Notice2024-26458
2,4-Dichlorophenoxyacetic Acid From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
Primary source
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Published
November 14, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that 2,4-dichlorophenoxyacetic acid (2,4-D) from the People's Republic of China (China) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 220 (Thursday, November 14, 2024)</title>
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[Federal Register Volume 89, Number 220 (Thursday, November 14, 2024)]
[Notices]
[Pages 89963-89965]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-26458]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-160]
2,4-Dichlorophenoxyacetic Acid From the People's Republic of
China: Preliminary Affirmative Determination of Sales at Less Than Fair
Value, Postponement of Final Determination, and Extension of
Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that 2,4-dichlorophenoxyacetic acid (2,4-D) from the
People's Republic of China (China) is being, or is likely to be, sold
in the United States at less than fair value (LTFV). The period of
investigation (POI) is July 1, 2023, through December 31, 2023.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable November 14, 2024.
FOR FURTHER INFORMATION CONTACT: Matthew Palmer or Anjali Mehindiratta,
AD/CVD Operations, Office III, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1678
or (202) 482-9127, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on April 30,
2024.\1\ On July 22, 2024, Commerce tolled certain deadlines in this
administrative proceeding by seven days.\2\ On August 20, 2024,
Commerce postponed the preliminary determination of this investigation
and the revised deadline is now November 6, 2024.\3\
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\1\ See 2,4-Dichlorophenoxyacetic Acid from the People's
Republic of China and India: Initiation of Less-Than-Fair-Value
Investigation, 89 FR 34200 (April 30, 2024) (Initiation Notice).
\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\3\ See 2,4-Dichlorophenoxyacetic Acid from India and the
People's Republic of China: Postponement of Preliminary
Determinations of Antidumping Duty Investigations, 89 FR 67420
(August 20, 2024).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\4\ A list of topics included in the Preliminary Decision
Memorandum is included as an appendix to this notice. 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 found at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Less-Than-Fair-Value Investigation
of 2,4-Dichlorophenoxyacetic Acid from the People's Republic of
China,'' dated concurrently with this notice (Preliminary Decision
Memorandum).
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Scope of the Investigation
The products covered by this investigation is 2,4-D from China. For
a complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (scope).\6\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice. However, on June 11, 2024, in response to a
supplemental questionnaire,\7\ the petitioner clarified its intent to
include in the scope Harmonized Tariff Schedule of the United States
(HTSUS) subheadings: 3808.93.0500 and 3808.93.1500.\8\ As a result,
Commerce is preliminarily modifying the scope language as it appeared
in the Initiation Notice to replace HTSUS subheadings 3808.93.0050 and
3808.93.1400 with HTSUS subheadings 3808.93.0500 and 3808.93.1500. See
the scope in Appendix I to this notice.
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice, 89 FR at 34201.
\7\ See Commerce's Letter, ``Scope Supplemental Questions,''
dated June 4, 2024.
\8\ See Petitioner's Letter, ``Response to Scope Supplemental
Questions,'' dated June 11, 2024.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act,
Commerce has calculated normal value in accordance with section 773(c)
of the Act. Furthermore, pursuant to sections 776(a) and (b) of the
Act, Commerce preliminarily relied upon facts otherwise available, with
adverse inferences, for the China-wide entity, which includes Shandong
Weifang Rainbow Chemical Co., Ltd. (Weifang Rainbow), and the following
companies: (1) CAC Nantong Chemical Co., Ltd.; (2) Changzhou Wintafone
Chemical; (3) Gansu Xinlengmao Science and Tech Co.; (4) Gansu
Yufengyuan Science and Tec Co., Ltd.; (4) Jilin Ivsheng Agrochemical
Co., Ltd.; (6) Jingma Chemicals Ltd.; (7) Nanjing Agrochemical Co.,
Ltd.; (8) Ningxia Hanrun Biotechnology Co., Ltd.; and (9) Tangshan
Shengdong Chemical Co., Lt. For a full description of the methodology
underlying Commerce's preliminary determination, see the Preliminary
Decision Memorandum.
Combination Rates
In the Initiation Notice,\9\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\10\
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\9\ See Initiation Notice, 89 FR at 34204.
\10\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at <a href="http://enforcement.trade.gov/policy/bull05-1.pdf">enforcement.trade.gov/policy/bull05-1.pdf</a>.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Cash deposit
Weighted- rate (adjusted
Producer Exporter average for subsidy
dumping margin offsets)
(percent) (percent)
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Jiangxi Tianyu Chemical Co., Ltd.............. Thai Harvest Ltd.\11\........... 17.07 16.44
China-Wide Entity \12\........................ ................................ * 127.21 * 126.58
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* Rate based on facts available with adverse inferences.
Suspension of Liquidation
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\11\ We preliminarily find that Thai Harvest and Jiangxi Tianyu
Chemical Co., Ltd., are affiliated and should be treated as a single
entity pursuant to 19 CFR 351.401(f)(1) for the purposes of this
preliminary determination. See Preliminary Determination Memorandum
at Section V. ``Single Entity Analysis'' for further discussion of
the preliminary collapsing determination.
\12\ We preliminarily determine that application of facts
available with an adverse inference is warranted with respect to
mandatory respondent Shandong Weifang Rainbow Chemical Co., Ltd.
(Weifang Rainbow). Accordingly, we are not granting a separate rate
for Weifang Rainbow and consider the respondent a part of the China-
wide Entity.
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In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise, as described in Appendix I, entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register, as discussed below.
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR
351.205(d), Commerce will instruct CBP to require a cash deposit equal
to the weighted average amount by which normal value exceeds U.S.
price, as indicated in the chart above as follows: (1) for the
producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
China producers/exporters of merchandise under consideration that have
not established eligibility for their own separate rates, the cash
deposit rate will be equal to the estimated weighted-average dumping
margin established for the China-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the
table above, the cash deposit rate is the cash deposit rate applicable
to the China producer/exporter combination (or the China-wide entity)
that supplied that third-country exporter.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted
rates may be found in the ``Preliminary Determination'' section's table
of estimated weighted-average dumping margins above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
that the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to parties to the proceeding the
calculations and analysis it performed in this preliminary
determination within five days of public announcement or, if there is
no public announcement, within five days of the date of publication of
this notice in the Federal Register in accordance with 19 CFR
351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify information relied upon in making its final determination with
regard to the cooperative mandatory respondent.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last final verification report is
issued in this investigation.\13\ Rebuttal briefs, limited to issues
raised in the case briefs, may be filed not later than five days after
the date for filing case briefs.\14\ Interested parties who submit case
briefs or rebuttal briefs in this proceeding must submit: (1) a table
of contents listing each issue; and (2) a table of authorities.\15\
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\13\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for
general filing requirements).
\14\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\15\ See 19 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\16\
Further, we request that interested parties limit their public
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public executive summaries as
the basis of the comment summaries included in the issues and decision
memorandum that will accompany the final determination in this
investigation. We request that interested parties include footnotes for
relevant citations in the executive
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summary of each issue. Note that Commerce has amended certain of its
requirements pertaining to the service of documents in 19 CFR
351.303(f).\17\
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\16\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\17\ See APO and Service Final Rule.
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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. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
duty determination be accompanied by a request for extension of
provisional measures from a four-month period to a period not more than
six months in duration.
On October 18, 2024, Thai Harvest requested that Commerce postpone
the final determination and that provisional measures be extended to a
period not to exceed six months.\18\ On October 17, Corteva Agriscience
LLC (the petitioner) also requested that Commerce postpone the final
determination.\19\ In accordance with section 735(a)(2)(A) of the Act
and 19 CFR 351.210(b)(2)(ii), because: (1) the preliminary
determination is affirmative; (2) the requesting exporter accounts for
a significant proportion of exports of the subject merchandise; and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make its final determination no later than 135 days after
the date of publication of this preliminary determination.
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\18\ See Thai Harvest's Letter, ``Postponement of Final
Determination and Extension of Provisional Measures Period,'' dated
October 18, 2024.
\19\ See Petitioner's Letter, ``Petitioner's Request to Postpone
Final Antidumping Duty Determination,'' dated October 17, 2024.
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U.S. International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of subject merchandise are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This preliminary determination is issued and published in
accordance with sections 733(f) and 777(i)(1) of the Act, and 19 CFR
351.205(c).
Dated: November 6, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation 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 2922.12.0001,
2921.11.0000, 2921.19.6195, 2922.19.9690, 3808.93.0500, and
3808.93.1500. The HTSUS subheadings and CAS registry numbers are
provided for convenience and customs purposes. The written
description of the scope of the investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Application of Facts Available and Use of Adverse Inferences
V. Single Entity Analysis
VI. Discussion of the Methodology
A. Non-Market Economy Country
B. Surrogate Country and Surrogate Value Comments
C. Separate Rates
D. Combination Rates
E. The China-Wide Entity
F. Date of Sale
G. Comparisons to Fair Value
H. Export Price
I. Value-Added Tax
J. Normal Value
K. Factor Valuation Methodology
VII. Adjustment Under Section 777(A)(F) of the Act
VIII. Adjustment to Cash Deposit Rates for Export Subsidies in the
Companion Countervailing Duty Investigation
IX. Recommendation.
[FR Doc. 2024-26458 Filed 11-13-24; 8:45 am]
BILLING CODE 3510-DS-P
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