[Federal Register Volume 85, Number 141 (Wednesday, July 22, 2020)]
[Notices]
[Pages 44281-44283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15841]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-905]
4th Tier Cigarettes From the Republic of Korea: Preliminary
Affirmative Determination of Sales at Less Than Fair Value, and
Preliminary Negative Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that 4th Tier Cigarettes from the Republic of Korea (Korea) are being,
or are likely to be, sold in the United States at less than fair value
(LTFV). The period of investigation (POI) is October 1, 2018 through
September 30, 2019. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable July 22, 2020.
FOR FURTHER INFORMATION CONTACT: Thomas Martin or Jesse Montoya, AD/CVD
Operations, Office IV, Enforcement and Compliance, International Trade
[[Page 44282]]
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3936 or (202) 482-8211,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on January 15,
2020.\1\ On May 6, 2020, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
July 15, 2020.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ A list of topics included in the Preliminary
Decision Memorandum is included as Appendix II to this notice.
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\1\ See 4th Tier Cigarettes From the Republic of Korea:
Initiation of Less-Than-Fair-Value Investigation, 85 FR 2390
(January 15, 2020) (Initiation Notice).
\2\ See 4th Tier Cigarettes from the Republic of Korea:
Postponement of Preliminary Determination in the Less-Than-Fair-
Value Investigation, 85 FR 27991 (May 12, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of 4th Tier
Cigarettes from the Republic of Korea,'' dated concurrently with,
and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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The Preliminary 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 Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/. The signed
and the electronic versions of the Preliminary Decision Memorandum are
identical in content.
Scope of the Investigation
The products covered by this investigation are 4th Tier Cigarettes
from Korea. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this preliminary
determination, and accompanying discussion and analysis of all comments
timely received, see the Preliminary Scope Decision Memorandum.\6\
Commerce is not preliminarily modifying the scope language as it
appeared in the Initiation Notice. See the scope in Appendix I to this
notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice, 85 FR at 2391.
\6\ See Memorandum, ``Polyethylene Terephthalate Sheet from the
Republic of Korea: Preliminary Scope Decision Memorandum,'' dated
concurrently with this notice (Preliminary Scope Decision
Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 731of the Act. Constructed export prices have been calculated
in accordance with section 772(b) of the Act. Normal value is
calculated in accordance with section 773 of the Act. For a full
description of the methodology underlying the preliminary
determination, see the Preliminary Decision Memorandum.
Preliminary Negative Determination of Critical Circumstances
In accordance with section 733(e) of the Act and 19 CFR 351.206,
Commerce preliminarily finds that critical circumstances do not exist
for KT&G Corporation, or for ``all others.'' For a full description of
the methodology and results of Commerce's critical circumstances
analysis, see the Preliminary Decision Memorandum.
All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in
the preliminary determination Commerce shall determine an estimated
all-others rate for all exporters and producers not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated, excluding any zero
and de minimis margins, and any margins determined entirely under
section 776 of the Act.
Commerce calculated an individual estimated weighted-average
dumping margin for KT&G Corporation, the only individually examined
exporter/producer in this investigation. Because the only individually
calculated dumping margin is not zero, de minimis, or based entirely on
facts otherwise available, the estimated weighted-average dumping
margin calculated for KT&G Corporation is the margin assigned to all
other producers and exporters, pursuant to section 735(c)(5)(A) of the
Act
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
------------------------------------------------------------------------
Estimated
weighted- Cash
average deposit
Exporter/producer dumping rate
margin (percent)
(percent)
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KT&G Corporation................................ 5.48 5.48
All Others...................................... 5.48 5.48
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise, as described in Appendix I, entered
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. Further, pursuant
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows:
(1) The cash deposit rate for the respondent listed above will be equal
to the company-specific estimated weighted-average dumping margins
determined in this preliminary 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. These suspension of liquidation instructions will
remain in effect until further notice.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary 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).
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than 21
days after the date of publication of the
[[Page 44283]]
preliminary determination, unless Commerce alters the time limit.
Rebuttal briefs, limited to issues raised in case briefs, may be
submitted no later than seven days after the deadline date for case
briefs.\7\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this investigation are
encouraged to submit with each argument: (1) A statement of the issue;
(2) a brief summary of the argument; and (3) a table of authorities.
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\7\ See 19 CFR 351.309; and 19 CFR 351.303 (for general filing
requirements); see also Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19; Extension of Effective Period, 85 FR
41363 (July 10, 2020) (Temporary Rule).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
An electronically filed document must be received successfully in
its entirety by ACCESS by 5:00 p.m. Eastern Time on the established
deadline. Note that Commerce has temporarily modified certain of its
requirements for serving documents containing business proprietary
information, until further notice.\8\
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\8\ See Temporary Rule.
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International Trade Commission (ITC) Notification
In accordance with section 733(f) of the Act, Commerce will notify
the ITC of its preliminary determination. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether subject imports are materially injuring, or
threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: July 15, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation is certain tobacco
cigarettes, commonly referred to as ``4th tier cigarettes.'' The
subject cigarettes are composed of a tobacco blend rolled in paper,
have a nominal minimum total length of 7.0 cm but do not exceed 12.0
cm in total nominal length, and have a nominal diameter of less than
1.3 cm. These sizes of cigarettes are frequently referred to as
``Kings'' and ``100's,'' but subject merchandise that meets the
physical description of the scope is included regardless of the
marketing description of the size of the cigarettes. Subject
merchandise typically has a tobacco blend that consists of 10% or
more tobacco stems.
Subject merchandise is typically sold in packs of 20 cigarettes
per pack which generally includes the marking ``20 Class A
Cigarettes'' but are included regardless of packaging. 4th tier
cigarette packages are typically sold in boxes without a rounded
internal corner and without embossed aluminum foil inside the pack.
Both menthol and non-menthol cigarettes and cigarettes with or
without a filter attached are covered by the scope of this
investigation.
Merchandise covered by this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under subheading 2402.20.8000. This HTSUS subheading is
provided for convenience and customs purposes; the written
description of the scope of the investigation is dispositive.
Appendix II--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Scope Comments
VI. Negative Preliminary Determination of Critical Circumstances
VII. Discussion of the Methodology
VIII. Date of Sale
IX. Product Comparisons
X. Constructed Export Price
XI. Normal Value
XII. Currency Conversion
XIII. Recommendation
[FR Doc. 2020-15841 Filed 7-21-20; 8:45 am]
BILLING CODE 3510-DS-P