[Federal Register Volume 83, Number 87 (Friday, May 4, 2018)]
[Notices]
[Pages 19691-19693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09510]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-832]


Polyethylene Terephthalate Resin From Indonesia: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
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 polyethylene terephthalate resin (PET resin) from Indonesia is 
being, or is likely to be, sold in the United States at less than fair 
value. The period of investigation is July 1, 2016, through June 30, 
2017.

DATES: Applicable May 4, 2018.

FOR FURTHER INFORMATION CONTACT: Caitlin Monks, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2670.

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 October 23, 
2017.\1\ On January 23, 2018, Commerce exercised its discretion to toll 
all deadlines affected by the closure of the Federal Government from 
January 20, 2018, through January 22, 2018.\2\ On February 22, 2018, 
Commerce postponed the preliminary determination of this 
investigation.\3\ As a result, the revised deadline for the preliminary 
determination of this investigation is now April 27, 2018.
---------------------------------------------------------------------------

    \1\ See Polyethylene Terephthalate Resin from Brazil, Indonesia, 
the Republic of Korea, Pakistan, and Taiwan: Initiation of Less-
Than-Fair-Value Investigations, 82 FR 48977 (October 23, 2017) 
(Initiation Notice).
    \2\ See Memorandum, ``Deadlines Affected by the Shutdown of the 
Federal Government,'' dated January 23, 2018.
    \3\ See Polyethylene Terephthalate from Brazil, Indonesia, the 
Republic of Korea, Pakistan, and Taiwan: Postponement of Preliminary 
Determinations of Antidumping Duty Investigations, 83 FR 7655 
(February 22, 2018).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of 
Polyethylene Terephthalate Resin from Indonesia'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The merchandise covered by this investigation is PET resin from 
Indonesia. 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

[[Page 19692]]

coverage (i.e., scope).\6\ For a summary of the product coverage 
comments and rebuttal responses submitted to the record for this 
preliminary determination, and accompanying discussion and analysis of 
all comments timely received, see the Preliminary Decision Memorandum. 
After evaluating the comments, Commerce is preliminarily modifying the 
scope language as it appeared in the Initiation Notice to exclude PET-
glycol resin. See the revised scope in Appendix I to this notice.
---------------------------------------------------------------------------

    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \6\ See Initiation Notice.
---------------------------------------------------------------------------

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. Constructed export prices 
have been calculated in accordance with section 772(b) of the Act. 
Normal value (NV) is calculated in accordance with section 773 of the 
Act. In addition, Commerce has preliminarily relied upon partial 
adverse facts available, in accordance with sections 776(a)(1) and 
776(b) of the Act, for the Indorama Producers.\7\ For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \7\ Commerce preliminarily determines, pursuant to section 
771(33)(A) and 771(33)(F) of the Act, that mandatory respondent PT. 
Indo-Rama Synthetics Tbk. (Indorama Synthetics) is affiliated with 
mandatory respondent Indorama Polymers Public Co., Ltd. (Indorama 
Polymers), PT. Indorama Polypet Indonesia (Polypet), and Indorama 
Ventures Indonesia (Ventures Indonesia). Additionally, Commerce 
determined that Indorama Synthetics, Polypet, and Ventures Indonesia 
should be treated as a single entity (the Indorama Producers) 
pursuant to 19 CFR 351.401(f). See Preliminary Decision Memorandum 
at ``Affiliation and Collapsing.''
---------------------------------------------------------------------------

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. Commerce calculated an individual estimated 
weighted-average dumping margin for the Indorama Producers, 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 the Indorama Producers 
is the margin assigned to all-other producers and exporters, pursuant 
to section 735(c)(5)(A) of the Act.

Preliminary Determination

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
PT. Indo-Rama Synthetics Tbk./PT. Indorama Polypet Indonesia/      13.16
 Indorama Ventures Indonesia................................
All-Others..................................................       13.16
------------------------------------------------------------------------

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.
    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. On April 20, 2018, 
Commerce preliminarily determined that critical circumstances exist for 
imports of PET resin from Indonesia produced or exported by Indorama 
Polymers and all other producers/exporters.\8\ Accordingly, for 
Indorama Polymers and all other producers/exporters, in accordance with 
section 733(e)(2)(A) of the Act, the suspension of liquidation shall 
apply 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 this notice.
---------------------------------------------------------------------------

    \8\ See Antidumping Duty Investigations on Polyethylene 
Terephthalate Resin from Indonesia, the Republic of Korea, and 
Taiwan; Preliminary Determinations of Critical Circumstances, 83 FR 
17791 (April 24, 2018).
---------------------------------------------------------------------------

    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 respondent 
listed above will be equal to the company-specific estimated weighted-
average dumping margins determined in this preliminary 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 company-
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

    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 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.
---------------------------------------------------------------------------

    \9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    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

[[Page 19693]]

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 April 6, 2018, pursuant to 19 CFR 351.210(e), the Indorama 
Producers requested that Commerce postpone the final determination and 
that provisional measures be extended to a period not to exceed six 
months.\10\ 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 exporter accounts 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.
---------------------------------------------------------------------------

    \10\ See Letter from Indorama, ``Polyethylene Terephthalate 
Resin from Indonesia: Request for Postponement of Final 
Determination,'' dated April 6, 2018.
---------------------------------------------------------------------------

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: April 27, 2018.
James Maeder,
Associate Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations performing the duties of Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation 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 scope excludes PET-glycol resin, also referred to as PETG. 
PET-glycol resins are manufactured by replacing a portion of the raw 
material input monoethylene glycol (MEG) with one of five glycol 
modifiers: Cyclohexanedimethanol (CHDM), diethylene glycol (DEG), 
neopentyl glycol (NPG), isosorbide, or spiro glycol. Specifically, 
excluded PET-glycol resins must contain a minimum of 10 percent, by 
weight, of CHDM, DEG, NPG, isosorbide or spiro glycol, or some 
combination of these glycol modifiers. Unlike subject PET resin, 
PET-glycol resins are amorphous resins that are not solid-stated and 
cannot be crystallized or recycled.
    The merchandise subject to this investigation 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 subheadings are provided for convenience and customs 
purposes, the written description of the merchandise covered by this 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional 
Measures
V. Scope Comments
VI. Affiliation and Collapsing
VII. Application of Facts Available and Use of Adverse Inferences
VIII. Discussion of the Methodology
    A. Comparisons to Fair Value
    1. Determination of Comparison Method
    2. Results of the Differential Pricing Analysis
IX. Date of Sale
X. Product Comparisons
XI. Export Price and Constructed Export Price
XII. Normal Value
    A. Home Market Viability
    B. Affiliated-Party Transactions and Arm's-Length Test
    C. Level of Trade
    D. Calculation of NV Based on Comparison Market Prices
    E. Calculation of NV Based on Constructed Value (CV)
    F. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
XIII. Currency Conversion
XIV. Verification
XV. Conclusion

[FR Doc. 2018-09510 Filed 5-3-18; 8:45 am]
BILLING CODE 3510-DS-P