[Federal Register Volume 82, Number 137 (Wednesday, July 19, 2017)]
[Notices]
[Pages 33045-33047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14950]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-890]


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

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) 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).

DATES: July 19, 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

    On February 24, 2017, the Department of Commerce published the 
Preliminary Determination of this antidumping duty investigation, as 
provided by section 735 of the Tariff Act of 1930, as amended (Act), in 
which the Department found that ESB rubber from Korea was sold at 
LTFV.\1\ A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by interested parties for this final 
determination, may be found in the Issues and Decision Memorandum.\2\ 
The Issues and Decision 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 
Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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    \1\ See 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, 82 FR 11536 (February 24, 2017) and 
accompanying Preliminary Decision Memorandum (Preliminary Decision 
Memorandum) (collectively, Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Less-Than-Fair-Value Investigation of 
Emulsion Styrene-Butadiene Rubber from the Republic of Korea,'' 
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 is ESB rubber from Korea. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    No interested party commented on the scope of the investigation as 
it appeared in the Initiation Notice.\3\ Therefore, the scope of this 
investigation remains unchanged for this final determination.
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    \3\ 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).
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Verification

    As provided in section 782(i) of the Act, in April and June 2017, 
the Department conducted verification of the information reported by a 
mandatory respondent, LG Chem, Ltd. (LG Chem), and its U.S. affiliate, 
LG Chem America, Ltd., for use in the Department's final determination. 
The Department used standard verification procedures, including an 
examination of relevant accounting and production records and original 
source documents provided by the respondent.\4\
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    \4\ Memorandum, ``Verification of the Cost Response of LG Chem, 
Ltd. in the Antidumping Duty Investigation of Emulsion Styrene-
Butadiene Rubber from the Republic of South Korea,'' dated April 13, 
2017; Memorandum, ``Verification of U.S. Sales of LG Chem America, 
Inc., in the Antidumping Duty Investigation of Emulsion Styrene-
Butadiene Rubber from the Republic of Korea,'' dated May 3, 2017; 
Memorandum, ``Verification of LG Chem, Ltd., in the Antidumping Duty 
Investigation of Emulsion-Styrene Butadiene Rubber from the Republic 
of Korea,'' dated June 14, 2017.
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    Because Daewoo International Corporation (Daewoo) and Kumho 
Petrochemical Co, Ltd (Kumho), mandatory respondents in this 
investigation, did not provide information requested by the Department, 
and the Department preliminarily determined Daewoo and Kumho to have 
been uncooperative, the Department did not verify their books and 
records and facilities.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of these issues is attached to this 
notice as Appendix II. Based on our analysis of the comments received 
and our findings at verification, we made certain changes to the margin 
calculation for LG Chem, and also the all-others rate.

Use of Adverse Facts Available

    The Department found in the Preliminary Determination that it was 
appropriate to apply facts available with adverse inferences to Daewoo 
and Kumho. No interested parties commented on the preliminary 
application of adverse facts-available dumping margins to Daewoo and 
Kumho. For the final determination, the Department has not altered its 
analysis or decision to apply adverse facts-available to Daewoo and 
Kumho. For a full discussion of the Department's adverse facts 
available determination, see the Preliminary Determination.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that in the final 
determination the Department shall determine an estimated all-others 
rate for all exporters

[[Page 33046]]

and producers not individually examined. This 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 and de minimis margins, and any 
margins determined entirely under section 776 of the Act.
    For the final determination, the Department assigned a rate based 
entirely on facts available to Daewoo and Kumho. Therefore, the only 
rate that is not zero, de minimis or based entirely on facts otherwise 
available is the rate calculated for LG Chem. Consequently, the rate 
calculated for LG Chem is also assigned as the rate for all-other 
producers and exporters, pursuant to section 735(c)(5)(A) of the Act.

Final Determination

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

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                                                              average
                    Exporter/producer                         dumping
                                                              margin
                                                             (percent)
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Daewoo International Corporation........................        ** 44.30
Kumho Petrochemical Co, Ltd.............................        ** 44.30
LG Chem, Ltd............................................            9.66
All-Others..............................................            9.66
------------------------------------------------------------------------
** (AFA).

Final Affirmative Determination of Critical Circumstances, in Part

    In accordance with section 733(e) of the Act, the Department 
preliminarily found critical circumstances exist with respect to Daewoo 
and Kumho and do not exist with respect to LG Chem and the non-
individually examined companies receiving the ``All-Others'' rate in 
this investigation. The Department did not receive comments concerning 
the preliminary affirmative determination of critical circumstances. 
For the final determination, the Department continues to find that, in 
accordance with 735(a)(3) of the Act, critical circumstances exist for 
Daewoo and Kumho. A discussion of the determination can be found in the 
``Critical Circumstances'' section of the Issues and Decision 
Memarandum.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of ESB rubber from Korea 
as described in Appendix I of this notice, which were entered, or 
withdrawn from warehouse, for consumption on or after, February 24, 
2017, the date of publication of the Preliminary Determination of this 
investigation in the Federal Register. Further, pursuant to section 
735(c)(1)(B)(ii) of the Act and 19 CFR 351.210(d), the Department will 
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows: 
(1) The cash deposit rate for the respondents listed above will be 
equal to the respondent-specific estimated weighted-average dumping 
margins determined in this final determination; (2) if the exporter is 
not a respondent identified above, but the producer is, then the cash 
deposit rate will be equal to the respondent-specific estimated 
weighted-average dumping margin established for that producer of the 
subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters will be equal to the all-others estimated 
weighted-average dumping margin.
    Because of the Department's affirmative determination of critical 
circumstances for Daewoo and Kumho, in accordance with section 
735(a)(3) and (c)(4)(A) of the Act, suspension of liquidation of ESB 
rubber from Korea, shall continue to apply, for Daewoo and Kumho, to 
unliquidated entries of merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date which is 90 days before 
the publication of the Preliminary Determination.

Disclosure

    The Department intends to disclose to interested parties its 
calculations and analysis performed in this final determination 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 accordance with 19 CFR 351.224(b).

International Trade Commission Notification

    In accordance with section 735(d) of the Act, the Department will 
notify the International Trade Commission (ITC) of its final 
determination. 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 ESB rubber from Korea no later than 45 
days after the Department's final determination. If the ITC determines 
that material injury or threat of material injury does not exist, the 
proceeding will be terminated and all securities posted will be 
refunded or canceled. 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 appropriate imports of the subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of the 
suspension of liquidation.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
administrative protective order (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 and 19 CFR 
351.210(c).

    Dated: July 10, 2017.
Gary Taverman
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
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

[[Page 33047]]

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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Margin Calculations
VI. Discussion of the Issues
    Comment 1: CEP Offset
    Comment 2: Cost Adjustments Based on Transactions Disregarded 
Rule
    Comment 3: Cost Adjustments Based on Verification Findings
    Comment 4: Sales Expense Adjustments Based on Verification 
Findings
    Comment 5: Duty Drawback Adjustment
VII. Recommendation
[FR Doc. 2017-14950 Filed 7-18-17; 8:45 am]
 BILLING CODE 3510-DS-P