[Federal Register Volume 90, Number 108 (Friday, June 6, 2025)]
[Notices]
[Pages 24095-24097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-10351]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-173]
Vanillin From the People's Republic of China: Final Affirmative
Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of vanillin from the People's Republic of China (China). This
investigation covers one mandatory respondent, Jiaxing Guihua Imp. &
Exp. Co., Ltd. (Guihua), and the period of investigation is January 1,
2023, through December 31, 2023.
DATES: Applicable June 6, 2025.
FOR FURTHER INFORMATION CONTACT: Thomas Martin, 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) 482-3936.
SUPPLEMENTARY INFORMATION:
Background
On November 18, 2024, Commerce published in the Federal Register
its Preliminary Determination in the countervailing duty (CVD)
investigation of vanillin from China.\1\ Because Commerce aligned the
deadline for this final determination with the deadline for the final
determination in the less-than-fair-value investigation of vanillin
from China, the deadline for the final determination is now June 2,
2025.\2\
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\1\ See Vanillin from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping Duty
Determination, 89 FR 90671 (November 18, 2024) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum, as
corrected in Vanillin from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping Duty
Determination; Correction, 90 FR 8267 (January 28, 2025).
\2\ See Preliminary Determination, 89 FR at 90672; see also
Vanillin from the People's Republic of China: Postponement of
Preliminary Determination in the Countervailing Duty Investigation,
89 FR 65845 (August 13, 2024).
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For a complete description of the events that occurred since the
Preliminary Determination, see the Issues and Decision Memorandum.\3\
The
[[Page 24096]]
Issues and Decision Memorandum is a public document that 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 Issues and Decision Memorandum can
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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\3\ See Memorandum, ``Issues and Decisions Memorandum for the
Final 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 (Issues
and Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is vanillin from China.
For a complete description of the scope of the investigation, see
Appendix I.
Scope Comments
We received no comments from interested parties on the scope of the
investigation as it appeared in the Preliminary Determination.\4\
Therefore, we made no changes to the scope of the investigation from
that published in the Preliminary Determination for the final
determination.
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\4\ See Preliminary Determination, 89 FR at 59055 and Appendix
I.
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Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in December 2024, Commerce verified the information reported
by Guihua using its standard verification procedures, including an
examination of relevant documents provided at verification.
Analysis of Subsidy Programs and Comments Received
We have discussed the subsidy programs under investigation, and
addressed the issues raised in interested parties' case and rebuttal
briefs, in the Issues and Decision Memorandum. For a list of the issues
addressed in the Issues and Decision Memorandum, see Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs that Commerce found
countervailable, it determined that the program provided a subsidy,
i.e., determined there is a financial contribution by an ``authority,''
the financial contribution provided a benefit to the recipient, and the
subsidy is specific.\5\ For a full description of the methodology
underlying this final determination, see the Issues and Decision
Memorandum.
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\5\ 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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Changes Since the Preliminary Determination
Based on our review of the information on the record and comments
received from interested parties, we modified our calculations of the
benchmarks used for the Provision of Caustic Soda for less than
adequate remuneration (LTAR), Provision of Sulfuric Acid for LTAR, and
Provision of Hydrogen Peroxide for LTAR programs. For a discussion of
these changes, see the Issues and Decision Memorandum.
All-Others Rate
Section 705(c)(5)(A)(i) of the Act provides that in a final
determination, Commerce shall determine an estimated all-others rate
for companies not individually examined that is 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. Because we individually
examined only one company in this investigation, Guihua, and its
subsidy rate is not zero, de minimis, or based entirely on facts
otherwise available, we assigned Guihua's subsidy rate to all other
producers and exporters of vanillin in China, pursuant to section
705(c)(5)(A)(i) of the Act.
Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist for the period January 1, 2023,
through December 31, 2023:
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Subsidy rate
Company (percent ad
valorem)
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Jiaxing Guihua Imp. & Exp. Co., Ltd..................... 42.10
All Others.............................................. 42.10
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Disclosure
Commerce intends to disclose its calculations and analysis
performed in this final determination to parties to the proceeding
within five days of public announcement of the determination or, if
there is no public announcement, within five days of the date of
publication of this notice in the Federal Register, in accordance with
19 CFR 351.244(b).
Continuation of Suspension of Liquidation
As a result of the Preliminary Determination, and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
suspend liquidation of entries of subject merchandise as described in
Appendix I, entered, or withdrawn from warehouse, for consumption on or
after November 18, 2024, the date of publication of the Preliminary
Determination in the Federal Register.\6\ In accordance with section
703(d) of the Act, on March 18, 2025, Commerce instructed CBP to
discontinue the suspension of liquidation of all entries of subject
merchandise entered or withdrawn from warehouse, on or after March 18,
2025, but to continue the suspension of liquidation of all entries of
subject merchandise on or before March 17, 2025.
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\6\ See Preliminary Determination.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, Commerce will issue a CVD order,
reinstate the suspension of liquidation under section 706(a) of the
Act, and require a cash deposit of estimated countervailing duties for
entries of subject merchandise in the amounts indicated in the table
above. If the ITC determines that material injury, or threat of
material injury, does not exist, this proceeding will be terminated,
and all estimated countervailing duties deposited, or securities posted
as a result of the suspension of liquidation will be refunded or
cancelled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of vanillin
from China. Because Commerce's final determination is affirmative, in
accordance with section 705(b) of the Act, the ITC will determine,
within 45 days of this final determination, whether the domestic
industry in the United States is materially injured, or threatened with
material injury, by reason of U.S. imports of vanillin from China.
Commerce is making available to the ITC all non-privileged and non-
proprietary information related to this investigation. Commerce will
allow the ITC access to all privileged and business proprietary
information in its files, provided the ITC confirms that it will
[[Page 24097]]
not disclose such information, either publicly or under administrative
protective order (APO), without the written consent of the Assistant
Secretary for Enforcement and Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of the subject merchandise that are entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: June 2, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the 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 Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Changes Since the Preliminary Determination
VI. Analysis of the Programs
VII. Discussion of the Issues
Comment 1: Whether Commerce Used Appropriate Shipping Rates to
Calculate Benchmarks for Material Inputs
Comment 2: Whether Commerce Should Countervail the Export
Buyer's Credit and Export Seller's Credit Programs
Comment 3: Whether Commerce Inappropriately Applied Adverse
Facts Available (AFA) in Finding Specificity for the Electricity for
Less Than Adequate Remuneration (LTAR) Program
Comment 4: Whether Certain Individually-Owned Input Suppliers
are Government Authorities
VIII. Recommendation
[FR Doc. 2025-10351 Filed 6-5-25; 8:45 am]
BILLING CODE 3510-DS-P