[Federal Register Volume 82, Number 36 (Friday, February 24, 2017)]
[Notices]
[Pages 11536-11538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03637]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-890]


Emulsion Styrene-Butadiene Rubber From the Republic of Korea: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value, 
Affirmative Determination of Critical Circumstances, in Part, 
Postponement of Final Determination, and Extension of Provisional 
Measures

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that emulsion styrene-butadiene rubber (ESB rubber) 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 July 1, 2015, through June 30, 2016.

DATES: Effective February 24, 2017.

FOR FURTHER INFORMATION CONTACT: Carrie Bethea or Kabir Archuletta, 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) 482-1491 or (202) 
482-2593, 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). The Department 
published the notice of initiation of this investigation on August 19, 
2016.\1\ The Department postponed the preliminary determination of this 
investigation until February 16, 2017.\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 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, 
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 accessed directly at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum 
and the electronic version are identical in content.
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    \1\ See Emulsion Styrene-Butadiene Rubber from Brazil, the 
Republic of Korea, Mexico, and Poland: Initiation of Less Than Fair 
Value Investigations, 81 FR 55438 (August 19, 2016) (Initiation 
Notice).
    \2\ See Emulsion Styrene-Butadiene Rubber from Brazil, the 
Republic of Korea, Mexico, and Poland: Postponement of Preliminary 
Determination of Sales at Less Than Fair Value Investigations, 81 FR 
85208 (November 25, 2016).
    \3\ See Memorandum to Ronald K. Lorentzen, Acting Assistant 
Secretary for Enforcement and Compliance, from Gary Taverman, 
Associate Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, entitled, ``Decision Memorandum for 
the Preliminary Determination in the Less Than Fair Value 
Investigation of Emulsion Styrene-Butadiene Rubber from Korea,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is ESB rubber from Korea. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for interested parties 
to raise issues regarding product coverage (i.e., scope).\5\ No 
interested party commented on the scope of the investigation as it 
appeared in the Initiation Notice. The Department is not preliminarily 
modifying the scope language as it appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. The Department has calculated export prices in 
accordance with section 772(a) of the Act. Constructed export prices 
have been calculated in accordance with section 773 of the Act. Normal 
value (NV) For a full description of the methodology underlying our 
preliminary conclusions, see the Preliminary Decision Memorandum.

Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    In accordance with section 733(e) of the Act and 19 CFR 351.206, we 
preliminarily find that critical circumstances do not exist for LG 
Chem, Ltd. (LG Chem). However, because Daewoo International Corporation 
(Daewoo) and Kumho Petrochemical Co, Ltd (Kumho) did not respond to the 
Department's questionnaires, we have determined pursuant to sections 
776(a) and (b) of the Act, that critical circumstances exist for both 
Daewoo and Kumho as adverse facts available (AFA). For a full 
description of the methodology and results of our critical 
circumstances analysis, see the Preliminary Decision Memorandum.

Adverse Facts Available

    Daewoo and Kumho were each selected as a mandatory respondent, but 
each failed to respond to the Department's questionnaires. Accordingly, 
we preliminarily determine to based their dumping margins on AFA, in 
accordance with sections 776(a) and (b) of the Act and 19 CFR 351.308. 
As AFA, we applied the

[[Page 11537]]

highest dumping margin calculated for Korean exports of subject 
merchandise contained in the petition,\6\ 44.30 percent. For further 
discussion, see the Preliminary Decision Memorandum.
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    \6\ See the Petitions for the Imposition of Antidumping Duties 
on Emulsion Styrene Butadiene Rubber from Brazil, the Republic of 
Korea, Mexico, and Poland, dated July 21, 2016.
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All-Others Rate

    Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that 
in the preliminary determination the Department shall determine an 
estimated all-others rate for all exporters and producers not 
individually investigated, which 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 and de minimis margins, and any margins determined 
entirely under section 776 of the Act.
    The Department calculated a company-specific rate for LG Chem that 
is not zero, de minimis or determined entirely under section 776 of the 
Act. However, the Department is preliminarily applying AFA, pursuant to 
section 776(a) and (b) of the Act, to Daewoo and Kumho. Therefore, for 
purposes of determining the ``all-others'' rate and pursuant to section 
735(c)(5)(A) of the Act, we are using the weighted-average dumping 
margin calculated for LG Chem as the estimated weighted-average dumping 
margin assigned to all other producers and exporters of the merchandise 
under consideration.

Preliminary Determination

    The Department preliminarily determines that the following 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         margins
                                                               (percent)
------------------------------------------------------------------------
LG Chem, Ltd................................................       11.63
Daewoo International Corporation............................       44.30
Kumho Petrochemical Co, Ltd.................................       44.30
All-Others..................................................       11.63
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, the Department 
will direct U.S. Customs and Border Protection (CBP) to suspend 
liquidation of subject merchandise as described in the scope of the 
investigation section entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register, as discussed below. Further, pursuant to section 
733(d)(1)(B) of the Act and 19 CFR 351.205(d), the Department will 
instruct CBP to require a cash deposit equal to the weighted-average 
amount by which normal value exceeds U.S. price. These suspension of 
liquidation instructions will remain in effect until further notice.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. The Department 
preliminarily finds that critical circumstances exist for imports of 
subject merchandise produced and exported by Daewoo and Kumho. In 
accordance with section 733(e)(2)(A) of the Act, the suspension of 
liquidation shall apply to unliquidated entries of merchandise from the 
exporters identified in this paragraph that were entered, or withdrawn 
from warehouse, for consumption on or after the date which is 90 days 
before the publication of this notice.

Disclosure

    We intend to disclose the calculations performed to interested 
parties in this proceeding within five days of the date of publication 
of this notice 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

    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, 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 of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, 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.

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 petitioners. Section 351.210(e)(2) of the Department's regulations 
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 
requested that the Department postpone the final determination and that 
provisional measures be extended to a period not to exceed six 
months.\8\ 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

[[Page 11538]]

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.
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    \8\ See Letter to the Secretary of Commerce from LG Chem, 
entitled, ``LG Chem's Request for Extension of Final Determination 
and Provisional Measures,'' dated January 10, 2017.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, we are notifying the 
International Trade Commission (ITC) of our preliminary affirmative 
determination. 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 days after our final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.
    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: February 16, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    For purposes of this investigation, the product covered is cold-
polymerized emulsion styrene-butadiene rubber (ESB rubber). The 
scope of the investigation includes, but is not limited to, ESB 
rubber in primary forms, bales, granules, crumbs, pellets, powders, 
plates, sheets, strip, etc. ESB rubber consists of non-pigmented 
rubbers and oil-extended non-pigmented rubbers, both of which 
contain at least one percent of organic acids from the emulsion 
polymerization process.
    ESB rubber is produced and sold in accordance with a generally 
accepted set of product specifications issued by the International 
Institute of Synthetic Rubber Producers (IISRP). The scope of the 
investigation covers grades of ESB rubber included in the IISRP 1500 
and 1700 series of synthetic rubbers. The 1500 grades are light in 
color and are often described as ``Clear'' or ``White Rubber.'' The 
1700 grades are oil-extended and thus darker in color, and are often 
called ``Brown Rubber.''
    Specifically excluded from the scope of this investigation are 
products which are manufactured by blending ESB rubber with other 
polymers, high styrene resin master batch, carbon black master batch 
(i.e., IISRP 1600 series and 1800 series) and latex (an intermediate 
product).
    The products subject to this investigation are currently 
classifiable under subheadings 4002.19.0015 and 4002.19.0019 of the 
Harmonized Tariff Schedule of the United States (HTSUS). ESB rubber 
is described by Chemical Abstract Services (CAS) Registry No. 9003-
55-8. This CAS number also refers to other types of styrene 
butadiene rubber. Although the HTSUS subheadings and CAS registry 
number 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. Scope Comments
V. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
VI. Date of Sale
VII. Product Comparisons
VIII. Export Price and Constructed Export Price
IX. Normal Value
    A. Home Market Viability
B. Level of Trade
    C. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    D. Calculation of NV Based on Comparison Market Prices
X. Application of Facts Available and Use of Adverse Inference
    A. Application of Facts Available
    B. Use of Adverse Inference
    C. Selection and Corroboration of the AFA Rate
XI. Preliminary Affirmative Determination of Critical Circumstances, 
In Part
    A. Legal Framework
    B. Critical Circumstances Analysis
    C. Analysis
XII. Currency Conversion
XIII. Conclusion

[FR Doc. 2017-03637 Filed 2-23-17; 8:45 am]
 BILLING CODE 3510-DS-P