of China:
Rescission of Antidumping Duty
Administrative Review; 2022–2023
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) is rescinding the
administrative review of the
antidumping duty order on certain
cased pencils (pencils) from the
People’s Republic of China (China) for
the period of review (POR) December 1,
2022, through November 30, 2023.
DATES: Applicable September 13, 2024.
FOR FURTHER INFORMATION CONTACT:
Robert Copyak, 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) 482–3642.
SUPPLEMENTARY INFORMATION:
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during the POR.8 On March 25, 2024,
Aloha timely submitted its response.9
On March 29, 2024, the petitioner
submitted rebuttal factual information
regarding Aloha’s standing
questionnaire response.10
On April 9, 2024, based on the
information on the record, Commerce
determined that Aloha was not a bona
fide producer, manufacturer, or
wholesaler of a domestic like product
during the POR.11 As a result,
Commerce declined to find that Aloha
is a domestic interested party and stated
that it was: (1) treating Aloha’s review
request as void; and (2) preliminarily
rescinding this administrative review
with respect to any company for which
Aloha was the sole requestor.12
Consequently, because Aloha’s request
for review of 14 companies was void,
and it was the sole party requesting a
review of these companies, only three
companies remained under review: (1)
Shandong Wah Yuen Stationery Co.
Ltd.; Wah Yuen Stationery Co. Ltd.; (2)
Tianjin Tonghe Stationery Co., Ltd.; and
(3) Ningbo Homey Union Co., Ltd.13
On May 2, 2024, we received
comments from Aloha on the Standing
Determination, arguing that Aloha had
provided sufficient information to
support its claims that it was a bona fide
producer or manufacturer, and
requesting that Commerce expedite its
final decision.14 On May 9, 2024, the
petitioner submitted rebuttal comments
supporting the Standing Determination
and requesting that Commerce reject
Aloha’s request to expedite its final
decision.15
On June 7, 2024, Commerce notified
all interested parties of its intent to
rescind this review in full because there
were no reviewable, suspended entries
of subject merchandise from the three
remaining companies under review and
invited comments from interested
8 See Commerce’s Letter, ‘‘Standing
Questionnaire,’’ dated March 13, 2024.
9 See Aloha’s Letter, ‘‘Standing Questionnaire
Response,’’ dated March 25, 2024 (Standing
Questionnaire Response).
10 See Petitioner’s Letter, ‘‘Dixon’s Rebuttal to
Aloha Pencil Co.’s Standing Questionnaire
Responses,’’ dated March 29, 2024.
11 See Memorandum, ‘‘Aloha Pencil Company’s
Standing to Request Review,’’ dated April 9, 2024
(Standing Determination).
12 Id.
13 See Petitioner’s Letter, ‘‘Request for
Administrative Review,’’ dated January 2, 2024.
14 See Aloha’s Letter, ‘‘Request for
Reconsideration and Alternative Request to
Expedite Final Decision on Domestic Party
Standing and Publish Final Partial Rescission in the
Federal Register,’’ dated May 2, 2024.
15 See Petitioner’s Letter, ‘‘Dixon’s Response to
Aloha Pencil Co.’s Request for Reconsideration,’’
dated May 9, 2024.
E:\FR\FM\13SEN1.SGM
13SEN1
]]>Agencies
[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Notices]
[Pages 74891-74894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-20888]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-167]
Certain Epoxy Resins From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, Preliminary
Affirmative Determination of Critical Circumstances, 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 the
People's Republic of China (China) 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: Nathan James, AD/CVD Operations,
Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-5305.
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.
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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 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 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
Affirmative Determination of the Countervailing Duty Investigation
of Certain Epoxy Resins from the People's Republic of China,'' 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
[[Page 74892]]
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\
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\5\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\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
Preliminary Postponement).
\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\ Commerce notes that, in making these findings, it relied
on facts available and, because it finds that the Government of China
and both mandatory respondents did not act to the best of their
abilities to respond to Commerce's requests for information, Commerce
has drawn an adverse inference where appropriate in selecting from
among the facts otherwise available. For a full description of the
methodology underlying our preliminary conclusions, see the Preliminary
Decision Memorandum.
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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.
---------------------------------------------------------------------------
Preliminary Affirmative Determination of Critical Circumstances
In accordance with section 703(e)(1) of the Act, we preliminarily
find that critical circumstances exist with respect to imports of
subject merchandise for Jiangsu Sanmu Group Co., Ltd. (Sanmu), Shandong
Bluestar Dongda Chemical (Bluestar), and all other producers and/or
exporters. For a full discussion of our preliminary critical
circumstances determination, see the ``Critical Circumstances'' section
of 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 China 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\
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\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\ LTFV Preliminary Postponement.
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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
rates that are zero, de minimis, or based entirely under section 776 of
the Act.
Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual
estimated countervailable subsidy rates established for all exporters
and producers individually examined are zero, de minimis, or determined
based entirely on facts otherwise available, Commerce may use ``any
reasonable method'' to establish the estimated subsidy rate for all
other producers or exporters. In this investigation, Commerce
preliminarily determined the individually estimated subsidy rate for
each of the individually examined respondents based entirely on facts
available under section 776 of the Act. This is the only rate available
in this proceeding for deriving the all-others rate. Consequently,
pursuant to sections 703(d) and 705(c)(5)(A)(ii) of the Act, Commerce
established the all-others rate by applying the countervailable subsidy
rate assigned to the mandatory respondents.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
------------------------------------------------------------------------
Subsidy rate
Company (percent ad
valorem)
------------------------------------------------------------------------
Jiangsu Sanmu Group Co., Ltd............................ * 108.64
Shandong Bluestar Dongda Chemical....................... * 108.64
All Others.............................................. * 108.64
------------------------------------------------------------------------
* Rate based on an adverse inference.
Suspension of Liquidation
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 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.
Section 703(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered; or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise produced and/or exported by Bluestar, Sanmu, and all other
producers and/or exporters. In accordance with section 703(e)(2)(A) of
the Act, the suspension of liquidation shall apply to unliquidated
entries of merchandise from the exporters/producers identified in this
paragraph that were entered, or withdrawn from warehouse, for
consumption on or after the date which is 90 days before the
publication of this notice.
Disclosure
Normally, Commerce discloses its calculations performed in
connection with the preliminary determination to interested parties
within five days of its public announcement, or if there is no public
announcement, within five days of the date of publication of the
notice, in accordance with 19 CFR 351.224(b). However, because Commerce
preliminarily applied facts available
[[Page 74893]]
with adverse inferences in the assignment of a subsidy rate for
Bluestar and Sanmu, there are no calculations to disclose.
Verification
Because the examined respondents in this investigation did not
provide information Commerce requested and Commerce preliminarily
determines that each of the examined respondents has been
uncooperative, it will not conduct verification.
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 on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance at
a time to be determined.\12\ Rebuttal briefs, limited to issues raised
in the case briefs, may be submitted no later than five days after the
deadline 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\
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\12\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for
general filing requirements).
\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 CFR 351.309(c)(2) and (d)(2).
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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\
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\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, 88 FR at 67069.
---------------------------------------------------------------------------
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, via ACCESS
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, and a list of the issues to be discussed. Oral
presentations at the hearing will be limited to issues raised in the
briefs. If a request for a hearing is made, parties will be notified of
the time and date for the hearing.\17\ Parties should confirm by
telephone the date, time, and location of the hearing two days before
the scheduled date.
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\17\ See 19 CFR 351.310(d).
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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 China are materially injuring, or threaten material injury
to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i)(1) 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 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,
[[Page 74894]]
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. Analysis of China's Financial System
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Critical Circumstances
VIII. Recommendation
[FR Doc. 2024-20888 Filed 9-12-24; 8:45 am]
BILLING CODE 3510-DS-P
