Melamine From Japan: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Affirmative Determination of Critical Circumstances, In Part

<NOTICE> DEPARTMENT OF COMMERCE <SUBAGY>International Trade Administration</SUBAGY> <DEPDOC>[A-588-882]</DEPDOC> <SUBJECT>Melamine From Japan: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Affirmative Determination of Critical Circumstances, In Part</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Enforcement and Compliance, International Trade Administration, Department of Commerce. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The U.S. Department of Commerce (Commerce) preliminarily determines that melamine from Japan is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> Applicable September 24, 2024. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> George McMahon, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1167. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Background</HD> This preliminary determination is made in accordance with section 733(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on March 11, 2024. <SU>1</SU> <FTREF/> On June 18, 2024, Commerce postponed the preliminary determination of this investigation. <SU>2</SU> <FTREF/> On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days. <SU>3</SU> <FTREF/> The deadline for the preliminary determination is now September 18, 2024. <FTNT> <SU>1</SU>   <E T="03">See Melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago: Initiation of Less-Than-Fair-Value Investigations,</E> 89 FR 17413 (March 11, 2024) ( <E T="03">Initiation Notice</E> ). </FTNT> <FTNT> <SU>2</SU>   <E T="03">See Melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations,</E> 89 FR 52437 (June 24, 2024). </FTNT> <FTNT> <SU>3</SU>   <E T="03">See</E> Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024. </FTNT> For a complete description of the events that followed the initiation of this investigation, <E T="03">see</E> the Preliminary Decision Memorandum. <SU>4</SU> <FTREF/> A list of topics included in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary 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 <E T="03">https://access.trade.gov.</E> In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E> <FTNT> <SU>4</SU>   <E T="03">See</E> Memorandum, “Decision Memorandum for the Preliminary Determination in the Less-Than-Fair-Value Investigation of Melamine from Japan,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). </FTNT> <HD SOURCE="HD1">Scope of the Investigation</HD> The product covered by this investigation is melamine from Japan. For a full description of the scope of this investigation, <E T="03">see</E> Appendix I. <HD SOURCE="HD1">Scope Comments</HD> In accordance with the <E T="03">Preamble</E> to Commerce's regulations, <SU>5</SU> <FTREF/> we set aside a period of time, as stated in the <E T="03">Initiation Notice,</E> for parties to raise issues regarding product coverage ( <E T="03">i.e.,</E> scope). <SU>6</SU> <FTREF/> No interested party commented on the scope of the investigation as it appeared in the <E T="03">Initiation Notice.</E> Commerce is not modifying the scope language as it appeared in the <E T="03">Initiation Notice. See</E> the complete description of the scope in Appendix I to this notice. <FTNT> <SU>5</SU>   <E T="03">See Antidumping Duties; Countervailing Duties,</E> 62 FR 27296, 27323 (May 19, 1997) ( <E T="03">Preamble</E> ). </FTNT> <FTNT> <SU>6</SU>   <E T="03">See Initiation Notice,</E> 89 FR at 17413. </FTNT> <HD SOURCE="HD1">Methodology</HD> Commerce is conducting this investigation in accordance with section 731 of the Act. Pursuant to section 776(a) of the Act, Commerce preliminarily relied upon facts otherwise available to assign an estimated weighted-average dumping margin to Mitsui Chemicals, the sole mandatory respondent in this investigation because Mitsui Chemicals did not submit a response to Commerce's antidumping duty questionnaire. Further, Commerce preliminarily determines that Mitsui Chemicals failed to cooperate by not acting to the best of its ability to comply with a request for information and Commerce is using an adverse inference in selecting from among the facts otherwise available ( <E T="03">i.e.,</E> applying adverse facts available (AFA) to this respondent, in accordance with section 776(b) of the Act). For a full description of the methodology underlying our preliminary determination, <E T="03">see</E> the Preliminary Decision Memorandum. <HD SOURCE="HD1">Preliminary Affirmative Determination of Critical Circumstances, in Part</HD> On June 17, 2024, the petitioner  <SU>7</SU> <FTREF/> timely filed a critical circumstances allegation, pursuant to section 733(e)(1) of the Act and 19 CFR 351.206(c)(1), alleging that critical circumstances exist with respect to imports of the subject merchandise from Japan. <SU>8</SU> <FTREF/> Section 733(e)(1) of the Act provides that Commerce will preliminarily determine that critical circumstances exist in an LTFV investigation if there is a reasonable basis to believe or suspect that: (A) there is a history of dumping and material injury by reason of dumped imports in the United States or elsewhere of the subject merchandise, or the person by whom, or for whose account, the merchandise was imported knew or should have known that the exporter was selling the subject merchandise at less than its fair value and that there was likely to be material injury by reason of such sales; and (B) there have been massive imports of the subject merchandise over a relatively short period. <FTNT> <SU>7</SU>  The petitioner is Cornerstone Chemical Company. </FTNT> <FTNT> <SU>8</SU>   <E T="03">See</E> Petitioner's Letter, “Allegation of Critical Circumstances,” dated June 17, 2024 (Critical Circumstances Allegation). </FTNT> In accordance with section 733(e) of the Act and 19 CFR 351.206, we preliminarily determine that critical circumstances exist with respect to imports of melamine produced and exported by Mitsui Chemicals. Furthermore, we preliminarily determine that critical circumstances do not exist with respect to imports of melamine produced and exported by all other producers and exporters from Japan. For a full description of Commerce's preliminary critical circumstances determination, <E T="03">see</E> the Preliminary Decision Memorandum. <HD SOURCE="HD1">All-Others Rate</HD> Section 733(d)(1)(ii) of the Act provides that, in a preliminary determination, Commerce shall determine an estimated all-others rate for all exporters and producers not individually investigated in accordance with section 735(c)(5) of the Act. Section 735(c)(5)(A) of the Act states that generally the estimated rate for all others 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 <E T="03">de minimis</E> margins, and any margins determined entirely under section 776 of the Act. The estimated weighted-average dumping margin in this preliminary determination was determined entirely under section 776 of the Act. In cases where no weighted-average dumping margins other than zero, <E T="03">de minimis,</E> or those determined entirely under section 776 of the Act have been established for individually examined entities, in accordance with section 735(c)(5)(B) of the Act, Commerce typically calculates a simple average of the margins alleged in the petition and applies the results to all other entities not individually examined. <SU>9</SU> <FTREF/> <FTNT> <SU>9</SU>   <E T="03">See, e.g.,</E> <E T="03">Thermal Paper from Spain: Final Determination of Sales at Less Than Fair Value,</E> 86 FR 54162, 54163 (September 30, 2021), and accompanying Issues and Decision Memorandum. </FTNT> In the Petition, <SU>10</SU> <FTREF/> the petitioner alleged two estimated dumping margins for Japan, 102.53 and 127.69 percent. <SU>11</SU> <FTREF/> Therefore, consistent with our practice, for the all-others rate in this investigation, we preliminarily assign a simple average of the dumping margins alleged in the Petition, which is 115.11 percent. <FTNT> <SU>10</SU>   <E T="03">See</E> Petitioner's Letter, “Melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago: Petition for the Imposition of Antidumping Duties,” dated February 14, 2024 (Petition). </FTNT> <FTNT> <SU>11</SU>   <E T="03">See Initiation Notice,</E> 89 FR at 17416. </FTNT> <HD SOURCE="HD1">Preliminary Determination</HD> Commerce preliminarily determines that the following estimated weighted-average dumping margins exist during the period January 1, 2023, through December 31, 2023: <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25, ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 20k characters. 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