[Federal Register Volume 79, Number 47 (Tuesday, March 11, 2014)]
[Notices]
[Pages 13615-13617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-05241]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-993]


Monosodium Glutamate From the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination; and 
Preliminary Affirmative Determination of Critical Circumstances

AGENCY: Enforcement and Compliance, formerly Import Administration, 
International Trade Administration, Department of Commerce.

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of monosodium glutamate (MSG) from the People's 
Republic of China (PRC). The Department also preliminarily determines 
that critical circumstances exist for imports of MSG from the PRC. The 
period of investigation is January 1, 2012, through December 31, 2012. 
The final determination will be issued 75 days after the date of this 
preliminary determination.\1\ Interested parties are invited to comment 
on this preliminary determination.
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    \1\ Due to the closure of the Federal Government in Washington, 
DC on March 3, 2014, the Department reached this determination on 
the next business day (i.e., March 4, 2014). 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).

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DATES: Effective Date: March 11, 2014.

FOR FURTHER INFORMATION CONTACT: Jun Jack Zhao or Justin Neuman, Office 
VII, AD/CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
1396 and (202) 482-0486, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The product covered by this investigation is MSG, whether or not 
blended or in solution with other products. Specifically, MSG that has 
been blended or is in solution with other product(s) is included in 
this scope when the resulting mix contains 15 percent or more of MSG by 
dry weight.\2\
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    \2\ For a complete description of the scope of the 
investigation, see Appendix 1 to this notice.
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Methodology

    The Department is conducting this countervailing duty investigation 
in accordance with section 701 of the Tariff Act of 1930, as amended 
(the Act). For a full description of the methodology underlying our 
preliminary conclusions, see the Preliminary Decision Memorandum.\3\ 
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 (IA ACCESS). 
IA ACCESS is available to registered users at http://iaaccess.trade.gov, and is available to all parties in the Central 
Records Unit, room 7046 of the main Department of Commerce building. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly on the Internet at http://enforcement.trade.gov/frn/index.html. The signed Preliminary Decision Memorandum and the 
electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \3\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance 
regarding ``Decision Memorandum for the Preliminary Determination in 
the Countervailing Duty Investigation of Monosodium Glutamate from 
the People's Republic of China,'' dated concurrently with this 
notice (Preliminary Decision Memorandum). A list of topics discussed 
in the Preliminary Decision Memorandum can be found at Appendix 2 of 
this notice.
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Critical Circumstances

    In accordance with section 703(e)(1) of the Act, we preliminarily 
find that critical circumstances exist with respect to imports of MSG 
from the PRC. A discussion of our determination can be found in the 
Preliminary Decision Memorandum.

Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we determine 
separate subsidy rates for Langfang Meihua Bio-Technology Co., Ltd. and 
Tongliao Meihua Biological Sci-Tech Co., Ltd. (collectively, the Meihua

[[Page 13616]]

Group) \4\ and Henan Lotus Flower Gourmet Powder Co., Ltd. (Henan 
Lotus), the individually-investigated producers/exporters of the 
subject merchandise. We also calculated an all-others rate. In 
accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not individually investigated, we apply an ``all-others'' 
rate, which is normally calculated by weighting the subsidy rates of 
the individual companies selected as mandatory respondents by those 
companies' exports of the subject merchandise to the United States. 
Under section 705(c)(5)(A)(i) of the Act, the all-others rate should 
exclude zero and de minimis rates calculated for the exporters and 
producers individually investigated as well as rates based entirely on 
facts otherwise available. Where the rates for the investigated 
companies are all zero or de minimis, or based entirely on facts 
otherwise available, section 705(c)(5)(A)(ii) of the Act instructs the 
Department to establish an all-others rate using ``any reasonable 
method.'' For Henan Lotus, which did not participate in this 
investigation, we determine a rate based solely on adverse facts 
available (AFA), in accordance with sections 776(a) and (b) of the Act. 
Therefore, the only rate in this investigation that is not de minimis 
or based entirely on facts otherwise available is the rate calculated 
for the Meihua Group. Consequently, the rate calculated for the Meihua 
Group is also assigned as the ``all-others'' rate. The overall 
preliminary subsidy rates are summarized in the table below:
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    \4\ We find these companies to be cross-owned in accordance with 
19 CFR 351.525(b)(6)(vi). See the Preliminary Decision Memorandum.
    \5\ The Department applied AFA to this company; see the 
Preliminary Determination Memorandum at ``Use of Facts Otherwise 
Available and Adverse Inferences,'' for a full description of our 
methodology.

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                                                          Subsidy rate
                        Company                             (percent)
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Langfang Meihua Bio-Technology Co., Ltd. and Tongliao              13.41
 Meihua Biological Sci-Tech Co., Ltd. (collectively,
 the Meihua Group)....................................
Henan Lotus Flower Gourmet Powder Co., Ltd.\5\........            404.03
All Others............................................             13.41
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    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, we 
are directing U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of MSG from the PRC that are entered, or 
withdrawn from warehouse, for consumption on or after the date of the 
publication of this notice in the Federal Register, and to require a 
cash deposit for such entries of merchandise in the amounts indicated 
above. Moreover, because we preliminarily find critical circumstances 
exist with respect to all exporters, in accordance with section 
703(e)(2)(A) of the Act, we are directing CBP to apply the suspension 
of liquidation to any unliquidated entries entered, or withdrawn from 
warehouse for consumption, on or after the date 90 days prior to the 
date of publication of this notice in the Federal Register.

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondents prior to making our final 
determination.

Disclosure and Public Comment

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement.\6\ 
Interested parties may submit case and rebuttal briefs, as well as 
request a hearing.\7\ For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing requests, see the Preliminary 
Decision Memorandum.
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    \6\ See 19 CFR 351.224(b).
    \7\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (ITC) of our determination. In addition, 
we are making available to the ITC all non-privileged and non-
proprietary information relating to this investigation. We will allow 
the ITC access to all privileged and business proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under an administrative protective 
order, without the written consent of the Assistant Secretary for 
Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: March 4, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix 1

Scope of the Investigation

    The scope of this investigation covers monosodium glutamate 
(MSG), whether or not blended or in solution with other products. 
Specifically, MSG that has been blended or is in solution with other 
product(s) is included in this scope when the resulting mix contains 
15% or more of MSG by dry weight. Products with which MSG may be 
blended include, but are not limited to, salts, sugars, starches, 
maltodextrins, and various seasonings. Further, MSG is included in 
this investigation regardless of physical form (including, but not 
limited to, substrates, solutions, dry powders of any particle size, 
or unfinished forms such as MSG slurry), end-use application, or 
packaging.
    MSG has a molecular formula of 
C5H8NO4Na, a Chemical Abstract 
Service (CAS) registry number of 6106-04-3, and a Unique Ingredient 
Identifier (UNII) number of W81N5U6R6U.
    Merchandise covered by the scope of this investigation is 
currently classified in the Harmonized Tariff Schedule (HTS) of the 
United States at subheading 2922.42.10.00. Merchandise subject to 
this investigation may also enter under HTS subheadings 
2922.42.50.00, 2103.90.72.00, 2103.90.74.00, 2103.90.78.00, 
2103.90.80.00, and 2103.90.90.91. The tariff classifications, CAS 
registry number, and UNII number are provided for convenience and 
customs purposes; however, the written description of the scope is 
dispositive.



Appendix 2

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Respondent Selection
VI. Injury Test

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VII. Application of the Countervailing Duty Law to Imports from the 
PRC
VIII. Subsidies Valuation
IX. Benchmarks and Discount Rates
X. Use of Facts Otherwise Available and Adverse Inferences
XI. Critical Circumstances
XII. Analysis of Programs
XIII. ITC Notification
XIV. Disclosure and Public Comment
XV. Verification
XVI. Conclusion

[FR Doc. 2014-05241 Filed 3-10-14; 8:45 am]
BILLING CODE 3510-DS-P