83 FR 29094 - Low Melt Polyester Staple Fiber From the Republic of Korea: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 121 (June 22, 2018)

The Department of Commerce (Commerce) determines that imports of low melt polyester staple fiber (low melt PSF) from the Republic of Korea (Korea) are being, or are likely to be, sold in the United States at less than fair value (LTFV) during the period of investigation (POI) April 1, 2016, through March 31, 2017. In addition, we determine that critical circumstances exist with respect to certain imports of the subject merchandise. The final dumping margins of sales at LTFV are listed below in the ``Final Determination'' section of this notice.

[Federal Register Volume 83, Number 121 (Friday, June 22, 2018)]
[Notices]
[Pages 29094-29096]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13448]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-895]


Low Melt Polyester Staple Fiber From the Republic of Korea: Final 
Determination of Sales at Less Than Fair Value and Final Affirmative 
Determination of Critical Circumstances, in Part

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of low melt polyester staple fiber (low melt PSF) from the Republic of 
Korea (Korea) are being, or are likely to be, sold in the United States 
at less than fair value (LTFV) during the period of investigation (POI) 
April 1, 2016, through March 31, 2017. In addition, we determine that 
critical circumstances exist with respect to certain imports of the 
subject merchandise. The final dumping margins of sales at LTFV are 
listed below in the ``Final Determination'' section of this notice.

DATES: Applicable June 22, 2018.

FOR FURTHER INFORMATION CONTACT: Alice Maldonado or Brittany Bauer, AD/
CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4682 or (202) 
482-3860.

SUPPLEMENTARY INFORMATION:

Background

    On February 2, 2018, Commerce published the Preliminary 
Determination of sales at LTFV of low melt PSF from Korea, in which we 
also postponed the final determination until June 18, 2018.\1\ We 
invited interested parties to comment on the Preliminary Determination. 
A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum, which is adopted by this notice.\2\
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    \1\ See Low Melt Polyester Staple Fiber from the Republic of 
Korea: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, Preliminary Affirmative Determination of Critical 
Circumstances, in Part, Postponement of Final Determination, and 
Extension of Provisional Measures, 83 FR 4906 (February 2, 2018) 
(Preliminary Determination) and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Low Melt Polyester Staple Fiber from the Republic 
of Korea,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is low melt PSF from 
Korea. For a full description of the scope of this investigation, see 
the ``Scope of the Investigation'' in Appendix I of this notice. For a 
discussion of changes to the scope since the Preliminary Determination, 
see the ``Scope of the Investigation'' section of the Issues and 
Decision Memorandum.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by submitted by 
parties in this investigation are addressed in the Issues and Decision 
Memorandum accompanying this notice. A list of the issues addressed in 
the Issues and Decision Memorandum is attached to this notice as 
Appendix II. The Issues and 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 it is available to all parties in the Central 
Records Unit, Room B-8024 of the main Department of Commerce building. 
In addition, a complete version of the Issues and Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed and electronic versions of the Issues and 
Decision Memorandum are identical in content.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as 
amended, (the Act) from February through March 2018, we conducted 
verification of the sales and cost information submitted by Huvis 
Corporation (Huvis) and Toray Chemical Korea Inc. (TCK) (collectively, 
the respondents) for use in our final determination. We used standard 
verification procedures, including an examination of relevant 
accounting and production records, and original source documents 
provided by Huvis and TCK.\3\
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    \3\ For discussion of our verification findings, see the 
following memoranda: Memorandum, ``Verification of the Sales 
Response of Huvis Corporation in the Antidumping Duty Investigation 
of Low Melt Polyester Staple Fiber from the Republic of Korea,'' 
dated April 9, 2018; Memorandum, ``Verification of the Cost Response 
of Huvis Corporation in the Antidumping Duty Investigation of Low 
Melt Polyester Staple Fiber from the Republic of Korea,'' dated 
April 12, 2018; Memorandum, ``Verification of the Sales Response of 
Toray Chemical Korea Inc. in the Antidumping Duty Investigation of 
Low Melt Polyester Staple Fiber from the Republic of Korea,'' dated 
April 9, 2018; and Memorandum, ``Verification of the Cost Response 
of Toray Chemical Korea, Inc. in the Antidumping Duty Investigation 
of Low Melt Polyester Staple Fiber from the Republic of Korea,'' 
dated April 6, 2018.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
the respondents. For a discussion of these changes, see the ``Margin 
Calculations'' section of the Issues and Decision Memorandum.

[[Page 29095]]

Final Affirmative Determination of Critical Circumstances, in Part

    For the Preliminary Determination, Commerce found that critical 
circumstances did not exist for Huvis, but did with respect to imports 
of low melt PSF from TCK and all other companies.\4\ For the final 
determination, we continue to find that critical circumstances do not 
exist for Huvis and exist for TCK. However, based on our analysis of 
import volumes, we now find that critical circumstances do not exist 
for ``all others.'' For further discussion, see the Issues and Decision 
Memorandum at ``Critical Circumstances.'' Thus, pursuant to section 
735(a)(3) of the Act, and 19 CFR 351.206, we find that critical 
circumstances exist with respect to subject merchandise produced or 
exported by TCK.
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    \4\ See Preliminary Determination, and accompanying Preliminary 
Decision Memorandum, at 16 to 21.
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All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all-other producers and exporters 
not individually investigated shall be equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated excluding rates that 
are zero, de minimis, or determined entirely under section 776 of the 
Act. TCK is the only respondent for which Commerce calculated an 
estimated weighted-average dumping margin that is not zero, de minimis, 
or based entirely on facts otherwise available. Therefore, for purposes 
of determining the ``all-others'' rate, and pursuant to section 
735(c)(5)(A) of the Act, we are using the estimated weighted-average 
dumping margin calculated for TCK, as referenced in the ``Final 
Determination'' section below.

Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Huvis Corporation...........................................        0.00
Toray Chemical Korea Inc....................................       16.27
All Others..................................................       16.27
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Disclosure

    We will disclose the calculations performed in this final 
determination within five days of the date of publication of this 
notice to parties in this proceeding in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, for this final 
determination, we will direct U.S. Customs and Border Protection (CBP) 
to continue to suspend liquidation of all entries of low melt PSF, as 
described in Appendix I of this notice, which are entered, or withdrawn 
from warehouse, for consumption on or after February 2, 2018, the date 
of publication in the Federal Register of the affirmative Preliminary 
Determination. Further, we will instruct CBP to require a cash deposit 
equal to the estimated weighted-average dumping margins indicated in 
the chart above.\5\ Because the estimated weighted-average dumping 
margin for Huvis is zero, entries of shipments of subject merchandise 
both produced and exported by Huvis will not be subject to suspension 
of liquidation or cash deposit requirements. In such situations, 
Commerce applies the exclusion to the provisional measures to the 
producer/exporter combination that was examined in the investigation. 
Accordingly, Commerce is directing CBP to not suspend liquidation of 
entries of subject merchandise both exported and produced by Huvis. 
However, entries of shipments of subject merchandise from Huvis in any 
other producer/exporter combination, or by third parties that sourced 
subject merchandise from the excluded producer/exporter combination, 
are subject to the cash deposit requirements at the all-others rate.
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    \5\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
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    For entries made by TCK, in accordance with section 735(c)(4)(B) of 
the Act, because we continue to find that critical circumstances exist, 
we will instruct CBP to continue to suspend liquidation of all 
appropriate entries of low melt PSF from Korea which were entered, or 
withdrawn from warehouse, for consumption on or after November 4, 2017, 
which is 90 days prior to the date of publication of the preliminary 
determination of this investigation in the Federal Register.
    With regard to companies covered by the ``all-others'' rate, we 
will instruct CBP to suspend liquidation of all entries made by 
companies subject to the all-others rate of low melt PSF from Korea 
which were entered, or withdrawn from warehouse, for consumption on or 
after February 2, 2018, the date of the publication of the Preliminary 
Determination of this investigation in the Federal Register. However, 
because we did not find that critical circumstances exist with regard 
to companies covered by the ``all-others'' rate, in accordance with 
735(c)(1)(B) of the Act, we will instruct CBP to lift suspension and to 
refund any cash deposits made to secure payment of estimated 
antidumping duties with respect to entries of low melt PSF from Korea 
entered, or withdrawn from warehouse, for consumption on or after 
November 4, 2017 (i.e., 90 days prior to the date of publication of the 
Preliminary Determination), but before February 2, 2018, (i.e., the 
date of publication of the Preliminary Determination of this 
investigation in the Federal Register).
    These suspension of liquidation instructions will remain in effect 
until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determination as to whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of imports, or sales (or the likelihood of 
sales) for importation of low melt PSF from Korea no later than 45 days 
after this final determination. If the ITC determines that such injury 
does not exist, this proceeding will be terminated and all cash 
deposits will be refunded or canceled. If the ITC determines that such 
injury does exist, Commerce will issue an antidumping duty order 
directing CBP to assess, upon further instruction by Commerce, 
antidumping duties on all imports of the subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation, as discussed above in the 
``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely

[[Page 29096]]

written notification of return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and the terms of an APO is a 
sanctionable violation.

Notification to Interested Parties

    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act and 19 CFR 
351.210(c).

    Dated: June 18, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise subject to this investigation is synthetic 
staple fibers, not carded or combed, specifically bi-component 
polyester fibers having a polyester fiber component that melts at a 
lower temperature than the other polyester fiber component (low melt 
PSF). The scope includes bi-component polyester staple fibers of any 
denier or cut length. The subject merchandise may be coated, usually 
with a finish or dye, or not coated.
    Low melt PSF is classifiable under the Harmonized Tariff 
Schedule of the United States (HTSUS) subheading 5503.20.0015. 
Although the HTSUS subheading is provided for convenience and 
customs purposes, the written description of the scope of the 
merchandise under the investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Critical Circumstances
IV. Scope of the Investigation
V. Margin Calculations
VI. Discussion of the Issues
    Huvis
    1. Major Input Rule
    2. U.S. Bank Charges
    3. Duty Drawback for Huvis
    4. Critical Circumstances
    5. Corrections Found at Verification
    TCK
    6. Denier Range Reporting
    7. U.S. Destination Reporting
    8. TCK's Unpaid Sales
    9. Duty Drawback Adjustment for TCK
    10. General and Administrative (G&A) Expense Rate for TCK
    11. Financial Expense Rate
    12. TCK's Affiliated Party Inputs
    13. Selling, General and Administrative (SG&A) Expense Rate for 
Toray International
VII. Recommendation

[FR Doc. 2018-13448 Filed 6-21-18; 8:45 am]
BILLING CODE 3510-DS-P