[Federal Register Volume 82, Number 137 (Wednesday, July 19, 2017)]
[Notices]
[Pages 33062-33064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14951]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-848]


Emulsion Styrene-Butadiene Rubber From Mexico: Final Affirmative 
Determination of Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce
SUMMARY: The Department of Commerce (Department) determines that 
emulsion styrene-butadiene rubber (ESB rubber) from Mexico 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: July 19, 2017.

FOR FURTHER INFORMATION CONTACT: Julia Hancock or Javier Barrientos, 
AD/CVD

[[Page 33063]]

Operations, Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-1394 or (202) 482-2243, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 24, 2017, the Department of Commerce (Department) 
published the Preliminary Determination of this antidumping duty LTFV 
investigation, as provided by section 735 of the Tariff Act of 1930, as 
amended (Act), in which the Department found that ESB rubber from 
Mexico was sold at LTFV.\1\ A summary of the events that have 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 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 Mexico: 
Preliminary Affirmative Determination of Sales at Less Than Fair 
Value, Postponement of Final Determination, and Extension of 
Provisional Measures, 82 FR 11534 (February 24, 2017), and 
accompanying Preliminary Decision Memorandum (collectively, 
Preliminary Determination).
    \2\ See ``Issues and Decision Memorandum for the Final 
Determination in the Less-Than-Fair-Value Investigation of Emulsion 
Styrene-Butadiene Rubber from Mexico,'' 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 
Mexico. 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 March and April 2017, 
the Department conducted verification of the information reported by 
the mandatory respondent Industrias Negromex S.A. de C.V.--Planta 
Altamira (Negromex) 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.

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 Negromex, and also the all-others rate.

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 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 calculated an 
individual estimated weighted-average dumping margin for Negromex, the 
only individually examined exporter/producer in this investigation. 
Because the only individually calculated dumping margin is not zero, de 
minimis, or based entirely on facts otherwise available, the estimated 
weighted-average dumping margin calculated for Negromex is the margin 
assigned to 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)
------------------------------------------------------------------------
Industrias Negromex S.A. de C.V.--Planta Altamira                  19.52
 (Negromex).............................................
All-Others..............................................           19.52
------------------------------------------------------------------------

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 
Mexico 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 
margin 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.

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

[[Page 33064]]

is materially injured, or threatened with material injury, by reason of 
imports of ESB rubber from Mexico 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.

    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 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: Partial Adverse Fact Available for Negromex's 
Financial Expense Rate
    Comment 2: Partial Adverse Facts Available for Negromex's 
Domestic Brokerage and Handling Expenses, U.S. Brokerage and 
Handling Expenses, and U.S. Inland Freight From Warehouse to 
Customer Expenses
    Comment 3: Partial Adverse Facts Available for Certain 
Unreported Sales
    Comment 4: Eligibility for a CEP Offset
    Comment 5: Recalculation of Negromex's G&A Expense Rate
    Comment 6: Billing Adjustment
    Comment 7: Treatment of Freight Expenses Included in Resirene's 
SG&A
    Comment 8: Apply the Market Price of Styrene to Negromex's COM
    Comment 9: Treatment of Technology Expenses in Negromex's G&A 
Ratio
    Comment 10: Short-Term Interest Rate for Negromex's Credit 
Expenses
VII. Recommendation

[FR Doc. 2017-14951 Filed 7-18-17; 8:45 am]
 BILLING CODE 3510-DS-P