[Federal Register Volume 84, Number 84 (Wednesday, May 1, 2019)]
[Notices]
[Pages 18484-18486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08829]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-878]


Glycine From Japan: Final 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 glycine 
from Japan is being, or is likely to be, sold in the United States at 
less than fair value (LTFV) during the period of investigation (POI) 
January 1, 2017, through December 31, 2017.

DATES: Applicable May 1, 2019.

FOR FURTHER INFORMATION CONTACT: Madeline Heeren or John McGowan, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-9179 or (202) 
482-3019, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 31, 2018, Commerce published in the Federal Register the 
Preliminary Determination of sales at LTFV of glycine from Japan.\1\ 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.\2\
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    \1\ See Glycine from Japan: Preliminary Determination of Sales 
at Less Than Fair Value and Postponement of Final Determination, 83 
FR 54718 (October 31, 2018) (Preliminary Determination) and 
accompanying memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Glycine 
from Japan'' (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Glycine from Japan,'' dated concurrently with this 
determination and hereby adopted by this notice (Issues and Decision 
Memorandum).
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    Commerce exercised its discretion to toll all deadlines affected by 
the partial federal government closure from December 22, 2018, through 
the resumption of operations on January 29, 2019.\3\ If the new 
deadline falls on a non-business day, in accordance with Commerce's 
practice, the deadline will

[[Page 18485]]

become the next business day. Accordingly, the revised deadline for the 
final determination of this investigation is now April 24, 2019.
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    \3\ See Memorandum, ``Deadlines Affected by the Partial Shutdown 
of the Federal Government,'' dated January 28, 2019. All deadlines 
in this segment of the proceeding have been extended by 40 days.
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Period of Investigation

    The POI is January 1, 2017, through December 31, 2017.

Scope of the Investigation

    The product covered by this investigation is glycine from Japan. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    We invited parties to comment on Commerce's Preliminary Scope 
Decision Memorandum.\4\ Commerce has reviewed the briefs submitted by 
interested parties, considered the arguments therein, and has made no 
changes to the scope of the investigation. For further discussion, see 
Commerce's Scope Comments Final Decision Memorandum.\5\
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    \4\ See Memorandum, ``Glycine from India, Japan, the People's 
Republic of China and Thailand: Scope Comments Decision Memorandum 
for the Preliminary Determinations,'' dated August 27, 2018 
(Preliminary Scope Decision Memorandum).
    \5\ See Memorandum, ``Glycine from India, Japan, the People's 
Republic of China and Thailand: Scope Comments Decision Memorandum 
for the Final Determinations,'' dated April 24, 2019.
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Analysis of Comments Received

    All issues raised in the case briefs and rebuttal briefs submitted 
by interested parties in this proceeding are discussed in the Issues 
and Decision Memorandum. A list of the issues raised by parties and 
responded to by Commerce in the Issues and Decision Memorandum is 
attached at Appendix II. The Issues and Decision Memorandum is a public 
document and is available 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 B-8024 of Commerce's main building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum 
and electronic version are identical in content.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), Commerce verified the sales and cost data reported by Yuki 
Gosei Kogyo Co., Ltd. (Yuki Gosei), as well as affiliations, corporate 
structure, and U.S. sales reported by Nagase & Co., Ltd. (Nagase) 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 the 
respondents.\6\
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    \6\ See Memorandum, ``Verification of the Sales Response of Yuki 
Gosei Kogyo, Ltd. in the Antidumping Investigation of Glycine from 
Japan,'' dated February 5, 2019 (Yuki Gosei Sales Verification 
Report); see also Memorandum, and ``Verification of the Cost 
Response of Yuki Gosei Kogyo Co., Ltd. in the Antidumping Duty 
Investigation of Glycine from Japan,'' dated December 18, 2018 (Yuki 
Gosei Cost Verification Report); Memorandum, ``Verification of the 
Questionnaire Responses of Nagase & Co., Ltd. in the Less-Than-Fair-
Value Investigation of Glycine from Japan,'' dated February 5, 2019 
(Nagase Verification Report).
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
Yuki Gosei since the Preliminary Determination. For a discussion of 
these changes, see the ``Margin Calculations'' section of the Issues 
and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
not individually investigated shall be equal to the weighted average of 
the estimated weighted-average dumping margins established for 
individually investigated exporters and producers, excluding any 
margins that are zero or de minimis or any margins determined entirely 
under section 776 of the Act. In this investigation, Commerce assigned 
a rate based entirely on adverse facts available to Showa Denko K. K. 
(Showa Denko). We did not calculate a company-specific rate for 
Nagase.\7\ The cash deposit rate requirements for Nagase will be 
determined consistent with the ``Continuation of Suspension of 
Liquidation'' section of this notice. Therefore, the only rate that is 
not zero, de minimis, or based entirely on facts otherwise available is 
the rate calculated for Yuki Gosei. Consequently, the rate calculated 
for Yuki Gosei is also assigned as the rate for all other producers and 
exporters.
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    \7\ See Preliminary Determination, and accompanying PDM at 4-5, 
and 13-14.
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Final Determination

    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         margins
                                                               (percent)
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Yuki Gosei Kogyo............................................       53.66
Showa Denko K.K.............................................       86.22
All Others..................................................       53.66
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Disclosure

    We will disclose the calculations performed in this final 
determination within five days of any public announcement of this 
notice 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 glycine, as 
described in Appendix I of this notice, which are entered, or withdrawn 
from warehouse, for consumption on or after October 31, 2018, the date 
of publication in the Federal Register of the affirmative Preliminary 
Determination.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), we will instruct CBP to require a cash deposit for such 
entries of merchandise equal to the estimated weighted-average dumping 
margin 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 that producer 
of the subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters will be equal to the all-others 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 the final determination in this 
proceeding 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

[[Page 18486]]

sales (or the likelihood of sales) for importation of glycine from 
Japan no later than 45 days after our final determination. If the ITC 
determines that material injury or threat of material injury does not 
exist, the proceeding will be terminated, and all cash deposits will be 
refunded. 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 serves as the only reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a violation subject to sanction.

Notification to Interested Parties

    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i) of the Act and 19 CFR 
351.210(c).

    Dated: April 24, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is glycine at any 
purity level or grade. This includes glycine of all purity levels, 
which covers all forms of crude or technical glycine including, but 
not limited to, sodium glycinate, glycine slurry and any other forms 
of amino acetic acid or glycine. Subject merchandise also includes 
glycine and precursors of dried crystalline glycine that are 
processed in a third country, including, but not limited to, 
refining or any other processing that would not otherwise remove the 
merchandise from the scope of this investigation if performed in the 
country of manufacture of the in-scope glycine or precursors of 
dried crystalline glycine. Glycine has the Chemical Abstracts 
Service (CAS) registry number of 56-40-6. Glycine and glycine slurry 
are classified under Harmonized Tariff Schedule of the United States 
(HTSUS) subheading 2922.49.43.00. Sodium glycinate is classified in 
the HTSUS under 2922.49.80.00. While the HTSUS subheadings and CAS 
registry number are provided for convenience and customs purposes, 
the written description of the scope of this investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Period of the Investigation
IV. Scope of the Investigation
V. Changes Since the Preliminary Determination
VI. Discussion of the Issues
    Comment 1: Adjustment of General and Administrtive Expense Ratio 
for Research and Development Expenses
    Comment 2: Adjustment of Indirect Selling Expense in Calculating 
the Financial Expense Ratio for Self-Produced Sales
    Comment 3: Inclusion of Commission Fees in Financial Expense 
Ratio for Self-Produced Sales
    Comment 4: Adjustment of Cost Data To Account for Returns
    Comment 5: Adjustment of Warehouse Expenses
    Comment 6: Incorrect Invoice Dates
    Comment 7: Treatment of Nagase for the Final Determination
VII. Recommendation

[FR Doc. 2019-08829 Filed 4-30-19; 8:45 am]
BILLING CODE 3510-DS-P