[Federal Register Volume 90, Number 63 (Thursday, April 3, 2025)]
[Notices]
[Pages 14613-14616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05756]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-926]
Certain Epoxy Resins From India: Final Affirmative Determination
of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
certain epoxy resins (epoxy resins) from India 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.
DATES: Applicable April 3, 2025.
FOR FURTHER INFORMATION CONTACT: David Crespo, AD/CVD Operations,
Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3693.
SUPPLEMENTARY INFORMATION:
Background
On November 13, 2024, Commerce published in the Federal Register
its preliminary affirmative determination in the LTFV investigation of
epoxy resins from India.\1\ We invited interested parties to comment on
the Preliminary Determination.
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\1\ See Certain Epoxy Resins from India: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, Postponement of
Final Determination, and Extension of Provisional Measures, 89 FR
89612 (November 13, 2024) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum (PDM).
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, may be found in the
Issues and Decision Memorandum.\2 \The Issues and 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
[[Page 14614]]
complete version of the Issues and Decision Memorandum can be accessed
directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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\2 \ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Epoxy Resins from India,'' dated concurrently with,
and hereby adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation are epoxy resins from
India. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from interested parties. Commerce issued a Preliminary Scope
Decision Memorandum to address these comments and set aside a period of
time for parties to address scope issues in scope-specific case and
rebuttal briefs.\3 \Between February 2025 and March 2025, Commerce
received scope-specific case and rebuttal briefs from interested
parties.\4 \We made changes to the scope of the investigation from the
scope published in the Preliminary Determination, as noted in Appendix
I.\5\
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\3\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated November 6, 2024 (Preliminary Scope Decision Memorandum).
\4\ See Petitioner's Letter, ``Case Brief on Scope Issues,''
dated February 28, 2025; Sherwin Williams' Letter, ``Scope Case
Brief on Behalf of Sherwin-Williams,'' dated February 28, 2025;
PPG's Letter, ``Scope Case Brief of PPG Industries, Inc.,'' dated
February 28, 2025; Petitioner's Letter, ``Petitioner's Letter in
Lieu of Rebuttal Brief on Scope Issues,'' dated March 5, 2025; PPG's
Letter, ``Rebuttal Scope Case Brief of PPG Industries, Inc.,'' dated
March 5, 2025; and Sherwin-Williams' Letter, ``Scope Rebuttal Brief
on Behalf of Sherwin Williams,'' dated March 5, 2025.
\5\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
concurrently with this notice.
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Verification
As provided in section 782(i)(1) of the Tariff Act of 1930, as
amended (the Act), in November 2024 and January 2025, we verified the
sales and cost information submitted by Atul Limited (Atul) for use in
our final determination. We used standard verification procedures,
including an examination of relevant sales and accounting records, and
original source documents provided by Atul.\6\
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\6\ See Memoranda, ``Verification of the Sales Response of Atul
Ltd. in the Antidumping Investigation of Certain Epoxy Resins from
India,'' dated January 29, 2025; ``CEP Verification of the Sales
Response of Atul USA Inc in the Antidumping Investigation of Certain
Epoxy Resins from India,'' dated January 29, 2025; and
``Verification of the Cost Response of Atul Limited in the
Antidumping Duty Investigation of Epoxy Resin from India,'' dated
February 12, 2025.
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Use of Adverse Facts Available (AFA)
Champion Advanced Materials (Champion) was selected as a mandatory
respondent in this investigation.\7\ However, Champion did not provide
an adequate response to Commerce's Initial Questionnaire.\8\ As
discussed in the Preliminary Determination, Commerce preliminarily
determined that the use of facts otherwise available with adverse
inferences, pursuant to sections 776(a) and (b) of the Act, was
appropriate with respect to Champion.\9\ No parties commented on the
application of AFA with respect to Champion. Accordingly, for this
final determination, we continue to find that the application of AFA,
pursuant to sections 776(a) and (b) of the Act, is warranted with
respect to Champion.
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\7 \ See Memorandum, ``Respondent Selection,'' dated May 16,
2024.
\8\ See Commerce's Letter, ``Initial Questionnaire,'' dated May
20, 2024 (Initial Questionnaire).
\9 \ See Preliminary Determination PDM at section IV
``APPLICATION OF FACTS AVAILABLE AND USE OF ADVERSE INFERENCES.''
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by
interested parties in this investigation are addressed in the Issues
and Decision Memorandum. A list of the issues addressed in the Issues
and Decision Memorandum is attached as Appendix II to this notice.
Changes Since the Preliminary Determination
We made certain changes to the margin calculations for Atul since
the Preliminary Determination.\10\ For a discussion of these changes,
see the Issues and Decision Memorandum.
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\10\ See Memorandum, ``Analysis for the Final Determination of
the Less-Than-Fair-Value Investigation of Certain Epoxy Resins from
India for Atul Limited,'' dated concurrently with this notice, at
Attachments III and IV.
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All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated
weighted-average dumping margin for all other producers and exporters
not individually investigated shall be equal to the weighted average of
the estimated weighted-average dumping margins established for
individually investigated exporters and producers, excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act, i.e., facts otherwise available.
In this investigation, Commerce calculated an estimated weighted-
average dumping margin for Atul that is not zero, de minimis, or based
entirely on facts otherwise available. The estimated weighted-average
dumping margin determined for Champion is based on total facts
available with an adverse inference. Consequently, for this final
determination, the estimated weighted-average dumping margin calculated
for Atul is the estimated weighted-average dumping margin for all other
producers and exporters.
Final Determination
Commerce determines that the following estimated weighted-average
dumping margins exist:
------------------------------------------------------------------------
Estimated
weighted-
average
Exporter or producer dumping
margin
(percent)
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Atul Limited................................................ 12.69
Champion Advanced Materials................................. * 15.68
All Others.................................................. 12.69
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose under administrative protective order
(APO) the calculations performed in connection with this final
determination to interested parties 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 the Federal Register, in
accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all entries of subject merchandise, as described
in Appendix I of this notice, which were entered, or withdrawn from
warehouse, for consumption, on or after November 13, 2024, the date of
publication of the Preliminary Determination in the Federal Register.
These suspension of liquidation instructions will remain in effect
until further notice.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), upon the publication of this notice, we will instruct CBP
to require a cash deposit for estimated antidumping duties for such
entries as follows: (1) the cash deposit rate for the exporters listed
in the table above is the company-specific estimated weighted-average
dumping margins listed for the respondents in the table; (2) if the
exporter is not listed in the table above, but the producer is, then
the cash deposit rate is the company-specific estimated weighted-
average dumping margins listed for the producer of the subject
merchandise in the table above; and (3) the cash deposit
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rate for all other producers and exporters is the all-others estimated
weighted-average dumping margin listed in the table above.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of export
subsidies countervailed in a companion countervailing duty (CVD)
proceeding, when CVD provisional measures are in effect. Accordingly,
where Commerce has made a final affirmative determination for
countervailable export subsidies, Commerce offsets the estimated
weighted-average dumping margin by the appropriate CVD rate. Commerce
would adjust the cash deposit rate for export subsidies in the
companion CVD investigation by the appropriate export subsidy rate,
however, suspension of liquidation of provisional measures in the
companion CVD proceeding has been discontinued; \11\ therefore, we are
not instructing CBP to collect cash deposits based upon the adjusted
estimated weighted-average dumping margin for those export subsidies at
this time. If the U.S. International Trade Commission (ITC) makes a
final affirmative determination of injury due to both dumping and
subsidies, then the cash deposit rate will be revised effective on the
date of the publication of the ITC's final affirmative determination in
the Federal Register to be the company-specific estimated weighted-
average dumping margin adjusted for export subsidies.
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\11\ See Certain Epoxy Resins from India: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination With Final Antidumping Duty Determination, 89 FR 74889
(September 13, 2024); see also section 703(d) of the Act, which
states that the provisional measures may not be in effect for more
than four months, which in the companion CVD case is 120 days after
the publication of the preliminary determination, or January 10,
2025, (i.e., last day provisional measures are in effect).
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U.S. ITC Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of our 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 of epoxy resins from India no later than 45 days
after this final determination. If the ITC determines that such injury
does not exist, this proceeding will be terminated, all cash deposits
posted will be refunded, and suspension of liquidation will be lifted.
If the ITC determines that such injury does exist, Commerce will issue
an antidumping duty order directing CBP to assess, upon further
instruction by Commerce, 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, as discussed in the ``Continuation of Suspension of
Liquidation'' section above.
Administrative Protective Order
This notice will serve as the final reminder to parties subject to
an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of 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 which is subject to sanction.
Notification to Interested Parties
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act, and 19 CFR
351.210(c).
Dated: March 28, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this investigation is fully or
partially uncured epoxy resins, also known as epoxide resins,
polyepoxides, oxirane resins, ethoxyline resins, diglycidyl ether of
bisphenol, (chloromethyl) oxirane, or aromatic diglycidyl, which are
polymers or prepolymers containing epoxy groups (i.e., three-
membered ring structures comprised of two carbon atoms and one
oxygen atom). Epoxy resins range in physical form from low viscosity
liquids to solids. All epoxy resins are covered by the scope of
these investigations irrespective of physical form, viscosity,
grade, purity, molecular weight, or molecular structure, and
packaging.
Epoxy resins may contain modifiers or additives, such as
hardeners, curatives, colorants, pigments, diluents, solvents,
thickeners, fillers, plasticizers, softeners, flame retardants,
toughening agents, catalysts, Bisphenol F, and ultraviolet light
inhibitors, so long as the modifier or additive has not chemically
reacted so as to cure the epoxy resin or convert it into a different
product no longer containing epoxy groups. Such epoxy resins with
modifiers or additives are included in the scope where the epoxy
resin component comprises no less than 30 percent of the total
weight of the product. The scope also includes blends of epoxy
resins with different types of epoxy resins, with or without the
inclusion of modifiers and additives, so long as the combined epoxy
resin component comprises at least 30 percent of the total weight of
the blend.
Epoxy resins that enter as part of a system or kit with
separately packaged co-reactants, such as hardeners or curing
agents, are within the scope. The scope does not include any
separately packaged co-reactants that would not fall within the
scope if entered on their own.
The scope includes merchandise matching the above description
that has been processed in a third country, including by
commingling, diluting, introducing, or removing modifiers or
additives, or performing any other processing that would not
otherwise remove the merchandise from the scope of the
investigations 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 [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.
Also excluded from the scope is Tetramethyl Bisphenol F
Diglycidyl Ether epoxy resin, also known as Tetramethyl Bisphenol F-
DGE Polymer (TMBPF-DGE), that (1) has the chemical name: phenol, 4,
4'-methylenebis[2,6-dimethyl-, polymer with 2-(chloromethyl)oxirane,
(2) falls under Chemical Abstract Services (CAS) Registry Number
113693-69-9, and (3) has an epoxy equivalent weight (EEW), also
referred to as the weight per epoxide (WPE), of no less than 200 and
no greater than 230 grams of epoxy resin per epoxy equivalent (g/eq
or GEW).\12\
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\12\ The bracket in this sentence is part of the chemical
formula and does not denote business proprietary information.
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This merchandise is currently classifiable under Harmonized
Tariff Schedule of the
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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 Issues and Decision Memorandum
I. Summary
II. Background
III. Adjustments to Cash Deposit Rates for Export Subsidies
IV. Changes Since the Preliminary Determination
V. Discussion of the Issues
Comment 1: Atul's Most Recent Cost File Should Be Used
Comment 2: Atul's General and Administrative (G&A) Expenses
Should Be Adjusted
Comment 3: Atul's Financial Expenses Should Be Adjusted
VI. Recommendation
[FR Doc. 2025-05756 Filed 4-2-25; 8:45 am]
BILLING CODE 3510-DS-P