[Federal Register Volume 84, Number 185 (Tuesday, September 24, 2019)]
[Notices]
[Pages 50005-50007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20561]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-899]
Acetone From the Republic of Korea: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, Postponement of Final
Determination, and Extension of Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that acetone from the Republic of Korea (Korea) is being, or is likely
to be, sold in the United States at less than fair value. The period of
investigation is January 1, 2018 through December 31, 2018.
DATES: Applicable September 24, 2019.
FOR FURTHER INFORMATION CONTACT: Sean Carey, AD/CVD Operations, Office
VII, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-3964.
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
initiated this investigation on March 11, 2019.\1\ On July 15, 2019,
Commerce postponed the deadline for the preliminary determination of
this investigation.\2\ As a result, the revised deadline for the
preliminary determination of this investigation is now September 17,
2019.
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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 Acetone from Belgium, the Republic of Korea, and the
Republic of South Africa: Postponement of Preliminary Determinations
in the Less-Than-Fair-Value Investigations, 84 FR 33739 (July 15,
2019).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ 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 it is available to
all parties in the Central Records Unit, room B8024 of the main
Commerce building. In addition, a complete version of the 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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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Acetone
from the Republic of Korea'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The merchandise covered by this investigation is acetone from
Korea. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ 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.\6\ After evaluating the comments, Commerce is
preliminarily modifying the scope language as it appeared in the
Initiation Notice to clarify certain provisions and include a minimum
acetone component of five percent. See the revised scope in Appendix I
to this notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Acetone from Belgium, Korea, Singapore,
South Africa, and Spain: Scope Comments Preliminary Decision
Memorandum,'' dated July 29, 2019.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Constructed export prices
have been calculated in accordance with section 772(b) of the Act.
Normal value (NV) is calculated in accordance with section 773 of the
Act. For a full description of the methodology underlying the
preliminary determination, see the Preliminary Decision Memorandum.
All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in
the preliminary determination Commerce shall determine an estimated
weighted-average dumping margin for all other exporters and producers
not individually examined. This rate shall be an amount equal to the
weighted average of the estimated weighted-average dumping margins
established for exporters and producers individually investigated,
excluding any zero and de minimis margins, and any margins determined
entirely under section 776 of the Act. Commerce calculated individual
estimated weighted-average dumping margins of 47.70 percent for Kumho
P&B Chemicals, Inc. (KPB) and 7.67 percent for LG Chem, Ltd. (LG Chem),
the two individually examined companies in this investigation. Commerce
calculated the rate for the companies not selected for individual
examination using a weighted-average of the estimated weighted-average
dumping margins calculated for KPB and LG Chem, and each company's
publicly-ranged U.S. sale quantities for the merchandise under
consideration.\7\ This margin was
[[Page 50006]]
assigned to all other producers or exporters, pursuant to section
735(c)(5)(A) of the Act.
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\7\ With two respondents under examination, Commerce normally
calculates (A) a weighted average of the estimated weighted-average
dumping margins calculated for the examined respondents (as directed
by the statute); (B) a simple average of the estimated weighted-
average dumping margins calculated for the examined respondents; and
(C) a weighted-average of the estimated weighted-average dumping
margins calculated for the examined respondents using each company's
publicly-ranged U.S. sale quantities for the merchandise under
consideration. Because the calculation in (A) includes business
proprietary information (BPI), Commerce then compares (B) and (C) to
(A) and selects the rate closest to (A) as the most appropriate rate
for all other producers or exporters not subject to individual
examination. See Ball Bearings and Parts Thereof from France,
Germany, Italy, Japan, and the United Kingdom: Final Results of
Antidumping Duty Administrative Reviews, Final Results of Changed-
Circumstances Review, and Revocation of an Order in Part, 75 FR
53661, 53663 (September 1, 2010). For a complete analysis including
the BPI data, see the Memorandum to the File, ``Preliminary
Determination Calculation for the `All-Others' Rate'' dated
concurrently with this notice.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist during the period of
investigation:
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Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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Kumho P&B Chemicals, Inc.................................... 47.70
LG Chem, Ltd................................................ 7.67
All Others.................................................. 21.80
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (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 weighted-
average dumping margin or the estimated all-others rate, as follows:
(1) The cash deposit rate for the exporter or producer listed above
will be equal to the company-specific estimated weighted-average
dumping margins 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 weighted-average dumping margin established for that producer
of the subject merchandise; and (3) the cash deposit rate for all other
producers or exporters will be equal to the all-others estimated
weighted-average dumping margin.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this 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 this
notice in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than five days after the deadline
date for case briefs.\8\ 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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\8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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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.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
determination be accompanied by a request for extension of the
provisional measures from a four-month period to a period not more than
six months in duration.
On August 22, 2019, pursuant to 19 CFR 351.210(e), the petitioner
requested that Commerce postpone the final determination until not
later than 135 days after the publication of this preliminary
determination.\9\ On August 22, 2019, LG Chem requested that Commerce
postpone the final determination until not later than 135 days after
the publication of this notice, and to extend the provisional measures
to a period not more than six months.\10\ KPB made the same request to
Commerce to postpone the final determination on August 26, 2019.\11\ In
accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii), because: (1) The preliminary determination is
affirmative; (2) the requesting exporter accounts for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, Commerce is postponing the final
determination and extending the provisional measures from a four-month
period to a period not greater than six months. Accordingly, Commerce
will make its final determination no later than 135 days after the date
of publication of this preliminary determination.
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\9\ See Petitioner's Letter, ``Acetone from Belgium, Korea, and
South Africa: Petitioner's Consent to Postponement of Final
Determinations,'' dated August 22, 2019.
\10\ See LG Chem's Letter, ``LG Chem's Request for Postponement
of the Final Determination,'' dated August 22, 2019.
\11\ See KPB's Letter, ``Request to Extend the Deadline for the
Final Determination,'' dated August 26, 2019.
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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
[[Page 50007]]
these imports are materially injuring, or threaten material injury to,
the U.S. industry.
Notification to Importers
This notice also serves as an initial reminder to importers of
their responsibility under 19 CFR 351.402(f) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation.
Failure to comply with this requirement could result in Commerce's
presumption that reimbursement of antidumping duties occurred and the
subsequent assessment of doubled antidumping duties.
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: September 17, 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. Postponement of Final Determination and Extension of Provisional
Measures
V. Scope Comments
VI. Scope of the Investigation
VII. Affiliation
VIII. Discussion of the Methodology
IX. Date of Sale
X. Product Comparisons
XI. Export Price and Constructed Export Price
XII. Normal Value
XIII. Currency Conversion
XIV. Verification
XV. Conclusion
[FR Doc. 2019-20561 Filed 9-23-19; 8:45 am]
BILLING CODE 3510-DS-P