[Federal Register Volume 87, Number 83 (Friday, April 29, 2022)]
[Notices]
[Pages 25447-25449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09246]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-844]


Emulsion Styrene-Butadiene Rubber From Italy: 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 emulsion styrene-butadiene rubber (ESBR) from Italy is being, or 
is likely to be, sold in the United States at less than fair value 
(LTFV). The period of investigation (POI) is October 1, 2020, through 
September 30, 2021. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable April 29, 2022.

FOR FURTHER INFORMATION CONTACT: Zachary Le Vene, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0056.

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 on December 
10, 2021.\1\ For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\2\ 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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    \1\ See Emulsion Styrene-Butadiene Rubber from the Czech 
Republic, Italy, and the Russian Federation: Initiation of Less-
Than-Fair-Value Investigations, 86 FR 70447 (December 10, 2021) 
(Initiation Notice).
    \2\ See Memorandum, ``Emulsion Styrene-Butadiene Rubber from 
Italy: Decision Memorandum for the Preliminary Affirmative 
Determination of Sales at Less-Than-Fair-Value,'' 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 ESBR from Italy. For a 
complete description of the scope of this investigation, see Appendix 
I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ On January 10, 
2022, we received timely-filed comments from the petitioner regarding 
the scope of this investigation that affirmed the scope published in 
the Initiation Notice.\5\ We received no rebuttal comments regarding 
the scope of the investigation. Thus, Commerce is not preliminarily 
modifying the scope language as it appeared in the Initiation Notice.
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Initiation Notice, 86 FR at 70451.
    \5\ See Petitioner's Letter, ``Emulsion Styrene-Butadiene Rubber 
from Czech Republic, Italy and Russian Federation: Petitioner's 
Comments on Scope and Product Characteristics,'' dated January 10, 
2022.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. The only mandatory respondent, Versalis S.p.A. 
(Veralis), submitted a letter of non-participation for this 
investigation on January 7, 2022.\6\ As a result, pursuant to section 
776(a) and (b) of the Act, Commerce has preliminarily relied upon facts 
otherwise available, with adverse inferences for Versalis. For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.
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    \6\ See Versalis's Letter, ``Emulsion Styrene-Butadiene Rubber 
from Italy: Notification of Non-Participation in Investigation,'' 
dated January 7, 2022.
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All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the

[[Page 25448]]

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.
    Pursuant to section 735(c)(5)(B) of the Act, if the estimated 
weighted-average dumping margins established for all exporters and 
producers individually examined are zero, de minimis or determined 
based entirely on facts otherwise available, Commerce may use any 
reasonable method to establish the estimated weighted-average dumping 
margin for all other producers or exporters.
    Commerce has preliminarily determined the estimated weighted-
average dumping margin for the individually examined respondent under 
section 776 of the Act. Consequently, pursuant to section 735(c)(5)(B) 
of the Act, Commerce's normal practice under these circumstances has 
been to calculate the all-others rate as a simple average of the 
alleged dumping margin(s) from the petition.\7\ For a full description 
of the methodology underlying Commerce's analysis, see the Preliminary 
Decision Memorandum.
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    \7\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value: Sodium Nitrite from the Federal Republic of 
Germany, 73 FR 21909, 21912 (April 23, 2008), unchanged in Notice of 
Final Determination of Sales at Less Than Fair Value: Sodium Nitrite 
from the Federal Republic of Germany, 73 FR 38986, 38987 (July 8, 
2008), and accompanying Issues and Decision Memorandum at Comment 2; 
Notice of Final Determination of Sales at Less Than Fair Value: Raw 
Flexible Magnets from Taiwan, 73 FR 39673, 39674 (July 10, 2008); 
and Steel Threaded Rod from Thailand: Preliminary Determination of 
Sales at Less Than Fair Value and Affirmative Preliminary 
Determination of Critical Circumstances, 78 FR 79670, 79671 
(December 31, 2013), unchanged in Steel Threaded Rod from Thailand: 
Final Determination of Sales at Less Than Fair Value and Affirmative 
Final Determination of Critical Circumstances, 79 FR 14476, 14477 
(March 14, 2014).
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Preliminary Determination

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

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Exporter/producer                         average
                                                          dumping margin
                                                             (percent)
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Versalis S.p.A..........................................         * 28.97
All Others..............................................         * 28.97
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* (AFA).

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 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. 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 any public announcement or, if there is no public announcement, 
within five days of the date of publication of the notice of 
preliminary determination in the Federal Register, in accordance with 
19 CFR 351.224(b). However, because Commerce preliminarily applied AFA 
to the sole individually examined company, Versalis, 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 examined respondent in this investigation did not 
provide information requested by Commerce, and Commerce preliminarily 
determines the sole examined respondent to have been uncooperative, we 
will not conduct verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than 30 
days after the date of publication of the preliminary determination, 
unless the Secretary alters the time limit. Rebuttal briefs, limited to 
issues raised in case briefs, may be submitted no later than seven days 
after the deadline date for case briefs.\8\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\9\ 
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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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \9\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19, 85 FR 17006 (March 26, 2020) (Temporary Rule); see also 
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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    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.

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.

[[Page 25449]]

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: April 25, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are cold-plymerized 
emulsion styrene-butadiene rubber (ESBR). The scope of the 
investigation includes, but is not limited to, ESBR in primary 
forms, bales, granules, crumbs, pellets, powders, plates, sheets, 
strip, etc. ESBR consists of non-pigmented rubbers and oil-extended 
non-pigmented rubbers, both of which contain at least one percent of 
organic acids from the emulsion polymerization process.
    ESBR is produced and sold in accordance with a generally 
accepted set of product specifications issued by the Intenrnational 
Institute of Synthetic Rubber Producers (IISRP). The scope of the 
investigation covers grades of ESBR included in the IISRP 1500 and 
1700 series of synthetic rubbers. The 1500 grades are light in color 
and are often described as ``Clear'' or ``White Rubber.'' The 1700 
grades are oil-extended and thus darker in color, and are often 
called ``Brown Rubber.''
    Specifically excluded from the scope of this investigation are 
products which are manufactured by blending ESBR with other 
polymers, high styrene resin master batch, carbon clack master batch 
(i.e., IISRP 1600 series and 1800 series) and latex (an intermediate 
product).
    The products subject to this investigation are currently 
classifiable under subheadings 4002.19.0015 and 4002.19.0019 of the 
Harmonized Tariff Schedule of the United States (HTSUS). ESBR is 
described by Chemical Abstracts Services (CAS) Registry No. 9003-55-
8. This CAS number also refers to other types of styrene-butadiene 
rubber. Although the HTSUS subheadings and CAS registry number 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 Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Use of Facts Available with Adverse Inferences
VII. All-Others Rate
VIII. Verification
IX. Recommendation

[FR Doc. 2022-09246 Filed 4-28-22; 8:45 am]
BILLING CODE 3510-DS-P