[Federal Register Volume 83, Number 173 (Thursday, September 6, 2018)]
[Notices]
[Pages 45220-45222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19332]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-549-835]


Rubber Bands From Thailand: Preliminary Affirmative Determination 
of Sales at Less Than Fair Value, Postponement of Final Determination, 
and Extension of Provisional Measures

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that rubber bands from Thailand are being or are likely to be sold in 
the United States at less than fair value (LTFV). The period of 
investigation (POI) is January 1, 2017, through December 31, 2017. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable September 6, 2018.

FOR FURTHER INFORMATION CONTACT: Laurel LaCivita or Stephanie Berger, 
AD/CVD Operations, Office III, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4243 
or (202) 482-2483, 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). We published 
the notice of initiation of this investigation on February 27, 2018.\1\ 
On June 26, 2018, we postponed the preliminary determination of this 
investigation. The revised deadline is now August 29, 2018.\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, and to all parties in the Central Records 
Unit, room B8024 of the main Department of Commerce building. 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.
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    \1\ See Rubber Bands from the People's Republic of China, Sri 
Lanka, and Thailand: Initiation of Less-Than-Fair-Value 
Investigations, 83 FR 8424 (February 27, 2018) (Initiation Notice).
    \2\ See Rubber Bands from the People's Republic of China and 
Thailand: Postponement of Preliminary Determinations in the Less-
Than-FairValue Investigations, 83 FR 29748 (June 26, 2018).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Rubber 
Bands from Thailand,'' dated concurrently with, and hereby adopted 
by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are rubber bands from 
Thailand. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to our 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 provided comments on the scope of the investigation as it 
appeared in the Initiation Notice.\6\ 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.\7\ We are preliminarily modifying the scope 
language as it appeared in the Initiation Notice. See the 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.
    \6\ See Greenbrier's and Conair's letter, ``Rubber Bands from, 
Thailand, China and Sri Lanka: Scope Comments,'' dated March 12, 
2018; Jafferjee's letter, ``Rubber Bands from Thailand: Scope 
Comments,'' dated March 12, 2018; and, the petitioner's letter, 
``Petition for the Imposition of Antidumping and Countervailing 
Duties on Rubber Bands from Thailand and China--Rebuttal Scope 
Comments,'' dated March 22, 2018.
    \7\ See Memorandum, ``Rubber Bands from Thailand: Scope Comments 
Decision Memorandum for the Preliminary Determination,'' dated 
concurrently with this notice (Preliminary Scope Decision 
Memorandum).
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Methodology

    We are conducting this investigation in accordance with section 731 
of the Act. We have calculated export prices in accordance with section 
772(a) of the Act. Normal value (NV) 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.

[[Page 45221]]

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination we 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.
    In this investigation, we preliminarily determined a zero rate for 
Liang Hah Heng International Rubber Co., Ltd. (Liang Hah Heng).\8\ 
Therefore, the only rate that is not zero, de minimis or based entirely 
on facts otherwise available is the rate calculated for U. Yong 
Industry Co., Ltd. (U. Yong).\9\ Consequently, the rate calculated for 
U. Yong is also assigned as the rate for all-other producers and 
exporters.
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    \8\ See Memorandum, ``Analysis Memorandum for the Preliminary 
Determination of the Antidumping Duty Investigation of Rubber Bands 
from Thailand: Liang Hah Heng International Rubber Co., Ltd. (Liang 
Hah Heng) and Hah Shung Heng Co. (Hah Shung Heng),'' dated 
concurrently with this notice (Liang Hah Heng's Preliminary Analysis 
Memorandum).
    \9\ See Memorandum, ``Analysis Memorandum for the Preliminary 
Determination of the Antidumping Duty Investigation of Rubber Bands 
from Thailand: U. Yong Industry Co., Ltd. (U. Yong),'' dated 
concurrently with this notice (U. Yong's Preliminary Analysis 
Memorandum).
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Preliminary Determination

    We preliminarily determine that the following estimated weighted-
average dumping margins exist:
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    \10\ We have preliminarily determined that Liang Hah Heng and 
its affiliated party, Hah Shung Heng Co. (Hah Shung Heng) are a 
single entity. See Memorandum, ``Less-Than-Fair-Value Investigation 
of Rubber Bands from Thailand: Affiliation and Collapsing Memorandum 
Regarding Liang Hah Heng International Rubber Co., Ltd. and Hah 
Shung Heng Co.,'' dated July 20, 2018.

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Exporter/producer                         average
                                                          dumping margin
                                                             (percent)
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Liang Hah Heng International Rubber Co., Ltd./Hah Shung             0.00
 Heng Co \10\...........................................
U. Yong Industry Co., Ltd...............................            5.86
All Others..............................................            5.86
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    Consistent with section 733(b)(3) of the Act, we disregard de 
minimis rates and preliminarily determine that individually examined 
respondents with de minimis rates have not made sales of subject 
merchandise at LTFV.

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we 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), we 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 respondents listed above will be 
equal to the company-specific estimated weighted-average dumping 
margins determined in this preliminary determination, except if that 
rate is zero or de minimis, no cash deposit will be required; (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.
    We normally adjust cash deposits for estimated antidumping duties 
by the amount of export subsidies countervailed in a companion 
countervailing duty (CVD) proceeding, when CVD provisional measures are 
in effect. Accordingly, where we preliminarily make an affirmative 
determination for countervailable export subsidies, we offset the 
estimated weighted-average dumping margin by the appropriate CVD rate.
    However, in the companion CVD preliminary determination, we have 
preliminarily determined that no countervailable subsidies are being 
provided to the production or exportation of subject merchandise, and 
therefore, we did not direct CBP to suspend liquidation of any such 
entries.\11\ Accordingly, we made no adjustment for the prohibited 
subsidy offset to the estimated weighted-average dumping margin. These 
suspension of liquidation instructions will remain in effect until 
further notice.
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    \11\ See Rubber Bands from Thailand: Preliminary Negative 
Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 83 FR 31728 
(July 9, 2018).
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Disclosure

    We intend to disclose to interested parties the calculations and 
analysis performed in connection with 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).

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
information relied upon in making our final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\12\ 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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    \12\ 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, we 
intend 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.

Postponement of Final Determination and Extension of Provisional 
Measures

    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

[[Page 45222]]

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 our 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 July 31, 2018, and August 1, 2018, in accordance with 19 CFR 
351.210(b)(2)(ii), Liang Hah Heng and U. Yong requested to postpone the 
final determination for a maximum of 135 days after the date of 
publication of the preliminary determination in the Federal Register, 
in the event that we issued an affirmative preliminary 
determination.\13\ Liang Hah Heng and U. Yong, pursuant to 19 CFR 
351.210(e)(2), also requested an extension of provisional measures from 
a four-month period to a period not more than six months in 
duration.\14\ 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) the requesting exporters account for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, we are postponing the final determination and 
extending the provisional measures from a four-month period to a period 
not greater than six months. Accordingly, we will make our final 
determination no later than 135 days after the date of publication of 
this preliminary determination.
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    \13\ See Liang Hah Heng's letter, ``Rubber Bands from Thailand: 
Request to Extend the Deadline for the Final Determination,'' dated 
July 31, 2018; U. Yong's letter, ``Rubber Bands from Thailand: 
Conditional Request for Extension of Final Determination,'' dated 
August 1, 2018.
    \14\ Id.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, we will notify the 
International Trade Commission (ITC) of our 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: August 29, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products subject to this investigation are bands made of 
vulcanized rubber, with a flat length, as actually measured end-to-
end by the band lying flat, no less than \1/2\ inch and no greater 
than 10 inches; with a width, which measures the dimension 
perpendicular to the length, actually of at least 3/64 inch and no 
greater than 2 inches; and a wall thickness actually from 0.020 inch 
to 0.125 inch. Vulcanized rubber has been chemically processed into 
a more durable material by the addition of sulfur or other 
equivalent curatives or accelerators. Subject products are included 
regardless of color or inclusion of printed material on the rubber 
band's surface, including but not limited to, rubber bands with 
printing on them, such as a product name, advertising, or slogan, 
and printed material (e.g., a tag) fastened to the rubber band by an 
adhesive or another temporary type of connection. The scope includes 
vulcanized rubber bands which are contained or otherwise exist in 
various forms and packages, such as, without limitation, vulcanized 
rubber bands included within a desk accessory set or other type of 
set or package, and vulcanized rubber band balls. The scope excludes 
products that consist of an elastomer loop and durable tag all-in-
one, and bands that are being used at the time of import to fasten 
an imported product.
    Excluded from the scope of this investigation are vulcanized 
rubber bands of various sizes with arrow shaped rubber protrusions 
from the outer diameter that exceeds at the anchor point a wall 
thickness of 0.125 inches and where the protrusion is used to loop 
around, secure and lock in place.
    Excluded from the scope of this investigation are yarn/fabric-
covered vulcanized rubber hair bands, regardless of size.
    Merchandise covered by this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under subheading 4016.99.3510. Merchandise covered by the 
scope may also enter under HTSUS subheading 4016.99.6050. While the 
HTSUS subheadings are 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. Postponement of Final Determination and Extension of Provisional 
Measures
V. Scope Comments
VI. Affiliation and Collapsing
VII. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
VIII. Date of Sale
IX. Product Comparisons
X. Export Price
XI. Normal Value
    A. Home Market Viability
    B. Affiliated-Party Transactions
    C. Level of Trade
    D. Cost of Production Analysis
    1. Cost Averaging Methodology
    a. Significance of Cost Changes
    b. Linkage Between Sales and Cost Information
    2. Calculation of COP
    3. Test of Comparison Market Sales Prices
    4. Results of the COP Test
    E. Calculation of NV Based on Comparison Market Prices
    F. Calculation of NV Based on Constructed Value
XII. Currency Conversion
XIII. Verification
XIV. Conclusion

[FR Doc. 2018-19332 Filed 9-5-18; 8:45 am]
 BILLING CODE 3510-DS-P