[Federal Register Volume 84, Number 52 (Monday, March 18, 2019)]
[Notices]
[Pages 9755-9761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05004]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-423-814, A-580-899, A-517-805, A-559-808, A-791-824, A-469-819]


Acetone From Belgium, the Republic of Korea, the Kingdom of Saudi 
Arabia, Singapore, the Republic of South Africa, and Spain: Initiation 
of Less-Than-Fair-Value Investigations

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

DATES: Applicable March 11, 2019.

FOR FURTHER INFORMATION CONTACT: Alex Cipolla at (202) 482-4956 
(Belgium); Sean Carey at (202) 482-3964 (the Republic of Korea 
(Korea)); Michael J. Heaney or Heather Lui at (202) 482-4475 or (202) 
482-0016, respectively (the Kingdom of Saudi Arabia (Saudi Arabia)); 
Moses Y. Song or Joshua A. DeMoss at (202) 482-7885 or (202) 482-3362, 
respectively (Singapore); Charlotte Baskin-Gerwitz at (202) 482-4880 
(the Republic of South Africa (South Africa)); and John C. McGowan or 
Preston N. Cox at (202) 482-3019 or (202) 482-5041, respectively 
(Spain); AD/CVD Operations, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petitions

    On February 19, 2019, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) Petitions concerning imports of acetone 
from Belgium, Korea, Saudi Arabia, Singapore, South Africa, and Spain, 
filed in proper form on behalf of the Coalition for Acetone Fair Trade 
(the petitioner).\1\ The petitioner is a coalition consisting of 
domestic producers of acetone.\2\
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    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping on Imports of Acetone from Belgium, Korea, Saudi Arabia, 
Singapore, South Africa and Spain,'' dated February 19, 2019 (the 
Petitions).
    \2\ The Coalition for Acetone Fair Trade includes AdvanSix Inc., 
Altivia Petrochemicals, LLC, and Olin Corporation. See Volume I of 
the Petitions, at 1-2.
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    Between February 22 and 28, 2019, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions.\3\ The 
petitioner filed responses to these requests on February 26, 2019 and 
March 4, 2019,

[[Page 9756]]

respectively.\4\ Also on March 4, 2019, the petitioner submitted 
certain revisions to the scope as requested by Commerce.\5\
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    \3\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping Duties on Imports of Acetone from Belgium, Korea, Saudi 
Arabia, Singapore, South Africa, and Spain: Supplemental Questions'' 
(General Issues Supplemental Questionnaire); ``Petition for the 
Imposition of Antidumping Duties on Imports of Acetone from Belgium: 
Supplemental Questions'' (Belgium Supplemental Questionnaire); 
``Petition for the Imposition of Antidumping Duties on Imports of 
Acetone from Korea: Supplemental Questions'' (Korea Supplemental 
Questionnaire); ``Petition for the Imposition of Antidumping Duties 
on Imports of Acetone from Saudi Arabia: Supplemental Questions'' 
(Saudi Arabia Supplemental Questionnaire); ``Petition for the 
Imposition of Antidumping Duties on Imports of Acetone from 
Singapore: Supplemental Questions'' (Singapore Supplemental 
Questionnaire); ``Petition for the Imposition of Antidumping Duties 
on Imports of Acetone from South Africa: Supplemental Questions'' 
(South Africa Supplemental Questionnaire); and ``Petition for the 
Imposition of Antidumping Duties on Imports of Acetone from Spain: 
Supplemental Questions'' (Spain Supplemental Questionnaire). All of 
these documents are dated February 22, 2019. See also Commerce's 
Letters, ``Petitions for the Imposition of Antidumping Duties on 
Acetone from Belgium, Korea, Saudi Arabia, Singapore, South Africa, 
and Spain: Phone Call with Counsel to the Petitioner Regarding 
Scope'' (Scope Supplemental Questionnaire); ``Petitions for the 
Imposition of Antidumping Duties Acetone from Singapore: Phone Call 
with Counsel to the Petitioner'' (Singapore Second Supplemental 
Questionnaire); ``Petitions for the Imposition of Antidumping Duties 
Acetone from South Africa: Phone Call with Counsel to the 
Petitioner'' (South Africa Second Supplemental Questionnaire); 
``Petitions for the Imposition of Antidumping Duties Acetone from 
Spain: Phone Call with Counsel to the Petitioner'' (Spain Second 
Supplemental Questionnaire); ``Petitions for the Imposition of 
Antidumping Duties Acetone from Saudi Arabia: Phone Call with 
Counsel to the Petitioner'' (Saudi Second Supplemental 
Questionnaire); and ``Petition for the Imposition of Antidumping 
Duties on Acetone from Belgium: Phone Call with Counsel to the 
Petitioner'' (Belgium Second Supplemental Questionnaire). All of 
these documents are dated February 28, 2019.
    \4\ See Petitioner's Letters, ``Acetone from Belgium, Korea, 
Saudi Arabia, Singapore, South Africa, and Spain/Petitioner's 
Responses to Supplemental Questions Regarding Volume I'' (General 
Issues Supplement); ``Acetone from Belgium/Petitioner's Responses to 
Supplemental Questions Regarding Volume II'' (Belgium Supplement); 
``Acetone from Korea/Petitioner's Responses to Supplemental 
Questions Regarding Volume III'' (Korea Supplement); ``Acetone from 
Saudi Arabia/Petitioner's Responses to Supplemental Questions 
Regarding Volume IV'' (Saudi Arabia Supplement); ``Acetone from 
Singapore/Petitioner's Responses to Supplemental Questions Regarding 
Volume V'' (Singapore Supplement); ``Acetone from South Africa/
Petitioner's Responses to Supplemental Questions Regarding Volume 
VI'' (South Africa Supplement); and ``Acetone from Spain: Response 
to Questionnaire on Antidumping Petition/Petitioner's Responses to 
Supplemental Questions Regarding Volume VII.'' (Spain Supplement). 
All of these documents are dated February 26, 2019. See also 
Petitioner's Letters, ``Acetone from Belgium/Petitioner's Responses 
to Second Supplemental Questions Regarding Volume II'' (Second 
Belgium Supplement); ``Acetone from Singapore/Petitioner's Responses 
to Second Supplemental Questions Regarding Volume II'' (Second 
Singapore Supplement); ``Acetone from South Africa/Petitioner's 
Responses to Second Supplemental Questions Regarding Volume VI'' 
(Second South Africa Supplement); Petitioner's Letter, ``Acetone 
from Spain: Second Supplemental Response to Antidumping Petition'' 
(Second Spain Supplement). All of these documents are dated March 4, 
2019.
    \5\ See Petitioner's Letter, ``Acetone from Belgium Korea, Saudi 
Arabia, Singapore, South Africa, and Spain/Petitioner's Responses to 
Supplemental Questions Regarding Scope'' (Scope Supplement), dated 
March 4, 2019.
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of acetone from 
Belgium, Korea, Saudi Arabia, Singapore, South Africa and Spain are 
being, or are likely to be, sold in the United States at less than fair 
value (LTFV) within the meaning of section 731 of the Act, and that 
such imports are materially injuring, or threatening material injury 
to, the domestic industry producing acetone in the United States. 
Consistent with section 732(b)(1) of the Act, the Petitions are 
accompanied by information reasonably available to the petitioner 
supporting its allegations.
    Commerce finds that the petitioner filed the Petitions on behalf of 
the domestic industry because the petitioner is a coalition of 
interested parties as defined in section 771(9)(C) and (F) of the Act. 
Commerce also finds that the petitioner demonstrated sufficient 
industry support with respect to the initiation of the requested AD 
investigations.\6\
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    \6\ See the ``Determination of Industry Support for the 
Petitions'' section, infra.
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Periods of Investigation

    Because the Petitions were filed on February 19, 2019, the period 
of investigation (POI) for each of the investigations is January 1, 
2018, through December 31, 2018.\7\
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    \7\ See 19 CFR 351.204(b)(1).
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Scope of the Investigations

    The product covered by these investigations is acetone from 
Belgium, Korea, Saudi Arabia, Singapore, South Africa and Spain. For a 
full description of the scope of these investigations, see the Appendix 
to this notice.

Comments on Scope of the Investigations

    During our review of the Petitions, Commerce issued questions to, 
and received responses from, the petitioner pertaining to the proposed 
scope to ensure that the scope language in the Petitions is an accurate 
reflection of the products for which the domestic industry is seeking 
relief.\8\ As a result of these exchanges, the scope of the Petitions 
was modified to clarify the description of merchandise covered by the 
Petitions. The description of the merchandise covered by these 
initiations, as described in the Appendix to this notice, reflects 
these clarifications.
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    \8\ See General Issues Supplemental Questionnaire, at 2-4 and 
Exhibit I-S1; see also Scope Supplemental Questionnaire, at 2 and 
Exhibit I-S4.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (scope).\9\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information,\10\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on April 1, 2019, which is the next business day after 20 calendar 
days from the signature date of this notice.\11\ Any rebuttal comments, 
which may include factual information, must be filed by 5:00 p.m. ET on 
April 11, 2019, which is 10 calendar days from the initial comments 
deadline.
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    \9\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \11\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigations be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigations may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must be filed 
on the records of each of the concurrent AD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\12\ An electronically 
filed document must be received successfully in its entirety by the 
time and date it is due. Documents exempted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230, and stamped with the date and time of receipt by the applicable 
deadlines.
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    \12\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of acetone to be reported 
in response to Commerce's AD questionnaires. This information will be 
used to identify the key physical characteristics of the merchandise 
under consideration in order to report the relevant costs of production 
accurately as well as to develop appropriate product-comparison 
criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics, and (2) product-comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful

[[Page 9757]]

commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe acetone, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, Commerce attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on April 1, 
2019, which is the next business day after 20 calendar days from the 
signature date of this notice.\13\ Any rebuttal comments must be filed 
by 5:00 p.m. ET on April 11, 2019. All comments and submissions to 
Commerce must be filed electronically using ACCESS, as explained above, 
on the records of the Belgium, Korea, Saudi Arabia, Singapore, South 
Africa and Spain LTFV investigations.
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    \13\ See 19 CFR 351.303(b).
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Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers, as a whole, of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\14\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\15\
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    \14\ See section 771(10) of the Act.
    \15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the Petitions.\16\ Based on our analysis of the information 
submitted on the record, we have determined that acetone, as defined in 
the scope, constitutes a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\17\
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    \16\ See Volume I of the Petitions, at 12-15 and Exhibits I-2 
and I-6.
    \17\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Antidumping Duty Investigation Initiation Checklist: Acetone 
from Belgium (Belgium AD Initiation Checklist), at Attachment II, 
Analysis of Industry Support for the Antidumping Duty Petitions 
Covering Acetone from Belgium, Korea, Saudi Arabia, Singapore, South 
Africa, and Spain (Attachment II); Antidumping Duty Investigation 
Initiation Checklist: Acetone from Korea (Korea AD Initiation 
Checklist), at Attachment II; Antidumping Duty Investigation 
Initiation Checklist: Acetone from Saudi Arabia (Saudi Arabia AD 
Initiation Checklist), at Attachment II; Antidumping Duty 
Investigation Initiation Checklist: Acetone from Singapore 
(Singapore AD Initiation Checklist), at Attachment II; Antidumping 
Duty Investigation Initiation Checklist: Acetone from South Africa 
(South Africa AD Initiation Checklist), at Attachment II; and 
Antidumping Duty Investigation Initiation Checklist: Acetone from 
Spain (Spain AD Initiation Checklist), at Attachment II. These 
checklists are dated concurrently with this notice and on file 
electronically via ACCESS. Access to documents filed via ACCESS is 
also available in the Central Records Unit, Room B8024 of the main 
Department of Commerce building.
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    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the Appendix to 
this notice. To establish industry support, the petitioner provided its 
own production of the domestic like product in 2018. In addition, the 
petitioner provided a letter of support from the United Steel, Paper & 
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service 
Workers International Union (USW), which represents workers at three 
U.S. production facilities (AdvanSix, LyondellBasell, and Shell 
Chemical). The petitioner added the production of the two producers not 
in the petitioning coalition (LyondellBassell and Shell Chemical) to 
the petitioner's own production data to calculate total support for the 
Petitions. The petitioner compared its own production plus the 
production of the two additional producers represented by the USW to 
the estimated total production of the domestic like product for the 
entire domestic industry.\18\ We relied on data the petitioner provided 
for purposes of measuring industry support.\19\
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    \18\ See Volume I of the Petitions, at 2-4 and Exhibits I-1 
through I-5 and Exhibit I-29; see also General Issues Supplement, at 
5.
    \19\ Id., at 2-4 and Exhibits I-1 through I-5 and Exhibit I-29; 
see also General Issues Supplement, at 5. For further discussion, 
see Attachment II of the Belgium AD Initiation Checklist, Korea AD 
Initiation Checklist, Saudi Arabia AD Initiation Checklist, 
Singapore AD Initiation Checklist, South Africa AD Initiation 
Checklist, and Spain AD Initiation Checklist.
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    Our review of the data provided in the Petitions, the General 
Issues Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petitions.\20\ First, the Petitions established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\21\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
732(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petitions account for at least 25 percent of the total 
production of the domestic like

[[Page 9758]]

product.\22\ Finally, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 732(c)(4)(A)(ii) 
of the Act because the domestic producers (or workers) who support the 
Petitions account for more than 50 percent of the production of the 
domestic like product produced by that portion of the industry 
expressing support for, or opposition to, the Petitions.\23\ 
Accordingly, Commerce determines that the Petitions were filed on 
behalf of the domestic industry within the meaning of section 732(b)(1) 
of the Act.
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    \20\ Id.
    \21\ Id.; see also section 732(c)(4)(D) of the Act.
    \22\ See Attachment II of the Belgium AD Initiation Checklist, 
Korea AD Initiation Checklist, Saudi Arabia AD Initiation Checklist, 
Singapore AD Initiation Checklist, South Africa AD Initiation 
Checklist, and Spain AD Initiation Checklist.
    \23\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner alleges that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\24\
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    \24\ See Volume I of the Petitions, at 19-20 and Exhibit I-16.
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    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
a decline in the domestic industry's financial performance; and lost 
sales and revenues.\25\ We have assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, 
causation, negligibility, as well as cumulation, and we have determined 
that these allegations are properly supported by adequate evidence, and 
meet the statutory requirements for initiation.\26\
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    \25\ Id., at 19-25 and Exhibits I-12 through I-13, and I-16 
through I-20.
    \26\ See Belgium AD Initiation Checklist, at Attachment III; 
Korea AD Initiation Checklist, at Attachment III; Saudi Arabia AD 
Initiation Checklist, at Attachment III; Singapore AD Initiation 
Checklist, at Attachment III; South Africa AD Initiation Checklist, 
at Attachment III; and Spain AD Initiation Checklist, at Attachment 
III.
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Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate AD investigations of 
imports of acetone from Belgium, Korea, Saudi Arabia, Singapore, South 
Africa and Spain. The sources of data for the deductions and 
adjustments relating to U.S. price and normal value (NV) are discussed 
in greater detail in the country-specific initiation checklists.

Export Price

    For Belgium, the petitioner based export price (EP) on two 
methods.\27\ First, the petitioner used import data to determine 
average unit values (AUVs) of imports of acetone from Belgium.\28\ 
Second, the petitioner was able to match individual shipments of 
acetone identified in the publicly available shipment data to 
individual entries of acetone in publicly available import data to 
determine the shipper, consignee, and AUV of specific shipments.\29\
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    \27\ See Belgium Initiation Checklist.
    \28\ Id.
    \29\ Id.
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    For Korea and Singapore, the petitioner based EP on three 
methods.\30\ First, the petitioner used publicly available customs data 
to determine AUV of imports of acetone from Korea and Singapore.\31\ 
Second, the petitioner matched individual shipments of goods identified 
in publicly available import data from Korea and Singapore into the 
United States with individual entries of acetone in publicly available 
customs data, to determine transaction-specific AUVs.\32\ Lastly, the 
petitioner used offers from a Korean and Singaporean producer to a U.S. 
customer to establish EP.\33\
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    \30\ See Korea and Singapore Initiation Checklists.
    \31\ Id.
    \32\ Id.
    \33\ Id.
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    For Saudi Arabia, the petitioner based EP on AUVs which were based 
on publicly available import data.\34\
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    \34\ See Saudi Arabia Initiation Checklist.
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    For South Africa, the petitioner based EP on two methodologies--the 
first method relied on official U.S. Customs statistics to determine 
the AUV of imports of acetone from South Africa; the second method 
involved matching individual shipments of goods identified in Custom 
and Border Protection's Automated Manifest System (AMS) to individual 
entries of acetone in the official U.S. Customs statistics to determine 
the AUV of specific shipments.\35\
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    \35\ See South Africa AD Initiation Checklist.
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    For Spain, the petitioner based EP on two methodologies.\36\ First, 
the petitioner based EP on pricing information for acetone produced in, 
and exported from, Spain and sold or offered for sale in the United 
States.\37\ Second, the petitioner relied on AUVs of publicly available 
U.S. import data from Spain to establish EP.\38\
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    \36\ See Spain Initiation Checklist.
    \37\ Id.
    \38\ Id.
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Normal Value

    The petitioner obtained home market prices for Korea, Singapore, 
and South Africa and third country prices for Belgium, but these prices 
were below cost of production. Consequently, the petitioner, relied on 
CV as the basis for NV. For further discussion of CV, see the section 
``Normal Value Based on Constructed Value'' below.
    For Saudi Arabia and Spain, the petitioner was unable to obtain 
reliable information relating to the prices charged for acetone 
produced and sold in Saudi Arabia and Spain or third country sales 
prices for acetone produced in these countries.\39\ Because home market 
prices and third country prices were not reasonably available, the 
petitioner calculated NV based on constructed value (CV). For further 
discussion of CV, see the section ``Normal Value Based on Constructed 
Value'' below.\40\
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    \39\ See Saudi Arabia and Spain AD Initiation Checklists.
    \40\ In accordance with section 505(a) of the Trade Preferences 
Extension Act of 2015, amending section 773(b)(2) of the Act, for 
this investigation, Commerce will request information necessary to 
calculate the CV and cost of production (COP) to determine whether 
there are reasonable grounds to believe or suspect that sales of the 
foreign like product have been made at prices that represent less 
than the COP of the product. Commerce no longer requires a COP 
allegation to conduct this analysis.
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Normal Value Based on Constructed Value

    As noted above, the petitioner obtained home market prices for 
Korea, Singapore, and South Africa and third country prices for 
Belgium, but demonstrated that these prices were below the COP; 
therefore, the petitioner based NV on CV pursuant to section 773(a)(4) 
of the Act.\41\ The petitioner was unable to obtain information 
relating to the prices charged for acetone in Saudi Arabia and Spain, 
or any third country market; accordingly, the petitioner also based NV 
on CV.\42\ Pursuant to section 773(e) of the Act, CV consists of the 
cost of manufacturing (COM), SG&A expenses, financial expenses, profit, 
and packing expenses.
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    \41\ See Belgium AD Initiation Checklist; Singapore AD 
Initiation Checklist; South Africa AD Initiation Checklist; and 
South Korea AD Initiation Checklist.
    \42\ See Saudi Arabia AD Initiation Checklist and Spain AD 
Initiation Checklist.
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    The petitioner calculated the COM based on domestic producers' 
input FOPs and usage rates for raw materials,

[[Page 9759]]

labor, and energy.\43\ The petitioner valued the input FOPs using 
publicly available data on costs specific to Belgium, Singapore, South 
Africa, Korea, Saudi Arabia, and Spain during the proposed POI. 
Specifically, the petitioner based the prices for raw material inputs 
on publicly available import data for Belgium, Singapore, South Africa, 
Korea, Saudi Arabia, and Spain.\44\ The prices for benzene and 
propylene for South Africa were based on the cost information from 
another acetone producer. The petitioner valued labor and energy costs 
using publicly available sources for Belgium, Singapore, South Africa, 
Korea, Saudi Arabia, and Spain.\45\ The petitioner calculated factory 
overhead, SG&A, financial expenses, and profit for Belgium, Singapore, 
South Africa, Korea, Saudi Arabia, and Spain based on the experience of 
a producer of acetone from each of these countries.\46\
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    \43\ See Belgium AD Initiation Checklist; Singapore AD 
Initiation Checklist; South Africa AD Initiation Checklist; South 
Korea AD Initiation Checklist; Saudi Arabia AD Initiation Checklist; 
and, Spain AD Initiation Checklist. Because the petitioner's member 
producers in the United States purchase cumene, whereas the Korean 
producers of acetone produce their own cumene, the petitioner based 
the input factors of production for cumene on a cumene production 
facility located in a third country. See Volume III of the 
Petitions, at Korea Exhibit III-3.
    \44\ Id.
    \45\ Id.
    \46\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of acetone from Belgium, Korea, Saudi Arabia, 
Singapore, South Africa and Spain are being, or are likely to be, sold 
in the United States at LTFV. Based on comparisons of EP to NV in 
accordance with sections 772 and 773 of the Act, the estimated dumping 
margins for acetone for each of the countries covered by this 
initiation are as follows: (1) Belgium--43.14 to 73.69 percent; \47\ 
(2) Korea--112.72 to 174.66 percent; \48\ (3) Saudi Arabia--36.88 
percent; \49\ (4) Singapore--14.52 to 131.75 percent; \50\ (5) South 
Africa--214.09 to 414.92 percent; \51\ and (6) Spain--102.97 and 171.81 
percent.\52\
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    \47\ See Belgium AD Initiation Checklist.
    \48\ See Korea AD Initiation Checklist.
    \49\ See Saudi Arabia AD Initiation Checklist.
    \50\ See Singapore AD Initiation Checklist.
    \51\ See South Africa AD Initiation Checklist.
    \52\ See Spain AD Initiation Checklist.
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Initiation of LTFV Investigations

    Based upon the examination of the AD Petitions and supplemental 
responses, we find that the Petitions meet the requirements of section 
732 of the Act. Therefore, we are initiating AD investigations to 
determine whether imports of acetone from Belgium, Korea, Saudi Arabia, 
Singapore, South Africa and Spain are being, or are likely to be, sold 
in the United States at LTFV. In accordance with section 733(b)(1)(A) 
of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our 
preliminary determinations no later than 140 days after the date of 
this initiation.

Identification of Respondents

    The petitioner named one producer in Belgium (INEOS Phenol Belgium 
NV (INEOS Phenol)),\53\ two producers in Korea (Kumho P & B Chemicals, 
Inc. (Kumho) and LG Chem, Ltd. (LG Chem)),\54\ two producers in Saudi 
Arabia (Rabigh Refining & Petrochemical Company (Petro Rabigh) and 
Saudi Kayan Petrochemical Company (Saudi Kayan)),\55\ one producer in 
Singapore (Mitsui Phenols Singapore Pte Ltd (Mitsui)),\56\ one producer 
in South Africa (Sasol Limited (Sasol)),\57\ and two producers in Spain 
(CEPSA Quimica, S.A. and IQOXE).\58\ Moreover, the petitioner provided 
evidence in each of the Petitions indicating that the named producers 
were the only producers of acetone in the subject countries.\59\
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    \53\ See Volume I of the Petitions at Exhibit I-10.
    \54\ Id.
    \55\ Id.
    \56\ Id.
    \57\ Id. Sasol is identified in the petition by various names 
including: Sasol Limited Company (Exhibit VI-3), Sasol Limited Group 
(Exhibit VI-3), Sasol Limited (Exhibit VI-3), and as Sasol Solvents 
Sasol Limited (Exhibit I-10). Commerce intends to issue one 
questionnaire addressed to all variations of the company name under 
one cover letter.
    \58\ Id.
    \59\ See, e.g., Volume II of the Petitions at Exhibit II-6; 
Volume VI of the Petitions at Exhibit VI-7. See also Volume I of the 
Petitions at Exhibit I-2.
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    Although Commerce normally relies on import data using United 
States Customs and Border Protection (CBP) import statistics to 
determine whether to select a limited number of producers/exporters for 
individual examination in AD investigations, the petitioner has 
identified only one or two producers in each subject country and has 
demonstrated that these are the sole producers. We currently know of no 
additional producers/exporters of acetone from Belgium, Korea, Saudi 
Arabia, Singapore, South Africa, or Spain. Accordingly, Commerce 
intends to examine all known producers in each of the six 
investigations, as indicated by the supporting information included in 
the Petitions (described above).\60\ We invite interested parties to 
comment on this issue. Such comments may include factual information 
within the meaning of 19 CFR 351.102(b)(21). Parties wishing to comment 
must do so within three business days of the publication of this notice 
in the Federal Register. Comments must be filed electronically using 
ACCESS. An electronically filed document must be received successfully 
in its entirety by Commerce's electronic records system, ACCESS, by 5 
p.m. ET by the specified deadline.
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    \60\ The Petitions also identify four possible trading 
companies, with no indication of which countries' acetone those 
companies might be trading/exporting to the United States. However, 
because the Petitions have identified the complete set of producers 
in each country, there currently is no need to issue questionnaires 
to the trading companies/exporters as well.
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Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the governments of Belgium, Korea, Saudi Arabia, Singapore, 
South Africa, and Spain via ACCESS. To the extent practicable, we will 
attempt to provide a copy of the public version of the Petitions to 
each exporter named in the Petitions, as provided under 19 CFR 
351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of acetone from Belgium, Korea, Saudi Arabia, 
Singapore, South Africa and Spain are materially injuring or 
threatening material injury to a U.S. industry.\61\ A negative ITC 
determination for any country will result in the investigation being 
terminated with respect to that country.\62\ Otherwise, the 
investigations will proceed according to statutory and regulatory time 
limits.
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    \61\ See section 733(a) of the Act.
    \62\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). 19 CFR 351.301(b)

[[Page 9760]]

requires any party, when submitting factual information, to specify 
under which subsection of 19 CFR 351.102(b)(21) the information is 
being submitted \63\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\64\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in these investigations.
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    \63\ See 19 CFR 351.301(b).
    \64\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 504 of the Trade Preferences Extension Act of 2015 amended 
the Act by adding the concept of particular market situation (PMS) for 
purposes of CV under section 773(e) of the Act.\65\ Section 773(e) of 
the Act states that ``if a particular market situation exists such that 
the cost of materials and fabrication or other processing of any kind 
does not accurately reflect the cost of production in the ordinary 
course of trade, the administering authority may use another 
calculation methodology under this subtitle or any other calculation 
methodology.'' When an interested party submits a PMS allegation 
pursuant to section 773(e) of the Act, Commerce will respond to such a 
submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds 
that a PMS exists under section 773(e) of the Act, then it will modify 
its dumping calculations appropriately.
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    \65\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
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    Neither section 773(e) of the Act nor 19 CFR 351.301(c)(2)(v) set a 
deadline for the submission of PMS allegations and supporting factual 
information. However, in order to administer section 773(e) of the Act, 
Commerce must receive PMS allegations and supporting factual 
information with enough time to consider the submission. Thus, should 
an interested party wish to submit a PMS allegation and supporting new 
factual information pursuant to section 773(e) of the Act, it must do 
so no later than 20 days after submission of a respondent's initial 
section D questionnaire response.

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in a letter or memorandum setting forth 
the deadline (including a specified time) by which extension requests 
must be filed to be considered timely. An extension request must be 
made in a separate, stand-alone submission; under limited circumstances 
we will grant untimely-filed requests for the extension of time limits. 
Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\66\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\67\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable revised 
certification requirements.
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    \66\ See section 782(b) of the Act.
    \67\ See also Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce 
published Antidumping and Countervailing Duty Proceedings: Documents 
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). 
Parties wishing to participate in these investigations should ensure 
that they meet the requirements of these procedures (e.g., the filing 
of letters of appearance as discussed at 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: March 11, 2019.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigations

    The merchandise covered by these investigations is all grades of 
liquid or aqueous acetone. Acetone is also known under the 
International Union of Pure and Applied Chemistry (IUPAC) name 
propan-2-one. In addition to the IUPAC name, acetone is also 
referred to as [szlig]-ketopropane (or beta-ketopropane), ketone 
propane, methyl ketone, dimethyl ketone, DMK, dimethyl carbonyl, 
propanone, 2-propanone, dimethyl formaldehyde, pyroacetic acid, 
pyroacetic ether, and pyroacetic spirit. Acetone is an isomer of the 
chemical formula C3H6O, with a specific 
molecular formula of CH3COCH3 or 
(CH3)2CO.
    The scope includes acetone that is combined or mixed with other 
products, including, but not limited to, isopropyl alcohol, benzene, 
diethyl ether, methanol, chloroform, and ethanol, regardless of the 
quantity or value of the acetone component. For such combined 
products, only the acetone component is covered by the scope of 
these investigations. Acetone that has been combined with other 
products is included within the scope, regardless of whether the 
combining occurs in third countries. Notwithstanding the foregoing 
language, an acetone combination or mixture that is transformed 
through a chemical reaction into another product, such that, for 
example, the acetone can no longer be separated from the other 
products through a distillation process (e.g., methyl methacrylate 
(MMA) or Bisphenol A (BPA)) is excluded from these investigations.
    The scope also includes acetone that is commingled with acetone 
from sources not subject to these investigations, regardless of the 
quantity or value of the subject acetone component. Only the subject 
merchandise component of such commingled products is covered by the 
scope of these investigations. Acetone that has been commingled with 
acetone from sources not subject to these investigations is included 
within the scope, regardless of whether the combining occurs in 
third countries. The acetone component from sources not subject to 
these investigations may still be subject to other acetone 
investigations.
    The Chemical Abstracts Service (CAS) registry number for acetone 
is 67-64-1.
    The merchandise covered by these investigations is currently 
classifiable under Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings 2914.11.1000 and 2914.11.5000. Acetone and 
acetone combinations and mixtures covered by these investigations 
may also enter under different HTSUS subheadings, such as 
2902.20.0000, 2902.70.0000, 2905.12.0050, or 2914.12.0000, however, 
this list of HTSUS subheadings is non-exhaustive. Although these 
HTSUS

[[Page 9761]]

subheadings and CAS registry number are provided for convenience and 
customs purposes, the written description of the scope of these 
investigations is dispositive.

[FR Doc. 2019-05004 Filed 3-15-19; 8:45 am]
 BILLING CODE 3510-DS-P