83 FR 48285 - Polyethylene Terephthalate Resin From Brazil: Final Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 185 (September 24, 2018)

Page Range48285-48287
FR Document2018-20719

The Department of Commerce (Commerce) determines that imports of polyethylene terephthalate (PET) resin from Brazil are 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 48285-48287]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20719]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-852]


Polyethylene Terephthalate Resin From Brazil: Final Determination 
of Sales at Less Than Fair Value

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 Brazil are 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: Kathryn Wallace or Elfi Blum, 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) 482-6251 or (202) 482-0197, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On May 4, 2018, Commerce published in the Federal Register the 
preliminary determination of sales at LTFV in the antidumping duty (AD) 
investigation of PET resin from Brazil.\1\ Commerce invited comments 
from interested parties on the Preliminary

[[Page 48286]]

Determination.\2\ The petitioners \3\ and M&G Polimeros Brasil, S.A. 
(MGP Brasil) filed case and rebuttal briefs.\4\ 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.\5\ 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 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).
    \2\ 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.
    \3\ DAK Americas, LLC Indorama Ventures USA, Ind., M&G Polymers 
USA, LLC, and Nan Ya Plastics Corporation, America (collectively, 
the petitioners).
    \4\ See Petitioners' Case Brief, ``Polyethylene Terephthalate 
Resin from Brazil: Petitioners' Case Brief on MGP Brazil,'' dated 
June 12, 2018 (Petitioners' Case Brief); see also MGP Brasil's Case 
Brief,: Polyethylene Terephthalate (PET) Resin from Brazil: Case 
Brief,'' dated July 12, 2018 (MGP Brasil Case Brief); see also 
Petitioners' Rebuttal Brief, ``Polyethylene Terephthalate Resin from 
Brazil: Petitioners' Rebuttal Brief on MGP Brasil,'' dated July 17, 
2018 (Petitioners' Rebuttal Brief); see also MGP Brasil's Rebuttal 
Brief, Polyethylene Terephthalate (PET) Resin from Brazil: MGP 
Brasil's Rebuttal Brief,'' dated July 17, 2018 (MGP Brasil Rebuttal 
Brief).
    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Polyethylene Terephthalate Resin from Brazil,'' 
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 Brazil. Commerce did not receive any scope 
comments subsequent to the Preliminary Determination and, therefore, 
the scope has not been updated since the Preliminary Determination. For 
a complete description of the scope of this investigation, see Appendix 
I.

Period of Investigation

    The period of investigation 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 for MGP Brasil in Sao Paulo, Brazil, and Houston, 
Texas, between May 14, 2018, and June 8, 2018. We used standard 
verification procedures, including an examination of relevant 
accounting and production records, and original source documents 
provided by the respondents.

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 adverse inferences when calculating the margin 
for Companhia Integrada Textil de Pernambuco, pursuant to sections 
776(a)(2)(A)-(C) and 776(b) of the Act. For further information 
regarding the use of facts available with adverse inferences, see the 
Issues and Decision Memorandum.

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 a 
discussion of these changes, see the Issues and Decision Memorandum.

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.
    In this investigation, Commerce calculated an estimated weighted-
average dumping margin for MGP Brasil and based Textil de Pernambuco's 
rate entirely on facts otherwise available. Accordingly, the all-others 
rate in this investigation is the weighted-average dumping margin 
calculated for MGP Brasil.

Final Determination Margins

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                 margin
                                                               (percent)
------------------------------------------------------------------------
Companhia Integrada Textil de Pernambuco.....................     275.89
M&G Polimeros Brasil, S.A....................................      29.68
All-Others...................................................      29.68
------------------------------------------------------------------------

Disclosure

    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 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of PET resin from 
Brazil, as described in Appendix I of this notice, which were entered, 
or withdrawn from warehouse, for consumption on or after May 4, 2018, 
the date of publication of the Preliminary Determination.
    Furthermore, pursuant to section 735(c)(1)(B)(ii) of the Act and 19 
CFR 351.210(d), Commerce will instruct CBP to require a cash deposit 
for such entries of merchandise equal to the estimated weighted-average 
dumping margin, as follows: (1) The cash deposit rate for the 
respondents listed above will be equal to the respondent-specific 
estimated weighted-average dumping margin determined in this final 
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 
respondent-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.

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

[[Page 48287]]

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 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. Changes Since the Preliminary Determination
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Discussion of the Issues
    Comment 1: Whether MGP Brasil's Unverified Bank Charges Should 
Result in the Application of Adverse Facts Available.
    Comment 2: Whether Commerce Should Modify the Conversions Used 
for MGP Brasil's Packing Expenses.
    Comment 3: Whether Commerce Should Make Adjustments Based on the 
Cost Verification Findings.
    Comment 4: Whether Commerce Should Include Certain Investment 
Expenses in MGP Brasil's Financial Expenses.
VII. Recommendation

[FR Doc. 2018-20719 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.
ContactKathryn Wallace or Elfi Blum, 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) 482-6251 or (202) 482-0197, respectively.
FR Citation83 FR 48285 

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