82 FR 11538 - Emulsion Styrene-Butadiene Rubber From Brazil: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Negative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 36 (February 24, 2017)

Page Range11538-11540
FR Document2017-03631

The Department of Commerce (the Department) preliminarily determines that emulsion styrene-butadiene rubber (ESB rubber) from Brazil is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2015, through June 30, 2016.

Federal Register, Volume 82 Issue 36 (Friday, February 24, 2017)
[Federal Register Volume 82, Number 36 (Friday, February 24, 2017)]
[Notices]
[Pages 11538-11540]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03631]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-849]


Emulsion Styrene-Butadiene Rubber From Brazil: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, Negative 
Determination of Critical Circumstances, Postponement of Final 
Determination, and Extension of Provisional Measures

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that emulsion styrene-butadiene rubber (ESB rubber) from 
Brazil is being, or is likely to be, sold in the United States at less 
than fair value (LTFV). The period of investigation (POI) is July 1, 
2015, through June 30, 2016.

DATES: Effective February 24, 2017.

FOR FURTHER INFORMATION CONTACT: Drew Jackson, AD/CVD Operations, 
Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-4406.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on August 19, 
2016.\1\ The Department postponed the preliminary determination of this 
investigation until February 16, 2017.\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 Preliminary Decision Memorandum 
and the electronic version are identical in content.
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    \1\ See Emulsion Styrene-Butadiene Rubber from Brazil, the 
Republic of Korea, Mexico and Poland: Initiation of Less Than Fair 
Value Investigations, 81 FR 55438 (August 19, 2016) (Initiation 
Notice).
    \2\ See Emulsion Styrene-Butadiene Rubber from Brazil, the 
Republic of Korea, Mexico, and Poland: Postponement of Preliminary 
Determination of Sales at Less Than Fair Value Investigations, 81 FR 
85208 (November 25, 2016).
    \3\ See Memorandum to Ronald K. Lorentzen, Acting Assistant 
Secretary for Enforcement and Compliance, from Gary Taverman, 
Associate Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, entitled, ``Decision Memorandum for 
the Preliminary Determination in the Less Than Fair Value 
Investigation of Emulsion Styrene-Butadiene Rubber from Brazil,'' 
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 ESB rubber from 
Brazil. For a complete description of the scope of this investigation, 
see Appendix I.

[[Page 11539]]

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice. The Department is not preliminarily modifying the 
scope language as it appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. Constructed export prices have been calculated 
in accordance with section 772(b) of the Act. Normal value (NV) is 
calculated in accordance with section 773 of the Act. For a full 
description of the methodology underlying our preliminary conclusions, 
see the Preliminary Decision Memorandum.

Preliminary Negative Determination of Critical Circumstances

    In accordance with section 733(e) of the Act and 19 CFR 351.206, we 
preliminarily find that critical circumstances do not exist for 
mandatory respondent, Arlanxeo Brasil S.A. (Arlanxeo Brasil), or for 
exporters and producers not individually investigated (i.e., ``all 
others''). For a full description of the methodology and results of our 
critical circumstances analysis, see the Preliminary Decision 
Memorandum.

All-Others Rate

    Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that 
in the preliminary determination the Department shall determine an 
estimated all-others rate for all exporters and producers not 
individually investigated, which 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.
    The Department calculated a company-specific rate for Arlanxeo 
Brasil that is not zero, de minimis or determined entirely under 
section 776 of the Act. Therefore, for purposes of determining the 
``all-others'' rate and pursuant to section 735(c)(5)(A) of the Act, we 
are using the weighted-average dumping margin calculated for Arlanxeo 
Brasil as the estimated weighted-average dumping margin assigned to all 
other producers and exporters of the merchandise under consideration.

Preliminary Determination

    The Department preliminarily determines that the following 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margins
                                                               (percent)
------------------------------------------------------------------------
Arlanxeo Brasil S.A.........................................       34.44
All-Others..................................................       34.44
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, the Department 
will direct U.S. Customs and Border Protection (CBP) to suspend 
liquidation of subject merchandise as described in the scope of the 
investigation section 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), the Department will 
instruct CBP to require a cash deposit equal to the weighted-average 
amount by which normal value exceeds U.S. price. These suspension of 
liquidation instructions will remain in effect until further notice.

Disclosure

    We intend to disclose the calculations performed to interested 
parties in this proceeding 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) 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 final verification report is issued in 
this proceeding, and rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\6\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this proceeding 
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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    \6\ 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, the 
Department intends 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 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 
Petitioners. Section 351.210(e)(2) of the Department's regulations 
requires that requests by respondents for postponement of a final 
antidumping 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 January 17, 2017, pursuant to 19 CFR 351.210(e), Arlanxeo Brasil 
requested that the Department postpone the final determination and that 
provisional measures be extended to a period not to exceed six 
months.\7\ In accordance with section 735(a)(2)(A) of the Act and 19 
CFR 351.210(b)(2)(ii), because: (1) Our preliminary determination is 
affirmative; (2) the requesting exporter accounts for a significant 
proportion of exports of the

[[Page 11540]]

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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    \7\ See Letter to the Secretary of Commerce from Arlanxeo 
Brasil, entitled, ``Emulsion Styrene-Butadiene Rubber from Brazil: 
Arlanxeo's Request for Extension of Final Determination,'' dated 
January 17, 2017.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, we are notifying the 
International Trade Commission (ITC) of our preliminary determination. 
If our 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 our final determination whether these 
imports are materially injuring, or threaten material injury to, the 
U.S. industry.
    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: February 16, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I



Scope of the Investigation

    For purposes of this investigation, the product covered is cold-
polymerized emulsion styrene-butadiene rubber (ESB rubber). The 
scope of the investigation includes, but is not limited to, ESB 
rubber in primary forms, bales, granules, crumbs, pellets, powders, 
plates, sheets, strip, etc. ESB rubber 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.
    ESB rubber is produced and sold in accordance with a generally 
accepted set of product specifications issued by the International 
Institute of Synthetic Rubber Producers (IISRP). The scope of the 
investigation covers grades of ESB rubber 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 ESB rubber with other 
polymers, high styrene resin master batch, carbon black 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). ESB rubber 
is described by Chemical Abstract 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. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
VI. Date of Sale
VII. Product Comparisons
VIII. Constructed Export Price
IX. Normal Value
    A. Home Market Viability
    B. Level of Trade
    C. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    D. Calculation of NV Based on Comparison-Market Prices
X. Preliminary Negative Determination of Critical Circumstances
    A. Legal Framework
    B. Critical Circumstances Analysis
    C. Analysis
XI. Currency Conversion
XII. Conclusion

[FR Doc. 2017-03631 Filed 2-23-17; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective February 24, 2017.
ContactDrew Jackson, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-4406.
FR Citation82 FR 11538 

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