[Federal Register Volume 83, Number 23 (Friday, February 2, 2018)]
[Notices]
[Pages 4906-4908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02042]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-895]


Low Melt Polyester Staple Fiber From the Republic of Korea: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value, 
Preliminary 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 (Commerce) preliminarily determines 
that Low Melt Polyester Staple Fiber (low melt PSF) 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, 2016, through March 31, 2017.

DATES: Applicable February 2, 2018.

FOR FURTHER INFORMATION CONTACT: Alice Maldonado or Brittany Bauer, AD/
CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4682 or (202) 
482-3860, 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). Commerce 
published the notice of initiation of this investigation on July 24, 
2017.\1\ On November 20, 2017, Commerce postponed the preliminary 
determination of this investigation until January 23, 2018.\2\ Commerce 
has exercised its discretion to toll deadlines for the duration of the 
closure of the Federal Government from January 20 through 22, 2018. If 
the new deadline falls on a non-business day, in accordance with 
Commerce's practice, the deadline will become the next business day. 
The revised deadline for the preliminary determination of this 
investigation is now January 26, 2018.\3\ For a complete description of 
the events that followed the initiation of this investigation, see the 
Preliminary Decision Memorandum.\4\ 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 and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \1\ See Low Melt Polyester Staple Fiber from the Republic of 
Korea and Taiwan: Initiation of Less-Than-Fair-Value Investigations, 
82 FR 34277 (July 24, 2017) (Initiation Notice).
    \2\ See Low Melt Polyester Staple Fiber from the Republic of 
Korea and Taiwan: Postponement of Preliminary Determinations of 
Antidumping Duty Investigations, 82 FR 55091 (November 20, 2017).
    \3\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government,'' dated January 23, 2018. All deadlines in 
this segment of the proceeding have been extended by 3 days.
    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Low Melt 
Polyester Staple Fiber from the Republic of Korea (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 low melt PSF from 
Korea. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\6\ During this period, 
no interested party commented on the scope of this investigation; 
however, we received comments on the overlap between the scope of this 
investigation and other proceedings before Commerce.\7\
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \6\ See Initiation Notice.
    \7\ See the petitioner's Letter re: Low Melt Polyester Staple 
Fiber from the Republic of Korea and Taiwan--Petitioner's Comments 
on Potential Scope Overlap, dated October 5, 2017. The petitioner in 
this case is Nan Ya Plastics Corporation, America.
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    Nonetheless, Commerce is preliminarily modifying the scope language 
as it appeared in the Initiation Notice to eliminate the overlap in 
product coverage with the existing PSF Korea antidumping duty order.\8\ 
See the

[[Page 4907]]

revised scope in Appendix I to this notice. For further discussion, see 
the Preliminary Decision Memorandum.
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    \8\ See Notice of Amended Final Determination of Sales at Less 
Than Fair Value: Certain Polyester Staple Fiber from the Republic of 
Korea and Antidumping Duty Orders: Certain Polyester Staple Fiber 
from the Republic of Korea and Taiwan, 65 FR 33807 (May 25, 2000).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Normal value (NV) is 
calculated in accordance with section 773 of the Act. For a full 
description of the methodology underlying the preliminary 
determination, 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, 
Commerce preliminarily finds that critical circumstances do not exist 
for Huvis Corporation (Huvis), and do exist for Toray Chemical Korea 
Inc. (TCK) and all other producers/exporters. For a full description of 
the methodology and results of Commerce's critical circumstances 
analysis, see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce 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.
    In this investigation, Commerce preliminarily found a zero rate for 
Huvis. Therefore, the only rate that is not zero, de minimis or based 
entirely on facts otherwise available is the rate calculated for TCK. 
Consequently, the rate calculated for TCK is also assigned as the rate 
for all-other producers and exporters in this investigation.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Huvis Corporation...........................................        0.00
Toray Chemical Korea Inc....................................       16.48
All-Others..................................................       16.48
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce 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 company-specific estimated weighted-average dumping 
margins determined in this preliminary determination, except if that 
rate is zero or de minimis, no cash deposit will be required; (2) if 
the exporter is not a respondent identified above, but the producer is, 
then the cash deposit rate will be equal to the company-specific 
estimated weighted-average dumping margin established for that producer 
of the subject merchandise except as explained below; 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 the estimated weighted-average dumping margin for Huvis is 
zero, entries of shipments of subject merchandise produced and exported 
by this company will not be subject to suspension of liquidation or 
cash deposit requirements. In such situations, Commerce applies the 
exclusion to the provisional measures to the producer/exporter 
combination that was examined in the investigation. Accordingly, 
Commerce is directing CBP not to suspend liquidation of entries of 
subject merchandise produced and exported by Huvis. Entries of 
shipments of subject merchandise from this company in any other 
producer/exporter combination, or by third parties that sourced subject 
merchandise from the excluded producer/exporter combination, are 
subject to the provisional measures at the all others rate.
    Should the final estimated weighted-average dumping margin be zero 
or de minimis for Huvis, entries of shipments of subject merchandise 
produced and exported by Huvis will be excluded from the potential 
antidumping duty order. Such exclusion is not applicable to merchandise 
exported to the United States by this respondent in any other producer/
exporter combinations or by third parties that sourced subject 
merchandise from the excluded producer/exporter combination.
    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 subject 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. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise produced or exported by TCK and all producers/exporters of 
low melt PSF from Korea, except for Huvis. In accordance with section 
733(e)(2)(A) of the Act, the suspension of liquidation shall apply to 
unliquidated entries of shipments of subject merchandise from the 
producer(s) or exporter(s) 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.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary 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).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its 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 last verification report is issued in 
this investigation. Rebuttal briefs, limited to

[[Page 4908]]

issues raised in case briefs, may be submitted no later than five days 
after the deadline date for case briefs.\9\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal 
briefs in this investigation 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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    \9\ 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, 
Commerce 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 petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
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 December 1 and December 5, 2017, pursuant to 19 CFR 351.210(e), 
TCK and Huvis, respectively, requested that Commerce postpone the final 
determination and that provisional measures be extended to a period not 
to exceed six months.\10\ On January 8, 2018, the petitioner also 
requested that Commerce postpone the final determination.\11\ In 
accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because: (1) The preliminary determination is 
affirmative; (2) the requesting exporters account for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, Commerce is postponing the final 
determination and extending the provisional measures from a four-month 
period to a period not greater than six months. Accordingly, Commerce 
will make its final determination no later than 135 days after the date 
of publication of this preliminary determination.
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    \10\ See TCK's Letter re: Low Melt Polyester Staple Fiber from 
the Republic of Korea: Request to Postpone the Final Determination, 
dated December 1, 2017; and Huvis' Letter re: Low Melt Polyester 
Staple Fiber from the Republic of Korea: Request to Extend the 
Deadline for the Final Determination, dated December 5, 2017.
    \11\ See the petitioner's Letter re: Low Melt Polyester Staple 
Fiber from the Republic of Korea and Taiwan: Petitioner's Request 
Regarding Extension of the Final Determination Deadline, dated 
January 8, 2018.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the 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 the final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    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, 2018.
P. Lee Smith,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix I--Scope of the Investigation

    The merchandise subject to this investigation is synthetic 
staple fibers, not carded or combed, specifically bi-component 
polyester fibers having a polyester fiber component that melts at a 
lower temperature than the other polyester fiber component (low melt 
PSF). The scope includes bi-component polyester staple fibers of any 
denier or cut length. The subject merchandise may be coated, usually 
with a finish or dye, or not coated.
    Excluded from the scope of the investigation on low melt PSF 
from Korea are any products covered by the existing antidumping duty 
order on certain polyester staple fiber from Korea. See Notice of 
Amended Final Determination of Sales at Less Than Fair Value: 
Certain Polyester Staple Fiber from the Republic of Korea and 
Antidumping Duty Orders: Certain Polyester Staple Fiber from the 
Republic of Korea and Taiwan, 65 FR 33807 (May 25, 2000).
    Low melt PSF is classifiable under the Harmonized Tariff 
Schedule of the United States (HTSUS) subheading 5503.20.0015. 
Although the HTSUS subheading is provided for convenience and 
customs purposes, the written description of the scope of the 
merchandise under the 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
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. Critical Circumstances
XI. Currency Conversion
XII. Conclusion

[FR Doc. 2018-02042 Filed 2-1-18; 8:45 am]
 BILLING CODE 3510-DS-P