[Federal Register Volume 76, Number 238 (Monday, December 12, 2011)]
[Notices]
[Pages 77206-77208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-31838]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-938]


Citric Acid and Certain Citrate Salts From the People's Republic 
of China: Final Results of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (``the Department'') has completed 
its administrative review of the countervailing duty (``CVD'') order on 
citric acid and certain citrate salts from the People's Republic of 
China (``PRC'') for the period September 19, 2008 through December 31, 
2009. On June 8, 2011, we published the preliminary results of this 
review. See Citric Acid and Certain Citrate Salts from the People's 
Republic of China: Preliminary Results of Countervailing Duty 
Administrative Review, 76 FR 33219 (June 8, 2011) (``Preliminary 
Results''). We provided interested parties with an opportunity to 
comment on the preliminary results. Our analysis of the comments 
submitted as well as incorporation of our post-preliminary analyses led 
to a change in the net subsidy rates. The final net subsidy rates for 
RZBC Co., Ltd.; RZBC Import & Export Co., Ltd.; RZBC (Juxian) Co., 
Ltd.; and RZBC Group Co., Ltd. (collectively, ``RZBC''), and Yixing-
Union Biochemical Co., Ltd. (``Yixing-Union'') and Yixing-Union 
Cogeneration Co., Ltd. (``Cogeneration'') (collectively, ``Yixing'') 
are listed below in the section entitled ``Final Results of Review.''

DATES: Effective Date: December 12, 2011.

FOR FURTHER INFORMATION CONTACT: David Layton or Austin Redington, AD/
CVD Operations, Office 1, Import Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW, Washington, DC 20230; 
telephone (202) 482-0371 and (202) 482-1664, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Following the Preliminary Results, on June 17, 2011, the Department 
requested clarification from Archer Daniels Midland Company; Cargill, 
Incorporated; and Tate & Lyle Americas (collectively, ``Petitioners'') 
regarding Petitioners' request for business proprietary treatment for 
certain alternative financial statements they had submitted on May 13 
and May 19, 2011, which Petitioners reported as originating with the 
respondents. Petitioners provided the requested clarification on June 
24, 2011.
    On July 12, 2011, the Department asked Petitioners to grant 
respondents direct access to the alternative financial statements. The 
Department further stated that if Petitioners did not agree to this 
disclosure, it would return the submissions to Petitioners. On July 25, 
2011, Petitioners refiled the May 13, and May 19, 2011 submissions 
without the alternative financial statements.
    The Department issued additional supplemental questionnaires to the 
Government of the People's Republic of China (``GOC''), RZBC and Yixing 
in July through October 2011, and received timely responses from all 
three parties. However, the Department returned two GOC responses to 
the July 21, 2011 supplemental questionnaire because they contained 
unsolicited new factual information.
    From August 29 through September 2, 2011, we conducted a 
verification of RZBC's questionnaire responses, and from September 5 
through September 9, 2011, we conducted a verification of Yixing's 
questionnaire responses. The Department released its verification 
reports for RZBC and Yixing to interested parties on October 17, 
2011.\1\
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    \1\ See Memorandum from Taija Slaughter and Jeff Pederson to the 
File ``Verification Report of the Response of RZBC Co., Ltd., RZBC 
Import & Export Co., Ltd., & RZBC (Juxian) Co., Ltd. in the 
Countervailing Duty Administrative Review of Citric Acid and Certain 
Citrate Salts from the People's Republic of China,'' dated October 
11, 2011; Memorandum from Taija Slaughter and Jeff Pederson to the 
File ``Verification Report of the Responses of Yixing Union 
Biochemical Co., Ltd. in the Countervailing Duty Administrative 
Review of Citric Acid and Certain Citrate Salts from the People's 
Republic of China,'' dated October 11, 2011.
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    The Department issued a preliminary creditworthiness determination 
for RZBC for years 2006 through 2009 on September 29, 2011.\2\ On 
October 11, 2011, the Department issued a preliminary creditworthiness 
determination with respect to the Yixing for years 2004 and 2005.\3\ 
The Department completed a post-preliminary analysis of seven subsidy 
programs reported by RZBC, and issued its preliminary findings on these 
programs on October 13, 2011.\4\
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    \2\ See Memorandum to Susan H. Kuhbach, Office Director, AD/CVD 
Operations, Office 1, from David Layton, International Trade 
Specialist, AD/CVD Operations, Office 1: Preliminary 
Creditworthiness Determination for RZBC Co., Ltd. (``RZBC Co.''); 
RZBC Import & Export Co., Ltd. (``RZBC IE''); and RZBC (Juxian) Co., 
Ltd. (``RZBC Juxian''); and RZBC Group Co., Ltd. (``RZBC Group'') 
(collectively, ``RZBC'') dated September 29, 2011.
    \3\ See Memorandum to Susan H. Kuhbach, Office Director, AD/CVD 
Operations, Office 1, from Austin Redington, International Trade 
Specialist AD/CVD Operations, Office 1: Preliminary Creditworthiness 
Determination for Yixing-Union Biochemical Co., Ltd. and Yixing-
Union Cogeneration Co., Ltd., dated October 11, 2011.
    \4\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Deputy Assistant Secretary for Import 
Administration, ``Post-Preliminary Analysis Memorandum for RZBC Co., 
Ltd. (``RZBC Co.''), RZBC Import & Export Co., Ltd. (``RZBC I&E''), 
RZBC (Juxian) Co., Ltd. (``RZBC Juxian''), RZBC Group Co., Ltd. 
(``RZBC Group'') (collectively, ``RZBC''), dated October 13, 2011.
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    In the Preliminary Results, we invited interested parties to submit 
briefs. We received case briefs from Yixing, RZBC, the GOC, and 
Petitioners on October 24, 2011. We received rebuttal briefs from 
Yixing and Petitioners on November 3, 2011. The Department also 
provided parties with the opportunity to submit separate comments and 
rebuttals with respect to the October 24, 2011 supplemental 
questionnaire response submitted by the GOC. The GOC provided comments 
on this later questionnaire response on October 31, 2011.

Scope of the Order

    The scope of the order includes all grades and granulation sizes of 
citric acid, sodium citrate, and potassium citrate in their unblended 
forms, whether dry or in solution, and regardless of packaging type. 
The scope also includes blends of citric acid, sodium citrate, and 
potassium citrate; as well as blends with other ingredients, such as 
sugar, where the unblended

[[Page 77207]]

form(s) of citric acid, sodium citrate, and potassium citrate 
constitute 40 percent or more, by weight, of the blend. The scope of 
the order also includes all forms of crude calcium citrate, including 
dicalcium citrate monohydrate, and tricalcium citrate tetrahydrate, 
which are intermediate products in the production of citric acid, 
sodium citrate, and potassium citrate. The scope of the order does not 
include calcium citrate that satisfies the standards set forth in the 
United States Pharmacopeia and has been mixed with a functional 
excipient, such as dextrose or starch, where the excipient constitutes 
at least 2 percent, by weight, of the product. The scope of the order 
includes the hydrous and anhydrous forms of citric acid, the dihydrate 
and anhydrous forms of sodium citrate, otherwise known as citric acid 
sodium salt, and the monohydrate and monopotassium forms of potassium 
citrate. Sodium citrate also includes both trisodium citrate and 
monosodium citrate, which are also known as citric acid trisodium salt 
and citric acid monosodium salt, respectively. Citric acid and sodium 
citrate are classifiable under 2918.14.0000 and 2918.15.1000 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''), 
respectively. Potassium citrate and crude calcium citrate are 
classifiable under 2918.15.5000 and 3824.90.9290 of the HTSUS, 
respectively. Blends that include citric acid, sodium citrate, and 
potassium citrate are classifiable under 3824.90.9290 of the HTSUS. 
Although the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the merchandise is dispositive.

Period of Review

    The period for which we are measuring subsidies, i.e., the period 
of review (``POR''), is September 19, 2008 through December 31, 
2009.\5\ Because the POR spans two calendar years, we are calculating 
separate CVD rates for September 19, 2008 through December 31, 2008; 
and January 1, 2009 through December 31, 2009.
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    \5\ For the purposes of the final results, we analyzed data for 
the period January 1, 2008, through December 31, 2008, to determine 
the subsidy rate for exports of subject merchandise made during the 
period in 2008 when liquidation of entries was suspended. In 
addition, we analyzed data for the period January 1, 2009 through 
December 31, 2009, to determine the subsidy rate for exports during 
that period. The 2009 subsidy rate will serve as the cash deposit 
rate for exports of subject merchandise subsequent to the 
publication of these final results.
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Scope Rulings

    On November 2, 2010, Aceto Corporation (``Aceto'') requested that 
the Department find its calcium citrate United States Pharmacopeia 
(``USP'') to be outside the scope of the CVD order and the antidumping 
duty orders on citric acid and certain citrate salts from the PRC and 
Canada. See Citric Acid and Certain Citrate Salts from the People's 
Republic of China; Notice of Countervailing Duty Order, 74 FR 25705 
(May 29, 2009) (``CVD Order''). See also Citric Acid and Certain 
Citrate Salts from Canada and the People's Republic of China: 
Antidumping Duty Orders, 74 FR 25703 (May 29, 2009) (``AD Orders''). On 
February 14, 2011, the Department issued a final scope ruling, finding 
that Aceto's product is within the scope of those orders. See 
Memorandum from Christopher Siepmann, International Trade Analyst, to 
Christian Marsh, Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, ``Citric Acid and Certain Citrate 
Salts: Scope Ruling for Calcium Citrate USP'' (February 14, 2011).
    On July 26, 2010, Global Commodity Group LLC (``GCG'') requested 
that the Department find a blend of citric acid it imports containing 
35 percent citric acid from the PRC and 65 percent citric acid from 
other countries is outside the scope of the CVD Order and the AD 
Orders. On May 2, 2011, the Department issued a final scope ruling, 
finding that GCG's product is within the scope of those orders. See 
Memorandum from Christopher Siepmann, International Trade Analyst, to 
Christian Marsh, Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, ``Citric Acid and Certain Citrate 
Salts: Final Determination on Scope Inquiry for Blended Citrate Acid 
from the People's Republic of China and Other Countries'' (May 2, 
2011). Pursuant to this ruling, we have instructed U.S. Customs and 
Border Protection (``CBP'') that the quantity of citric acid from the 
PRC in the commingled merchandise is subject to the CVD Order and AD 
Orders. We have also instructed CBP that if the quantity of citric acid 
from the PRC in a commingled shipment cannot be accurately determined, 
then the entire commingled quantity is subject to the orders.

Analysis of Comments Received

    All issues raised in the GOC's, Petitioners', RZBC's, and Yixing's 
case briefs are addressed in the Memorandum from Christian Marsh, 
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Assistant Secretary for Import 
Administration, entitled ``Issues and Decision Memorandum for the Final 
Results of the Countervailing Duty Administrative Review of Citric Acid 
and Certain Citrate Salts from the People's Republic of China,'' 
(December 5, 2011) (``Issues and Decision Memorandum''), which is 
hereby adopted by this notice. A list of the issues raised is attached 
to this notice as Appendix I. The Issues and Decision Memorandum is a 
public document and is on file electronically via Import 
Administration's Antidumping and Countervailing Duty Centralized 
Electronic Service System (``IA ACCESS''). Access to IA ACCESS is 
available in the Central Records Unit (``CRU''), room 7046 of the main 
Department of Commerce building. In addition, a complete version of the 
Issues and Decision Memorandum can be accessed directly on the Internet 
at http://www.trade.gov/ia/. The signed Issues and Decision Memorandum 
and the electronic versions of the Issues and Decision Memorandum are 
identical in content.

Changes Since the Preliminary Results and the Post-Preliminary Analyses

    (1) We recalculated the aggregate subsidy benefits separately for 
2008 and 2009 for outstanding loans received by RZBC companies under 
the Shandong Province Policy Loan program and Export Seller's Credit 
for High- and New-Technology Products programs, based on the whole year 
data and interest payments specific to each of those calendar years.
    (2) We included under the Shandong Province Policy Loan program 
RZBC's bankers' acceptances outstanding in 2008 and 2009.
    (3) We recalculated the aggregate subsidy benefit of loans 
outstanding in 2009 received by Yixing under the National Policy 
Lending program, using 2009-specific interest payments.
    (4) We recalculated the 2009 subsidy benefit from National Policy 
Lending program to include Yixing's bankers' acceptances outstanding in 
2009.
    (5) We recalculated the 2008 aggregate subsidy benefits from the 
GOC's provision of sulfuric acid for less than adequate remuneration 
(``LTAR'') for both RZBC and Yixing, and recalculated the 2009 
aggregate subsidy benefits from the GOC's provision of sulfuric acid 
for LTAR for RZBC.
    (6) Based on the finding that Yixing was uncreditworthy in certain 
earlier years we recalculated the allocated subsidy conferred by 
certain non-recurring grants for the Value-Added Tax and Duty 
Exemptions program,

[[Page 77208]]

using a discount rate applicable to uncreditworthy firms.
    (7) Based on our uncreditworthy determination for certain RZBC 
companies, we are applying an uncreditworthy benchmark rate to certain 
long-term loans received by RZBC companies in relevant years in our 
recalculation of the aggregate subsidy benefits for the Shandong Policy 
Loan and Export Seller's Credit for High- and New-Technology Products 
programs.
    (8) We are not calculating a subsidy rate for the GOC's provision 
of steam coal for LTAR for these final results because we have 
determined that we require more information on the de facto specificity 
of this program and, thus, will have to defer a decision on the 
program's countervailability to a future administrative review. See 
Issues and Decision Memorandum at Comment 6.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(5), we calculated individual 
ad valorum subsidy rates for RZBC and Yixing, the producers covered by 
this administrative review, as set forth below:

------------------------------------------------------------------------
                                         Net subsidy       Net subsidy
          Producer exporter              rate--2008        rate--2009
                                          (percent)         (percent)
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RZBC Co., Ltd.; RZBC Import & Export              7.44              8.93
 Co., Ltd.; RZBC (Juxian) Co., Ltd.;
 and RZBC Group Co., Ltd............
Yixing-Union Biochemical Co., Ltd.                5.65             16.13
 and Yixing-Union Cogeneration Co.,
 Ltd................................
------------------------------------------------------------------------

Assessment Rates

    The Department intends to issue appropriate assessment instructions 
directly to CBP 15 days after publication of these final results of 
review.

Cash Deposit Instructions

    The Department also intends to instruct CBP to collect cash 
deposits of estimated CVDs in the amounts shown above. These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.

Administrative Protective Order

    This notice serves as a reminder to parties subject to 
administrative protective order (``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 return or 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 a sanctionable violation.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: December 5, 2011.
Christian Marsh,
Acting Assistant Secretary for Import Administration.

Appendix--Issues and Decision Memorandum

General Issues

Comment 1 Application of CVD Law to the PRC and Double Remedy
Comment 2 Whether Application of the CVD Law to NMEs Violates the 
APA
Comment 3 Countervailability of Input Purchases Made Through Private 
Trading Companies

Case-Specific

Comment 4 Adjustment of the International Freight Benchmark Used To 
Measure the Benefit of Steam Coal Sold at LTAR
Comment 5 Whether Petitioners' Factual Information Submissions Were 
Properly Certified
Comment 6 Whether Steam Coal at LTAR Is Specific
Comment 7 Whether Sulfuric Acid at LTAR Is Specific
Comment 8 Application of AFA to Yixing for Sulfuric Acid LTAR
Comment 9 Use of Prices From Actual Transactions in the PRC (Tier 1 
Benchmark) To Measure Benefit of Sulfuric Acid LTAR
Comment 10 Evidence of Policy Lending
Comment 11 Whether Certain Input Suppliers Are Government 
Authorities

Respondent Specific

Comment 12 Whether Cogeneration Is the Parent of Yixing-Union
Comment 13 Application of the Upstream Subsidy Provision for the 
Steam Coal LTAR
Comment 14 Adequacy of Yixing's Cooperation in Providing Information 
on Affiliate
Comment 15 Whether the State Ownership Determination for Yixing's 
Affiliates Is Correct
Comment 16 Whether the Department Deprived Yixing of the Opportunity 
To Review Subsidy Calculations
Comment 17 Correction of AFA Ruling Based on RZBC Submission of 
Requested Information
Comment 18 Whether Department's Finding That RZBC Was Uncreditworthy 
Is Supported by Record Evidence
Comment 19 Whether the Department Provided the GOC the Opportunity 
To Correct Deficiencies Found in the Preliminary Results

[FR Doc. 2011-31838 Filed 12-9-11; 8:45 am]
BILLING CODE 3510-DS-P