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CSMS #41828321 - Initiation of AD/ CVD Investigations: Certain Corrosion Inhibitors from China

On February 25, 2020, the Department of Commerce (Commerce) initiated its less-than-fair-value and countervailing duty investigations on “Certain Corrosion Inhibitors from the People’s Republic of China (China)” (Initiation Notices).  These investigations have been assigned the following case numbers: A-570-122 and C-570-123.

The Scope of Merchandise covered by these investigations reads as follows:

The merchandise covered by this investigation is tolyltriazole and benzotriazole. This includes tolyltriazole and benzotriazole of all grades and forms, including their sodium salt forms.

Tolyltriazole is technically known as Tolyltriazole IUPAC 4,5 methyl benzotriazole. It can also be identified as 4, 5 methyl benzotriazole, tolutriazole, TTA, and TTZ.

Benzotriazole is technically known as IUPAC 1,2,3-Benzotriazole. It can also be identified as 1,2,3-Benzotriazole, 1,2-Aminozophenylene, 1H-Benzotriazole, and BTA.

All forms of tolyltriazole and benzotriazole, including but not limited to flakes, granules, pellets, prills, needles, powder, or liquids, are included within the scope of these petitions.

The scope includes tolyltriazole/sodium tolyltriazole and benzotriazole/sodium benzotriazole that are combined or mixed with other products. For such combined products, only the tolyltriazole/sodium tolyltriazole and benzotriazole/sodium benzotriazole component is covered by the scope of these investigations. Tolyltriazole and sodium tolyltriazole that have been combined with other products is included within the scope, regardless of whether the combining occurs in third countries.

Tolyltriazole, sodium tolyltriazole, benzotriazole and sodium benzotriazole that is otherwise subject to these investigations is not excluded when commingled with tolyltriazole, sodium tolyltriazole, benzotriazole, or sodium benzotriazole from sources not subject to these investigations. Only the subject merchandise component of such commingled products is covered by the scope of these investigations.

A combination or mixture is excluded from this investigation if the total tolyltriazole or benzotriazole component of the combination or mixture (regardless of the source or sources) comprises less than 5 percent of the combination or mixture, on a dry weight basis.

Not withstanding the foregoing language, a tolyltriazole or benzotriazole combination or mixture that is transformed through a chemical reaction into another product, such that, for example, the tolyltriazole or benzotriazole can no longer be separated from the other products through a distillation or other process is excluded from this investigation.

Tolyltriazole has the Chemical Abstracts Service (“CAS”) registry number 299385-43-1. Tolyltriazole is classified under Harmonized Tariff Schedule of the United States (“HTSUS”) subheading 2933.99.82.20.

Sodium Tolyltriazole has the CAS registry number 64665-57-2 and is classified under HTSUS subheading 2933.99.82.90.

Benzotriazole has the CAS registry number #95-14-7 and is classified under HTSUS subheading 2933.99.82.10.

Sodium Benzotriazole has the CAS registry number 15217-42-2. Sodium Benzotriazole is classified under HTSUS subheading 2933.99.82.90.

Although the HTSUS subheadings and CAS registry numbers are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.

Requirements For Submitting Comments On The Scope Of The Investigations:

Please be sure to comply with all three requirements established below.

Deadline for Submitting Comments:
As announced in the Initiation Notices, Commerce is setting aside a period for interested parties to raise issues regarding product coverage (scope). The period for scope comments is intended to provide Commerce with ample opportunity to consider all comments and to consult with parties prior to the issuance of the preliminary determinations, as appropriate. If scope comments include factual information (see 19 CFR 351.102(b)(21)), all such factual information should be limited to public information. Commerce requests that all such comments be filed by 5:00 p.m. Eastern Time (ET) on March 16, 2020, which is 20 calendar days from the signature date of the initiation notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on March 26, 2020, which is 10 calendar days after the initial comments deadline. Commerce requests that any factual information the parties consider relevant to the scope of the investigations be submitted during this time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigations may be relevant, the party may contact Commerce and request permission to submit the additional information. All such comments must be filed on the records of each of the concurrent AD and CVD investigations identified above.

Required Entry of Appearance:
Parties wishing to participate in this segment and be included on the public service list must file a letter of appearance. Section 351.103(d)(1) of Commerce’s regulations states that “with the exception of a petitioner filing a petition in an investigation, to be included on the public service list for a particular segment, each interested party must file a letter of appearance.” The letter of appearance must be filed separately from any other document (with the exception of an application for APO access). Note, the letter of appearance must state how the party qualifies as an interested party (e.g., an exporter, producer, importer of the subject merchandise) and must include a point of contact, including address, telephone/fax number and email address.

All submissions to Commerce must be filed electronically using Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). An electronically-filed document must be received successfully in its entirety by the time, typically 5 p.m., and date when it is due. Documents excepted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, and stamped with the date and time of receipt by the applicable deadlines.

For your convenience, Commerce has the following resources available online to assist you in complying with these electronic filing procedures:

• ACCESS: Help Link
  • https://access.trade.gov/help.aspx
• ACCESS: External User Guide
  • https://access.trade.gov/help/ACCESS_User_Guide.pdf
  • ACCESS: Handbook on Electronic Filing Procedures
    https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf
• Federal Register notice: Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011)
  • http://www.gpo.gov/fdsys/pkg/FR-2011-07-06/pdf/2011-16352.pdf
• Enforcement and Compliance: Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014)
  • http://www.gpo.gov/fdsys/pkg/FR-2014-11-20/pdf/2014-27530.pdf
• Enforcement and Compliance: General Filing Requirements
  • http://enforcement.trade.gov/filing/index.html

Required Certifications:
Please note that certification requirements are in effect for company / government officials as well as their representatives. In all segments of antidumping duty or countervailing duty proceedings, parties submitting factual information must adhere to 19 CFR 351.303(g) regarding the requirement to certify submissions of factual information.

Understanding Critical Circumstances for Antidumping and Countervailing Duties
Critical circumstances is a provision in both the antidumping and countervailing
Duty (AD/CVD) laws that allows for the limited retroactive imposition of duties if certain conditions are met. Importers should be aware that entries of subject merchandise made after the initiation of an AD/CVD investigation may retroactively be subject to AD/CVD.

A finding of critical circumstances is an important tool for Commerce and the U.S. International Trade Commission (ITC) to offset possible import surges during the early period of an AD/CVD investigation. The petitioner in an AD/CVD investigation may allege critical circumstances during an investigation up to 21 days before the date of Commerce’s final determination. If Commerce makes a determination that critical circumstances exist, it has the statutory authority to order the retroactive suspension of liquidation and posting of a cash deposit for entries made before the issuance of a Preliminary and/or Final AD/CVD determination.

Commerce’s authority to suspend entries retroactively for AD/CVD is limited to those entries made on or after the later of: (1) 90 days before the effective date the suspension of liquidation was first ordered, or (2) the date on which the determination to initiate the investigation is published in the Federal Register. In either case, AD/CVD cash deposits are due on entries subject to critical circumstances determinations.

If, following a preliminary determination by Commerce that critical circumstances exist, both Commerce and the ITC reach a final affirmative determination of dumping or subsidization, but either agency makes a negative final determination of critical circumstances, Commerce will instruct U.S. Customs and Border Protection (CBP) to lift suspension from the entries made during the 90-day critical circumstances period and refund cash deposits made with respect to those entries. Interest is not payable on refunds of cash deposits at this stage in the AD/CVD case.

For Further Information Contact:
AD/CVD Operations, Enforcement and Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230:

Lochard Philozin or Nicholas Czajkowski at (202) 482-4260 or (202) 482-1395, respectively (Antidumping Duty Investigation from China); and
Theodore Pearson or Nicholas Czajkowski at (202) 482-2631 or (202) 482-1395, respectively (Countervailing Duty Investigation from China).

Determinations related to these proceedings, issued by Commerce and the ITC, will be published in the Federal Register. Parties may also view Commerce’s public AD/CVD instructions to CBP in ACE and “ADD CVD Search” at https://aceservices.cbp.dhs.gov/adcvdweb.