Certain Epoxy Resins From the Republic of Korea: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Negative Critical Circumstances Determination, Postponement of Final Determination, and Extension of Provisional Measures, 89605-89608 [2024-26257]
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Federal Register / Vol. 89, No. 219 / Wednesday, November 13, 2024 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–919]
Certain Epoxy Resins From the
Republic of Korea: Preliminary
Affirmative Determination of Sales at
Less Than Fair Value, Preliminary
Negative Critical Circumstances
Determination, Postponement of Final
Determination, and Extension of
Provisional Measures
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) preliminarily
determines that certain epoxy resins
(epoxy resins) from the Republic of
Korea (Korea) are being, or are likely to
be, sold in the United States at less than
fair value (LTFV). The period of
investigation (POI) is April 1, 2023,
through March 31, 2024. Interested
parties are invited to comment on this
preliminary determination.
DATES: Applicable November 13, 2024.
FOR FURTHER INFORMATION CONTACT: Joy
Zhang or Laura Delgado, 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) 482–1168 or (202) 482–1468,
respectively.
AGENCY:
SUPPLEMENTARY INFORMATION:
Background
lotter on DSK11XQN23PROD with NOTICES1
This preliminary determination is
made in accordance with section 733(b)
of the Tariff Act of 1930, as amended
(the Act). Commerce published the
notice of initiation of this investigation
on April 29, 2024.1 On July 22, 2024,
Commerce tolled certain deadlines in
this administrative proceeding by seven
days.2 On August 12, 2024, Commerce
postponed the preliminary
determination of this investigation until
November 6, 2024.3
For a complete description of the
events that followed the initiation of
this investigation, see the Preliminary
1 See Certain Epoxy Resins from the People’s
Republic of China, India, the Republic of Korea,
Taiwan, and Thailand: Initiation of Less-Than-Fair
Value Investigations, 89 FR 33324 (April 29, 2024)
(Initiation Notice).
2 See Memorandum, ‘‘Tolling of Deadlines for
Antidumping and Countervailing Duty
Proceedings,’’ dated July 22, 2024.
3 See Certain Epoxy Resins from the People’s
Republic of China, India, the Republic of Korea,
Taiwan, and Thailand: Postponement of
Preliminary Determinations of Antidumping Duty
Investigations, 89 FR 65583 (August 12, 2024).
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Decision Memorandum.4 A list of topics
included in the Preliminary Decision
Memorandum is included as Appendix
II to this notice. The Preliminary
Decision Memorandum is a public
document and is on file electronically
via Enforcement and Compliance’s
Antidumping and Countervailing Duty
Centralized Electronic Service System
(ACCESS). ACCESS is available to
registered users at https://access.
trade.gov. In addition, a complete
version of the Preliminary Decision
Memorandum can be accessed directly
at https://access.trade.gov/public/
FRNoticesListLayout.aspx.
Scope of the Investigation
The products covered by this
investigation are epoxy resins from
Korea. 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 Certain interested
parties commented on the scope of the
investigation as it appeared in the
Initiation Notice, as well as additional
language proposed by Commerce. For a
summary of the product coverage
comments and rebuttal responses
submitted to the record for this
preliminary determination, and
accompanying discussion and analysis
of all comments timely received, see the
Preliminary Scope Decision
Memorandum.7 Commerce is not
preliminarily modifying the scope
language as stated it appeared in the
Initiation Notice. See the scope in
Appendix I to this notice. Pursuant to
19 CFR 351.309(c)(2), interested parties
may submit additional comments on the
scope of this investigation in scope case
briefs, which may be submitted no later
than 30 days after the issuance of the
Preliminary Scope Decision
Memorandum.8
4 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Affirmative Determination in the
Less-Than-Fair-Value Investigation of Certain
Epoxy Resins from India’’ 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).
6 See Initiation Notice, 89 FR at 33324–25.
7 See Memorandum, ‘‘Less-Than-Fair-Value and
Countervailing Duty Investigations of Certain Epoxy
Resins from the People’s Republic of China, India,
the Republic of Korea, Taiwan, and Thailand:
Preliminary Scope Decision Memorandum,’’ dated
concurrently with this preliminary determination
(Preliminary Scope Decision Memorandum).
8 Id.
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Methodology
Commerce is conducting this
investigation in accordance with section
731 of the Act. Commerce has
calculated export prices and constructed
export prices in accordance with
sections 772(a) and (b) of the Act,
respectively. Normal value is calculated
in accordance with section 773 of the
Act. For a full description of the
methodology underlying the
preliminary determination, see the
Preliminary Decision Memorandum.
Preliminary Negative Determination of
Critical Circumstances
In accordance with section 733(e)(1)
of the Act and 19 CFR 351.206(c),
Commerce preliminarily finds that
critical circumstances do not exist with
respect to imports of epoxy resins from
Korea for Kukdo Chemical Co., Ltd. and
Kukdo Finechem (collectively Kukdo/
Finechem),9 Kumho P&B Chemicals Inc.
(Kumho P&B), and all other exporters or
producers not individually examined.
For a full description of the
methodology and results of Commerce’s
critical circumstances analysis, see the
Preliminary Decision Memorandum.
All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A)
of the Act provide that in the
preliminary determination, Commerce
shall determine an estimated all-others
rate for all exporters and producers not
individually examined. This rate shall
be an amount equal to the weighted
average of the estimated weightedaverage dumping margins established
for exporters and producers
individually investigated, excluding any
rates that are zero, de minimis, or
determined entirely under section 776
of the Act.
In this investigation, Commerce
calculated estimated weighted-average
dumping margins for Kukdo/Finechem
and Kumho P&B that are not zero, de
minimis, or based entirely on facts
otherwise available. Commerce
calculated the all-others rate using a
weighted average of the estimated
weighted-average dumping margins
calculated for the examined respondents
using each company’s publicly-ranged
values for the merchandise under
consideration.10
9 Commerce preliminarily determines that these
companies are a single entity. See Preliminary
Decision Memorandum; see also Memorandum,
‘‘Preliminary Affiliation and Collapsing
Memorandum,’’ dated concurrently with this
notice.
10 With two respondents under examination,
Commerce normally calculates: (A) a weightedaverage of the estimated weighted-average dumping
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Federal Register / Vol. 89, No. 219 / Wednesday, November 13, 2024 / Notices
Preliminary Determination
Commerce preliminarily determines
that the following estimated weightedaverage dumping margins exist:
Estimated weighted-average
dumping margin
(percent) 11
Exporter/producer
Kukdo/Finechem .....................................................................................................
Kumho P&B Chemicals, Inc ....................................................................................
All Others ................................................................................................................
Suspension of Liquidation
In accordance with section 733(d)(2)
of the Act, Commerce will direct U.S.
Customs and Border Protection (CBP) to
suspend liquidation of entries of subject
merchandise, as described in Appendix
I, entered, or withdrawn from
warehouse, for consumption on or after
the date of publication of this notice in
the Federal Register. Further, pursuant
to section 733(d)(1)(B) of the Act and 19
CFR 351.205(d), Commerce will instruct
CBP to require a cash deposit equal to
the estimated weighted-average
dumping margin or the estimated allothers rate, as follows: (1) the cash
deposit rate for the respondents listed
above will be equal to the companyspecific estimated weighted-average
dumping margins determined in this
preliminary determination; (2) if the
exporter is not a company identified
above, but the producer is, then the cash
deposit rate will be equal to the
company-specific estimated weightedaverage dumping margin established for
that producer of the subject
merchandise; and (3) the cash deposit
rate for all other producers and
exporters will be equal to the all-others
estimated weighted-average dumping
margin. These suspension of liquidation
instructions will remain in effect until
further notice.
Disclosure
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Commerce intends to disclose its
calculations and analysis performed to
margins calculated for the examined respondents;
(B) a simple average of the estimated weightedaverage dumping margins calculated for the
examined respondents; and (C) a weighted-average
of the estimated weighted-average dumping margins
calculated for the examined respondents using each
company’s publicly-ranged U.S. sales values for the
merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate
closest to (A) as the most appropriate rate for all
other producers and exporters. See, e.g., Ball
Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results
of Antidumping Duty Administrative Reviews, Final
Results of Changed-Circumstances Review, and
Revocation of an Order in Part, 75 FR 53661, 53662
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16.02
21.56
interested parties in this preliminary
determination within five days of any
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.
Cash deposit rate
(adjusted for subsidy
offset(s))
(percent)
Not Applicable.
Not Applicable.
Not Applicable.
Public Comment
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.12 Interested
parties who submit case or rebuttal
briefs in this proceeding must submit:
(1) a table of contents listing each issue;
and (2) a table of authorities.13
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 briefs 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.14 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).15
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
(September 1, 2010), and accompanying Issues and
Decision Memorandum at Comment 1. As complete
publicly ranged sales data were available,
Commerce based the all-others rate on the publicly
ranged sales data of the mandatory respondents. For
a complete analysis of the data, see the All-Others
Rate Calculation Memorandum.
11 Commerce will normally adjust cash deposits
for estimated antidumping duties by the amount of
export subsidies countervailed in a companion
countervailing duty (CVD) proceeding. However,
because Commerce made a preliminary negative
finding in the companion CVD proceeding, no such
adjustment is warranted. See 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, 89 FR 74912,
(September 13, 2024), and accompanying
Preliminary Decision Memorandum at 6–7.
12 See 19 351.309(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).
13 See 19 351.309(c)(2) and (d)(2).
14 We use the term ‘‘issue’’ here to describe an
argument that Commerce would normally address
in a comment of the Issues and Decision
Memorandum.
15 See APO and Service Final Rule.
Verification
As provided in section 782(i)(1) of the
Act, Commerce intends to verify the
information relied upon in making its
final determination.
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Federal Register / Vol. 89, No. 219 / Wednesday, November 13, 2024 / Notices
of publication of this notice. Requests
should contain the party’s name,
address, and telephone number, the
number of participants and 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.
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Postponement of Final Determination
and Extension of Provisional Measures
Section 735(a)(2) of the Act provides
that a final determination may be
postponed until not later than 135 days
after the date of the publication of the
preliminary determination if, in the
event of an affirmative preliminary
determination, a request for such
postponement is made by exporters who
account for a significant proportion of
exports of the subject merchandise, or in
the event of a negative preliminary
determination, a request for such
postponement is made by the petitioner.
Section 351.210(e)(2) of Commerce’s
regulations requires that a request by
exporters for postponement of the final
determination be accompanied by a
request for extension of provisional
measures from a four-month period to a
period not more than six months in
duration.
On September 19, 2024, pursuant to
19 CFR 351.210(b)(2)(i), the U.S. Epoxy
Resin Producers Ad Hoc Coalition (the
petitioner) requested that, if the
preliminary determination was negative,
that Commerce postpone the final
determination and that provisional
measures be extended to a period not to
exceed six months.16 On October 15,
2024, pursuant to 19 CFR 351.210(e)(2),
Kumho P&B and Kukdo Chemical
requested that Commerce fully postpone
the final determination, if the
preliminary determination is affirmative
and that provisional measures be
extended to a period not to exceed six
months.17 In accordance with section
735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii), because: (1) the
preliminary determination is
affirmative; (2) the requesting exporters
account for a significant proportion of
exports of the subject merchandise; and
(3) no compelling reasons for denial
exist, Commerce is postponing the final
16 See
Petitioner’s Letter, ‘‘Petitioner’s Request for
Postponement of the Final Determination,’’ dated
September 19, 2024.
17 See Kukdo’s Letter, ‘‘Kukdo’s Request for
Postponement of Final Determination,’’ dated
October 15, 2024; see also Kumho P&B’s Letter,
‘‘Request to Postpone the Deadline for the Final
Determination,’’ dated October 15, 2024.
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determination and extending the
provisional measures from a four-month
period to a period not greater than six
months. Accordingly, Commerce will
make its final determination no later
than 135 days after the date of
publication of this preliminary
determination.
U.S. International Trade Commission
Notification
In accordance with section 733(f) of
the Act, Commerce will notify the U.S.
International Trade Commission (ITC) of
its preliminary determination. If the
final determination is affirmative, the
ITC will determine before the later of
120 days after the date of this
preliminary determination or 45 days
after the final determination whether
these imports are materially injuring, or
threaten material injury to, the U.S.
industry.
Notification to Interested Parties
This determination is issued and
published in accordance with sections
733(f) and 777(i)(1) of the Act, and 19
CFR 351.205(c).
Dated: November 6, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary, for Enforcement
and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this
investigation are 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
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89607
at least 30 percent of the total weight of the
blend.
Epoxy resins that enter as part of a system
or kit with separately packaged co-reactants,
such as hardeners or curing agents, are
within the scope. The scope does not include
any separately packaged co-reactants that
would not fall within the scope if entered on
their own.
The scope includes merchandise matching
the above description that has been
processed in a third country, including by
commingling, diluting, introducing, or
removing modifiers or additives, or
performing any other processing that would
not otherwise remove the merchandise from
the scope of the investigation if performed in
the subject country.
The scope also includes epoxy resin that is
commingled or blended with epoxy resin
from sources not subject to this investigation.
Only the subject component of such
commingled products is covered by the scope
of this investigation.
Excluded from the scope are phenoxy
resins, which are polymers with a weight
greater than 11,000 Daltons, a Melt Flow
Index (MFI) at 200 °C (392 °F) no less than 4
grams and no greater than 70 grams per 10
min, Glass-Transition Temperatures (Tg) no
less than 80 °C (176 °F) and no greater than
100 °C (212 °F), and which contain no epoxy
groups other than at the terminal ends of the
molecule.
Excluded from the scope are certain paint
and coating products, which are blends,
mixtures, or other formulations of epoxy
resin, curing agent, and pigment, in any form,
packaged in one or more containers, wherein
(1) the pigment represents a minimum of 10
percent of the total weight of the product, (2)
the epoxy resin represents a maximum of 80
percent of the total weight of the product,
and (3) the curing agent represents 5 to 40
percent of the total weight of the product.
Excluded from the scope are
preimpregnated fabrics or fibers, often
referred to as ‘‘pre-pregs,’’ which are
composite materials consisting of fabrics or
fibers (typically carbon or glass) impregnated
with epoxy resin.
This merchandise is currently classifiable
under Harmonized Tariff Schedule of the
United States (HTSUS) subheading
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. Period of Investigation
IV. Affiliation and Single Entity Treatment
V. Discussion of the Methodology
VI. Preliminary Negative Determination of
Critical Circumstances
VII. Currency Conversion
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Federal Register / Vol. 89, No. 219 / Wednesday, November 13, 2024 / Notices
VIII. Recommendation
[FR Doc. 2024–26257 Filed 11–12–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–549–850]
Certain Epoxy Resins From Thailand:
Preliminary Affirmative Determination
of Sales at Less Than Fair Value,
Preliminary Negative Determination of
Critical Circumstances, Postponement
of Final Determination, and Extension
of Provisional Measures
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) preliminarily
determines that certain epoxy resins
(epoxy resins) from Thailand are being,
or are likely to be, sold in the United
States at less than fair value (LTFV). The
period of investigation is April 1, 2023,
through March 31, 2024. Interested
parties are invited to comment on this
preliminary determination.
DATES: Applicable November 13, 2024.
FOR FURTHER INFORMATION CONTACT:
Rachel Jennings or John Frye, 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) 482–1110 or (202) 482–3035,
respectively.
SUPPLEMENTARY INFORMATION:
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AGENCY:
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 from
Thailand. For a complete description of
the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the Preamble to
Commerce’s regulations,4 the Initiation
Notice set aside a period of time for
parties to raise issues regarding product
coverage (i.e., scope).5 Certain interested
parties commented on the scope of the
investigation as it appeared in the
Initiation Notice, as well as additional
language proposed by Commerce. For a
summary of the product coverage
comments and rebuttal responses
submitted to the record for this
preliminary determination, and
accompanying discussion and analysis
of all comments timely received, see the
Preliminary Scope Decision
Memorandum.6 Commerce is
preliminarily not to modifying the scope
language as it appeared in the Initiation
Notice. See the scope in Appendix I to
this notice. Pursuant to 19 CFR
351.309(c)(2), interested parties may
submit additional comments on the
scope of this investigation in scope case
briefs, which may be submitted no later
than 30 days after the issuance of the
Preliminary Scope Decision
Memorandum.7
Background
This preliminary determination is
made in accordance with section 733(b)
of the Tariff Act of 1930, as amended
(the Act). Commerce published the
notice of initiation of this investigation
on April 29, 2024.1 On August 12, 2024,
Commerce postponed the preliminary
determination of this investigation and
the revised deadline is now November
6, 2024.2 For a complete description of
the events that followed the initiation of
this investigation, see the Preliminary
Decision Memorandum.3 A list of topics
included in the Preliminary Decision
Methodology
Commerce is conducting this
investigation in accordance with section
731 of the Act. Commerce has
calculated export prices in accordance
with section 772(a) of the Act.
Constructed export prices have been
1 See Certain Epoxy Resins from the People’s
Republic of China, India, the Republic of Korea,
Taiwan, and Thailand: Initiation of Less-Than-FairValue Investigations, 89 FR 33324 (April 29, 2024)
(Initiation Notice).
2 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).
3 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Determination in the Less-ThanFair-Value Investigation of Certain Epoxy Resins
from Thailand,’’ dated concurrently with, and
hereby adopted by, this notice (Preliminary
Decision Memorandum).
4 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble).
5 See Initiation Notice, 89 FR at 33328.
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calculated in accordance with section
772(b) of the Act. Normal value is
calculated in accordance with section
773 of the Act. For a full description of
the methodology underlying the
preliminary determination, see the
Preliminary Decision Memorandum.
Preliminary Negative Determination of
Critical Circumstances
In accordance with section 733(e) of
the Act and 19 CFR 351.206, Commerce
preliminarily finds that critical
circumstances do not exist for Aditya
Birla Chemicals (Thailand) Limited
(Aditya Thai), and all other exporters
and producers of the subject
merchandise. For a full description of
the methodology and results of
Commerce’s critical circumstances
analysis, see the Preliminary Decision
Memorandum.
All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A)
of the Act provide that in the
preliminary determination Commerce
shall determine an estimated all-others
rate for all exporters and producers not
individually examined. This rate shall
be an amount equal to the weighted
average of the estimated weightedaverage dumping margins established
for exporters and producers
individually investigated, excluding any
rates that are zero, de minimis, or
determined entirely under section 776
of the Act.
In this investigation, Commerce
calculated an individual estimated
weighted-average dumping margin for
Aditya Thai, the only individually
examined exporter/producer in this
investigation. Because the only
individually calculated dumping margin
is not zero, de minimis, or based
entirely on facts otherwise available, the
estimated weighted-average dumping
margin calculated for Aditya Thai is the
margin assigned to all other producers
and exporters, pursuant to section
735(c)(5)(A) of the Act.
Preliminary Determination
Commerce preliminarily determines
that the following estimated weightedaverage dumping margins exist:
6 See Memorandum, ‘‘Less-Than-Fair-Value and
Countervailing Duty Investigations of Certain Epoxy
Resins from the People’s Republic of China, India,
the Republic of Korea, Taiwan, and Thailand:
Preliminary Scope Decision Memorandum,’’ dated
concurrently with this preliminary determination
(Preliminary Scope Decision Memorandum).
7 Id.
E:\FR\FM\13NON1.SGM
13NON1
]]>Agencies
[Federal Register Volume 89, Number 219 (Wednesday, November 13, 2024)]
[Notices]
[Pages 89605-89608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26257]
[[Page 89605]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-919]
Certain Epoxy Resins From the Republic of Korea: Preliminary
Affirmative Determination of Sales at Less Than Fair Value, Preliminary
Negative Critical Circumstances Determination, Postponement of Final
Determination, and Extension of Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that certain epoxy resins (epoxy resins) from the Republic
of Korea (Korea) are being, or are likely to be, sold in the United
States at less than fair value (LTFV). The period of investigation
(POI) is April 1, 2023, through March 31, 2024. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable November 13, 2024.
FOR FURTHER INFORMATION CONTACT: Joy Zhang or Laura Delgado, 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) 482-1168 or (202) 482-1468,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on April 29,
2024.\1\ On July 22, 2024, Commerce tolled certain deadlines in this
administrative proceeding by seven days.\2\ On August 12, 2024,
Commerce postponed the preliminary determination of this investigation
until November 6, 2024.\3\
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\1\ See Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, Taiwan, and Thailand:
Initiation of Less-Than-Fair Value Investigations, 89 FR 33324
(April 29, 2024) (Initiation Notice).
\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\3\ See Certain Epoxy Resins from the People's Republic of
China, India, the Republic of Korea, Taiwan, and Thailand:
Postponement of Preliminary Determinations of Antidumping Duty
Investigations, 89 FR 65583 (August 12, 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 included in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
via Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). ACCESS is available to
registered users at https://access.trade.gov. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Less-Than-Fair-Value Investigation
of Certain Epoxy Resins from India'' 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 from
Korea. 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\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice, as well as additional language proposed by
Commerce. For a summary of the product coverage comments and rebuttal
responses submitted to the record for this preliminary determination,
and accompanying discussion and analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\7\ Commerce is
not preliminarily modifying the scope language as stated it appeared in
the Initiation Notice. See the scope in Appendix I to this notice.
Pursuant to 19 CFR 351.309(c)(2), interested parties may submit
additional comments on the scope of this investigation in scope case
briefs, which may be submitted no later than 30 days after the issuance
of the Preliminary Scope Decision Memorandum.\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, 89 FR at 33324-25.
\7\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of Certain Epoxy Resins from the People's
Republic of China, India, the Republic of Korea, Taiwan, and
Thailand: Preliminary Scope Decision Memorandum,'' dated
concurrently with this preliminary determination (Preliminary Scope
Decision Memorandum).
\8\ Id.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices and
constructed export prices in accordance with sections 772(a) and (b) of
the Act, respectively. Normal value is calculated in accordance with
section 773 of the Act. For a full description of the methodology
underlying the preliminary determination, see the Preliminary Decision
Memorandum.
Preliminary Negative Determination of Critical Circumstances
In accordance with section 733(e)(1) of the Act and 19 CFR
351.206(c), Commerce preliminarily finds that critical circumstances do
not exist with respect to imports of epoxy resins from Korea for Kukdo
Chemical Co., Ltd. and Kukdo Finechem (collectively Kukdo/Finechem),\9\
Kumho P&B Chemicals Inc. (Kumho P&B), and all other exporters or
producers not individually examined. For a full description of the
methodology and results of Commerce's critical circumstances analysis,
see the Preliminary Decision Memorandum.
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\9\ Commerce preliminarily determines that these companies are a
single entity. See Preliminary Decision Memorandum; see also
Memorandum, ``Preliminary Affiliation and Collapsing Memorandum,''
dated concurrently with this notice.
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All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in
the preliminary determination, Commerce shall determine an estimated
all-others rate for all exporters and producers not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated, excluding any rates
that are zero, de minimis, or determined entirely under section 776 of
the Act.
In this investigation, Commerce calculated estimated weighted-
average dumping margins for Kukdo/Finechem and Kumho P&B that are not
zero, de minimis, or based entirely on facts otherwise available.
Commerce calculated the all-others rate using a weighted average of the
estimated weighted-average dumping margins calculated for the examined
respondents using each company's publicly-ranged values for the
merchandise under consideration.\10\
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\10\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated weighted-average
dumping margins calculated for the examined respondents; (B) a
simple average of the estimated weighted-average dumping margins
calculated for the examined respondents; and (C) a weighted-average
of the estimated weighted-average dumping margins calculated for the
examined respondents using each company's publicly-ranged U.S. sales
values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see the All-Others Rate Calculation Memorandum.
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[[Page 89606]]
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Estimated weighted-average
Exporter/producer dumping margin (percent) Cash deposit rate (adjusted for subsidy
\11\ offset(s)) (percent)
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Kukdo/Finechem....................... 24.65 Not Applicable.
Kumho P&B Chemicals, Inc............. 16.02 Not Applicable.
All Others........................... 21.56 Not Applicable.
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Suspension of Liquidation
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\11\ Commerce will normally adjust cash deposits for estimated
antidumping duties by the amount of export subsidies countervailed
in a companion countervailing duty (CVD) proceeding. However,
because Commerce made a preliminary negative finding in the
companion CVD proceeding, no such adjustment is warranted. See
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, 89 FR
74912, (September 13, 2024), and accompanying Preliminary Decision
Memorandum at 6-7.
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In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise, as described in Appendix I, entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. Further, pursuant
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows:
(1) the cash deposit rate for the respondents listed above will be
equal to the company-specific estimated weighted-average dumping
margins determined in this preliminary determination; (2) if the
exporter is not a company identified above, but the producer is, then
the cash deposit rate will be equal to the company-specific estimated
weighted-average dumping margin established for that producer of the
subject merchandise; and (3) the cash deposit rate for all other
producers and exporters will be equal to the all-others estimated
weighted-average dumping margin. These suspension of liquidation
instructions will remain in effect until further notice.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any 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
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.\12\ Interested parties who submit case or rebuttal
briefs in this proceeding must submit: (1) a table of contents listing
each issue; and (2) a table of authorities.\13\
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\12\ See 19 351.309(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).
\13\ See 19 351.309(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 briefs 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.\14\
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).\15\
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\14\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\15\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date
[[Page 89607]]
of publication of this notice. Requests should contain the party's
name, address, and telephone number, the number of participants and
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.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On September 19, 2024, pursuant to 19 CFR 351.210(b)(2)(i), the
U.S. Epoxy Resin Producers Ad Hoc Coalition (the petitioner) requested
that, if the preliminary determination was negative, that Commerce
postpone the final determination and that provisional measures be
extended to a period not to exceed six months.\16\ On October 15, 2024,
pursuant to 19 CFR 351.210(e)(2), Kumho P&B and Kukdo Chemical
requested that Commerce fully postpone the final determination, if the
preliminary determination is affirmative and that provisional measures
be extended to a period not to exceed six months.\17\ In accordance
with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii),
because: (1) the preliminary determination is affirmative; (2) the
requesting exporters account for a significant proportion of exports of
the subject merchandise; and (3) no compelling reasons for denial
exist, Commerce is postponing the final determination and extending the
provisional measures from a four-month period to a period not greater
than six months. Accordingly, Commerce will make its final
determination no later than 135 days after the date of publication of
this preliminary determination.
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\16\ See Petitioner's Letter, ``Petitioner's Request for
Postponement of the Final Determination,'' dated September 19, 2024.
\17\ See Kukdo's Letter, ``Kukdo's Request for Postponement of
Final Determination,'' dated October 15, 2024; see also Kumho P&B's
Letter, ``Request to Postpone the Deadline for the Final
Determination,'' dated October 15, 2024.
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U.S. International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: November 6, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary, for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this investigation are 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, 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. Period of Investigation
IV. Affiliation and Single Entity Treatment
V. Discussion of the Methodology
VI. Preliminary Negative Determination of Critical Circumstances
VII. Currency Conversion
[[Page 89608]]
VIII. Recommendation
[FR Doc. 2024-26257 Filed 11-12-24; 8:45 am]
BILLING CODE 3510-DS-P
