[Federal Register Volume 90, Number 63 (Thursday, April 3, 2025)]
[Notices]
[Pages 14616-14618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05755]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-166]
Certain Epoxy Resins From the People's Republic of China: Final
Affirmative Determination of Sales at Less Than Fair Value and Final
Affirmative Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
certain epoxy resins (epoxy resins) from the People's Republic of China
(China) are being, or are likely to be, sold in the United States at
less than fair value (LTFV). The period of investigation is October 1,
2023, through March 31, 2024.
DATES: Applicable April 3, 2025.
FOR FURTHER INFORMATION CONTACT: Erin Kearney, AD/CVD Operations,
Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0167.
SUPPLEMENTARY INFORMATION:
Background
On November 13, 2024, Commerce published in the Federal Register
its preliminary affirmative determination in the LTFV investigation of
epoxy resins from China.\1\ We invited interested parties to comment on
the Preliminary Determination.\2\ No interested party submitted case
briefs or rebuttal briefs on the Preliminary Determination.
---------------------------------------------------------------------------
\1\ See Certain Epoxy Resins from the People's Republic of
China: Preliminary Affirmative Determination of Sales at Less Than
Fair Value and Preliminary Affirmative Determination of Critical
Circumstances, 89 FR 89594 (November 13, 2024) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ Id., 89 FR at 89596.
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are epoxy resins from
China. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from interested parties. Commerce issued a Preliminary Scope
Decision Memorandum to address these comments and set aside a period of
time for parties to address scope issues in scope-specific case and
rebuttal briefs.\3\ Between February 2025 and March 2025, Commerce
received scope case and rebuttal briefs from interested parties.\4\ We
made changes to the scope of the investigation from the scope published
in the Preliminary Determination, as noted in Appendix I.\5\
---------------------------------------------------------------------------
\3\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated November 6, 2024 (Preliminary Scope Decision Memorandum).
\4\ See Petitioner's Letter, ``Case Brief on Scope Issues,''
dated February 28, 2025 (Petitioner's Scope Case Brief); Sherwin
Williams' Letter, ``Scope Case Brief on Behalf of Sherwin-
Williams,'' dated February 28, 2025 (Sherwin-Williams' Scope Case
Brief); PPG's Letter, ``Scope Case Brief of PPG Industries, Inc.,''
dated February 28, 2025 (PPG's Scope Case Brief); Petitioner's
Letter, ``Petitioner's Letter in Lieu of Rebuttal Brief on Scope
Issues,'' dated March 5, 2025 (Petitioner's Rebuttal Scope Case
Brief); PPG's Letter, ``Rebuttal Scope Case Brief of PPG Industries,
Inc.,'' dated March 5, 2025 (PPG's Rebuttal Scope Case Brief); and
Sherwin-Williams' Letter, ``Scope Rebuttal Brief on Behalf of
Sherwin Williams,'' dated March 5, 2025 (Sherwin-Williams' Rebuttal
Scope Case Brief).
\5\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
concurrently with this notice.
---------------------------------------------------------------------------
Final Affirmative Determination of Critical Circumstances
Commerce preliminarily determined, pursuant to section 733(e)(1) of
the Tariff Act of 1830, as amended (the Act), and 19 CFR 351.206(c),
that critical circumstances exist with respect to imports of epoxy
resins from China for the China-wide entity. For the final
determination, we continue to find that critical circumstances exist
for imports of epoxy resins from China with respect to the China-wide
entity, pursuant to section 735(a)(3)(A) and (B) of the Act and 19 CFR
351.206.\6\
---------------------------------------------------------------------------
\6\ See Preliminary Determination PDM at 12-16.
---------------------------------------------------------------------------
Verification
Because the mandatory respondent in this investigation did not
provide information requested by Commerce, and Commerce determined that
the mandatory respondent was uncooperative, no verification was
conducted.
Changes Since the Preliminary Determination
Other than the changes to the scope of this investigation noted
above, this final determination remains unchanged from the Preliminary
Determination, and, in the absence of comments from interested parties,
no decision memorandum accompanies this notice.
China-Wide Entity and Use of Adverse Facts Available
Consistent with the Preliminary Determination,\7\ Commerce
continues to find, pursuant to sections 776(a) and (b) of the Act, that
the use of facts otherwise available, with adverse inferences, is
warranted in determining the dumping rate for the China-wide entity.
Thus, in this final determination, as adverse facts available (AFA), we
continue to assign a rate of 354.99 percent, which is the highest
margin alleged in the petition,\8\ to the China-wide entity.\9\
---------------------------------------------------------------------------
\7\ See Preliminary Determination, 89 FR at 89595.
\8\ See 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, 89 FR 33324
(April 29, 2024) (Initiation Notice); see also Checklist,
``Antidumping Duty Investigation Initiation Checklist: Certain Epoxy
Resins from the People's Republic of China,'' dated April 3, 2024
(Initiation Checklist) at 8.
\9\ The China-wide entity includes: (1) Huntsman Advanced
Materials (Guangdong) Company Ltd.; (2) Artmate Co. Ltd.; (3)
Changzhou Original Chemical Co., Ltd.; (4) Jiangsu Ruiheng New
Material Technology Co., Ltd.; (5) Jiangsu Sanmu Group Co., Ltd.;
(6) Jushi Group Company Ltd.; (7) Mercury Far East Enterprise Ltd.;
and (8) Shandong Deyuan Epoxy Resin Co., Ltd. See Preliminary
Determination, 89 FR at 89595.
---------------------------------------------------------------------------
Combination Rates
In the Initiation Notice,\10\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\11\
[[Page 14617]]
Because no respondent qualified for a separate rate, we did not
calculate producer/exporter combination rates for this final
determination.
---------------------------------------------------------------------------
\10\ See Initiation Notice, 89 FR at 33328-29.
\11\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available at
https://access.trade.gov/Resources/policy/bull05-1.pdf.
---------------------------------------------------------------------------
Final Determination
The final estimated weighted-average dumping margin is as follows:
\12\
---------------------------------------------------------------------------
\12\ See Preliminary Determination, 89 FR at 89594.
------------------------------------------------------------------------
Weighted-
average
Producer/exporter dumping
margin
(percent)
------------------------------------------------------------------------
China-Wide Entity........................................... * 354.99
------------------------------------------------------------------------
* Rate based on facts available with adverse inferences.
Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a final determination within five days of
its 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). However, because Commerce applied AFA to the China-
wide entity in this investigation, in accordance with section 776 of
the Act, and the applied AFA rate is based solely on the petition,
there are no calculations to disclose.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of subject merchandise,
as described in Appendix I of this notice, which were entered, or
withdrawn from warehouse, for consumption, on or after August 15, 2024,
which is 90 days prior to the date of the date of publication of the
affirmative Preliminary Determination in the Federal Register.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, an suspension of liquidation
shall apply to unliquidated entries of subject merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered; or (b) the date on which notice of
initiation of the investigation was published. Commerce continues to
find that critical circumstances exist for imports of subject
merchandise produced or exported by the China-wide entity. In
accordance with section 733(e)(2)(A) of the Act, the suspension of
liquidation shall apply to unliquidated entries of shipments of subject
merchandise from the producer(s) or exporter(s) identified in this
paragraph that were entered, or withdrawn from warehouse, for
consumption on or after August 15, 2024.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), upon the publication of this notice, Commerce will instruct
CBP to require a cash deposit for estimated antidumping duties for
appropriate entries. Commerce will instruct CBP to require the
following cash deposits of estimated antidumping duties for all
appropriate entries: (1) for all Chinese exporters of subject
merchandise, the cash deposit will be equal to the estimated dumping
margin established for the China-wide entity; and (2) for all third-
country exporters of merchandise under consideration, the cash deposit
rate is also the cash deposit rate applicable to the China-wide entity.
These suspension of liquidation instructions will remain in effect
until further notice.
U.S. International Trade Commission (ITC) Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of our final affirmative determination of sales at LTFV. 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 epoxy resins from China no later than 45 days
after this final determination. If the ITC determines that material
injury or threat of material injury does not exist, the proceeding will
be terminated and all cash deposits will be refunded or canceled, and
suspension of liquidation will be lifted. If the ITC determines that
such injury does exist, Commerce will issue an AD duty order directing
CBP to assess, upon further instruction by Commerce, AD duties on all
imports of the subject merchandise that are 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 (APO)
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an 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 violation subject to sanction.
Notification to Interested Parties
This final 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: March 28, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this investigation is 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 this
investigation 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
[[Page 14618]]
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 investigation 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 this
investigation. Only the subject component of such commingled
products is covered by the scope of this investigation. 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.
Also excluded from the scope is Tetramethyl Bisphenol F
Diglycidyl Ether epoxy resin, also known as Tetramethyl Bisphenol F
-DGE Polymer (TMBPF-DGE), that (1) has the chemical name: phenol, 4,
4'-methylenebis[2,6-dimethyl-, polymer with 2-(chloromethyl)oxirane,
(2) falls under Chemical Abstract Services (CAS) Registry Number
113693-69-9, and (3) has an epoxy equivalent weight (EEW), also
referred to as the weight per epoxide (WPE), of no less than 200 and
no greater than 230 grams of epoxy resin per epoxy equivalent (g/eq
or GEW).\13\
---------------------------------------------------------------------------
\13\ The bracket in this sentence is part of the chemical
formula and does not denote business proprietary information.
---------------------------------------------------------------------------
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. 2025-05755 Filed 4-2-25; 8:45 am]
BILLING CODE 3510-DS-P