[Federal Register Volume 82, Number 150 (Monday, August 7, 2017)]
[Notices]
[Pages 36746-36749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16574]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-985]


Xanthan Gum From the People's Republic of China: Preliminary 
Results of the Antidumping Duty Administrative Review and Preliminary 
Determination of No Shipments; 2015-2016

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). The period of review (POR) is 
July 1, 2015, through June 30, 2016. The review covers two mandatory 
respondents, Fufeng (which includes Neimenggu Fufeng Biotechnologies 
Co., Ltd. (a.k.a., Inner Mongolia Fufeng Biotechnologies Co., Ltd.), 
Xinjiang Fufeng Biotechnologies Co., Ltd., and Shandong Fufeng 
Fermentation Co., Ltd.) and Deosen (which includes Deosen Biochemical 
Ltd. and Deosen Biochemical (Ordos) Ltd.).
    We preliminarily determine that sales of subject merchandise by 
Deosen have been made at prices below normal value (NV), and that sales 
of subject merchandise by Fufeng have not. We also preliminarily grant 
separate rates to four exporter groupings listed in the ``Preliminary 
Results of Review'' section of this notice and included Hebei Xinhe 
Biochemical Co., Ltd. as part of the PRC-wide entity. Finally, we 
preliminarily find that A.H.A. International Co., Ltd. (AHA) made no 
shipments of subject merchandise during the POR. We invite interested 
parties to comment on these preliminary results.

DATES: Applicable August 7, 2017.

FOR FURTHER INFORMATION CONTACT: Brian Smith, Jesus Saenz, or Michael 
Bowen, AD/CVD Operations, Office VIII, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
1766, (202) 482-8184, and (202) 482-0768, respectively.

SUPPLEMENTARY INFORMATION: 

Scope of the Order

    The product covered by the order includes dry xanthan gum, whether 
or not coated or blended with other products. 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 the order is classified in the 
Harmonized Tariff Schedule 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. A full description of the scope of the order is contained 
in the Preliminary Decision Memorandum.\1\
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    \1\ For a complete description of the Scope of the Order, see 
``Decision Memorandum for the Preliminary Results of Antidumping 
Duty Administrative Review: Xanthan Gum from the People's Republic 
of China; 2015-2016,'' (Preliminary Decision Memorandum) from James 
P. Maeder, Jr., Senior Director performing the duties of Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Gary Taverman, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, performing the non-
exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, dated concurrently with, and hereby 
adopted by, this notice.
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Preliminary Determination of No Shipments

    On October 19, 2016, AHA submitted a timely filed certification 
that it had no exports, sales, or entries of subject merchandise during 
the POR.\2\ Based on an analysis of U.S. Customs and Border Protection 
(CBP) information and AHA's no shipment certification, the Department 
preliminarily determines that AHA had no shipments, and, therefore, no 
reviewable transactions,

[[Page 36747]]

during the POR. For additional information regarding this 
determination, see the Preliminary Decision Memorandum.
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    \2\ See letter from AHA, ``Xanthan Gum from the People's 
Republic of China Separate Rate Certification of AHA,'' dated 
October 19, 2016.
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    Consistent with our practice in non-market economy (NME) cases, the 
Department is not rescinding this administrative review with respect to 
AHA, for which it has preliminarily found no shipments during the POR, 
but intends to complete the review, and issue appropriate instructions 
to CBP based on the final results of the review.\3\
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    \3\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694, 65694-95 (October 24, 2011) (NME 
AD Assessment) and the ``Assessment Rates'' section, below.
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Methodology

    The Department is conducting this review in accordance with section 
751(a)(1)(B) of the Tariff Act of 1930, as amended (the Act). We 
calculated, where applicable, export price and constructed export price 
for the mandatory respondents, Deosen and Fufeng, in accordance with 
section 772 of the Act. Because the PRC is a NME within the meaning of 
section 771(18) of the Act, we calculated NV in accordance with section 
773(c) of the Act.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum, which is hereby 
adopted by this notice. 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 (ACCESS). ACCESS is available to registered users at https://access.trade.gov, and to all parties in the Central Records Unit, Room 
B8024 of the main Department of Commerce building. In addition, a 
complete version of the Preliminary Decision Memorandum can be accessed 
directly at http://enforcement.trade.gov/frn/. The signed Preliminary 
Decision Memorandum and the electronic version of the Preliminary 
Decision Memorandum are identical in content. A list of topics included 
in the Preliminary Decision Memorandum is provided as an appendix to 
this notice.

Verification

    As provided in sections 782(i)(3)(A) and (B) of the Act, we 
conducted verification of the information upon which we relied in 
determining the preliminary results of review with respect to the two 
mandatory respondents, Deosen and Fufeng.

Preliminary Results of Review

    Based on record evidence, the Department preliminarily continues to 
treat Deosen Biochemical Ltd. and Deosen Biochemical (Ordos) Ltd. as a 
single entity for AD purposes. Furthermore, based on record evidence, 
the Department preliminarily finds that Neimenggu Fufeng 
Biotechnologies Co., Ltd. (aka Inner Mongolia Fufeng Biotechnologies 
Co., Ltd.), Shandong Fufeng Fermentation Co. Ltd., and Xinjiang Fufeng 
Biotechnologies Co., Ltd. are affiliated and should be treated as a 
single entity for AD purposes. For additional information, see the 
Preliminary Decision Memorandum. The Department preliminarily finds 
that one company, Hebei Xinhe Biochemical Co., Ltd., for which a review 
was requested, did not establish eligibility for a separate rate 
because it failed to provide a separate rate certification. As such, we 
preliminarily find that this company is part of the PRC-wide entity.\4\
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    \4\ Because no interested party requested a review of the PRC-
wide entity and the Department no longer considers the PRC-wide 
entity as an exporter conditionally subject to administrative 
reviews, we did not conduct a review of the PRC-wide entity. Thus, 
the rate for the PRC-wide entity is not subject to change as a 
result of this review and remains at 154.07 percent. See Antidumping 
Proceedings: Announcement of Change in Department Practice for 
Respondent Selection in Antidumping Duty Proceedings and Conditional 
Review of the Nonmarket Economy Entity in NME Antidumping Duty 
Proceedings, 78 FR 65963, 65969-70 (November 4, 2013).
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    In addition to the mandatory respondents, we preliminarily 
determine that CP Kelco (Shandong) Biological Company Limited, Jianlong 
Biotechnology Co., Ltd. (a.k.a. Inner Mongolia Jianlong Biochemical 
Co., Ltd.), Meihua Group International Trading (Hong Kong) Limited/
Xinjiang Meihua Amino Acid Co., Ltd./Langfang Meihua Bio-Technology 
Co., Ltd. (``collectively'' Meihua), and Shanghai Smart Chemicals Co., 
Ltd., also demonstrated their eligibility for a separate rate in this 
administrative review. Consistent with the Department's practice, we 
preliminarily assigned these companies a rate equal to the weighted-
average dumping margin assigned to Deosen in this review. We 
preliminarily determine that Deosen did not cooperate to the best of 
its ability in this administrative review with regards to a portion of 
its sales to AHA, and as a result, we have based its dumping margin for 
those sales on adverse facts available for these preliminary 
results.\5\ For companies subject to this review that have established 
their eligibility for a separate rate, the Department preliminarily 
determines that the following weighted-average dumping margins exist 
for the period July 1, 2015, through June 30, 2016:
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    \5\ See Preliminary Decision Memorandum.
    \6\ See Stainless Steel Bar From India: Final Results of the 
Antidumping Duty Administrative Review, 77 FR 39467 (July 3, 2012) 
and accompanying Issues and Decision Memorandum at 12.

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                        Exporters                         dumping margin
                                                             (percent)
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Deosen Biochemical Ltd./Deosen Biochemical (Ordos) Ltd..            9.30
Neimenggu Fufeng Biotechnologies Co., Ltd. (aka Inner               0.00
 Mongolia Fufeng Biotechnologies Co., Ltd.)/Shandong
 Fufeng Fermentation Co., Ltd./Xinjiang Fufeng
 Biotechnologies Co., Ltd...............................
CP Kelco (Shandong) Biological Company Limited *........            9.30
Jianlong Biotechnology Co., Ltd. (aka Inner Mongolia                9.30
 Jianlong Biochemical Co., Ltd.) *......................
Meihua Group International Trading (Hong Kong) Limited/             9.30
 Langfang Meihua Bio-Technology Co., Ltd./Xinjiang
 Meihua Amino Acid Co., Ltd *...........................
Shanghai Smart Chemicals Co., Ltd. (Shanghai Smart) *...            9.30
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* This company demonstrated that it qualified for a separate rate in
  this administrative review. Consistent with the Department's practice,
  we preliminarily assigned this company a weighted-average dumping
  margin of 9.30 percent--the rate calculated for the mandatory
  respondent Deosen in this review.\6\ See the Preliminary Decision
  Memorandum.


[[Page 36748]]

Disclosure

    The Department intends to disclose to the parties the calculations 
performed for these preliminary results within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). 
Interested parties may submit case briefs no later than 30 days after 
the date of publication of these preliminary results of review.\7\ 
Rebuttals to case briefs may be filed no later than five days after the 
written comments are filed, and all rebuttal comments must be limited 
to comments raised in the case briefs.\8\
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    \7\ See 19 CFR 351.309(c).
    \8\ See 19 CFR 351.309(d).
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Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than 30 
days after the publication of these preliminary results, unless the 
Secretary alters the time limit. Rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than five days after 
the deadline date for case briefs.\9\ Pursuant to 19 CFR 351.309(c)(2) 
and (d)(2), parties who submit case briefs or rebuttal briefs in this 
review are encouraged to submit with each argument: (1) A statement of 
the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, the 
Department intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.
    Unless otherwise extended, the Department intends to issue the 
final results of this administrative review, which will include the 
results of our analysis of the issues raised in the case briefs, within 
120 days of publication of these preliminary results in the Federal 
Register, pursuant to section 751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and CBP shall assess, antidumping duties on all appropriate entries 
covered by this review.\10\ The Department intends to issue appropriate 
assessment instructions to CBP 15 days after the publication of the 
final results of this review.
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    \10\ See 19 CFR 351.212(b)(1).
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    For each individually-examined respondent in this review, if we 
continue to calculate a weighted-average dumping margin that is not 
zero or de minimis (i.e., less than 0.5 percent) in the final results, 
we will calculate importer-specific assessment rates based on the ratio 
of the total amount of dumping calculated for the importer's examined 
sales and the total entered value of those sales, in accordance with 19 
CFR 351.212(b)(1).\11\ We will instruct CBP to assess antidumping 
duties on all appropriate entries covered by this review when the 
importer-specific ad valorem assessment rate calculated in the final 
results of this review is not zero or de minimis. Where either the 
respondent's ad valorem weighted-average dumping margin is zero or de 
minimis, or an importer-specific ad valorem assessment rate is zero or 
de minimis,\12\ we will instruct CBP to liquidate the appropriate 
entries without regard to antidumping duties.
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    \11\ In these preliminary results, the Department applied the 
assessment rate calculation method adopted in Antidumping 
Proceedings: Calculation of the Weighted-Average Dumping Margin and 
Assessment Rate in Certain Antidumping Proceedings: Final 
Modification, 77 FR 8101 (February 14, 2012).
    \12\ See 19 CFR 351.106(c)(2).
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    For the respondents that were not selected for individual 
examination in this administrative review but qualified for a separate 
rate, the assessment rate will be equal to the weighted-average dumping 
margin assigned to Deosen in the final results of this review.\13\
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    \13\ See Drawn Stainless Steel Sinks from the People's Republic 
of China: Preliminary Results of the Antidumping Duty Administrative 
Review and Preliminary Determination of No Shipments: 2014-2015, 81 
FR 29528 (May 12, 2016) and accompanying Decision Memorandum at 10-
11; unchanged in Drawn Stainless Steel Sinks from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review; Final Determination of No Shipments; 2014-2015, 81 FR 54042 
(August 15, 2016).
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    For entries that were not reported in the U.S. sales databases 
submitted by the companies individually examined during this review, 
the Department will instruct CBP to liquidate such entries at the PRC-
wide rate. In addition, if we continue to find that AHA had no 
shipments of the subject merchandise, any suspended entries of subject 
merchandise from AHA will be liquidated at the PRC-wide rate.\14\
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    \14\ For a full discussion of this practice, see NME AD 
Assessment.
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Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise from the PRC entered, or withdrawn 
from warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(2)(C) of the Act: (1) For the companies 
listed above that have a separate rate, the cash deposit rate will be 
that rate established in the final results of this review (except, if 
the rate is zero or de minimis, then a cash deposit rate of zero will 
be required); (2) for previously investigated or reviewed PRC and non-
PRC exporters not listed above that received a separate rate in a prior 
segment of this proceeding, the cash deposit rate will continue to be 
the existing exporter-specific rate; (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 for the PRC-wide 
entity, which is 154.07 percent; and (4) for all non-PRC exporters of 
subject merchandise that have not received their own rate, the cash 
deposit rate will be the rate applicable to the PRC exporter(s) that 
supplied that non-PRC exporter. These deposit requirements, when 
imposed, shall remain in effect until further notice.

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) to file a certificate 
regarding the reimbursement of antidumping and/or countervailing duties 
prior to liquidation of the relevant entries during this review period. 
Failure to comply with this requirement could result in the Secretary's 
presumption that reimbursement of antidumping and/or countervailing 
duties occurred and the subsequent assessment of double antidumping 
duties.
    We are issuing and publishing these preliminary results of review 
in accordance with sections 751(a)(l) and 777(i)(l) of the Act and 19 
CFR 351.213.


[[Page 36749]]


     Dated: July 31, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum


I. Summary
II. Background
III. Period of Review
IV. Scope of the Order
V. Selection of Respondents
VI. Preliminary Determination of No Shipments
VII. Application of Partial Adverse Facts Available and Selection of 
Adverse Facts Available Rate
VIII. Single Entity Treatment
IX. Discussion of the Methodology
    A. Non-Market Economy Country Status
    B. Separate Rates Determination
    1. Absence of De Jure Control
    2. Absence of De Facto Control
    C. Weighted-Average Dumping Margin for Non-Examined Separate-
Rate Companies
    D. Surrogate Country and Surrogate Value Data
    1. Surrogate Country Selection
    2. Economic Comparability
    3. Significant Producer of Comparable Merchandise
    4. Data Availability
    E. Date of Sale
    F. Comparisons to Normal Value
    1. Determination of Comparison Method
    2. Results of the Differential Pricing Analysis
    G. U.S. Price
    1. Export Price
    2. Constructed Export Price
    3. Value-Added Tax
    H. Normal Value
    1. Factor Valuation Methodology
    I. Currency Conversion
X. Recommendation

[FR Doc. 2017-16574 Filed 8-4-17; 8:45 am]
BILLING CODE 3510-DS-P