[Federal Register Volume 88, Number 148 (Thursday, August 3, 2023)]
[Notices]
[Pages 51286-51289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16582]
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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; 2021-2022
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 made sales of subject merchandise at less than
normal value, and that two companies (Beijing Rodia Auto Sport Ltd. and
Zamp Inc. dba Z Sports) had no shipments of subject merchandise during
the period of review (POR) July 1, 2021, through June 30, 2022. In
addition, we are rescinding this review with respect to Shandong Hiking
International Commerce Group Co., Ltd. (Shandong Hiking). Interested
parties are invited to comment on these preliminary results.
DATES: Applicable August 3, 2023.
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, 2022, 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 6, 2022.\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 and Join Annual Inquiry
List, 87 FR 39461 (July 1, 2022).
\2\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 87 FR 54463 (September 6, 2022) (Initiation
Notice).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of the Ninth 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, 2023, Commerce extended the deadline for these
preliminary results to July 28, 2023.\4\
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\4\ See Memorandum, ``Extension of Deadline for Preliminary
Results of Antidumping Duty Administrative Review,'' dated March 3,
2023.
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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.
Preliminary Determination of No Shipments
On September 22, 2022, Beijing Rodia Auto Sport Ltd. (Beijing
Rodia) and Zamp Inc. dba Z Sports (Z Sports), on September 23, 2022,
Shanghai Smart Chemicals Co. Ltd. (Shanghai Smart), and on October 6,
2022, Deosen Biochemical Ltd. and Deosen USA, Inc. (Deosen
Biochemical), respectively, filed timely certifications that they had
no exports, shipments, sales, or entries of subject merchandise to the
United States during the POR.\5\ Based on information obtained from
U.S. Customs and Border Protection (CBP) and on Beijing Rodia's, Z
Sports', and Shanghai Smart's no shipment certifications, Commerce
preliminarily determines that Beijing Rodia, Z Sports, and Shanghai
Smart had no shipments of subject merchandise during the POR.\6\
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\5\ See Beijing Rodia's Letter, ``Beijing Rodia Auto Sport Ltd.
Notice of No Sales,'' dated September 22, 2022; Z Sports' Letter,
``Zamp Inc. dba Z Sports Notice of No Sales,'' dated September 22,
2022; Shanghai Smart's Letter, ``No Shipment Certification,'' dated
September 23, 2022; and Deosen Biochemical's Letter, ``No Shipment
Certifications of Deosen Biochemical Ltd. and Deosen USA, Inc.,''
dated October 6, 2022.
\6\ See Memorandum, ``Xanthan Gum from the People's Republic of
China (A-570-985, A-122-985),'' dated April 4, 2023 (Zamp Inc. dba Z
Sports); see also Memorandum, ``Xanthan Gum from the People's
Republic of China (A-570-985, A-122-985),'' dated April 4, 2023
(Beijing Rodia Auto Sport Ltd.) and Memorandum, ``No Shipment
Inquiry for Shanghai Smart Chemicals Co. Ltd. during the period 07/
01/2021 through 06/30/2022,'' dated June 7, 2023.
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However, Commerce preliminarily determines that Deosen Biochemical
had reviewable transactions during the POR.\7\ For additional
information
[[Page 51287]]
regarding this determination, see the Preliminary Decision Memorandum.
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\7\ Id.; see also 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, 84
FR 26813 (June 10, 2019), and accompanying Preliminary Decision
Memorandum (PDM) at 6 (citing Memorandum, ``Deosen Biochemical Ltd.
and Deosen Biochemical (Ordos) Ltd. Affiliation and Single Entity
Status,'' dated June 4, 2019, unchanged in Xanthan Gum from the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review and Final Determination of No Shipments; 2017-
2018, 84 FR 64831 (November 25, 2019)).
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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
Beijing Rodia, Z Sports, and 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 September 22, 2022, Gum Products
International, Inc. (Gum Products) timely withdrew its request for
administrative review of Shandong Hiking International Commerce Group
Co., Ltd. (Shandong Hiking).\9\ Because no other party requested a
review of Shandong Hiking, consistent with 19 CFR 351.213(d)(1),
Commerce is rescinding this review, in part, with respect to Shandong
Hiking.
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\9\ See Gum Products' Letter, ``Xanthan Gum from the People's
Republic of China, A-570-985: Withdrawal of Request for
Administrative Review,'' dated September 22, 2022.
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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
Commerce preliminarily determines that three non-individually
examined companies are eligible for separate rates in this
administrative review.\10\ The Act and Commerce's regulations do not
address the establishment of a separate rate to be applied to companies
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 separate-rate
respondents which Commerce did not examine 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 calculated for individually-examined respondents,
excluding dumping margins that are zero, de minimis, or based entirely
on facts available. For the preliminary results of this review,
Commerce determined the estimated dumping margins for Fufeng and Meihua
to be 2.91 percent and 36.92 percent, respectively. As explained in the
Preliminary Decision Memorandum, we are preliminarily assigning a rate
of 4.76 percent to the three non-examined respondents: Jianlong
Biotechnology Co., Ltd. (formerly, Inner Mongolia Jianlong Biochemical
Co., Ltd); Deosen Biochemical (Ordos) Ltd./Deosen Biochemical Ltd.; and
CP Kelco (Shandong) Biological Company Limited, which qualify for a
separate rate in this review, consistent with Commerce's practice and
section 735(c)(5)(A) of the Act.
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\10\ See Preliminary Decision Memorandum at the ``Separate Rate
Determination'' section for more details.
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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 Beijing Rodia, Z Sports, and Shanghai Smart, for which
we preliminarily find no shipments, and Shandong Hiking, 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 A.H.A. International Co., Ltd., East
Chemsources Ltd., Foodchem Biotech Co., Ltd., Greenhealth International
Co., Ltd. (Hong Kong), Guangzhou Zio Chemical Co., Ltd., Hangzhou
Yuanjia Chemical Co., Ltd., Hebei Xinhe Biochemical Co., Ltd., H&H
International Forwarders Co., Nanotech Solutions SDN BHD, Powertrans
Freight Systems, Inc., Qingdao Yalai Chemical Co., Ltd., Shanghai
Tianjia Biochemical Co., Ltd., Shanxi Reliance Chemicals Co., Ltd., The
TNN Development Ltd., The TNN Development USA Inc., Unionchem Corp.
Ltd., Wanping Bio Chem Co., Ltd., and Weifang Hongyuan Chemical Co.,
Ltd. to be part of the China-wide entity because they did not file
separate rate applications or certifications. For additional
information, see the Preliminary Decision Memorandum.
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\13\ See Initiation Notice, 87 FR at 54464 (``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, 2021, through June 30, 2022:
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Weighted-average
Exporter dumping margin
(percent)
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Neimenggu Fufeng Biotechnologies Co., Ltd. (aka 2.91
Inner Mongolia Fufeng Biotechnologies Co., Ltd.)/
Shandong Fufeng Fermentation Co., Ltd./Xinjiang
Fufeng Biotechnologies Co., Ltd....................
Meihua Group International Trading (Hong Kong) 36.92
Limited/Langfang Meihua Biotechnology Co., Ltd./
Xinjiang Meihua Amino Acid Co., Ltd................
[[Page 51288]]
Jianlong Biotechnology Co., Ltd. (formerly, Inner 4.76
Mongolia Jianlong Biochemical Co., Ltd)............
Deosen Biochemical (Ordos) Ltd./Deosen Biochemical 4.76
Ltd................................................
CP Kelco (Shandong) Biological Company Limited...... 4.76
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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 PDM, 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 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
[[Page 51289]]
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 28, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Administrative Review
V. Preliminary Determination of No Shipments
VI. Single Entity Treatment
VII. Discussion of Methodology
VIII. Currency Conversion
IX. Recommendation
[FR Doc. 2023-16582 Filed 8-2-23; 8:45 am]
BILLING CODE 3510-DS-P