[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Notices]
[Pages 74889-74891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-20887]



[[Page 74889]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-927]


Certain Epoxy Resins From India: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final Determination 
With Final Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain epoxy resins (epoxy resins) from 
India for the period of investigation (POI) January 1, 2023, through 
December 31, 2023. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable September 13, 2024.

FOR FURTHER INFORMATION CONTACT: Eliza DeLong or Colin Thrasher, AD/CVD 
Operations, Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3878 or (202) 482-6458, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this countervailing duty (CVD) 
investigation on April 29, 2024.\1\ On May 28, 2024, Commerce postponed 
the preliminary determination until September 3, 2024.\2\ On July 22, 
2024, Commerce tolled certain deadlines in this administrative 
proceeding by seven days.\3\ The deadline for the preliminary 
determination is now September 9, 2024.
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    \1\ See Certain Epoxy Resins from the People's Republic of 
China, India, the Republic of Korea, and Taiwan: Initiation of 
Countervailing Duty Investigations, 89 FR 33319 (April 29, 2024) 
(Initiation Notice).
    \2\ See Certain Epoxy Resins from the People's Republic of 
China, India, the Republic of Korea, and Taiwan: Postponement of 
Preliminary Determinations in the Countervailing Duty 
Investigations, 89 FR 46016 (May 28, 2024).
    \3\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
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    For a complete description of events that followed the initiation 
of this investigation, see the Preliminary Decision Memorandum.\4\ A 
list of topics discussed 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://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of Certain Epoxy Resins from India,'' 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 epoxy resins. For a 
complete description of the scope of this investigation, see Appendix 
I.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\6\
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \6\ See Initiation Notice.
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    We received several comments concerning the scope of this 
investigation, as well as in the companion less-than-fair-value (LTFV) 
and CVD investigations of epoxy resins, as it appeared in the 
Initiation Notice. We are currently evaluating the scope comments filed 
by the interested parties. We intend to issue our preliminary decision 
regarding the scope of the LTFV and CVD investigations in the 
preliminary determinations of the companion LTFV investigations, the 
deadline for which is November 6, 2024.\7\ We will incorporate the 
scope decisions from the LTFV investigations into the scope of the 
final CVD determination for this investigation after considering any 
relevant comments submitted in scope case and rebuttal briefs.\8\
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    \7\ See Certain Epoxy Resins from the People's Republic of 
China, India, the Republic of Korea, Taiwan, and Thailand: 
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 89 FR 65583 (August 12, 2024) (LTFV Prelim 
Postponement).
    \8\ The deadline for interested parties to submit scope case and 
rebuttal briefs will be established in the preliminary scope 
decision memorandum.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\9\ Commerce notes that, in making these findings, it relied, 
in part, on facts available and, because it finds that Champion 
Advanced Materials (Champion) did not act to the best of its ability to 
respond to Commerce's requests for information, Commerce has drawn an 
adverse inference where appropriate in selecting from among the facts 
otherwise available.\10\ For a full description of the methodology 
underlying our preliminary determination, see the Preliminary Decision 
Memorandum.
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    \9\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
    \10\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination with the final determination in 
the companion LTFV investigation of epoxy resins from India based on a 
request made by the petitioner.\11\ Consequently, the final CVD 
determination will be issued on the same date as the final LTFV 
determination, which is currently scheduled to be issued no later than 
January 21, 2025, unless postponed.\12\
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    \11\ See Petitioner's Letter, ``Petitioner's Request to Align 
Countervailing Duty Investigation Final Determination with 
Antidumping Duty Investigation Final Determination,'' dated August 
15, 2024. The petitioner is the U.S. Epoxy Resin Producers Ad Hoc 
Coalition.
    \12\ See LTFV Prelim Postponement.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
rates that are zero, de minimis, or based entirely under section 776 of 
the Act.
    In this investigation, Commerce preliminarily assigned a rate based 
entirely on facts available to Champion.

[[Page 74890]]

Therefore, the only rate that is not zero, de minimis or based entirely 
on facts otherwise available is the rate calculated for Atul Limited 
(Atul). Consequently, the rate calculated for Atul is also assigned as 
the rate for all-other producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Atul Limited............................................            1.55
Champion Advanced Materials.............................        * 113.83
All Others..............................................            1.55
------------------------------------------------------------------------
* Rate based on an adverse inference.

Suspension of Liquidation

    In accordance with sections 703(d)(1)(B) and (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 
the scope of the investigation entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of this notice in 
the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce 
will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this preliminary 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).
    Consistent with 19 CFR 351.224(e), Commerce will analyze and, if 
appropriate, correct any timely allegations of significant ministerial 
errors by amending the preliminary determination. However, consistent 
with 19 CFR 351.224(d), Commerce will not consider incomplete 
allegations that do not address the significance standard under 19 CFR 
351.224(g) following the preliminary determination. Instead, Commerce 
will address such allegations in the final determination together with 
issues raised in the case briefs or other written comments.

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination 
for Atul. Because Champion did not respond to Commerce's request for 
information in a timely manner, and Commerce preliminarily determines 
that Champion failed to cooperate by not acting to the best of its 
ability to respond to Commerce's request for information pursuant to 
section 776(b) of the Act, Commerce does not intend to conduct 
verification of Champion's information.

Public Comment

    All interested parties will have the opportunity to submit scope 
case and rebuttal briefs on the preliminary decision regarding the 
scope of the LTFV and CVD investigations. The deadlines to submit scope 
case and rebuttal briefs will be provided in the preliminary scope 
decision memorandum. For all scope case and rebuttal briefs, parties 
must file identical documents simultaneously on the records of the 
ongoing LTFV and CVD epoxy resins investigations. No new factual 
information or business proprietary information may be included in 
either scope case or rebuttal briefs.
    Case briefs or other written comments on non-scope issues 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 the case briefs, may be filed not later than five days 
after the date for filing case briefs.\13\ Interested parties who 
submit case briefs or rebuttal briefs in this proceeding must submit: 
(1) a table of contents listing each issue; and (2) a table of 
authorities.\14\
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    \13\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \14\ See 19 CFR 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public, executive summary for each issue raised in their briefs.\15\ 
Further, we request that interested parties limit their executive 
summary of each issue to no more than 450 words, not including 
citations. We intend to use the executive summaries as the basis of the 
comment summaries included in the issues and decision memorandum that 
will accompany the final determination in this investigation. We 
request that interested parties include footnotes for relevant 
citations in the executive summary of each issue. Note that Commerce 
has amended certain of its requirements pertaining to the service of 
documents in 19 CFR 351.303(f).\16\
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    \15\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \16\ See APO and Service Final Rule, 88 FR at 67069.
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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 via ACCESS 
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, and a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing.\17\ Parties should confirm by 
telephone the date, time, and location of the hearing two days before 
the scheduled date.
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    \17\ See 19 CFR 351.310(d).
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U.S. International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its 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 imports of epoxy 
resins from India 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 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).

    Dated: September 9, 2024.
Abdelali Elouaradia,
Deputy 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

[[Page 74891]]

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 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 this 
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 these 
investigations. 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.
    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.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Injury Test
IV. Diversification of India's Economy
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Recommendation

[FR Doc. 2024-20887 Filed 9-12-24; 8:45 am]
BILLING CODE 3510-DS-P