Notice2024-09271
2,4-Dichlorophenoxyacetic Acid From the People's Republic of China and India: Initiation of Less-Than-Fair-Value Investigations
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
April 30, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 89 Issue 84 (Tuesday, April 30, 2024)</title>
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[Federal Register Volume 89, Number 84 (Tuesday, April 30, 2024)]
[Notices]
[Pages 34200-34205]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09271]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-160, A-533-922]
2,4-Dichlorophenoxyacetic Acid From the People's Republic of
China and India: Initiation of Less-Than-Fair-Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable April 23, 2024.
FOR FURTHER INFORMATION CONTACT: Alexander Cipolla (the People's
Republic of China (China)) at (202) 482-4956; and Melissa Porpotage
(India) at (202) 482-1413; AD/CVD Operations, Enforcement and
Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On March 14, 2024, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of 2,4-
dichlorophenoxyacetic acid (2,4-D) from China and India filed in proper
form on behalf of Corteva Agriscience LLC (the petitioner) \1\ a
domestic producer of 2,4-D. These AD Petitions were accompanied by
countervailing duty (CVD) petitions concerning imports of 2,4-D from
China and India.\2\ On April 3, 2024, after considering comments
regarding industry support, Commerce extended the initiation deadline
by 20 days to further examine the issue of industry support, because it
was not clear from the Petitions whether the industry support criteria
had been met.\3\
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\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties,'' dated March 14, 2024 (the
Petitions).
\2\ Id.
\3\ See Notice of Extension of the Deadline for Determining the
Adequacy of the Antidumping and Countervailing Duty Petitions: 2,4-
Dichlorophenoxyacetic Acid from the People's Republic of China and
India, 89 FR 24431, 24432 (April 8, 2024).
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Between March 18 and April 4, 2024, Commerce requested supplemental
information pertaining to certain aspects of the Petitions in separate
supplemental questionnaires.\4\ The petitioner filed responses to the
supplemental questionnaires between March 20 and April 9, 2024.\5\
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\4\ See Commerce's Letter, ``Supplemental Questions,'' dated
March 18, 2024 (General Issues Questionnaire); see also Commerce's
Letters, ``Supplemental Questions,'' dated March 18, 2024 (Country-
Specific Supplemental Questionnaires); Memoranda, ``Phone Call,''
dated March 26, 2024 (March 26 Memorandum), and April 4, 2024,
respectively; and Commerce's Letter, ``Supplemental Questions
Pertaining to Industry Support,'' dated April 4, 2024 (Industry
Support Supplemental Questionnaire).
\5\ See Petitioner's Letter, ``General Issues and Injury
Questionnaire Response,'' dated March 20, 2024 (First General Issues
Supplement); see also Petitioner's Letter, ``China Antidumping
Supplemental Questionnaire Response,'' dated March 20, 2024;
Petitioner's Letter, ``India Antidumping Supplemental Questionnaire
Response,'' dated March 20, 2024; Petitioner's Letter, ``Scope
Supplemental Questionnaire Response,'' dated March 27, 2024 (Second
General Issues Supplement); and Petitioner's Letter, ``Supplemental
Questions on Industry Support,'' dated April 9, 2024 (Industry
Support Supplement).
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of 2,4-D from
China and India are being, or are likely to be, sold in the United
States at less than fair value (LTFV) within the meaning of section 731
of the Act, and that imports of such products are materially injuring,
or threatening material injury to, the 2,4-D industry in the United
States. Consistent with section 732(b)(1) of the Act, the Petitions
were accompanied by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the Petitions 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 LTFV investigations.\6\
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\6\ See ``Determination of Industry Support for the Petitions''
section, infra.
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Periods of Investigation
Because the Petitions were filed on March 14, 2024, pursuant to 19
CFR 351.204(b)(1), the period of investigation (POI) for the India LTFV
investigation is January 1, 2023, through December 31, 2023. Because
China is a non-market economy (NME) country, pursuant to 19 CFR
351.204(b)(1), the POI for the China LTFV investigation is July 1,
2023, through December 31, 2023.
Scope of the Investigations
The product covered by these investigations is 2,4-D from China and
India. For a full description of the scope of these investigations, see
the appendix to this notice.
Comments on the Scope of the Investigations
Between March 18 and April 4, 2024, Commerce requested information
and clarification from the petitioner regarding the proposed scope to
ensure
[[Page 34201]]
that the scope language in the Petitions is an accurate reflection of
the products for which the domestic industry is seeking relief.\7\
Between March 20 and April 9, 2024, the petitioner provided
clarifications and/or revised the scope.\8\ The description of
merchandise covered by these investigations, as described in the
appendix to this notice, reflects these clarifications.
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\7\ See General Issues Questionnaire; see also March 26
Memorandum; and Industry Support Supplemental Questionnaire.
\8\ See First General Issues Supplement at 1-3 and Exhibit S-I-
4; see also Second General Issues Supplement at 1-2; and Industry
Support Supplement at 1.
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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).\9\ Commerce will consider all scope
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,\10\ all such factual information should be limited to
public information. To facilitate preparation of its questionnaires,
Commerce requests that scope comments be submitted by 5:00 p.m. Eastern
Time (ET) on May 13, 2024, which is 20 calendar days from the signature
date of this notice.\11\ Any rebuttal comments, which may include
factual information, must be filed by 5:00 p.m. ET on May 23, 2024,
which is 10 calendar days from the initial comment deadline.
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\9\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR
351.312.
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\11\ See 19 CFR 351.303(b)(1).
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Commerce requests that any factual information that parties
consider relevant to the scope of these investigations be submitted
during that 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 scope
comments must be filed simultaneously on the records of the concurrent
LTFV and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\12\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
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\12\ 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_on_Electronic_Filing_Procedures.pdf">https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf</a>.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of 2,4-D to be reported in
response to Commerce's AD questionnaires. This information will be used
to identify the key physical characteristics of the subject merchandise
in order to report the relevant factors of production (FOP) or cost of
production (COP) accurately, as well as to develop appropriate product
comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) general product
characteristics; and (2) product comparison criteria. We note that it
is not always appropriate to use all product characteristics as product
comparison criteria. We base product comparison criteria on meaningful
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe 2,4-D, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, Commerce attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all product
characteristics comments must be filed by 5:00 p.m. ET on May 13, 2024,
which is 20 calendar days from the signature date of this notice.\13\
Any rebuttal comments must be filed by 5:00 p.m. ET on May 23, 2024,
which is 10 calendar days from the initial comment deadline. All
comments and submissions to Commerce must be filed electronically using
ACCESS, as explained above, on the record of each of the LTFV
investigations.
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\13\ See 19 CFR 351.303(b)(1).
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Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(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 732(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 U.S. 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,\14\ 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.\15\
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\14\ See section 771(10) of the Act.
\15\ 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 with, the article subject to an
[[Page 34202]]
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 investigations.\16\ Based on our analysis of the information
submitted on the record, we have determined that 2,4-D, as defined in
the scope, constitutes a single domestic like product, and we have
analyzed industry support in terms of that domestic like product.\17\
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\16\ See Petitions at Volume I (pages 11-16 and Exhibits I-5, I-
6 and I-9); see also First General Issues Supplement at 3-6.
\17\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Checklists, ``Antidumping Duty Investigation Initiation
Checklists: 2,4-Dichlorophenoxyacetic Acid from the People's
Republic of China and India,'' dated concurrently with, and hereby
adopted by, this notice (Country-Specific AD Initiation Checklists)
at Attachment II, Analysis of Industry Support for the Antidumping
and Countervailing Duty Petitions Covering 2,4-Dichlorophenoxyacetic
Acid from the People's Republic of China and India (Attachment II).
These checklists are on file electronically via ACCESS.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions, and supplements thereto, with reference to
the domestic like product as defined in the ``Scope of the
Investigations,'' in the appendix to this notice. To establish industry
support, the petitioner provided its own production of the domestic
like product in 2023 and compared this to the estimated total
production of the domestic like product for the entire domestic
industry.\18\ We relied on data provided by the petitioner for purposes
of measuring industry support.\19\
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\18\ See Industry Support Supplement at 1-6 and Exhibits S-I-21,
S-I-23, S-I-24, and S-I-29.
\19\ Id. at 1-6 and Exhibits S-I-21, S-I-23, S-I-24, and S-I-29.
For further discussion, see Attachment II of the Country-Specific AD
Initiation Checklists.
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On March 29, 2024, we received comments on industry support from
Nufarm Americas Inc. (Nufarm), a U.S. importer and converter of 2,4-
D.\20\ On April 2, 2024, the petitioner responded to the letter from
Nufarm.\21\ On April 11, 2024, we received comments on industry support
from Drexel Chemical Company (Drexel), a U.S. importer and converter of
2,4-D.\22\
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\20\ See Nufarm's Letter, ``Nufarm's Request for the Department
to Defer Initiation for Lack of Standing and Poll the Industry,''
dated March 29, 2024.
\21\ See Petitioner's Letter, ``Petitioner's Response to
Industry Comments,'' dated April 2, 2024 (Petitioner's Response).
\22\ See Drexel's Letter, ``Information Submitted by Drexel
Chemical Company to Rebut, Clarify or Correct Corteva's April 9,
2024 Response to Supplemental Questions on Industry Support,'' dated
April 11, 2024.
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Our review of the data provided in the Petitions, the First General
Issues Supplement, the Second General Issues Supplement, the letters
from Nufarm and Drexel, the Petitioner's Response, the Industry Support
Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petitions.\23\ First, the Petitions 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).\24\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
732(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petitions account for at least 25 percent of the total
production of the domestic like product.\25\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 732(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petitions 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 Petitions.\26\ Accordingly, Commerce determines that the Petitions
were filed on behalf of the domestic industry within the meaning of
section 732(b)(1) of the Act.\27\
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\23\ See Attachment II of the Country-Specific AD Initiation
Checklists.
\24\ Id.; see also section 732(c)(4)(D) of the Act.
\25\ See Attachment II of the Country-Specific AD Initiation
Checklists.
\26\ Id.
\27\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\28\
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\28\ See Petitions at Volume I (page 17 and Exhibit I-11); see
also First General Issues Supplement at 6 and Exhibit S-I-16.
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The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
underselling and price depression and/or suppression; declining
profitability; declines in volume of production and capacity
utilization; lost sales and revenues; lost market share; and the
magnitude of the alleged dumping margins.\29\ 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.\30\
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\29\ See Petitions at Volume I (pages 17-37 and Exhibits I-10
through I-19); see also First General Issues Supplement at 6 and
Exhibits S-I-16 and S-I-17.
\30\ See Country-Specific AD Initiation Checklists at Attachment
III, Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering 2,4-Dichlorophenoxyacetic Acid from the People's Republic
of China and India.
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Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate LTFV investigations
of imports of 2,4-D from China and India. The sources of data for the
deductions and adjustments relating to U.S. price and normal value (NV)
are discussed in greater detail in the Country-Specific AD Initiation
Checklists.
U.S. Price
For China and India, the petitioner based export price (EP) on the
average unit values derived from official import statistics for imports
of 2,4-D from these countries into the United States during the
POI.\31\ For each country, the petitioner made certain adjustments to
U.S. price to calculate a net ex-factory U.S. price, where
applicable.\32\
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\31\ See Country-Specific AD Initiation Checklists.
\32\ Id.
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Normal Value <SUP>33</SUP>
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\33\ In accordance with section 773(b)(2) of the Act, for the
India investigation, Commerce will request information necessary to
calculate the constructed value (CV) and COP to determine whether
there are reasonable grounds to believe or suspect that sales of the
foreign like product have been made at prices that represent less
than the COP of the product.
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For India, the petitioner stated that it was unable to obtain home
market or third country pricing information for 2,4-D to use as a basis
for NV.\34\ Therefore, for India, the petitioner calculated NV based on
CV.\35\ For further discussion of CV, see the section
[[Page 34203]]
``Normal Value Based on Constructed Value,'' below.
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\34\ See India AD Initiation Checklist.
\35\ Id.
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Commerce considers China to be an NME country.\36\ In accordance
with section 771(18)(C)(i) of the Act, any determination that a foreign
country is an NME country shall remain in effect until revoked by
Commerce. Therefore, we continue to treat China as an NME country for
purposes of the initiation of these investigations. Accordingly, we
base NV on FOPs valued in a surrogate market economy country, in
accordance with section 773(c) of the Act.
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\36\ See, e.g., Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Preliminary Affirmative
Determination of Sales at Less Than Fair Value and Preliminary
Affirmative Determination of Critical Circumstances, 88 FR 15372
(March 13, 2023), and accompanying Preliminary Decision Memorandum
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Final Affirmative Determination
of Sales at Less-Than-Fair Value and Final Affirmative Determination
of Critical Circumstances, 88 FR 34485 (May 30, 2023); and Certain
Frozen Fish Fillets from the Socialist Republic of Vietnam: Final
Results, and Final Results of No Shipments of the Antidumping Duty
Administrative Review; 2016-2017, 84 FR 18007 (April 29, 2019).
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The petitioner claims that T[uuml]rkiye is an appropriate surrogate
country for China because it is a market economy that is at a level of
economic development comparable to that of China and is a significant
producer of comparable merchandise.\37\ The petitioner provided
publicly available information from T[uuml]rkiye to value all FOPs.\38\
Based on the information provided by the petitioner, we believe it is
appropriate to use T[uuml]rkiye as a surrogate country for China to
value all FOPs for initiation purposes.
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\37\ See China AD Initiation Checklist.
\38\ Id.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
Because information regarding the volume of inputs consumed by
Chinese producers/exporters was not reasonably available, the
petitioner used product-specific consumption rates from a U.S. producer
of 2,4-D as a surrogate to value Chinese manufacturers' FOPs.\39\
Additionally, the petitioner calculated factory overhead, selling,
general, and administrative expenses (SG&A), and profit based on the
experience of a Turkish producer of comparable merchandise for
China.\40\
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\39\ See China AD Initiation Checklist.
\40\ Id.
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Normal Value Based on Constructed Value
As noted above for India, the petitioner stated that it was unable
to obtain home market or third-country prices for 2,4-D to use as a
basis for NV. Therefore, for India, the petitioner calculated NV based
on CV.\41\
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\41\ See India AD Initiation Checklist.
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Pursuant to section 773(e) of the Act, the petitioner calculated CV
as the sum of the cost of manufacturing, SG&A, financial expenses, and
profit.\42\ In calculating the cost of manufacturing, the petitioner
relied on the production experience and input consumption rates of a
U.S. producer of 2,4-D, valued using publicly available information
applicable to India.\43\ In calculating SG&A, financial expenses, and
profit ratios, the petitioner relied on the 2022-2023 financial
statements of a producer of identical merchandise in India.\44\
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\42\ Id.
\43\ Id.
\44\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of 2,4-D from China and India are being, or are
likely to be, sold in the United States at LTFV. Based on comparisons
of EP to NV in accordance with sections 772 and 773 of the Act, the
estimated dumping margins for 2,4-D for the countries covered by this
initiation are as follows: (1) China--127.21 percent; and (2) India--
36.41 percent.\45\
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\45\ See Country-Specific AD Initiation Checklists.
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Initiation of LTFV Investigations
Based upon the examination of the Petitions and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating LTFV investigations to determine
whether imports of 2,4-D from China and India are being, or are likely
to be, sold in the United States at LTFV. In accordance with section
733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we
will make our preliminary determinations no later than 140 days after
the date of these initiations.
Respondent Selection
India
In the Petitions, the petitioner identified four companies in India
as producers/exporters of 2,4-D.\46\ Following standard practice in
LTFV investigations involving market economy countries, in the event
Commerce determines that the number of companies is large and it cannot
individually examine each company based upon Commerce's resources,
where appropriate, Commerce intends to select mandatory respondents
based on U.S. Customs and Border Protection (CBP) data for imports
under the appropriate Harmonized Tariff Schedule of the United States
(HTSUS) subheading(s) listed in the ``Scope of the Investigations,'' in
the appendix.
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\46\ See Petitions at Volume I (page 9 and Exhibit I-2); see
also First General Issues Supplement at Exhibit S-I-2.
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On March 29, 2024, Commerce released CBP data on imports of 2,4-D
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 CBP data and/or respondent
selection must do so within three business days of the publication date
of the notice of initiation of these investigations.\47\ Comments must
be filed electronically using ACCESS. An electronically filed document
must be received successfully in its entirety via ACCESS by 5:00 p.m.
ET on the specified deadline. Commerce will not accept rebuttal
comments regarding the CBP data or respondent selection.
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\47\ See Memorandum, ``Release of Data from U.S. Customs and
Border Protection,'' dated March 29, 2024.
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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="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
China
In the Petitions, the petitioner named 12 companies in China as
producers and/or exporters of 2,4-D.\48\ Our standard practice for
respondent selection in AD investigations involving NME countries is to
select respondents based on quantity and value (Q&V) questionnaires in
cases where it has determined that the number of companies is large and
it cannot individually examine each company based upon its resources.
Therefore, considering the number of producers and/or exporters
identified in the Petitions, Commerce will solicit Q&V information that
can serve as a basis for
[[Page 34204]]
selecting exporters for individual examination in the event that
Commerce determines that the number is large and decides to limit the
number of respondents individually examined pursuant to section
777A(c)(2) of the Act. Because there are 12 Chinese producers and/or
exporters identified in the Petitions, Commerce has determined that it
will issue Q&V questionnaires to each potential respondent for which
the petitioner has provided a complete address.
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\48\ See Petitions at Volume I (page 9 and Exhibit I-2); see
also First General Issues Supplement at 1 and Exhibit S-I-2.
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Commerce will post the Q&V questionnaire along with filing
instructions on Commerce's website at <a href="https://www.trade.gov/ec-adcvd-case-announcements">https://www.trade.gov/ec-adcvd-case-announcements</a>. Producers/exporters of 2,4-D from China that do not
receive Q&V questionnaires may still submit a response to the Q&V
questionnaire and can obtain a copy of the Q&V questionnaire from
Commerce's website. Responses to the Q&V questionnaire must be
submitted by the relevant Chinese producers/exporters no later than
5:00 p.m. ET on May 7, 2024, which is two weeks from the signature date
of this notice. All Q&V questionnaire responses must be filed
electronically via ACCESS. An electronically filed document must be
received successfully, in its entirety, by ACCESS no later than 5:00
p.m. ET on the deadline noted above.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). As stated above, instructions
for filing such applications may be found on Commerce's website at
<a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
Separate Rates
In order to obtain separate rate status in an NME investigation,
exporters and producers must submit a separate rate application. The
specific requirements for submitting a separate rate application in an
NME investigation are outlined in detail in the application itself,
which is available on Commerce's website at <a href="https://access.trade.gov/Resources/nme/nme-sep-rate.html">https://access.trade.gov/Resources/nme/nme-sep-rate.html</a>. The separate rate application will be
due 30 days after publication of this initiation notice. Exporters and
producers must file a timely separate rate application if they want to
be considered for individual examination. Exporters and producers who
submit a separate rate application and have been selected as mandatory
respondents will be eligible for consideration for separate rate status
only if they respond to all parts of Commerce's AD questionnaire as
mandatory respondents. Commerce requires that companies from China
submit a response both to the Q&V questionnaire and to the separate
rate application by the respective deadlines to receive consideration
for separate rate status. Companies not filing a timely Q&V
questionnaire response will not receive separate rate consideration.
Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that {Commerce{time} will now
assign in its NME investigation will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period
of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well as the pool of non-investigated firms receiving the {weighted
average{time} of the individually calculated rates. This practice
is referred to as the application of ``combination rates'' because
such rates apply to specific combinations of exporters and one or
more producers. The cash-deposit rate assigned to an exporter will
apply only to merchandise both exported by the firm in question and
produced by a firm that supplied the exporter during the period of
investigation.\49\
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\49\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigation involving NME Countries,'' (April
5, 2005) at 6 (emphasis added), available on Commerce's website at
<a href="https://access.trade.gov/Resources/policy/bull05-1.pdf">https://access.trade.gov/Resources/policy/bull05-1.pdf</a>.
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Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the governments of China and India via ACCESS. To the
extent practicable, we will attempt to provide a copy of the public
version of the Petitions to each exporter named in the Petitions, as
provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of our initiation, as required by
section 732(d) of the Act.
Preliminary Determinations by the ITC
Typically, the ITC will preliminarily determine, within 45 days
after the date on which the Petitions were filed, whether there is a
reasonable indication that subject imports are materially injuring, or
threatening material injury to, a U.S. industry.\50\ Here, due to
Commerce's extension of the initiation decision deadline to further
examine the issue of industry support for the Petitions, the ITC has
extended the time for issuance of its preliminary determination for
imports of 2,4-D from China and India. At this time, the ITC has
indicated it will make its preliminary determination on or about May
20, 2024. A negative ITC determination for either country will result
in the investigation being terminated with respect to that country.\51\
Otherwise, these LTFV investigations will proceed according to
statutory and regulatory time limits.
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\50\ See section 733(a) of the Act.
\51\ 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 \52\ 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.\53\ 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 these investigations.
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\52\ See 19 CFR 351.301(b).
\53\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation
Section 773(e) of the Act addresses the concept of particular
market situation (PMS) for purposes of CV, stating that ``if a
particular market situation exists such that the cost of materials and
fabrication or other processing of any kind does not accurately reflect
the cost of production in the ordinary course of trade, the
administering authority may use another calculation methodology under
this subtitle or any other calculation methodology.'' When an
interested
[[Page 34205]]
party submits a PMS allegation pursuant to section 773(e) of the Act
(i.e., a cost-based PMS allegation), Commerce will respond to such a
submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds
that a cost-based PMS exists under section 773(e) of the Act, then it
will modify its margin calculations appropriately.
Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set
a deadline for the submission of cost-based PMS allegations and
supporting factual information. However, in order to administer section
773(e) of the Act, Commerce must receive PMS allegations and supporting
factual information with enough time to consider the submission. Thus,
should an interested party wish to submit a cost-based PMS allegation
and supporting new factual information pursuant to section 773(e) of
the Act, it must do so no later than 20 days after submission of a
respondent's initial section D questionnaire response.
We note that a PMS allegation filed pursuant to sections
773(a)(1)(B)(ii)(III) or 773(a)(1)(C)(iii) of the Act (i.e., a sales-
based PMS allegation) must be filed within 10 days of submission of a
respondent's initial section B questionnaire response, in accordance
with 19 CFR 301(c)(2)(i) and 19 CFR 351.404(c)(2).
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, or as otherwise specified by
Commerce.\54\ 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.\55\ 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, we
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, standalone submission; under limited circumstances we will
grant untimely filed requests for the extension of time limits, where
we determine, based on 19 CFR 351.302, that extraordinary circumstances
exist. Parties should review Commerce's regulations concerning the
extension of time limits and the Time Limits Final Rule prior to
submitting factual information in these investigations.\56\
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\54\ See 19 CFR 351.301; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final
Rule), 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>.
\55\ See Time Limits Final Rule at 57792.
\56\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
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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.\57\
Parties must use the certification formats provided in 19 CFR
351.303(g).\58\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\57\ See section 782(b) of the Act.
\58\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional
information regarding the Final Rule is available at <a href="https://access.trade.gov/Resources/filing/index.html">https://access.trade.gov/Resources/filing/index.html</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 letter of
appearance). Note that Commerce has modified certain of its
requirements for serving documents containing business proprietary
information and has made additional clarifications and corrections to
its AD/CVD regulations.\59\
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\59\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
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This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act and 19 CFR 351.203(c).
Dated: April 23, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix
Scope of the Investigations
The merchandise covered by these investigations is 2,4-
dichlorophenoxyacetic acid (2,4-D) and its derivative products,
including salt and ester forms of 2,4-D. 2,4-D has the Chemical
Abstracts Service (CAS) registry number of 94-75-7 and the chemical
formula C<INF>8</INF>H<INF>6</INF> Cl<INF>2</INF>O<INF>3</INF>.
Salt and ester forms of 2,4-D include 2,4-D sodium salt (CAS
2702-72-9), 2,4-D diethanolamine salt (CAS 5742-19-8), 2,4-D
dimethyl amine salt (CAS 2008-39-1), 2,4-D isopropylamine salt (CAS
5742-17-6), 2,4-D tri-isopropanolamine salt (CAS 3234180-3), 2,4-D
choline salt (CAS 1048373-72-3), 2,4-D butoxyethyl ester (CAS 1929-
733), 2,4-D 2-ethylhexylester (CAS 1928-43-4), and 2,4-D
isopropylester (CAS 94-11-1). All 2,4-D, as well as the salt and
ester forms of 2,4-D, is covered by the scope irrespective of
purity, particle size, or physical form.
The conversion of a 2,4-D salt or ester from 2,4-D acid, or the
formulation of nonsubject merchandise with the subject 2,4-D, its
salts, and its esters in the country of manufacture or in a third
country does not remove the subject 2,4-D, its salts, or its esters
from the scope. For any such formulations, only the 2,4-D, 2,4-D
salt, and 2,4-D ester components of the mixture is covered by the
scope of the investigations. Formulations of 2,4-D are products that
are registered for end-use applications with the Environmental
Protection Agency and contain a dispersion agent.
The country of origin of any 2,4-D derivative salt or ester is
determined by the country in which the underlying 2,4-D acid is
produced. 2,4-D, its salts, and its esters are classified under
Harmonized Tariff Schedule of the United States (HTSUS) subheading
2918.99.2010. Subject merchandise, including the abovementioned
formulations, may also be classified under HTSUS subheadings
2922.12.0001, 2921.11.0000, 2921.19.6195, 2922.19.9690,
3808.93.0050, and 3808.93.1400. The HTSUS subheadings and CAS
registry numbers are provided for convenience and customs purposes.
The written description of the scope of the investigations is
dispositive.
[FR Doc. 2024-09271 Filed 4-29-24; 8:45 am]
BILLING CODE 3510-DS-P
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