[Federal Register Volume 85, Number 194 (Tuesday, October 6, 2020)]
[Notices]
[Pages 63095-63097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22060]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-907]
Ultra-High Molecular Weight Polyethylene From the Republic of
Korea: Preliminary Affirmative Determination of Sales at Less Than Fair
Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that ultra-high molecular weight polyethylene (ultra-high polyethylene)
from the Republic of Korea (Korea) is being, or is likely to be, sold
in the United States at less than fair value. The period of
investigation is January 1, 2019 through December 31, 2019. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable October 6, 2020.
FOR FURTHER INFORMATION CONTACT: Ian Hamilton, AD/CVD Operations,
Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4798.
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
[[Page 63096]]
on March 31, 2020.\1\ On July 20, 2020, Commerce postponed the
preliminary determination of this investigation, and the revised
deadline is now September 30, 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. 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 https://enforcement.trade.gov/frn/summary/korea-south/korea-south-fr.htm. The signed and electronic versions of
the Preliminary Decision Memorandum are identical in content.
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\1\ See Ultra-High Molecular Weight Polyethylene from the
Republic of Korea: Initiation of Less-Than-Fair-Value Investigation,
85 FR 17861 (March 31, 2020) (Initiation Notice).
\2\ See Ultra-High Molecular Weight Polyethylene from the
Republic of Korea: Postponement of Preliminary Determination in the
Less-Than-Fair-Value Investigation, 85 FR 43813 (July 20, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Ultra-
High Molecular Weight Polyethylene from the Republic of Korea,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is ultra-high
polyethylene 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 and
rebuttal comments submitted on the record for this investigation, see
the Preliminary Decision Memorandum. Commerce has preliminarily
modified the scope language as it appeared in the Initiation Notice.
See revised 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 17862.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export price in
accordance with section 772(a) 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.
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 Korea Petrochemical Ind. Co., Ltd./KPIC Corporation
(collectively, KPIC), the only individually examined exporter/producer
in this investigation.\6\ 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 KPIC is the margin assigned to all other producers and
exporters, pursuant to section 735(c)(5)(A) of the Act.
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\6\ On September 2, 2020, Commerce determined to collapse Korea
Petrochemical Ind. Co., Ltd. and KPIC Corporation and treat them as
a single entity. See Memorandum, ``Antidumping Duty Investigation of
Ultra-High Molecular Weight Polyethylene from the Republic of Korea:
Korea Petrochemical Ind. Co., Ltd. Preliminary Affiliation and
Collapsing Memorandum,'' dated September 2, 2020.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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Korea Petrochemical Ind. Co., Ltd./KPIC Corporation......... 7.80
All Others.................................................. 7.80
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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 margin
determined in this preliminary determination; (2) if the exporter is
not the 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.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of the date of public announcement of this notice in
accordance with 19 CFR 351.224(b).
Verification
Commerce is currently unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. Accordingly, we intend to take additional steps in lieu
of on-site verification. Commerce will notify interested parties of any
additional documentation or information required.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Interested parties
will be notified of the timeline for the submission of case briefs and
written comments at a later date. 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
[[Page 63097]]
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; see also 19 CFR 351.303 (for general
filing requirements).
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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 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.
Parties are reminded that briefs and hearing requests are to be
filed electronically using ACCESS and that electronically filed
documents must be received successfully in their entirety by 5 p.m.
Eastern Time on the due date. 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 Modifying AD/CVD Service Requirements Due
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10,
2020).
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Postponement of Final Determination
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On September 2, 2020, pursuant to 19 CFR 351.210(e), KPIC requested
that Commerce postpone the final determination and that provisional
measures be extended to a period not to exceed six months.\9\ On
September 8, 2020, the petitioner submitted a letter supporting KPIC's
request to postpone the final determination.\10\ In accordance with
section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because:
(1) The preliminary determination is affirmative; (2) KPIC accounts for
a significant proportion of exports of the subject merchandise; and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make its final determination by no later than 135 days
after the date of publication of this preliminary determination,
pursuant to section 735(a)(2) of the Act.
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\9\ See KPIC's Letter, ``Ultra-High Molecular Weight
Polyethylene from the Republic of Korea: Request to Postpone Final
Determination and Extend Provisional Measures,'' dated September 2,
2020.
\10\ See Petitioner's Letter, ``Petitioners {sic{time} for the
Imposition of Antidumping Duties on Imports of Ultra-High Molecular
Weight Polyethylene from the Republic of Korea: Petitioner's Consent
to Postponement of the Final Determination,'' dated September 8,
2020.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (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 these 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: September 30, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by the scope is ultra-high molecular
weight polyethylene. Ultra-high molecular weight polyethylene is a
linear polyethylene, in granular or powder form is defined by its
molecular weight, as defined by Margolie's Equation, of greater than
1.0 x 10\6\ g/mol. Ultra-high molecular weight polyethylene may also
be defined by its melt mass-flow rate of <0.1 g/10 min, measured at
190 [deg]C and 21.6 kg load, based on the methods and calculations
set forth in the International Organization for Standardization
(ISO) standards 21304-1 and 21304-2. Ultra-high molecular weight
polyethylene has a Chemical Abstract Service (CAS) registry number
of 9002-88-4.
The scope includes all ultra-high molecular weight polyethylene
in granular or powder forms meeting the above specifications
regardless of additives introduced in the manufacturing process.
Ultra-high molecular weight polyethylene blended with other products
is included in the scope of this investigation where ultra-high
molecular weight polyethylene accounts for more than 50 percent, by
actual weight, of the blend and the resulting blend maintains a
molecular weight, as defined by Margolie's Equation, of greater than
1.0 x 10\6\ g/mol and/or a melt mass-flow rate of <0.1 g/10 min.
Excluded from the scope of the investigation is medical-grade
ultra-high molecular weight polyethylene. Medical grade ultra-high
molecular weight polyethylene has a minimum viscosity of 2000 ml/g
at a concentration of 0.02% at 135 [deg]C (275 [deg]F) in
decahydronaphthalene and an elongational stress of 0.2 MPa or
greater. Medical-grade ultra-high molecular weight polyethylene is
further defined by its ash and trace element content, which shall
not exceed the following maximum quantities as set forth in ISO-
5834-1: Ash (125 mg/kg), titanium (40 mg/kg), calcium (5 mg/kg),
chlorine (30 mg/kg), and aluminum (20 mg/kg). ISO 5834-1 further
defines medical grade ultra-high molecular weight polyethylene by
its particulate matter content, which requires that there shall be
no more than three particles of contaminant per 300 20
g tested. Each of the above criteria is calculated based on the
standards and methods used in ISO 5834-1.
Ultra-high molecular weight polyethylene is classifiable under
the HTSUS subheadings 3901.10.1000 and 3901.20.1000. Although the
HTSUS subheadings and CAS registry number are provided for
convenience and customs purposes, the written description of the
scope is dispositive.
Appendix II--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
VI. Date of Sale
VII. Product Comparisons
VIII. Export Price
IX. Normal Value
X. Currency Conversion
XI. Recommendation
[FR Doc. 2020-22060 Filed 10-5-20; 8:45 am]
BILLING CODE 3510-DS-P