Notice2024-10642
Monosodium Glutamate From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty Order
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
May 15, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from Ajinomoto Health & Nutrition North America, Inc. (AHN, a domestic interested party), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of monosodium glutamate (MSG) from Malaysia are circumventing the antidumping duty (AD) order on MSG from the People's Republic of China (China).
Full Text
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<title>Federal Register, Volume 89 Issue 95 (Wednesday, May 15, 2024)</title>
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[Federal Register Volume 89, Number 95 (Wednesday, May 15, 2024)]
[Notices]
[Pages 42425-42426]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-10642]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-992]
Monosodium Glutamate From the People's Republic of China:
Initiation of Circumvention Inquiry on the Antidumping Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Ajinomoto Health & Nutrition
North America, Inc. (AHN, a domestic interested party), the U.S.
Department of Commerce (Commerce) is initiating a country-wide
circumvention inquiry to determine whether imports of monosodium
glutamate (MSG) from Malaysia are circumventing the antidumping duty
(AD) order on MSG from the People's Republic of China (China).
DATES: Applicable May 15, 2024.
FOR FURTHER INFORMATION CONTACT: Jacob Saude, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230; telephone: (202) 482-0981.
SUPPLEMENTARY INFORMATION:
Background
On March 25, 2024, pursuant to section 781(b) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.226(c), AHN filed a
circumvention inquiry request alleging that MSG finished in Malaysia
using glutamic acid produced in China, and subsequently exported from
Malaysia to the United States is circumventing the AD order on MSG from
China \1\ and, accordingly, should be included within the scope of the
Order.\2\ On April 24, 2024, we extended the deadline to initiate this
circumvention inquiry in accordance with 19 CFR 351.226(d)(1).\3\
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\1\ See Monosodium Glutamate from the People's Republic of
China: Second Amended Final Determination of Sales at Less Than Fair
Value and Amended Antidumping Order, 80 FR 487 (January 6, 2015)
(Order).
\2\ See AHN's Letter, ``MSG from China: Circumvention Inquiry
Request,'' dated March 25, 2024 (Circumvention Inquiry Request).
\3\ See Memorandum, ``Extension of Time to Determine Whether to
Initiate Circumvention Inquiry,'' dated April 24, 2024.
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Scope of the Order
The product covered by this Order is MSG, whether or not blended or
in solution with other products. Merchandise covered by the scope of
this Order is currently classified in the Harmonized Tariff Schedule of
the United States (HTSUS) at subheading 2922.42.1000. Merchandise
subject to the Order may also enter under HTSUS subheadings
2922.42.5000, 2103.90.7200, 2103.90.7400, 2103.90.7800, 2103.90.8000,
and 2103.90.9091. The HTSUS subheadings are provided for convenience
and customs purposes; however, the written description of the scope is
dispositive. For a full description of the scope of the Order, see the
Initiation Checklist.\4\
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\4\ See Checklist, ``Malaysia Assembly Circumvention Initiation
Checklist,'' dated concurrently with, and hereby adopted by, this
notice (Initiation Checklist).
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Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers MSG finished in Malaysia using
glutamic acid produced in China and subsequently exported from Malaysia
to the United States.
Initiation of Circumvention Inquiry
Section 351.226(d) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
request for a circumvention inquiry allege ``that the elements
necessary for a circumvention determination under section 781 of the
Act exist'' and be ``accompanied by information reasonably available to
the interested party supporting these allegations.'' AHN allege
circumvention pursuant to section 781(b) of the Act (merchandise
completed or assembled in other foreign countries).
Section 781(b)(1) of the Act provides that Commerce may find
circumvention of an order when merchandise of the same class or kind
subject to the order is completed or assembled in a foreign country
other than the country to which the order applies. In conducting a
circumvention inquiry, under section 781(b)(1) of the Act, Commerce
relies on the following criteria: (A) merchandise imported into the
United States is of the same class or kind as any merchandise produced
in a foreign country that is the subject of an AD or countervailing
duty (CVD) order; (B) before importation into the United States, such
imported merchandise is completed or assembled in another foreign
country from merchandise which is subject to the order or is produced
in the foreign country that is subject to the order; (C) the process of
assembly or completion in the foreign country referred to in section
(B) is minor or insignificant; (D) the value of the merchandise
produced in the foreign country to which the AD or CVD order applies is
a significant portion of the total value of the merchandise exported to
the United States; and (E) the administering authority determines that
action is appropriate to prevent evasion of such order.
In determining whether the process of assembly or completion in a
foreign country is minor or insignificant under section 781(b)(1)(C) of
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A)
the level of investment in the foreign country; (B) the level of
research and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country; and (E) whether or not the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States. However, no single factor, by itself, controls Commerce's
[[Page 42426]]
determination of whether the process of assembly or completion in a
foreign country is minor or insignificant.\5\ Accordingly, it is
Commerce's practice to evaluate each of these five factors as they
exist in the foreign country, depending on the totality of the
circumstances of the particular circumvention inquiry.\6\
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\5\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994), at
893.
\6\ See Uncovered Innerspring Units from the People's Republic
of China: Final Affirmative Determination of Circumvention of the
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and
accompanying Issues and Decision Memorandum at 4.
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In addition, section 781(b)(3) of the Act sets forth additional
factors to consider in determining whether to include merchandise
assembled or completed in a foreign country within the scope of an AD
or CVD order. Specifically, Commerce shall take into account such
factors as: (A) the pattern of trade, including sourcing patterns; (B)
whether the manufacturer or exporter of the merchandise that was
shipped to the foreign country is affiliated with the person who, in
the foreign country, uses the merchandise to complete or assemble the
merchandise which is subsequently imported into the United States; and
(C) whether imports of the merchandise into the foreign country have
increased after the initiation of the investigation that resulted in
the issuance of such order.
Analysis
Based on our analysis of AHN's circumvention inquiry request, we
determine that AHN has satisfied the criteria under 19 CFR 351.226(c),
and thus, pursuant to 19 CFR 351.226(d)(1)(iii), we have accepted the
request and are initiating the requested circumvention inquiry of the
Order. For a full discussion of the basis for our decision to initiate
the requested circumvention inquiry, see the Initiation Checklist. As
explained in the Initiation Checklist, the information provided by AHN
warrants initiating this circumvention inquiry on a country-wide basis.
Commerce has taken this approach in prior circumvention inquiries,
where the facts warranted initiation on a country-wide basis.\7\
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\7\ See, e.g., Hydrofluorocarbon Blends from the People's
Republic of China: Initiation of Circumvention Inquiry on the
Antidumping Duty Order, 88 FR 74150 (October 30, 2023); see also
Hydrofluorocarbon Blends from the People's Republic of China:
Initiation of Circumvention Inquiries on the Antidumping Duty Order,
88 FR 43275 (July 7, 2023); Certain Corrosion-Resistant Steel
Products from the Republic of Korea and Taiwan: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders, 83 FR 37785 (August 2, 2018); Carbon Steel Butt-Weld
Pipe Fittings from the People's Republic of China: Initiation of
Anti-Circumvention Inquiry on the Antidumping Duty Order, 82 FR
40556, 40560 (August 25, 2017) (stating at initiation that Commerce
would evaluate the extent to which a country-wide finding applicable
to all exports might be warranted); and Certain Corrosion-Resistant
Steel Products from the People's Republic of China: Initiation of
Anti-Circumvention Inquiries on the Antidumping Duty and
Countervailing Duty Orders, 81 FR 79454, 79458 (November 14, 2016)
(stating at initiation that Commerce would evaluate the extent to
which a country-wide finding applicable to all exports might be
warranted).
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Consistent with the approach in the prior circumvention inquiries
that were initiated on a country-wide basis, Commerce intends to issue
questionnaires to solicit information from producers and exporters in
Malaysia concerning their shipments to the United States and the origin
of glutamic acid being further processed into MSG (i.e., the
merchandise subject to the Order).
Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and
Border Protection (CBP) data. Commerce intends to place the CBP data on
the record within five days of the publication of this initiation
notice. Comments regarding the CBP data and respondent selection should
be submitted within seven days after placement of the CBP data on the
record of the inquiry.
Commerce intends to establish a schedule for questionnaire
responses after respondent selection. A company's failure to completely
respond to Commerce's requests for information may result in the
application of partial or total facts available, pursuant to section
776(a) of the Act, which may include adverse inferences, pursuant to
section 776(b) of the Act.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce intends to notify CBP of
this initiation and direct CBP to continue the suspension of
liquidation of entries of products subject to this circumvention
inquiry that were already subject to the suspension of liquidation
under the Order and to apply the cash deposit rates that would be
applicable if the products were determined to be covered by the scope
of the Order. Should Commerce issue affirmative preliminary or final
circumvention determinations, Commerce will follow the suspension of
liquidation rules under 19 CFR 351.226(l)(2)-(4).
Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(b) of the Act,
Commerce determines that AHN's request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c). Accordingly, Commerce
is notifying all interested parties of the initiation of this
circumvention inquiry to determine whether MSG finished in Malaysia
using glutamic acid produced in China, and subsequently exported from
Malaysia to the United States is circumventing the Order. In addition,
we have included a description of the products that are the subject to
this inquiry and an explanation of Commerce's decision to initiate this
inquiry as provided in the accompanying Initiation Checklist.\8\ In
accordance with 19 CFR 351.226(e)(1), Commerce intends to issue its
preliminary circumvention determination no later than 150 days from the
date of publication of the notice of initiation of this circumvention
inquiry in the Federal Register.
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\8\ See Initiation Checklist at 4 and 6.
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This notice is published in accordance with section 781(b) of the
Act, and 19 CFR 351.226(d)(1)(iii).
Dated: May 9, 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.
[FR Doc. 2024-10642 Filed 5-14-24; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on May 15, 2024.
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