[Federal Register Volume 89, Number 83 (Monday, April 29, 2024)]
[Notices]
[Pages 33324-33330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09161]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-166, A-533-926, A-580-919, A-583-876, A-549-850]


Certain Epoxy Resins From the People's Republic of China, India, 
the Republic of Korea, Taiwan, and Thailand: Initiation of Less-Than-
Fair-Value Investigations

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


DATES: Applicable April 23, 2024.

FOR FURTHER INFORMATION CONTACT: Jacob Waddell or Mark Flessner (the 
People's Republic of China (China)) at (202) 482-1369 or (202) 482-
6312, respectively; Amaris Wade (India) at (202) 482-6334; Laura 
Delgado (the Republic of Korea (Korea)) at (202) 482-1468; Benito 
Ballesteros (Taiwan) at (202) 482-7425; and Rachel Jennings (Thailand) 
at (202) 482-1110, AD/CVD Operations, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petitions

    On April 3, 2024, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) petitions concerning imports of certain 
epoxy resins (epoxy resins) from China, India, Korea, Taiwan, and 
Thailand filed in proper form on behalf of the U.S. Epoxy Resin 
Producers Ad Hoc Coalition (the petitioner).\1\ These AD Petitions were 
accompanied by countervailing duty (CVD) petitions concerning imports 
of epoxy resins from China, India, Korea, and Taiwan.\2\
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    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties,'' dated April 3, 2024 (the 
Petitions). The members of the U.S. Epoxy Resin Producers Ad Hoc 
Coalition are Olin Corporation and Westlake Corporation.
    \2\ Id.
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    Between April 8 and 16, 2024, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions in 
supplemental questionnaires.\3\ The petitioner responded to Commerce's 
supplemental questionnaires between April 10 and 18, 2024.\4\
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    \3\ See Commerce's Letters, ``Supplemental Questions,'' dated 
April 8, 2024 (General Issues Questionnaire), and ``Supplemental 
Questions,'' dated April 8, 2024 (China Supplemental); see also 
Country-Specific Supplemental Questionnaires: India Supplemental, 
Korea Supplemental, Taiwan Supplemental, and Thailand Supplemental, 
dated April 9, 2024; and Memorandum, ``Phone Call with Counsel to 
Petitioner,'' dated April 16, 2024 (April 16 Memorandum).
    \4\ See Petitioner's Letters, ``Petitioner's Response to Volume 
II Supplemental Questionnaire (China Antidumping),'' dated April 10, 
2024, and ``Petitioner's Response to Volume I Supplemental 
Questionnaire,'' dated April 12, 2024 (First General Issues 
Supplement); see also Country-Specific AD Supplemental Responses: 
India AD Supplement, Korea AD Supplement, Taiwan AD Supplement, and 
Thailand AD Supplement, dated April 15, 2024; Petitioner's Letter, 
``Petitioner's Response to Second General Issues Supplemental 
Questionnaire,'' dated April 18, 2024 (Second General Issues 
Supplement); and Country-Specific AD Supplemental Responses: Second 
China AD Supplement, Second India AD Supplement, Second Korea AD 
Supplement, Second Taiwan AD Supplement, and Second Thailand AD 
Supplement, dated April 18, 2024.
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of epoxy resins 
from China, India, Korea, Taiwan, and Thailand are being, or are likely 
to be, sold in the United States at less than fair value (LTFV) within 
the meaning of section 731 of the Act, and that imports of such 
products are materially injuring, or threatening material injury to, 
the epoxy resins industry in the United States. Consistent with section 
732(b)(1) of the Act, the Petitions were accompanied by information 
reasonably available to the petitioner supporting its allegations.
    Commerce finds that the petitioner filed the Petitions on behalf of 
the domestic industry, because the petitioner is an interested party, 
as defined in section 771(9)(F) of the Act.\5\ Commerce also finds that 
the petitioner demonstrated sufficient industry support for the 
initiation of the requested LTFV investigations.\6\
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    \5\ The members of the petitioning coalition are interested 
parties under section 771(9)(C) of the Act.
    \6\ See section on ``Determination of Industry Support for the 
Petitions,'' infra.
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Periods of Investigation

    Because the Petitions were filed on April 3, 2024, pursuant to 19 
CFR 351.204(b)(1), the period of investigation (POI) for the India, 
Korea, Taiwan, and Thailand LTFV investigations is April 1, 2023, 
through March 31, 2024. Because China is a non-market economy (NME) 
country, pursuant to 19 CFR 351.204(b)(1), the POI for the China LTFV 
investigation is October 1, 2023, through March 31, 2024.

Scope of the Investigations

    The products covered by these investigations are epoxy resins from 
China, India, Korea, Taiwan, and Thailand. For a full description of 
the scope of these investigations, see the appendix to this notice.

Comments on the Scope of the Investigations

    On April 8 and 16, 2024, Commerce requested information and 
clarification from the petitioner regarding the proposed scope to 
ensure that the scope language in the Petitions is an accurate 
reflection of the products for which the domestic industry is seeking 
relief.\7\ On April 12 and 18, 2024, the petitioner provided 
clarifications and revised the scope.\8\ The description of merchandise 
covered by these investigations, as described in the appendix to this 
notice, reflects these clarifications.
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    \7\ See General Issues Questionnaire; see also April 16 
Memorandum.
    \8\ See First General Issues Supplement at 3-10 and Exhibit I-
S4; see also Second General Issues Supplement at 2-3 and Exhibit I-
SS1.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage

[[Page 33325]]

(i.e., scope).\9\ Commerce will consider all scope comments received 
from interested parties and, if necessary, will consult with interested 
parties prior to the issuance of the preliminary determinations. If 
scope comments include factual information,\10\ all such factual 
information should be limited to public information. To facilitate 
preparation of its questionnaires, Commerce requests that scope 
comments be submitted by 5:00 p.m. Eastern Time (ET) on May 13, 2024, 
which is 20 calendar days from the signature date of this notice.\11\ 
Any rebuttal comments, which may include factual information, and 
should also be limited to public information, must be filed by 5:00 
p.m. ET on May 23, 2024, which is 10 calendar days from the initial 
comment deadline.
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    \9\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR 
351.312.
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \11\ See 19 CFR 351.303(b)(1).
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    Commerce requests that any factual information that parties 
consider relevant to the scope of these investigations be submitted 
during that period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigations may be relevant, the party must contact Commerce and 
request permission to submit the additional information. All scope 
comments must be filed simultaneously on the records of the concurrent 
LTFV and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\12\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
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    \12\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance: Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at https://access.trade.gov/help.aspx and a handbook 
can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
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Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of epoxy resins to be 
reported in response to Commerce's AD questionnaires. This information 
will be used to identify the key physical characteristics of the 
subject merchandise in order to report the relevant factors of 
production (FOP) or cost of production (COP) accurately, as well as to 
develop appropriate product comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) general product 
characteristics; and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe epoxy resins, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, Commerce attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on May 13, 2024, 
which is 20 calendar days from the signature date of this notice.\13\ 
Any rebuttal comments must be filed by 5:00 p.m. ET on May 23, 2024, 
which is 10 calendar days from the initial comment deadline. All 
comments and submissions to Commerce must be filed electronically using 
ACCESS, as explained above, on the record of each of the LTFV 
investigations.
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    \13\ See 19 CFR 351.303(b)(1).
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Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The U.S. International Trade Commission (ITC), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC apply the same statutory definition regarding the domestic like 
product,\14\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\15\
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    \14\ See section 771(10) of the Act.
    \15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United 
States, 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\16\ Based on our analysis of the information 
submitted on the record, we have determined that epoxy

[[Page 33326]]

resins, as defined in the scope, constitute a single domestic like 
product, and we have analyzed industry support in terms of that 
domestic like product.\17\
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    \16\ See Petitions at Volume I at 17-21 and Exhibits I-18 
through I-23; see also First General Issues Supplement at 12-15 and 
Exhibit I-S6; and Second General Issues Supplement at 8.
    \17\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Checklists, ``Antidumping Duty Investigation Initiation 
Checklists: Certain Epoxy Resins from the People's Republic of 
China, India, the Republic of Korea, Taiwan, and Thailand,'' dated 
concurrently with, and hereby adopted by, this notice (Country-
Specific AD Initiation Checklists), at Attachment II, Analysis of 
Industry Support for the Antidumping and Countervailing Duty 
Petitions Covering Certain Epoxy Resins from the People's Republic 
of China, India, the Republic of Korea, Taiwan, and Thailand 
(Attachment II). These checklists are on file electronically via 
ACCESS.
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    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
members' production data of the domestic like product in 2023 and 
compared this to total production of the domestic like product by the 
U.S. epoxy resins industry.\18\ We have relied on the data provided by 
the petitioner for purposes of measuring industry support.\19\
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    \18\ See Petitions at Volume I (pages 6-7 and Exhibit I-5; see 
also First General Issues Supplement at 10-12 and Exhibits I-S2 and 
I-S5; and Second General Issues Supplement at 3-8 and Exhibits I-
SS2--I-SS5.
    \19\ See Petitions at Volume I (pages 6-7 and Exhibit I-5); see 
also First General Issues Supplement at 10-12 and Exhibits I-S2 and 
I-S5; and Second General Issues Supplement at 3-8 and Exhibits I-SS2 
through I-SS5. For further discussion, see Attachment II of the 
Country-Specific AD Initiation Checklists.
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    Our review of the data provided in the Petitions, the First General 
Issues Supplement, the Second General Issues Supplement, and other 
information readily available to Commerce indicates that the petitioner 
has established industry support for the Petitions.\20\ First, the 
Petitions established support from domestic producers (or workers) 
accounting for more than 50 percent of the total production of the 
domestic like product and, as such, Commerce is not required to take 
further action in order to evaluate industry support (e.g., 
polling).\21\ Second, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 732(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
Petitions account for at least 25 percent of the total production of 
the domestic like product.\22\ Finally, the domestic producers (or 
workers) have met the statutory criteria for industry support under 
section 732(c)(4)(A)(ii) of the Act because the domestic producers (or 
workers) who support the Petitions account for more than 50 percent of 
the production of the domestic like product produced by that portion of 
the industry expressing support for, or opposition to, the 
Petitions.\23\ Accordingly, Commerce determines that the Petitions were 
filed on behalf of the domestic industry within the meaning of section 
732(b)(1) of the Act.\24\
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    \20\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \21\ Id.; see also section 732(c)(4)(D) of the Act.
    \22\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \23\ Id.
    \24\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner argues that 
subject imports from Korea, Taiwan, and Thailand exceed the 
negligibility threshold provided for under section 771(24)(A) of the 
Act.\25\
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    \25\ See Petitions at Volume I (page 22 and Exhibit I-7).
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    With regard to China, while the allegedly dumped imports do not 
exceed the statutory requirements for negligibility,\26\ the petitioner 
alleges and provides supporting evidence that: (1) a significant 
portion of the imported epoxy resins entering from Canada into the U.S. 
market are produced in China, and once the transshipment issue is 
corrected, imports from China are not negligible; \27\ and (2) there is 
the potential that imports from China will imminently exceed the 
negligibility threshold and, therefore, are not negligible for purposes 
of a threat determination.\28\ With regard to India, while the 
allegedly dumped imports do not exceed the statutory requirements for 
negligibility,\29\ the petitioner alleges and provides supporting 
evidence that there is the potential that imports from India will 
imminently exceed the negligibility threshold and, therefore, are not 
negligible for purposes of a threat determination.\30\ The petitioner's 
arguments regarding the potential for imports from India and China to 
imminently exceed the negligibility threshold are consistent with the 
statutory criteria for ``negligibility in threat analysis'' under 
section 771(24)(A)(iv) of the Act, which provides that imports shall 
not be treated as negligible if there is a potential that subject 
imports from a country will imminently exceed the statutory 
requirements for negligibility.
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    \26\ Id. at 23-24 and Exhibits I-7, I-14, I-24, and I-25.
    \27\ Id. at 23-25 and Exhibits I-7, I-14, I-24, and I-25.
    \28\ Id. at 23 and Exhibit I-31; see also First General Issues 
Supplement at 15-17 and I-S7.
    \29\ See Petitions at Volume I (page 25-26 and Exhibit I-24).
    \30\ Id. at 25-26.
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    The petitioner contends that the industry's injured condition is 
illustrated by the significant volume of subject imports; reduced 
market share; underselling and price depression and/or suppression; 
lost sales and revenues; and adverse impact on U.S. shipments, 
production, capacity utilization, and financial performance.\31\ We 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, causation, as well as negligibility, 
and we have determined that these allegations are properly supported by 
adequate evidence, and meet the statutory requirements for 
initiation.\32\
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    \31\ Id. at 22-46 and Exhibits I-4 through I-7, I-14, I-16, I-
22, I-24 through I-26, and I-28 through I-31; see also First General 
Issues Supplement at 17 and Exhibit I-S8; and Second General Issues 
Supplement at 8 and Exhibit I-SS6.
    \32\ See Country-Specific AD Initiation Checklists at Attachment 
III, Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Certain Epoxy Resins from the People's Republic of China, 
India, the Republic of Korea, Taiwan, and Thailand.
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Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate LTFV investigations 
of imports of epoxy resins from China, India, Korea, Taiwan, and 
Thailand. The sources of data for the deductions and adjustments 
relating to U.S. price and normal value (NV) are discussed in greater 
detail in the Country-Specific AD Initiation Checklists.

U.S. Price

    For China, Korea, Taiwan, and Thailand, the petitioner based export 
price (EP) on pricing information for sales, or offers for sale, of 
epoxy resins produced in and exported from each country.\33\ For 
Thailand, the petitioner also based EP on transaction-specific average 
unit values (AUVs) (i.e., month- and port-specific AUVs) derived from 
official import statistics and tied to ship manifest data.\34\ For 
India, the petitioner based EP on transaction-specific AUVs (i.e., 
month- and port-specific AUVs)

[[Page 33327]]

derived from official import statistics and tied to ship manifest 
data.\35\ For each country, the petitioner made certain adjustments to 
U.S. price to calculate a net ex-factory U.S. price, where 
applicable.\36\
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    \33\ See Country-Specific AD Initiation Checklists.
    \34\ See Thailand AD Initiation Checklist.
    \35\ See India AD Initiation Checklist.
    \36\ See Country-Specific AD Initiation Checklists.
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Normal Value 37
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    \37\ In accordance with section 773(b)(2) of the Act, for the 
India, Korea, Taiwan, and Thailand investigations, Commerce will 
request information necessary to calculate the constructed value 
(CV) and COP to determine whether there are reasonable grounds to 
believe or suspect that sales of the foreign like product have been 
made at prices that represent less than the COP of the product.
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    For Thailand, the petitioner based NV on home market pricing 
information it obtained for epoxy resins produced in and sold, or 
offered for sale, in Thailand during the applicable time period.\38\ 
The petitioner provided information indicating that the prices for 
epoxy resins sold or offered for sale in Thailand were below the COP. 
Therefore, for Thailand, the petitioner based NV on constructed 
value.\39\ For India, Korea, and Taiwan, the petitioner stated that it 
was unable to obtain home market or third country pricing information 
for epoxy resins to use as a basis for NV.\40\ Therefore, for India, 
Korea, and Taiwan, the petitioner calculated NV based on CV.\41\ For 
further discussion of CV for India, Korea, Taiwan, and Thailand, see 
the section ``Normal Value Based on Constructed Value,'' below.
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    \38\ See Thailand AD Initiation Checklist.
    \39\ Id.
    \40\ See Country-Specific AD Initiation Checklists.
    \41\ Id.
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    Commerce considers China to be an NME country.\42\ In accordance 
with section 771(18)(C)(i) of the Act, any determination that a foreign 
country is an NME country shall remain in effect until revoked by 
Commerce. Therefore, we continue to treat China as an NME country for 
purposes of the initiation of the China LTFV investigation. 
Accordingly, we base NV on FOPs valued in a surrogate market economy 
country in accordance with section 773(c) of the Act.
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    \42\ See, e.g., Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value and Preliminary 
Affirmative Determination of Critical Circumstances, 88 FR 15372 
(March 13, 2023), and accompanying Preliminary Decision Memorandum 
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Final Affirmative Determination 
of Sales at Less-Than-Fair Value and Final Affirmative Determination 
of Critical Circumstances, 88 FR 34485 (May 30, 2023).
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    The petitioner claims that Malaysia is an appropriate surrogate 
country for China because it is a market economy that is at a level of 
economic development comparable to that of China and is a significant 
producer of comparable merchandise.\43\ The petitioner provided 
publicly available information from Malaysia to value all FOPs except 
labor.\44\ Consistent with Commerce's recent practice in cases 
involving Malaysia as a surrogate country,\45\ to value labor, the 
petitioner provided labor statistics from another surrogate country, 
Romania.\46\ Based on the information provided by the petitioner, we 
believe it is appropriate to use Malaysia as a surrogate country for 
China to value all FOPs except labor and to value labor using labor 
statistics from Romania for initiation purposes.
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    \43\ See China AD Initiation Checklist.
    \44\ Id.
    \45\ See, e.g., Certain Collated Steel Staples from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review; and Final Determination of No Shipments; 2021-2022, 88 FR 
85242 (December 7, 2023), and accompanying Issues and Decision 
Memorandum (IDM) at Comment 2; and Light-Walled Rectangular Pipe and 
Tube from the People's Republic of China: Final Results of 
Antidumping Duty Administrative Review, 88 FR 15671 (March 14, 
2023), and accompanying IDM at Comment 2.
    \46\ See China AD Initiation Checklist.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Because information regarding the volume of inputs consumed by 
Chinese producers/exporters was not reasonably available, the 
petitioner used product-specific consumption rates from a U.S. producer 
of epoxy resins as a surrogate to value Chinese manufacturers' FOPs 
(except labor).\47\ Additionally, the petitioner calculated factory 
overhead, selling, general, and administrative (SG&A) expenses, and 
profit based on the experience of a Malaysian producer of identical 
merchandise.\48\
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    \47\ Id.
    \48\ Id. As noted above, the petitioner calculated labor using 
information specific to Romania.
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Normal Value Based on Constructed Value

    As noted above for Thailand, the petitioner provided information 
indicating that the prices for epoxy resins sold or offered for sale in 
Thailand were below the COP. Also as noted above, for India, Korea, and 
Taiwan, the petitioner stated that it was unable to obtain home market 
or third-country prices for epoxy resins to use as a basis for NV. 
Therefore, for India, Korea, Taiwan, and Thailand, the petitioner 
calculated NV based on CV.\49\
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    \49\ See Country-Specific AD Initiation Checklists.
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    Pursuant to section 773(e) of the Act, the petitioner calculated CV 
as the sum of the cost of manufacturing, SG&A expenses, financial 
expenses, and profit.\50\ For India, Korea, Taiwan, and Thailand, in 
calculating the cost of manufacturing, the petitioner relied on the 
production experience and input consumption rates of a U.S. producer of 
epoxy resins, valued using publicly available information applicable to 
the respective countries, where applicable.\51\ In calculating SG&A 
expenses, financial expenses, and profit ratios, the petitioner relied 
on the fiscal year 2022-2023 financial statements of producers of 
identical merchandise domiciled in India, Korea, Taiwan, and Thailand, 
respectively.\52\
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    \50\ Id.
    \51\ Id.
    \52\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of epoxy resins from China, India, Korea, Taiwan, 
and Thailand are being, or are likely to be, sold in the United States 
at LTFV. Based on comparisons of EP to NV in accordance with sections 
772 and 773 of the Act, the estimated dumping margins for epoxy resins 
for each of the countries covered by this initiation are as follows: 
(1) China--266.37 to 354.99 percent; (2) India--9.92 to 15.68 percent; 
(3) Korea--35.29 to 57.38 percent; (4) Taiwan--91.15 to 139.29 percent; 
and (5) Thailand--143.73 to 176.34 percent.\53\
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    \53\ Id.
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Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating LTFV investigations to determine 
whether imports of epoxy resins from China, India, Korea, Taiwan, and 
Thailand are being, or are likely to be, sold in the United States at 
LTFV. In accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determinations no later than 140 days after the date of these 
initiations.

[[Page 33328]]

Respondent Selection

Thailand

    In the Petitions, the petitioner identified one company in Thailand 
(i.e., Aditya Birla Chemicals) as a producer/exporter of epoxy resins 
and provided independent, third-party information as support.\54\ We 
currently know of no additional producers/exporters of epoxy resins 
from Thailand.
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    \54\ See Petitions at Volume I (page 17 and Exhibit I-17); see 
also First General Issues Supplement at 2-3 and Exhibits I-S1 and I-
S3.
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    Accordingly, Commerce intends to individually examine all known 
producers/exporters in the investigations from Thailand (i.e., the 
companies cited above). We invite interested parties to comment on this 
issue. Such comments may include factual information within the meaning 
of 19 CFR 351.102(b)(21). Parties wishing to comment must do so within 
three business days of the publication of this notice in the Federal 
Register. Comments must be filed electronically using ACCESS. An 
electronically filed document must be received successfully in its 
entirety via ACCESS by 5:00 p.m. ET on the specified deadline. Because 
we intend to examine all known producers/exporters in Thailand, if no 
comments are received or if comments received further support the 
existence of this sole producer/exporter in Thailand, we do not intend 
to conduct respondent selection and will proceed to issuing the initial 
AD questionnaires to the companies identified. However, if comments are 
received which create a need for a respondent selection process, we 
intend to finalize our decisions regarding respondent selection within 
20 days of publication of this notice.

India, Korea, and Taiwan

    In the Petitions, the petitioner identified six companies in India, 
four companies in Korea, and four companies in Taiwan as producers/
exporters of epoxy resins.\55\ Following standard practice in LTFV 
investigations involving market economy countries, in the event 
Commerce determines that the number of companies is large, and it 
cannot individually examine each company based upon Commerce's 
resources, where appropriate, Commerce intends to select mandatory 
respondents based on U.S. Customs and Border Protection (CBP) data for 
imports under the appropriate Harmonized Tariff Schedule of the United 
States (HTSUS) subheading(s) listed in the ``Scope of the 
Investigations,'' in the appendix.
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    \55\ See Petitions at Volume I (page 17 and Exhibit I-17); see 
also First General Issues Supplement at 2-3 and Exhibits I-S1 and I-
S3; and Second General Issues Supplement at 1.
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    On April 18, 2024, Commerce released CBP data on imports of epoxy 
resins from India, Korea, and Taiwan under administrative protective 
order (APO) to all parties with access to information protected by APO 
and indicated that interested parties wishing to comment on CBP data 
and/or respondent selection must do so within three business days of 
the publication date of the notice of initiation of these 
investigations.\56\ Comments must be filed electronically using ACCESS. 
An electronically filed document must be received successfully in its 
entirety via ACCESS by 5:00 p.m. ET on the specified deadline. Commerce 
will not accept rebuttal comments regarding the CBP data or respondent 
selection.
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    \56\ See Memoranda, ``Antidumping Duty Petition of Certain Epoxy 
Resins from India: U.S. Customs and Border Protection Data 
Release,'' dated April 19, 2024; ``Epoxy Resins from the Republic of 
Korea: Release of U.S. Customs and Border Protection Entry Data,'' 
dated April 18, 2024; and ``Certain Epoxy Resins from Taiwan: 
Release of U.S. Customs and Border Protection Entry Data,'' dated 
April 18, 2024.
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    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at https://www.trade.gov/administrative-protective-orders.

China

    In the Petitions, the petitioner named 28 companies in China as 
producers and/or exporters of epoxy resins.\57\ Our standard practice 
for respondent selection in AD investigations involving NME countries 
is to select respondents based on quantity and value (Q&V) 
questionnaires in cases where Commerce has determined that the number 
of companies is large, and it cannot individually examine each company 
based upon its resources. Therefore, considering the number of 
producers and/or exporters identified in the Petitions, Commerce will 
solicit Q&V information that can serve as a basis for selecting 
exporters for individual examination in the event that Commerce 
determines that the number is large and decides to limit the number of 
respondents individually examined pursuant to section 777A(c)(2) of the 
Act. Because there are 28 Chinese producers and/or exporters identified 
in the Petitions, Commerce has determined that it will issue Q&V 
questionnaires to the largest producers and/or exporters that are 
identified in the CBP data for which there is complete address 
information on the record.
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    \57\ See Petitions at Volume I (page 17 and Exhibit I-17); see 
also First General Issues Supplement at 2 and Exhibit I-S1.
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    Commerce will post the Q&V questionnaires along with filing 
instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of epoxy resins from China that 
do not receive Q&V questionnaires may still submit a response to the 
Q&V questionnaire and can obtain a copy of the Q&V questionnaire from 
Commerce's website. Responses to the Q&V questionnaire must be 
submitted by the relevant Chinese producers/exporters no later than 
5:00 p.m. ET on May 7, 2024, which is two weeks from the signature date 
of this notice. All Q&V questionnaire responses must be filed 
electronically via ACCESS. An electronically filed document must be 
received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above.
    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). As stated above, instructions 
for filing such applications may be found on Commerce's website at 
https://www.trade.gov/administrative-protective-orders.

Separate Rates

    In order to obtain separate rate status in an NME investigation, 
exporters and producers must submit a separate rate application. The 
specific requirements for submitting a separate rate application in an 
NME investigation are outlined in detail in the application itself, 
which is available on Commerce's website at https://access.trade.gov/Resources/nme/nme-sep-rate.html. The separate rate application will be 
due 30 days after publication of this initiation notice. Exporters and 
producers must file a timely separate rate application if they want to 
be considered for individual examination. Exporters and producers who 
submit a separate rate application and have been selected as mandatory 
respondents will be eligible for consideration for separate rate status 
only if they respond to all parts of Commerce's AD questionnaire as 
mandatory respondents. Commerce requires that companies from China 
submit a response both to the Q&V questionnaire and to the separate 
rate application by the respective deadlines to receive consideration 
for separate rate status. Companies not filing a timely Q&V 
questionnaire response will not receive separate rate consideration.

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are

[[Page 33329]]

eligible for a separate rate in an NME investigation. The Separate 
Rates and Combination Rates Bulletin states:

    {w{time} hile continuing the practice of assigning separate 
rates only to exporters, all separate rates that {Commerce{time}  
will now assign in its NME investigation will be specific to those 
producers that supplied the exporter during the period of 
investigation. Note, however, that one rate is calculated for the 
exporter and all of the producers which supplied subject merchandise 
to it during the period of investigation. This practice applies both 
to mandatory respondents receiving an individually calculated 
separate rate as well as the pool of non-investigated firms 
receiving the {weighted average{time}  of the individually 
calculated rates. This practice is referred to as the application of 
``combination rates'' because such rates apply to specific 
combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise 
both exported by the firm in question and produced by a firm that 
supplied the exporter during the period of investigation.\58\
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    \58\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigation involving NME Countries,'' (April 
5, 2005) at 6 (emphasis added), available on Commerce's website at 
https://access.trade.gov/Resources/policy/bull05-1.pdf.
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Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the governments of China, India, Korea, Taiwan, and 
Thailand via ACCESS. To the extent practicable, we will attempt to 
provide a copy of the public version of the Petitions to each exporter 
named in the Petitions, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of our initiation, as required by 
section 732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of epoxy resins from China, India, Korea, 
Taiwan, and/or Thailand are materially injuring, or threatening 
material injury to, a U.S. industry.\59\ A negative ITC determination 
for any country will result in the investigation being terminated with 
respect to that country.\60\ Otherwise, these LTFV investigations will 
proceed according to statutory and regulatory time limits.
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    \59\ See section 733(a) of the Act.
    \60\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \61\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\62\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in these investigations.
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    \61\ See 19 CFR 351.301(b).
    \62\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 773(e) of the Act addresses the concept of particular 
market situation (PMS) for purposes of CV, stating that ``if a 
particular market situation exists such that the cost of materials and 
fabrication or other processing of any kind does not accurately reflect 
the cost of production in the ordinary course of trade, the 
administering authority may use another calculation methodology under 
this subtitle or any other calculation methodology.'' When an 
interested party submits a PMS allegation pursuant to section 773(e) of 
the Act (i.e., a cost-based PMS allegation), Commerce will respond to 
such a submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce 
finds that a cost-based PMS exists under section 773(e) of the Act, 
then it will modify its dumping calculations appropriately.
    Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), 
sets a deadline for the submission of cost-based PMS allegations and 
supporting factual information. However, in order to administer section 
773(e) of the Act, Commerce must receive PMS allegations and supporting 
factual information with enough time to consider the submission. Thus, 
should an interested party wish to submit a cost-based PMS allegation 
and supporting new factual information pursuant to section 773(e) of 
the Act, it must do so no later than 20 days after submission of a 
respondent's initial section D questionnaire response.
    We note that a PMS allegation filed pursuant to sections 
773(a)(1)(B)(ii)(III) or 773(a)(1)(C)(iii) of the Act (i.e., a sales-
based PMS allegation) must be filed within 10 days of submission of a 
respondent's initial section B questionnaire response, in accordance 
with 19 CFR 351.301(c)(2)(i) and 19 CFR 351.404(c)(2).

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301, or as otherwise specified by 
Commerce.\63\ For submissions that are due from multiple parties 
simultaneously, an extension request will be considered untimely if it 
is filed after 10:00 a.m. ET on the due date. Under certain 
circumstances, Commerce may elect to specify a different time limit by 
which extension requests will be considered untimely for submissions 
which are due from multiple parties simultaneously. In such a case, we 
will inform parties in a letter or memorandum of the deadline 
(including a specified time) by which extension requests must be filed 
to be considered timely. An extension request must be made in a 
separate, standalone submission; under limited circumstances we will 
grant untimely filed requests for the extension of time limits, where 
we determine, based on 19 CFR 351.302, that extraordinary circumstances 
exist. Parties should review Commerce's regulations concerning the 
extension of time limits and the Time Limits Final Rule prior to 
submitting factual information in these investigations.\64\
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    \63\ See 19 CFR 351.301; see also Extension of Time Limits; 
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final 
Rule), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
    \64\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
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Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy

[[Page 33330]]

and completeness of that information.\65\ Parties must use the 
certification formats provided in 19 CFR 351.303(g).\66\ Commerce 
intends to reject factual submissions if the submitting party does not 
comply with the applicable certification requirements.
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    \65\ See section 782(b) of the Act.
    \66\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional 
information regarding the Final Rule is available at https://access.trade.gov/Resources/filing/index.html.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Parties wishing to participate 
in these investigations should ensure that they meet the requirements 
of 19 CFR 351.103(d) (e.g., by filing the required letter of 
appearance). Note that Commerce has amended certain of its requirements 
pertaining to the service of documents in 19 CFR 351.303(f).\67\
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    \67\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 
67069 (September 29, 2023).
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    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: April 23, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix--Scope of the Investigations

    The merchandise subject to these investigations are fully or 
partially uncured epoxy resins, also known as epoxide resins, 
polyepoxides, oxirane resins, ethoxyline resins, diglycidyl ether of 
bisphenol, (chloromethyl)oxirane, or aromatic diglycidyl, which are 
polymers or prepolymers containing epoxy groups (i.e., three-
membered ring structures comprised of two carbon atoms and one 
oxygen atom). Epoxy resins range in physical form from low viscosity 
liquids to solids. All epoxy resins are covered by the scope of 
these investigations irrespective of physical form, viscosity, 
grade, purity, molecular weight, or molecular structure, and 
packaging.
    Epoxy resins may contain modifiers or additives, such as 
hardeners, curatives, colorants, pigments, diluents, solvents, 
thickeners, fillers, plasticizers, softeners, flame retardants, 
toughening agents, catalysts, Bisphenol F, and ultraviolet light 
inhibitors, so long as the modifier or additive has not chemically 
reacted so as to cure the epoxy resin or convert it into a different 
product no longer containing epoxy groups. Such epoxy resins with 
modifiers or additives are included in the scope where the epoxy 
resin component comprises no less than 30 percent of the total 
weight of the product. The scope also includes blends of epoxy 
resins with different types of epoxy resins, with or without the 
inclusion of modifiers and additives, so long as the combined epoxy 
resin component comprises at least 30 percent of the total weight of 
the blend.
    Epoxy resins that enter as part of a system or kit with 
separately packaged co-reactants, such as hardeners or curing 
agents, are within the scope. The scope does not include any 
separately packaged co-reactants that would not fall within the 
scope if entered on their own.
    The scope includes merchandise matching the above description 
that has been processed in a third country, including by 
commingling, diluting, introducing, or removing modifiers or 
additives, or performing any other processing that would not 
otherwise remove the merchandise from the scope of the 
investigations if performed in the subject country.
    The scope also includes epoxy resin that is commingled or 
blended with epoxy resin from sources not subject to these 
investigations. Only the subject component of such commingled 
products is covered by the scope of these investigations.
    Excluded from the scope are phenoxy resins, which are polymers 
with a weight greater than 11,000 Daltons, a Melt Flow Index (MFI) 
at 200 [deg]C (392 [deg]F) no less than 4 grams and no greater than 
70 grams per 10 min, Glass-Transition Temperatures (Tg) no less than 
80 [deg]C (176 [deg]F) and no greater than 100 [deg]C (212 [deg]F), 
and which contain no epoxy groups other than at the terminal ends of 
the molecule.
    Excluded from the scope are certain paint and coating products, 
which are blends, mixtures, or other formulations of epoxy resin, 
curing agent, and pigment, in any form, packaged in one or more 
containers, wherein (1) the pigment represents a minimum of 10 
percent of the total weight of the product, (2) the epoxy resin 
represents a maximum of 80 percent of the total weight of the 
product, and (3) the curing agent represents 5 to 40 percent of the 
total weight of the product.
    Excluded from the scope are preimpregnated fabrics or fibers, 
often referred to as ``pre-pregs,'' which are composite materials 
consisting of fabrics or fibers (typically carbon or glass) 
impregnated with epoxy resin.
    This merchandise is currently classifiable under Harmonized 
Tariff Schedule of the United States (HTSUS) subheading 
3907.30.0000. Subject merchandise may also be entered under 
subheadings 3907.29.0000, 3824.99.9397, 3214.10.0020, 2910.90.9100, 
2910.90.9000, 2910.90.2000, and 1518.00.4000. The HTSUS subheadings 
are provided for convenience and customs purposes only; the written 
description of the scope is dispositive.

[FR Doc. 2024-09161 Filed 4-26-24; 8:45 am]
BILLING CODE 3510-DS-P