[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