[Federal Register Volume 82, Number 121 (Monday, June 26, 2017)]
[Notices]
[Pages 28824-28826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13285]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-889]
Dioctyl Terephthalate From the Republic of Korea: Final
Determination of Sales at Less Than Fair Value and Final Negative
Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) 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. For information on the estimated weighted-
average dumping margins of sales at LTFV, see the ``Final
Determination'' section of this notice.
DATES: Effective June 26, 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 Avenue
NW., Washington, DC 20230; telephone: (202) 482-4243 or (202) 482-6386,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 3, 2017, the Department published the Preliminary
Determination of sales at LTFV of DOTP from Korea.\1\ The petitioner in
this investigation is Eastman Chemical Company. The mandatory
respondents in this investigation are Aekyung Petrochemical Co., Ltd.
(AKP) and LG Chem Ltd. (LG Chem). Both AKP and LG Chem participated in
this investigation. A complete summary of the events that occurred
since publication of the Preliminary Determination, as well as a full
[[Page 28825]]
discussion of the issues raised by parties for this final
determination, may be found in the Issues and Decision Memorandum,
which is dated concurrently with, and hereby adopted by, this
notice.\2\
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\1\ See 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, 82 FR 9195 (February 3,
2017) (Preliminary Determination) and accompanying memorandum,
``Decision Memorandum for the Preliminary Determination in the Less-
Than-Fair-Value Investigation of Dioctyl Terephthalate from the
Republic of Korea'' (Preliminary Decision Memorandum).
\2\ See the Department's memorandum, ``Issues and Decision
Memorandum for the Final Determination in the Antidumping Duty
Investigation of Dioctyl Terephthalate From the Republic of Korea,''
dated concurrently with this notice (Issues and Decision
Memorandum).
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The Issues and Decision Memorandum is a public document and is
available 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 and
to all parties in the Central Records Unit, Room B-8024 of the
Department's main building. In addition, a complete version of the
Issues and Decision Memorandum can be accessed at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum
and electronic version are identical in content.
Scope of the Investigation
The product covered by this investigation is DOTP from Korea. For a
complete description of the scope of this investigation, see Appendix
I.
Analysis of Comments Received
All issues raised in the case briefs and rebuttal briefs submitted
by interested parties in this proceeding are discussed in the Issues
and Decision Memorandum. A list of the issues raised by parties and
responded to by the Department in the Issues and Decision Memorandum is
attached at Appendix II.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), the Department verified the sales and cost data reported by
AKP and LG Chem for use in our final determination. We used standard
verification procedures, including an examination of relevant
accounting and production records, and original source documents
provided by the respondents.
Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings at
verification, we made certain changes to the margin calculations for
AKP and LG Chem since the Preliminary Determination. These changes are
discussed in the ``Margin Calculations'' section of the Issues and
Decision Memorandum.
Final Negative Determination of Critical Circumstances
On November 15, 2016, the petitioner timely filed a 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 from Korea.\3\ We find that critical
circumstances do not exist with respect to AKP and LG Chem.\4\ For a
complete discussion of this issue, see the ``Final Negative
Determination of Critical Circumstances'' section of the Issues and
Decision Memorandum.
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\3\ See letter from Petitioner, ``Re: Dioctyl Terephthalate
(``DOTP'') From Korea; Critical Circumstances Allegation,'' dated
November 15, 2016 (Critical Circumstances Allegation).
\4\ See Preliminary Determination, 82 FR at 9195.
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All-Others Rate
In accordance with section 735(c)(1)(B)(i)(I) of the Act, the
Department calculated a dumping margin for the individually
investigated exporters/producers of the subject merchandise. Consistent
with sections 735(c)(1)(B)(i)(II) and 735(c)(5) of the Act, the
Department also calculated an estimated ``all-others'' rate for
exporters and producers not individually investigated. Section
735(c)(5)(A) of the Act provides that the ``all-others'' rate shall be
an amount equal to the weighted average of the estimated weighted-
average dumping margins established for individually investigated
exporters and producers, excluding any margins that are zero or de
minimis or any margins determined entirely under section 776 of the
Act. We calculated the all-others rate using a weighted average of the
dumping margins calculated for the mandatory respondents using each
company's publicly-ranged values for the merchandise under
consideration, pursuant to section 735(c)(5)(A) of the Act, as
referenced in the ``Final Determination'' section below.\5\
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\5\ See memorandum to the file, ``Dioctyl Terephthalate From the
Republic of Korea: Calculation of All-Others' Rate in the Final
Determination,'' dated concurrently with this notice.
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Final Determination
The Department determines that the weighted-average dumping margins
to be:
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Weighted-
average
Exporter/producer margins
(percent)
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Aekyung Petrochemical Co., Ltd............................. 4.08
LG Chem, Ltd............................................... 2.71
All-Others................................................. 3.69
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Disclosure
In accordance with 19 CFR 351.224(b), we intend to disclose the
calculations performed to parties in this proceeding within five days
of any public announcement of this notice.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we will
instruct U.S. Customs and Border Protection (CBP) to continue the
suspension of liquidation of all appropriate entries of DOTP from
Korea, as described in Appendix I of this notice, which were entered,
or withdrawn from warehouse, for consumption on or after February 3,
2017, the date of publication of the Preliminary Determination of this
investigation in the Federal Register. Further, the Department will
instruct CBP to require a cash deposit equal to the estimated amount by
which the normal value exceeds the U.S. price as shown above.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because the final determination in this
proceeding is affirmative, in accordance with section 735(b)(2) of the
Act, the ITC will make its final determination as to whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports, or sales (or the
likelihood of sales) for importation of DOTP from Korea no later than
45 days after our final determination. If the ITC determines that
material injury or threat of material injury does not exist, the
proceeding will be terminated and all cash deposits will be refunded.
If the ITC determines that such injury does exist, the Department will
issue an antidumping duty order directing CBP to assess, upon further
instruction by the Department, antidumping duties on all imports of the
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation.
[[Page 28826]]
Notification Regarding Administrative Protective Orders (APO)
This notice serves as the only reminder to parties subject to an
APO of their responsibility concerning the disposition of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely notification of the return or destruction of APO
materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and the terms of an
APO is a violation subject to sanction.
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act.
Dated: June 20, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
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 Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Final Negative Determination of Critical Circumstances
V. Margin Calculations
VI. Discussion of the Issues
Comment 1: Whether the Department's Quarterly Cost Methodology
Justifies Comparing Sales on a Quarterly Basis
Comment 2: Whether AKP's Reporting Supports the Department's
Decision To Rely on Quarterly Costs for the Final Determination
Comment 3: Whether To Adjust the Reported Cost of Purchases of
Raw Material 2-Ethyl Hexanol (2-EH)
Comment 4: The Structure of AKP's Paper Transactions and the
Basis for U.S. Price for AKP's Channel 3 and 4 Sales
Comment 5: AKP's Affiliate's Financial Statements and Indirect
Selling Expenses Calculation
Comment 6: Duty Drawback for AKP's U.S. Sales
Comment 7: LG Chem's Duty Drawback Adjustment
Comment 8: LG Chem's Constructed Export Price (CEP) Offset
Comment 9: Reported Currency for LG Chem's Bank Charges
Comment 10: LG Chem's General and Administrative Expense (G&A)
Ratio
Comment 11: LG Chem's Raw Material and Variable Overhead Costs
VII. Recommendation
[FR Doc. 2017-13285 Filed 6-23-17; 8:45 am]
BILLING CODE 3510-DS-P