[Federal Register Volume 85, Number 42 (Tuesday, March 3, 2020)]
[Notices]
[Pages 12500-12502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04344]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-903]


Polyethylene Terephthalate Sheet 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 polyethylene terephthalate sheet (PET sheet) from the Republic of 
Korea (Korea) is being, or is likely to be, sold in the United States 
at less than fair value (LTFV). The period of investigation (POI) is 
July 1, 2018 through June 30, 2019. Interested parties are invited to 
comment on this preliminary determination.

DATES: Applicable March 3, 2020.

FOR FURTHER INFORMATION CONTACT: Peter Zukowski or Kate Sliney, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0189 or (202) 482-2437, 
respectively.

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 August 27, 
2019.\1\ On December 17, 2019, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
February 25, 2020.\2\ 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.
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    \1\ See Polyethylene Terephthalate Sheet from the Republic of 
Korea, Mexico, and the Sultanate of Oman: Initiation of Less-Than-
Fair-Value Investigations, 84 FR 44854 (August 27, 2019) (Initiation 
Notice).
    \2\ See Polyethylene Terephthalate Sheet from the Republic of 
Korea and the Sultanate of Oman: Postponement of Preliminary 
Determinations in the Less-Than-Fair-Value Investigations, 84 FR 
70941 (December 26, 2019).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of 
Polyethylene Terephthalate Sheet from the Republic of Korea,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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    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.

Scope of the Investigation

    The product covered by this investigation is PET sheet 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\ 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.\6\ 
Commerce is not preliminarily modifying the scope language as it 
appeared in the Initiation Notice. See the 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, ``Polyethylene Terephthalate Sheet from the 
Republic of Korea: Preliminary Scope Decision Memorandum,'' dated 
concurrently with this notice (Preliminary Scope Decision 
Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 733(b) of the Act. Constructed export prices have been 
calculated in accordance with section 772(b) of the Act. Normal value 
is calculated in accordance with section 773 of the Act. Furthermore, 
pursuant to sections 776(a) and (b) of the Act, Commerce has 
preliminarily relied upon facts otherwise available, with adverse 
inferences, for non-participating mandatory respondent Plastech Co. 
Ltd. (Plastech), as well as the following companies which did not 
submit a response to Commerce's initial request for quantity and value 
information: Chungdang Co., K Stout Co., Kemicolor Corp., KP Tech Ltd., 
Moojin Che, OKS Poly, Puyoung Industry Co., Samjin Plastic Co., Sangil 
Corp., SK Chemicals, Tae Kwang New Tech. Co., Ltd., and Unidesign Co 
(collectively, non-responsive companies). 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

[[Page 12501]]

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.
    In this investigation, Commerce preliminarily assigned a rate based 
entirely on facts available to Plastech. Therefore, the only rate that 
is not zero, de minimis, or based entirely on facts otherwise available 
is the rate calculated for Jin Young Chemical Co., Ltd. (JYC). 
Consequently, the rate calculated for JYC is also assigned as the rate 
for all other producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Jin Young Chemical Co., Ltd.................................        8.02
Plastech Co., Ltd...........................................       52.01
Chungdang Co................................................       52.01
K Stout Co..................................................       52.01
Kemicolor Corp..............................................       52.01
KP Tech Ltd.................................................       52.01
Moojin Che..................................................       52.01
OKS Poly....................................................       52.01
Puyoung Industry Co.........................................       52.01
Samjin Plastic Co...........................................       52.01
Sangil Corp.................................................       52.01
SK Chemicals................................................       52.01
Tae Kwang New Tech. Co., Ltd................................       52.01
Unidesign Co................................................       52.01
All Others..................................................        8.02
------------------------------------------------------------------------

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 respondents 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 and exporters will be equal to the all-others estimated 
weighted-average dumping margin. These suspension of liquidation 
instructions will remain in effect until further notice.

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

    Commerce is setting different deadlines for scope-related case and 
rebuttal briefs, and case and rebuttal briefs addressing all other 
issues.
    Scope briefs may be submitted to the Assistant Secretary for 
Enforcement and Compliance no later than 30 days after the publication 
of the preliminary antidumping duty (AD) determinations for Korea and 
Oman in the Federal Register. Rebuttal scope briefs, limited to issues 
raised in the scope case briefs, may be submitted no later than three 
days after the deadline for the scope case briefs. These deadlines are 
based on publication in the Federal Register of the preliminary 
determinations in the AD investigations of PET sheet. There is only one 
briefing schedule for scope case and rebuttal briefs in the AD 
investigations. For all scope issues, parties must file separate and 
identical documents on the records of all of the ongoing AD PET sheet 
investigations. No new factual information should be included in scope 
case briefs or rebuttal scope briefs, and no proprietary information 
should be submitted in the scope case briefs and rebuttal scope briefs.
    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing on the revised scope, limited to issues raised in the 
scope case and rebuttal briefs, must submit a written request to the 
Assistant Secretary for Enforcement and Compliance, U.S. Department of 
Commerce, separate from the hearing on issues raised in case briefs, 
within five 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.
    Scope comments may only be included in the scope case brief and 
scope rebuttal brief. Should this investigation result in an order, 
interested parties may submit requests for a scope ruling afterwards.
    Case briefs or other non-scope 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.
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    \7\ 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.

[[Page 12502]]

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 provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On February 18, 2020, pursuant to 19 CFR 351.210(e), JYC requested 
that, contingent upon an affirmative preliminary determination of sales 
at LTFV, Commerce postpone the final determination and that provisional 
measures be extended to a period not to exceed six months. In addition, 
on February 14, 2020, the petitioners \8\ requested that Commerce fully 
postpone the deadline for the final determination in this 
investigation. 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 exporters account 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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    \8\ The petitioners are Advanced Extrusion Inc., Ex-Tech 
Plastics, Inc., and Multi-Plastics Extrusions, Inc.
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International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the 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 subject 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: February 25, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is raw, 
pretreated, or primed polyethylene terephthalate sheet, whether 
extruded or coextruded, in nominal thicknesses of equal to or 
greater than 7 mil (0.007 inches or 177.8 [mu]m) and not exceeding 
45 mil (0.045 inches or 1,143 [mu]m) (PET sheet). The scope includes 
all PET sheet whether made from prime (virgin) inputs or recycled 
inputs, as well as any blends thereof. The scope includes all PET 
sheet meeting the above specifications regardless of width, color, 
surface treatment, coating, lamination, or other surface finish.
    The merchandise subject to this investigation is properly 
classified under statistical reporting number 3920.62.0090 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although 
the HTSUS statistical reporting number is provided for convenience 
and customs purposes, the written description of the merchandise is 
dispositive.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Postponement of Final Determination and Extension of Provisional 
Measures
VI. Application of Facts Available and Use of Adverse Inference
VII. Discussion of the Methodology
VIII. Date of Sale
IX. Product Comparisons
X. Constructed Export Price
XI. Normal Value
XII. Currency Conversion
XIII. Recommendation

[FR Doc. 2020-04344 Filed 3-2-20; 8:45 am]
 BILLING CODE 3510-DS-P