Notice2022-02559
Barium Chloride From India: Initiation of Countervailing Duty Investigation
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 8, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 87 Issue 26 (Tuesday, February 8, 2022)</title>
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[Federal Register Volume 87, Number 26 (Tuesday, February 8, 2022)]
[Notices]
[Pages 7094-7097]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-02559]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-909]
Barium Chloride From India: Initiation of Countervailing Duty
Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable February 1, 2022.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold at (202) 482-1221 and
Harrison Tanchuck at (202) 482-7301, AD/CVD Operations, Enforcement and
Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petition
On January 12, 2022, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
barium chloride from India, filed in proper form on behalf of Chemical
Products Corporation (the petitioner), a domestic producer of barium
chloride.\1\ The Petition was accompanied by an antidumping duty (AD)
petition concerning imports of barium chloride from India.\2\
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\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Barium Chloride from
India,'' dated January 12, 2022 (the Petition).
\2\ Id.
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On January 14 and 19, 2022, Commerce requested supplemental
information pertaining to certain aspects of the Petition.\3\ The
petitioner filed responses to these requests on January 19 and 24,
2022.\4\
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\3\ See Commerce's Letters, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Barium Chloride
from India: Supplemental Questions,'' dated January 14, 2022; and
``Petition for the Imposition of Countervailing Duties on Imports of
Barium Chloride from India: Supplemental Questions,'' dated January
19, 2021.
\4\ See Petitioner's Letters, ``Barium Chloride from India:
Response to Supplemental Questionnaire on Volume I of the Petition
(General Issues and Injury Information),'' dated January 19, 2022
(General Issues Supplement); and ``Barium Chloride from India:
Response to Supplemental Questions,'' dated January 24, 2022.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended
[[Page 7095]]
(the Act), the petitioner alleges that the Government of India (GOI) is
providing countervailable subsidies, within the meaning of sections 701
and 771(5) of the Act, to producers of barium chloride in India, and
that imports of such products are materially injuring, or threatening
material injury to, the barium chloride industry in the United States.
Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for
those alleged programs on which we are initiating a CVD investigation,
the Petition was accompanied by information reasonably available to the
petitioner supporting its allegations.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(C) of the Act. Commerce also finds that
the petitioner demonstrated sufficient industry support for the
initiation of the requested CVD investigation.\5\
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\5\ See ``Determination of Industry Support for the Petitions''
section, infra.
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Period of Investigation
Because the Petition was filed on January 12, 2022, the period of
investigation (POI) for this CVD investigation is January 1, 2021,
through December 31, 2021, pursuant to 19 CFR 351.204(b)(2).
Scope of the Investigation
The product covered by this investigation is barium chloride from
India. For a full description of the scope of this investigation, see
the appendix to this notice.
Comments on Scope of the Investigation
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\6\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information,\7\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaire, Commerce requests that all
interested parties submit scope comments by 5:00 p.m. Eastern Time (ET)
on February 22, 2022, which is the next business day after 20 calendar
days from the signature date of this notice.\8\ Any rebuttal comments,
which may include factual information, must be filed by 5:00 p.m. ET on
March 4, 2022, which is 10 calendar days from the initial comment
deadline.
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\6\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\7\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\8\ The deadline for comments falls on February 21, 2022, which
is a federal holiday. Commerce's practice dictates that where a
deadline falls on a weekend or federal holiday, the appropriate
deadline is the next business day (in this instance, February 22,
2022). See Notice of Clarification: Application of ``Next Business
Day'' Rule for Administrative Determination Deadlines Pursuant to
the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005)
(Notice of Clarification).
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Commerce requests that any factual information the parties consider
relevant to the scope of the investigations be submitted during this
time period. However, if a party subsequently finds that additional
factual information pertaining to the scope of the investigations may
be relevant, the party must contact Commerce and request permission to
submit the additional information. All such comments must be filed on
the records of each of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\9\ An electronically-filed document must be received
successfully in its entirety by the time and date on which it is due.
Note that Commerce has temporarily modified certain of its requirements
for serving documents containing business proprietary information,
until further notice.\10\
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\9\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at <a href="https://access.trade.gov/help.aspx">https://access.trade.gov/help.aspx</a> and a handbook
can be found at <a href="https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf">https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf</a>.
\10\ 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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Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the GOI of the receipt of the Petition and provided an
opportunity for consultations with respect to the Petition.\11\
Commerce held consultations with the GOI on January 27, 2022.\12\
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\11\ See Commerce's Letters, ``Countervailing Duty Petition on
Barium Chloride from India: Invitation for Consultations to Discuss
the Countervailing Duty Petition,'' dated January 13, 2022.
\12\ See Memorandum, ``Countervailing Duty Petition on Barium
Chloride from India: Consultations with Officials from the
Government of India,'' dated January 27, 2022.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\13\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\14\
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\13\ See section 771(10) of the Act.
\14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F. 2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses
[[Page 7096]]
with, the article subject to an investigation under this title.'' Thus,
the reference point from which the domestic like product analysis
begins is ``the article subject to an investigation'' (i.e., the class
or kind of merchandise to be investigated, which normally will be the
scope as defined in the petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\15\ Based on our analysis of the information
submitted on the record, we have determined that barium chloride, as
defined in the scope, constitutes a single domestic like product, and
we have analyzed industry support in terms of that domestic like
product.\16\
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\15\ See General Issues Supplement at 2-3 and Exhibit GEN-3.
\16\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Countervailing Duty Investigation Initiation Checklist: Barium
Chloride from India (CVD Initiation Checklist) at Attachment II,
Analysis of Industry Support for the Antidumping and Countervailing
Duty Petitions Covering Barium Chloride from India (Attachment II).
This checklist is dated concurrently with this notice and on file
electronically via ACCESS.
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In determining whether the petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own production of the domestic like product in 2021.\17\ The petitioner
provided information from the ITC's fifth sunset review of barium
chloride from the People's Republic of China, published in June 2021,
in which the ITC found that Chemical Products Corporation was the only
domestic producer of barium chloride; therefore, the Petition is
supported by 100 percent of the U.S. industry.\18\ We relied on data
provided by the petitioner for purposes of measuring industry
support.\19\
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\17\ See General Issues Supplement at 4.
\18\ See Petition at Volume I at I-2 through I-4; see also
General Issues Supplement at 3-4 and Exhibit GEN-3 (containing
Barium Chloride from China, Inv. No. 731-TA-149 (Fifth Review),
USITC Pub. 5203 (June 2021) at 7).
\19\ See Petition at Volume I at I-2 through I-4; see also
General Issues Supplement at 3-4 and Exhibit GEN-3. For further
discussion, see Attachment II of the CVD Initiation Checklist.
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Our review of the data provided in the Petition, the General Issues
Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition. First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product, and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\20\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
702(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\21\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 702(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition.\22\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.\23\
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\20\ See Attachment II of the CVD Initiation Checklist; see also
section 702(c)(4)(D) of the Act.
\21\ See Attachment II of the CVD Initiation Checklist.
\22\ Id.
\23\ Id.
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Injury Test
Because India is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from India materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioner
alleges that subject imports exceed the negligibility threshold
provided for under section 771(24)(A) of the Act.\24\
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\24\ See Petition at Volume I at I-10 and Exhibit I-9; see also
General Issues Supplement at 5 and Exhibit GEN-4.
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The petitioner contends that the industry's injured condition is
illustrated by significant volume of subject imports; increasing market
share of subject imports; underselling and price depression and/or
suppression; inventory levels; declines in production, shipments, and
revenues; and lost sales and revenues.\25\ We assessed the allegations
and supporting evidence regarding material injury, threat of material
injury, causation, as well as negligibility, and we have determined
that these allegations are properly supported by adequate evidence, and
meet the statutory requirements for initiation.\26\
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\25\ See Petition at Volume I at I-7 through I-30 and Exhibits
I-5 and I-8 through I-12; see also General Issues Supplement at 2-3,
5 and Exhibits GEN-2 and GEN-4.
\26\ See CVD Initiation Checklist at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Barium
Chloride from India (Attachment III).
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Initiation of CVD Investigations
Based upon the examination of the Petition and supplemental
responses, we find that they meet the requirements of section 702 of
the Act. Therefore, we are initiating a CVD investigation to determine
whether imports of barium chloride from India benefit from
countervailable subsidies conferred by the GOI. In accordance with
section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determinations no later than 65
days after the date of these initiations.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on 42 of the 43
alleged programs. For a full discussion of the basis for our decision
to initiate on each program, see India CVD Initiation Checklist. A
public version of the initiation checklist for this investigation is
available on ACCESS.
Respondent Selection
In the Petition, the petitioner named 22 companies in India as
producers/exporters of barium chloride.\27\ Commerce intends to follow
its standard practice in CVD investigations and calculate company-
specific subsidy rates in this investigation.
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\27\ See Volume I of the Petition at I-7 and Exhibit I-4.
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In the event Commerce determines that the number of Indian
producers or exporters is large such that Commerce cannot individually
examine each company based upon its resources, where appropriate,
Commerce intends to select mandatory respondents based on U.S. Customs
and Border Protection (CBP) data for U.S. imports of barium chloride
from India during the POI under the appropriate Harmonized Tariff
Schedule of the United States subheading listed in the ``Scope of the
Investigation,'' in the appendix.
[[Page 7097]]
On January 26, 2022, Commerce released CBP data for U.S. imports of
barium chloride from India under administrative protective order (APO)
to all parties with access to information protected by APO and
indicated that interested parties wishing to comment on the CBP data
and/or respondent selection must do so within three business days of
the publication date of the notice of initiation of this
investigation.\28\ Comments on CBP data and respondent selection must
be filed electronically using ACCESS. An electronically-filed document
must be received successfully, in its entirety, via ACCESS no later
than 5:00 p.m. ET on the specified deadline. Commerce will not accept
rebuttal comments regarding the CBP data or respondent selection. We
intend to select respondents within 20 days of publication of this
notice.
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\28\ See Memorandum, ``Countervailing Duty and Antidumping Duty
Petitions on Granular Polytetrafluoroethylene Resin from India:
Release of Customs Data from U.S. Customs and Border Protection,''
dated February 12, 2021.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on Commerce's website at <a href="http://enforcement.trade.gov/apo">http://enforcement.trade.gov/apo</a>.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the GOI via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the Petition to each
exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of barium chloride from India are materially
injuring, or threatening material injury to, a U.S. industry.\29\ A
negative ITC determination will result in the investigation being
terminated.\30\ Otherwise, this CVD investigation will proceed
according to the statutory and regulatory time limits.
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\29\ See section 703(a) of the Act.
\30\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \31\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\32\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in this investigation.
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\31\ See 19 CFR 351.301(b).
\32\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301. For submissions that are due
from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, Commerce may elect to specify a different
time limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, Commerce will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, stand-alone submission; Commerce will grant untimely filed
requests for the extension of time limits only in limited cases where
we determine, based on 19 CFR 351.302, that extraordinary circumstances
exist. Parties should review Commerce's regulations concerning factual
information prior to submitting factual information in this
investigation.\33\
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\33\ See 19 CFR 351.301; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013), available at <a href="https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm</a>.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\34\
Parties must use the certification formats provided in 19 CFR
351.303(g).\35\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\34\ See section 782(b) of the Act.
\35\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
<a href="http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf">http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf</a>.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in these investigations should ensure that they meet the requirements
of 19 CFR 351.103(d) (e.g., by filing the required letters of
appearance).
This notice is issued and published pursuant to sections 702 and
777(i) of the Act, and 19 CFR 351.203(c).
Dated: February 1, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The merchandise covered by this investigation is barium
chloride, a chemical compound having the formulas BaCl<INF>2</INF>
or BaCl<INF>2</INF>-2H<INF>2</INF>O, currently classifiable under
subheading 2827.39.4500 of the Harmonized Tariff Schedule of the
United States (HTSUS). Although the HTSUS subheading is provided for
convenience and customs purposes, the written description of the
scope of this investigation is dispositive.
[FR Doc. 2022-02559 Filed 2-7-22; 8:45 am]
BILLING CODE 3510-DS-P
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