90 FR 77 pgs. 17032-17036 - Certain Monomers and Oligomers From Taiwan: Initiation of Countervailing Duty Investigation
Type: NOTICEVolume: 90Number: 77Pages: 17032 - 17036
Pages: 17032, 17033, 17034, 17035, 17036Docket number: [C-583-880]
FR document: [FR Doc. 2025-06934 Filed 4-22-25; 8:45 am]
Agency: Commerce Department
Sub Agency: International Trade Administration
Official PDF Version: PDF Version
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-583-880]
Certain Monomers and Oligomers From Taiwan: Initiation of Countervailing Duty Investigation
AGENCY:
Enforcement and Compliance, International Trade Administration, Department of Commerce.
DATES:
Applicable April 16, 2025.
FOR FURTHER INFORMATION CONTACT:
Suresh Maniam, Office I, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1603.
SUPPLEMENTARY INFORMATION:
The Petition
On March 27, 2025, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition concerning imports of certain monomers and oligomers (monomers and oligomers) from Taiwan, filed in proper form on behalf of Arkema, Inc. (the petitioner), a domestic producer of monomers and oligomers. 1 The CVD Petition was accompanied by antidumping duty (AD) petitions concerning imports of monomers and oligomers from the Republic of Korea and Taiwan. 2
Footnotes:
1 ? See Petitioner's Letter, "Petition for the Imposition of Antidumping and Countervailing Duties," dated March 27, 2025 (Petition).
2 ? Id.
Between March 31 and April 8, 2025, Commerce requested supplemental information pertaining to certain aspects of the Petition in supplemental questionnaires. 3 Between April 4 and 11, 2025, the petitioner filed timely responses to these requests for additional information. 4
Footnotes:
3 ? See Commerce's Letters, "Supplemental Questions," dated March 31, 2025 (First General Issues Questionnaire) and "Supplemental Questions," dated April 2, 2025; see also Memorandum, "Phone Call with Counsel to the Petitioner," dated April 8, 2025 (April 8 Memorandum).
4 ? See Petitioner's Letters, "Response to General Issues and Injury Supplemental Questions," dated April 4, 2025 (First General Issues Supplement); "Response to Volume III Supplemental Questions," dated April 8, 2025; and "Response to Supplemental Questions," dated April 11, 2025 (Second General Issues Supplement).
In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that the Taiwan Authorities (TA) are providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of monomers and oligomers in Taiwan, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing monomers and oligomers in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating a CVD investigation, the Petition was accompanied by information reasonably available to the petitioner supporting its allegations.
Commerce finds that the petitioner filed the Petition on behalf of the domestic industry, because the petitioner is an interested party, as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested CVD investigation. 5
Footnotes:
5 ? See section on "Determination of Industry Support for the Petition," infra.
Period of Investigation (POI)
Because the Petition was filed on March 27, 2025, the POI is January 1, 2024, through December 31, 2024. 6
Footnotes:
6 ? See 19 CFR 351.204(b)(2).
Scope of the Investigation
The product covered by this investigation is monomers and oligomers from Taiwan. For a full description of the scope of this investigation, see the appendix to this notice.
Comments on the Scope of the Investigation
On March 31 and April 8, 2025, Commerce requested information and clarification from the petitioner regarding the proposed scope to ensure that the scope language in the Petitions is an accurate reflection of the products for which the domestic industry is seeking relief. 7 Between March 31 and April 11, 2025, the petitioner provided clarifications and revised the scope. 8 The description of merchandise covered by this investigation, as described in the appendix to this notice, reflects these clarifications.
Footnotes:
7 ? See First General Issues Questionnaire; see also April 8 Memorandum.
8 ? See First General Issues Supplement at 9-11 and Exhibits Supp-I-2 and Supp-I-3; see also Second General Issues Supplement at 1-6 and Exhibits Supp2-I-1 through Supp2-I-3. On March 31, 2025, the petitioner also filed an amendment containing technical modifications to the scope in the Petition. See Petitioner's Letter, "Amendment to Petition," dated March 31, 2025.
[top] As discussed in the Preamble to Commerce's regulations, we are setting aside a period for interested parties to raise issues regarding product coverage ( i.e., scope). 9 Commerce will consider all scope comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information, all such factual information should be limited to public information. 10 To facilitate preparation of its questionnaires, Commerce requests that scope comments be submitted by 5:00 p.m. Eastern Time (ET) on May 6, 2025, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include
Footnotes:
9 ? See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) ( Preamble ); see also 19 CFR 351.312.
10 ? See 19 CFR 351.102(b)(21) (defining "factual information").
Commerce requests that any factual information that parties consider relevant to the scope of this investigation be submitted during that period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party must contact Commerce and request permission to submit the additional information. All scope comments must be filed simultaneously on the records of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via Enforcement and Compliance's Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS), unless an exception applies. 11 An electronically filed document must be received successfully in its entirety by the time and date it is due.
Footnotes:
11 ? See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014), for details of Commerce's electronic filing requirements, effective August 5, 2011. Information on using ACCESS can be found at https://access.trade.gov/help.aspx and a handbook can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf .
Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified the TA of the receipt of the Petition and provided an opportunity for consultations with respect to the Petition. 12 Commerce held consultations with the TA on April 14, 2025. 13
Footnotes:
12 ? See Commerce's Letter, "Invitation for Consultations to Discuss the Countervailing Duty Petition," dated March 28, 2025.
13 ? See Memorandum, "Consultations with the Government of Taiwan," dated April 14, 2025; see also TA's Letter, "GOT's Submission," dated April 14, 2025.
Additionally, given the nature of certain subsidy programs alleged in the Petition, on March 28, 2025, Commerce issued a letter to the Government of the People's Republic of China (GOC), providing the GOC with the opportunity to meet with Commerce officials. 14 The GOC did not request to meet with Commerce officials. 15
Footnotes:
14 ? See Commerce's Letter, "Alleged Transnational Subsidy Programs," dated March 28, 2025.
15 ?The GOC submitted comments on the CVD petition. See GOC's Letter, "Comments on the Countervailing Duty Petition," dated April 11, 2025.
Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) at least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, Commerce shall: (i) poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the "industry."
Section 771(4)(A) of the Act defines the "industry" as the producers as a whole of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs Commerce to look to producers and workers who produce the domestic like product. The U.S. International Trade Commission (ITC), which is responsible for determining whether "the domestic industry" has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both Commerce and the ITC apply the same statutory definition regarding the domestic like product, 16 they do so for different purposes and pursuant to a separate and distinct authority. In addition, Commerce's determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law. 17
Footnotes:
16 ? See section 771(10) of the Act.
17 ? See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United States, 865 F.2d 240 (Fed. Cir. 1989)).
Section 771(10) of the Act defines the domestic like product as "a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title." Thus, the reference point from which the domestic like product analysis begins is "the article subject to an investigation" ( i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition).
With regard to the domestic like product, the petitioner does not offer a definition of the domestic like product distinct from the scope of the investigation. 18 Based on our analysis of the information submitted on the record, we have determined that monomers and oligomers, as defined in the scope, constitute a single domestic like product, and we have analyzed industry support in terms of that domestic like product. 19
Footnotes:
18 ? See Petition at Volume I (pages I-10 through I-12); see also First General Issues Supplement at 12-17 and Exhibit I-Supp-7; and Second General Issues Supplement at 6-7.
19 ?For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see Checklist, "Countervailing Duty Investigation Initiation Checklist: Certain Monomers and Oligomers from Taiwan," dated concurrently with, and hereby adopted by, this notice (Taiwan CVD Initiation Checklist), at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Certain Monomers and Oligomers from the Republic of Korea and Taiwan (Attachment II). This checklist is on file electronically via ACCESS.
In determining whether the petitioner has standing under section 702(c)(4)(A) of the Act, we considered the industry support data contained in the Petition with reference to the domestic like product as defined in the "Scope of the Investigation," in the appendix to this notice. To establish industry support, the petitioner provided its own 2024 production of the domestic like product and compared this to the estimated total production of the domestic like product in 2024 by the entire domestic industry. 20 We relied on data provided by the petitioner for purposes of measuring industry support. 21
Footnotes:
20 ?For further discussion, see Attachment II of the Taiwan CVD Initiation Checklist.
21 ? Id.
[top] Our review of the data provided in the Petition, the First General Issues Supplement, and other information readily available to Commerce indicates that the petitioner has established industry support for the Petition. 22 First, the Petition established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, Commerce is not required to take further action in order to evaluate industry support ( e.g., polling). 23 Second, the domestic producers (or workers) have met the statutory criteria for industry support
Footnotes:
22 ? Id.
23 ? Id.; see also section 702(c)(4)(D) of the Act.
24 ? See Attachment II of the Taiwan CVD Initiation Checklist.
25 ? Id.
26 ? Id.
Injury Test
Because Taiwan is a "Subsidies Agreement Country" within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to this investigation. Accordingly, the ITC must determine whether imports of the subject merchandise from Taiwan materially injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are benefiting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. In addition, the petitioner alleges that subject imports from Taiwan exceed the negligibility threshold provided for under section 771(24)(A) of the Act. 27
Footnotes:
27 ?For further information regarding negligibility and the injury allegation, see Taiwan CVD Initiation Checklist at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping Duty and Countervailing Duty Petitions Covering Certain Monomers and Oligomers from the Republic of Korea and Taiwan (Attachment III).
The petitioner contends that the industry's injured condition is illustrated by a significant volume of subject imports; reduced market share; underselling and price depression and/or suppression; declines in production, capacity, capacity utilization, and U.S. shipments; declines in profitability, operating income, net income, cash flow, return on assets, capital expenditures, and research and development expenditures; and lost sales and revenues. 28 We assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as negligibility, and we have determined that these allegations are properly supported by adequate evidence and meet the statutory requirements for initiation. 29
Footnotes:
28 ? Id.
29 ? Id.
Initiation of CVD Investigation
Based upon the examination of the Petition and supplemental responses, we find that they meet the requirements of section 702 of the Act. Therefore, we are initiating a CVD investigation to determine whether imports of monomers and oligomers from Taiwan benefit from countervailable subsidies conferred by the TA. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 65 days after the date of this initiation.
Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on 38 of the 43 programs alleged by the petitioner. For a full discussion of the basis for our decision to initiate on each program, see the Taiwan CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS.
Respondent Selection
In the Petition, the petitioner identified seven Companies in Taiwan as producers/exporters of monomers and oligomers. 30 Commerce intends to follow its standard practice in CVD investigations and calculate company-specific subsidy rates in this investigation. In the event that Commerce determines that the number of companies is large and it cannot individually examine each company based on Commerce's resources, Commerce intends to select mandatory respondents based on U.S. Customs and Border Protection (CBP) entry data for U.S. imports under the appropriate Harmonized Tariff Schedule of the United States (HTSUS) subheading(s) listed in the "Scope of the Investigation" in the appendix.
Footnotes:
30 ? See Petitions at Volume I (pages I-8 and I-9 and Exhibit I-7).
On April 15, 2025, Commerce released CBP data on imports of monomers and oligomers from Taiwan under administrative protective order (APO) to all parties with access to information protected by APO and indicated that interested parties wishing to comment on CBP data and/or respondent selection must do so within three business days of the publication date of the notice of initiation of this investigation. 31 Comments must be filed electronically using ACCESS. An electronically-filed document must be received successfully in its entirety via ACCESS by 5 p.m. ET on the specified deadline. Commerce will not accept rebuttal comments regarding the CBP data or respondent selection.
Footnotes:
31 ? See Memorandum, "Release of U.S. Customs and Border Protection Entry Data," dated April 15, 2025.
Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on Commerce's website at https://www.trade.gov/administrative-protective-orders .
Distribution of a Copy of the Petition
In accordance with section 702(b)(4)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the TA via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by section 702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date on which the Petition was filed, whether there is a reasonable indication that imports of monomers and oligomers from Taiwan are materially injuring, or threatening material injury to, a U.S. industry. 32 A negative ITC determination will result in the investigation being terminated. 33 Otherwise, this CVD investigation will proceed according to statutory and regulatory time limits.
Footnotes:
32 ? See section 703(a)(1) of the Act.
33 ? Id.
Submission of Factual Information
[top] Factual information is defined in 19 CFR 351.102(b)(21) as: (i) evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors of production under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by Commerce; and (v)
Footnotes:
34 ? See 19 CFR 351.301(b).
35 ? See 19 CFR 351.301(b)(2).
Extensions of Time Limits
Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by Commerce. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301, or as otherwise specified by Commerce. 36 For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10 a.m. ET on the due date. Under certain circumstances, Commerce may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, we will inform parties in a letter or memorandum of the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, standalone submission; under limited circumstances we will grant untimely filed requests for the extension of time limits, where we determine, based on 19 CFR 351.302, that extraordinary circumstances exist. Parties should review Commerce's regulations concerning the extension of time limits and the Time Limits Final Rule prior to submitting factual information in this investigation. 37
Footnotes:
36 ? See 19 CFR 351.302.
37 ? See 19 CFR 351.301; see also Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013) ( Time Limits Final Rule ), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm .
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information. 38 Parties must use the certification formats provided in 19 CFR 351.303(g). 39 Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements.
Footnotes:
38 ? See section 782(b) of the Act.
39 ? See Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) ( Final Rule ); see also frequently asked questions regarding the Final Rule, available at https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf .
Notification to Interested Parties
Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. Parties wishing to participate in this investigation should ensure that they meet the requirements of 19 CFR 351.103(d) ( e.g., by filing the required letters of appearance). Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f). 40
Footnotes:
40 ? See Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 67069 (September 29, 2023).
This notice is issued and published pursuant to sections 702 and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: April 16, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The products subject to this investigation are certain multifunctional acrylate and methacrylate monomers, and acrylated bisphenol-A epoxy based oligomers (collectively, certain monomers and oligomers or CMOs) that are derived from chemical reactions involving the use of acrylic or methacrylic acid. Products within the scope are listed below and have the following Chemical Abstracts Service (CAS) numbers:
| CAS No. | Description | Molecular formula |
|---|---|---|
| 109-16-0 | Triethylene glycol dimethacrylate (TEGDMA) | C 14 H 22 O 6 . |
| 13048-33-4 | 1,6-hexanediol diacrylate (HDDA) | C 12 H 18 O 4 . |
| 42978-66-5 | Tripropylene glycol diacrylate (TPGDA) | C 15 H 24 O 6 . |
| 3290-92-4 | Trimethylolpropane trimethacrylate (TMPTMA) | C 18 H 26 O 6 . |
| 15625-89-5 | Trimethylolpropane triacrylate (TMPTA) | C 15 H 20 O 6 . |
| 28961-43-5 | Ethoxylated trimethylol-propane triacrylate (EOTMPTA) | (C 2 H 4 O) n (C 2 H 4 O) n (C 2 H 4 O) n C 15 H 20 O 6 . |
| 57472-68-1 | Dipropylene glycol diacrylate (DPGDA) | C 12 H 18 O 5 . |
| 55818-57-0 | Bisphenol-A-epichlorohydrin copolymer acrylate (EPOXY ACRYLATE) | (C 15 H 16 O 2 ·C 3 H 5 ClO) x ·xC 3 H 4 O 2 . |
The monomers are generally known as multifunctional acrylates (MFAs) or multifunctional methacrylates (MFMAs) depending on whether the functional groups are acrylate or methacrylate. The monomers generally contain stabilizers/inhibitors, which include but are not limited to Hydroquinone, Methyl Hydroquinone, and Butylated Hydroxy Toluene. The monomers are either difunctional or trifunctional (having 2 or 3 functional groups/molecule), have viscosities of 9 to 15 centipoise (cPs) at 25 degrees Celsius (if difunctional) or 44 to 110 cPs at 25 degrees Celsius (if trifunctional), have (meth) acrylate equivalent weights (molecular weight per number of functional groups) between 99 and 158 and molecular weights between 226 and 472 grams per mol.
The acrylated bisphenol-A epoxy based oligomer is commonly referred to as epoxy acrylate or acrylated epoxy. In contrast to epoxy resin, the main characteristic of the epoxy acrylate oligomer is that it contains acrylate functional groups which make them curable by free-radical polymerization. The epoxy acrylate has a molecular weight between 508 to 536 grams per mol and a viscosity of 2400 to 3600 cPs at 65 degrees Celsius. The epoxy acrylate generally contains stabilizers/inhibitors, which include but are not limited to Hydroquinone, Methyl Hydroquinone, and Butylated Hydroxy Toluene.
Certain monomers and oligomers are subject to the scope even if an in-scope monomer or oligomer is blended or mixed with one or more other in-scope monomers or oligomers.
[top] Certain monomers and oligomers in any blend or mixture are also subject to the scope, so long as the blend or mixture
The scope includes merchandise matching the above description that has been processed in a third country, including by commingling, diluting, introducing, or removing ingredients, or performing any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the subject country.
The scope also includes CMOs that are commingled, mixed or blended with in-scope product from sources not subject to this investigation.
Only the subject component(s) of such blends, mixtures or commingled products described above is covered by the scope of this investigation. Subject merchandise contained in a blended, mixed or commingled product described above will not have undergone a chemical reaction as a result of being blended, mixed or commingled.
Notwithstanding the above, specifically excluded from the scope are downstream products, including but not limited to, inks, coatings and overprint varnishes. For purposes of this exclusion, the downstream product requires only the application of energy to be cured, e.g., inks or varnish applied to packaging, coatings applied to wood flooring, etc. The energy source required to cure the downstream product to its substrate can be thermal, ultraviolet radiation, visible light, electron beam radiation, or infrared radiation.
This merchandise is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 2916.12.5050, 2916.14.2050, 3824.99.2900, 3907.29.0000 and 3907.30.0000. Subject merchandise may also be entered under subheadings 2916.12.1000 and 3824.99.9397. The HTSUS subheadings and CAS registry numbers are provided for convenience and customs purposes only; the written description of the scope is dispositive.
[FR Doc. 2025-06934 Filed 4-22-25; 8:45 am]
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