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
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Issuing agencies
Abstract
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.
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<title>Federal Register, Volume 87 Issue 150 (Friday, August 5, 2022)</title>
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[Federal Register Volume 87, Number 150 (Friday, August 5, 2022)]
[Notices]
[Pages 47970-47973]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete version of the Preliminary
Decision Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>. 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]]
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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
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</html>This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.