[Federal Register Volume 86, Number 148 (Thursday, August 5, 2021)]
[Notices]
[Pages 42781-42784]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16727]


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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, Partial 
Rescission of the Antidumping Duty Administrative Review, and 
Preliminary Determination of No Shipments; 2019-2020

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that except for one respondent for which Commerce calculated a zero 
percent dumping margin, the eight respondents under review either made 
sales of subject merchandise at prices below normal value (NV) during 
the period of review (POR) July 1, 2019, through June 30, 2020, did not 
ship subject merchandise to the United States during the POR, or were 
not entitled to a separate rate. Also, Commerce is rescinding this 
review with respect to one company. We invite interested parties to 
comment on these preliminary results.

DATES: Applicable August 5, 2021.

FOR FURTHER INFORMATION CONTACT: Kristen Ju or Abdul Alnoor, 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) 482-3699 and (202) 482-4554, 
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 
1, 2020, Commerce published in the Federal Register a notice of 
opportunity to request an administrative review of the antidumping duty 
(AD) order on xanthan gum from the People's Republic of China 
(China).\1\ Commerce published the notice of initiation of this 
administrative review on September 3, 2020.\2\ On March 5, 2021, 
Commerce extended the deadline for the preliminary results of this 
review by a total of 119 days, to July 30, 2021.\3\
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    \1\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity to Request Administrative 
Review, 85 FR 39531 (July 1, 2020).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 85 FR 54983 (September 3, 2020).
    \3\ See Memorandum, ``Xanthan Gum from the People's Republic of 
China: Extension of Deadline for Preliminary Results of the 2019-
2020 Antidumping Duty Administrative Review,'' dated March 5, 2021.
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    On October 26, 2020, Commerce selected two exporters to 
individually examine as mandatory respondents,\4\ Meihua,\5\ and 
Fufeng.\6\ During the course of this review, the mandatory respondents 
responded to Commerce's questionnaire and supplemental questionnaires, 
the petitioner (CP Kelco U.S., Inc.) commented on certain responses, 
and other companies for which Commerce initiated the review filed 
either no-shipment claims or applications or certifications for 
separate rates status with Commerce. For details regarding the events 
that occurred subsequent to the initiation of the review, see the 
Preliminary Decision Memorandum.
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    \4\ See Memorandum, ``Selection of Respondents for the 2019-2020 
Administrative Review of the Antidumping Duty Order on Xanthan Gum 
from the People's Republic of China,'' dated October 26, 2020.
    \5\ Meihua refers to a single entity, which includes Meihua 
Group International Trading (Hong Kong) Limited, Langfang Meihua 
Biotechnology Co., Ltd., and Xinjiang Meihua Amino Acid Co., Ltd. 
(collectively, Meihua). For additional information, see ``Decision 
Memorandum for the Preliminary Results of the Seventh Antidumping 
Duty Administrative Review of Xanthan Gum from the People's Republic 
of China,'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).
    \6\ Fufeng refers to a single entity, which includes Neimenggu 
Fufeng Biotechnologies Co., Ltd. (aka Inner Mongolia Fufeng 
Biotechnologies Co., Ltd.), Shandong Fufeng Fermentation Co., Ltd., 
and Xinjiang Fufeng Biotechnologies Co., Ltd. (collectively, 
Fufeng). For additional information, see the Preliminary Decision 
Memorandum.
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Scope of the Order

    The product covered by the order includes dry xanthan gum, whether 
or not coated or blended with other products. Xanthan gum is included 
in this order regardless of physical form, including, but not limited 
to, solutions, slurries, dry powders of any particle size, or unground 
fiber.
    Merchandise covered by the scope of the order is classified in the 
Harmonized Tariff Schedule of the United States at subheading 
3913.90.20. This tariff classification is provided for convenience and 
customs purposes; however, the written description of the scope is 
dispositive.
    A full description of the scope of the order is contained in the 
Preliminary Decision Memorandum.

[[Page 42782]]

Preliminary Determination of No Shipments

    On September 28, 2020, and October 2, 2020, Shanghai Smart 
Chemicals Co., Ltd. (Shanghai Smart) and Deosen Biochemical Ltd. 
(Deosen Biochemical), respectively, timely filed certifications that 
they did not export or sell subject merchandise to the United States 
during the POR and that there were no entries of their subject 
merchandise into the United States during the POR. Based on an analysis 
of information from U.S. Customs and Border Protection (CBP) and 
Shanghai Smart's no shipment certification, Commerce preliminarily 
determines that Shanghai Smart did not have shipments of subject 
merchandise to the United States during the POR.\7\
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    \7\ See Memorandum, ``Antidumping Duty Administrative Review of 
Xanthan Gum from the People's Republic of China: Automated 
Commercial System Shipment Query,'' dated September 23, 2020 (CBP 
Data); see also ``Xanthan Gum from China exported by Shanghai Smart 
Chemicals Co. Ltd. during the period 07/01/2019 through 06/30/
2020,'' dated April 22, 2021.
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    However, Commerce preliminarily determines that Deosen Biochemical 
had reviewable transactions during the POR.\8\ For additional 
information regarding this determination, see the Preliminary Decision 
Memorandum.
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    \8\ See CBP Data.
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    Consistent with Commerce's practice in non-market economy (NME) 
cases, we are not rescinding this administrative review with respect to 
Shanghai Smart, but intend to complete the review and issue appropriate 
instructions to CBP based on the final results of the review.\9\
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    \9\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694 (October 24, 2011); and the 
``Assessment Rates'' section, below.
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Partial Rescission of Administrative Review

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if the party or parties 
that requested a review withdraw their request(s) within 90 days of the 
publication date of the notice of initiation of the requested review in 
the Federal Register. In December 2020, parties timely withdrew their 
requests for an AD administrative review of CP Kelco (Shandong) 
Biological Company Limited (CP Kelco Shandong).\10\ Because all 
requests for reviews of CP Kelco Shandong were timely withdrawn, in 
accordance with 19 CFR 351.213(d)(1), Commerce is rescinding this 
review of the AD order on xanthan gum from China with respect to CP 
Kelco Shandong.
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    \10\ See CP Kelco Shandong's Letter, ``Xanthan Gum from the 
People's Republic of China: CP Kelco (Shandong) Biological Company 
Limited's Withdrawal of Request for Administrative Review,'' dated 
December 1, 2020; Deosen Biochemical and Deosen Biochemical (Ordos) 
Ltd. (collectively, Deosen) submitted a timely withdrawal of its 
review request, however, because the petitioner did not withdraw its 
request for review of Deosen, Commerce is continuing its review of 
Deosen.
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Use of Adverse Facts Available

    Pursuant to section 776(a) and (b) of the Act, Commerce has 
preliminarily relied upon facts otherwise available, with adverse 
inferences, to determine the dumping margin assigned to Meihua. For 
further information, see ''Application of Facts Available With Adverse 
Inferences'' in the Preliminary Decision Memorandum; see also the 
Meihua Preliminary AFA Memorandum.\11\
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    \11\ See Memorandum, ``Preliminary Results Memorandum: 
Application of Adverse Facts Available to Meihua,'' dated 
concurrently with this memorandum (Meihua Preliminary AFA 
Memorandum) for Commerce's full analysis, which includes business 
proprietary information.
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(1)(B) of the Act. We calculated export prices and constructed 
export prices 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 the 
preliminary results of review, see the Preliminary Decision Memorandum, 
which is hereby adopted by 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. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. A list of sections in the 
Preliminary Decision Memorandum is in the appendix to this notice.

Separate Rates

    In all proceedings involving NME countries, Commerce maintains a 
rebuttable presumption that all companies within an NME are subject to 
government control and, thus, should be assessed a single weighted-
average dumping margin unless the company can affirmatively demonstrate 
an absence of government control, both in law (de jure) and in fact (de 
facto), with respect to its exports so that it is entitled to separate 
rate status.\12\ Commerce preliminarily determines that the information 
placed on the record by Jianlong Biotechnology Co. Ltd (formerly, Inner 
Mongolia Jianlong Biochemical Co., Ltd.) (Jianlong), Deosen Biochemical 
and Deosen Biochemical (Ordos) Ltd. (collectively, Deosen), Meihua, and 
Fufeng demonstrates that these companies are entitled to separate rate 
status.
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    \12\ See Notice of Final Determination of Sales at Less Than 
Fair Value, and Affirmative Critical Circumstances, In Part: Certain 
Lined Paper Products from the People's Republic of China, 71 FR 
53079, 53082 (September 8, 2006); Final Determination of Sales at 
Less Than Fair Value and Final Partial Affirmative Determination of 
Critical Circumstances: Diamond Sawblades and Parts Thereof from the 
People's Republic of China, 71 FR 29303, 29307 (May 22, 2006).
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    However, Commerce preliminarily determines that A.H.A. 
International Co., Ltd., Hebei Xinhe Biochemical Co., Ltd., Greenhealth 
International Co., Ltd. (Hong Kong), and Nanotech Solutions SDN BHD did 
not demonstrate their eligibility for separate rates status because 
they did not file a separate rate application or separate rate 
certification with Commerce. Therefore, we are preliminarily treating 
A.H.A. International Co., Ltd., Hebei Xinhe Biochemical Co., Ltd., 
Greenhealth International Co., Ltd. (Hong Kong), and Nanotech Solutions 
SDN BHD as part of the China-wide entity. Because no party requested a 
review of the China-wide entity, the entity is not under review and the 
entity's rate (i.e., 154.07 percent) is not subject to change in this 
review. For additional information, see the Preliminary Decision 
Memorandum.

Dumping Margins for Separate Rate Companies

    The statute and Commerce's regulations do not identify the dumping 
margin 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 
determining the dumping margin for respondents that are not 
individually examined 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 dumping margins that are zero, de 
minimis, or based entirely on facts available. Where the dumping 
margins for individually examined respondents are all zero, de minimis, 
or

[[Page 42783]]

based entirely on facts available, section 735(c)(5)(B) of the Act 
provides that Commerce may use ``any reasonable method to establish the 
estimated all-others rate for exporters and producers not individually 
investigated, including averaging the estimated weighted average 
dumping margins determined for the exporters and producers individually 
investigated.''
    We preliminarily calculated a zero percent dumping margin for one 
of the mandatory respondents in this review, Fufeng, and we 
preliminarily based the other mandatory respondent's, Meihua's, dumping 
margin on total AFA. Therefore, we assigned the separate rate 
respondents a dumping margin equal to the simple average of the dumping 
margins for Fufeng and Meihua, consistent with the guidance in section 
735(c)(5)(B) of the Act. For additional information, see the 
Preliminary Decision Memorandum.

Preliminary Results of Review

    We are assigning the following dumping margins to the firms listed 
below for the period July 1, 2019, through June 30, 2020:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                     Producers/exporters                        dumping
                                                                margin
                                                               (percent)
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Meihua Group International Trading (Hong Kong) Limited/           154.07
 Langfang Meihua Biotechnology Co., Ltd.,/Xinjiang Meihua
 Amino Acid Co., Ltd........................................
Neimenggu Fufeng Biotechnologies Co., Ltd. (aka Inner               0.00
 Mongolia Fufeng Biotechnologies Co., Ltd.)/Shandong Fufeng
 Fermentation Co., Ltd./Xinjiang Fufeng Biotechnologies Co.,
 Ltd........................................................
Review-Specific Average Rate Applicable to the Following
 Companies:
Jianlong Biotechnology Co., Ltd. (formerly, Inner Mongolia         77.04
 Jianlong Biochemical Co., Ltd).............................
Deosen Biochemical (Ordos) Ltd./Deosen Biochemical Ltd......       77.04
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Disclosure and Public Comment

    Commerce intends to disclose to parties to the proceeding the 
calculations performed for these preliminary results of review within 
five days of the date of publication of this notice in the Federal 
Register in accordance with 19 CFR 351.224(b). Interested parties may 
submit case briefs to Commerce no later than 30 days after the date of 
publication of these preliminary results of review in the Federal 
Register.\13\ Rebuttal briefs may be filed with Commerce no later than 
seven days after case briefs are due and may respond only to arguments 
raised in the case briefs.\14\ A table of contents, list of authorities 
used, and an executive summary of issues should accompany any briefs 
submitted to Commerce. The summary should be limited to five pages 
total, including footnotes.\15\
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    \13\ See 19 CFR 351.309(c)(ii).
    \14\ See 19 CFR 351.309(d).
    \15\ See 19 CFR 351.309(c)(2), (d)(2).
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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 in the Federal Register. 
Requests for a hearing should contain: (1) The requesting party's name, 
address, and telephone number; (2) the number of individuals associated 
with the requesting party that will attend the hearing and whether any 
of those individuals is a foreign national; and (3) a list of the 
issues the party intends to discuss at the hearing. Oral arguments at 
the hearing will be limited to issues raised in the briefs. If a 
request for a hearing is made, Commerce will announce the date and time 
of the hearing. Parties should confirm by telephone the date and time 
of the hearing two days before the scheduled hearing date.
    All submissions, with limited exceptions, must be filed 
electronically using ACCESS.\16\ An electronically filed document must 
be received successfully in its entirety by Commerce's electronic 
records system, ACCESS, by 5 p.m. Eastern Time (ET) on the due 
date.\16\ Note that Commerce has temporarily modified certain of its 
requirements for serving documents containing business proprietary 
information until further notice.\17\ Unless otherwise extended, 
Commerce intends to issue the final results of this administrative 
review, which will include the results of its analysis of issues raised 
in any briefs, within 120 days of publication of these preliminary 
results of review in the Federal Register, pursuant to section 
751(a)(3)(A) of the Act.
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    \16\ See 19 CFR 351.303 (for general filing requirements); 
Antidumping and Countervailing Duty Proceedings: Electronic Filing 
Procedures; Administrative Protective Order Procedures, 76 FR 39263 
(July 6, 2011).
    \17\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020); and Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10, 
2020).
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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.\18\ Commerce intends to issue 
appropriate assessment instructions to CBP 35 days after the 
publication of the final results of this review in the Federal 
Register. If a timely summons is filed at the U.S. Court of 
International Trade, the assessment instructions will direct CBP not to 
liquidate relevant entries until the time for parties to file a request 
for a statutory injunction has expired (i.e., within 90 days of 
publication).
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    \18\ See 19 CFR 351.212(b)(1).
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    We will calculate importer/customer-specific assessment rates equal 
to the ratio of the total amount of dumping calculated for examined 
sales to a particular importer/customer to the total entered value of 
those sales, in accordance with 19 CFR 351.212(b)(1).\19\ Where the 
respondent reported reliable entered values, Commerce intends to 
calculate importer/customer-specific ad valorem assessment rates by 
dividing the total amount of dumping calculated for all reviewed U.S. 
sales to the importer/customer by the total entered value of the 
merchandise sold to the importer/customer.\20\ Where the respondent did 
not report entered values, Commerce will calculate importer/customer-
specific assessment rates by dividing the total amount of dumping 
calculated for all reviewed U.S. sales to the importer/customer by the 
total quantity of those sales. Commerce will calculate an estimated

[[Page 42784]]

ad valorem importer/customer-specific assessment rate to determine 
whether the per-unit assessment rate is de minimis; however, Commerce 
will use the per-unit assessment rate where entered values were not 
reported.\21\ Where an importer/customer-specific ad valorem assessment 
rate is not zero or de minimis, Commerce will instruct CBP to collect 
the appropriate duties at the time of liquidation. Where either the 
respondent's ad valorem weighted-average dumping margin is zero or de 
minimis, or an importer/customer-specific ad valorem assessment rate is 
zero or de minimis,\22\ Commerce will instruct CBP to liquidate the 
appropriate entries without regard to antidumping duties.
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    \19\ 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).
    \20\ See 19 CFR 351.212(b)(1).
    \21\ Id.
    \22\ See 19 CFR 351.106(c)(2).
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    For respondents not individually examined in this administrative 
review that qualified for a separate rate, the assessment rate will be 
equal to the weighted-average dumping margin assigned to the respondent 
in the final results of this review.\23\
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    \23\ 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 Preliminary 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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    Pursuant to Commerce's refinement to its practice, for sales that 
were not reported in the U.S. sales database submitted by a respondent 
individually examined during this review, Commerce will instruct CBP to 
liquidate the entry of such merchandise at the dumping margin assigned 
to the China-wide entity.\24\ Additionally, where Commerce determines 
that an exporter under review had no shipments of subject merchandise 
to the United States during the POR, any suspended entries of subject 
merchandise that entered under that exporter's CBP case number during 
the POR will be liquidated at the dumping margin assigned to the China-
wide entity.
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    \24\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694 (October 24, 2011), for a full 
discussion of this practice.
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    In accordance with section 751(a)(2)(C) of the Act, the final 
results of this review shall be the basis for the assessment of 
antidumping duties on entries of merchandise covered by the final 
results of this review and for future deposits of estimated antidumping 
duties, where applicable.

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 in the 
Federal Register, as provided for by section 751(a)(2)(C) of the Act: 
(1) For companies granted a separate rate in the final results of this 
review, the cash deposit rate will be equal to the weighted-average 
dumping margin established in the final results of this review for the 
company (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 the Secretary's 
presumption that reimbursement of antidumping and/or countervailing 
duties occurred and the subsequent assessment of double antidumping 
duties.
    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 and 351.221(b)(4).

    Dated: July 30, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

List of Sections 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. Partial Rescission of Administrative Review
VII. Preliminary Determination of No Shipments
VIII. Selection of Respondents
IX. Application of Facts Available With Adverse Inferences
X. Single Entity Treatment
XI. Discussion of Methodology
XII. Recommendation

[FR Doc. 2021-16727 Filed 8-4-21; 8:45 am]
BILLING CODE 3510-DS-P