[Federal Register Volume 87, Number 150 (Friday, August 5, 2022)]
[Notices]
[Pages 47970-47973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16819]


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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; 2020-2021

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that the exporters subject to this antidumping duty (AD) 
administrative review did not make sales of subject merchandise at less 
than normal value, and that one company (Shanghai Smart Chemicals Co., 
Ltd. (Shanghai Smart)) had no shipments of subject merchandise during 
the period of review (POR) July 1, 2020, through June 30, 2021. In 
addition, we are rescinding this review with respect to CP Kelco 
(Shandong) Biological Company Limited (CP Kelco Shandong). Interested 
parties are invited to comment on these preliminary results.

DATES: Applicable August 5, 2022.

FOR FURTHER INFORMATION CONTACT: Reginald Anadio, 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) 482-3166.

SUPPLEMENTARY INFORMATION:

Background

    On July 1, 2021, Commerce published in the Federal Register a 
notice of opportunity to request an administrative review of the AD 
order on xanthan gum from the People's Republic of China (China).\1\ 
Commerce published the Initiation Notice of this administrative review 
on September 7, 2020.\2\ For details regarding the events that occurred 
subsequent to the initiation of the review, see the Preliminary 
Decision Memorandum.\3\ 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 https://access.trade.gov/public/FRNoticesListLayout.aspx. A list of topics 
discussed in the Preliminary Decision Memorandum is included in the 
appendix to this notice.
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    \1\ See Xanthan Gum from the People's Republic of China: Amended 
Final Determination of Sales at Less Than Fair Value and Antidumping 
Duty Order, 78 FR 43143 (July 19, 2013) (Order); and Antidumping or 
Countervailing Duty Order, Finding, or Suspended Investigation; 
Opportunity to Request Administrative Review, 86 FR 35065 (July 1, 
2021).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 86 FR 50034 (September 7, 2021) (Initiation 
Notice).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Eighth 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).
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    On March 3, 2022, Commerce extended the deadline for these 
preliminary results to July 29, 2022.\4\
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    \4\ See Memorandum, ``Xanthan Gum from the People's Republic of 
China: Extension of Deadline for Preliminary Results of the 2020-
2021 Antidumping Duty Administrative Review,'' dated March 3, 2022.

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[[Page 47971]]

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.

Preliminary Determination of No Shipments

    On September 13 and October 7, 2021, Shanghai Smart and Deosen 
Biochemical Ltd. (Deosen Biochemical), respectively, timely filed 
certifications that they had no exports, shipments, sales, or entries 
of subject merchandise to the United States during the POR.\5\ 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 had no shipments of 
subject merchandise during the POR.\6\
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    \5\ See Shanghai Smart's Letter, ``Administrative Review of 
Antidumping Order on Xanthan Gum from the People's Republic of 
China: No Shipment Certification,'' dated September 13, 2021; see 
also Deosen Biochemical's Letter, ``Xanthan Gum from the People's 
Republic of China: No Shipment Certification,'' dated October 7, 
2021.
    \6\ See Memorandum, ``Antidumping Duty Administrative Review of 
Xanthan Gum from the People's Republic of China: Automated 
Commercial System Shipment Query,'' dated September 8, 2021.
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    However, Commerce preliminarily determines that Deosen Biochemical 
had reviewable transactions during the POR.\7\ For additional 
information regarding this determination, see the Preliminary Decision 
Memorandum.
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    \7\ Id.
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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.\8\
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    \8\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694 (October 24, 2011); and the 
``Assessment Rates'' section, infra.
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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 all parties that 
requested a review withdraw their requests within 90 days of the 
publication date of the notice of initiation of the requested review in 
the Federal Register. On October 1, 2021, CP Kelco Shandong timely 
withdrew its request for administrative review.\9\ Because no other 
party requested a review of CP Kelco Shandong, consistent with 19 CFR 
351.213(d)(1), Commerce is rescinding this review, in part, with 
respect to CP Kelco Shandong.
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    \9\ 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 
October 1, 2021.
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(1)(B) of the Tariff Act of 1930, as amended (the Act). We 
calculated export price and constructed export price 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 normal value in 
accordance with section 773(c) of the Act. For a full description of 
the methodology underlying these preliminary results, see the 
Preliminary Decision Memorandum.

Separate Rates

    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 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.
    We preliminarily calculated a zero percent dumping margin for the 
sole mandatory respondent, Fufeng.\10\ Consistent with the guidance in 
section 735(c)(5)(B) of the Act, we assigned this rate to the non-
examined exporters that qualified for a separate rate. For additional 
information, see the Preliminary Decision Memorandum.
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    \10\ 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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China-Wide Entity

    Under Commerce's policy regarding the conditional review of the 
China-wide entity,\11\ the China-wide entity will not be under review 
unless a party specifically requests, or Commerce self-initiates, a 
review of the entity. Because no party requested a review of the China-
wide entity in this review, the entity is not under review, and the 
entity's rate (i.e., 154.07 percent) is not subject to change.\12\
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    \11\ See Antidumping Proceedings: Announcement of Change in 
Department Practice for Respondent Selection in Antidumping Duty 
Proceedings and Conditional Review of the Nonmarket Economy Entity 
in NME Antidumping Duty Proceedings, 78 FR 65963 (November 4, 2013).
    \12\ See Order, 78 FR at 43144.
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    Aside from Shanghai Smart, for which we preliminarily find no 
shipments, and CP Kelco Shandong, for which this review is being 
rescinded, Commerce considers all other companies for which a review 
was requested and did not demonstrate separate rate eligibility to be 
part of the China-wide entity.\13\ For these preliminary results, we 
consider Nanotech Solutions SDN BHD to be part of the China-wide entity 
because it did not file a separate rate application or certification. 
For additional information, see the Preliminary Decision Memorandum.
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    \13\ See Initiation Notice, 86 FR at 50035 (``All firms listed 
below that wish to qualify for separate rate status in the 
administrative reviews involving NME countries must complete, as 
appropriate, either a separate rate application or certification, as 
described below.'').
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Preliminary Results of Review

    We preliminarily determine that the following weighted-average 
dumping margins exist for the POR July 1, 2020, through June 30, 2021:

[[Page 47972]]



------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                          Exporter                              dumping
                                                                margin
                                                               (percent)
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Neimenggu Fufeng Biotechnologies Co., Ltd. (aka Inner               0.00
 Mongolia Fufeng Biotechnologies Co., Ltd.)/Shandong Fufeng
 Fermentation Co., Ltd./Xinjiang Fufeng Biotechnologies Co.,
 Ltd........................................................
Meihua Group International Trading (Hong Kong) Limited/             0.00
 Langfang Meihua Biotechnology Co., Ltd.,/Xinjiang Meihua
 Amino Acid Co., Ltd........................................
Jianlong Biotechnology Co., Ltd. (formerly, Inner Mongolia          0.00
 Jianlong Biochemical Co., Ltd).............................
Deosen Biochemical (Ordos) Ltd./Deosen Biochemical Ltd......        0.00
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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.\14\ Rebuttal briefs, limited to issues raised in the case 
briefs, may be filed with Commerce no later than seven days after the 
date for filing case briefs.\15\ Parties who submit case briefs or 
rebuttal briefs in this proceeding are requested to submit with each 
argument: (1) a statement of the issue, (2) a brief summary of the 
argument, and (3) a table of authorities.\16\ Executive summaries 
should be limited to five pages total, including footnotes.
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    \14\ See 19 CFR 351.309(c)(1)(ii).
    \15\ See 19 CFR 351.309(d).
    \16\ See 19 CFR 351.309(c)(2) and (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. 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. An electronically filed document must be 
received successfully in its entirety by Commerce's electronic records 
system, ACCESS, by 5:00 p.m. Eastern Time (ET) on the due date.\17\ 
Note that Commerce has temporarily modified certain of its requirements 
for serving documents containing business proprietary information until 
further notice.\18\ 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 in the 
Federal Register, pursuant to section 751(a)(3)(A) of the Act.
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    \17\ See 19 CFR 351.303 (for general filing requirements).
    \18\ See 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, ADs on all appropriate entries covered 
by this review.\19\ 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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    \19\ 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).\20\ 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.\21\ 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 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.\22\ 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,\23\ Commerce will instruct CBP to liquidate the 
appropriate entries without regard to ADs.
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    \20\ 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).
    \21\ See 19 CFR 351.212(b)(1).
    \22\ Id.
    \23\ 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.\24\
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    \24\ 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.\25\ Additionally, where Commerce

[[Page 47973]]

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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    \25\ For a full discussion of this practice, see Non-Market 
Economy Antidumping Proceedings: Assessment of Antidumping Duties, 
76 FR 65694 (October 24, 2011).
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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 ADs on 
entries of merchandise covered by the final results of this review and 
for future deposits of estimated ADs, 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 ADs.

Notification to Interested Parties

    Commerce is issuing and publishing these preliminary results in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 
351.213(d)(4) and 351.221(b)(4).

    Dated: July 29, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Sections in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Review
IV. Scope of the Order
V. Partial Rescission of Administrative Review
VI. Preliminary Determination of No Shipments
VII. Selection of Respondents
VIII. Single Entity Treatment
IX. Discussion of Methodology
X. Currency Conversion
XI. Recommendation

[FR Doc. 2022-16819 Filed 8-4-22; 8:45 am]
BILLING CODE 3510-DS-P