[Federal Register Volume 82, Number 203 (Monday, October 23, 2017)]
[Notices]
[Pages 48977-48982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22931]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-852, A-560-832, A-580-896, A-535-905, A-583-862]


Polyethylene Terephthalate Resin From Brazil, Indonesia, the 
Republic of Korea, Pakistan, and Taiwan: Initiation of Less-Than-Fair-
Value Investigations

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

DATES: Applicable October 16, 2017.

FOR FURTHER INFORMATION CONTACT: Gene Calvert at (202) 482-3586 
(Indonesia, Korea, and Pakistan) or Jun Jack Zhao at (202) 482-1396 
(Brazil and Taiwan), Office VII, AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, Department of Commerce, 
1401 Constitution Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petitions

    On September 26, 2017, the Department of Commerce (the Department) 
received antidumping duty (AD) petitions concerning imports of 
polyethylene terephthalate (PET) resin from Brazil, Indonesia, Korea, 
Pakistan, and Taiwan, filed in proper form on behalf of DAK Americas 
LLC, Indorama Ventures USA, Inc. (Indorama), M&G Polymers USA, LLC, and 
Nan Ya Plastics Corporation, America (collectively, the 
petitioners).\1\ The petitioners are domestic producers of PET 
resin.\2\
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    \1\ See Letter from the petitioners, ``Polyester (sic) 
Terephthalate (``PET'') Resin from Brazil, Indonesia, the Republic 
of Korea, Pakistan, and Taiwan--Petition for the Imposition of 
Antidumping Duties,'' September 26, 2017 (the Petitions). Indorama 
is not a petitioner with respect to the Indonesia petition. See 
Volume I of the Petitions, at 1.
    \2\ See Volume I of the Petitions, at 1.
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    On September 29, 2017, the Department requested supplemental 
information pertaining to certain areas of the Petitions.\3\ The 
petitioners filed responses to these requests on October 3, 2017.\4\
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    \3\ See Letter from the Department, ``Petition for the 
Imposition of Antidumping Duties on Imports of Certain Polyethylene 
Terephthalate Resin from Brazil: Supplemental Questions,'' September 
29, 2017; see also Letter from the Department, ``Petition for the 
Imposition of Antidumping Duties on Imports of Certain Polyethylene 
Terephthalate Resin from Indonesia: Supplemental Questions,'' 
September 29, 2017; Letter from the Department, ``Petition for the 
Imposition of Antidumping Duties on Imports of Certain Polyethylene 
Terephthalate Resin from the Republic of Korea: Supplemental 
Questions,'' September 29, 2017; Letter from the Department, 
``Petition for the Imposition of Antidumping Duties on Imports of 
Certain Polyethylene Terephthalate Resin from Pakistan: Supplemental 
Questions,'' September 29, 2017; Letter from the Department, 
``Petition for the Imposition of Antidumping Duties on Imports of 
Certain Polyethylene Terephthalate Resin from Taiwan: Supplemental 
Questions,'' September 29, 2017; and Letter from the Department, 
``Petitions for the Imposition of Antidumping Duties on Imports of 
Certain Polyethylene Terephthalate Resin from Brazil, Indonesia, the 
Republic of Korea, Pakistan, and Taiwan,'' September 29, 2017.
    \4\ See Letter from the petitioners, ``Polyethylene 
Terephthalate (``PET'') Resin from Brazil, Indonesia, the Republic 
of Korea, Pakistan, and Taiwan--Petitioners' Amendment to Volume I 
Relating to General Issues,'' October 3, 2017 (General Issues 
Supplement); see also Letter from the petitioners, ``Polyethylene 
Terephthalate (``PET'') Resin from Brazil, Indonesia, the Republic 
of Korea, Pakistan, and Taiwan--Petitioners' Amendment to Volume II 
Relating to Brazil Antidumping Duties,'' October 3, 2017; Letter 
from the petitioners, ``Polyethylene Terephthalate (``PET'') Resin 
from Brazil, Indonesia, the Republic of Korea, Pakistan, and 
Taiwan--Petitioners' Amendment to Volume III Relating to Indonesia 
Antidumping Duties,'' October 3, 2017; Letter from the petitioners, 
``Polyethylene Terephthalate (``PET'') Resin from Brazil, Indonesia, 
the Republic of Korea, Pakistan, and Taiwan--Petitioners' Amendment 
to Volume IV Relating to the Republic of Korea Antidumping Duties,'' 
October 3, 2017; Letter from the petitioners, ``Polyethylene 
Terephthalate (``PET'') Resin from Brazil, Indonesia, the Republic 
of Korea, Pakistan, and Taiwan--Petitioners' Amendment to Volume V 
Relating to Pakistan Antidumping Duties,'' October 3, 2017; Letter 
from the petitioners, ``Polyethylene Terephthalate (``PET'') Resin 
from Brazil, Indonesia, the Republic of Korea, Pakistan, and 
Taiwan--Petitioners' Amendment to Volume VI Relating to Taiwan 
Antidumping Duties,'' October 3, 2017.
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that imports of PET resin 
from Brazil, Indonesia, Korea, Pakistan, and Taiwan are being, or are 
likely to be, sold in the United States at less than fair value, within 
the meaning of section 731 of the Act, and that such imports are 
materially injuring, or threatening material injury to, the domestic 
industry producing PET resin in the United States. Consistent with 
section 732(b)(1) of the Act, the Petitions are accompanied by 
information reasonably available to the petitioners to support their 
allegations.
    The Department finds that the petitioners filed these Petitions on 
behalf of the domestic industry because the petitioners are interested 
parties as defined in section 771(9)(C) of the Act. The Department also 
finds that the petitioners demonstrated sufficient industry support 
with respect to initiation of the AD investigations that the 
petitioners are requesting.\5\
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    \5\ See the ``Determination of Industry Support for the 
Petitions'' section below.
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Period of Investigations

    Because the Petitions were filed on September 26, 2017, the period 
of investigation (POI) for all investigations is July 1, 2016, through 
June 30, 2017, pursuant to 19 CFR 351.204(b)(1).

Scope of the Investigations

    The product covered by these investigations is PET resin from 
Brazil, Indonesia, Korea, Pakistan, and Taiwan. For a full description 
of the scope of these investigations, see the ``Scope of the 
Investigations'' in the Appendix to this notice.

Comments on Scope of the Investigations

    As discussed in the preamble to the Department's regulations,\6\ we 
are setting aside a period for interested parties to raise issues 
regarding product coverage (i.e., scope). The Department will consider 
all comments received from interested parties and, if necessary, will 
consult with interested parties regarding scope prior to the issuance 
of the preliminary determinations. All factual information included in 
scope comments should be limited to public information.\7\ To 
facilitate preparation of its questionnaires, the Department requests 
that interested parties submit all such comments by 5:00 p.m. Eastern 
Time (ET) on November 6, 2017, which is the first business day 20 
calendar days from the signature date of this notice.\8\ Any rebuttal 
comments, which may include factual information, must be filed by 5:00 
p.m. ET on November 16, 2017, which is 10 calendar days from the 
initial comment deadline.\9\
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    \6\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \7\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \8\ See 19 CFR 351.303(b).
    \9\ See 19 CFR 351.303(b).
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    The Department requests that any factual information the parties 
consider relevant to the scope of the investigations be submitted 
during this time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigations may be relevant, the party may contact the Department 
and request permission to submit the additional information. All such 
comments must be filed on the record of each concurrent AD 
investigation.

Filing Requirements

    All submissions to the Department must be electronically filed 
using Enforcement and Compliance's Antidumping Duty and Countervailing

[[Page 48978]]

Duty Centralized Electronic Service System (ACCESS).\10\ An 
electronically filed document must be received successfully in its 
entirety by the time and date it is due. Documents exempted from the 
electronic submission requirements must be filed manually (i.e., in 
paper form) with Enforcement and Compliance's APO/Dockets Unit, Room 
18022, Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230, and stamped with the date and time of receipt by 
the applicable deadlines.
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    \10\ For details of the Department's electronic filing 
requirements, which went into effect on August 5, 2011, see 
Antidumping and Countervailing Duty Proceedings: Electronic Filing 
Procedures; Administrative Protective Order Procedures, 76 FR 39263 
(July 6, 2011), and Enforcement and Compliance; Change of Electronic 
Filing System Name, 79 FR 69046 (November 20, 2014). Additional 
information on using ACCESS can be found at https://access.trade.gov/help.aspx, and a handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics

    The Department will provide interested parties an opportunity to 
comment on the appropriate physical characteristics of PET resin to be 
reported in response to the Department's questionnaires. This 
information will be used to identify the key physical characteristics 
of the merchandise under consideration in order to accurately report 
the relevant costs of production, as well as develop appropriate 
product-comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, parties may provide comments 
regarding which characteristics are appropriate to use as (1) general 
product characteristics and (2) product-comparison criteria. We note 
that it is not always appropriate to use all product characteristics as 
product-comparison criteria. We base product-comparison criteria on 
meaningful commercial differences among products. In other words, 
although there may be some physical product characteristics utilized by 
manufacturers to describe PET resin, it may be that only a select few 
product characteristics take commercially meaningful physical 
characteristics into account. Interested parties may also comment on 
the order in which the physical characteristics should be used in 
matching products. Generally, the Department attempts to list the most 
important physical characteristics first and the least important 
characteristics last.
    For the Department to consider the suggestions of interested 
parties in developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on November 6, 
2017. Any rebuttal comments must be filed by 5:00 p.m. ET on November 
16, 2017. As explained above, all comments and submissions to the 
Department must be electronically filed, via ACCESS, on the records of 
the concurrent Brazil, Indonesia, Korea, Pakistan, and Taiwan 
investigations.

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product,\11\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, the Department's 
determination is subject to limitations of time and information. 
Although this may result in different definitions of the like product, 
such differences do not render the decision of either agency contrary 
to law.\12\
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    \11\ See section 771(10) of the Act.
    \12\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in a 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigations. Based on our analysis of the information 
submitted on the record, we have determined that PET resin, as defined 
in the scope, constitutes a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\13\
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    \13\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Antidumping Duty Investigation Initiation Checklist: 
Polyethylene Terephthalate (PET) Resin from Brazil (Brazil AD 
Initiation Checklist), at Attachment II, ``Analysis of Industry 
Support for the Antidumping Duty Petitions Covering Polyethylene 
Terephthalate Resin (PET Resin) from Brazil, Indonesia, the Republic 
of Korea, Pakistan, and Taiwan'' (Attachment II); see also 
Antidumping Duty Investigation Initiation Checklist: Polyethylene 
Terephthalate (PET) Resin from Indonesia'' (Indonesia AD Initiation 
Checklist), at Attachment II; see also Antidumping Duty 
Investigation Initiation Checklist: Polyethylene Terephthalate (PET) 
Resin from the Republic of Korea (Korea AD Initiation Checklist), at 
Attachment II; see also Antidumping Duty Investigation Initiation 
Checklist: Polyethylene Terephthalate (PET) Resin from Pakistan 
(Pakistan AD Initiation Checklist), at Attachment II; see also 
Antidumping Duty Investigation Initiation Checklist: Polyethylene 
Terephthalate (PET) Resin from Taiwan (Taiwan AD Initiation 
Checklist), at Attachment II. These checklists are dated 
concurrently with this notice and on file electronically via ACCESS. 
Access to documents filed via ACCESS is also available in the 
Central Records Unit, Room B8024 of the main Department of Commerce 
building.
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    In determining whether the petitioners have standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the Appendix to 
this notice. The petitioners provided their 2016 production of the 
domestic like product, and compared this to the estimated total 
production of

[[Page 48979]]

the domestic like product for the entire domestic industry.\14\ We 
relied on data the petitioners provided for purposes of measuring 
industry support.\15\
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    \14\ See Volume I of the Petitions, at Exhibit GEN-2; see also 
General Issues Supplement, at Exhibit GEN-S2.
    \15\ Id. For further discussion, see Brazil AD Initiation 
Checklist, Indonesia AD Initiation Checklist, Korea AD Initiation 
Checklist, Pakistan AD Initiation Checklist, and Taiwan AD 
Initiation Checklist, at Attachment II.
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    Our review of the data provided in the Petitions, General Issues 
Supplement, and other information readily available to the Department 
indicates that the petitioner has established industry support for the 
Petitions.\16\ First, the Petitions established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, the Department is 
not required to take further action in order to evaluate industry 
support (e.g., polling).\17\ Second, the domestic producers (or 
workers) have met the statutory criteria for industry support under 
section 732(c)(4)(A)(i) of the Act because the domestic producers (or 
workers) who support the Petitions account for at least 25 percent of 
the total production of the domestic like product.\18\ Finally, the 
domestic producers (or workers) have met the statutory criteria for 
industry support under section 732(c)(4)(A)(ii) of the Act because the 
domestic producers (or workers) who support the Petitions account for 
more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the Petitions.\19\ Accordingly, the Department 
determines that the Petitions were filed on behalf of the domestic 
industry within the meaning of section 732(b)(1) of the Act.
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    \16\ See Brazil AD Initiation Checklist, Indonesia AD Initiation 
Checklist, Korea AD Initiation Checklist, Pakistan AD Initiation 
Checklist, and Taiwan AD Initiation Checklist, at Attachment II.
    \17\ See section 732(c)(4)(D) of the Act; see also Brazil AD 
Initiation Checklist, Indonesia AD Initiation Checklist, Korea AD 
Initiation Checklist, Pakistan AD Initiation Checklist, and Taiwan 
AD Initiation Checklist, at Attachment II.
    \18\ See Brazil AD Initiation Checklist, Indonesia AD Initiation 
Checklist, Korea AD Initiation Checklist, Pakistan AD Initiation 
Checklist, and Taiwan AD Initiation Checklist, at Attachment II.
    \19\ Id.
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    The Department finds that the petitioners filed the Petitions on 
behalf of the domestic industry because they are interested parties as 
defined in section 771(9)(C) of the Act, and that the petitioners have 
demonstrated sufficient industry support with respect to the AD 
investigations that they are requesting the Department to initiate.\20\
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    \20\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioners allege that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (NV). In addition, the 
petitioners allege that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\21\
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    \21\ See Volume I of the Petitions, at 16-17 and Exhibit GEN-8.
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    The petitioners contend that the industry's injured condition is 
illustrated by reduced market share; underselling and price suppression 
or depression; lost sales and revenues; declines in production, 
capacity utilization, and U.S. shipments; and declines in financial 
performance.\22\ We have assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, and 
causation, and we have determined that these allegations are properly 
supported by adequate evidence, and meet the statutory requirements for 
initiation.\23\
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    \22\ Id., at 13-32 and Exhibits GEN-5 and GEN-7 through GEN-12.
    \23\ See Brazil AD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping Duty Petitions Covering Polyethylene 
Terephthalate (PET) Resin from Brazil, Indonesia, the Republic of 
Korea, Pakistan, and Taiwan (Attachment III); Indonesia AD 
Initiation Checklist, at Attachment III; Korea AD Initiation 
Checklist, at Attachment III; Pakistan AD Initiation Checklist, at 
Attachment III; and Taiwan AD Initiation Checklist, at Attachment 
III.
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Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value upon which the Department based its decision to 
initiate AD investigations of imports of PET resin from Brazil, 
Indonesia, Korea, Pakistan, and Taiwan. The sources of data for the 
deductions and adjustments relating to U.S. price and NV are discussed 
in greater detail in the country-specific initiation checklists.

Export Price

    For all countries addressed in the Petitions, the petitioners based 
the U.S. price on export price (EP), using (1) average unit values 
(AUVs) of publicly available import data and (2) price quotes for PET 
resin produced in, and exported from, the relevant countries and 
offered for sale or actually sold in the United States.\24\ Where 
applicable, the petitioners made adjustments to the U.S. price for 
movement and other expenses, consistent with the terms of sale.\25\
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    \24\ See Brazil AD Initiation Checklist; see also Indonesia AD 
Initiation Checklist; Korea AD Initiation Checklist; Pakistan AD 
Initiation Checklist; Taiwan AD Initiation Checklist.
    \25\ Id.
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Normal Value

    For all countries addressed in the Petitions, the petitioners 
provided home market price information obtained through market research 
for PET resin produced, and offered for sale, in each country.\26\ For 
all countries, the petitioners provided market researcher declarations 
to support the price information.\27\ Where applicable, the petitioners 
made deductions for movement expenses, consistent with the terms of 
sale.\28\
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    \26\ See Brazil AD Initiation Checklist; see also Indonesia AD 
Initiation Checklist; Korea AD Initiation Checklist; Pakistan AD 
Initiation Checklist; Taiwan AD Initiation Checklist.
    \27\ See Letter from the petitioners, ``Certain Polyethylene 
Terephthalate Resin from Brazil--Petitioners' Foreign Market 
Research Report,'' September 27, 2017; see also Letter from the 
petitioners, ``Certain Polyethylene Terephthalate Resin from 
Indonesia--Petitioners' Foreign Market Research Report,'' September 
27, 2017; Letter from the petitioners, ``Certain Polyethylene 
Terephthalate Resin from the Republic of Korea--Petitioners' Foreign 
Market Research Report,'' September 27, 2017; Letter from the 
petitioners, ``Certain Polyethylene Terephthalate Resin from 
Pakistan--Petitioners' Foreign Market Research Report,'' September 
27, 2017; Letter from the petitioners, ``Certain Polyethylene 
Terephthalate Resin from Taiwan--Petitioners' Foreign Market 
Research Report,'' September 27, 2017.
    \28\ See Brazil AD Initiation Checklist; see also Indonesia AD 
Initiation Checklist; Korea AD Initiation Checklist; Pakistan AD 
Initiation Checklist; Taiwan AD Initiation Checklist.
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    For all countries included in the Petitions, the petitioners 
provided information that sales of PET resin in each respective home 
market were made at prices below the cost of production (COP).\29\ With 
respect to Brazil and Indonesia, the petitioners calculated NV based on 
home market prices as well as on constructed value (CV).\30\ With 
respect to Korea, Pakistan, and Taiwan, the petitioners calculated NV 
based only on CV.\31\ For further discussion of COP and NV based on CV, 
see the ``Normal Value Based on CV'' section of this notice.\32\
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    \29\ Id.
    \30\ See Brazil AD Initiation Checklist; see also Indonesia AD 
Initiation Checklist.
    \31\ See Korea AD Initiation Checklist; see also Pakistan AD 
Initiation Checklist; and Taiwan AD Initiation Checklist.
    \32\ In accordance with section 505(a) of the Trade Preferences 
Extension Act of 2015, amending section 773(b)(2) of the Act, in all 
investigations, the Department will request information necessary to 
calculate the CV and COP to determine whether there are reasonable 
grounds to believe or suspect that sales of the foreign like product 
have been made at prices that represent less than the COP of the 
product. The Department no longer requires a COP allegation to 
conduct this analysis.

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[[Page 48980]]

Normal Value Based on CV

    Pursuant to section 773(b)(3) of the Act, COP consists of the cost 
of manufacturing (COM), selling, general, and administrative (SG&A) 
expenses, financial expenses, and packing expenses. For Brazil, 
Indonesia, Korea, Pakistan, and Taiwan, the petitioners calculated the 
COM based on the input factors of production and usage rates from U.S. 
producers of PET resin.\33\ For Brazil, Indonesia, Korea and Taiwan, 
the input factors of production were valued using publicly available 
data on costs specific to Brazil, Indonesia, Korea and Taiwan.\34\ 
Specifically, the prices for raw material and packing inputs were based 
on Brazilian, Indonesian, Korean and Taiwanese publicly available 
import/export data.\35\ For Pakistan, because publicly-available 
information concerning the cost of certain raw materials, nitrogen, and 
packing inputs in Pakistan was not reasonably available to the 
petitioners, the petitioners based their raw material and packing input 
cost calculations on their own experiences.\36\ For all five countries, 
labor and energy costs were valued using publicly available sources 
from those countries.\37\ The petitioners calculated factory overhead, 
SG&A, and financial expenses based on the experience of Brazilian, 
Indonesian, Korean, Pakistani, and Taiwanese producers of comparable 
merchandise.\38\
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    \33\ See Brazil AD Initiation Checklist; see also Indonesia AD 
Initiation Checklist; Korea AD Initiation Checklist; Pakistan AD 
Initiation Checklist; Taiwan AD Initiation Checklist.
    \34\ Id.
    \35\ Id.
    \36\ Id.
    \37\ Id.
    \38\ Id.
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    For all five countries, because certain home market prices fell 
below the COP, pursuant to sections 773(a)(4), 773(b), and 773(e) of 
the Act, as noted above, the petitioners calculated NVs based on 
CV.\39\ Pursuant to section 773(e) of the Act, CV consists of the COM, 
SG&A expenses, financial expenses, packing expenses, and profit. The 
petitioners calculated CV using the same average COM, SG&A expenses, 
financial expenses, and packing expenses that were used to calculate 
the COP.\40\ The petitioners relied on the financial statements of the 
same producers that they used for calculating factory overhead, SG&A 
expenses, and financial expenses to calculate the profit rates.\41\
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    \39\ Id.
    \40\ Id.
    \41\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioners, there is reason to 
believe that imports of PET resin from Brazil, Indonesia, Korea, 
Pakistan, and Taiwan are being, or are likely to be, sold in the United 
States at less than fair value. Based on comparisons of EP to NV, 
pursuant to sections 772 and 773 of the Act, the estimated dumping 
margins for PET resin from each of the countries included in the 
Petitions and covered by this initiation notice are: (1) 18.76 percent 
to 115.87 percent for Brazil,\42\ (2) 8.49 percent to 53.50 percent for 
Indonesia,\43\ (3) 55.74 percent and 101.41 percent for Korea,\44\ (4) 
25.03 percent and 43.40 percent for Pakistan,\45\ and (5) 14.67 percent 
and 45.00 percent for Taiwan.\46\
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    \42\ See Brazil AD Initiation Checklist.
    \43\ See Indonesia AD Initiation Checklist.
    \44\ See Korea AD Initiation Checklist.
    \45\ See Pakistan AD Initiation Checklist.
    \46\ See Taiwan AD Initiation Checklist.
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Initiation of Less-Than-Fair-Value Investigations

    Based upon the examination of the Petitions, we find that the 
Petitions meet the requirements of section 732 of the Act. Therefore, 
we are initiating AD investigations to determine whether or not imports 
of PET resin from Brazil, Indonesia, Korea, Pakistan, and Taiwan are 
being, or are likely to be, sold in the United States at less than fair 
value. In accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determinations no later than 140 days after the date of this 
initiation.
    Numerous amendments to the AD and countervailing duty (CVD) laws 
were made under the Trade Preferences Extension Act of 2015.\47\ The 
2015 law does not specify dates of application for those amendments. On 
August 6, 2015, the Department published an interpretative rule, in 
which it announced the applicability dates for each amendment to the 
Act, except for amendments contained in section 771(7) of the Act, 
which relate to determinations of material injury by the ITC.\48\ The 
amendments to sections 771(15), 773, 776, and 782 of the Act are 
applicable to all determinations made on or after August 6, 2015, and, 
therefore, apply to these AD investigations.\49\
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    \47\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
    \48\ See Dates of Application of Amendments to the Antidumping 
and Countervailing Duty Laws Made by the Trade Preferences Extension 
Act of 2015, 80 FR 46793 (August 6, 2015).
    \49\ Id. at 46794-46795. The 2015 amendments may be found at 
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
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Respondent Selection

    The petitioners named five companies in Brazil, seven companies in 
Indonesia, 16 companies in Korea, two companies in Pakistan, and eight 
companies in Taiwan as producers and/or exporters of PET resin.\50\ 
Following standard practice in AD investigations involving market 
economy countries, in the event the Department determines that the 
number of companies for any of the countries identified above is large, 
the Department intends to review U.S. Customs and Border Protection 
(CBP) data for U.S. imports of PET resin during the respective POIs 
under the appropriate Harmonized Tariff Schedule of the United States 
subheadings, and if the Department determines that it cannot 
individually examine each company based upon the Department's 
resources, then it will select respondents based on that CBP data. We 
intend to release CBP data under Administrative Protective Order (APO) 
to all parties with access to information protected by APO within five 
business days of the announcement of the initiation of these 
investigations. Interested parties must submit applications for 
disclosure under APO in accordance with 19 CFR 351.305(b). Instructions 
for filing such applications may be found on the Department's Web site 
at http://enforcement.trade.gov/apo.
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    \50\ See Volume I of the Petitions, at Exhibit GEN-4.
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    Interested parties may submit comments regarding the CBP data and 
respondent selection by 5:00 p.m. ET on the seventh calendar day after 
placement of the CBP data on the records of these investigations. 
Interested parties wishing to submit rebuttal comments should submit 
those comments five calendar days after the deadline for initial 
comments.
    With respect to Pakistan, although the Department normally relies 
on import data from CBP to determine whether to select a limited number 
of producers/exporters for individual examination in AD investigations, 
the petitioners identified only two companies as producers/exporters of 
PET resin from Pakistan: Novatex Limited and Pakistan Synthetics 
Limited. The petitioners relied on information from a subscription 
database of import shipments, additional research of publicly-available 
sources, and the petitioners' foreign market research report as support 
for their claim that

[[Page 48981]]

there are only two producers/exporters of PET resin in Pakstan.\51\ We 
currently know of no additional producers/exporters of PET resin from 
Pakistan. Accordingly, the Department intends to examine the producers/
exporters identified in the petition for the investigation. Parties 
wishing to comment on respondent selection must do so within five days 
of the publication of this notice in the Federal Register.
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    \51\ See Volume I of the Petitions, at 13, and Exhibit GEN-4, 
See also letter from the petitioners, ``Re: Certain Polyethylene 
Terephthalate Resin from Pakistan--Petitioners' Foreign Market 
Research Report,'' dated September 27, 2017.
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    Comments must be electronically filed via ACCESS. An electronically 
filed document must be successfully received, in its entirety, by 
ACCESS no later than 5:00 p.m. ET on the relevant date noted above. If 
respondent selection is necessary, we intend to make our decisions 
regarding respondent selection, based on comments received from 
interested parties and our analysis of the record information, within 
20 days of publication of this notice.

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A)(i) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the governments of Brazil, Indonesia, Korea, Pakistan, and 
Taiwan via ACCESS. To the extent practicable, we will attempt to 
provide a copy of the public version of the Petitions to each exporter 
named in the Petitions, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of PET resin from Brazil, Indonesia, Korea, 
Pakistan, and/or Taiwan are materially injuring or threatening material 
injury to a U.S. industry. A negative ITC determination for any country 
will result in the investigation being terminated with respect to that 
country. Otherwise, these investigations will proceed according to 
statutory and regulatory time limits.

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires, (ii) evidence 
submitted in support of allegations, (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2), (iv) evidence 
placed on the record by the Department, and (v) evidence other than 
factual information described in (i)-(iv). Section 351.301(b) of the 
Department's regulations requires any party submitting factual 
information, to specify under which subsection of 19 CFR 351.102(b)(21) 
the information is being submitted and, if the information is submitted 
to rebut, clarify, or correct factual information already on the 
record, to provide an explanation identifying the information already 
on the record that the factual information seeks to rebut, clarify, or 
correct.\52\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in these investigations.
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    \52\ See 19 CFR 351.301(b).
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Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301 or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for such 
submissions and, in such a case, will inform parties in the letter or 
memorandum setting forth the deadline (i.e., include a time by which 
extension requests must be filed to be considered timely). An extension 
request must be made in a separate, stand-alone submission. We will 
grant untimely filed requests for the extension of time limits only 
under limited circumstances. Parties should review Extension of Time 
Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at 
http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior 
to submitting factual information in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\53\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company and government officials, as well as their 
representatives. Investigations initiated on the basis of petitions 
filed on or after August 16, 2013, and other segments of any AD or CVD 
proceedings initiated on or after August 16, 2013, should use the 
formats for the revised certifications provided at the end of the Final 
Rule.\54\ The Department will reject factual submissions if the 
submitting party does not comply with applicable revised certification 
requirements.
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    \53\ See section 782(b) of the Act.
    \54\ See Certification of Factual Information to Import 
Administration during Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    As noted above, Interested parties must submit applications for 
disclosure under APO in accordance with 19 CFR 351.305. On January 22, 
2008, the Department published Antidumping and Countervailing Duty 
Proceedings: Documents Submission Procedures; APO Procedures, 73 FR 
3634 (January 22, 2008). Parties wishing to participate in these 
investigations should ensure that they meet the requirements of these 
procedures (e.g., filing of letters of appearance, in accordance with 
19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: October 16, 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--Scope of the Investigations

    The merchandise covered by these investigations is polyethylene 
terephthalate (PET) resin having an intrinsic viscosity of at least 
70, but not more than 88, milliliters per gram (0.70 to 0.88 
deciliters per gram). The scope includes blends of virgin PET resin 
and recycled PET resin containing 50 percent or more virgin PET 
resin content by weight, provided such blends meet the intrinsic 
viscosity requirements above. The scope includes all PET resin 
meeting the above specifications regardless of additives introduced 
in the manufacturing process.
    The merchandise subject to these investigations is properly 
classified under subheadings 3907.61.0000 and 3907.69.0000 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although 
the HTSUS

[[Page 48982]]

subheadings are provided for convenience and customs purposes, the 
written description of the merchandise covered by these 
investigations is dispositive.

[FR Doc. 2017-22931 Filed 10-20-17; 8:45 am]
 BILLING CODE 3510-DS-P