[Federal Register Volume 82, Number 35 (Thursday, February 23, 2017)]
[Notices]
[Pages 11434-11437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03504]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-985]


Xanthan Gum From the People's Republic of China: Final Results of 
Antidumping Duty Administrative Review, Final Determination of No 
Shipments, Final Partial Rescission; 2014-2015

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

SUMMARY: The Department of Commerce (``the Department'') has conducted 
an administrative review of the antidumping duty order on xanthan gum 
from the People's Republic of China (``PRC''). For these final results, 
we have treated Neimenggu Fufeng Biotechnologies Co., Ltd. (a.k.a. 
Inner Mongolia Fufeng Biotechnologies Co., Ltd.)/Shandong Fufeng 
Fermentation Co., Ltd./Xinjiang Fufeng Biotechnologies Co., Ltd. 
(collectively, ``Fufeng''), Deosen Biochemical Ltd./Deosen Biochemical 
(Ordos) Ltd. (collectively, ``Deosen''), and A.H.A. International Co., 
Ltd. (``AHA'') as mandatory respondents. The period of review (``POR'') 
is July 01, 2014, through June 30, 2015. The Department published its 
Preliminary Results of review on August 15, 2016. We gave interested 
parties an opportunity to comment on the Preliminary Results, and based 
upon our analysis of the comments received, we have not made any 
changes to the dumping margin calculations for these final results of 
review.

DATES: Effective February 23, 2017.

FOR FURTHER INFORMATION CONTACT: Patrick O'Connor, AD/CVD Operations, 
Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-0989.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published its Preliminary Results on August 15, 
2016.\1\ On September 14, 2016, Inner Mongolia Jianlong Biochemical 
Co., Ltd. (``IMJ''), CP Kelco U.S., Inc. (``Petitioner''), and Deosen 
Biochemical (Ordos) Ltd., Deosen Biochemical Ltd. (collectively 
``Deosen'') and A.H.A. International Co., Ltd. (``AHA'') (collectively, 
``Deosen/AHA'') requested a hearing. Between September 14, 2016, and 
November 21, 2016, Archer Daniels Midland Company (``ADM''), Shanghai 
Smart Chemicals Co., Ltd. (``Shanghai Smart''), Neimenggu Fufeng 
Biotechnologies Co., Ltd. (aka Inner Mongolia Fufeng Biotechnologies 
Co., Ltd.)/Shandong Fufeng Fermentation Co., Ltd./Xinjiang Fufeng 
Biotechnologies Co., Ltd. (``Fufeng''), Deosen/AHA, IMJ, and Petitioner 
submitted case briefs and rebuttal briefs.\2\ On December 14, 2016, the

[[Page 11435]]

Department held a hearing for interested parties. On December 8, 2016, 
January 10, 2017, and January 25, 2017, the Department extended the 
deadline for issuing the final results of this administrative 
review.\3\
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    \1\ See Xanthan Gum From the People's Republic of China: 
Preliminary Results of Antidumping Duty Administrative Review, 
Preliminary Determination of No Shipments, and Preliminary Partial 
Rescission of Antidumping Duty Administrative Review; 2014-2015, 81 
FR 54045 (August 15, 2016) (``Preliminary Results''), and 
accompanying Preliminary Decision Memorandum.
    \2\ Deosen/AHA submitted its case brief on September 14, 2016; 
however, because of filing deficiencies, Deosen/AHA refiled its case 
brief on November 21, 2016. See also Memorandum to the File, Re: 
``Xanthan Gum from the People's Republic of China: Telephone Call to 
Alston & Bird LLP, Counsel for Deosen Biochemical Ltd. and A.H.A 
International Co., Ltd.,'' dated November 14, 2016.
    \3\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for AD/CVD Operations, ``2014-2015 Antidumping Duty 
Administrative Review of Xanthan Gum from the People's Republic of 
China: Extension of Deadline for Final Results of Antidumping Duty 
Administrative Review,'' dated December 8, 2016; see also Memorandum 
to Gary Taverman, Associate Deputy Assistant Secretary for AD/CVD 
Operations, ``2014-2015 Antidumping Duty Administrative Review of 
Xanthan Gum from the People's Republic of China: Extension of 
Deadline for Final Results of Antidumping Duty Administrative 
Review,'' dated January 10, 2017; see also Memorandum to Gary 
Taverman, Associate Deputy Assistant Secretary for AD/CVD 
Operations, ``2014-2015 Antidumping Duty Administrative Review of 
Xanthan Gum from the People's Republic of China: Extension of 
Deadline for Final Results of Antidumping Duty Administrative 
Review,'' dated January 25, 2017.
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Scope of the Order

    The scope of the order covers dry xanthan gum, whether or not 
coated or blended with other products. Further, xanthan gum is included 
in this order regardless of physical form, including, but not limited 
to, solutions, slurries, dry powders of any particle size, or unground 
fiber. Merchandise covered by the scope of this order is classified in 
the Harmonized Tariff Schedule of the United States at subheading 
3913.90.20.\4\ Although this tariff classification is provided for 
convenience and customs purposes, the written description remains 
dispositive.
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    \4\ For the full text of the scope of the order, see Memorandum 
to Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement 
and Compliance, ``Xanthan Gum from the People's Republic of China: 
Issues and Decision Memorandum for the Final Results of the Second 
Antidumping Duty Administrative Review,'' (``Issues and Decision 
Memorandum''), dated concurrently with this notice.
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Analysis of Comments Received

    We addressed all issues raised in the case and rebuttal briefs 
submitted by parties in this review in the Issues and Decision 
Memorandum, which is hereby adopted by this notice. Appendix I to this 
notice provides a list of the issues which parties raised. The Issues 
and 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 http://access.trade.gov and 
it is available to all parties in the Central Records Unit of the main 
Department of Commerce building, Room B8024. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
on the Internet at http://enforcement.trade.gov/frn/. The signed Issues 
and Decision Memorandum and the electronic version are identical in 
content.

Changes Since the Preliminary Results

    Based on a review of the record and comments received from 
interested parties regarding our Preliminary Results, we have made no 
changes since the preliminary results.

Adverse Facts Available

    In the Preliminary Results, the Department applied total adverse 
facts available (``AFA'') to Deosen and AHA and assigned these 
companies a rate of 154.07 percent, the highest rate on the record of 
the proceeding. The Department determined that these companies 
significantly impeded the proceeding, withheld information requested by 
the Department, and failed to cooperate by not acting to the best of 
their ability to comply with requests for information.\5\ As discussed 
in the Issues and Decision Memorandum, we continue to apply a dumping 
margin based on AFA to Deosen and AHA for these final results of 
review.\6\
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    \5\ See PDM at 7-9.
    \6\ See Issues and Decision Memorandum at Comment 1.
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Separate Rates

    In the Preliminary Results, the Department found that Fufeng, 
Deosen, AHA, CP Kelco (Shandong) Biological Company Limited (``CP Kelco 
(Shandong)'') and Shanghai Smart, demonstrated their eligibility for a 
separate rate but that the non-individually examined respondent Hebei 
Xinhe Biochemical Co. Ltd., (``Hebei Xinhe'') did not demonstrate its 
eligibility for a separate rate because it failed to file a separate 
rate application or a separate rate certification.\7\ Thus, the 
Department treated Hebei Xinhe as part of the PRC-wide entity. We have 
considered interested parties' comments regarding our preliminary 
separate rates determination, and decided not to change the preliminary 
determination in these final results of review. We have considered 
interested parties' comments regarding our preliminary separate rates 
determination, and decided to: (1) Continue to grant Fufeng, Deosen, 
AHA, CP Kelco (Shandong), and Shanghai Smart separate rates status; and 
(2) continue to not grant IMJ separate rate status because it had no 
reviewable sales for these final results of review. For further 
details, see the Issues and Decision Memorandum.\8\
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    \7\ See Preliminary Results, 81 FR at 54046.
    \8\ See Issues and Decision Memorandum at Comments 2 and 5.
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Final Determination of No Shipments

    In the Preliminary Results, the Department found that Meihua Group 
International Trading (Hong Kong) Limited, Langfang Meihua Bio-
Technology Co., Ltd., and Xinjiang Meihua Amino Acid Co., Ltd. had no 
shipments and, therefore, no reviewable transactions during the POR.\9\ 
No parties commented on this determination. For the final results of 
review, we continue to find that these companies had no shipments 
during the POR.
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    \9\ See Preliminary Results at 8 FR 54045.
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Final Partial Rescission of Antidumping Duty Administrative Review

    Because IMJ's one sale during the POR is the same sale found to be 
a non-bona fide sale in a new shipper review, and there are no other 
reviewable sales by IMJ during the POR, we have rescinded this review 
with respect to IMJ.\10\ For additional information regarding this 
determination, see the Issues and Decision Memorandum.\11\
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    \10\ See Preliminary Results at 8 FR 54045 54046.
    \11\ See Issues and Decision Memorandum at Comment 4.
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Dumping Margin for Non-Individually Examined Respondents Granted 
Separate Rate Status

    Neither the Act, nor the Department's regulations, addresses the 
establishment of the dumping margin applied to separate rate companies 
not selected for individual examination where the Department limits its 
individual examination in an administrative review pursuant to section 
777A(c)(2) of the Act. The Department's practice in administrative 
reviews involving limited selection based on exporters accounting for 
the largest volume of subject merchandise during the period of review 
has been to look to section 735(c)(5) of the Act for guidance, which 
provides instructions for calculating the all-others rate in an 
investigation. Under section 735(c)(5)(A) of the Act, the Department 
avoids calculating an all-others rate using rates that are zero, de 
minimis, or based entirely on facts available in investigations. 
Section 735(c)(5)(B) of the Act provides that, where all dumping 
margins established for the mandatory respondents are zero, de minimis, 
or based entirely on facts available, the Department may use ``any 
reasonable method'' for assigning an all-others rate.

[[Page 11436]]

    In these final results of review, the dumping margins determined 
for the mandatory respondents are either zero, de minimis, or based 
entirely on AFA. Therefore, in accordance with section 735(c)(5)(B) of 
the Act, we have applied to the non-individually examined companies 
eligible for a separate rate a dumping margin equal to the simple 
average of the zero and AFA rates determined for the mandatory 
respondents.\12\
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    \12\ See Issues and Decision Memorandum at Comment 3.
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Final Results of Administrative Review

    We determine that the following weighted-average dumping margins 
exist for the POR:

------------------------------------------------------------------------
                                                       Weighted-average
                      Exporter                          dumping margins
                                                         (percentage)
------------------------------------------------------------------------
Neimenggu Fufeng Biotechnologies Co., Ltd. (aka                     0.00
 Inner Mongolia Fufeng Biotechnologies Co., Ltd.)/
 Shandong Fufeng Fermentation Co., Ltd./Xinjiang
 Fufeng Biotechnologies Co., Ltd....................
Deosen Biochemical Ltd./Deosen Biochemical (Ordos)                154.07
 Ltd................................................
A.H.A. International Co., Ltd.......................              154.07
CP Kelco (Shandong) Biological Company Limited......               77.04
Shanghai Smart Chemicals Co., Ltd...................               77.04
------------------------------------------------------------------------

Assessment Rates

    Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b), 
the Department has determined, and U.S. Customs and Border Protection 
(``CBP'') shall assess, antidumping duties on all appropriate entries 
of subject merchandise in accordance with the final results of this 
review. The Department intends to issue assessment instructions to CBP 
15 days after the publication date of the final results of this review. 
We intend to instruct CBP to liquidate POR entries of subject 
merchandise from Deosen, AHA, CP Kelco (Shandong), and Shanghai Smart 
at the rates listed for those companies in the table above. Where the 
respondent's weighted-average dumping margin is zero or de minimis, or 
where an importer- (or customer-) specific ad valorem or per-unit rate 
is zero or de minimis, the Department will instruct CBP to liquidate 
appropriate entries without regard to antidumping duties.\13\
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    \13\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101, 8103 (February 14, 
2012).
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    For entries that were not reported in the U.S. sales database 
submitted by an exporter individually examined during this review, but 
that entered under the case number of that exporter (i.e., at the 
individually-examined exporter's cash deposit rate), the Department 
will instruct CBP to liquidate such entries at the PRC-wide rate (i.e., 
154.07 percent). Additionally, if the Department determines that an 
exporter under review had no shipments of the subject merchandise, any 
suspended entries that entered under that exporter's case number will 
be liquidated at the PRC-wide rate.

Cash Deposit Requirements

    The following cash deposit requirements will be effective for 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of review, as provided for by section 751(a)(2)(C) of the 
Act: (1) For the exporters listed in the table above, the cash deposit 
rate will be the rate established in the final results of review that 
is listed for the exporter in the table; (2) for previously 
investigated or reviewed PRC and non-PRC exporters not listed in the 
table above that have separate rates, the cash deposit rate will 
continue to be the existing exporter-specific rate published for the 
most recent period; (3) for all PRC exporters of subject merchandise 
that have not been found to be entitled to a separate rate, the cash 
deposit rate will be the rate previously established for the PRC-wide 
entity, which is 154.07 percent; and (4) for all non-PRC exporters of 
subject merchandise which have not received their own rate, the cash 
deposit rate will be the rate applicable to the PRC exporter that 
supplied that non-PRC exporter. The cash deposit requirements, when 
imposed, shall remain in effect until further notice.

Notification to Importers Regarding the Reimbursement of Duties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during this POR. Failure to comply with this 
requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification Regarding Administrative Protective Order (``APO'')

    This notice also serves as a reminder to parties subject to APO of 
their responsibility concerning the return or destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305, which continues to govern business proprietary information in 
this segment of the proceeding. Timely written notification of the 
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 violation which is subject to 
sanction.
    We are issuing these final results of administrative review and 
publishing this notice in accordance with sections 751(a)(1) and 777(i) 
of the Act.

    Dated: February 13, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix--Issues and Decision Memorandum

Summary
Background
Scope of the Order
Discussion of the Issues
    Comment 1: Application of Adverse Facts Available for Deosen and 
AHA
    Comment 2: Separate Rate Status of AHA
    Comment 3: Separate Rate Margin Calculation
    Comment 4: Separate Rate Status of IMJ
    Comment 5: Separate Rate Status of Shanghai Smart
    Comment 6: Adjustment of the Sodium Hypochlorite Surrogate Value
    Comment 7: Surrogate Value for Ocean Freight
    Comment 8: Surrogate Value for Electricity
    Comment 9: New Factual Information in Deosen/AHA's Case Brief

[[Page 11437]]

Recommendation

[FR Doc. 2017-03504 Filed 2-22-17; 8:45 am]
 BILLING CODE 3510-DS-P