[Federal Register Volume 82, Number 22 (Friday, February 3, 2017)]
[Notices]
[Pages 9195-9197]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02250]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-889]
Dioctyl Terephthalate From the Republic of Korea: Affirmative
Preliminary Determination of Sales at Less Than Fair Value, Negative
Preliminary Determination of Critical Circumstances, and Postponement
of Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the ``Department'') preliminarily
determines that dioctyl terephthalate (``DOTP'') from the Republic of
Korea (``Korea'') is being, or is likely to be, sold in the United
States at less than fair value (``LTFV''). The period of investigation
(``POI'') is April 1, 2015, through March 31, 2016. The estimated
weighted-average dumping margins of sales at LTFV are shown in the
``Preliminary Determination'' section of this notice. Interested
parties are invited to comment on this preliminary determination.
DATES: Effective February 3, 2017.
FOR FURTHER INFORMATION CONTACT: Laurel LaCivita or Shanah Lee, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Ave.
NW., Washington, DC 20230; telephone: (202) 482-4243, (202) 482-6386,
respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the notice of initiation of this
investigation on July 28, 2016.\1\ For a complete description of the
events that followed the initiation of this investigation, see the
memorandum that is dated concurrently with this determination and
hereby adopted by this notice.\2\ A list of topics included in the
Preliminary Decision Memorandum is included as Appendix II to this
notice.
---------------------------------------------------------------------------
\1\ See Dioctyl Terephthalate from the Republic of Korea:
Initiation of Less-Than-Fair-Value Investigation, 81 FR 49628 (July
28, 2016) (``Initiation Notice'').
\2\ See Memorandum from Gary Taverman, Associate Deputy
Assistant Secretary for Antidumping and Countervailing Duty
Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for
Enforcement and Compliance, ``Decision Memorandum for the
Preliminary Determination in the Antidumping Duty Investigation of
Dioctyl Terephthalate from the Republic of Korea,'' dated
concurrently with this notice (``Preliminary Decision Memorandum'').
---------------------------------------------------------------------------
The Preliminary Decision Memorandum is a public document and is
made available to the public 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, and to all parties in the Central Records Unit, Room
B8024 of the main Department of Commerce building. In addition, a
complete version of the Preliminary Decision Memorandum can be found at
http://enforcement.trade.gov/frn/. The signed Preliminary Decision
Memorandum and the electronic version of the Preliminary Decision
Memorandum are identical in content.
Scope of the Investigation
The product covered by this investigation is DOTP from Korea. For a
full description of the scope of this investigation, see the ``Scope of
the Investigation,'' in Appendix I.
Scope Comments
In accordance with the preamble to the Department's regulations,\3\
the Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., ``scope'').\4\ No interested
party submitted comments on the scope of this investigation.
---------------------------------------------------------------------------
\3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
\4\ See Initiation Notice, 81 FR at 49629.
---------------------------------------------------------------------------
Methodology
The Department is conducting this investigation in accordance with
section 731 of the Tariff Act of 1930, as amended (``the Act''). There
are two mandatory respondents participating in this investigation:
Aekyung Petrochemical Co., Ltd. (``AKP'') and LG Chem Ltd. (``LG
Chem''). Export price and, where appropriate, constructed export price
are calculated in accordance with section 772 of the Act. Normal value
(``NV'') is calculated in accordance with section 773 of the Act. For a
full description of the methodology underlying our preliminary
conclusions, see the Preliminary Decision Memorandum.
Negative Preliminary Determination of Critical Circumstances
On November 15, 2016, Eastman Chemical Company (``Petitioner'')
filed a timely critical circumstances allegation, pursuant to section
733(e)(1) of the Act and 19 CFR 351.206(c)(1), alleging that critical
circumstances exist with respect to imports of DOTP.\5\ In accordance
with 19 CFR 351.206(c)(2)(i), when a critical circumstances allegation
is submitted more than 20 days before the scheduled date of the
preliminary determination, the Department must issue a preliminary
finding whether there is a reasonable basis to believe or suspect that
critical circumstances exist no later than the date of the preliminary
determination. Section 733(e)(1) of the Act provides that the
Department will preliminarily determine that critical circumstances
exist in a LTFV investigation if there is a reasonable basis to believe
or suspect that: (A)(i) There is a history of dumping and material
injury by reason of dumped imports in the United States or elsewhere of
the subject merchandise, or (2) the person by whom, or for whose
account, the merchandise was imported knew or should have known that
the exporter was selling the subject merchandise at less than its fair
value and that there was likely to be material injury by reason of such
sales; and (B) there have been massive imports of the subject
merchandise over a relatively short period. We have conducted an
analysis of critical circumstances in accordance with section 733(e) of
the Act and 19 CFR 351.206, and preliminarily determine that critical
circumstances do not exist with regard to imports of DOTP from Korea.
For a full description of this issue, see the Preliminary Decision
Memorandum at the section, ``Preliminary Determination of Critical
Circumstances.''
---------------------------------------------------------------------------
\5\ See letter from Petitioner, ``Re: Dioctyl Terephthalate from
Korea; Critical Circumstances Allegation,'' dated November 15, 2016
(``Critical Circumstances Allegation'').
---------------------------------------------------------------------------
[[Page 9196]]
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated ``all-
others'' rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins established for exporters
and producers individually investigated, excluding any zero or de
minimis margins, and any margins determined entirely under section 776
of the Act.
We calculated the all-others rate based on a weighted average of
AKP and LG Chem's publicly ranged total sales values.\6\
---------------------------------------------------------------------------
\6\ With two respondents, we normally calculate (A) a weighted-
average of the dumping margins calculated for the mandatory
respondents; (B) a simple average of the dumping margins calculated
for the mandatory respondents; and (C) a weighted-average of the
dumping margins calculated for the mandatory respondents using each
company's publicly-ranged values for the merchandise under
consideration. We compare (B) and (C) to (A) and select the rate
closest to (A) as the most appropriate rate for all other companies.
See 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, 53663
(September 1, 2010).
---------------------------------------------------------------------------
Preliminary Determination
The Department preliminarily determines that DOTP from Korea is
being, or is likely to be, sold in the United States at LTFV, pursuant
to section 733 of the Act, and that the following estimated weighted-
average dumping margins exist during the POI:
------------------------------------------------------------------------
Weighted-
average
Exporter/Producer dumping
margins
(percent)
------------------------------------------------------------------------
Aekyung Petrochemical Co., Ltd.......................... 3.96
LG Chem, Ltd............................................ 5.75
All Others.............................................. 4.47
------------------------------------------------------------------------
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, we will direct
U.S. Customs and Border Protection (``CBP'') to suspend liquidation of
all entries of DOTP from Korea as described in Appendix I of this
notice, which are entered, or withdrawn from warehouse, for consumption
on or after the date of publication of this notice in the Federal
Register.
Pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d),
we will instruct CBP to require a cash deposit equal to the weighted-
average amount by which the NV exceeds U.S. price, as indicated in the
chart above, as follows: (1) The rate for the mandatory respondents
listed above will be the respondent-specific rates we determined in
this preliminary determination; (2) if the exporter is not a mandatory
respondent identified above, but the producer is, the rate will be the
specific rate established for the producer of the subject merchandise;
and (3) the rate for all other producers or exporters will be the all-
others rate. These suspension-of-liquidation instructions will remain
in effect until further notice.
Disclosure
We intend to disclose the calculations performed to interested
parties in this proceeding within five days of the public announcement
of this preliminary determination in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i) of the Act, we intend to verify
information relied upon in making our final determination.
Public Comment
Interested parties are invited to comment on this preliminary
determination. 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 final verification report is
issued in this proceeding, and rebuttal briefs, limited to issues
raised in case briefs, may be submitted no later than five days after
the deadline date for case briefs.\7\ Pursuant to 19 CFR 351.309(c)(2)
and (d)(2), parties who submit case briefs or rebuttal briefs in this
proceeding are encouraged to submit with each argument: (1) A statement
of the issue; (2) a brief summary of the argument; and (3) a table of
authorities.
---------------------------------------------------------------------------
\7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
---------------------------------------------------------------------------
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing must submit a written request to the Assistant
Secretary for Enforcement and Compliance, U.S. Department of Commerce
within 30 days after the date of publication of this notice. Requests
should contain the party's name, address, and telephone number, the
number of participants, and a list of the issues to be discussed. If a
request for a hearing is made, the Department intends to hold the
hearing at the U.S. Department of Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230, 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.
All documents must be filed electronically using ACCESS. An
electronically-filed request must be received successfully in its
entirety by ACCESS by 5:00 p.m. Eastern Time.
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
Petitioners. 19 CFR 351.210(e)(2) requires that requests by respondents
for postponement of a final antidumping 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 January 10, 2017, pursuant to 19 CFR 351.210(e), LG Chem, Ltd.
requested that, contingent upon an affirmative preliminary
determination of sales at LTFV for the respondents, the Department
postpone the final determination and that provisional measures be
extended from a four-month period to a period not to exceed six
months.\8\
---------------------------------------------------------------------------
\8\ See Letter from LG Chem, Ltd. ``LG Chem's Request for
Extension of Final Determination and Provisional Measures,'' dated
January 10, 2017.
---------------------------------------------------------------------------
In accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii), because (1) our preliminary determination is
affirmative; (2) the requesting exporter accounts for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, we are postponing the final determination and
extending the provisional measures from a four-month period to a period
not greater than six months. Accordingly, we will make our final
determination no later than 135 days after the date of publication of
this preliminary determination, pursuant to section 735(a)(2) of the
Act.
International Trade Commission (``ITC'') Notification
In accordance with section 733(f) of the Act, we are notifying the
ITC of our affirmative preliminary determination of sales at LTFV. If
our final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45
[[Page 9197]]
days after our final determination whether these imports are materially
injuring, or threaten material injury to, the U.S. industry.\9\
---------------------------------------------------------------------------
\9\ See section 735(b)(2) of the Act.
---------------------------------------------------------------------------
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: January 26, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is dioctyl
terephthalate (``DOTP''), regardless of form. DOTP that has been
blended with other products is included within this scope when such
blends include constituent parts that have not been chemically
reacted with each other to produce a different product. For such
blends, only the DOTP component of the mixture is covered by the
scope of this investigation.
DOTP that is otherwise subject to this investigation is not
excluded when commingled with DOTP from sources not subject to this
investigation. Commingled refers to the mixing of subject and non-
subject DOTP. Only the subject component of such commingled products
is covered by the scope of the investigation.
DOTP has the general chemical formulation
C6H4(C8H17COO)2
and a chemical name of ``bis (2-ethylhexyl) terephthalate'' and has
a Chemical Abstract Service (``CAS'') registry number of 6422-86-2.
Regardless of the label, all DOTP is covered by this investigation.
Subject merchandise is currently classified under subheading
2917.39.2000 of the Harmonized Tariff Schedule of the United States
(``HTSUS''). Subject merchandise may also enter under subheadings
2917.39.7000 or 3812.20.1000 of the HTSUS. While the CAS registry
number and HTSUS classification are provided for convenience and
customs purposes, the written description of the scope of this
investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional
Measures
V. Scope Comments
VI. Selection of Respondents
VII. Preliminary Determination of Critical Circumstances
VIII. Discussion of Methodology
A. Determination of the Comparison Period
B. Results of the Differential Pricing Analysis
IX. Product Comparisons
X. Date of Sale
XI. U.S. Price
A. Export Price
B. Constructed Export Price
C. Duty Drawback
XII. Normal Value
A. Comparison Mark Viability
B. Affiliated-Party Transactions and Arm's-Length Test
C. Level of Trade
D. COP Analysis
E. Calculation of NV Based on Comparison Market Prices
XIII. Currency Conversion
XIV. Conclusion
[FR Doc. 2017-02250 Filed 2-2-17; 8:45 am]
BILLING CODE 3510-DS-P