[Federal Register Volume 87, Number 121 (Friday, June 24, 2022)]
[Notices]
[Pages 37825-37828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13561]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-912]


Acrylonitrile-Butadiene Rubber From the Republic of Korea: Final 
Affirmative Determination of Sales at Less Than Fair Value and Final 
Affirmative Determination of Critical Circumstances, in Part

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
acrylonitrile-butadiene rubber (AB rubber) 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 is April 1, 2020, 
through March 31, 2021.

DATES: Applicable June 24, 2022.

FOR FURTHER INFORMATION CONTACT: Melissa Porpotage, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401

[[Page 37826]]

Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
1413.

SUPPLEMENTARY INFORMATION: 

Background

    On February 2, 2022, Commerce published its Preliminary 
Determination.\1\ Commerce invited interested parties to comment on the 
Preliminary Determination.
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    \1\ See Acrylonitrile-Butadiene Rubber from the Republic of 
Korea: Preliminary Affirmative Determination of Sales at Less Than 
Fair Preliminary Affirmative Determination of Critical 
Circumstances, in Part, Postponement of Final Determination, and 
Extension of Provisional Measures, 87 FR 5796 (February 2, 2022) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum.
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    For a complete description of the events that followed the 
Preliminary Determination, see the Issues and Decision Memorandum.\2\ 
The Issues and Decision Memorandum is a public document and is 
available 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Antidumping Duty Investigation of 
Acrylonitrile-Butadiene Rubber from the Republic of Korea,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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Scope Comments

    On January 26, 2022, we issued the Preliminary Scope Decision 
Memorandum.\3\ Interested parties submitted case and rebuttal briefs 
concerning the scope of this investigation.\4\ For a summary of the 
product coverage comments and rebuttal responses submitted to the 
record of this investigation, and accompanying analysis of all comments 
timely received, see the Final Scope Memorandum.\5\ Based on the 
comments received from interested parties, we are revising the scope of 
this investigation as it appeared in the Preliminary Determination.\6\ 
The scope in the Appendix reflects these changes.
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    \3\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated January 26, 2022 (Preliminary Scope Decision Memorandum).
    \4\ See ARLANXEO Emulsion Rubber France S.A.S.'s Letter, ``Scope 
Brief,'' dated February 25, 2022; see also Zeon Chemicals L.P. and 
Zeon GP, LLC (collectively, the petitioner)'s Letter, ``Petitioner's 
Rebuttal Scope Brief,'' dated March 4, 2022.
    \5\ See Memorandum, ``Antidumping Duty Investigations of 
Acrylonitrile-Butadiene Rubber from France, the Republic of Korea, 
and Mexico: Final Scope Decision Memorandum,'' dated concurrently 
with, and hereby adopted by, this notice (Final Scope Memorandum).
    \6\ See Preliminary Determination, 87 FR at 5792. Specifically, 
we added language to the scope that clarified that AB rubber 
products that include a third component that is not methacrylic acid 
or isoprene are not covered by the scope. See Final Scope 
Memorandum.
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Scope of the Investigation

    The product covered by this investigation is AB rubber from Korea. 
For a complete description of the scope of this investigation, see 
Appendix I.

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).\7\
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    \7\ See Commerce's Letter, In Lieu of Verification 
Questionnaire, dated February 14, 2022; see also Kumho's Letter, 
``Response to the Verification Questionnaire,'' dated February 22, 
2022.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are discussed in the Issues and Decision Memorandum. 
A list of the issues raised in the Issues and Decision Memorandum is 
attached to this notice as Appendix II.

Methodology--Adverse Facts Available (AFA)

    For purposes of this final determination, we relied, in part, on 
facts available pursuant to section 776(a)(2)(A) of the Act. As 
discussed in the Issues and Decision Memorandum, because one 
respondent, LG Chemical, Ltd. (LG Chem), did not act to the best of its 
ability in responding to our requests for information, we drew adverse 
inferences, where appropriate, in selecting from among the facts 
otherwise available, pursuant to section 776(b) of the Act. LG Chem did 
not respond to Commerce's initial antidumping duty questionnaire and we 
have continued to use an adverse inference in the selection of facts 
available for determining the dumping rate for this company, pursuant 
to section 776(d) of the Act. For further information, see the section 
``Use of Adverse Facts Available'' in the accompanying Issues and 
Decision Memorandum.

Changes From the Preliminary Determination

    Based on our analysis of the comments received, we made certain 
changes to the margin calculation for Kumho Petrochemical Co., Ltd. 
(Kumho) since the Preliminary Determination. See the Issues and 
Decision Memorandum for a discussion of these changes.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
not individually investigated shall be equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated excluding rates that 
are zero, de minimis, or determined entirely under section 776 of the 
Act. In this investigation, Commerce assigned an estimated weighted-
average dumping margin based entirely on facts available, i.e., under 
section 776 of the Act, to LG Chem. Therefore, the only estimated 
weighted-average dumping margin that is not zero, de minimis, or based 
entirely on facts otherwise available is the margin calculated for 
Kumho. Thus, the estimated weighted-average dumping margin calculated 
for Kumho is the margin assigned to all other producers and exporters, 
pursuant to section 735(c)(5)(A) of the Act.

Final Determination of Critical Circumstances, in Part

    For the Preliminary Determination, in accordance with section 
733(e) of the Act and 19 CFR 351.206, Commerce found that critical 
circumstances exist, in part, with respect to imports of AB rubber from 
Korea. Our final determination remains unchanged. Accordingly, pursuant 
to section 735(a)(3) of the Act and 19 CFR 351.206, we continue to find 
that critical circumstances exist for LG Chem and companies covered by 
the ``all others'' rate, but do not exist for Kumho.

Final Determination

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
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Kumho Petrochemical Co., Ltd................................       18.80
LG Chemical, Ltd............................................       35.31
All Others..................................................       18.80
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[[Page 37827]]

Disclosure

    Commerce intends to disclose its calculations performed in this 
final 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).

Continuation of Suspension of Liquidation

    Consistent with the Preliminary Determination, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue the 
suspension of liquidation of all entries of subject merchandise, as 
described in Appendix I, entered, or withdrawn from warehouse, for 
consumption on or after February 2, 2022, the date of publication in 
the Federal Register of the affirmative Preliminary Determination. 
Further, in accordance with section 733(e)(2)(A) of the Act, Commerce 
will instruct CBP to continue the suspension of liquidation of entries 
of subject merchandise, as described in Appendix I, produced and/or 
exported by LG Chem or companies covered by the all-others rate which 
entered, or were withdrawn from warehouse, for consumption on or after 
November 4, 2021, which is 90 days before the date of publication in 
the Federal Register of the affirmative Preliminary Determination.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), upon the publication of this notice, we will instruct CBP 
to require a cash deposit for such entries of merchandise equal to the 
following: (1) the cash deposit rate for the respondents listed in the 
table above will be equal to the company-specific estimated weighted-
average dumping margin determined in this final 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 listed in the table above. These 
suspension of liquidation instructions will remain in effect until 
further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of our 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 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 Commerce's final determination in this investigation 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 subject merchandise 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 posted 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 February 
2, 2022, effective date of the suspension of liquidation.

Notification Regarding Administrative Protective Order

    This notice serves as a reminder to the parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
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 terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: June 17, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The product covered by this investigation is commonly referred 
to as acrylonitrile butadiene rubber or nitrile rubber (AB Rubber). 
AB Rubber is a synthetic rubber produced by the emulsion 
polymerization of butadiene and acrylonitrile with or without the 
incorporation of a third component selected from methacrylic acid or 
isoprene. AB Rubber products that include a third component that is 
not methacrylic acid or isoprene are not covered by the scope. This 
scope covers AB Rubber in solid or non-aqueous liquid form. The 
scope also includes carboxylated AB Rubber.
    Excluded from the scope of this investigation is AB Rubber in 
latex form (commonly classified under Harmonized Tariff Schedule of 
the United States (HTSUS) subheading 4002.51.0000). Latex AB Rubber 
is commonly either (a) acrylonitrile/butadiene polymer in latex form 
or (b) acrylonitrile/butadiene/methacrylic acid polymer in latex 
form. The broader definition of latex refers to a water emulsion of 
a synthetic rubber obtained by polymerization.
    Also excluded from the scope of this investigation is: (a) AB 
Rubber containing additives incorporated during the compounding, 
mixing, molding, or use of AB Rubber comprising greater than twenty 
percent of the total weight of the product. Additives would include, 
but are not limited to, fillers (e.g., carbon black, silica, clay); 
reinforcement agents (e.g., fibers, carbon black, silica); 
vulcanization agents (e.g., sulfur, sulfur complexes, peroxide); or 
AB Rubber containing extension oils making up greater than forty 
percent of the total weight of the product. Such products would be 
generally classified under HTSUS subheading 4005; (b) AB Rubber 
containing polyvinyl chloride (PVC) making up greater than twenty 
percent of total weight of the product; (c) hydrogenated AB Rubber 
(commonly referred to as HNBR) produced by subsequent dissolution 
and hydrogenation of AB Rubber; (d) reactive liquid polymers 
containing acrylonitrile and butadiene with amine, epoxy, carboxyl 
or methacrylate vinyl chemical functionality.
    Subject merchandise includes material matching the above 
description that has been finished, packaged, or otherwise processed 
in a third country, including by modifying physical form or 
packaging with another product, or performing any other finishing, 
packaging, or processing that would not otherwise remove the 
merchandise from the scope of the investigation if performed in the 
country of manufacture of the AB Rubber.
    The merchandise subject to this investigation is classified in 
the HTSUS at subheading 4002.59.0000. While the HTSUS subheading 
numbers are provided for convenience and customs purposes, the 
written description of the merchandise under investigation is 
dispositive.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Use of Adverse Facts Available
IV. Changes Since the Preliminary Determination
V. Discussion of the Issues
    Comment 1: Reclassification of Fumigation Expenses
    Comment 2: Market Rate for Affiliated Input Purchases from Hanju 
Co. Ltd. (Hanju)
    Comment 3: Short-Term Interest Income Offset

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VI. Recommendation

[FR Doc. 2022-13561 Filed 6-23-22; 8:45 am]
BILLING CODE 3510-DS-P