[Federal Register Volume 83, Number 185 (Monday, September 24, 2018)]
[Notices]
[Pages 48283-48285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20721]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-896]


Polyethylene Terephthalate Resin From the Republic of Korea: 
Affirmative Final Determination of Sales at Less Than Fair Value and 
Final Affirmative Determination of Critical Circumstances, in Part

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of polyethylene terephthalate (PET) resin from the Republic of Korea 
are being sold in the United States at less than fair value (LTFV), as 
provided in section 735 of the Tariff Act of 1930, as amended (the 
Act).

DATES: Applicable September 24, 2018.

FOR FURTHER INFORMATION CONTACT: Sean Carey or Mark Hoadley, 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) 482-3964 or (202) 482-3148, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 4, 2018, Commerce published in the Federal Register the 
preliminary determination of sales at LTFV in the antidumping duty (AD) 
investigation of PET resin from the Republic of Korea.\1\ Commerce 
invited comments from interested parties on the Preliminary 
Determination.\2\ The petitioners \3\ and SK Chemicals Co., Ltd. (SK 
Chemicals) filed case and rebuttal briefs.\4\ A

[[Page 48284]]

summary of the events that occurred since Commerce 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.\5\ 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 http://access.trade.gov, and it is available to all 
parties in the Central Records Unit, Room B8024 of the main Commerce 
building. In addition, a complete version of the Issues and Decision 
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the Issues and Decision 
Memorandum are identical in content.
---------------------------------------------------------------------------

    \1\ See Polyethylene Terephthalate Resin from the Republic of 
Korea: Preliminary Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 83 FR 19694 (May 4, 2018) (Preliminary Determination) and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ Id. at 19694; see also Memorandum, ``Briefing Schedule in 
the Antidumping Duty Investigation of Polyethylene Terephthalate 
Resin from the Republic of Korea,'' dated August 10, 2018.
    \3\ DAK Americas, LLC Indorama Ventures USA, Ind., M&G Polymers 
USA, LLC, and Nan Ya Plastics Corporation, America (collectively, 
the petitioners).
    \4\ See Petitioners' submission, ``Polyethylene Terephthalate 
Resin from South Korea; Petitioners' Case Brief'' dated August 17, 
2018 (Petitioners' Case Brief); also SK Chemicals' submission, 
``Polyethylene Terephthalate Resin from the Republic of Korea, Case 
Brief of SK Chemicals,'' dated August 17, 2018 (SK Chemicals' Case 
Brief); also Petitioners' submission, ``Polyethylene Terephthalate 
Resin from South Korea; Petitioners' Rebuttal Brief'' dated August 
22, 2018 (Petitioners' Rebuttal Brief); also SK Chemicals' 
submission, ``Polyethylene Terephthalate Resin from the Republic of 
Korea, Rebuttal Brief of SK Chemicals'' dated August 22, 2018 (SK 
Chemicals' Rebuttal Brief).
    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Affirmative Final Determination in the Less-Than-Fair-Value 
Investigation of Polyethylene Terephthalate Resin from the Republic 
of Korea; and, Final Determination of Critical Circumstances, in 
Part,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The product covered by this investigation is polyethylene 
terephthalate resin from Taiwan. Commerce did not receive any scope 
comments subsequent to the Preliminary Determination and, therefore, 
the scope has not been updated since the Preliminary Determination. For 
a complete description of the scope of this investigation, see Appendix 
I.

Period of Investigation

    The period of investigation is July 1, 2016, through June 30, 2017.

Verification

    As provided in section 782(i) of the Act, we conducted cost and 
sales verifications of mandatory respondent, SK Chemicals Co., Ltd. (SK 
Chemicals) and its wholly-owned U.S. affiliate SK Chemicals America, 
Inc. (SKCA), between May 16, 2018, and July 10, 2018. We used standard 
verification procedures, including an examination of relevant 
accounting and production records, and original source documents 
provided by the respondents.

Final Affirmative Determination of Critical Circumstances, in Part

    In the Preliminary Determination, in accordance with section 
733(e)(1) of the Act and 19 CFR 351.206, Commerce found that critical 
circumstances existed for Lotte Chemical Corp. (Lotte Chemical), TK 
Chemical Corp. (TK Chemical), and ``all other'' producers or exporters 
not individually examined and found that critical circumstances did not 
exist for SK Chemicals. Commerce received no comments concerning the 
preliminary critical circumstances determination. For this final 
determination, Commerce continues to find that, in accordance with 
section 735(a)(3) of the Act and 19 CFR 351.206, critical circumstances 
exist for Lotte Chemical and TK Chemical. Moreover, for this final 
determination, we determine that critical circumstances exist for SK 
Chemicals, but do not exist for ``all other'' producers or exporters 
not individually examined.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum, 
which is hereby adopted by this notice. A list of the issues raised is 
attached to this notice as Appendix II.

Use of Facts Otherwise Available and Adverse Inferences

    For purposes of this final determination, Commerce relied on facts 
otherwise available with adverse inferences when calculating the margin 
for Lotte Chemical and TK Chemical, pursuant to sections 776(a)(2)(A)-
(C) and 776(b) of the Act. For further information regarding the use of 
facts available with adverse inferences, see the Issues and Decision 
Memorandum.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations. For a 
discussion of these changes, see the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that 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 calculated an individual estimated 
weighted-average dumping margin for SK Chemicals, the only cooperative 
individually examined exporter/producer in this investigation with 
shipments of subject merchandise during the POI. 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 SK Chemicals is the margin 
assigned to all-other producers and exporters, pursuant to section 
735(c)(5)(A) of the Act.

Final Determination Margins

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

------------------------------------------------------------------------
                                                               Estimated
                                                                weighted-
                                                                 average
                      Exporter/producer                         dumping
                                                                 margin
                                                               (percent)
------------------------------------------------------------------------
SK Chemicals Co., Ltd........................................       8.23
Lotte Chemical Corp., Regd...................................     101.41
TK Chemical Corp.............................................     101.41
All-Others...................................................       8.23
------------------------------------------------------------------------

Disclosure

    We will disclose to interested parties the calculations performed 
in this final determination within five days of any public announcement 
of this notice in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 733(e)(2) of the Act, for this final 
determination, Commerce will instruct U.S. Customs and Border 
Protection (CBP) to continue the suspension of liquidation of all 
entries of PET resin, as described in the Appendix I to this notice, 
produced or exported by Lotte Chemical and TK Chemical; and to begin 
the suspension of liquidation of all entries of PET resin, produced or 
exported by SK Chemicals, which were entered, or withdrawn from 
warehouse, for consumption on or after February 3, 2018 (90 days prior 
to the date of publication of the Preliminary Determination), because 
we find that critical circumstances exist with regard to imports 
produced or exported by Lotte Chemical, TK Chemical, and SK Chemicals.
    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. CBP to continue to suspend liquidation of all appropriate

[[Page 48285]]

entries of PET resin from Korea, as described in Appendix I of this 
notice, which were entered, or withdrawn from warehouse, for 
consumption on or after May 4, 2018, the date of publication of the 
Preliminary Determination.
    Furthermore, pursuant to section 735(c)(1)(B)(ii) of the Act and 19 
CFR 351.210(d), Commerce will instruct CBP to require a cash deposit 
for such entries of merchandise equal to the estimated weighted-average 
dumping margin, 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.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2)(B) of 
the Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of PET resin from 
the Republic of Korea no later than 45 days after our final 
determination. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue an antidumping duty order 
directing CBP to assess, upon further instruction by Commerce, 
antidumping duties on all imports of the subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation, as discussed above in the 
``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice will serve as the only reminder to parties, subject to 
administrative protective order (APO), of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction or 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 sanctionable violation.

Notification to Interested Parties

    We are issuing and publishing this determination and notice in 
accordance with sections 735(d) and 777(i) of the Act, 19 CFR 
351.206(e) and 19 CFR 351.210(c).

    Dated: September 17, 2018.
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

    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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Final Affirmative Determination of Critical Circumstances, in 
Part
V. Changes Since the Preliminary Determination
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Discussion of the Issues
    Comment 1: Whether Commerce Should Make an Adjustment for 
Partial Refunds of U.S. Duties.
    Comment 2: Allocating Company-Wide Research and Development 
(R&D) Expenses to Separate Divisions
    Comment 3: Including Financial Income Gains on Derivatives and 
Long-Term Interest Income in Interest Expenses (INTEX)
    Comment 4: Reported Affiliated Input Prices
VIII. Recommendation

[FR Doc. 2018-20721 Filed 9-21-18; 8:45 am]
BILLING CODE 3510-DS-P