[Federal Register Volume 85, Number 176 (Thursday, September 10, 2020)]
[Notices]
[Pages 55825-55828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20010]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-122]


Certain Corrosion Inhibitors From the People's Republic of China: 
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 certain corrosion inhibitors (corrosion inhibitors) from the 
People's Republic of China (China) are being, or are likely to be, sold 
in the United States at less than fair value (LTFV). The period of 
investigation (POI) is July 1, 2019 through December 31, 2019. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable September 10, 2020.

FOR FURTHER INFORMATION CONTACT: Lochard Philozin or Andre Gziryan, AD/
CVD Operations, Office I, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4260 or (202) 
482-2201, 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

[[Page 55826]]

on March 3, 2020.\1\ On June 10, 2020, Commerce postponed the 
preliminary determination of this investigation, and the revised 
deadline is now September 2, 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. 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.
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    \1\ See Certain Corrosion Inhibitors from the People's Republic 
of China: Initiation of Less-Than-Fair-Value Investigations, 85 FR 
12506 (March 3, 2020) (Initiation Notice).
    \2\ See Certain Corrosion Inhibitors from the People's Republic 
of China: Postponement of Preliminary Determination of Antidumping 
Duty Investigation, 85 FR 36376 (June 16, 2020).
    \3\ See Memorandum, ``Certain Corrosion Inhibitors from the 
People's Republic of China: Decision Memorandum for Preliminary 
Affirmative Determination of Sales at Less Than Fair Value,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are corrosion inhibitors 
from China. 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\ No interested party 
commented on the scope of the investigation. Thus, Commerce has not 
modified the scope language as it appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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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 and constructed export prices 
in accordance with section 772(b) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act, 
Commerce has calculated normal value in accordance with section 773(c) 
of the Act.
    In addition, Commerce has relied on facts available under section 
776(a) of the Act to determine the cash deposit rate assigned to the 
China-wide entity. Furthermore, pursuant to sections 776 (a) and (b) of 
the Act because the Chine-wide entity did not cooperate to the best of 
its ability in responding to the Commerce's request for data, Commerce 
preliminarily has relied upon facts otherwise available, with adverse 
inferences, for the China-wide Entity. For a full description of the 
methodology underlying Commerce's preliminary determination, see the 
Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,6 Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\7\
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    \6\ See Initiation Notice at 85 FR 12506.
    \7\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

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

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                                                                                               Cash deposit rate
                                                                          Estimated weighted-    (adjusted for
                Producer                             Exporter               average dumping    subsidy offsets)
                                                                           margin (percent)        (percent)
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Nantong Botao Chemical Co., Ltd........  Jiangyin Delian Chemical Co.,                122.11               64.53
                                          Ltd.
Nantong Kanghua Chemical Co., Ltd......  Jiangyin Delian Chemical Co.,                122.11               64.53
                                          Ltd.
Nantong Botao Chemical Co., Ltd........  Nantong Botao Chemical Co., Ltd              128.06               94.71
Anhui Trust Chem Co., Ltd..............  Anhui Trust Chem Co., Ltd......              125.09               79.63
Gold Chemical Limited..................  Gold Chemical Limited..........              125.09               79.63
Jiangsu Bohan Industry Trade Co., Ltd..  Gold Chemical Limited..........              125.09               79.63
Jiangyin Gold Fuda Chemical Co., Ltd...  Gold Chemical Limited..........              125.09               79.63
Ningxia Ruitai Technology Co., Ltd.....  Gold Chemical Limited..........              125.09               79.63
SHANGHAI SUNTECH BIOCHEMICAL CO., LTD..  Gold Chemical Limited..........              125.09               79.63
Nantong Kanghua Chemical Co., Ltd......  Nantong Kanghua Chemical Co.,                125.09               79.63
                                          Ltd.
Anhui Trust Chem Co., Ltd..............  Nanjing Trust Chem Co., Ltd....              125.09               79.63
China-Wide Entity......................  ...............................              260.92              227.57
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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 subject merchandise, as described in the scope of the investigation 
section, entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of this notice in the Federal Register, 
as discussed below. 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 weighted average amount by which normal value 
exceeds U.S. price, as indicated in the chart above, as follows: (1) 
For the producer/exporter combinations listed in the table above, the 
cash deposit rate is equal to the estimated weighted-average dumping 
margin listed for that combination in the table; (2) for all 
combinations of Chinese producers/exporters of subject merchandise that 
have not established eligibility for their own separate rates, the cash 
deposit rate will be equal to the estimated weighted-average dumping 
margin established for the China-wide entity; and (3) for all third-
country exporters of subject merchandise not listed in the table above, 
the cash deposit rate is the cash deposit rate applicable to the 
Chinese producer/exporter combination (or

[[Page 55827]]

China-wide entity) that supplied that third-country exporter.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce has made a preliminary 
affirmative determination for domestic subsidy pass-through or export 
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted 
rates may be found in the Preliminary Determination section's chart of 
estimated weighted-average dumping margins above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margins calculated in this preliminary determination unadjusted for the 
passed-through domestic subsidies or for export subsidies at the time 
the CVD provisional measures expire. These suspension of liquidation 
instructions will remain in effect until further notice.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this preliminary determination within five 
days of its 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 seven days after the deadline 
date for case briefs.\8\ Note that Commerce has modified certain of its 
requirements for serving documents containing business proprietary 
information until further notice.\9\ 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).
    \9\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10, 
2020).
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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 a time and date to be 
determined. Parties should confirm the date and time 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 petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for postponement of a final antidumping 
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.
    Between August 25, 2020 and August 28, 2020, pursuant to 19 CFR 
351.210(e), the mandatory respondents, Nantong Botao Chemical Co., 
Ltd., (Botao) \10\ and Jiangyin Delian Chemical Co., Ltd. (Delian),\11\ 
and the petitioner, Wincom, Inc. (petitioner),\12\ requested that 
Commerce postpone the final determination and that provisional measures 
be extended to a period not to exceed six months. 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, pursuant to section 735(a)(2) of the 
Act.
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    \10\ See Botao's Letter, ``Certain Corrosion Inhibitors from the 
People's Republic of China: Request to Extend Final Determination,'' 
dated August 25, 2020.
    \11\ See Delian's Letter, ``Corrosion Inhibitors from China; A-
570-122; Request to Extend the Final Determination,'' dated August 
27, 2020.
    \12\ See Petitioner's Letter, ``Certain Corrosion Inhibitors 
from the People's Republic of China: Petitioner's Request for 
Postponement of Final Determination,'' dated August 28, 2020.
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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 of sales at LTFV. 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 of the subject merchandise 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: September 2, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is tolyltriazole 
and benzotriazole. This includes tolyltriazole and benzotriazole of 
all grades and forms, including their sodium salt forms. 
Tolyltriazole is technically known as Tolyltriazole IUPAC 4,5 methyl 
benzotriazole. It can also be identified as 4,5 methyl 
benzotriazole, tolutriazole, TTA, and TTZ.
    Benzotriazole is technically known as IUPAC 1,2,3-Benzotriazole. 
It can also be identified as 1,2,3-Benzotriazole, 1,2-
Aminozophenylene, lH-Benzotriazole, and BTA.

[[Page 55828]]

    All forms of tolyltriazole and benzotriazole, including but not 
limited to flakes, granules, pellets, prills, needles, powder, or 
liquids, are included within the scope of this investigation.
    The scope includes tolyltriazole/sodium tolyltriazole and 
benzotriazole/sodium benzotriazole that are combined or mixed with 
other products. For such combined products, only the tolyltriazole/
sodium tolyltriazole and benzotriazole/sodium benzotriazole 
component is covered by the scope of this investigation. 
Tolyltriazole and sodium tolyltriazole that have been combined with 
other products is included within the scope, regardless of whether 
the combining occurs in third countries.
    Tolyltriazole, sodium tolyltriazole, benzotriazole and sodium 
benzotriazole that is otherwise subject to this investigation is not 
excluded when commingled with tolyltriazole, sodium tolyltriazole, 
benzotriazole, or sodium benzotriazole from sources not subject to 
this investigation. Only the subject merchandise component of such 
commingled products is covered by the scope of this investigation.
    A combination or mixture is excluded from this investigation if 
the total tolyltriazole or benzotriazole component of the 
combination or mixture (regardless of the source or sources) 
comprises less than 5 percent of the combination or mixture, on a 
dry weight basis.
    Notwithstanding the foregoing language, a tolyltriazole or 
benzotriazole combination or mixture that is transformed through a 
chemical reaction into another product, such that, for example, the 
tolyltriazole or benzotriazole can no longer be separated from the 
other products through a distillation or other process is excluded 
from this investigation.
    Tolyltriazole has the Chemical Abstracts Service (CAS) registry 
number 299385-43-1. Tolyltriazole is classified under Harmonized 
Tariff Schedule of the United States (HTSUS) subheading 
2933.99.8220.
    Sodium Tolyltriazole has the CAS registry number 64665-57-2 and 
is classified under HTSUS subheading 2933.99.8290.
    Benzotriazole has the CAS registry number 95-14-7 and is 
classified under HTSUS subheading 2933.99.8210.
    Sodium Benzotriazole has the CAS registry number 15217-42-2. 
Sodium Benzotriazole is classified under HTSUS subheading 
2933.99.8290.
    Although the HTSUS subheadings and CAS registry numbers 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 Comments
V. Discussion of the Methodology
VI. Adjustment Under Section 777(A)(F) of the Act
VII. Adjustment to Cash Deposit Rate for Export Subsidies
VIII. Conclusion

[FR Doc. 2020-20010 Filed 9-9-20; 8:45 am]
BILLING CODE 3510-DS-P