[Federal Register Volume 89, Number 222 (Monday, November 18, 2024)]
[Notices]
[Pages 90671-90673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26770]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-173]
Vanillin from the People's Republic of China: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination with Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of vanillin from the People's Republic of China
(China). The period of investigation is January 1, 2023, through
December 31, 2023. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable November 18, 2024.
FOR FURTHER INFORMATION CONTACT: Jeff Pedersen, 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) 482-2769.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this countervailing duty (CVD)
investigation on July 1, 2024.\1\ On July 22, 2024, Commerce tolled
certain deadlines in this administrative proceeding by seven days.\2\
On August 13, 2024, Commerce postponed the preliminary determination of
this investigation until
[[Page 90672]]
November 12, 2024.\3\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\4\
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\1\ See Vanillin from the People's Republic of China: Initiation
of Countervailing Duty Investigation, 89 FR 54421 (July 1, 2024)
(Initiation Notice).
\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\3\ See Vanillin from the People's Republic of China:
Postponement of Preliminary Determination in the Countervailing Duty
Investigation, 89 FR 65845 (August 13, 2024).
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Countervailing Duty Investigation
of Vanillin from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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A list of topics discussed in the Preliminary Decision Memorandum
is included as Appendix II 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. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
Scope of the Investigation
The product covered by this investigation is vanillin from China.
For a complete description of the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e., scope).\6\ No interested
party commented on the scope of the investigation as it appeared in the
Initiation Notice.
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\6\ See Initiation Notice, 89 FR at 54421-22.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\7\
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\7\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\8\
For further information, see the ``Use of Facts Otherwise Available and
Adverse Inferences'' section in the Preliminary Decision Memorandum.
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\8\ See sections 776(a) and (b) of the Act.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final CVD determination in this
investigation with the final determination in the companion antidumping
duty (AD) investigation of vanillin from China based on a request made
by Solvay USA LLC (the petitioner).\9\ Consequently, the final CVD
determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
March 24, 2025, unless postponed.
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\9\ See Petitioner's Letter, ``Request to Align Final
Countervailing Duty Determination with the Companion Antidumping
Duty Final Determination,'' dated October 17, 2024.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
rates that are zero, de minimis, or based entirely under section 776 of
the Act.
In this investigation, Commerce preliminarily calculated an
individual estimated countervailable subsidy rate for Jiaxing Guihua
Chemical Import and Export Co., Ltd. (Guihua), the only individually
examined exporter/producer in this investigation. Because the only
individually calculated rate is not zero, de minimis, or based entirely
on facts otherwise available, the estimated weighted-average rate
calculated for Guihua is the rate preliminarily assigned to all other
producers and exporters, pursuant to section 705(c)(5)(A)(i) of the
Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Jiaxing Guihua Chemical Import and Export Co., Ltd.\10\. 27.33
All Others.............................................. 27.33
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Disclosure
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\10\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily finds Guihua to be cross owned with the
following companies: Jiaxing Zhongua Chemical Co. Ltd., Zhejiang
Zonghua Flavor Co., Ltd., and Jiaxing Zhonghua Thermal Power
Development Co., Ltd.
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Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement or, if there is no public
announcement, within five days of the date of publication of this
notice in the Federal Register, accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in the
case briefs, may be
[[Page 90673]]
filed not later than five days after the date for filing case
briefs.\11\ Interested parties who submit case briefs or rebuttal
briefs in this proceeding must submit: (1) a table of contents listing
each issue; and (2) a table of authorities.\12\
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\11\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\12\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their briefs that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\13\
Further, we request that interested parties limit their public
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public executive summaries as
the basis of the comment summaries included in the issues and decision
memorandum that will accompany the final determination in this
investigation. We request that interested parties include footnotes for
relevant citations in the executive summary of each issue. Note that
Commerce has amended certain of its requirements pertaining to the
service of documents in 19 CFR 351.303(f).\14\
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\13\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\14\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, which is limited to covering 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. Hearing requests should contain 1) the
requestor's name, address, and telephone number; 2) the number of
participants and whether any participant is a foreign national; and 3)
a list of the issues to be discussed. Oral presentations at the hearing
will be limited to issues raised in the briefs. If a request for a
hearing is made, parties will be notified of the time and date for the
hearing.\15\ Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
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\15\ See 19 CFR 351.310(d).
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All submissions, including case and rebuttal briefs, as well as
hearing requests, should be filed using ACCESS. An electronically-filed
document must be received successfully in its entirety by ACCESS by
5:00 p.m. Eastern Time on the established deadline.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the ITC of its determination. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of vanillin from China are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: November 12, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by the investigation is vanillin, with
the molecular formula C8H8O3 or
C9H10O3. For purposes of this
investigation, vanillin consists of natural vanillin, synthetic
vanillin, bio-sourced synthetic vanillin (biovanillin) (each also
known as 4-Hydroxy-3-methoxybenzaldehyde), and ethylvanillin (also
known as 3-Ethoxy-4-hydroxybenzaldehyde). Vanillin covered by this
investigation is a chemical compound with the Chemical Abstracts
Service (CAS) number 121-33-5 or 121-32-4. Vanillin is covered by
the investigation regardless of whether it is in a crystalline
powder or crystal form. Vanillin is covered by the scope of the
investigation, irrespective of purity, particle size, or physical
form.
Merchandise subject to the investigation is specified within the
Harmonized Tariff Schedule of the United States (HTSUS) under
subheading 2912.41.0000 and 2912.42.0000. The HTSUS subheadings and
CAS registry numbers are provided for convenience and customs
purposes only. The written description of the merchandise covered by
the investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Alignment
VI. Injury Test
VII. Analysis of China's Financial System
VIII. Diversification of China's Economy
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Subsidies Valuation
XI. Benchmarks
XII. Analysis of Programs
XIII. Recommendation
[FR Doc. 2024-26770 Filed 11-15-24; 8:45 am]
BILLING CODE 3510-DS-P