[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]


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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.
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    \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'').
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    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.
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    \3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \4\ See Initiation Notice, 81 FR at 49629.
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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.''
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    \5\ See letter from Petitioner, ``Re: Dioctyl Terephthalate from 
Korea; Critical Circumstances Allegation,'' dated November 15, 2016 
(``Critical Circumstances Allegation'').

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[[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\
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    \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).
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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.
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    \7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    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\
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    \8\ See Letter from LG Chem, Ltd. ``LG Chem's Request for 
Extension of Final Determination and Provisional Measures,'' dated 
January 10, 2017.
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    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\
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    \9\ See section 735(b)(2) of the Act.
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    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