[Federal Register Volume 84, Number 111 (Monday, June 10, 2019)]
[Notices]
[Pages 26813-26815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12149]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-985]
Xanthan Gum From the People's Republic of China: Preliminary
Results of the Antidumping Duty Administrative Review, and Preliminary
Determination of No Shipments; 2017-2018
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that xanthan gum from the People's Republic of China (China) is being
sold in the United States at less than fair value (LTFV). The period of
review (POR) is July 1, 2017, through June 30, 2018. Interested parties
are invited to comment on these preliminary results.
DATES: Applicable June 10, 2019.
FOR FURTHER INFORMATION CONTACT: Aleksandras Nakutis or Thomas Hanna,
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) 482-3147 or (202)
482-0835, respectively.
SUPPLEMENTARY INFORMATION:
Background
This administrative review is being conducted in accordance with
section 751(a) of the Tariff Act of 1930, as amended (the Act). On July
3, 2018, Commerce published in the Federal Register a notice of
opportunity to request an administrative review of the antidumping duty
order on xanthan gum from China.\1\ Commerce published the notice of
initiation of this administrative review on September 10, 2018.\2\ On
January 28, 2019, Commerce exercised its discretion to toll all
deadlines affected by the closure of the federal government from
December 22, 2018, through January 28, 2019.\3\ Commerce extended the
preliminary results deadline until June 5, 2019.\4\ For a complete
description of the events that followed the initiation of this
investigation, see the Preliminary Decision Memorandum.\5\ A list of
topics included in the Preliminary Decision Memorandum is included in
the appendix to this notice. The Preliminary 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
https://access.trade.gov, and to all parties in the Central Records
Unit, Room B8024 of the main Department of Commerce building. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/. The signed
and the electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\1\ See Antidumping or Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity To Request Administrative
Review, 83 FR 31121 (July 3, 2018).
\2\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 83 FR 45596 (September 10, 2018).
\3\ See Memorandum to 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, ``Deadlines Affected by the Partial
Shutdown of the Federal Government,'' dated January 28, 2019.
\4\ See Memorandum, ``Xanthan Gum from the People's Republic of
China: Extension of Deadline for Preliminary Results of Antidumping
Duty Administrative Review,'' dated May 7, 2019.
\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Results in the Fifth Antidumping Duty Administrative Review of
Xanthan Gum from the People's Republic of China,'' (Preliminary
Decision Memorandum), dated concurrently with, and hereby adopted
by, this notice.
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Scope of the Order
The product covered by this order is dry xanthan gum, whether or
not coated or blended with other products, from China. For a complete
description of the scope of this order, see the Preliminary Decision
Memorandum.
Preliminary Determination of No Shipments
On September 25, 2017, and October 9, 2018, Shanghai Smart
Chemicals Co., Ltd. (Shanghai Smart), Jianlong Biotechnology Co., Ltd.
(Jianlong), and Inner Mongolia Jianlong Biochemical Co., Ltd. (IMJ),
respectively, timely filed certifications that they had no exports,
sales, or entries of subject merchandise during the POR. Based on an
analysis of the U.S. Customs and Border Protection (CBP) information
and Shanghai Smart, Jianlong's, and IMJ's, no shipment certifications,
Commerce preliminarily determines that Shanghai Smart, Jianlong, and
IMJ had no shipments and, therefore, no reviewable transactions, during
the POR.\6\ For additional information regarding this determination,
see the Preliminary Decision Memorandum.
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\6\ See Memorandum to the File, ``Antidumping Duty
Administrative Review of Xanthan Gum from the People's Republic of
China: Automated Commercial System Shipment Query,'' dated September
15, 2017; see also Memorandum to the File, ``Xanthan gum from China
(A-570-985),'' dated June 14, 2018.
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Consistent with our practice in non-market economy (NME) cases,
Commerce is not rescinding this administrative review with respect to
Shanghai Smart, Jianlong, or IMJ, for which it has preliminarily found
no shipments during the POR, but intends to complete the review, and
issue appropriate instructions to CBP based on the final results of the
review.\7\
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\7\ See Non-Market Economy Antidumping Proceedings: Assessment
of Antidumping Duties, 76 FR 65694 (October 24, 2011) (NME AD
Assessment); and the ``Assessment Rates'' section, below.
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Methodology
Commerce is conducting this review in accordance with section
751(a)(1)(B) of the Act. We calculated, where applicable, export price
and constructed export price for the mandatory respondents Deosen
Biochemical (Ordos) Ltd. and Deosen Biochemical Ltd. (collectively
Deosen), and Meihua Group International Trading (Hong Kong) Limited,
Langfang Meihua Biotechnology Co., Ltd., and Xinjiang Meihua Amino Acid
Co., Ltd. (collectively Meihua) in accordance with section 772 of the
Act. Because China is an NME country within the meaning of section
771(18) of the Act, we calculated NV in accordance with section 773(c)
of the Act.
For a full description of the methodology underlying our results,
see the Preliminary Decision Memorandum.
Single Entity Treatment
Consistent with prior segments of this proceeding, we have
continued to treat Deosen Biochemical (Ordos) Ltd. and Deosen
Biochemical Ltd. as a single entity; and Meihua Group International
Trading (Hong Kong) Limited, Langfang Meihua Biotechnology Co., Ltd.,
and Xinjiang Meihua Amino Acid Co., Ltd. as a single entity, pursuant
to 19 CFR 351.401(f)(1)-(2). For additional information, see the
Preliminary Decision Memorandum.
[[Page 26814]]
Separate Rates
Commerce preliminary determines that the information placed on the
record by Deosen, Meihua, and the other companies listed in the rate
table below demonstrates that these companies are entitled to separate
rate status. However, we preliminarily determine that Hebei Xinhe
Biochemical Co., Ltd. and A.H.A. International Co., Ltd. did not
demonstrate their entitlement to separate rates status. Therefore, we
are preliminarily treating Hebei Xinhe Biochemical Co., Ltd. and A.H.A.
International Co., Ltd. as part of the China-wide entity. For
additional information, see the Preliminary Decision Memorandum.
Dumping Margins for Separate Rate Companies
The statute and Commerce's regulations do not address what rate to
apply to respondents not selected for individual examination when
Commerce limits its examination in an administrative review pursuant to
section 777A(c)(2) of the Act. Generally, Commerce looks to section
735(c)(5) of the Act, which provides instructions for calculating the
all-others rate in an investigation, for guidance when calculating the
rate for non-selected respondents that are not examined individually in
an administrative review. Section 735(c)(5)(A) of the Act states that
the all-others rate should be calculated by averaging the weighted-
average dumping margins for individually-examined respondents,
excluding rates that are zero, de minimis, or based entirely on facts
available. Where the rates for the individually examined companies are
all zero, de minimis, or based entirely on facts available, section
735(c)(5)(B) of the Act provides that Commerce may use ``any reasonable
method'' to establish the all-others rate. We preliminarily assigned
the respondents not selected for individual examination to which we
granted a separate rate the dumping margin calculated for Deosen.
Preliminary Dumping Margins
Commerce preliminarily determines that the following weighted-
average dumping margins exist for the period July 1, 2017, through June
30, 2018:
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Weighted-average
Exporter dumping margin
(percent)
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Deosen Biochemical Ltd./Deosen Biochemical (Ordos) 45.65
Ltd................................................
Meihua Group International Trading (Hong Kong) 0.00
Limited/Langfang Meihua Biotechnology Co., Ltd.,/
Xinjiang Meihua Amino Acid Co., Ltd................
CP Kelco (Shandong) Biological Company Limited...... 45.65
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Disclosure and Public Comment
Commerce intends to disclose the calculations performed for these
preliminary results of review within five days of the date of
publication of this notice in accordance with 19 CFR 351.224(b). Case
briefs or other written comments may be submitted to the Assistant
Secretary for Enforcement and Compliance no later than 30 days after
the publication of these preliminary results of review, unless the
Secretary alters the time limit.\8\ Rebuttal briefs, limited to
responding to issues raised in case briefs, may be submitted no later
than five days after the deadline for case briefs.\9\ Pursuant to 19
CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or
rebuttal briefs in this review are encouraged to submit with each
argument: (1) A statement of the issue; (2) a brief summary of the
argument; and (3) a table of authorities.
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\8\ See 19 CFR 351.309(c).
\9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Unless otherwise extended, Commerce intends to issue the final
results of this administrative review, which will include the results
of our analysis of the issues raised in the case briefs, within 120
days of publication of these preliminary results in the Federal
Register, pursuant to section 751(a)(3)(A) of the Act.
Assessment Rates
Upon issuance of the final results of review, Commerce will
determine, and CBP shall assess, antidumping duties on all appropriate
entries covered by this review.\10\ Commerce intends to issue
appropriate assessment instructions to CBP 15 days after the
publication of the final results of this review. We will calculate
importer-specific assessment rates equal to the ratio of the total
amount of dumping calculated for examined sales with a particular
importer to the total entered value of the sales in accordance with 19
CFR 351.212(b)(1).\11\ Where either the respondent's ad valorem
weighted-average dumping margin is zero or de minimis, or an importer-
specific ad valorem assessment rate is zero or de minimis,\12\ we will
instruct CBP to liquidate the appropriate entries without regard to
antidumping duties.
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\10\ See 19 CFR 351.212(b)(1).
\11\ We applied the assessment rate calculation method adopted
in Antidumping Proceedings: Calculation of the Weighted-Average
Dumping Margin and Assessment Rate in Certain Antidumping
Proceedings: Final Modification, 77 FR 8101 (February 14, 2012).
\12\ See 19 CFR 351.106(c)(2).
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For the respondents that were not selected for individual
examination in this administrative review, but which qualified for a
separate rate, the assessment rate will be based on the weighted-
average dumping margin(s) assigned to the respondent(s), as
appropriate, in the final results of this review.\13\
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\13\ See Drawn Stainless Steel Sinks from the People's Republic
of China: Preliminary Results of the Antidumping Duty Administrative
Review and Preliminary Determination of No Shipments: 2014-2015, 81
FR 29528 (May 12, 2016) and accompanying Issues and Decision
Memorandum at 10-11; unchanged in Drawn Stainless Steel Sinks from
the People's Republic of China: Final Results of Antidumping Duty
Administrative Review; Final Determination of No Shipments; 2014-
2015, 81 FR 54042 (August 15, 2016).
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For entries that were not reported in the U.S. sales databases
submitted by the companies individually examined during this review,
Commerce will
[[Page 26815]]
instruct CBP to liquidate such entries at the China-wide rate. In
addition, if we continue to find that Shanghai Smart, Jianlong, and IMJ
had no shipments of subject merchandise during the POR, any suspended
entries of subject merchandise from either Shanghai Smart, Jianlong,
and IMJ will be liquidated at the China-wide rate.\14\
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\14\ For a full discussion of this practice, see NME AD
Assessment.
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Cash Deposit Requirements
The following cash deposit requirements will be effective for all
shipments of xanthan gum from China entered, or withdrawn from
warehouse, for consumption on or after the date of publication of the
notice of the final results of this administrative review, as provided
for by section 751(a)(2)(C) of the Act: (1) For the companies listed
above that have a separate rate, the cash deposit rate will be that
rate established in the final results of this review (except, if the
rate is zero or de minimis, then a cash deposit rate of zero will be
required); (2) for previously investigated or reviewed China and non-
China exporters not listed above that received a separate rate in a
prior segment of this proceeding, the cash deposit rate will continue
to be the existing exporter-specific rate; (3) for all China exporters
of subject merchandise that have not been found to be entitled to a
separate rate, the cash deposit rate will be the rate for the China-
wide entity, which is 154.07 percent; and (4) for all non-China
exporters of subject merchandise that have not received their own rate,
the cash deposit rate will be the rate applicable to China exporter(s)
that supplied that non-China exporter. These deposit requirements, when
imposed, shall remain in effect until further notice.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) to file a certificate
regarding the reimbursement of antidumping and/or countervailing duties
prior to liquidation of the relevant entries during this review period.
Failure to comply with this requirement could result in Commerce's
presumption that reimbursement of antidumping and/or countervailing
duties occurred and the subsequent assessment of double antidumping
duties.
Notification to Interested Parties
We are issuing and publishing these preliminary results of review
in accordance with sections 751(a)(l) and 777(i)(l) of the Act and 19
CFR 351.213.
Dated: June 4, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Review
IV. Extension of the Preliminary Results
V. Scope of the Order
VI. Selection of Respondents
VII. Preliminary Determination of No Shipments
VIII. Single Entity Treatment
IX. Discussion of the Methodology
A. Non-Market Economy Country
B. Separate Rates
C. Separate Rate Analysis
1. Wholly Foreign-Owned Applicant
2. Joint Ventures Between Chinese and Foreign Companies or
Wholly Chinese-Owned Companies
a. Absence of De Jure Control
b. Absence of De Facto Control
3. Companies Not Receiving a Separate Rate
D. Dumping Margin for the Separate Rate Companies Not
Individually Examined
E. Surrogate Country
1. Same Level of Economic Development
2. Significant Producers of Identical or Comparable Merchandise
3. Data Availability
F. Date of Sale
G. Comparisons to Normal Value
1. Determination of Comparison Method
2. Results of the Differential Pricing Analysis
H. U.S. Price
1. Export Price
2. Constructed Export Price
3. Value-Added Tax
I. Normal Value
1. Factor Valuations
a. Direct and Packing Materials
b. Energy
c. Labor
d. Movement Services
e. Financial Ratios
J. Currency Conversion
X. Recommendation
[FR Doc. 2019-12149 Filed 6-7-19; 8:45 am]
BILLING CODE 3510-DS-P