[Federal Register Volume 86, Number 36 (Thursday, February 25, 2021)]
[Notices]
[Pages 11497-11499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03903]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-907]
Ultra-High Molecular Weight Polyethylene From the Republic of
Korea: Final Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that ultra-
high molecular weight polyethylene (ultra-high polyethylene) from
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 January 1, 2019, through December 31, 2019. The
final dumping margins of sales at LTFV are listed in the ``Final
Determination'' section of this notice.
DATES: Applicable February 25, 2021.
FOR FURTHER INFORMATION CONTACT: Ian Hamilton or Peter Skarlatos, 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 or (202)
482-0324, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 6, 2020, Commerce published the Preliminary
Determination, in which we also postponed the final determination to
February 18, 2021.\1\ A summary of the events that occurred since
Commerce published the Preliminary Determination, as well as a full
discussion of the issues raised by parties for this final
determination, may be found in the Issues and Decision Memorandum,
which is hereby adopted by this notice.\2\
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\1\ See Ultra-High Molecular Weight Polyethylene from the
Republic of Korea: Preliminary Affirmative Determination of Sales at
Less Than Fair Value, 85 FR 63095 (October 6, 2020) (Preliminary
Determination).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Ultra-High Molecular Weight Polyethylene from the
Republic of Korea,'' dated concurrently with this notice (Issues and
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 the
investigation, see Appendix I.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues and Decision Memorandum.
A list of the issues raised is attached to this notice as Appendix II.
The Issues and 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 Issues and Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/index.html.
The signed and electronic versions of the Issues and Decision
Memorandum are identical in content.
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of an on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Tariff Act of
1930, as amended (the Act).\3\
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\3\ See Commerce's Letter, Antidumping Duty Investigation of
Ultra-High Molecular Weight Polyethylene from the Republic of Korea,
dated October 21, 2020; see also KPIC's Letter, ``Ultra-High
Molecular Weight Polyethylene from the Republic of Korea: Response
to Questionnaire Issued In Lieu of Verification,'' dated November 2,
2020.
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Changes Since the Preliminary Determination
Based on our analysis of both the comments received and the
information received in lieu of on-site verification, we made certain
changes to the margin calculations for KPIC. For a discussion of these
changes, see the ``Margin Calculation'' section of the Issues and
Decision Memorandum.
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated all-
others 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 or de
minimis margins, and margins determined entirely under section 776 of
the Act. Section 735(c)(5)(B) of the Act provides that if the estimated
weighted-average dumping margins for all individually investigated
exporters and producers are zero or de minimis or determined
[[Page 11498]]
entirely under section 776 of the Act, then Commerce may use any
reasonable method to establish the estimated all-others rate, including
averaging the estimated weighted-average dumping margins determined for
the individually investigated exporters and producers.
Commerce calculated an individual estimated weighted-average
dumping margin for KPIC, 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 KPIC is the margin assigned to all other
producers and exporters, pursuant to section 735(c)(5)(A) of the Act.
Final Determination
The final estimated weighted-average dumping margins are as
follows:
------------------------------------------------------------------------
Weighted-
average
Exporter/manufacturer margin
(percent)
------------------------------------------------------------------------
Korea Petrochemical Ind. Co., Ltd./KPIC Corporation......... 7.84
All Others.................................................. 7.84
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Disclosure
We intend to disclose the calculations performed within five days
of the date of publication of this notice to parties in this
proceeding, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
For this final determination, for entries made by KPIC and the
companies covered by the all-others rate, in accordance with section
735(c)(4)(A) of the Act, we will direct U.S. Customs and Border
Protection (CBP) to continue to suspend liquidation of all entries of
subject merchandise, as described in Appendix I of this notice, which
were entered, or withdrawn from warehouse, for consumption on or after
October 6, 2020, the date of publication of the Preliminary
Determination of this investigation in the Federal Register.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit for such
entries of merchandise equal to the estimated weighted-average dumping
margin 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 final 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. These suspension of liquidation
instructions will remain in effect until further notice.
International Trade Commission (ITC) Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of the final affirmative determination of sales at LTFV. We will
allow the ITC access to all privileged and business proprietary
information in our files, provided the ITC confirms that it will not
disclose such information, either publicly or under an administrative
protective order (APO), without the written consent of the Assistant
Secretary for Enforcement and Compliance. Because the final
determination in this proceeding is affirmative, in accordance with
section 735(b)(2) of the Act, the ITC will make its final determination
as to whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
ultra-high polyethylene from Korea no later than 45 days after our
final determination. If the ITC determines that such injury does not
exist, this proceeding will be terminated, and all cash deposits will
be refunded. If the ITC determines that such injury does exist,
Commerce will issue an antidumping duty order directing CBP to assess,
upon further instruction by Commerce, antidumping duties on all imports
of the subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
Notification Regarding Administrative Protective Orders
This notice serves as a reminder to parties subject to APO of their
responsibility concerning the disposition of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
notification of the return or destruction of APO materials, or
conversion to judicial protective order, is hereby requested. Failure
to comply with the regulations and the terms of an APO is a
sanctionable violation.
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act.
Dated: February 18, 2021.
Christian Marsh,
Acting 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 106 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 106 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 2,000 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 Issues and Decision
Memorandum
I. Summary
[[Page 11499]]
II. Background
III. Changes Since the Preliminary Determination
IV. Discussion of the Issues
Comment 1: Whether Commerce's Final Determination Should be
Provisional and Whether Commerce Provided Adequate Time for KPIC's
Response to the in-Lieu of On-Site Verification Questionnaire
Comment 2: KPIC's Home Market Freight Expense Adjustment
Comment 3: KPIC's Reported Product Codes and Product
Characteristics
Comment 4: Ministerial Errors in the Preliminary Determination
Comment 5: Whether the Record Demonstrates That KPIC Accurately
Reported its Actual Cost of Production (COP)
Comment 6: Whether Commerce Reasonably Adjusted KPIC's Ethylene
COP
V. Recommendation
[FR Doc. 2021-03903 Filed 2-24-21; 8:45 am]
BILLING CODE 3510-DS-P