[Federal Register Volume 85, Number 141 (Wednesday, July 22, 2020)]
[Notices]
[Pages 44281-44283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15841]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-905]


4th Tier Cigarettes From the Republic of Korea: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, and 
Preliminary Negative Determination of Critical Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that 4th Tier Cigarettes from the Republic of Korea (Korea) are being, 
or are likely to be, sold in the United States at less than fair value 
(LTFV). The period of investigation (POI) is October 1, 2018 through 
September 30, 2019. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable July 22, 2020.

FOR FURTHER INFORMATION CONTACT: Thomas Martin or Jesse Montoya, AD/CVD 
Operations, Office IV, Enforcement and Compliance, International Trade

[[Page 44282]]

Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3936 or (202) 482-8211, 
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 January 15, 
2020.\1\ On May 6, 2020, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
July 15, 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 4th Tier Cigarettes From the Republic of Korea: 
Initiation of Less-Than-Fair-Value Investigation, 85 FR 2390 
(January 15, 2020) (Initiation Notice).
    \2\ See 4th Tier Cigarettes from the Republic of Korea: 
Postponement of Preliminary Determination in the Less-Than-Fair-
Value Investigation, 85 FR 27991 (May 12, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of 4th Tier 
Cigarettes 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. 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 products covered by this investigation are 4th Tier Cigarettes 
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, 85 FR at 2391.
    \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 731of 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. For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.

Preliminary Negative Determination of Critical Circumstances

    In accordance with section 733(e) of the Act and 19 CFR 351.206, 
Commerce preliminarily finds that critical circumstances do not exist 
for KT&G Corporation, or for ``all others.'' For a full description of 
the methodology and results of Commerce's critical circumstances 
analysis, 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 
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 KT&G Corporation, 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 KT&G Corporation 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:

------------------------------------------------------------------------
                                                   Estimated
                                                   weighted-     Cash
                                                    average     deposit
                Exporter/producer                   dumping      rate
                                                    margin     (percent)
                                                   (percent)
------------------------------------------------------------------------
KT&G Corporation................................        5.48        5.48
All Others......................................        5.48        5.48
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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 respondent 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).

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than 21 
days after the date of publication of the

[[Page 44283]]

preliminary determination, unless Commerce alters the time limit. 
Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than seven 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; and 19 CFR 351.303 (for general filing 
requirements); see also Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19; Extension of Effective Period, 85 FR 
41363 (July 10, 2020) (Temporary Rule).
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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.
    An electronically filed document must be received successfully in 
its entirety by ACCESS by 5:00 p.m. Eastern Time on the established 
deadline. Note that Commerce has temporarily modified certain of its 
requirements for serving documents containing business proprietary 
information, until further notice.\8\
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    \8\ See Temporary Rule.
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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: July 15, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is certain tobacco 
cigarettes, commonly referred to as ``4th tier cigarettes.'' The 
subject cigarettes are composed of a tobacco blend rolled in paper, 
have a nominal minimum total length of 7.0 cm but do not exceed 12.0 
cm in total nominal length, and have a nominal diameter of less than 
1.3 cm. These sizes of cigarettes are frequently referred to as 
``Kings'' and ``100's,'' but subject merchandise that meets the 
physical description of the scope is included regardless of the 
marketing description of the size of the cigarettes. Subject 
merchandise typically has a tobacco blend that consists of 10% or 
more tobacco stems.
    Subject merchandise is typically sold in packs of 20 cigarettes 
per pack which generally includes the marking ``20 Class A 
Cigarettes'' but are included regardless of packaging. 4th tier 
cigarette packages are typically sold in boxes without a rounded 
internal corner and without embossed aluminum foil inside the pack.
    Both menthol and non-menthol cigarettes and cigarettes with or 
without a filter attached are covered by the scope of this 
investigation.
    Merchandise covered by this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under subheading 2402.20.8000. This HTSUS subheading is 
provided for convenience and customs purposes; the written 
description of the scope of the 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. Negative Preliminary Determination of Critical Circumstances
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. 2020-15841 Filed 7-21-20; 8:45 am]
BILLING CODE 3510-DS-P