[Federal Register Volume 82, Number 35 (Thursday, February 23, 2017)]
[Notices]
[Pages 11428-11431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03505]


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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; 2013-2014

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

SUMMARY: The Department of Commerce (``the Department'') is conducting 
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. (aka 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 19, 2013, through June 30, 2014. The Department published its 
Preliminary Results on August 7, 2015 and issued post-preliminary 
results on August 5, 2016. We gave interested parties an opportunity to 
comment on the Preliminary Results and post-preliminary results, and 
based upon our analysis of the comments received, we made certain 
changes to the dumping margin calculations for these final results of 
review.

[[Page 11429]]


DATES: Effective February 23, 2017.

FOR FURTHER INFORMATION CONTACT: Krisha Hill, 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) 482-4037.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published its Preliminary Results on August 7, 
2015.\1\ On September 28, 2015, Fufeng and CP Kelco U.S., Inc. 
(``Petitioner'') requested a hearing. On October 22, 2015, both parties 
withdrew their hearing requests. Between October 6-15, 2015, 
Petitioner, Fufeng, and Deosen submitted case briefs and rebuttal 
briefs.\2\ On February 9, 2016, the Department deferred the final 
results of this administrative review in order to address allegations 
made during the review relating to contradictory statements on the 
record and to protect the integrity of its administrative 
proceedings.\3\ Between March 21 and April 29, 2016, Deosen and AHA 
submitted supplemental questionnaire responses.\4\ The Department 
issued its Post-Preliminary Results on August 5, 2016.\5\ Between 
September 14-26, 2016, Petitioner, Shanghai Smart Chemicals Co., Ltd. 
(``Shanghai Smart''), Deosen, and AHA, submitted supplemental case 
briefs, and Petitioner and Archer Daniels Midland Company submitted 
supplemental rebuttal briefs.\6\
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    \1\ See Xanthan Gum from the People's Republic of China: 
Preliminary Results of Antidumping Duty Administrative Review and 
Preliminary Determination of No Shipments; 2013-2014, 80 FR 47464 
(August 7, 2015) (``Preliminary Results''), and accompanying 
Preliminary Decision Memorandum.
    \2\ See Letter from Petitioner, ``Xanthan Gum from the People's 
Republic of China: CP Kelco's Case Brief,'' dated October 6, 2015 
(``Petitioner Case Brief''); Letter from Fufeng, ``Fufeng Direct 
Case Brief in the First Administrative Review of Antidumping Duty 
Order on Xanthan Gum from the People's Republic of China (A-570-
985),'' dated October 6, 2015 (``Fufeng Case Brief''); Letter from 
Deosen, ``Xanthan Gum for the People's Republic of China: Case Brief 
of Deosen Biochemical Ltd.,'' dated October 6, 2015 (``Deosen Case 
Brief''). See also Letter from Petitioner, ``Xanthan Gum from the 
People's Republic of China: CP Kelco's Rebuttal Brief,'' dated 
October 15, 2015 (``Petitioner Rebuttal Brief''); Letter from 
Fufeng, ``Fufeng Rebuttal Brief in the First Administrative Review 
of Antidumping Duty Order on Xanthan Gum from the People's Republic 
of China (A-570-985),'' dated October 15, 2015 (``Fufeng Rebuttal 
Brief''); Letter from Deosen, ``Xanthan Gum from China; Rebuttal 
Brief of Deosen Biochemical Ltd. and Deosen USA Inc.,'' dated 
October 15, 2015 (``Deosen Rebuttal Brief'').
    \3\ See Memorandum to Paul Piquado, Assistant Secretary for 
Enforcement & Compliance, ``Xanthan Gum from the People's Republic 
of China: Deferral of the Final Results of the First Antidumping 
Duty Administrative Review,'' dated February 9, 2016.
    \4\ See Submission from Deosen and AHA, ``Xanthan Gum from 
China: Response to Supplemental Questionnaire,'' dated March 21, 
2016; see also Submission from Deosen and AHA, ``Xanthan Gum from 
China: Response to Second Deferral Supplemental Questionnaire,'' 
dated April 29, 2016.
    \5\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Post-Preliminary Results Memorandum: Application of Adverse Facts 
Available to Deosen Biochemical Ltd./Deosen Biochemical (Ordos) Ltd. 
and A.H.A. International Co., Ltd.,'' dated August 5, 2016 (``Post-
Preliminary Results'').
    \6\ See Letter from Petitioner to the Department, regarding 
``Xanthan Gum from the People's Republic of China: CP Kelco U.S., 
Inc.'s Supplemental Case Brief,'' dated September 14, 2016; see also 
Letter from Shanghai Smart to the Department, regarding ``Xanthan 
Gum from the People's Republic of China; Shanghai Smart Comments on 
the Calculation of the Separate Company Rates in the Post-
Preliminary Results of the 1st Review and the Preliminary Results of 
the 2nd Administrative Review,'' dated September 14, 2016, see also 
Letter from Deosen and AHA to the Department, regarding ``Xanthan 
Gum from China: Supplemental Case Brief,'' dated September 15, 2016; 
see also Letter from Petitioner to the Department, regarding 
``Xanthan Gum from the People's Republic of China: CP Kelco U.S., 
Inc.'s Supplemental Rebuttal Brief,'' dated September 26, 2016; see 
also Letter from ADM to the Department, regarding, ``Xanthan Gum 
From The People's Republic of China--Re: Supplemental Rebuttal 
Brief,'' dated September 26, 2016.
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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.\7\ Although this tariff classification is provided for 
convenience and customs purposes, the written description remains 
dispositive.
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    \7\ 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 First 
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 and 
supplemental case and supplemental 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 and Post-
Preliminary Results, and for the reasons explained in the Issues and 
Decision Memorandum, we revised our preliminary calculations of 
Fufeng's weighted-average dumping margin, we revised the dumping margin 
assigned to Deosen and AHA, and we revised the dumping margin assigned 
to the non-individually examined companies that demonstrated their 
eligibility for a separate rate. Specifically, we: (1) Revised the 
surrogate value for labor; (2) revised the surrogate value for 
electricity; (3) revised the calculation of surrogate financial ratios; 
(4) adjusted Fufeng's free-on-board U.S. sales prices for value-added 
taxes; (5) recalculated Fufeng's electricity-generating factors of 
production allocated to finished xanthan gum; (6) recalculated the 
surrogate value for hydrochloric acid; (7) based the dumping margin for 
Deosen and AHA or total adverse facts available (``AFA''); (8) 
calculated the rate applicable to non-individually-examined respondents 
that are being granted separate rate status as the simple average of 
the dumping margins determined for mandatory respondents Fufeng, 
Deosen, and AHA, consistent with section 735(c)(5)(B) of the Tariff Act 
of 1930, as amended (the ``Act''); and (9) denied Shanghai Smart 
separate rates status.\8\
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    \8\ See Issues and Decision Memorandum.
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Adverse Facts Available

    In the Post-Preliminary Results, the Department applied total 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

[[Page 11430]]

comply with requests for information.\9\ As discussed in the Issues and 
Decision Memorandum, we continue to assign Deosen and AHA a rate based 
on total AFA for these final results of review.\10\
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    \9\ See Post-Preliminary Results Memorandum.
    \10\ See Issues and Decision Memorandum at Comment 1.
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Separate Rates

    In the Preliminary Results, the Department found that Fufeng, 
Deosen, 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.\11\ 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 to: (1) Continue to grant 
Fufeng, Deosen, and CP Kelco (Shandong) separate rates status; (2) also 
grant AHA separate rates status; and (3) deny Hebei Xinhe and Shanghai 
Smart separate rates status in these final results of review. For 
further details, see the Issues and Decision Memorandum.\12\
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    \11\ See Preliminary Results, 80 FR at 47464-47465.
    \12\ See Issues and Decision Memorandum at Comments 2 and 3.
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Dumping Margin for Non-Individually Examined Respondents Granted 
Separate Rate Status

    Neither the Act, nor the Department's regulations address 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 
antidumping 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.
    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.\13\
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    \13\ See Issues and Decision Memorandum at Comment 4; see also 
Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, 
From the People's Republic of China: Preliminary Results, Partial 
Rescission of Antidumping Duty Administrative Review, and 
Preliminary Rescission of New Shipper Review; 2014-2015, 81 FR 45455 
(July 14, 2016) and accompanying PDM at 9, unchanged in Tapered 
Roller Bearings and Parts Thereof, Finished and Unfinished, From the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review, and Rescission of New Shipper Review; 2014-
2015, 82 FR 4844 (January 17, 2017).
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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 margin
                                                         (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
------------------------------------------------------------------------

Disclosure

    The Department will disclose the calculations performed for these 
final results of review within five days of the date of publication of 
this notice, in accordance with 19 CFR 351.224(b).

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, and CP Kelco (Shandong) 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.\14\
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    \14\ 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).

Cash Deposit Requirements

    Except as noted below, 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

[[Page 11431]]

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.
    However, if the final results of the antidumping duty 
administrative review of xanthan gum from the PRC covering the period 
July 1, 2014, through June 30, 2015 publish on or before the date of 
publication of the final results of the instant review,\15\ then the 
cash deposit rates will be those rates established in the final results 
of the antidumping duty administrative review of xanthan gum from the 
PRC covering the period July 1, 2014, through June 30, 2015. The cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.
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    \15\ As noted above, on February 9, 2016, the Department 
deferred the final results of the instant administrative review.
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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 Deosen and AHA
    Comment 3: Separate Rate Status of Shanghai Smart Chemicals Co., 
Ltd.
    Comment 4: Separate Rate Margin Calculation
    Comment 5: Differential Pricing
    A. Authority To Conduct Differential Pricing Analysis in 
Administrative Reviews
    B. Use of Zeroing in Average-to-Transaction (``A-T'') 
Comparisons in Administrative Reviews
    Comment 6: Surrogate Value for Labor
    Comment 7: Surrogate Value for Domestic Truck Freight
    Comment 8: Surrogate Value for Corn Consumed at Fufeng's 
Neimenggu Fufeng Facility
    Comment 9: Surrogate Value for Coal Consumed at Fufeng's 
Neimenggu Fufeng and Xinjiang Fufeng Facilities
    Comment 10: Surrogate Value for Electricity
    Comment 11: Surrogate Value for Caustic Soda
    Comment 12: Surrogate Value Adjustment for Sodium Hypochlorite
    Comment 13: GTA POR Data
    Comment 14: Employee Retirement Expenses in Thai Churos Co., 
Ltd.'s Financial Statements
    Comment 15: Fufeng's Value Added Tax Calculation
    Comment 16: Fufeng's Energy Allocations
    Comment 17: Movement Expense for Fufeng's Raw Xanthan Gum
    Comment 18: Valuation of Deosen's Compressed Air
    Comment 19: Valuation of Deosen's U.S. Inland Truck Freight
    Comment 20: Alleged Calculation Errors for Deosen
    A. Marine Insurance
    B. AHA's Sales Premium
    C. Inland Freight
    D. Coal Consumption
Recommendation

[FR Doc. 2017-03505 Filed 2-22-17; 8:45 am]
 BILLING CODE 3510-DS-P