[Federal Register Volume 84, Number 134 (Friday, July 12, 2019)]
[Notices]
[Pages 33235-33236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14864]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-895]


Notice of Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review: Low Melt Polyester Staple Fiber From the 
Republic of Korea

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) is initiating a changed 
circumstances review (CCR) and preliminarily determining that Toray 
Advanced Materials Korea, Inc. (TAK) is the successor-in-interest to 
Toray Chemical Korea, Inc. (TCK) for purposes of the antidumping duty 
(AD) order on low melt polyester staple fiber (low melt PSF) from the 
Republic of Korea (Korea).

DATES: Applicable July 12, 2019.

FOR FURTHER INFORMATION CONTACT: Alice Maldonado, AD/CVD Operations, 
Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4682.

SUPPLEMENTARY INFORMATION:

Background

    On August 16, 2018, Commerce published in the Federal Register the 
AD Order on low melt PSF from Korea.\1\ TCK, a foreign producer and 
exporter of low melt PSF from Korea was assigned a cash deposit rate of 
16.27 percent.\2\ On May 23, 2019, TAK requested that, pursuant to 
section 751(b) of the Tariff Act of 1930, as amended (the Act), and 19 
CFR 351.216(b), Commerce conduct a CCR of the AD Order to determine 
that TAK is the successor-in-interest to TCK and, accordingly, to 
assign it the cash deposit rate established for TCK.\3\ In its 
submission, TAK explained that TCK, a wholly-owned subsidiary of TAK, 
merged with TAK in April 2019, and, as a result of the merger, TAK 
assumed all of TCK's assets, rights, and liabilities.\4\ TAK provided 
source documentation to demonstrate that the management responsible for 
low melt PSF production remains largely in place after the merger, and 
TCK's production facilities, suppliers, and customers for low melt PSF 
are unchanged.\5\ TAK further requested that Commerce combine the 
notice of initiation and preliminary results pursuant to 19 CFR 
351.221(c)(3)(ii).\6\ We did not receive comments from other interested 
parties concerning this request.
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    \1\ See Low Melt Polyester Staple Fiber from the Republic of 
Korea and Taiwan: Antidumping Duty Orders, 83 FR 40752 (August 16, 
2018) (AD Order).
    \2\ Id., 83 FR at 40753.
    \3\ See TAK's Letter, ``Low Melt Polyester Staple Fiber from the 
Republic of Korea: Changed Circumstances Review Request,'' dated May 
23, 2019 (TAK CCR Request) at 1-2.
    \4\ Id. at 2.
    \5\ Id. at Exhibits 7, 9, 11, and 12.
    \6\ Id. at 2.
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Scope of the AD Order

    The merchandise subject to this order is synthetic staple fibers, 
not carded or combed, specifically bi-component polyester fibers having 
a polyester fiber component that melts at a lower temperature than the 
other polyester fiber component (low melt PSF). The scope includes bi-
component polyester staple fibers of any denier or cut length. The 
subject merchandise may be coated, usually with a finish or dye, or not 
coated.
    Low melt PSF is classifiable under the Harmonized Tariff Schedule 
of the United States (HTSUS) subheading 5503.20.0015. Although the 
HTSUS subheading is provided for convenience and customs purposes, the 
written description of the scope of the order is dispositive.

Initiation and Preliminary Results

    Pursuant to section 751(b)(1)(A) of the Act and 19 CFR 351.216(d), 
Commerce will conduct a CCR upon receipt of a request from an 
interested party for a review of an AD order which shows changed 
circumstances sufficient to warrant a review of the order. In the past, 
Commerce has used CCRs to address the applicability of cash deposit 
rates after there have been changes in the name or structure of a 
respondent, such as a merger or spinoff (`successor-in-interest' or 
`successorship' determinations).\7\ The information submitted by TAK 
supporting its claim that it is the successor-in-interest to TCK 
demonstrates changed circumstances sufficient to warrant such a 
review.\8\ Therefore, in accordance with 751(b)(1)(A) of the Act and 19 
CFR 351.216(d) and (e), we are initiating a CCR based on the 
information contained in TAK's submission.
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    \7\ See, e.g., Diamond Sawblades and Parts Thereof from the 
People's Republic of China: Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review, 82 FR 51605, 51606 
(November 7, 2017) (unchanged in Diamond Sawblades and Parts Thereof 
from the People's Republic of China: Final Results of Antidumping 
Duty Changed Circumstances Review, 82 FR 60177 (December 19, 2017)).
    \8\ See 19 CFR 351.216(d).
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    Section 351.221(c)(3)(ii) of Commerce's regulations permits 
Commerce to combine the notice of initiation of a CCR and the notice of 
preliminary results if Commerce concludes that expedited action is 
warranted.\9\ In this instance, because the record contains information 
necessary to make a preliminary finding, we find that expedited action 
is warranted and have combined the notice of initiation and the notice 
of preliminary results.
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    \9\ See 19 CFR 351.221(c)(3)(ii); see also Certain Pasta from 
Italy: Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review, 80 FR 33480-41 (June 12, 2015), 
unchanged in Certain Pasta from Italy: Final Results of Changed 
Circumstances Review, 80 FR 48807 (August 14, 2015).
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    In this CCR, pursuant to section 751(b) of the Act, Commerce 
conducted a successor-in-interest analysis. In making a successor-in-
interest determination, Commerce examines several factors, including, 
but not limited to, changes in the following: (1) Management; (2) 
production facilities; (3) supplier relationships; and (4) customer 
base.\10\ While no single factor or combination of factors will 
necessarily provide a dispositive indication of a successor-in-interest 
relationship, generally, Commerce will consider the new company to be 
the successor to the previous company if the new company's operation is 
not materially dissimilar to that of its predecessor.\11\ Thus, if the 
record evidence demonstrates that, with respect to the production and 
sale of the subject merchandise, the new company operates as 
essentially the same business entity as the predecessor company, 
Commerce may assign the

[[Page 33236]]

new company the cash deposit rate of its predecessor.\12\
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    \10\ See, e.g., Notice of Final Results of Changed Circumstances 
Antidumping Duty Administrative Review: Polychloroprene Rubber from 
Japan, 67 FR 58 (January 2, 2002) (Rubber from Japan).
    \11\ See, e.g., Fresh and Chilled Atlantic Salmon from Norway; 
Final Results of Changed Circumstances Antidumping Duty 
Administrative Review, 64 FR 9979, 9980 (March 1, 1999).
    \12\ Id.; see also Rubber from Japan, 67 FR 58-59; and Ball 
Bearings and Parts Thereof from France: Final Results of Changed-
Circumstances Review, 75 FR 34688-89 (June 18, 2010).
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    Based on the evidence on the record, we preliminarily determine 
that TAK is the successor-in-interest to TCK. Specifically, record 
evidence, as submitted by TAK, indicates that TAK operates as 
essentially the same business entity as TCK with respect to the subject 
merchandise.\13\ For the complete successor-in-interest analysis, refer 
to the accompanying successor-in-interest memorandum.\14\
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    \13\ See TAK CCR Request.
    \14\ See Memorandum, ``Low Melt Polyester Staple Fiber from the 
Republic of Korea: Preliminary Successor-In-Interest 
Determination,'' dated concurrently with this notice.
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    Record evidence, as submitted by TAK, indicates that TAK merged 
with its wholly-owned subsidiary, TCK, and TAK absorbed TCK's low melt 
PSF business division in its entirety. Specifically, TAK provided the 
Merger Agreement which transfers TCK's assets, rights, and liabilities 
to TAK; shareholder information showing the ownership of TCK by TAK 
before the merger and the ownership of TAK after the merger; approvals 
from various governing entities confirming the incorporation of TCK's 
business into TAK; letters notifying clients and investors of the 
merger and the intent for TCK's business to continue without change; 
organizational charts demonstrating the production and sales activities 
of TCK and TAK before the merger and TAK after the merger; a list of 
the low melt PSF sales team at TCK and at TAK; a list of Board of 
Directors and other executives before and after the merger; a list of 
low melt PSF input suppliers and customers before and after the merger; 
documentation showing low melt PSF production facilities and capacity 
before and after the merger; and TCK's pre-merger low melt PSF product 
brochure which TAK used to market low melt PSF after the merger.\15\ In 
summary, TAK presented evidence to support its claim of successorship 
and the transfer did not impact any of the criteria that Commerce 
typically looks to when making a changed circumstances determination.
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    \15\ See TAK CCR Request.
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    We find that the evidence provided by TAK is sufficient to 
preliminarily determine that the transfer of TCK's low melt PSF 
operations to TAK did not affect the company's operations in a 
meaningful way. Therefore, based on the aforementioned reasons, we 
preliminarily determine that TAK is the successor-in-interest to TCK 
and, thus, should receive the same AD treatment with respect to the 
subject merchandise as its predecessor company, TCK.
    Should our final results remain the same as these preliminary 
results, we will instruct U.S. Customs and Border Protection to suspend 
entries of subject merchandise produced or exported by TAK at TCK's 
cash deposit rate, effective on the publication date of our final 
results.

Public Comment

    Pursuant to 19 CFR 351.310(c), any interested party may request a 
hearing within 30 days of publication of this notice. In accordance 
with 19 CFR 351.309(c)(1)(ii), interested parties may submit case 
briefs not later than 30 days after the date of publication of this 
notice. Rebuttal briefs, limited to issues raised in the case briefs, 
may be filed no later than five days after the case briefs, in 
accordance with 19 CFR 351.309(d). Parties who submit case or rebuttal 
briefs are encouraged to submit with each argument: (1) A statement of 
the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.\16\ All comments are to be filed electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS) available to registered 
users at https://access.trade.gov and in the Central Records Unit, Room 
B8024 of the main Commerce building. An electronically-filed document 
must be received successfully in its entirety by ACCESS by 5:00 p.m. 
Eastern Time on the day it is due.\17\
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    \16\ See 19 CFR 351.309(c)(2) and (d)(2).
    \17\ See 19 CFR 351.303(b).
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    Consistent with 19 CFR 351.216(e), we will issue the final results 
of this CCR no later than 270 days after the date on which this review 
was initiated, or within 45 days of publication of these preliminary 
results if all parties agree to our preliminary finding.

Notification to Interested Parties

    This notice is published in accordance with sections 751(b)(1) and 
777(i)(1) of the Act and 19 CFR 351.216(b), 351.221(b), and 
351.221(c)(3).

    Dated: July 8, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2019-14864 Filed 7-11-19; 8:45 am]
BILLING CODE 3510-DS-P