[Federal Register Volume 85, Number 194 (Tuesday, October 6, 2020)]
[Notices]
[Pages 63095-63097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22060]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-907]


Ultra-High Molecular Weight Polyethylene From the Republic of 
Korea: Preliminary Affirmative Determination of Sales at Less Than Fair 
Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that ultra-high molecular weight polyethylene (ultra-high polyethylene) 
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, 2019 through December 31, 2019. Interested 
parties are invited to comment on this preliminary determination.

DATES: Applicable October 6, 2020.

FOR FURTHER INFORMATION CONTACT: Ian Hamilton, AD/CVD Operations, 
Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4798.

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 63096]]

on March 31, 2020.\1\ On July 20, 2020, Commerce postponed the 
preliminary determination of this investigation, and the revised 
deadline is now September 30, 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 https://enforcement.trade.gov/frn/summary/korea-south/korea-south-fr.htm. The signed and electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \1\ See Ultra-High Molecular Weight Polyethylene from the 
Republic of Korea: Initiation of Less-Than-Fair-Value Investigation, 
85 FR 17861 (March 31, 2020) (Initiation Notice).
    \2\ See Ultra-High Molecular Weight Polyethylene from the 
Republic of Korea: Postponement of Preliminary Determination in the 
Less-Than-Fair-Value Investigation, 85 FR 43813 (July 20, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Ultra-
High Molecular Weight Polyethylene 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 product covered by this investigation is ultra-high 
polyethylene 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 and 
rebuttal comments submitted on the record for this investigation, see 
the Preliminary Decision Memorandum. Commerce has preliminarily 
modified the scope language as it appeared in the Initiation Notice. 
See 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, 85 FR at 17862.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export price in 
accordance with section 772(a) 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.

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 Korea Petrochemical Ind. Co., Ltd./KPIC Corporation 
(collectively, KPIC), the only individually examined exporter/producer 
in this investigation.\6\ 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 KPIC is the margin assigned to all other producers and 
exporters, pursuant to section 735(c)(5)(A) of the Act.
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    \6\ On September 2, 2020, Commerce determined to collapse Korea 
Petrochemical Ind. Co., Ltd. and KPIC Corporation and treat them as 
a single entity. See Memorandum, ``Antidumping Duty Investigation of 
Ultra-High Molecular Weight Polyethylene from the Republic of Korea: 
Korea Petrochemical Ind. Co., Ltd. Preliminary Affiliation and 
Collapsing Memorandum,'' dated September 2, 2020.
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Preliminary Determination

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Korea Petrochemical Ind. Co., Ltd./KPIC Corporation.........        7.80
All Others..................................................        7.80
------------------------------------------------------------------------

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 the 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 the date of public announcement of this notice in 
accordance with 19 CFR 351.224(b).

Verification

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. Accordingly, we intend to take additional steps in lieu 
of on-site verification. Commerce will notify interested parties of any 
additional documentation or information required.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of case briefs and 
written comments at a later date. 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

[[Page 63097]]

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 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.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date. 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 Modifying AD/CVD Service Requirements Due 
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10, 
2020).
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Postponement of Final Determination

    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 September 2, 2020, pursuant to 19 CFR 351.210(e), KPIC requested 
that Commerce postpone the final determination and that provisional 
measures be extended to a period not to exceed six months.\9\ On 
September 8, 2020, the petitioner submitted a letter supporting KPIC's 
request to postpone the final determination.\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) KPIC 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 by 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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    \9\ See KPIC's Letter, ``Ultra-High Molecular Weight 
Polyethylene from the Republic of Korea: Request to Postpone Final 
Determination and Extend Provisional Measures,'' dated September 2, 
2020.
    \10\ See Petitioner's Letter, ``Petitioners {sic{time}  for the 
Imposition of Antidumping Duties on Imports of Ultra-High Molecular 
Weight Polyethylene from the Republic of Korea: Petitioner's Consent 
to Postponement of the Final Determination,'' dated September 8, 
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. 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.

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 30, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by the scope is ultra-high molecular 
weight polyethylene. Ultra-high molecular weight polyethylene is a 
linear polyethylene, in granular or powder form is defined by its 
molecular weight, as defined by Margolie's Equation, of greater than 
1.0 x 10\6\ g/mol. Ultra-high molecular weight polyethylene may also 
be defined by its melt mass-flow rate of <0.1 g/10 min, measured at 
190 [deg]C and 21.6 kg load, based on the methods and calculations 
set forth in the International Organization for Standardization 
(ISO) standards 21304-1 and 21304-2. Ultra-high molecular weight 
polyethylene has a Chemical Abstract Service (CAS) registry number 
of 9002-88-4.
    The scope includes all ultra-high molecular weight polyethylene 
in granular or powder forms meeting the above specifications 
regardless of additives introduced in the manufacturing process. 
Ultra-high molecular weight polyethylene blended with other products 
is included in the scope of this investigation where ultra-high 
molecular weight polyethylene accounts for more than 50 percent, by 
actual weight, of the blend and the resulting blend maintains a 
molecular weight, as defined by Margolie's Equation, of greater than 
1.0 x 10\6\ g/mol and/or a melt mass-flow rate of <0.1 g/10 min.
    Excluded from the scope of the investigation is medical-grade 
ultra-high molecular weight polyethylene. Medical grade ultra-high 
molecular weight polyethylene has a minimum viscosity of 2000 ml/g 
at a concentration of 0.02% at 135 [deg]C (275 [deg]F) in 
decahydronaphthalene and an elongational stress of 0.2 MPa or 
greater. Medical-grade ultra-high molecular weight polyethylene is 
further defined by its ash and trace element content, which shall 
not exceed the following maximum quantities as set forth in ISO-
5834-1: Ash (125 mg/kg), titanium (40 mg/kg), calcium (5 mg/kg), 
chlorine (30 mg/kg), and aluminum (20 mg/kg). ISO 5834-1 further 
defines medical grade ultra-high molecular weight polyethylene by 
its particulate matter content, which requires that there shall be 
no more than three particles of contaminant per 300  20 
g tested. Each of the above criteria is calculated based on the 
standards and methods used in ISO 5834-1.
    Ultra-high molecular weight polyethylene is classifiable under 
the HTSUS subheadings 3901.10.1000 and 3901.20.1000. Although the 
HTSUS subheadings and CAS registry number are provided for 
convenience and customs purposes, the written description of the 
scope 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. Date of Sale
VII. Product Comparisons
VIII. Export Price
IX. Normal Value
X. Currency Conversion
XI. Recommendation

[FR Doc. 2020-22060 Filed 10-5-20; 8:45 am]
BILLING CODE 3510-DS-P