[Federal Register Volume 85, Number 30 (Thursday, February 13, 2020)]
[Notices]
[Pages 8252-8254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02909]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-899]


Acetone From the Republic of Korea: 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 acetone from the Republic of Korea (Korea) are being, or are likely 
to be, sold in the United States at less than fair value (LTFV). The 
period of investigation (POI) is January 1, 2018 through December 31, 
2018. For information on the estimated weighted-average dumping margins 
of sales at LTFV, see the ``Final Determination'' section of this 
notice.

DATES: Applicable February 13, 2020.

FOR FURTHER INFORMATION CONTACT: Sean Carey, 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) 482-3964.

SUPPLEMENTARY INFORMATION: 

Background

    On September 24, 2019, Commerce published the Preliminary 
Determination of this LTFV investigation.\1\ The petitioner in this 
investigation is the Coalition for

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Acetone Fair Trade (the petitioner).\2\ The mandatory respondents in 
this investigation are LG Chem, Ltd. (LG Chem) and Kumho P&B Chemicals, 
Inc. (KPB). We held a public hearing on January 23, 2020, to address 
issues raised in the case and rebuttal briefs.\3\ A complete summary of 
the events that occurred since publication of 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.\4\ The Issues and Decision Memorandum is a public 
document and is available 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 to all parties in the Central Records 
Unit, room B-8024 of the main Commerce building. In addition, a 
complete version of the Issues and Decision Memorandum can be accessed 
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 Acetone from the Republic of Korea: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 84 FR 50005 (September 24, 2019) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ The members of the Coalition for Acetone Fair Trade are 
AdvanSix Inc., Altivia Petrochemicals, LLC, and Olin Corporation.
    \3\ See Hearing Transcript, ``Public Hearing in the Matter of 
the Less-Than-Fair-Value Investigation of Acetone from the Republic 
of Korea'' (January 23, 2020).
    \4\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Antidumping Duty 
Investigation of Acetone from the Republic of Korea,'' issued 
concurrently with, and adopted by, this notice (Issues and Decision 
Memorandum).
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Scope of the Investigation

    The scope of the investigation covers acetone from Korea. Commerce 
received no scope comments and has not updated the scope of the 
investigation since the Preliminary Determination. For a complete 
description of the scope of this investigation, see Appendix I to this 
notice.

Analysis of Comments Received

    The issues raised in the case briefs and rebuttal briefs submitted 
by interested parties in this investigation are discussed in the Issues 
and Decision Memorandum. For a list of the issues raised by parties and 
responded to by Commerce in the Issues and Decision Memorandum, see 
Appendix II to this notice.

Verification

    Between October 21 and November 19, 2019, we conducted cost and 
sales verifications of mandatory respondents, LG Chem and its wholly-
owned affiliate, LG Chem America, Inc., and KPB, in accordance with 
section 782(i) of the Tariff Act of 1930, as amended (the Act).\5\
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    \5\ See Memorandum, ``Verification of the Cost Response of LG 
Chem, Ltd. in the Antidumping Duty Investigation of Acetone from the 
Republic of Korea, dated December 17, 2019; Memorandum, 
``Verification of the Cost Response of Kumho P&B Chemicals, Inc. in 
the Antidumping Duty Investigation of Acetone from the Republic of 
Korea, dated December 18, 2019; Memorandum, ``Verification of the 
Questionnaire Responses of LG Chem, Ltd. and LG Chem America, Inc. 
in the Antidumping Duty Less Than Fair Value Investigation of 
Acetone from the Republic of Korea,'' dated December 23, 2019; and 
Memorandum, ``Verification of the Questionnaire Responses of Kumho 
P&B Chemicals, Inc. in the Antidumping Duty Less Than Fair Value 
Investigation of Acetone from the Republic of Korea,'' dated 
December 23, 2019.
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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 since 
the Preliminary Determination. These changes are discussed in the 
Issues and Decision Memorandum.

All-Others Rate

    Sections 735(c)(1)(B)(i)(II) and 735(c)(5)(A) of the Act provide 
that Commerce shall determine an estimated weighted-average dumping 
margin rate for all other exporters and producers not individually 
examined (the all-others rate). This rate shall be an amount equal to 
the weighted average of the estimated weighted-average dumping margins 
established for exporters and producers individually examined, 
excluding rates that are zero, de minimis, or determined entirely under 
section 776 of the Act. However, when the estimated weighted-average 
dumping margins for each of the exporters and producers individually 
examined are zero, de minimis, or determined under section 776 of the 
Act, Commerce shall use any reasonable method to establish the all-
others rate, including averaging the estimated weighted-average dumping 
margins for the exporters and producers individually examined.
    In this investigation, Commerce calculated individual estimated 
weighted-average dumping margins of 47.86 percent for KPB and 25.05 
percent for LG Chem, the two individually examined companies. Commerce 
calculated the rate for the companies not selected for individual 
examination using a weighted-average of the estimated weighted-average 
dumping margins calculated for KPB and LG Chem, and each company's 
publicly-ranged U.S. sale quantities for the merchandise under 
consideration.\6\ This rate was assigned to all other producers or 
exporters, pursuant to section 735(c)(5)(A) of the Act.
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    \6\ With two respondents under examination, Commerce normally 
calculates (A) a weighted average of the estimated weighted-average 
dumping margins calculated for the examined respondents (as directed 
by the statute) based on the actual reported U.S. sale quantities 
for each respondent; (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. Because the calculation in (A) includes business 
proprietary information (BPI) which could be revealed by publicly 
releasing the results of this calculation, Commerce then compares 
the calculation results of (B) and (C) to (A) and selects the rate 
closest to (A) as the most appropriate rate for all other producers 
or exporters not subject to individual examination. 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). For a complete analysis including the BPI data, see 
Memorandum, ``Final Determination Calculation for the `All-Others' 
Rate,'' dated concurrently with this notice.
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Final Determination

    Pursuant to section 735 of the Act, Commerce determines the 
estimated weighted-average dumping margins to be:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                                                              average
                  Producer or exporter                        dumping
                                                              margins
                                                             (percent)
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Kumho P&B Chemicals, Inc................................           47.86
LG Chem, Ltd............................................           25.05
All Others..............................................           33.10
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Disclosure

    In accordance with 19 CFR 351.224(b), we will disclose the 
calculations performed within five days of any public announcement of 
this determination.

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 acetone from Korea, 
as described in Appendix I of this notice, which were entered, or 
withdrawn from warehouse, for consumption on or after September 24, 
2019, the date of publication of the Preliminary Determination.
    In addition, pursuant to section 735(c)(1)(B)(ii) of the Act and 19 
CFR 351.210(d), Commerce will instruct CBP

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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 companies listed in the table above will be equal 
to the company-specific estimated weighted-average dumping margin 
identified for that company in the table; (2) if the exporter is not a 
company listed in the table above, but the producer is, then the cash 
deposit rate will be equal to the company-specific estimated weighted-
average dumping margin listed for that producer of the subject 
merchandise in the above table; and (3) the cash deposit rate for all 
other producers and exporters will be equal to the all-others estimated 
weighted-average dumping margin. These suspension of liquidation 
instructions will remain in effect until further notice.

International Trade Commission Notification (ITC)

    In accordance with section 735(d) of the Act, we will notify the 
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) 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 acetone from Korea 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 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 Order (APO)

    This notice serves as the only reminder to parties subject to an 
APO of their responsibility concerning the disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/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 violation subject to sanction.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: February 6, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is all grades of 
liquid or aqueous acetone. Acetone is also known under the 
International Union of Pure and Applied Chemistry (IUPAC) name 
propan-2-one. In addition to the IUPAC name, acetone is also 
referred to as [beta]-ketopropane (or beta-ketopropane), ketone 
propane, methyl ketone, dimethyl ketone, DMK, dimethyl carbonyl, 
propanone, 2-propanone, dimethyl formaldehyde, pyroacetic acid, 
pyroacetic ether, and pyroacetic spirit. Acetone is an isomer of the 
chemical formula C3H6O, with a specific 
molecular formula of CH3COCH3 or 
(CH3)2CO.
    The scope covers both pure acetone (with or without impurities) 
and acetone that is combined or mixed with other products, 
including, but not limited to, isopropyl alcohol, benzene, diethyl 
ether, methanol, chloroform, and ethanol. Acetone that has been 
combined with other products is included within the scope, 
regardless of whether the combining occurs in third countries.
    The scope also includes acetone that is commingled with acetone 
from sources not subject to this investigation.
    For combined and commingled products, only the acetone component 
is covered by the scope of this investigation. However, when acetone 
is combined with acetone components from sources not subject to this 
investigation, those third country acetone components may still be 
subject to other acetone investigations.
    Notwithstanding the foregoing language, an acetone combination 
or mixture that is transformed through a chemical reaction into 
another product, such that, for example, the acetone can no longer 
be separated from the other products through a distillation process 
(e.g., methyl methacrylate (MMA) or Bisphenol A (BPA)), is excluded 
from this investigation.
    A combination or mixture is excluded from these investigations 
if the total acetone component (regardless of the source or sources) 
comprises less than 5 percent of the combination or mixture, on a 
dry weight basis.
    The Chemical Abstracts Service (CAS) registry number for acetone 
is 67-64-1.
    The merchandise covered by this investigation is currently 
classifiable under Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings 2914.11.1000 and 2914.11.5000. Combinations or 
mixtures of acetone may enter under subheadings in Chapter 38 of the 
HTSUS, including, but not limited to, those under heading 
3814.00.1000, 3814.00.2000, 3814.00.5010, and 3814.00.5090. The list 
of items found under these HTSUS subheadings is non-exhaustive. 
Although these HTSUS subheadings and CAS registry number are 
provided for convenience and customs purposes, the written 
description of the scope of 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. Discussion of the Issues
    Comment 1: LG Chem's Joint Cost Allocation Methodology
    Comment 2: KPB's Cost Allocation Method
    Comment 3: KPB's Purchases from Affiliates
    Comment 4: LG Chem's Non-Operating Expenses
    Comment 5: LG Chem's G&A Expense Ratio Calculation
VI. Recommendation

[FR Doc. 2020-02909 Filed 2-12-20; 8:45 am]
 BILLING CODE 3510-DS-P