[Federal Register Volume 83, Number 219 (Tuesday, November 13, 2018)]
[Notices]
[Pages 56299-56300]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24705]



[[Page 56299]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-071, C-570-072]


Sodium Gluconate, Gluconic Acid, and Derivative Products From the 
People's Republic of China: Antidumping Duty and Countervailing Duty 
Orders

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing antidumping duty (AD) and countervailing duty (CVD) 
orders on sodium gluconate, gluconic acid, and derivative products (GNA 
Products) from the People's Republic of China (China).

DATES: Applicable November 13, 2018.

FOR FURTHER INFORMATION CONTACT: Magd Zalok (AD) at (202) 482-4162 or 
Robert Galantucci (CVD) at (202) 482-2923, AD/CVD Operations, Office 
IV, Enforcement and Compliance, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    In accordance with sections 705(d) and 735(d) of the Tariff Act of 
1930, as amended (the Act), on September 21, 2018, Commerce published 
its affirmative final determination of sales at less than fair value 
(LTFV) and its affirmative final determination that countervailable 
subsidies are being provided to producers and exporters of GNA Products 
from China.\1\ On October 31, 2018, the ITC notified Commerce of its 
final affirmative determination that an industry in the United States 
is materially injured by reason of LTFV imports and subsidized imports 
of GNA Products from China, within the meaning of sections 
705(b)(1)(A)(i) and 735(b)(1)(A)(i) of the Act.\2\
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    \1\ See Sodium Gluconate, Gluconic Acid, and Derivative Products 
from the People's Republic of China: Final Affirmative Determination 
of Sales at Less Than Fair Value, 83 FR 47876 (September 21, 2018) 
(AD Final Determination); Sodium Gluconate, Gluconic Acid and 
Derivative Products from the People's Republic of China: Final 
Affirmative Countervailing Duty Determination, 83 FR 47879 
(September 21, 2018) (CVD Final Determination).
    \2\ See Letter to Honorable Gary Taverman, Acting Assistant 
Secretary of Commerce for Enforcement and Compliance, from David S. 
Johanson, Chairman of the U.S. International Trade Commission, 
regarding antidumping and countervailing duty investigations 
concerning imports of Sodium Gluconate, Gluconic Acid, and 
Derivative Products from the People's Republic of China 
(Investigation Nos. 701-TA-590 and 731-TA-1397(Final)), dated 
October 31, 2018 (ITC Letter).
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Scope of the Orders

    The scope of the orders 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 orders 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.

Antidumping Duty Order

    In accordance with section 735(d) of the Act, the ITC has notified 
Commerce of its final determination that an industry in the United 
States is materially injured within the meaning of section 
735(b)(1)(A)(i) of the Act by reason of imports of GNA Products that 
are sold in the United States at LTFV. Therefore, in accordance with 
section 735(c)(2) of the Act, we are publishing this antidumping duty 
order. Because the ITC determined that imports of GNA Products from 
China are materially injuring a U.S. industry, unliquidated entries of 
such merchandise from China, entered or withdrawn from warehouse for 
consumption, are subject to the assessment of antidumping duties.
    In accordance with section 736(a)(1) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to assess, upon further 
instruction by Commerce, antidumping duties equal to the amount by 
which the normal value of the merchandise exceeds the export price (or 
constructed export price) of the merchandise, for all relevant entries 
of GNA Products from China. Antidumping duties will be assessed on 
unliquidated entries of GNA Products from China entered, or withdrawn 
from warehouse, for consumption on or after July 10, 2018, the date of 
publication of the AD Preliminary Determination.\3\
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    \3\ 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).
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Continuation of Suspension of Liquidation (AD)

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct CBP to continue to suspend liquidation on entries of subject 
merchandise from China. These instructions suspending liquidation will 
remain in effect until further notice.
    We will also instruct CBP to require cash deposits equal to the 
amount indicated below. Accordingly, effective on the date of 
publication of the ITC's final affirmative injury determination, CBP 
will require, at the same time as importers would normally deposit 
estimated duties on this subject merchandise, a cash deposit equal to 
the estimated weighted-average dumping margins listed below. Commerce 
has made no adjustments to the antidumping cash deposit rate because 
Commerce has made no findings in the countervailing duty investigation 
that any of the programs are export subsidies.\4\
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    \4\ See AD Final Determination, 83 FR at 47878.
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Estimated Weighted-Average Antidumping Duty Margin

    The weighted-average antidumping duty margin is as follows:

[[Page 56300]]



------------------------------------------------------------------------
                                                             Weighted-
                                                              average
            Exporter                     Producer         dumping margin
                                                             (percent)
------------------------------------------------------------------------
Anhui Xingzhou Medicine Food     Xiwang Pharmaceutical            213.15
 Co., Ltd.                        Co., Ltd.
Anhui Xingzhou Medicine Food     Zhucheng Shuguang                213.15
 Co., Ltd.                        Biotech Co., Ltd.
                  China-wide Entity \5\                           213.15
---------------------------------------------------------
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Countervailing Duty Order

    In accordance with section 705(d) of the Act, the ITC notified 
Commerce of its final determination that the industry in the United 
States producing GNA Products is materially injured within the meaning 
of section 705(b)(1)(A)(i) of the Act by reason of subsidized imports 
of GNA Products from China.\6\ Therefore, in accordance with section 
705(c)(2) of the Act, we are publishing this countervailing duty order. 
Because the ITC determined that imports of GNA Products from China are 
materially injuring a U.S. industry, unliquidated entries of such 
merchandise from China, entered or withdrawn from warehouse for 
consumption, are subject to assessment of countervailing duties.
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    \5\ The China-wide Entity includes Dezhou Huiyang Biotechnology 
Co., Ltd., Qingdao Dongxiao Enterprise Co., Ltd., Shandong Fuyang 
Biotechnology Co., Ltd./Shandong Fuyang Biology Starch Co., Ltd., 
and Zhejiang Tianyi Food Additives Co., Ltd.
    \6\ See ITC Letter.
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    Commerce directed CBP to assess, upon further instruction by 
Commerce, countervailing duties on unliquidated entries of GNA Products 
entered, or withdrawn from warehouse, for consumption on or after May 
23, 2018, the date of publication of the CVD Preliminary 
Determination.\7\ However, section 703(d) of the Act states that the 
suspension of liquidation pursuant to a preliminary determination may 
not remain in effect for more than 120 days. Therefore, we instructed 
CBP to terminate the suspension of liquidation and to liquidate, 
without regard to countervailing duties, unliquidated entries of GNA 
Products from China entered, or withdrawn from warehouse, for 
consumption, on or after September 20, 2018, until and through the day 
preceding the date of publication of the ITC's final injury 
determination in the Federal Register.
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    \7\ 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).
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Suspension of Liquidation (CVD)

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to suspend liquidation on all entries of GNA Products from China, 
as further described below. These instructions suspending liquidation 
will remain in effect until further notice. Commerce will also instruct 
CBP to require cash deposits equal to the amounts as indicated below. 
Accordingly, effective on the date of publication of the ITC's final 
affirmative injury determination, CBP will require, at the same time as 
importers would normally deposit estimated duties on this subject 
merchandise, a cash deposit equal to the subsidy rates listed below. 
The all-others rate applies to all producers or exporters not 
specifically listed below, as appropriate.

------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/producer                        (percent)
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Qingdao Dongxiao Enterprise Co., Ltd....................          194.67
Shandong Fuyang Biotechnology Co........................          194.67
Shandong Kaison Biochemical Co Ltd......................          194.67
Tongxiang Hongyu Chemical Co., Ltd......................          194.67
All-Others..............................................          194.67
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Notification to Interested Parties

    This notice constitutes the AD and CVD orders with respect to GNA 
Products from China pursuant to sections 736(a) and 706(a) of the Act. 
Interested parties can find an updated list of orders currently in 
effect by either visiting http://enforcement.trade.gov/stats/iastats1.html.
    These orders are published in accordance with sections 706(a), 
736(a), and 19 CFR 351.211(b).

     Dated: November 2, 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.
[FR Doc. 2018-24705 Filed 11-9-18; 8:45 am]
 BILLING CODE 3510-DS-P