[Federal Register Volume 83, Number 184 (Friday, September 21, 2018)]
[Notices]
[Pages 47876-47879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20606]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-071]
Sodium Gluconate, Gluconic Acid, and Derivative Products From the
People's Republic of China: Final Affirmative Determination of Sales at
Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that sodium
gluconate, gluconic acid, and derivative products from the People's
Republic of China (China) are being sold in the United States at less
than fair value (LTFV).
DATES: Applicable September 21, 2018.
FOR FURTHER INFORMATION CONTACT: Magd Zalok or Stephen Bailey, 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) 482-4162 or (202) 482-0193,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This final determination is made in accordance with section 735(a)
of the Tariff Act of 1930, as amended (the Act). On July 10, 2018,
Commerce published in the Federal Register its preliminary affirmative
determination of sales at LTFV investigation of sodium gluconate,
gluconic acid, and derivative products from China.\1\ We invited
interested parties to comment on the Preliminary Determination. On
August 9, 2018, we received a case brief from PMP Fermentation
Products, Inc., the petitioner in this investigation. We received no
comments from other interested parties.
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\1\ See Sodium Gluconate, Gluconic Acid, and Derivative Products
from the People's Republic of China: Preliminary Determination of
Sales at Less Than Fair Value, 83 FR 31949 (July 10, 2018)
(Preliminary Determination) and accompanying Preliminary Decision
Memorandum.
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For a complete description of the events that followed the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, see the Issues and
Decision Memorandum that is dated concurrently with this determination
and hereby adopted by this notice.\2\ 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 is available to all
parties in the Central Records Unit, Room B8024 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/. The signed Issues and Decision Memorandum
and the electronic version are identical in content.
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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Sodium Gluconate, Gluconic Acid, and Derivative
Products from the People's Republic of China'' (Issues and Decision
Memorandum).
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Scope of the Investigation
The products covered by this investigation are sodium gluconate,
gluconic acid, and derivative products from China. For a complete
description of the scope of this investigation, see Appendix I to this
notice.
No interested party commented on the scope published in the
Preliminary Determination. Thus, Commerce has made no changes to the
scope of the investigation from that published in the Initiation Notice
and Preliminary Determination.\3\
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\3\ See Sodium Gluconate, Gluconic Acid, and Derivative Products
from France and the People's Republic of China: Initiation of Less-
Than-FairValue Investigations, 83 FR 516 (January 4, 2018)
(Initiation Notice); Preliminary Determination, 83 FR at 31949 and
accompanying Preliminary Decision Memorandum at 5-6.
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Period of Investigation
The period of investigation is April 1, 2017, through September 30,
2017.
Analysis of Comments Received
All issues raised in the case brief that was submitted by the
petitioner in this investigation are addressed in the Issues and
Decision Memorandum. A list of the issues addressed in the Issues and
Decision Memorandum is attached to this notice at Appendix II.
China-Wide Entity
For the reasons explained in the Preliminary Determination, we are
continuing to find that the use of adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act, is appropriate and are
applying a rate based entirely on AFA to the China-wide entity.\4\ The
China-wide entity includes Shandong Fuyang Biotechnology Co., Ltd./
Shandong Fuyang Biology Starch Co., Ltd.
[[Page 47877]]
(Shandong Fuyang),\5\ Qingdao Dongxiao Enterprise Co., Ltd. (Qingdao
Dongxiao),\6\ Zhejiang Tianyi Food Additives Co., Ltd. (Tianyi
Food),\7\ and Dezhou Huiyang Biotechnology Co., Ltd. (Dezhou
Huiyang).\8\ These companies failed to respond to Commerce's requests
for information and withdrew from participation in this investigation.
As these non-responsive companies did not demonstrate that they are
eligible for separate rate status, Commerce continues to consider them
to be part of the China-wide entity. Consequently, we continue to find
that the China-wide entity, which includes these non-responsive
companies, withheld requested information, significantly impeded this
proceeding and failed to cooperate to the best of its ability.
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\4\ See Preliminary Decision Memorandum at 11.
\5\ See Memorandum, ``Less-Than-Fair-Value Investigation of
Sodium Gluconate, Gluconic Acid, and Derivative Products from the
People's Republic of China: Respondent Selection,'' dated January
17, 2018 (Initial Respondent Selection Memorandum). See also
Shandong Fuyang letter, ``Notice of Non-Participation in
Investigation,'' dated March 30, 2018.
\6\ See Qingdao Dongxiao's Letter, ``Withdrawal from
Participation,'' dated February 14, 2018.
\7\ See Tianyi Food, see Commerce's Memorandum, ``Selection of
Additional Respondent,'' dated March 5, 2018 and Tianyi Food's
Letter, ``Withdrawal from Participation,'' dated March 8, 2018.
\8\ See Dezhou Huiyang's Commerce's Memorandum, ``Selection of
Additional Respondent,'' dated March 9, 2018 and Dezhou Huiyang's
Letter, ``Dezhou Huiyang Biotechnology Co., Ltd. Withdrawal of
Participation in Antidumping Duty Investigation,'' dated March 13,
2018.
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China-Wide Rate
In selecting the AFA rate for the China-wide entity, Commerce's
practice is to select a rate that is sufficiently adverse to ensure
that the uncooperative party does not obtain a more favorable result by
failing to cooperate than if it had fully cooperated.\9\ Specifically,
it is Commerce's practice to select, as an AFA rate, the higher of: (a)
The highest dumping margin alleged in the petition; or (b) the highest
calculated dumping margin of any respondent in the investigation.\10\
There are no respondents for which we are calculating a separate
dumping margin for the final determination. Thus, the highest (and
only) rate on the record of the proceeding is the rate found in the
Petition,\11\ which is the only information reasonably at Commerce's
disposal to determine a rate that is sufficiently adverse to induce
cooperation.\12\
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\9\ See Statement of Administrative Action accompanying the
Uruguay Round Agreements Act, H.R. Rep. No. 103-316 at 870 (1994)
(H.R. Rep 103-316), reprinted in 1994 U.S.C.A.A.N.
\10\ See Silicon Metal from Australia: Affirmative Final
Determination of Sales at Less Than Fair Value and Final Affirmative
Determination of Critical Circumstances in Part, 83 FR 9839 (March
8, 2018) and accompanying Issues and Decision Memorandum at Comment
1.
\11\ See Petitioner's Letter, ``Petition for Antidumping and
Countervailing Duties: Sodium Gluconate, Gluconic Acid, and
Derivative Products from the People's Republic of China and France''
(November 30, 2017) (the Petition).
\12\ See, e.g., Certain Hardwood Plywood Products from the
People's Republic of China: Preliminary Affirmative Determination of
Sales at Less Than Fair Value, Preliminary Affirmative Determination
of Critical Circumstances, in Part, 82 FR 28629 (June 23, 2017) and
accompanying Preliminary Decision Memorandum at pages 31-32 (revised
in Certain Hardwood Plywood Products from the People's Republic of
China: Final Determination of Sales at Less Than Fair Value, and
Final Affirmative Determination of Critical Circumstances, in Part,
82 FR 53460 (November 16, 2017) because Commerce calculated a higher
rate than the highest Petition rate to apply as the AFA rate)).
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Thus, as AFA, Commerce assigned to the China-wide entity the rate
of 213.15 percent, which is the sole dumping margin alleged in the
Petition.\13\
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\13\ See Petitioner's letter, ``Petition for Antidumping and
Countervailing Duties: Sodium Gluconate, Gluconic Acid, and
Derivative Products from the People's Republic of China and
France,'' dated November 30, 2017 (the Petitions),
Sodium Gluconate, Gluconic Acid, and Derivative Products from
France and the People's Republic of China: Initiation of Less-Than-
Fair-Value Investigations, 83 FR 516 (January 4, 2018) (Initiation
Notice), and Antidumping Duty Investigation Initiation Checklist:
Sodium Gluconate, Gluconic Acid, and Derivative Products from the
People's Republic of China, dated December 20, 2017 (China AD
Initiation Checklist).
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Separate Rates
For the final determination, we continue to find that the evidence
placed on the record of this investigation by Anhui Xingzhou Medicine
Food Co., Ltd. (Xingzhou Medicine) \14\ demonstrates an absence of de
jure and de facto government control. Accordingly, consistent with its
Preliminary Determination, Commerce assigned Xingzhou Medicine a
separate rate, which is the petition rate, because it is the only rate
available on the record of this proceeding. For a full description of
the methodology underlying Commerce's final determination, see the
Issues and Decision Memorandum.
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\14\ See, e.g., Xingzhou Medicine's Letter, ``Xingzhou Medicine
Separate Rate Application,'' dated February 5, 2018; Commerce's
Letter, ``1st Supplemental Questionnaire Regarding the Separate Rate
Application for Anhui Xingzhou Medicine Food Co., Ltd.,'' dated
February 27, 2018; Xingzhou Medicine's Letter, ``Supplemental SRA
Questionnaire Response,'' dated March 6, 2018; Commerce's Letter,
``2nd Supplemental Questionnaire regarding the Separate Rate
Application for Anhui Xingzhou Medicine Food Co., Ltd.,'' dated
March 22, 2018. and Xingzhou Medicine's Letter, ``Second
Supplemental SRA Questionnaire Response,'' dated March 29, 2018.
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Combination Rates
In the Initiation Notice, Commerce stated that it would calculate
producer/exporter combination rates for the respondents that are
eligible for a separate rate in this investigation.\15\ Policy Bulletin
05.1 describes this practice.\16\ Because Commerce determined that the
mandatory respondents originally selected are not eligible for separate
rate status and, thus, should be considered part of the China-wide
entity and assigned, as AFA, the petition rate to the China-wide
entity, Commerce did not calculate producer/exporter combination rates
for those respondents.
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\15\ See Initiation Notice, 83 FR 516.
\16\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
\17\ The China-wide Entity includes Dezhou Huiyang, Qingdao
Dongxiao, Shandong Fuyang, and Tianyi Food.
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Final Determination
Commerce determines that sodium gluconate, gluconic acid, and
derivative products from China are being, or are likely to be, sold in
the United States at LTFV, and that the following dumping margins
exist:
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Estimated
weighted-
Exporter Producer average
dumping margin
(percent)
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Anhui Xingzhou Medicine Food Co., Xiwang 213.15
Ltd. Pharmaceutical Co.,
Ltd.
Anhui Xingzhou Medicine Food Co., Zhucheng Shuguang 213.15
Ltd. Biotech Co., Ltd.
China-wide Entity \17\............ .................... 213.15
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[[Page 47878]]
Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of publication of the notice of final
determination in the Federal Register, in accordance with 19 CFR
351.224(b). However, because Commerce applied AFA to the China-wide
entity (which includes the companies subject to individual examination)
in this investigation, in accordance with section 776 of the Act, and
the applied AFA rate is based solely on the Petition, there are no
calculations to disclose.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we will direct
U.S. Customs and Border Protection (CBP) to continue to suspend
liquidation of all entries of sodium gluconate, gluconic acid, and
derivative products from China, as described in Appendix I of this
notice, which are entered, or withdrawn from warehouse, for consumption
on or after July 10, 2018, the date of publication in the Federal
Register of the affirmative Preliminary Determination.
Further, pursuant to section 735(c)(1)(B)(ii) of the Act, Commerce
will instruct CBP to collect a cash deposit as follows: (1) The rate
for the exporters listed in the chart above will be the rate we have
determined in this final determination; (2) for all Chinese exporters
of subject merchandise which have not received their own rate, the
cash-deposit rate will be the China-wide rate; and (3) for all non-
Chinese exporters of subject merchandise which have not received their
own rate, the cash-deposit rate will be the rate applicable to the
Chinese exporter/producer combination that supplied that non-Chinese
exporter. These suspension-of-liquidation instructions will remain in
effect until further notice. Because there has been no demonstration
that an adjustment for domestic subsidies is warranted, Commerce has
not made any such adjustment to the rate assigned to Xingzhou Medicine
or the China-wide entity. Additionally, Commerce is making no
adjustments for export subsidies to the antidumping cash deposit rate
in this investigation because we have made no findings in the companion
countervailing duty investigation that any of the programs are export
subsidies.\18\
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\18\ See Sodium Gluconate, Gluconic Acid and Derivative Products
from the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final
Determination With Final Antidumping Duty Determination, 83 FR 23888
(May 23, 2018) (Preliminary Affirmative CVD Determination) and
accompanying Preliminary Determination Memorandum at 19 (``As AFA,
pursuant to section 776(a) and (b), Commerce is finding all programs
initiated upon in this proceeding to be countervailable--that is,
they provide a financial contribution within the meaning of sections
771(5)(B)(i) and (D) of the Act, confer a benefit within the meaning
of section 771(5)(B) of the Act, and are specific within the meaning
of section 771(5A) of the Act. Accordingly, all programs are
included in Commerce's calculation of an AFA rate for Fuyang, Hongyu
Chemical, Kaison, and Qingdao Dongxiao.'') (emphasis added). In the
final determination of the companion countervailing duty
investigation, Commerce made no changes to its analysis and
calculations of subsidy rates from the Preliminary Affirmative CVD
Determination. See Sodium Gluconate, Gluconic Acid and Derivative
Products from the People's Republic of China: Final Affirmative
Countervailing Duty Determination, and accompanying Issues and
Decision Memorandum.
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International Trade Commission Notification
In accordance with section 735(d) of the Act, we intend to notify
the International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. As Commerce's final determination is
affirmative, in accordance with section 735(b)(2) of the Act, the ITC
will determine, within 45 days, whether the domestic industry in the
United States is materially injured, or threatened with material
injury, by reason of imports of sodium gluconate, gluconic acid, and
derivative products from China, or sales (or the likelihood of sales)
for importation, of sodium gluconate, gluconic acid, and derivative
products from China. If the ITC determines that such injury does not
exist, this proceeding will be terminated, and all securities posted
will be refunded or canceled. If the ITC determines that such injury
does exist, Commerce intends to 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.
Notification Regarding Administrative Protective Orders
This notice will serve as a reminder to the parties subject to
administrative protective order (APO) of their responsibility
concerning the disposition of propriety information disclosed under APO
in accordance with 19 CFR 351.305. 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.
We intend to issue and publish this determination in accordance
with sections 735(d) and 777(i)(1) of the Act.
Dated: September 17, 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 scope of the investigation covers all grades of sodium
gluconate, gluconic acid, liquid gluconate, and glucono delta
lactone (GDL) (collectively GNA Products), regardless of physical
form (including, but not limited to substrates; solutions; dry
granular form or powders, regardless of particle size; or as a
slurry). The scope also includes GNA Products that have been blended
or are in solution with other product(s) where the resulting mix
contains 35 percent or more of sodium gluconate, gluconic acid,
liquid gluconate, and/or GDL by dry weight.
Sodium gluconate has a molecular formula of
NaC6H11O7. Sodium gluconate has a
Chemical Abstract Service (CAS) registry number of 527-07-1, and can
also be called ``sodium salt of gluconic acid'' and/or sodium 2, 3,
4, 5, 6 pentahydroxyhexanoate. Gluconic acid has a molecular formula
of C6H12O7. Gluconic acid has a CAS
registry number of 526-95-4, and can also be called 2, 3, 4, 5, 6
pentahydroxycaproic acid. Liquid gluconate is a blend consisting
only of gluconic acid and sodium gluconate in an aqueous solution.
Liquid gluconate has CAS registry numbers of 527-07-1, 526-95-4, and
7732-18-5, and can also be called 2, 3, 4, 5, 6-pentahydroxycaproic
acid-hexanoate. GDL has a molecular formula of
C6H10O6. GDL has a CAS registry
number of 90-80-2, and can also be called d-glucono-1,5-lactone.
The merchandise covered by the scope of the investigation is
currently classified in the Harmonized Tariff Schedule of the United
States (HTSUS) under subheadings 2918.16.1000, 2918.16.5010, and
2932.20.5020. Merchandise covered by the scope may also enter under
HTSUS subheadings 2918.16.5050, 3824.99.2890, and 3824.99.9295.
Although the HTSUS subheadings and CAS registry numbers 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. List of Issues
III. Background
IV. Scope of Investigation
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V. Discussion of the Issues
Comment 1: Application of Adverse Facts Available (AFA) to the
China-wide Entity
Comment 2: Whether to Assign the China-Wide Entity Rate to the
Separate Rate Applicant
Comment 3: Whether the Scope of the Investigation Should be
Modified
VI. Recommendation
[FR Doc. 2018-20606 Filed 9-20-18; 8:45 am]
BILLING CODE 3510-DS-P