83 FR 19689 - Polyethylene Terephthalate Resin From Pakistan: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 87 (May 4, 2018)

Page Range19689-19691
FR Document2018-09511

The Department of Commerce (Commerce) preliminarily determines that polyethylene terephthalate resin (PET resin) from Pakistan is being, or is likely to be, sold in the United States at less than fair value. The period of investigation is July 1, 2016, through June 30, 2017.

Federal Register, Volume 83 Issue 87 (Friday, May 4, 2018)
[Federal Register Volume 83, Number 87 (Friday, May 4, 2018)]
[Notices]
[Pages 19689-19691]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09511]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-535-905]


Polyethylene Terephthalate Resin From Pakistan: 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 polyethylene terephthalate resin (PET resin) from Pakistan is 
being, or is likely to be, sold in the United States at less than fair 
value. The period of investigation is July 1, 2016, through June 30, 
2017.

DATES: Applicable May 4, 2018.

FOR FURTHER INFORMATION CONTACT: Lauren Caserta, 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) 482-4737.

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 October 23, 
2017.\1\ Commerce exercised its discretion to toll all deadlines 
affected by the closure of the Federal Government from January 20 
through 22, 2018. On February 22, 2018, Commerce postponed the 
preliminary determination of this investigation.\2\ The revised 
deadline for the preliminary determination of this investigation is now 
April 27, 2018.\3\
---------------------------------------------------------------------------

    \1\ See Polyethylene Terephthalate Resin from Brazil, Indonesia, 
the Republic of Korea, Pakistan, and Taiwan: Initiation of Less-
Than-Fair-Value Investigations, 82 FR 48977 (October 23, 2017) 
(Initiation Notice).
    \2\ See Polyethylene Terephthalate from Brazil, Indonesia, the 
Republic of Korea, Pakistan, and Taiwan: Postponement of Preliminary 
Determinations of Antidumping Duty Investigations, 83 FR 7655 
(February 22, 2018).
    \3\ See Memorandum, ``Deadlines Affected by the Shutdown of the 
Federal Government,'' (Tolling Memorandum), dated January 23, 2018. 
All deadlines in this segment of the proceeding have been extended 
by 3 days.
---------------------------------------------------------------------------

    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, 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.
---------------------------------------------------------------------------

    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of 
Polyethylene Terephthalate Resin from Indonesia'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The merchandise covered by this investigation is PET resin from 
Pakistan. 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\ 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 
Decision Memorandum. After evaluating the comments, Commerce is 
preliminarily modifying the scope language as it appeared in the 
Initiation Notice to exclude PET-glycol resin. See the revised scope in 
Appendix I to this notice.
---------------------------------------------------------------------------

    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \6\ See Initiation Notice.
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) 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. In addition, Commerce has preliminarily relied upon facts 
available under section 776(a)(1) of the Act for Novatex. For a full 
description of the methodology underlying the

[[Page 19690]]

preliminary determination, 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 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. Commerce calculated an individual estimated 
weighted-average dumping margin for Novatex, the only individually 
examined exporter/producer in this investigation. Because the only 
individually calculated dumping margin is not zero, de minimis, or 
based entirely on facts otherwise available, the estimated weighted-
average dumping margin calculated for Novatex is the margin assigned to 
all-other producers and exporters, pursuant to section 735(c)(5)(A) of 
the Act.

Preliminary Determination

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Novatex Limited \7\.........................................        7.75
All-Others..................................................        7.75
------------------------------------------------------------------------

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 margins 
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.
---------------------------------------------------------------------------

    \7\ Commerce preliminarily determines that Novatex Limited and 
Gatron Industries Limited are a single entity. See Preliminary 
Decision Memorandum.
---------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in 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, Commerce intends to 
verify the information relied upon in making its 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.\8\ 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.
---------------------------------------------------------------------------

    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    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 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 
the petitioner. Section 351.210(e)(2) of Commerce's 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 April 9, 2018, pursuant to 19 CFR 351.210(e), Novatex requested 
that Commerce postpone the final determination and that provisional 
measures be extended to a period not to exceed six months.\9\ On April 
12, 2018, the petitioners \10\ also requested that Commerce postpone 
the final determination.\11\ 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 exporter accounts for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the date of publication of this preliminary determination.
---------------------------------------------------------------------------

    \9\ See Novatex's Letter, ``Polyethylene Terephthalate Resin 
from Pakistan: Novatex Request to Postpone Final Determination,'' 
dated April 9, 2018.
    \10\ The petitioners are DAK Americas LLC, Indorama Ventures 
USA, Inc., M&G Polymers USA, LLC, and Nan Ya Plastics Corporation, 
America.
    \11\ See Letter from the petitioners, ``Polyethylene 
Terephthalate Resin from Brazil, Indonesia, the Republic of Korea, 
Pakistan, and Taiwan--Petitioners' Request to Extend the Antidumping 
Duty Determinations,'' dated April 12, 2018.

---------------------------------------------------------------------------

[[Page 19691]]

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 27, 2018.
James Maeder,
Associate Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations performing the duties of Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is polyethylene 
terephthalate (PET) resin having an intrinsic viscosity of at least 
70, but not more than 88, milliliters per gram (0.70 to 0.88 
deciliters per gram). The scope includes blends of virgin PET resin 
and recycled PET resin containing 50 percent or more virgin PET 
resin content by weight, provided such blends meet the intrinsic 
viscosity requirements above. The scope includes all PET resin 
meeting the above specifications regardless of additives introduced 
in the manufacturing process.
    The scope excludes PET-glycol resin, also referred to as PETG. 
PET-glycol resins are manufactured by replacing a portion of the raw 
material input monoethylene glycol (MEG) with one of five glycol 
modifiers: Cyclohexanedimethanol (CHDM), diethylene glycol (DEG), 
neopentyl glycol (NPG), isosorbide, or spiro glycol. Specifically, 
excluded PET-glycol resins must contain a minimum of 10 percent, by 
weight, of CHDM, DEG, NPG, isosorbide or spiro glycol, or some 
combination of these glycol modifiers. Unlike subject PET resin, 
PET-glycol resins are amorphous resins that are not solid-stated and 
cannot be crystallized or recycled.
    The merchandise subject to this investigation is properly 
classified under subheadings 3907.61.0000 and 3907.69.0000 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the merchandise covered by this 
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. Comparisons to Fair Value
    1. Determination of Comparison Method
    2. Results of the Differential Pricing Analysis
VIII. Date of Sale
IX. Product Comparisons
X. Export Price and Constructed Export Price
XI. Duty Drawback
XII. Normal Value
    A. Home Market Viability and Comparison Market
    B. Affiliated-Party Transactions and Arm's-Length Test
    C. Level of Trade
    D. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    E. Calculation of NV Based on Comparison Market Prices
XIII. Currency Conversion
XIV. Verification
XV. Conclusion

[FR Doc. 2018-09511 Filed 5-3-18; 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
DatesApplicable May 4, 2018.
ContactLauren Caserta, 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) 482-4737.
FR Citation83 FR 19689 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR