[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:
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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