Notice2024-15683

Glycine From the People's Republic of China: Initiation of Changed Circumstances Review

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
July 17, 2024

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

In response to a request for a changed circumstances review (CCR) from Salvi Chemical Industries Limited (Salvi), the U.S. Department of Commerce (Commerce) is initiating a CCR of the antidumping duty (AD) order on glycine from the People's Republic of China (China).

Full Text

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<title>Federal Register, Volume 89 Issue 137 (Wednesday, July 17, 2024)</title>
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[Federal Register Volume 89, Number 137 (Wednesday, July 17, 2024)]
[Notices]
[Pages 58104-58106]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-15683]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-836]


Glycine From the People's Republic of China: Initiation of 
Changed Circumstances Review

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: In response to a request for a changed circumstances review 
(CCR) from Salvi Chemical Industries Limited (Salvi), the U.S. 
Department of Commerce (Commerce) is initiating a CCR of the 
antidumping duty (AD) order on glycine from the People's Republic of 
China (China).

DATES: Applicable July 17, 2024.

FOR FURTHER INFORMATION CONTACT: Tyler Weinhold, AD/CVD Operations, 
Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1121.

SUPPLEMENTARY INFORMATION:

Background

    On March 29, 1995 Commerce published the order in the Federal

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Register.\1\ On December 10, 2012, Commerce published an affirmative 
determination of circumvention of the Order, finding that glycine 
processed in India by Salvi and AICO Laboratories India Ltd. (AICO), 
using Chinese-origin inputs (e.g., crude or technical-grade glycine), 
and exported to the United States from India is circumventing the Order 
on glycine from China.\2\ Commerce determined that the processing of 
Chinese-origin technical grade or crude glycine, including but not 
limited to AAA-97TE, ACAA97TE, sodium glycinate and glycine slurry, 
does not substantially transform it into glycine of Indian origin and 
therefore such glycine remains Chinese in origin and therefore within 
the scope of the Order.\3\ In its Final Circumvention Determination, 
Commerce instituted a countrywide certification mechanism for all 
imports of glycine from India, to ensure that subject merchandise does 
not enter the United States as glycine from India.\4\ Commerce adopted 
the certification requirement to ensure that merchandise meeting the 
Final Circumvention Determination is properly identified as merchandise 
subject to the Order.\5\ Commerce applied this certification to all 
imports of glycine from India, with the exception of AICO and Salvi, 
because Commerce determined that glycine produced by AICO and Salvi was 
circumventing the Order, and therefore subject to the suspension of 
liquidation of entries and cash deposits of estimated antidumping 
duties at the rates established under the Order on glycine from 
China.\6\
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    \1\ See Antidumping Duty Order: Glycine from the People's 
Republic of China, 60 FR 16116 (March 29, 1995) (Order).
    \2\ See Glycine from the People's Republic of China: Final 
Partial Affirmative Determination of Circumvention of the 
Antidumping Duty Order, 77 FR 73426 (December 10, 2012) (Final 
Circumvention Determination).
    \3\ Id. 77 FR at 73427.
    \4\ Id.
    \5\ Id.
    \6\ Id.
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    On April 10, 2024, Salvi requested that Commerce conduct a CCR 
pertaining to the Final Circumvention Determination pursuant to Section 
751(b) of the Tariff Act of 1930, as amended, (the Act), and 19 CFR 
351.216(b) to find that glycine imports to United States from India are 
fully manufactured in India.\7\ In its submission, Salvi asserts that 
Commerce should allow Salvi to participate in the certification 
process, should determine that glycine produced by Salvi is not 
produced from Chinese-origin raw material, and should not subject 
Salvi's imports of glycine to cash deposit requirements under the Order 
on glycine from China.\8\ Salvi claims that the raw materials it used 
to produce glycine in recent years \9\ are outside the scope of the 
Order, irrespective of country of origin.\10\ Moreover, Salvi claims 
that all of the raw materials used in its production of glycine in 
recent years have been procured from Indian sources.\11\ Salvi also 
notes that the certification process established by Commerce and the 
requirement that Indian-produced glycine not include any Chinese origin 
materials was established prior to the issuance of an order against 
glycine from India.\12\ Salvi insists that a product can be subject to 
only a single antidumping duty order.\13\ Therefore, Salvi insists that 
once the order was issued on glycine from India, the circumstances 
pertinent to the Final Circumvention Determination changed 
significantly.\14\
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    \7\ See Salvi's Letter, ``Request for Changed Circumstances 
Review,'' dated April 10, 2024 (Salvi's CCR Request).
    \8\ Id.
    \9\ In Salvi's CCR Request, Salvi provided evidence relevant to 
it 2021-2021 and 2022-2023 fiscal years to demonstrate that it 
sourced Indian-produced non-glycine inputs from suppliers in India.
    \10\ See Salvi's CCR Request at 4-6.
    \11\ Id. at 6-8.
    \12\ Id. at 2.
    \13\ Id.
    \14\ Id.
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Scope of the Order

    The product covered by the Order is glycine, which is a free-
flowing crystalline material, like salt or sugar. Glycine is produced 
at varying levels of purity and is used as a sweetener/taste enhancer, 
a buffering agent, reabsorbable amino acid, chemical intermediate, and 
a metal complexing agent. This Order includes glycine of all purity 
levels. Glycine is currently classified under subheading 2922.49.43 of 
the Harmonized Tariff Schedule of the United States (HTSUS).\15\ 
Although the HTSUS subheading is provided for convenience and customs 
purposes, the written description of the merchandise under the Order is 
dispositive.
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    \15\ In separate scope rulings, Commerce determined that: (a) 
D(-) Phenylglycine Ethyl Dane Salt is outside the scope of the 
Order, and (b) Chinese glycine exported from India remains the same 
class or kind of merchandise as the China-origin glycine imported 
into India. See Notice of Scope Rulings and Anticircumvention 
Inquiries, 62 FR 62288 (November 21, 1997); and Final Circumvention 
Determination, 77 FR at 73427, respectively.
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Scope of the Final Circumvention Determination <SUP>16</SUP>
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    \16\ See Final Circumvention Determination, 77 FR at 73427.
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    The product covered by Final Circumvention Determination is 
glycine, as described in the ``Scope of the Order'' section, above, 
which is exported from India, but processed using Chinese-origin inputs 
(e.g., crude or technical-grade glycine). The Final Circumvention 
Determination covers glycine produced by AICO, Paras, and Salvi. Salvi 
and Paras stated on the record of the circumvention proceeding that 
they also self-produce glycine from Indian-origin inputs. The focus of 
the circumvention proceeding was to determine whether glycine that is: 
(1) manufactured in China; (2) processed by AICO, Paras, or Salvi in 
India; and (3) then exported to the United States as Indian-origin 
glycine constitutes circumvention of the Order under section 781(b) of 
the Act.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Act and 19 CFR 351.216(d), 
Commerce will conduct a CCR upon receipt of information concerning, or 
a request from an interested party for a review of an AD or CVD order 
that shows changed circumstances sufficient to warrant a review of the 
order.\17\ The information submitted by Salvi supporting its claim that 
Salvi produced glycine during fiscal years 2021-2022 and 2022-2023 
using Indian-origin inputs exclusively, and has not exported glycine to 
the United States that was processed or produced using Chinese-origin 
subject merchandise inputs during these fiscal years, demonstrates 
changed circumstance sufficient to initiate a review.\18\
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    \17\ See 19 CFR 351.216(c).
    \18\ See 19 CFR 351.216(d).
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    Commerce may issue a questionnaire requesting additional 
information from Salvi for this CCR regarding its purchases and imports 
(including purchases of glycine inputs and subject glycine), its 
production facilities, its glycine production, its sales and exports, 
its affiliations (including affiliations with glycine suppliers, 
importers, producers, exporters, and trading companies) and other 
relevant aspects of its glycine and glycine input related business 
operations and will publish in the Federal Register a notice of 
preliminary results in accordance with 19 CFR 351.221(b)(4) and 
(c)(3)(i). All information submitted may be subject to verification. 
Failure to allow full and complete verification of any information 
submitted may affect Commerce's consideration of that information. 
Commerce will set forth its preliminary factual and legal conclusions 
in that notice and a description of any action proposed based on those 
results. Pursuant to 19

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CFR 221(b)(4)(ii), interested parties will have an opportunity to 
comment on the preliminary results. Unless extended, Commerce will 
issue the final results of these CCRs in accordance with the time 
limits in 19 CFR 351.216(e).

Notification to Interested Parties

    This initiation notice is published in accordance with sections 
751(b)(1) and 777(i)(1) of the Act and 19 CFR 351.216(b), and 19 CFR 
351.221(c)(3).

    Dated: July 10, 2024.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. 2024-15683 Filed 7-16-24; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on July 17, 2024.

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