Melamine From the Netherlands: Preliminary Affirmative Determination of Sales at Less Than Fair Value

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Federal RegisterSep 24, 2024
89 Fed. Reg. 77829 (Sep. 24, 2024)
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    Department of Commerce International Trade Administration
  • [A-421-817]
  • AGENCY:

    Enforcement and Compliance, International Trade Administration, Department of Commerce.

    SUMMARY:

    The U.S. Department of Commerce (Commerce) preliminarily determines that melamine from the Netherlands is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.

    DATES:

    Applicable September 24, 2024.

    FOR FURTHER INFORMATION CONTACT:

    Fred Baker, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2924.

    SUPPLEMENTARY INFORMATION:

    Background

    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. On June 18, 2024, Commerce postponed the preliminary determination of this investigation. On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days. The deadline for the preliminary determination is now September 18, 2024.

    See Melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago: Initiation of Less-Than-Fair-Value Investigations, 89 FR 17413 (March 11, 2024) ( Initiation Notice).

    See Melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations, 89 FR 52437 (June 24, 2024).

    See Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024.

    For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum. 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 https://access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.

    See Memorandum, “Decision Memorandum for the Preliminary Affirmative Determination in the Less-Than-Fair-Value Investigation of Melamine from the Netherlands,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).

    Scope of the Investigation

    The product covered by this investigation is melamine from the Netherlands. For a full description of the scope of this investigation, see Appendix I.

    Scope Comments

    In accordance with the Preamble to Commerce's regulations, we set aside a period of time, as stated in the Initiation Notice, for parties to raise issues regarding product coverage ( i.e., scope). No interested party commented on the scope of the investigation as it appeared in the Initiation Notice. Commerce is not modifying the scope language as it appeared in the Initiation Notice. See the complete description of the scope in Appendix I to this notice.

    See Antidumping Duties; Countervailing Duties,62 FR 27296, 27323 (May 19, 1997) ( Preamble).

    See Initiation Notice, 89 FR at 17413.

    Methodology

    Commerce is conducting this investigation in accordance with section 731 of the Act. Pursuant to section 776(a) of the Act, Commerce has preliminarily relied upon facts otherwise available to assign an estimated weighted-average dumping margin to OCI Nitrogen, the mandatory respondent in this investigation because OCI Nitrogen did not submit a complete response to Commerce's antidumping duty questionnaire. Further, Commerce preliminarily determines that OCI Nitrogen 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 ( i.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, see the Preliminary Decision Memorandum.

    All-Others Rate

    Sections 733(d)(1)(ii) of the Act provides that, in the 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 de minimis rates, and any rates 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, de minimis, 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 dumping margins alleged in the petition and applies the results to all other entities not individually examined.

    See, e.g., Thermal Paper from Spain: Final Determination of Sales at Less Than Fair Value,86 FR 54162, 54163 (September 30, 2021), and accompanying Issues and Decision Memorandum.

    In the Petition, Cornerstone Chemical Company (the petitioner) alleged two estimated dumping margins for the Netherlands, 34.84 and 72.16 percent. 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 53.50 percent.

    See Petitioner's Letter, “Melamine from Germany, Japan, the Netherlands, Qatar, and Trinidad and Tobago: Petition for the Imposition of Antidumping Duties,” dated February 14, 2024 (Petition); Petitioner's Letter, “Petitioner's Response to Volume V Supplemental Questionnaire (Netherlands Antidumping),” dated February 22, 2024 (Netherlands SQR).

    Preliminary Determination

    Commerce preliminarily determines that the following estimated weighted-average dumping margins exist during the period January 1, 2023, through December 31, 2023:

    Exporter/producer Weighted- average dumping margin (percent)
    OCI Nitrogen B.V * 72.16
    All Others 53.50
    * Rate is based on AFA.