[Federal Register Volume 87, Number 221 (Thursday, November 17, 2022)]
[Notices]
[Pages 69002-69004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25050]



[[Page 69002]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-835]


Emulsion Styrene-Butadiene Rubber From the Russian Federation: 
Final Affirmative Determination of Sales at Less Than Fair Value and 
Classification of the Russian Federation as a Non-Market Economy

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
imports of emulsion styrene-butadiene rubber (ESBR) from the Russian 
Federation (Russia) are being, or are likely to be, sold in the United 
States at less than fair value (LTFV) for the period of investigation 
(POI) October 1, 2020, through September 30, 2021. Commerce has also 
reconsidered Russia's market economy status and has determined to treat 
Russia as a non-market economy in forthcoming proceedings.

DATES: Applicable November 17, 2022.

FOR FURTHER INFORMATION CONTACT: Caitlin Monks or Zachary Le Vene, AD/
CVD Operations, Office VII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2670 or (202) 
482-0056, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 27, 2022, Commerce published in the Federal Register the 
preliminary affirmative determination in the LTFV investigation of ESBR 
from Russia, in which it also postponed the final determination until 
November 9, 2022.\1\ We invited interested parties to comment on the 
Preliminary Determination. A summary of the events that occurred since 
Commerce published the Preliminary Determination may be found in the 
Issues and Decision Memorandum.\2\
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    \1\ See Emulsion Styrene-Butadiene Rubber from the Russian 
Federation: Preliminary Affirmative Determination of Sales at Less 
Than Fair Value, Postponement of Final Determination and Extension 
of Provisional Measures, 87 FR 38057 (June 27, 2022) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Decision Memorandum for the Final 
Determination in the Less-Than-Fair-Value Investigation of Emulsion 
Styrene-Butadiene Rubber from the Russian Federation, and 
Classification of the Russian Federation as a Non-Market Economy'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum).
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Scope of the Investigation

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

Analysis of Comments Received

    All the issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of the issues addressed in the Issues 
and Decision Memorandum 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.

Verification

    Commerce conducted verification of the information relied upon in 
making its final determination in this investigation with respect to 
Public Joint Stock Company SIBUR Holding, Joint Stock Company 
Voronezhsintezkauchuk, SIBUR LLC, and SIBUR International GmbH 
(collectively, SIBUR) in Vienna, Austria,\3\ as well as Public Joint 
Stock Company TATNEFT, LLC TATNEFT-AZS Center, LLC Togliattikauchuk 
(alternatively, LLC Tolyattikauchuk), and Tolyattisintez (collectively, 
TATNEFT) in Zug, Switzerland, in accordance with section 782(i) of the 
Tariff Act of 1930, as amended (the Act).\4\ Specifically, Commerce 
conducted on-site verifications of the home market, U.S. sales, and 
cost of production responses submitted by SIBUR and TATNEFT.
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    \3\ See Memoranda, ``Less-Than-Fair-Value Investigation of 
Emulsion Styrene-Butadiene Rubber from the Russian Federation: 
Verification of Sales Responses of SIBUR,'' dated October 5, 2022; 
and ``Verification of the Cost Responses of PJSC SIBUR Holding and 
JSC Voronezhsintezkauchuk in the Antidumping Duty Investigation of 
Emulsion Styrene-Butadiene Rubber from the Russian Federation,'' 
dated September 23, 2022.
    \4\ See Memoranda, ``Less-Than-Fair-Value Investigation of 
Emulsion Styrene-Butadiene Rubber from the Russian Federation: 
Verification of Sales Responses of SIBUR,'' dated October 5, 2022; 
``Verification of the Cost Responses of PJSC SIBUR Holding and JSC 
Voronezhsintezkauchuk in the Antidumping Duty Investigation of 
Emulsion Styrene-Butadiene Rubber from the Russian Federation,'' 
dated September 23, 2022; and ``Verification of the Sales Response 
of TATNEFT in the Antidumping Investigation of Emulsion Styrene-
Butadiene Rubber from the Russian Federation,'' dated September 30, 
2022; and ``Verification of the Cost Response of PJSC TATNEFT and 
LLC Tolyattikauchuk in the Antidumping Duty Investigation of 
Emulsion Styrene-Butadiene Rubber from Russia,'' dated October 6, 
2022.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received, we have made 
certain changes to the margin calculations for SIBUR and TATNEFT. For a 
discussion of these changes, see the Issues and Decision Memorandum.

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 (i.e., facts otherwise available).
    Commerce calculated individual estimated weighted-average dumping 
margins for both SIBUR and TATNEFT, the two respondents selected for 
individual examination in this investigation, that are not zero, de 
minimis, or based entirely on facts otherwise available. Commerce 
calculated the all-others rate using a weighted average of the 
estimated weighted-average dumping margins calculated for the 
individually examined respondents using the publicly ranged total 
values of each respondent's sales of the merchandise under 
consideration to the United States during the POI.\5\
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    \5\ With two respondents under examination, Commerce normally 
calculates: (A) a weighted-average of the estimated weighted-average 
dumping margins calculated for the examined respondents; (B) a 
simple average of the estimated weighted-average dumping margins 
calculated for the examined respondents; and (C) a weighted-average 
of the estimated weighted-average dumping margins calculated for the 
examined respondents using each company's publicly-ranged U.S. sale 
values for the merchandise under consideration. Commerce then 
compares (B) and (C) to (A) and selects the rate closest to (A) as 
the most appropriate rate for all other producers and exporters. See 
Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, 
and the United Kingdom: Final Results of Antidumping Duty 
Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). For a complete analysis of the data, see 
Memorandum, ``Final Determination Calculation for All-Others,'' 
dated concurrently with this notice.

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[[Page 69003]]

Final Determination

    The final estimated weighted-average dumping margins are as 
follows:
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    \6\ Commerce determines that Public Joint Stock Company SIBUR 
Holding (SIBUR Holding)/SIBUR International GmbH (SIBUR 
International)/SIBUR LLC/Joint Stock Company Voronezhsintezkauchuk 
(VSK) are a single entity. See Issues and Decision Memorandum; see 
also Memorandum, ``SIBUR Affiliation and Single Entity Memorandum,'' 
dated June 14, 2022; and Memorandum, ``SIBUR Final Analysis 
Memorandum,'' dated concurrently with this notice.
    \7\ Commerce determines that Public Joint Stock Company TATNEF,T 
LLC TATNEFT-AZS Center/LLC Togliattikauchuk/and Tolyattisintez are a 
single entity. See Issues and Decision Memorandum; see also 
Memorandum, ``TATNEFT Affiliation and Single Entity Memorandum,'' 
dated June 14, 2022.

------------------------------------------------------------------------
                                                      Estimated weighted-
                  Exporter/producer                     average dumping
                                                       margin (percent)
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Public Joint Stock Company SIBUR Holding/Joint Stock               17.47
 Company Voronezhsintezkauchuk/SIBUR International
 GmbH/SIBUR LLC \6\.................................
Public Joint Stock Company TATNEFT/LLC TATNEFT-AZS                  8.15
 Center/LLC Togliattikauchuk/Tolyattisintez \7\.....
All Others..........................................               11.90
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Russia's Market Economy Status

    For this final determination, Commerce has reconsidered Russia's 
market economy status and has determined to treat Russia as a non-
market economy in forthcoming proceedings. Because this determination 
applies to future proceedings, Commerce has relied on its market 
economy methodology in determining the antidumping duty margins for 
this final determination. A detailed explanation for this determination 
along with discussion of all comments and factual information submitted 
concerning this determination can be found in the decision memorandum, 
``Reconsideration of Russia's Status as a Market Economy,'' issued 
concurrently with this memorandum.
    For new segments of antidumping duty proceedings with a POI or 
period of review (POR) starting after November 1, 2022, Commerce will 
use its non-market economy methodology to calculate the antidumping 
duty rates. If the POI or POR falls entirely before November 1, 2022, 
Commerce will use its market economy methodology to calculate the 
rates. Finally, if the POI or POR straddles the time periods where 
Commerce considered Russia to be a market and non-market economy 
country, Commerce will determine the appropriate approach to follow on 
a case-by-case basis.

Disclosure

    We intend to disclose the calculations and analysis performed to 
interested parties in this final determination within five days of 
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

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend the liquidation of all appropriate entries of subject 
merchandise, as described in Appendix I of this notice, entered, or 
withdrawn from warehouse, for consumption on or after June 27, 2022, 
the date of publication in the Federal Register of the affirmative 
Preliminary Determination. These suspension of liquidation instructions 
will remain in effect until further notice.
    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 
estimated antidumping duties for such entries as follows: (1) the cash 
deposit rate for the companies listed above will be equal to the 
company-specific estimated weighted-average dumping margins determined 
in this final determination; (2) if the exporter is not a company 
identified above, but the producer is identified above, 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.

U.S. International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
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 or sales (or the likelihood of 
sales) for importation of ESBR no later than 45 days after this 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 and suspension of liquidation will be lifted. 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.

Administrative Protective Order

    This notice will serve as a final 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 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.

Notification to Interested Parties

    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act, and 19 CFR 
351.210(c).


[[Page 69004]]


    Dated: November 9, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The products covered by this investigation are cold-polymerized 
emulsion styrene-butadiene rubber (ESB rubber). The scope of the 
investigation includes, but is not limited to, ESB rubber in primary 
forms, bales, granules, crumbs, pellets, powders, plates, sheets, 
strip, etc. ESB rubber consists of non-pigmented rubbers and oil-
extended non-pigmented rubbers, both of which contain at least one 
percent of organic acids from the emulsion polymerization process.
    ESB rubber is produced and sold in accordance with a generally 
accepted set of product specifications issued by the International 
Institute of Synthetic Rubber Producers (IISRP). The scope of the 
investigation covers grades of ESB rubber included in the IISRP 1500 
and 1700 series of synthetic rubbers. The 1500 grades are light in 
color and are often described as ``Clear'' or ``White Rubber.'' The 
1700 grades are oil-extended and thus darker in color, and are often 
called ``Brown Rubber.''
    Specifically excluded from the scope of this investigation are 
products which are manufactured by blending ESB rubber with other 
polymers, high styrene resin master batch, carbon black master batch 
(i.e., IISRP 1600 series and 1800 series) and latex (an intermediate 
product).
    The products subject to this investigation are currently 
classifiable under subheadings 4002.19.0015 and 4002.19.0019 of the 
Harmonized Tariff Schedule of the United States (HTSUS). ESB rubber 
is described by Chemical Abstracts Services (CAS) Registry No. 9003-
55-8. This CAS number also refers to other types of styrene 
butadiene rubber. Although the HTSUS subheadings and CAS registry 
number 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 Issues and Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Russia's Market Economy Status
VI. Changes Since the Preliminary Determination
VII. Use of Facts Available, and Adverse Inferences
VIII. Final Determinations of Affiliation and Single Entity 
Treatment
IX. Discussion of the Issues
    Comment 1: How to Treat SIBUR's Sales of Expired ESBR and Sales 
Without Production Date Data Found at Verification
    Comment 2: SIBUR's Inventory Carrying Costs and Total Sales 
Quantity and Value (Q&V) Reconciliation
    Comment 3: Whether to Apply Total Adverse Facts Available (AFA) 
to SIBUR
    Comment 4: How to Treat SIBUR's Affiliated Party Transactions
    Comment 5: SIBUR's Cost Verification Adjustments
    Comment 6: SIBUR's and TATNEFT's Payment Dates and Credit 
Expenses
    Comment 7: TATNEFT's U.S. Sales Destinations
    Comment 8: TATNEFT's General and Administrative (G&A) and 
Financial Expense--Packing Cost
    Comment 9: TATNEFT and TTK's G&A Expense Rate--Other Income and 
Expenses
X. Recommendation

[FR Doc. 2022-25050 Filed 11-16-22; 8:45 am]
BILLING CODE 3510-DS-P