[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:

------------------------------------------------------------------------
                                                             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

[[Page 47879]]

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