[Federal Register Volume 84, Number 185 (Tuesday, September 24, 2019)]
[Notices]
[Pages 49984-49986]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20563]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-791-824]


Acetone From the Republic of South Africa: 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 South Africa (South Africa) is being, 
or is likely to be, sold in the United States at less than fair value. 
The period of investigation (POI) is January 1, 2018 through December 
31, 2018.

DATES: Applicable September 24, 2019.

FOR FURTHER INFORMATION CONTACT: Charlotte Baskin-Gerwitz, 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) 482-4880.

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 11, 
2019.\1\ On July 15, 2019, Commerce postponed the deadline for the 
preliminary determination of this

[[Page 49985]]

investigation.\2\ As a result, the revised deadline for the preliminary 
determination of this investigation is now September 17, 2019.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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 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.
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Acetone 
from the Republic of South Africa,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The merchandise covered by this investigation is acetone from South 
Africa. 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.
---------------------------------------------------------------------------

    \4\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 84 FR at 9756-57.
    \6\ See Memorandum, ``Acetone from Belgium, Korea, Singapore, 
South Africa, and Spain: Scope Comments Preliminary Decision 
Memorandum,'' dated July 29, 2019 (Preliminary Scope Decision 
Memorandum).
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this investigation in accordance with 
section 731 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)(A)(ii) and 735(c)(5)(A) of the Act provide that 
in the preliminary determination Commerce shall determine an estimated 
all-others rate for all 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 an individual estimated 
weighted-average dumping margin for Sasol South Africa, the only 
individually examined exporter/producer in this investigation. Because 
the only individually calculated dumping margin is not zero, de 
minimis, or based entirely on facts otherwise available, the estimated 
weighted-average dumping margin calculated for Sasol South Africa is 
the margin assigned to all other producers and exporters, pursuant to 
section 735(c)(5)(A) of the Act.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist for the period January 1, 2018 
through December 31, 2018:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Sasol South Africa Limited..................................       45.85
All Others..................................................       45.85
------------------------------------------------------------------------

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 respondent 
listed above will be equal to the company-specific estimated weighted-
average 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 weighted-average 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 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.\7\ 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.
---------------------------------------------------------------------------

    \7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    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

[[Page 49986]]

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 21, 2019, pursuant to 19 CFR 351.210(b)(2)(ii) and 19 CFR 
351.210(e)(2), Sasol South Africa requested that Commerce postpone the 
final determination until 135 days after the publication of this 
notice.\8\ Sasol South Africa also requested that Commerce extend the 
provisional measures to a period not more than 6 months.\9\ On August 
22, 2019, the petitioner consented to postponement of the final 
determination, subject to fulfillment of the requirements of 19 CFR 
351.210(b)(2)(ii) and 19 CFR 351.210(e)(2).\10\ 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.
---------------------------------------------------------------------------

    \8\ See Sasol South Africa's Letter, ``Acetone from the Republic 
of South Africa: Request to Postpone Final Determination,'' dated 
August 21, 2019.
    \9\ Id.
    \10\ See Petitioner's Letter, ``Acetone from Belgium, Korea, and 
South Africa: Petitioner's Consent to Postponement of the Final 
Determination,'' dated August 22, 2019.
---------------------------------------------------------------------------

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.\11\
---------------------------------------------------------------------------

    \11\ See section 735(b)(2) of the Act.
---------------------------------------------------------------------------

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. 2019-20563 Filed 9-23-19; 8:45 am]
BILLING CODE 3510-DS-P