83 FR 19696 - Polyethylene Terephthalate Resin From Taiwan: 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 Range19696-19699
FR Document2018-09515

The Department of Commerce (Commerce) preliminarily determines that polyethylene terephthalate resin (PET resin) from Taiwan 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, 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 19696-19699]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09515]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-862]


Polyethylene Terephthalate Resin From Taiwan: 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 Taiwan 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, 2016, through June 
30, 2017.

DATES: Applicable May 4, 2018.

FOR FURTHER INFORMATION CONTACT: Jun Jack Zhao or Alexander Cipolla, 
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) 482-1396 
or (202) 482-4956, respectively.

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\ On January 23, 2018, Commerce exercised its discretion to toll 
all deadlines affected by the closure of the Federal Government from 
January 20, 2018, through January 22, 2018.\2\ On February 22, 2018, 
Commerce postponed the preliminary determination of this 
investigation.\3\ As a result, the revised deadline for the preliminary 
determination of this investigation is now April 27, 2018.
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    \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 Memorandum, ``Deadlines Affected by the Shutdown of the 
Federal Government,'' dated January 23, 2018.
    \3\ 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).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary

[[Page 19697]]

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.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of 
Polyethylene Terephthalate Resin from Taiwan'' 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 PET resin from Taiwan. 
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.
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \6\ See Initiation Notice.
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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 section 772(a) of the Act. Constructed export prices 
also 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 the 
preliminary determination, see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(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. In this investigation, Commerce calculated 
estimated weighted-average dumping margins for Far Eastern New Century 
Corporation and Shinkong Synthetic Fibers Corporation that are not 
zero, de minimis, or based entirely on facts otherwise available. 
Commerce calculated the all-others' rate using a weighted average of 
the estimated weighted-average dumping margins calculated for the 
examined respondents using each company's publicly-ranged values for 
the merchandise under consideration.\7\
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    \7\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated weighted-average 
dumping margins calculated for the examined respondents; (B) a 
simple average of the estimated weighted-average dumping margins 
calculated for the examined respondents; and (C) a weighted-average 
of the estimated weighted-average dumping margins calculated for the 
examined respondents using each company's publicly-ranged U.S. sale 
quantities for the merchandise under consideration. Commerce then 
compares (B) and (C) to (A) and selects the rate closest to (A) as 
the most appropriate rate for all other producers and exporters. See 
Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, 
and the United Kingdom: Final Results of Antidumping Duty 
Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). As complete publicly ranged sales data was 
available, Commerce based the all-others rate on the publicly ranged 
sales data of the mandatory respondents. For a complete analysis of 
the data, please see the All-Others' Rate Calculation Memorandum.
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Preliminary Determination

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/Producer                         dumping
                                                                margin
                                                               (percent)
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Far Eastern New Century Corporation, Far Eastern Textile           11.89
 Ltd., and Worldwide Polychem (HK), Ltd. (collectively, Far
 Eastern) \8\...............................................
Shinkong Synthetic Fibers Corporation.......................        9.02
All-Others..................................................       10.99
------------------------------------------------------------------------

Suspension of Liquidation
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    \8\ Commerce preliminarily determines that Far Eastern New 
Century Corporation and Worldwide Polychem (HK) Limited are a single 
entity, and Far Eastern New Century Corporation to be the successor-
in-interest of Far Eastern Textile Ltd. See Preliminary Decision 
Memorandum.
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    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.
    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. On April 20, 2018, 
Commerce preliminarily determined that critical circumstances exist for 
imports of PET resin from Taiwan produced or exported by Far Eastern 
and all other producers/exporters.\9\ Accordingly, for Far Eastern and 
all other producers/exporters, in accordance with section 733(e)(2)(A) 
of the Act, the suspension of liquidation shall apply to unliquidated 
entries of subject merchandise entered, or withdrawn from warehouse, 
for consumption on or after the date which is 90 days before the 
publication of this notice.
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    \9\ See Antidumping Duty Investigations on Polyethylene 
Terephthalate Resin from Indonesia, the Republic of Korea, and 
Taiwan; Preliminary Determinations of Critical Circumstances, 83 FR 
17791 (April 24, 2018).
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    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

[[Page 19698]]

the respondents 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.

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.\10\ 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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    \10\ 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, 
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 no 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 petitioners. 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 12, and April 17, 2018, pursuant to 19 CFR 351.210(e), 
Shinkong and Far Eastern requested that Commerce postpone the final 
determination and that provisional measures be extended to a period not 
to exceed six months.\11\ On April 12, 2018, the petitioners also 
requested that Commerce postpone the final determination.\12\ 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 exporters account 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.
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    \11\ See Letter from Shinkong, ``Polyethylene Terephthalate 
(PET) Resin from Taiwan; Request to Extend Final Determination,'' 
dated April 12, 2018; and Letter from Far Eastern, ``Respondent 
Name(s), Investigation of Polyethylene Terephthalate Resin from 
Taiwan--Request for the Department's Final Determination Extension 
of Deadline,'' dated April 17, 2018.
    \12\ 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.
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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.

[[Page 19699]]

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. Comparison to Fair Value
    B. Results of the Differential Pricing Analysis
VIII. Product Comparisons
IX. Date of Sale
X. Export Price and Constructed Export Price
XI. Normal Value
    A. Home Market Viability
    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
    D. Calculation of NV Based on Comparison Market Prices
XII. Currency Conversion
XIII. Verification
XIV. Conclusion

[FR Doc. 2018-09515 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.
ContactJun Jack Zhao or Alexander Cipolla, 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) 482-1396 or (202) 482-4956, respectively.
FR Citation83 FR 19696 

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