[Federal Register Volume 83, Number 108 (Tuesday, June 5, 2018)]
[Notices]
[Pages 25998-26000]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12009]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-549-833]


Citric Acid and Certain Citrate Salts From Thailand: Affirmative 
Final Determination of Sales at Less Than Fair Value and Final 
Affirmative Determination of Critical Circumstances in Part

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

SUMMARY: The Department of Commerce (Commerce) determines that citric 
acid and certain citrate salts (citric acid) from Thailand are being, 
or are likely to be, sold in the United States at less than fair value 
(LTFV) during the period of investigation (POI) April 1, 2016, through 
March 31, 2017. In addition, we determine that critical circumstances 
exist with respect to certain imports of the subject merchandise.

DATES: Applicable June 5, 2018.

FOR FURTHER INFORMATION CONTACT: Joy Zhang (COFCO), George McMahon 
(Niran), or Cindy Robinson (Sunshine), AD/CVD Operations, Office III, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230; telephone: (202) 482-1168, (202) 482-1167, or (202) 482-3797, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the Preliminary Determination of sales at LTFV 
of citric acid from Thailand on January 8, 2018, in which we also 
postponed the final determination until May 26, 2018.\1\ We invited 
interested parties to comment on the Preliminary Determination. 
Commerce exercised its discretion to toll all deadlines affected by the 
closure of the Federal Government from January 20 through 22, 2018. The 
revised deadline for the final determination of this investigation is 
now May 29, 2018.\2\
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    \1\ See Citric Acid and Certain Citrate Salts from Thailand: 
Preliminary Affirmative Determination of Sales at Less Than Fair 
Value, Preliminary Affirmative Critical Circumstances Determination, 
in Part, and Postponement of Final Determination and Extension of 
Provisional Measures, 83 FR 784 (January 8, 2018) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum, which is adopted by this notice.\3\
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than- Fair-Value 
Investigation of Citric Acid and Certain Citrate Salts from 
Thailand,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is citric acid from 
Thailand. For a full description of the scope of this investigation, 
see the ``Scope of the Investigation'' in Appendix I of this notice.

Scope Comments

    Prior to the Preliminary Determination, we issued a Preliminary 
Scope Decision Memorandum.\4\ We subsequently invited parties to submit 
additional scope comments in their case briefs, but received none. 
Therefore, for the final determination, we continue to find that the 
scope of the investigation as defined in the Initiation Notice \5\ and 
the Preliminary Determination \6\ remains applicable. See Appendix I.
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    \4\ See Memorandum ``Scope Comments Decision Memorandum for the 
Preliminary Determinations,'' dated December 1, 2017 (Preliminary 
Scope Decision Memorandum).
    \5\ See Citric Acid and Certain Citrate Salts from Belgium, 
Colombia, and Thailand: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 29828 (June 30, 2017) (Initiation Notice) and 
accompanying Initiation Checklist.
    \6\ See Preliminary Determination, 83 FR at 786.

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[[Page 25999]]

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), from January through March 2018, we conducted verification 
of the sales and cost information submitted by respondents, COFCO 
Biochemical (Thailand) Co., Ltd. (COFCO), Niran (Thailand) Co., Ltd. 
(Niran), and Sunshine Biotech International Co., Ltd. (Sunshine) for 
use in our final determination. We used standard verification 
procedures, including an examination of relevant accounting and 
production records, and original source documents provided by COFCO, 
Niran, and Sunshine.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs submitted by the 
interested parties are addressed in the Issues and Decision Memorandum 
accompanying this notice, which is hereby adopted by this notice. A 
list of the issues addressed in the Issues and Decision Memorandum is 
attached to this notice at Appendix II. 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 https://access.trade.gov, and it is available to 
all parties in the Central Records Unit, Room B-8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.

Changes Since the Preliminary Determination

    In accordance with sections 776(a)(1) and 776(a)(2)(A)-(D) of the 
Act, we have applied partial adverse facts available (AFA) to Sunshine 
with respect to the cost of a product which Sunshine sold during the 
POI but did not produce during the POI because Sunshine failed, prior 
to the cost verification, to fully disclose the fact that additional 
materials and equipment were necessary to produce this product compared 
to other products that were produced and sold during the POI. In 
addition, we made certain changes to the margin calculations for COFCO, 
Niran, and Sunshine. These changes are discussed in the ``Changes Since 
the Preliminary Determination'' section of the Issues and Decision 
Memorandum.

Final Affirmative Determination of Critical Circumstances, in Part

    In accordance with section 733(e)(1) of the Act and 19 CFR 351.206, 
we preliminarily found that critical circumstances exist with respect 
to imports of citric acid from one of the mandatory respondents, Niran, 
and do not exist with respect to COFCO, Sunshine and the companies 
covered by the ``all others'' rate.\7\ Commerce received no comments 
regarding this issue after the Preliminary Determination. Therefore, 
based on our analysis, for the final determination we continue to find 
that, in accordance with section 735(a)(3) of the Act, and 19 CFR 
351.206, critical circumstances exist with respect to subject 
merchandise produced or exported by Niran, but do not exist with 
respect to COFCO, Sunshine and the companies covered by the ``all 
others'' rate.
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    \7\ See Preliminary Decision Memorandum, at 8-13.
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All-Others Rate

    Section 735(c)(5)(A) of the Act provides that, in the final 
determination, Commerce shall determine an estimated weighted-average 
dumping margin for all-other exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted-average of 
the estimated weighted-average dumping margins established for 
exporters or producers individually examined, excluding rates that are 
zero, de minimis or determined entirely under section 776 of the Act.
    Commerce calculated the all-others rate based on a weighted average 
of the estimated weighted-average dumping margins calculated for the 
three mandatory respondents: COFCO, Niran, and Sunshine, none of which 
are zero, de minimis, or based entirely on facts otherwise available. 
Commerce calculated the all-others' rate using a weighted-average of 
the estimated weighted-average dumping margins calculated for the 
examined respondents using each company's business proprietary data for 
the merchandise under consideration.\8\
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    \8\ For a complete analysis of the data, please see the All-
Others Rate Calculation Memorandum dated concurrently with this 
notice.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Exporter/Producer                         average
                                                          dumping margin
                                                             (percent)
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COFCO Biochemical (Thailand) Co., Ltd. (COFCO)..........           15.71
Niran (Thailand) Co., Ltd. (Niran)......................           13.00
Sunshine Biotech International Co., Ltd. (Sunshine).....            6.47
All-Others..............................................           11.25
------------------------------------------------------------------------

Disclosure

    We will disclose to interested parties the calculations performed 
in this final determination within five days of any public announcement 
in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, for this final 
determination, we will direct U.S. Customs and Border Protection (CBP) 
to continue to suspend liquidation of all entries of citric acid from 
Thailand, as described in Appendix I of this notice, which are entered, 
or withdrawn from warehouse, for consumption on or after January 8, 
2018, the date of publication in the Federal Register of the 
affirmative Preliminary Determination.
    For entries made by Niran, in accordance with section 735(c)(4)(A) 
of the Act, because we continue to find that critical circumstances 
exist, we will instruct CBP to continue to suspend liquidation of all 
appropriate entries of citric acid from Thailand which were entered, or 
withdrawn from warehouse, for consumption on or after October 10, 2017, 
which is 90 days prior to the date of publication of the Preliminary 
Determination. Additionally, for entries made by companies covered by 
the ``all others'' rate, in accordance with section 735(c)(4)(B) of the 
Act, because we continue to find that critical circumstances do not 
exist with regard to imports from all other producers and exporters of 
citric acid from Thailand, we will instruct CBP to continue to suspend 
liquidation of all appropriate entries of citric acid from Thailand 
which were entered, or withdrawn from warehouse, for consumption on or 
after January 8, 2018, which is the date of publication of the 
Preliminary Determination.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.10(d), Commerce will instruct CBP to require a cash deposit for 
such entries of merchandise equal to the estimated weighted-average 
dumping margins or

[[Page 26000]]

the estimate all-others rate, as follows: (1) The cash deposit rate for 
the respondents listed above will be equal to the respondent-specific 
estimated weighted-average dumping margin determined in this final 
determination; (2) if the exporter is not a respondent identified above 
but the producer is, then the cash deposit rate will be equal to the 
respondent-specific estimated weighted average dumping margin 
established for the producer of the subject merchandise; and (3) the 
cash deposit rate for all other producers and exporters will equal to 
the all-others estimated weighted-average dumping margin. These 
suspension of liquidation instructions will remain in effect until 
further notice.
    Commerce normally adjusts cash deposits for estimated antidumping 
duties by the amount of export subsidies countervailed in a companion 
countervailing duty (CVD) proceeding, when CVD provisional measures are 
in effect. Accordingly, where Commerce makes an affirmative 
determination for countervailable export subsidies, Commerce offsets 
the estimated weighted-average dumping margin by the appropriate CVD 
rate. However, in the companion CVD final determination, Commerce has 
determined that no countervailable export subsidies are being provided 
to the production or exportation of subject merchandise. Accordingly, 
we made no adjustment for the export subsidy offset to the estimated 
weighted-average dumping margin. 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, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determination as to 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 citric acid from Thailand no later than 45 
days after this final determination. If the ITC determines that such 
injury does not exist, this proceeding will be terminated and all cash 
deposits posted will be refunded or canceled. If the ITC determines 
that such injury does exist, Commerce will issue an antidumping duty 
order directing CBP to assess, upon further instruction by Commerce, 
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, as discussed above in the 
``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as the only reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305(a)(3). 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.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: May 29, 2018.
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 I

Scope of the Investigation

    The merchandise covered by this investigation includes all 
grades and granulation sizes of citric acid, sodium citrate, and 
potassium citrate in their unblended forms, whether dry or in 
solution, and regardless of packaging type. The scope also includes 
blends of citric acid, sodium citrate, and potassium citrate; as 
well as blends with other ingredients, such as sugar, where the 
unblended form(s) of citric acid, sodium citrate, and potassium 
citrate constitute 40 percent or more, by weight, of the blend.
    The scope also includes all forms of crude calcium citrate, 
including dicalcium citrate monohydrate, and tricalcium citrate 
tetrahydrate, which are intermediate products in the production of 
citric acid, sodium citrate, and potassium citrate.
    The scope includes the hydrous and anhydrous forms of citric 
acid, the dihydrate and anhydrous forms of sodium citrate, otherwise 
known as citric acid sodium salt, and the monohydrate and 
monopotassium forms of potassium citrate. Sodium citrate also 
includes both trisodium citrate and monosodium citrate which are 
also known as citric acid trisodium salt and citric acid monosodium 
salt, respectively.
    The scope does not include calcium citrate that satisfies the 
standards set forth in the United States Pharmacopeia and has been 
mixed with a functional excipient, such as dextrose or starch, where 
the excipient constitutes at least 2 percent, by weight, of the 
product.
    Citric acid and sodium citrate are classifiable under 
2918.14.0000 and 2918.15.1000 of the Harmonized Tariff Schedule of 
the United States (HTSUS), respectively. Potassium citrate and crude 
calcium citrate are classifiable under 2918.15.5000 and, if included 
in a mixture or blend, 3824.99.9295 of the HTSUS. Blends that 
include citric acid, sodium citrate, and potassium citrate are 
classifiable under 3824.99.9295 of the HTSUS. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Changes Since the Preliminary Determination
V. Use of Partial Facts Available
VI. Final Affirmative Determination of Critical Circumstances, in 
Part
VII. Discussion of the Issues
    COFCO
    Comment 1: The Levels of Trade that Exist in the U.S. and Home 
Market (HM)
    Comment 2: Whether to Modify COFCO's General and Administrative 
(G&A) Expense Rate for Certain Offsetting Income
    Comment 3: Whether to Modify COFCO's G&A Expense Rate for 
Allowance for Doubtful Accounts
    Comment 4: Imputed Interest Expense from Affiliated Party Loans
    Niran
    Comment 5: Whether to Include Minor Corrections from the Sales 
and Cost Verifications
    Sunshine
    Comment 6: Whether to Base Sunshine's Cost of Production for 
Trisodium Citrate (TSC) on Partial Adverse Facts Available
    Comment 7: Whether to Increase Sunshine's Raw Material Costs to 
Account for Excluded Cassava Costs
    Comment 8: Whether to Exclude Sunshine's Waived Interest 
Expenses
VIII. Recommendation

[FR Doc. 2018-12009 Filed 6-4-18; 8:45 am]
 BILLING CODE 3510-DS-P