[Federal Register Volume 86, Number 18 (Friday, January 29, 2021)]
[Notices]
[Pages 7532-7535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01975]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-122]


Certain Corrosion Inhibitors From the People's Republic of China: 
Final 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) determines that imports 
of certain corrosion inhibitors (corrosion inhibitors) 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 July 1, 2019 through December 31, 2019.

DATES: Applicable January 29, 2021.

FOR FURTHER INFORMATION CONTACT: Andre Gziryan, AD/CVD Operations, 
Office I, U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230; telephone: (202) 482-2201.

SUPPLEMENTARY INFORMATION:

Background

    On September 10, 2020, Commerce published its Preliminary 
Determination of sales at LTFV of corrosion inhibitors from China.\1\ 
For a complete description of the events that followed the Preliminary 
Determination, see the Issues and Decision Memorandum.\2\
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    \1\ See Certain Corrosion Inhibitors from the People's Republic 
of China: Preliminary Affirmative Determination of Sales at Less 
Than Fair Value, Postponement of Final Determination, and Extension 
of Provisional Measures, 85 FR 55825 (September 10, 2020) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum (PDM).
    \2\ See Memorandum, ``Certain Corrosion Inhibitors from the 
People's Republic of China: Issues and Decision Memorandum for the 
Final Determination of Sales at Less Than Fair Value,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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    The Issues and Decision Memorandum is a public document and is on 
file electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/. The signed 
and the electronic versions of the Issues and Decision Memorandum are 
identical in content.

[[Page 7533]]

Scope Comments

    No interested party commented on the scope of the investigation. 
Thus, we have not changed the scope of the investigation.

Scope of the Investigation

    The products covered by this investigation are corrosion inhibitors 
from China. For a complete description of the scope of the 
investigation, see Appendix I.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Tariff Act of 
1930, as amended (the Act).\3\
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    \3\ See Commerce's Letters, dated November 4, 2020; Nantong 
Botao Chemical Co., Ltd.'s Letter, ``Botao Verification 
Questionnaire Response,'' dated November 12, 2020; and Jiangyin 
Delian Chemical Co., Ltd.' s Letter, ``Response to Questionnaire 
Issued in Lieu of Verification,'' dated November 12, 2020.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are discussed in the Issues and Decision Memorandum. 
A list of the issues raised in the Issues and Decision Memorandum is 
attached to this notice as Appendix II.

Changes Since the Preliminary Determination

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

Separate Rate Companies

    No party commented on our preliminary separate rate determinations 
with respect to the mandatory respondents and the non-individually 
examined companies; \4\ thus, there is no basis to reconsider our 
preliminary determinations with respect to separate rate status, and we 
have continued to grant them a separate rate in this final 
determination.
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    \4\ See Preliminary Determination PDM at 9-12.
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China-Wide Entity Rate and the Use of Adverse Facts Available

    Commerce continues to find that the use of facts available is 
warranted in determining the rate of the China-wide entity pursuant to 
sections 776(a)(1) and (a)(2)(A)-(C) of the Act. As discussed in the 
Issues and Decision Memorandum, Commerce finds that the use of adverse 
facts available (AFA) is warranted with respect to the China-wide 
entity because the China-wide entity did not cooperate to the best of 
its ability to comply with our requests for information and, 
accordingly, we applied adverse inferences in selecting from the facts 
available, pursuant to section 776(b) of the Act and 19 CFR 351.308(a). 
For the final determination, as AFA, we are assigning the China-wide 
entity the highest transaction-specific dumping margin calculated for 
Botao, 277.90 percent. Because this constitutes primary information, 
the statutory corroboration requirement in section 776(c) of the Act 
does not apply.

Combination Rates

    Consistent with the Preliminary Determination and Policy Bulletin 
05.1,\5\ Commerce calculated combination (producer/exporter) rates for 
the respondents that are eligible for a separate rate in this 
investigation.
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    \5\ 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,'' dated April 5, 2005 (Policy Bulletin 05.1), available 
on Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Final Determination

    Commerce determines that the following estimated weighted-average 
dumping margins exist:

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                                                                                               Cash deposit rate
                                                                          Estimated weighted-    (adjusted for
                Producer                             Exporter               average dumping    subsidy offsets)
                                                                           margin (percent)        (percent)
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Nantong Botao Chemical Co., Ltd........  Jiangyin Delian Chemical Co.,                130.52               72.50
                                          Ltd.
Nantong Kanghua Chemical Co., Ltd......  Jiangyin Delian Chemical Co.,                130.52               72.50
                                          Ltd.
Nantong Botao Chemical Co., Ltd........  Nantong Botao Chemical Co., Ltd              139.41              101.71
Anhui Trust Chem Co., Ltd..............  Anhui Trust Chem Co., Ltd......              134.97               87.11
Gold Chemical Limited..................  Gold Chemical Limited..........              134.97               87.11
Jiangsu Bohan Industry Trade Co., Ltd..  Gold Chemical Limited..........              134.97               87.11
Jiangyin Gold Fuda Chemical Co., Ltd...  Gold Chemical Limited..........              134.97               87.11
Ningxia Ruitai Technology Co., Ltd.....  Gold Chemical Limited..........              134.97               87.11
SHANGHAI SUNTECH BIOCHEMICAL CO., LTD..  Gold Chemical Limited..........              134.97               87.11
Nantong Kanghua Chemical Co., Ltd......  Nantong Kanghua Chemical Co.,                134.97               87.11
                                          Ltd.
Anhui Trust Chem Co., Ltd..............  Nanjing Trust Chem Co., Ltd....              134.97               87.11
China-Wide Entity......................  ...............................              277.90              241.02
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Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
any public announcement or, if there is no public announcement, within 
five days of the date of publication of the notice of final 
determination in the Federal Register, in accordance with 19 CFR 
351.224(b).

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 corrosion inhibitors 
from China, as described in the appendix to this notice, which were 
entered, or withdrawn from warehouse, for consumption on or after 
September 10, 2020, the date of publication of the Preliminary 
Determination of this investigation in the Federal Register.
    Pursuant to section 735(c)(1)(B)(ii) of the Act, upon the 
publication of this notice, Commerce will instruct CBP to require a 
cash deposit equal to the weighted-average amount by which the normal 
value exceeds U.S. price as follows: (1) The cash deposit rate for the 
exporter/producer combinations listed in the table above will be the 
rate identified in the table; (2) for all

[[Page 7534]]

combinations of Chinese exporters/producers of subject merchandise that 
have not received their own separate rate above, the cash deposit rate 
will be the cash deposit rate established for the China-wide entity; 
and (3) for all non-Chinese exporters of subject merchandise which have 
not received their own separate rate above, the cash deposit rate will 
be the cash deposit rate applicable to the Chinese exporter/producer 
combination that supplied that non-Chinese exporter. These suspension 
of liquidation instructions will remain in effect until further notice.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce makes an affirmative 
determination for domestic subsidy pass-through or export subsidies, 
Commerce offsets the calculated estimated weighted-average dumping 
margin by the appropriate rates. Commerce continues to find that both 
Botao and Delian qualify for a double-remedy adjustment. We have 
continued to adjust the cash deposit rates for Botao, Delian, all non-
individually-examined companies, and the China-wide entity for export 
subsidies in the companion CVD investigation by the appropriate export 
subsidy rates \6\ as indicated in the above chart. However, suspension 
of liquidation of provisional measures in the companion CVD case has 
been discontinued effective November 10, 2020; therefore, we are not 
instructing CBP to collect cash deposits based upon the adjusted 
estimated weighted-average dumping margin for those export subsidies 
and double remedy adjustment at this time.
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    \6\ See Certain Corrosion Inhibitors from the People's Republic 
of China: Final Affirmative Countervailing Duty Determination, dated 
concurrently with this notice.
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International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of the final affirmative determination of sales at LTFV. We will 
allow the ITC access to all privileged and business proprietary 
information in our files, provided the ITC confirms that it will not 
disclose such information, either publicly or under an administrative 
protective order (APO), without the written consent of the Assistant 
Secretary for Enforcement and Compliance. 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 
subject merchandise from China no later than 45 days after our final 
determination. If the ITC determines that such injury does not exist, 
this proceeding will be terminated, and all cash deposits posted will 
be refunded. If the ITC determines that such injury does exist, 
Commerce will issue an AD order directing CBP to assess, upon further 
instruction by Commerce, antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders

    This notice serves as the only reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and the terms of an APO is a violation 
subject to sanction.

Notification to Interested Parties

    This 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: January 25, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is tolyltriazole 
and benzotriazole. This includes tolyltriazole and benzotriazole of 
all grades and forms, including their sodium salt forms. 
Tolyltriazole is technically known as Tolyltriazole IUPAC 4,5 methyl 
benzotriazole. It can also be identified as 4,5 methyl 
benzotriazole, tolutriazole, TTA, and TTZ.
    Benzotriazole is technically known as IUPAC 1,2,3-Benzotriazole. 
It can also be identified as 1,2,3-Benzotriazole, 1,2-
Aminozophenylene, lH-Benzotriazole, and BTA.
    All forms of tolyltriazole and benzotriazole, including but not 
limited to flakes, granules, pellets, prills, needles, powder, or 
liquids, are included within the scope of this investigation.
    The scope includes tolyltriazole/sodium tolyltriazole and 
benzotriazole/sodium benzotriazole that are combined or mixed with 
other products. For such combined products, only the tolyltriazole/
sodium tolyltriazole and benzotriazole/sodium benzotriazole 
component is covered by the scope of this investigation. 
Tolyltriazole and sodium tolyltriazole that have been combined with 
other products is included within the scope, regardless of whether 
the combining occurs in third countries.
    Tolyltriazole, sodium tolyltriazole, benzotriazole and sodium 
benzotriazole that is otherwise subject to this investigation is not 
excluded when commingled with tolyltriazole, sodium tolyltriazole, 
benzotriazole, or sodium benzotriazole from sources not subject to 
this investigation. Only the subject merchandise component of such 
commingled products is covered by the scope of this investigation.
    A combination or mixture is excluded from this investigation if 
the total tolyltriazole or benzotriazole component of the 
combination or mixture (regardless of the source or sources) 
comprises less than 5 percent of the combination or mixture, on a 
dry weight basis.
    Notwithstanding the foregoing language, a tolyltriazole or 
benzotriazole combination or mixture that is transformed through a 
chemical reaction into another product, such that, for example, the 
tolyltriazole or benzotriazole can no longer be separated from the 
other products through a distillation or other process is excluded 
from this investigation.
    Tolyltriazole has the Chemical Abstracts Service (CAS) registry 
number 299385-43-1. Tolyltriazole is classified under Harmonized 
Tariff Schedule of the United States (HTSUS) subheading 
2933.99.8220.
    Sodium Tolyltriazole has the CAS registry number 64665-57-2 and 
is classified under HTSUS subheading 2933.99.8290.
    Benzotriazole has the CAS registry number 95-14-7 and is 
classified under HTSUS subheading 2933.99.8210.
    Sodium Benzotriazole has the CAS registry number 15217-42-2. 
Sodium Benzotriazole is classified under HTSUS subheading 
2933.99.8290.
    Although the HTSUS subheadings and CAS registry numbers are 
provided for convenience and customs purposes, the written 
description of the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. China-Wide Rate
VII. Adjustment Under Section 777A(f) of the Act
VIII. Adjustments to Cash Deposit Rates
IX. Changes Since the Preliminary Determination
X. Discussion of the Issues

[[Page 7535]]

    Comment 1: Selection of Primary Surrogate Country and Financial 
Statements
    Comment 2: Surrogate Values for Ortho Phenylene Diamine (oPDA) 
and Ortho Toluene Diamine (oTDA)
    Comment 3: Market Economy Purchases
    Comment 4: Industry Support
XI. Conclusion

[FR Doc. 2021-01975 Filed 1-28-21; 8:45 am]
BILLING CODE 3510-DS-P