[Federal Register Volume 78, Number 107 (Tuesday, June 4, 2013)]
[Notices]
[Pages 33351-33354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13220]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-985]


Xanthan Gum From the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value

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

DATES: Effective Date: June 4, 2013.
SUMMARY: On January 10, 2013, the Department of Commerce 
(``Department'') published its preliminary determination of sales at 
less than fair value (``LTFV'') and postponement of final determination 
in the antidumping (``AD'') investigation of xanthan gum from the 
People's Republic of China (``PRC'').\1\ On March 4, 2013, the 
Department released its post-preliminary differential pricing 
analysis.\2\ The Department invited interested parties to comment on 
the Preliminary Determination and post-preliminary analysis. Based on 
an analysis of the comments received, the Department has made changes 
from the Preliminary Determination. The Department has determined that 
xanthan gum from the PRC is being, or is likely to be, sold in the 
United States at LTFV, as provided in section 735 of the Tariff Act of 
1930, as amended (``the Act''). The final weighted-average dumping 
margins for this investigation are listed in the ``Final 
Determination'' section below.
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    \1\ See Xanthan Gum from the People's Republic of China: 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination, 77 FR 2252 (January 10, 2013) 
(``Preliminary Determination'').
    \2\ See ``Less Than Fair Value Investigation of Xanthan Gum from 
the People's Republic of China: Post-Preliminary Analysis and 
Calculation Memorandum for Neimenggu Fufeng Biotechnologies Co., 
Ltd. (aka Inner Mongolia Fufeng Biotechnologies Co., Ltd.) and 
Shandong Fufeng Fermentation Co., Ltd.,'' dated March 4, 2013; see 
also ``Less Than Fair Value Investigation of Xanthan Gum from the 
People's Republic of China: Post-Preliminary Analysis and 
Calculation Memorandum for Deosen Biochemical Ltd.,'' dated March 4, 
2013.

FOR FURTHER INFORMATION CONTACT: Brandon Farlander or Erin Kearney, AD/
CVD Operations, Office 4, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0182 or (202) 482-0167, respectively.

[[Page 33352]]


SUPPLEMENTARY INFORMATION: 

Background

    The Department published its Preliminary Determination on January 
10, 2013.\3\ At the Department's request, Fufeng and Deosen submitted 
supplemental questionnaire responses on February 25 and February 26, 
2013, respectively. On February 15, 2013, in response to a request 
filed by Deosen, the Department extended the deadline for submission of 
publicly available information to February 22, 2013, and the due date 
for rebuttal information to March 4, 2013. On February 22, 2013, 
Petitioner, Deosen, and Fufeng submitted surrogate value (``SV'') 
information, and Petitioner, Deosen, and Fufeng submitted rebuttal 
comments to this information on March 4, 2013. Also on March 4, 2013, 
the Department released its post-preliminary differential pricing 
analysis and extended the deadline for submission of case briefs to 
March 12, 2013, and the due date for rebuttal briefs to March 18, 
2013.\4\ On March 15, 2013, in response to a request from Fufeng, the 
Department extended the deadline for submission of rebuttal briefs to 
March 19, 2013.
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    \3\ The Department postponed the deadline for the final 
determination to not later than 135 days after publication of the 
Preliminary Determination (i.e., January 10, 2013). See Preliminary 
Determination, 78 FR at 2254. However, because May 25, 2013, falls 
on a non-business day, the revised deadline for this final 
determination is now May 28, 2013. See Notice of Clarification: 
Application of ``Next Business Day'' Rule for Administrative 
Determination Deadlines Pursuant to the Tariff Act of 1930, As 
Amended, 70 FR 24533 (May 10, 2005).
    \4\ See ``Less Than Fair Value Investigation of Xanthan Gum from 
the People's Republic of China: Post-Preliminary Analysis and 
Calculation Memorandum for Neimenggu Fufeng Biotechnologies Co., 
Ltd. (aka Inner Mongolia Fufeng Biotechnologies Co., Ltd.) and 
Shandong Fufeng Fermentation Co., Ltd.,'' dated March 4, 2013; see 
also ``Less Than Fair Value Investigation of Xanthan Gum from the 
People's Republic of China: Post-Preliminary Analysis and 
Calculation Memorandum for Deosen Biochemical Ltd.,'' dated March 4, 
2013.
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    Petitioner, Deosen, and Fufeng submitted case briefs on March 12, 
2013,\5\ and rebuttal briefs on March 19, 2013.\6\ On March 27, 2013, 
the Department rejected Deosen's rebuttal brief. Deosen resubmitted its 
rebuttal brief, at the Department's request, on March 29, 2013.\7\ We 
did not receive briefs or rebuttal briefs from any other interested 
party to the investigation. At the request of Deosen, Fufeng, and 
Petitioner, the Department held a public hearing on April 11, 2013.
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    \5\ See ``Xanthan Gum from the People's Republic of China: 
Petitioner's Case Brief,'' dated March 12, 2013 (``Petitioner Case 
Brief''); see also ``Neimenggu Fufeng's Administrative Case Brief,'' 
dated March 12, 2013 (``Fufeng Case Brief''); ``Case Brief of Deosen 
Biochemical and Deosen USA: Xanthan Gum from China,'' dated March 
13, 2013 (``Deosen Case Brief'').
    \6\ See ``Xanthan Gum from the People's Republic of China: 
Petitioner's Rebuttal Case Brief,'' dated March 19, 2013 
(``Petitioner Rebuttal Brief''); see also ``Neimenggu Fufeng 
Biotechnologies Co., Ltd. Rebuttal Case Brief,'' dated March 20, 
2013 (``Fufeng Rebuttal Brief'').
    \7\ See ``Rebuttal Brief of Deosen Biochemical and Deosen USA,'' 
dated March 29, 2013 (``Deosen Rebuttal Brief'').
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Period of Investigation

    The period of investigation (``POI'') is October 1, 2011, through 
March 31, 2012. This period corresponds to the two most recent fiscal 
quarters prior to the month of the filing of the petition, which was 
June 2012.\8\
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    \8\ See 19 CFR 351.204(b)(1).
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Verification

    As provided in section 782(i) of the Act, between January 14 and 
January 29, 2013, the Department verified the information submitted by 
Deosen and Fufeng for use in the final determination.\9\ Verification 
reports were issued on February 20, 2013. The Department used standard 
verification procedures, including examination of relevant accounting 
and production records and original source documents provided by 
respondents.
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    \9\ See the Department's Memoranda to the File, entitled 
``Verification of the Sales and Factors Responses of Neimenggu 
Fufeng Biotechnologies Co., Ltd. and its affiliate Shandong Fufeng 
Fermentation Co., Ltd. in the Investigation of Xanthan Gum from the 
People's Republic of China,'' dated February 20, 2013, 
``Verification of the Questionnaire Responses of Deosen Biochemical 
Ltd.,'' dated February 20, 2013, and ``Verification of the 
Questionnaire Responses of Deosen USA Inc.,'' dated February 20, 
2013, on the record of this investigation on file electronically via 
Import Administration's Antidumping and Countervailing Duty 
Centralized Electronic Service System (IA ACCESS). IA ACCESS is 
available to registered users at http://iaaccess.trade.gov and in 
the Central Records Unit (``CRU''), room 7046 of the main Department 
of Commerce, with respect to these entities.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision 
Memorandum.\10\ A list of the issues which parties raised and to which 
we respond in the Issues and Decision Memorandum is attached to this 
notice as an Appendix. 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 to registered 
users at http://iaaccess.trade.gov, and is available to all parties in 
the Central Records Unit, which is in 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 
www.trade.gov/ia. The signed Issues and Decision Memorandum and the 
electronic versions of the Issues and Decision Memorandum are identical 
in content.
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    \10\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Acting Assistant Secretary for Import 
Administration, ``Issues and Decision Memorandum for the Final 
Determination of the Antidumping Duty Investigation of Xanthan Gum 
from the People's Republic of China'' (May 28, 2013) (``Issues and 
Decision Memorandum'').
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Changes Since the Preliminary Determination

Changes Applicable to Multiple Companies

     We applied a differential pricing analysis to determine 
the comparison method, rather than the targeted dumping test.\11\
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    \11\ See Issues and Decision Memorandum.
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     We valued truck freight using the World Bank's Doing 
Business 2013: Thailand report.\12\
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    \12\ See id. at Comment 6-A.
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     We valued brokerage and handling using the World Bank's 
Doing Business 2013: Thailand report.\13\
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    \13\ See id. at Comment 6-B.
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     We valued labor using Thai National Statistics Office 2007 
data.\14\
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    \14\ See id. at Comment 6-C.
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     We valued electricity using the Electricity Generating 
Authority of Thailand's 2011 Annual Report.\15\
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    \15\ See id. at Comment 6-D.
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     We revised the SV used to value hydrochloric acid.\16\
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    \16\ See id. at Comment 6-F.
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Changes Specific to Fufeng

     We declined to grant Fufeng's by-product offsets for 
clinker and corn rejects.\17\
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    \17\ See id. at Comment 12-C.
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     We revised Fufeng's FOP allocation methodology for its 
energy FOPs and did not grant Fufeng's steam by-product offset.\18\
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    \18\ See id. at Comment 9.
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     We revised the SV used to value Fufeng's corn protein 
powder by-product.\19\
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    \19\ See id. at Comment 12-A.
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     We revised the SV used to value Fufeng's caustic soda.\20\
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    \20\ See id. at Comment 11-C.
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     We revised the SV used to value Fufeng's corn embryo by-
product.\21\
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    \21\ See id. at Comment 12-B.
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     We revised Fufeng's corn embryo, corn protein powder, and 
protein feed by-products to include packing materials.\22\
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    \22\ See the Department's Memorandum entitled, ``Antidumping 
Duty Investigation of Xanthan Gum from the People's Republic of 
China: Final Determination Analysis Memorandum for Neimenggu Fufeng 
Biotechnologies Co., Ltd. (aka Inner Mongolia Fufeng Biotechnologies 
Co., Ltd.) and Shandong Fufeng Fermentation Co., Ltd.,'' dated May 
28, 2013.

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[[Page 33353]]

     We revised Fufeng's marine insurance calculation.\23\
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    \23\ See id.
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Changes Specific to Deosen

     We valued the water FOP for Deosen's Ordos factory.\24\
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    \24\ See Issues and Decision Memorandum at Comment 18.
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     We revised the SV used to value Deosen's metal buckle 
input.\25\
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    \25\ See id. at Comment 19-C.
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     We revised Deosen's calculations for certain U.S. 
expenses.\26\
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    \26\ See id. at Comment 21.
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     We revised Deosen's calculations for certain U.S. indirect 
selling expenses.\27\
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    \27\ See id. at Comment 22.
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     We corrected the ministerial error identified in the 
Preliminary Determination.\28\
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    \28\ See id. at Comment 23.
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    For detailed information concerning all of the changes made, 
including those listed above, see the company-specific analysis and SV 
memoranda.

Scope of the Investigation

    The scope of this investigation covers dry xanthan gum, whether or 
not coated or blended with other products. Further, xanthan gum is 
included in this investigation regardless of physical form, including, 
but not limited to, solutions, slurries, dry powders of any particle 
size, or unground fiber.
    Xanthan gum that has been blended with other product(s) is included 
in this scope when the resulting mix contains 15 percent or more of 
xanthan gum by dry weight. Other products with which xanthan gum may be 
blended include, but are not limited to, sugars, minerals, and salts.
    Xanthan gum is a polysaccharide produced by aerobic fermentation of 
Xanthomonas campestris. The chemical structure of the repeating 
pentasaccharide monomer unit consists of a backbone of two P-1,4-D-
Glucose monosaccharide units, the second with a trisaccharide side 
chain consisting of P-D-Mannose-(1,4)- P-DGlucuronic acid-(1,2)-a-D-
Mannose monosaccharide units. The terminal mannose may be pyruvylated 
and the internal mannose unit may be acetylated.
    Merchandise covered by the scope of this investigation is 
classified in the Harmonized Tariff Schedule (``HTS'') of the United 
States at subheading 3913.90.20. This tariff classification is provided 
for convenience and customs purposes; however, the written description 
of the scope is dispositive.

Combination Rates

    In the Initiation Notice, the Department stated that it would 
calculate combination rates for respondents that are eligible for a 
separate rate in this investigation.\29\ This practice is described in 
Policy Bulletin 05.1, available at http://www.trade.gov/ia/.
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    \29\ See Xanthan Gum From Austria and the People's Republic of 
China: Initiation of Antidumping Duty Investigations, 77 FR 39210 
(July 2, 2012) (``Initiation Notice'').
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Final Determination

    Because the PRC-wide entity did not provide the Department with 
requested information, pursuant to section 776(a)(2)(A) of the Act, the 
Department continues to find it appropriate to base the PRC-wide rate 
on facts available.\30\ The Department determines that the following 
weighted-average dumping margins exist for the period October 1, 2011, 
through March 31, 2012.
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    \30\ See Issues and Decision Memorandum.

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
            Exporter                     Producer         dumping margin
                                                             (percent)
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Neimenggu Fufeng                 Neimenggu Fufeng                  15.09
 Biotechnologies Co., Ltd. (aka   Biotechnologies Co.,
 Inner Mongolia Fufeng            Ltd. (aka Inner
 Biotechnologies Co., Ltd.)/      Mongolia Fufeng
 Shandong Fufeng Fermentation     Biotechnologies Co.,
 Co., Ltd.                        Ltd.)/Shandong Fufeng
                                  Fermentation Co., Ltd.
Deosen Biochemical Ltd.........  Deosen Biochemical Ltd./         128.32
                                  Deosen Biochemical
                                  (Ordos) Ltd.
A.H.A. International Co., Ltd..  Shandong Fufeng                   71.71
                                  Fermentation Co., Ltd.
A.H.A. International Co., Ltd..  Deosen Biochemical Ltd.           71.71
CP Kelco (Shandong) Biological   CP Kelco (Shandong)               71.71
 Company Limited.                 Biological Company
                                  Limited.
Hebei Xinhe Biochemical Co. Ltd  Hebei Xinhe Biochemical           71.71
                                  Co. Ltd.
Shanghai Smart Chemicals Co.     Deosen Biochemical Ltd.           71.71
 Ltd.
PRC-Wide Entity *..............  .......................          154.07
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* The PRC-wide entity includes Shandong Yi Lian Cosmetics Co., Ltd.,
  Shanghai Echem Fine Chemicals Co., Ltd., Sinotrans Xiamen Logistics
  Co., Ltd., and Zibo Cargill HuangHelong Bioengineering Co., Ltd.

Disclosure

    In accordance with 19 CFR 351.224(b), the Department will disclose 
the calculations performed in this investigation to parties within five 
days of the date of publication of this notice in the Federal Register.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (``CBP'') to continue 
to suspend liquidation of all appropriate entries of xanthan gum from 
the PRC as described in the ``Scope of the Investigation'' section, 
which were entered, or withdrawn from warehouse, for consumption on or 
after January 10, 2013, the date of publication of the Preliminary 
Determination in the Federal Register. Further, the Department will 
instruct CBP to require a cash deposit equal to the weighted-average 
amount by which the normal value exceeds U.S. price as follows: (1) For 
the exporter/producer combinations listed in the table above, the cash 
deposit rate will be equal to the weighted-average dumping margin which 
the Department has determined in this final determination; (2) for all 
combinations of PRC exporters/producers of merchandise under 
consideration which have not received their own separate rate above, 
the cash deposit rate will be equal to the weighted-average dumping 
margin established for the PRC-wide entity; and (3) for all non-PRC 
exporters of merchandise under consideration which have not received 
their own separate rate above, the cash deposit rate will be equal to 
the cash deposit rate applicable to the PRC exporter/producer 
combination that supplied that non-PRC exporter.

[[Page 33354]]

    These suspension-of-liquidation instructions will remain in effect 
until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, the Department has 
notified the International Trade Commission (``ITC'') of the final 
affirmative determination of sales at LTFV. In accordance with section 
735(b)(2) of the Act, the ITC will determine, within 45 days, whether 
the domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports, or sales (or the 
likelihood of sales) for importation, of the merchandise under 
consideration. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all securities posted will be refunded. If the ITC determines that such 
injury does exist, the Department will issue an antidumping duty order 
directing CBP to assess, upon further instruction by the Department, 
antidumping duties on all imports of the subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation.

Notification Regarding Administrative Protective Orders

    This notice also serves as a reminder to the parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305. 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 terms of an APO is a sanctionable violation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: May 28, 2013.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix--Issues for the Final Determination

Comment 1: Surrogate Country
Comment 2: Surrogate Financial Statements
Comment 3: Comparison Methodology
Comment 4: Use of Indonesian Export Data
Comment 5: Valuation of Bacteria
Comment 6: General Surrogate Values
    Comment 6-A: Truck Freight
    Comment 6-B: Brokerage and Handling
    Comment 6-C: Labor
    Comment 6-D: Electricity
    Comment 6-E: Sodium Hypochlorite
    Comment 6-F: Hydrochloric Acid
Comment 7: Discrepancy in Respondents' Preliminary Weighted-Average 
Dumping Margins

    Fufeng-Specific Issues:

Comment 8: Cornstarch Intermediate Input
Comment 9: FOP Allocation Methodology and Steam By-Product Offset
Comment 10: Packing FOP for Raw Xanthan Gum
Comment 11: Fufeng Surrogate Values
    Comment 11-A: Corn
    Comment 11-B: Decoking Agent
    Comment 11-C: Caustic Soda
Comment 12: Fufeng By-Products
    Comment 12-A: Corn Protein Powder
    Comment 12-B: Corn Embryo
    Comment 12-C: Corn Rejects, Coal Ash, and Clinker
    Comment 12-D: Soybean Dregs
    Deosen-Specific Issues:
Comment 13: Energy Intermediate Input
Comment 14: Compressed Air
Comment 15: Deosen Ordos Water Consumption
Comment 16: Deosen Surrogate Values
    Comment 16-A: Cornstarch
    Comment 16-B: Soy Powder
    Comment 16-C: Metal Buckle
    Comment 16-D: Coal
Comment 17: Power Plant By-Products
Comment 18: U.S. Expenses
Comment 19: U.S. Indirect Selling Expenses
Comment 20: Ministerial and Other Claimed Errors

[FR Doc. 2013-13220 Filed 6-3-13; 8:45 am]
BILLING CODE 3510-DS-P