[Federal Register Volume 83, Number 185 (Monday, September 24, 2018)]
[Notices]
[Pages 48281-48283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20722]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-535-905]


Polyethylene Terephthalate Resin From Pakistan: Final 
Determination of Sales at Less Than Fair Value

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 Pakistan 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: Mark Hoadley or Lauren Caserta, 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) 482-3148 or (202) 482-4737, 
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 Pakistan.\1\ Commerce invited comments 
from interested parties on the Preliminary Determination.\2\ The 
petitioners \3\ and Novatex Limited (Novatex) filed case and rebuttal 
briefs.\4\ A summary of the

[[Page 48282]]

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.
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    \1\ See Polyethylene Terephthalate Resin from Pakistan: 
Preliminary Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 83 FR 19689 (May 4, 2018) (Preliminary Determination) and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Antidumping Duty Investigation of 
Polyethylene Terephthalate Resin from Pakistan: Schedule for 
Submission of Case and Rebuttal Briefs,'' dated June 14, 2018 (Case 
Brief Schedule); see also Memorandum, ``Antidumping Duty 
Investigation of Polyethylene Terephthalate Resin from Pakistan: 
Revised Schedule for Submission of Case and Rebuttal Briefs,'' dated 
June 19, 2018 (Revised Case Brief Schedule).
    \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' Case Brief, ``Polyethylene Terephthalate 
Resin from Pakistan: Petitioners' Case Brief for Novatex Limited,'' 
dated June 22, 2018 (Petitioners' Case Brief), and Novatex's Case 
Brief, ``Polyethylene Terephthalate Resin from Pakistan: Novatex's 
Case Brief,'' dated June 25, 2018 (Novatex's Case Brief); see also 
Petitioners' Rebuttal Brief, ``Polyethylene Terephthalate Resin from 
Pakistan: Petitioners' Rebuttal Brief for Novatex,'' dated July 6, 
2018 (Petitioners' Rebuttal Brief) and Novatex's Rebuttal Brief, 
``Polyethylene Terephthalate Resin from Pakistan: Novatex's Rebuttal 
Brief,'' dated July 6, 2018 (Novatex's Rebuttal Brief).
    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Antidumping Duty 
Investigation of Polyethylene Terephthalate Resin from Pakistan,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum (IDM)).
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Scope of the Investigation

    The product covered by this investigation is polyethylene 
terephthalate (PET) resin from Pakistan. Commerce did not receive any 
scope comments subsequent to the Preliminary Determination and, 
therefore, the scope has not been updated since the Preliminary 
Determination. See the scope in Appendix I to this notice.

Period of Investigation

    The POI is July 1, 2016, through June 30, 2017.

Verification

    As provided in section 782(i) of the Act, we conducted the sales 
verification in Washington, DC, between May 7, 2018, and May 11, 
2018.\6\ We used standard verification procedures, including an 
examination of relevant accounting and production records, and original 
source documents provided by the respondents. Commerce determined that 
the cost databases provided by Novatex were unusable and cancelled the 
cost verification associated with this investigation on June 13, 
2018.\7\
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    \6\ In accordance with the timely travel advisory issued by the 
U.S. Department of State discouraging travel within Pakistan, and 
following consultations with U.S. Embassy personnel in Islamabad, 
Commerce determined that Novatex's sales verification would be held 
at an alternate location in Washington, DC. This determination was 
made after receiving confirmation from the respondent that necessary 
company personnel would be in attendance, sufficient physical 
documentation would be shipped to the alternate site, and that 
Commerce would be provided with adequate remote access to Novatex's 
electronic systems.
    \7\ See Commerce's Letter, ``Cancellation of Cost Verification 
in the Antidumping Duty Investigation of Polyethylene Terephthalate 
(PET) Resin from Pakistan,'' dated June 13, 2018 (Cost Verification 
Cancellation Letter).
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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 Available and Adverse Facts Available

    For purposes of this final determination, Commerce relied on facts 
available with adverse inferences when calculating the margin for 
Novatex Limited pursuant to sections 776(a)(1), 776(a)(2)(B)-(C) and 
776(b) of the Act. For further information, 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

    Sections 735(c)(1)(B)(i)(II) and 735(c)(5)(A) of the Act provide 
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. 
However, when the estimated weighted-average dumping margins for all 
exporters and producers individually investigated are zero or de 
minimis, or determined entirely under section 776 of the Act, Commerce 
shall use any reasonable method to establish the all-others rate, 
including averaging the estimated weighted-average dumping margins for 
the exporters and producers individually investigated.
    In this investigation, Commerce based Novatex's rate entirely on 
facts otherwise available. Accordingly, we will use any reasonable 
method to establish the estimated all-others rate. Commerce's practice, 
in such situations, is to base the all-others rate on an average of the 
petition rates.\8\ We followed that practice here.
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    \8\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value: Sodium Nitrite from the Federal Republic of 
Germany, 73 FR 21909, 21912 (April 23, 2008), unchanged in Notice of 
Final Determination of Sales at Less Than Fair Value: Sodium Nitrite 
from the Federal Republic of Germany, 73 FR 38986, 38987 (July 8, 
2008), and accompanying Issues and Decision Memorandum at Comment 2; 
see also Notice of Final Determination of Sales at Less Than Fair 
Value: Raw Flexible Magnets from Taiwan, 73 FR 39673, 39674 (July 
10, 2008); Steel Threaded Rod from Thailand: Preliminary 
Determination of Sales at Less Than Fair Value and Affirmative 
Preliminary Determination of Critical Circumstances, 78 FR 79670, 
79671 (December 31, 2013), unchanged in Steel Threaded Rod from 
Thailand: Final Determination of Sales at Less Than Fair Value and 
Affirmative Final Determination of Critical Circumstances, 79 FR 
14476, 14477 (March 14, 2014), 82 FR 47697, 47698.
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Final Determination Margins

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Novatex Limited \9\.........................................       59.92
All-Others..................................................       43.81
------------------------------------------------------------------------

Disclosure

    We will disclose any calculations performed within five days of any 
public announcement of this notice in accordance with 19 CFR 
351.224(b).
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    \9\ Commerce has determined that Novatex Limited and Gatron 
Industries Limited are a single entity. See Issues and Decision 
Memorandum.
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Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of PET resin from 
Pakistan, 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 or the estimated all-others rate, as follows:

[[Page 48283]]

(1) The cash deposit rate for the respondent 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 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 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. Changes Since the Preliminary Determination
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Discussion of the Issues
    Comment 1: Whether Commerce Should Verify Novatex's Reported 
Costs
    Comment 2: Whether Commerce Should Apply Adverse Facts Available 
to Novatex
    Comment 3: Whether Commerce is Justified in Denying Novatex a 
Duty Drawback Adjustment in Its Final Determination
VII. Recommendation

[FR Doc. 2018-20722 Filed 9-21-18; 8:45 am]
 BILLING CODE 3510-DS-P