83 FR 48278 - Polyethylene Terephthalate Resin From Indonesia: 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 185 (September 24, 2018)

Page Range48278-48280
FR Document2018-20720

The Department of Commerce (Commerce) determines that imports of polyethylene terephthalate (PET) resin from Indonesia is being sold in the United States at less than fair value (LTFV), as provided in section 735 of the Tariff Act of 1930, as amended (the Act).

Federal Register, Volume 83 Issue 185 (Monday, September 24, 2018)
[Federal Register Volume 83, Number 185 (Monday, September 24, 2018)]
[Notices]
[Pages 48278-48280]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20720]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-832]


Polyethylene Terephthalate Resin From Indonesia: 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 polyethylene terephthalate (PET) resin from Indonesia is being sold 
in the United States at less than fair value (LTFV), as provided in 
section 735 of the Tariff Act of 1930, as amended (the Act).

DATES: Applicable September 24, 2018.

FOR FURTHER INFORMATION CONTACT: Caitlin Monks or Gene Calvert, 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) 482-2670 or (202) 482-3586, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 24, 2018 Commerce published in the Federal Register its 
preliminary affirmative determination of critical circumstances, in 
part.\1\ On May 4, 2018, Commerce published in the Federal Register the 
preliminary affirmative determination of sales at LTFV in the 
antidumping duty (AD) investigation of PET resin from Indonesia.\2\ 
Commerce invited comments from interested parties on the Preliminary 
Determination.\3\ The petitioners \4\ and Indorama \5\ filed case and 
rebuttal briefs.\6\ A summary of the events that occurred since 
Commerce published the Preliminary Determination, as well as a full 
discussion of the issues raised by interested parties for this final 
determination, may be found in the Issues and Decision Memorandum.\7\ 
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 http://access.trade.gov, and 
it is available to all parties in the Central Records Unit, Room B8024 
of the main Commerce building. In addition, a complete version of the 
Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Issues and Decision Memorandum are identical in content.
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    \1\ See Antidumping Duty Investigations on Polyethylene 
Terephthalate Resin from Indonesia, the Republic of Korea, and 
Taiwan; Preliminary Determination of Critical Circumstances, 83 FR 
17791 (April 24, 2018) (Preliminary Critical Circumstances 
Determination).
    \2\ See Polyethylene Terephthalate Resin from Brazil: 
Preliminary Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 83 FR 19699 (May 4, 2018) (Preliminary Determination) and 
accompanying Preliminary Decision Memorandum (PDM).
    \3\ Id. at 19700; see also Memorandum, ``Case Brief Deadline 
Extension for the Antidumping Duty Investigation of Polyethylene 
Terephthalate Resin from Brazil,'' dated July 10, 2018.
    \4\ DAK Americas, M&G Polymers USA, LLC, and Nan Ya Plastics 
Corporation, America (collectively, the petitioners).
    \5\ In the Preliminary Determination, in accordance with section 
771(33)(F) of the Act, we found the following companies affiliated: 
PT. Indo-Rama Synthetics Tbk (Indorama Synthetics), Indorama 
Ventures Alphapet Holdings, Inc. (Alphapet), Indorama Ventures 
Indonesia (Ventures Indonesia), PT. Indorama Polypet Indonesia 
(Polypet), and Indorama Polymers Public Company Ltd. (Polymers). 
Further, we collapsed, pursuant to 19 CFR 351.401(f), the following 
three Indonesian producers into a single entity: Indorama 
Synthetics, Ventures Indonesia, and Polypet, collectively referred 
to as Indorama Producers throughout this final determination. See 
PDM at 6-11. We have made no changes to these findings in our final 
determination. We received responses from the Indorama Producers, 
and their U.S. affiliate, Alphapet, which we refer to collectively 
as Indorama throughout this final determination.
    \6\ See Petitioners' Case Brief, ``Petitioners' Case Brief,'' 
dated August 15, 2018 (Petitioners' Case Brief); see also Indorama's 
Case Brief, ``Polyethylene Terephthalate Resin (`PET Resin') from 
Indonesia: Administrative Case Brief,'' dated August 16, 2018 
(Indorama's Case Brief); see also Petitioners' Rebuttal Brief, 
``Petitioners' Rebuttal Brief,'' dated August 22, 2018 (Petitioners' 
Rebuttal Brief); see also Indorama's Revised Rebuttal Brief, 
``Polyethylene Terephthalate Resin (`PET Resin') from Indonesia: 
Rebuttal Brief,'' dated August 24, 2018 (Indorama's Rebuttal Brief).
    \7\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Polyethylene Terephthalate Resin from Indonesia,'' 
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 polyethylene 
terephthalate resin from Indonesia. Commerce did not receive any scope 
comments subsequent to the Preliminary Determination and, therefore, 
the scope has not been revised since the Preliminary Determination. For 
a complete description of the scope of this investigation, see Appendix 
I.

Period of Investigation

    The POI is July 1, 2016, through June 30, 2017.

Verification

    As provided in section 782(i) of the Act, we conducted the cost and 
sales verifications in Indonesia and the United States between May 4, 
2018, and June 22, 2018. We used standard verification procedures, 
including an examination of relevant accounting and production records, 
and original source documents provided by the respondents.

Final Affirmative Determination of Critical Circumstances, in Part

    For this final determination, as explained in detail in the 
accompanying Issues and Decision Memorandum, we determine that critical 
circumstances exist for the Indorama Producers, but do not exist for 
``all other'' producers or exporters not individually examined.\8\
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    \8\ See Issues and Decision Memorandum at IV.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum, 
which is hereby adopted by this notice. A list of the issues raised is 
attached to this notice as Appendix II.

Use of Facts Otherwise Available and Adverse Inferences

    For purposes of this final determination, Commerce relied on facts 
otherwise available with an adverse inference when calculating the 
margin for the Indorama Producers (a collapsed entity comprised of 
three producers),\9\ pursuant to sections 776(a)(1) and (2)(A)(C)(D) 
and 776(b) of the Act. For further information regarding the use of 
facts available and adverse inferences, see the Issues and Decision 
Memorandum.
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    \9\ See supra n.4.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we are now relying on facts available in determining a 
dumping margin for the Indorama Producers.

[[Page 48279]]

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that 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. However, section 735(c)(5)(B) of 
the Act provides that Commerce may apply ``any reasonable method'' to 
establish the all-others rate if the margins are determined entirely 
under section 776.
    In the Preliminary Determination, because we calculated an 
individual estimated weighted-average dumping margin for the Indorama 
Producers, we assigned this margin to all-other producer and exporters, 
pursuant to section 735(c)(5)(A) of the Act. However, for this final 
determination, we have based the Indorama Producers' rate entirely on 
facts available; accordingly, we have reconsidered the estimated rate 
assigned to all others. Because we have no calculated rates, we have 
determined that a reasonable method for assigning a margin to all other 
exporters and producers not individually examined is to average the 
four rates from the Petition, in accordance with section 735(c)(5)(B) 
of the Act.\10\ The estimated dumping margins from the petition for the 
price-to-price comparisons are 8.49 and 12.38 percent, and the 
estimated margins for the U.S. price-to-CV comparisons are 48.07 and 
53.50 percent; \11\ therefore, the simple average of these rates is 
30.61 percent. Accordingly, the all-others rate in this investigation 
is 30.61 percent.
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    \10\ See Petitioners' Letter, ``Polyethylene Terephthalate 
(``PET'') Resin from Brazil, Indonesia, the Republic of Korea, 
Pakistan, and Taiwan--Petition for the Imposition of Antidumping 
Duties,'' dated September 26, 2017, and Petitioners' Letter, 
``Polyethylene Terephthalate (``PET'') Resin from Brazil, Indonesia, 
the Republic of Korea, Pakistan, and Taiwan--Petitioners' Amendment 
to Volume III Relating to Indonesia Antidumping Duties,'' dated 
October 3, 2017 (Petition).
    \11\ See Petition at Volume III at Exhibit AD-ID-S4; see also 
Commerce's Notice, ``Enforcement and compliance Office of AD/CVD 
Operations Antidumping Duty Investigation Initiation Checklist,'' 
dated October 16, 2017 (Initiation Checklist).
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Final Determination Margins

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                 margin
                                                               (percent)
------------------------------------------------------------------------
PT. Indo-Rama Synthetics Tbk./PT. Indorama Polypet Indonesia/      53.50
 Indorama Ventures Indonesia \12\............................
All-Others...................................................      30.61
------------------------------------------------------------------------

Disclosure
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    \12\ Collectively referred to as the Indorama Producers.
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    We will disclose to interested parties the calculations performed 
in this final determination within five days of any public announcement 
of this notice in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 733(e)(2) of the Act, for this final 
determination, Commerce will instruct U.S. Customs and Border 
Protection (CBP) to begin the suspension of liquidation of all entries 
of PET resin, as described in the Appendix I to this notice, produced 
or exported by the Indorama Producers, which were entered, or withdrawn 
from warehouse, for consumption on or after February 3, 2018 (90 days 
prior to the date of publication of the Preliminary Determination), 
because we find that critical circumstances exist with regard to 
imports produced or exported by the Indorama Producers.
    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. CBP to continue to suspend liquidation of all appropriate 
entries of PET resin from Indonesia, as described in Appendix I of this 
notice, produced or exported by all other producers or exporters, which 
were entered, or withdrawn from warehouse, for consumption on or after 
May 4, 2018, the date of publication of the Preliminary Determination. 
Commerce will instruct U.S. CBP to terminate the suspension of 
liquidation for shipments from Polymers and all other producers and 
exporters of subject merchandise that were entered, or withdrawn from 
warehouse, for consumption before May 4, 2018, because we find that 
critical circumstances do not exist with regard to imports produced or 
exported by Polymers and all other producers and exporters. All such 
entries shall be liquidated without regard to antidumping duties (i.e., 
all cash deposits shall be returned).

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2)(B) 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 of PET resin from 
Brazil no later than 45 days after our final determination. If the ITC 
determines that material injury or threat of material injury does not 
exist, the proceeding will be terminated, and all cash deposits will be 
refunded. 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 will serve as the only reminder to parties, subject to 
administrative protective order (APO), of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction or 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

    We are issuing and publishing this determination and notice in 
accordance with sections 735(d) and 777(i) of the Act and 19 CFR 
351.210(c).

    Dated: September 17, 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 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

[[Page 48280]]

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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Final Affirmative Determination of Critical Circumstances, in 
Part
V. Changes Since the Preliminary Determination
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Discussion of the Issues
    Comment 1: Whether To Apply Adverse Facts Available to Indorama
    Comment 2: Whether Commerce Made Clerical Errors in Its 
Preliminary Determination
VIII. Recommendation

[FR Doc. 2018-20720 Filed 9-21-18; 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 September 24, 2018.
ContactCaitlin Monks or Gene Calvert, 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) 482-2670 or (202) 482-3586, respectively.
FR Citation83 FR 48278 

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