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[Federal Register Volume 89, Number 219 (Wednesday, November 13, 2024)]
[Notices]
[Pages 89594-89597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26255]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-166]

Certain Epoxy Resins From the People's Republic of China: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value 
and Preliminary Affirmative Determination of Critical Circumstances

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that certain epoxy resins (epoxy resins) 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 (POI) is October 1, 2023, through March 31, 2024. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable November 13, 2024.

FOR FURTHER INFORMATION CONTACT: Mark Flessner, AD/CVD Operations, 
Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: 202-482-6312.

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 LTFV investigation on April 
23, 2024.\1\
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    \1\ See Certain Epoxy Resins from the People's Republic of 
China, India, the Republic of Korea, Taiwan, and Thailand: 
Initiation of Less-Than-Fair-Value Investigations, 89 FR 33324 
(April 29, 2024) (Initiation Notice).
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    On July 22, 2024, Commerce tolled certain deadlines in this 
administrative proceeding by seven days.\2\ On August 12, 2024, 
Commerce postponed the preliminary determination of this investigation 
until November 6, 2024.\3\
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    \2\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
    \3\ See Certain Epoxy Resins from the People's Republic of 
China, India, the Republic of Korea, Taiwan, and Thailand: 
Postponement of Preliminary Determinations of Antidumping Duty 
Investigations, 89 FR 65583 (August 12, 2024).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\4\ 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://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of Certain Epoxy Resins from the People's Republic of China,'' 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 from 
China. 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\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice, as well as additional language proposed by 
Commerce. 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\ Commerce is 
not preliminarily modifying the scope language as it appeared in the 
Initiation Notice. See the scope in Appendix I to this notice. Pursuant 
to 19 CFR 351.309(c)(2), interested parties may submit additional 
comments on the scope of this investigation in scope case briefs, which 
may be submitted no later than 30 days after the issuance of the

[[Page 89595]]

Preliminary Scope Decision Memorandum.\8\
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \6\ See Initiation Notice, 89 FR at 33324-25.
    \7\ See Memorandum, ``Less-Than-Fair-Value and Countervailing 
Duty Investigations of Certain Epoxy Resins from the People's 
Republic of China, India, the Republic of Korea, Taiwan, and 
Thailand: Preliminary Scope Decision Memorandum,'' dated 
concurrently with this preliminary determination (Preliminary Scope 
Decision Memorandum).
    \8\ Id.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with 772(a) of the Act. Because China is a non-market 
economy, within the meaning of section 771(18) of the Act, Commerce has 
calculated normal value in accordance with section 773(c) of the Act. 
Furthermore, pursuant to sections 776(a) and (b) of the Act, Commerce 
has preliminarily relied upon facts otherwise available, with adverse 
inferences, for the China-wide entity, which includes (1) Huntsman 
Advanced Materials (Guangdong) Company Ltd.; (2) Artmate Co. Ltd.; (3) 
Changzhou Original Chemical Co., Ltd.; (4) Jiangsu Ruiheng New Material 
Technology Co., Ltd.; (5) Jiangsu Sanmu Group Co., Ltd.; (6) Jushi 
Group Company Ltd.; (7) Mercury Far East Enterprise Ltd.; and (8) 
Shandong Deyuan Epoxy Resin Co., Ltd. For a full description of the 
methodology underlying the preliminary determination, see the 
Preliminary Decision Memorandum.

Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 733(e) of the Act and 19 CFR 351.206(c), 
Commerce preliminarily determines that critical circumstances exist 
with respect to imports of epoxy resins from China for the China-wide 
entity. For a full description of the methodology and results of 
Commerce's critical circumstances analysis, see the Preliminary 
Decision Memorandum.

Combination Rates

    In the Initiation Notice,\9\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\10\ In this case, because no respondent 
qualified for a separate rate, producer/exporter combination rates were 
not calculated. For a full description of the separate rate status of 
interested parties in this investigation, see the Preliminary Decision 
Memorandum.
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    \9\ See Initiation Notice, 89 FR at 33328-33329.
    \10\ 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,'' (April 5, 2005) (Policy Bulletin 05.1), available at 
https://access.trade.gov/Resources/policy/bull05-1.pdf.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margin exists:

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                                                                                     Cash deposit rate (adjusted
                  Producer/exporter                    Estimated weighted-average        for subsidy offset
                                                        dumping margin (percent)             (percent))
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China-Wide Entity...................................                     354.99 *                        344.45
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* Rate based on facts available with adverse inferences.

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 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, as discussed below. 
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 weighted-average amount by which normal value exceeds U.S. 
price, as indicated in the chart above as follows: (1) for all 
combinations of China producers/exporters of merchandise under 
consideration that have not established eligibility for their own 
separate rates, the cash deposit rate will be equal to the estimated 
weighted-average dumping margin established for the China-wide entity; 
and (2) for all third-county exporters of merchandise under 
consideration not listed in the table above, the cash deposit rate is 
the cash deposit rate applicable to the China-wide entity that supplied 
that third-country exporter.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of: (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise from the China-wide entity. In accordance with section 
733(e)(2)(A) of the Act, the suspension of liquidation shall apply to 
all unliquidated entries of merchandise from the China-wide entity that 
were entered, or withdrawn from warehouse, for consumption on or after 
the date which is 90 days before the publication of this 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 has made a preliminary 
affirmative determination for domestic subsidy pass-through or export 
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted 
rates may be found in the ``Preliminary Determination'' section's chart 
of estimated weighted-average dumping margins above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margin calculated in this preliminary determination unadjusted for the 
passed-through domestic subsidies or for export subsidies at the time 
the CVD provisional measures expire.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a 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). However,

[[Page 89596]]

because Commerce preliminarily applied adverse facts available (AFA) to 
the China-wide entity in this investigation, in accordance with section 
776 of the Act, and the applied AFA rate is based solely on the 
petition, there are no calculations to disclose.

Verification

    Because the mandatory respondent in this investigation did not 
provide information requested by Commerce, and Commerce preliminarily 
determines that the mandatory respondent was uncooperative, 
verification will not be conducted.

Public Comment

    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance no 
later than 14 days after the date of publication of the preliminary 
determination, unless Commerce alters the time limit.\11\ Rebuttal 
briefs, limited to issues raised in case briefs, may be submitted not 
later than five days after the date for filing case briefs.\12\ 
Interested parties who submit case or rebuttal briefs in this 
proceeding must submit: (1) a table of contents listing each issue; and 
(2) a table of authorities.\13\
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    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \12\ Id.
    \13\ 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 briefs 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.\14\ 
Further, we request that interested parties limit their public 
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 public 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).\15\
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    \14\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \15\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 
67069, 67077 (September 29, 2023).
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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 and 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.

Final Determination

    Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that 
Commerce will issue the final determination within 75 days after the 
date of its preliminary determination. Accordingly, Commerce will make 
its final determination no later than 75 days after the signature date 
of this preliminary determination.

U.S. International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its preliminary 
determination of sales at LTFV. 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: November 6, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary, for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise subject to this investigation are fully or 
partially uncured epoxy resins, also known as epoxide resins, 
polyepoxides, oxirane resins, ethoxyline 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 the 
investigations 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 this 
investigation. 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.

[[Page 89597]]

    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. Period of Investigation
IV. Discussion of the Methodology
V. Preliminary Affirmative Determination of Critical Circumstances
VI. Adjustment Under Section 777A(f) of the Act
VII. Adjustment to Cash Deposit Rate for Export Subsidies
VIII. Recommendation

[FR Doc. 2024-26255 Filed 11-12-24; 8:45 am]
BILLING CODE 3510-DS-P
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