[Federal Register Volume 84, Number 150 (Monday, August 5, 2019)]
[Notices]
[Pages 37990-37992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16660]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-469-819]
Acetone From Spain: Preliminary Affirmative Determination of
Sales at Less Than Fair Value, and Preliminary Determination of No
Shipments
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that acetone from Spain is being, or is likely to be, sold in the
United States at less than fair value (LTFV). The period of
investigation (POI) is January 1, 2018 through December 31, 2018.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable August 5, 2019.
FOR FURTHER INFORMATION CONTACT: Preston Cox, AD/CVD Operations, Office
VI, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-5041.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on March 18,
2019.\1\ For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\2\ A list of topics included in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
via Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). ACCESS is available to
registered users at https://access.trade.gov, and to all parties in the
Central Records Unit, Room B8024 of the main Department of Commerce
building. In addition, a complete version of the Preliminary Decision
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary
Decision Memorandum are identical in content.
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\1\ See 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, 84 FR 9755 (March
18, 2019) (Initiation Notice).
\2\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Acetone
from Spain'' dated concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is acetone from Spain.
For a complete description of the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations, the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope). Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this preliminary
determination and accompanying discussion and analysis of all comments
timely received, see the Preliminary Scope Decision Memorandum.\3\
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\3\ See Memorandum, ``Acetone from Belgium, Korea, Singapore,
South Africa, and Spain: Scope Comments Preliminary Decision
Memorandum,'' dated July 29, 2019.
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In accordance with the comments discussed below, Commerce is adding
a five percent ``threshold'' to the scope description. In accordance
with the threshold, a product is excluded from the scope of this
investigation if the total acetone component of the product (regardless
of the source or sources) comprises less than five percent of the
product on a dry weight basis. Additionally, Commerce has added an
illustrative list of subheadings under Chapter 38 of the HTSUS that may
include subject acetone. Finally, Commerce has made other non-
substantive revisions to the language of the scope in order to improve
clarity.
[[Page 37991]]
See the revised scope in Appendix I to this notice.
Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Pursuant to sections 776(a) and (b) of the Act,
Commerce has preliminarily relied upon facts otherwise available, with
adverse inferences for CEPSA Quimica, S.A. (CEPSA). For a full
description of the methodology underlying the preliminary
determination, see the Preliminary Decision Memorandum.
Preliminary Determination of No Shipments
On March 25, 2019, Industrias Quimicas del Oxido de Etileno, S.A.
(IQOXE), one of the two Spanish producers/exporters named in the
petition,\4\ timely filed a statement reporting that it had ``no
exports, shipments, or sales'' of subject merchandise to the United
States during the POI.\5\ Subsequently, to confirm the accuracy of
IQOXE's statements, Commerce queried U.S. Customs and Border Protection
(CBP) data for entries of subject merchandise by IQOXE during the
POI.\6\ On April 19, Commerce confirmed in a memorandum that IQOXE made
no shipments of acetone during the POI.\7\ Furthermore, there is no
evidence on the record indicating that IQOXE is affiliated with CEPSA
or any producers/exports of the subject merchandise. Accordingly,
Commerce preliminarily determines that IQOXE had no sales of subject
merchandise during the POI, and therefore we preliminarily determine
not to further examine IQOXE as part of this investigation. As such,
any entries of subject merchandise exported by IQOXE will be subject to
the all-others rate. For additional information regarding this
determination, see the Preliminary Decision Memorandum.
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\4\ See the 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 Petition),
Volume I at 8, 31 and Exhibit I-10.
\5\ See Letter, ``Acetone from Spain: First Supplemental
Questionnaire,'' dated March 25, 2019.
\6\ See Memorandum, ``No Shipment Inquiry With Respect to the
Company Below During the Period 01/01/2018-12/31/2018,'' dated April
16, 2019.
\7\ Id.
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All-Others Rate
Pursuant to section 735(c)(5)(B) of the Act, if the estimated
weighted-average dumping margins established for all exporters and
producers individually examined are zero, de minimis or determined
based entirely on facts otherwise available, Commerce may use any
reasonable method to establish the estimated weighted-average dumping
margin for all-other producers or exporters.
Commerce has preliminarily determined the estimated weighted-
average dumping margin for the individually examined respondent (i.e.,
CEPSA) entirely under section 776 of the Act. Consequently, pursuant to
section 735(c)(5)(B) of the Act, Commerce's normal practice under these
circumstances has been to calculate the all-others rate as a simple
average of the alleged dumping margins from the petition.\8\ For a full
description of the methodology underlying Commerce's analysis, see the
Preliminary Decision Memorandum.
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\8\ See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value: Sodium Nitrite from the Federal Republic of
Germany, 73 FR 21909, 21912 (April 23, 2008), unchanged in Notice of
Final Determination of Sales at Less Than Fair Value: Sodium Nitrite
from the Federal Republic of Germany, 73 FR 38986, 38987 (July 8,
2008), and accompanying Issues and Decision Memorandum at Comment 2;
see also Notice of Final Determination of Sales at Less Than Fair
Value: Raw Flexible Magnets from Taiwan, 73 FR 39673, 39674 (July
10, 2008); Steel Threaded Rod from Thailand: Preliminary
Determination of Sales at Less Than Fair Value and Affirmative
Preliminary Determination of Critical Circumstances, 78 FR 79670,
79671 (December 31, 2013), unchanged in Steel Threaded Rod from
Thailand: Final Determination of Sales at Less Than Fair Value and
Affirmative Final Determination of Critical Circumstances, 79 FR
14476, 14477 (March 14, 2014).
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Preliminary Determination
Commerce preliminarily determines that the following estimated
dumping margins exist:
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Estimated
Exporter/producer dumping margin
(percent)
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CEPSA Quimica, S.A...................................... 171.81
All Others.............................................. 137.39
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct CBP to suspend liquidation of entries of subject merchandise, as
described in Appendix I, entered, or withdrawn from warehouse, for
consumption on or after the date of publication of this notice in the
Federal Register. Further, pursuant to section 733(d)(1)(B) of the Act
and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the estimated dumping margin or the estimated all-
others rate, as follows: (1) The cash deposit rate for the respondent
listed above will be equal to the company-specific estimated dumping
margin determined in this preliminary determination; (2) if the
exporter is not a respondent identified above, but the producer is,
then the cash deposit rate will be equal to the company-specific
estimated dumping margin established for that producer of the subject
merchandise; and (3) the cash deposit rate for all other producers and
exporters will be equal to the all-others estimated dumping margin.
Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a preliminary determination within five
days of any public announcement or, if there is no public announcement,
within five days of the date of publication of the notice of
preliminary determination in the Federal Register, in accordance with
19 CFR 351.224(b). However, because Commerce preliminarily applied AFA
to the individually examined company (i.e., CEPSA) in this
investigation, in accordance with section 776 of the Act, and the
applied AFA rate is based solely on the highest margin alleged in the
petition, there are no calculations to disclose.
Verification
Because the examined respondent in this investigation did not
provide information requested by Commerce, and Commerce preliminarily
determines the examined respondent has been uncooperative, we will not
conduct verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than 30
days after the date of publication of the preliminary determination,
unless the Secretary alters the time limit.\9\ Rebuttal briefs, limited
to issues raised in case briefs, may be submitted no later than five
days after the deadline date for case briefs.\10\ Pursuant to 19 CFR
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal
briefs in this investigation 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.
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\9\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for
general filing requirements). Commerce has exercised its discretion
under 19 CFR 351.309(c)(1)(i) to alter the time limit for submission
of case briefs.
\10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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[[Page 37992]]
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Final Determination
Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that
Commerce will issue the final determination within 75 days after the
date of its preliminary determination. Accordingly, Commerce will make
its final determination no later than 75 days after the signature date
of this preliminary determination.
International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: July 29, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation 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 covers both pure acetone (with or without impurities)
and acetone that is combined or mixed with other products,
including, but not limited to, isopropyl alcohol, benzene, diethyl
ether, methanol, chloroform, and ethanol. Acetone that has been
combined with other products is included within the scope,
regardless of whether the combining occurs in third countries.
The scope also includes acetone that is commingled with acetone
from sources not subject to this investigation.
For combined and commingled products, only the acetone component
is covered by the scope of this investigation. However, when acetone
is combined with acetone components from sources not subject to this
investigation, those third country acetone components may still be
subject to other acetone investigations.
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 this investigation.
A combination or mixture is excluded from these investigations
if the total acetone component (regardless of the source or sources)
comprises less than 5 percent of the combination or mixture, on a
dry weight basis.
The Chemical Abstracts Service (CAS) registry number for acetone
is 67-64-1.
The merchandise covered by this investigation is currently
classifiable under Harmonized Tariff Schedule of the United States
(HTSUS) subheadings 2914.11.1000 and 2914.11.5000. Combinations or
mixtures of acetone may enter under subheadings in Chapter 38 of the
HTSUS, including, but not limited to, those under heading
3814.00.1000, 3814.00.2000, 3814.00.5010, and 3814.00.5090. The list
of items found under these HTSUS subheadings is non-exhaustive.
Although these HTSUS subheadings and CAS registry number are
provided for convenience and customs purposes, the written
description of the scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Scope Comments
VI. Preliminary Determination of No Shipments
VII. Application of Facts Available and Use of Adverse Inference
VIII. All-Others Rate
IX. Verification
X. Conclusion
[FR Doc. 2019-16660 Filed 8-2-19; 8:45 am]
BILLING CODE 3510-DS-P