[Federal Register Volume 83, Number 185 (Monday, September 24, 2018)]
[Notices]
[Pages 48287-48289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20723]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-862]


Polyethylene Terephthalate Resin From Taiwan: 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 Taiwan are being, or are 
likely to be, 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: Jun Jack Zhao or Alexander Cipolla, 
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) 482-1396 
or (202) 482-4956, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On May 4, 2018, Commerce published in the Federal Register the 
preliminary affirmative determination of sales at LTFV in the 
antidumping duty (AD) investigation of PET resin from Taiwan.\1\ 
Commerce invited comments from interested parties on the Preliminary 
Determination.\2\ The petitioners,\3\ Far Eastern,\4\ and Shinkong 
Synthetic Fibers Corporation (Shinkong) filed case and rebuttal 
briefs.\5\ A summary of the events that occurred since Commerce 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by

[[Page 48288]]

interested parties for this final determination, may be found in the 
Issues and Decision Memorandum.\6\ 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 Taiwan: 
Preliminary Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 83 FR 19696 (May 4, 2018) (Preliminary Determination) and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ Id. at 19698; see also Memorandum, ``Antidumping Duty 
Investigation of Polyethylene Terephthalate (PET) Resin from Taiwan: 
Briefing Schedule for the Final Determination,'' dated August 1, 
2018.
    \3\ DAK Americas, LLC Indorama Ventures USA, Ind., M&G Polymers 
USA, LLC, and Nan Ya Plastics Corporation, America (collectively, 
the petitioners).
    \4\ Far Eastern New Century Corporation (FENC), Far Eastern 
Textile Ltd. (FETL), and Worldwide Polychem (HK), Ltd. (WWP) 
(collectively, Far Eastern).
    \5\ See the petitioners' Case Brief, ``Polyethylene 
Terephthalate Resin from Taiwan: Petitioners' Case Brief Concerning 
Far Eastern,'' dated August 9, 2018 (Petitioners' Case Brief re Far 
Eastern); see also the petitioners' Case Brief, ``Polyethylene 
Terephthalate Resin from Taiwan: Petitioners' Case Brief Concerning 
Shinkong Synthetic Fibers Corp.,'' dated August 9, 2018 
(Petitioners' Case Brief re Shinkong); see also Far Eastern's Case 
Brief, ``Investigation of Polyethylene Terephthalate Resin from 
Taiwan--Case Brief,'' dated August 8, 2018 (Far Eastern's Case 
Brief); see also Shinkong's Case Brief, ``Polyethylene Terephthalate 
(PET) Resin from Taiwan: Case Brief,'' dated August 8, 2018 
(Shinkong's Case Brief); see also the petitioners' Rebuttal Brief, 
``Polyethylene Terephthalate Resin from Taiwan: Petitioners' 
Rebuttal Brief Concerning Far Eastern,'' dated August 14, 2018 
(Petitioners' Rebuttal Brief re Far Eastern); see also the 
petitioners' Rebuttal Brief, ``Polyethylene Terephthalate Resin from 
Taiwan: Petitioners' Rebuttal Brief Concerning Shinkong,'' dated 
August 14, 2018 (Petitioners' Rebuttal Brief re Shinkong); see also 
Far Eastern's Rebuttal Brief, ``Investigation of Polyethylene 
Terephthalate Resin from Taiwan--Rebuttal Brief,'' dated August 14, 
2018 (Far Eastern's Rebuttal Brief); see also Shinkong's Rebuttal 
Brief, ``Polyethylene Terephthalate (PET) Resin from Taiwan: 
Rebuttal Brief,'' dated August 14, 2018 (Shinkong's Rebuttal Brief).
    \6\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Antidumping Duty 
Investigation of Polyethylene Terephthalate Resin from Taiwan,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum).
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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 (POI) is July 1, 2016, through June 30, 
2017.

Verification

    As provided in section 782(i) of the Act, we conducted the cost and 
sales verifications in Taipei, Taiwan, between May 7, 2018, and May 18, 
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 the Preliminary Determination, in accordance with section 
733(e)(1) of the Act and 19 CFR 351.206, Commerce found that critical 
circumstances exist for Far Eastern and ``all other'' producers or 
exporters not individually examined and found that critical 
circumstances did not exist for Shinkong.\7\ Commerce received comments 
from Far Eastern and the petitioners concerning the preliminary 
critical circumstances determination, which are discussed in the Issues 
and Decision Memorandum. 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 Far Eastern. 
Moreover, for this final determination, we determine that critical 
circumstances exist for Shinkong, but do not exist for ``all other'' 
producers or exporters not individually examined.
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    \7\ See also Preliminary Determination of Critical 
Circumstances, 83 FR 17791 (April 24, 2018).
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Analysis of Comments Received

    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 Shinkong, pursuant to sections 776(a)(2)(A)-(C) and 776(b) of the 
Act. For further information regarding the use of facts available and 
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 estimated weighted-
average dumping margin for Far Eastern and based Shinkong's rate 
entirely on facts otherwise available. Accordingly, the all-others' 
rate in this investigation is the weighted-average dumping margin 
calculated for Far Eastern.

Final Determination Margins

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                 margin
                                                               (percent)
------------------------------------------------------------------------
Far Eastern New Century Corporation, Far Eastern Textile            5.16
 Ltd., and Worldwide Polychem (HK), Ltd......................
Shinkong Synthetic Fibers Corporation........................      45.00
All-Others...................................................       5.16
------------------------------------------------------------------------

Disclosure

    We intend to 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 Far Eastern; and begin the suspension of 
liquidation of all entries of PET resin, produced or exported by 
Shinkong, 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 Far Eastern and Shinkong.
    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct CBP to continue to suspend liquidation of all appropriate 
entries of PET resin from Taiwan, 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;

[[Page 48289]]

(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 
Taiwan 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. 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 Rely on Total Adverse Facts 
Available for Shinkong
    Comment 2: Whether Shinkong Reported the Correct Date of Sale 
for Its Home Market Sales
    Comment 3: Whether Shinkong Reported the Correct Shipment Date 
for Its Home Market Sales
    Comment 4: Whether Far Eastern Underreported Its Production 
Quantities for Blended Products
    Comment 5: Whether Far Eastern Manipulated Its Sales Reporting 
Between Cost and Sales Verifications
    Comment 6: Whether to Incorporate Findings from Commerce's Cost 
Verification in the Final Determination for Far Eastern--Cost 
Adjustment Ratio
    Comment 7: Whether to Incorporate Findings from Commerce's Cost 
Verification in the Final Determination for Far Eastern--General and 
Administrative Expense Ratio
    Comment 8: Whether Commerce Should Apply Adverse Facts Available 
to Far Eastern's Report of Blended PET Resin
    Comment 9: Whether Far Eastern has Omitted Certain Subject 
Merchandise Sales from its U.S. Sales Database
    Comment 10: Whether one of Far Eastern's U.S. Sales should be 
Excluded from the Margin Calculation
    Comment 11: Far Eastern's U.S. Sales Channels
    Comment 12: Whether Far Eastern's Correction to Packing Expenses 
Submitted at Verification Should be Rejected
    Comment 13: Whether Commerce Should Make a Finding of Critical 
Circumstances with respect to Far Eastern in the Final Determination
VIII. Recommendation

[FR Doc. 2018-20723 Filed 9-21-18; 8:45 am]
 BILLING CODE 3510-DS-P