Notice2024-30303
1-Hydroxyethylidene-1, 1-Diphosphonic Acid From the People's Republic of China: Initiation of Circumvention Inquiry of the Antidumping and Countervailing Duty Orders
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
December 19, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from Compass Chemical International LLC (Compass, a domestic interested party), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of 1-Hydroxyethylidene-1, 1-Diphosphonic Acid (HEDP) from the People's Republic of China (China), which has been altered in form or appearance in minor respects, are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders.
Full Text
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<title>Federal Register, Volume 89 Issue 244 (Thursday, December 19, 2024)</title>
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[Federal Register Volume 89, Number 244 (Thursday, December 19, 2024)]
[Notices]
[Pages 103779-103780]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30303]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-045, C-570-046]
1-Hydroxyethylidene-1, 1-Diphosphonic Acid From the People's
Republic of China: Initiation of Circumvention Inquiry of the
Antidumping and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Compass Chemical International
LLC (Compass, a domestic interested party), the U.S. Department of
Commerce (Commerce) is initiating a country-wide circumvention inquiry
to determine whether imports of 1-Hydroxyethylidene-1, 1-Diphosphonic
Acid (HEDP) from the People's Republic of China (China), which has been
altered in form or appearance in minor respects, are circumventing the
antidumping duty (AD) and countervailing duty (CVD) orders.
DATES: Applicable December 19, 2024.
FOR FURTHER INFORMATION CONTACT: Charles Vannatta or Tyler O'Daniel;
Office of Policy, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4036 or (202)-482-6030,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 4, 2024, pursuant to section 781(c) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.226(j), Compass filed a
circumvention inquiry request alleging that solid or powdered acidic
HEDP produced in China and exported to the United States constitutes
merchandise altered in form or appearance in minor respects that is
circumventing the Orders,\1\ and, accordingly, should be included
within the scope of the Orders.\2\ On October 30, 2024, we issued a
request for additional information to Compass,\3\ because we had found
that Compass' request to conduct a circumvention inquiry was
insufficient for purposes of initiation, in accordance with 19 CFR
351.226(d)(1). Additionally, we stated that 30-day period for Commerce
to consider whether to initiate on Compass' circumvention inquiry
request would begin with Compass' response to the request for
information.\4\ Subsequently, on November 13, 2024, Compass filed its
response to our request for information.\5\ Thus, we consider the
circumvention inquiry request to have been filed on November 13, 2024.
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\1\ See 1-Hydroxyethylidene-1, 1-Diphosphonic Acid From the
People's Republic of China: Amended Final Determination of Sales at
Less Than Fair Value, and Antidumping Duty Order, 82 FR 22807 (May
18, 2017); see also 1-Hydroxyethylidene-1, 1-Diphosphonic Acid from
the People's Republic of China: Countervailing Duty Order, 82 FR
22809 (May 18, 2017) (collectively, Orders).
\2\ See Compass's Letter, ``Request for an Anticircumvention
Inquiry Pursuant to Section 781(c) of the Act,'' dated October 4,
2024.
\3\ See Commerce's Letter, ``Supplemental Questionnaire,'' dated
October 30, 2024.
\4\ Id.
\5\ See Compass's Letter, ``Request for an Anticircumvention
Inquiry Pursuant to Section 781(c) of the Act; Response to
Supplemental Questionnaire,'' dated November 13, 2024.
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Scope of the Orders
The merchandise covered by the Orders includes all grades of
aqueous acidic (non-neutralized) concentrations of 1-hydroxyethylidene-
1, 1-disphosphonic acid (HEDP), also referred to as
hydroxyethylidenendiphosphonic acid, hydroxyethanediphosphonic acid,
acetodiphosphonic acid, and etidronic acid. The Chemical Abstract
Service (CAS) registry number for HEDP is 2809-21-4.
The merchandise subject to the Orders is currently classified in
the Harmonized Tariff Schedule of the United States (HTSUS) at
subheading 2931.90.9043. It may also enter under HTSUS subheadings
2811.19.6090, 2931.90.9041, 2931.90.9051, 2811.19.6190, 2931.39.0018
and 2931.49.0050. While HTSUS subheadings and the CAS registry number
are provided for convenience and customs purposes only, the written
description of the scope of the Orders is dispositive.
Merchandise Subject to the Circumvention Inquiry
The merchandise covered by this circumvention inquiry includes all
grades of acidic (non-neutralized) concentrations of 1-
hydroxyethylidene-1, 1-diphosphonic acid (HEDP), also referred to as
hydroxyethylidenendiphosphonic acid, hydroxyethanediphosphonic acid,
acetodiphosphonic acid, and etidronic acid, in solid or powder form,
produced in China and exported to the United States. The CAS registry
number for solid acidic HEDP is 2809-21-4. The solid or powder form of
acidic HEDP subject to this request is typically entered into the
United States under HTSUS subheadings 2931.49.0080, 2931.90.9052 and
2811.19.6190.
Statutory and Regulatory Framework for Initiation of Circumvention
Inquiry
Section 351.226(d)(1)(ii) 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.'' Compass alleges
circumvention pursuant to section 781(c) of the Act (i.e., merchandise
altered in form or appearance in minor respects).
Section 781(c)(1) of the Act provides that the class or kind of
merchandise subject to an AD or CVD order shall include articles that
have been ``altered in form or appearance in minor respects . . .
whether or not included in the same tariff classification.'' Section
781(c)(2) of the Act provides an exception that section 781(c)(1) of
the Act ``shall not apply with respect to altered merchandise if the
administering authority determines that it would be unnecessary to
consider the altered merchandise within the scope of the
{order{time} .'' Concerning the allegation of minor alterations under
section 781(c) of the Act and 19 CFR 351.226(j), Commerce may consider
criteria
[[Page 103780]]
including, but not limited to: (1) Overall physical characteristics of
the merchandise; (2) expectations of ultimate users; (3) use of the
merchandise; (4) channels of marketing; and (5) cost of any
modification relative to the value of the imported products.
In accordance with 19 CFR 351.226(m)(2), for companion AD and CVD
proceedings, ``the Secretary will initiate and conduct a single inquiry
with respect to the product at issue for both orders only on the record
of the antidumping proceeding.'' Further, once ``the Secretary issues a
final circumvention determination on the record of the AD proceeding,
the Secretary will include a copy of that determination on the record
of the CVD.'' Accordingly, once Commerce concludes this circumvention
inquiry, Commerce intends to place its final circumvention
determination on the record of the companion CVD proceeding.
Analysis
After analyzing the record evidence and Compass' allegation, we
determine that the circumvention request satisfies the requirements of
19 CFR 351.226(c) and that there is sufficient information to warrant
initiation of a circumvention inquiry based on minor alterations,
pursuant to section 781(c) of the Act and 19 CFR 351.226(j). For a full
discussion of the basis for our decision to initiate a circumvention
inquiry, see the Initiation Checklist.\6\
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\6\ See Initiation Checklist, ``Initiation of the Circumvention
Inquiry on the Antidumping and Countervailing Duty Orders,'' dated
concurrently with, and hereby adopted by, this notice (Initiation
Checklist).
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As explained in the Initiation Checklist, the information provided
by Compass also 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., Aluminum Extrusions from the People's Republic of
China: Affirmative Final Determination of Circumvention of the
Antidumping and Countervailing Duty Orders and Rescission of Minor
Alterations Anti-Circumvention Inquiry, 82 FR 34630 (July 26, 2017),
and accompanying Issues and Decision Memorandum at Comment 4; see
also Hydrofluorocarbon Blends from the People's Republic of China:
Initiation of Circumvention Inquiry on the Antidumping Duty Order,
88 FR 74150 (October 30, 2023); Hydrofluorocarbon Blends from the
People's Republic of China: Initiation of Circumvention Inquiries on
the Antidumping Duty Order, 88 FR 43275 (July 7, 2023).
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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 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 are already subject to the suspension of liquidation under
the Orders and to apply the cash deposit rates that would be applicable
if the products were determined to be covered by the scope of the
Orders. 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(c) of the Act,
Commerce determines that Compass' 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 solid or powdered acidic
HEDP produced in, and exported from, China are circumventing the
Orders. 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.
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This notice is published in accordance with section 781(c) of the
Act and 19 CFR 351.226(d)(1)(ii).
Dated: December 13, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2024-30303 Filed 12-18-24; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on December 19, 2024.
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