Notice2025-00259
Erythritol From the People's Republic of China: Initiation of Countervailing Duty Investigation
Primary source
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Published
January 10, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 90 Issue 6 (Friday, January 10, 2025)</title>
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[Federal Register Volume 90, Number 6 (Friday, January 10, 2025)]
[Notices]
[Pages 1962-1965]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-00259]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-193]
Erythritol From the People's Republic of China: Initiation of
Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable January 2, 2025.
FOR FURTHER INFORMATION CONTACT: Ajay Menon, Office IX, AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0208.
SUPPLEMENTARY INFORMATION:
The Petition
On December 13, 2024, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
erythritol from the People's Republic of China (China) filed in proper
form on behalf of Cargill, Incorporated (the petitioner), a U.S.
producer of erythritol.\1\ The CVD Petition was accompanied by an
antidumping duty (AD) petition concerning imports of erythritol from
China.\2\
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\1\ See Petitioner's Letter, ``Petition for the Imposition of
Antidumping and Countervailing Duties,'' December 13, 2024
(Petition).
\2\ Id.
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On December 17, 2024, Commerce requested supplemental information
pertaining to certain aspects of the Petition in supplemental
questionnaires.\3\ On December 19, 2024, the petitioner filed timely
responses to these requests for additional information.\4\
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\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
December 17, 2024 (General Issues Questionnaire); and ``Supplemental
Questions,'' dated December 17, 2024.
\4\ See Petitioner's Letters, ``Response to Supplemental
Petition Questionnaire,'' dated December 19, 2024 (General Issues
Supplement); and ``Response to Supplemental Petition
Questionnaire,'' dated December 19, 2024.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of China
(GOC) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of erythritol in
China, and that such imports are materially injuring, or threatening
material injury to, the domestic industry producing erythritol in the
United States. Consistent with section 702(b)(1) of the Act and 19 CFR
351.202(b), for those alleged programs on which we are initiating a CVD
investigation, the Petition was accompanied by information reasonably
available to the petitioner supporting its allegations.
Commerce finds that the petitioner filed the Petition 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 with respect to
the initiation of the requested CVD investigation.\5\
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\5\ See section on ``Determination of Industry Support for the
Petition,'' infra.
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Period of Investigation
Because the Petition was filed on December 13, 2024, the period of
investigation for the CVD investigation is January 1, 2023, through
December 31, 2023.\6\
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\6\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation
The product covered by this investigation is erythritol from China.
For a full description of the scope of this investigation, see the
appendix to this notice.
Comments on the Scope of the Investigation
On December 17, 2024, Commerce requested information and
clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petition is an accurate
reflection of the products for which the domestic industry is seeking
relief.\7\ On December 19, 2024, the petitioner provided clarifications
and revised the scope.\8\ The description of merchandise covered by
this investigation, as described in the appendix to this notice,
reflects these clarifications.
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\7\ See General Issues Questionnaire.
\8\ See General Issues Supplement at 2-3 and Exhibit GEN-S-2.
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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 comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information, all such
factual information should be limited to public information.\10\ To
facilitate preparation of its questionnaires, Commerce requests that
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on January
22, 2025, which 20 calendar days from the signature date of this
notice. Any rebuttal comments, which may include factual information,
and should also be limited to public information, must be filed by 5:00
p.m. ET on February 3, 2025, which is the next business day after 10
calendar days from the initial comment deadline.\11\
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\9\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\11\ See 19 CFR 351.303(b)(1). The deadline for scope rebuttal
comments falls on February 1, 2025, which is a Saturday. In
accordance with 19 CFR 351.303(b)(1), Commerce will accept scope
rebuttal comments filed by 5:00 p.m. ET on February 3, 2025 (``For
both electronically filed and manually filed documents, if the
applicable due date falls on a non-business day, the Secretary will
accept documents that are filed on the next business day.'').
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Commerce requests that any factual information that parties
consider relevant to the scope of the investigation be submitted during
that time period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigation 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
AD 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),
[[Page 1963]]
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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Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the GOC of the receipt of the Petition and provided an
opportunity for consultations with respect to the Petition.\13\ The GOC
did not request consultations.
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\13\ See Commerce's Letter, ``Invitation for Consultation to
Discuss the Countervailing Duty Petition,'' dated December 16, 2024.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(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 702(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 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 Algoma Steel Corp., Ltd. v. United
States, 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 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 investigation.\16\ Based on our analysis of the information
submitted on the record, we have determined that erythritol, as defined
in the scope, constitute a single domestic like product, and we have
analyzed industry support in terms of that domestic like product.\17\
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\16\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Checklist, ``Countervailing Duty Investigation Initiation Checklist:
Erythritol from the People's Republic of China,'' dated concurrently
with, and hereby adopted by, this notice (China CVD Initiation
Checklist), at Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions Covering Erythritol
from the People's Republic of China (Attachment II). This checklist
is on file electronically via ACCESS.
\17\ See Attachment II of the China CVD Initiation Checklist.
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In determining whether the petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own production of the domestic like product in 2023.\18\ The petitioner
stated that there are no other known producers of erythritol in the
United States; therefore, the Petition is supported by 100 percent of
the U.S. industry.\19\ We relied on data provided by the petitioner for
purposes of measuring industry support.\20\
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\18\ Id.
\19\ Id.
\20\ For further discussion, see Attachment II of the China CVD
Initiation Checklist.
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Our review of the data provided in the Petition, the General Issues
Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\21\ First, the Petition 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).\22\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
702(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\23\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 702(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition 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 Petition.\24\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.\25\
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\21\ Id.
\22\ Id.; see also section 702(c)(4)(D) of the Act.
\23\ See Attachment II of the China CVD Initiation Checklist.
\24\ Id.
\25\ Id.
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Injury Test
Because China is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from China materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefiting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioner
[[Page 1964]]
alleges that subject imports from China exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\26\
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\26\ For further information regarding negligibility and the
injury allegation, see China CVD Initiation Checklist at Attachment
III, Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Erythritol from the People's Republic of China (Attachment
III).
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The petitioner contends that the industry's injured condition is
illustrated by the significant and increasing volume of subject
imports; reduced market share; underselling and price depression and/or
suppression; lost sales and revenues; and declines in the domestic
industry's production, capacity utilization, U.S. shipments, employment
variables, and financial performance.\27\ We assessed the allegations
and supporting evidence regarding material injury, threat of material
injury, causation, cumulation, as well as negligibility, and we have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation.\28\
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\27\ Id.
\28\ Id.
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Initiation of CVD Investigation
Based upon the examination of the Petition and supplemental
responses, we find that they meet the requirements of section 702 of
the Act. Therefore, we are initiating a CVD investigation to determine
whether imports of erythritol benefit from countervailable subsidies
conferred by the GOC. In accordance with section 703(b)(1) of the Act
and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determination no later than 65 days after the date of this
initiation.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on 28 of the 29
programs alleged by the petitioner. For a full discussion of the basis
for our decision to initiate on each program, see the China CVD
Initiation Checklist. A public version of the initiation checklist for
this investigation is available on ACCESS.
Respondent Selection
In the Petition, the petitioner identified 83 companies in China as
producers and/or exporters of erythritol.\29\ Commerce intends to
follow its standard practice in CVD investigations and calculate
company-specific subsidy rates in this investigation. In the event that
Commerce determines that the number of companies is large and it cannot
individually examine each company based on Commerce's resources,
Commerce normally selects mandatory respondents in CVD investigations
using U.S. Customs and Border Protection (CBP) entry data for U.S.
imports under the appropriate Harmonized Tariff Schedule of the United
States (HTSUS) subheading(s) listed in the ``Scope of the
Investigation'' in the appendix.
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\29\ See Petition at Volume I (pages I-7 and I-8 and Exhibit I-
5); see also General Issues Supplement at 1 and Exhibit GEN-S-1.
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On December 31, 2024, Commerce released CBP data on imports of
erythritol from China 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 this investigation.\30\
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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\30\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated December 31, 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>.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the GOC via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the Petition to each
exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of erythritol from China are materially
injuring, or threatening material injury to, a U.S. industry.\31\ A
negative ITC determination will result in the investigation being
terminated.\32\ Otherwise, this CVD investigation will proceed
according to statutory and regulatory time limits.
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\31\ See section 703(a)(1) of the Act.
\32\ 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 of production 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 \33\ 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.\34\ 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 this investigation.
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\33\ See 19 CFR 351.301(b).
\34\ See 19 CFR 351.301(b)(2).
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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.\35\ 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. 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
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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 this investigation.\36\
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\35\ See 19 CFR 351.302.
\36\ 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>.
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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.\37\
Parties must use the certification formats provided in 19 CFR
351.303(g).\38\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\37\ See section 782(b) of the Act.
\38\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
<a href="https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf">https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf</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 this investigation should ensure that they meet the requirements of
19 CFR 351.103(d) (e.g., by filing the required letters of appearance).
Note that Commerce has amended certain of its requirements pertaining
to the service of documents in 19 CFR 351.303(f).\39\
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\39\ 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 702 and
777(i) of the Act, and 19 CFR 351.203(c).
Dated: January 2, 2025.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The product within the scope of this investigation is
erythritol, which is a sugar alcohol, commonly referred to as a
polyol, typically produced by the fermentation of glucose using
enzymes and yeast or yeast-like fungi (though the scope includes
erythritol produced using any other feedstock or organism).
Erythritol is an organic compound with the molecular formula
C<INF>4</INF>H<INF>10</INF>O<INF>4</INF> and a Chemical Abstracts
Service (CAS) registry number of 149-32-6. Other names for
erythritol include meso-erythritol, (2R, 3S)-butan-1,2,3,4-tetrol,
butane-1,2,3,4-tetrol, or meso-1,2,3,4-Tetrahydryoxybutane.
Erythritol typically appears as a white crystalline, odorless
product that rapidly dissolves in water. While erythritol is
typically produced in the crystalline form or as a fine powder or in
directly compressible form, the scope of this investigation covers
all physical forms and grades of erythritol, including organic
erythritol.
The merchandise covered by this investigation is classifiable
under Harmonized Tariff Schedule of the United States (HTSUS)
subheading 2905.49.4000. Erythritol may also enter under HTSUS
subheading 2106.90.9998. Although the HTSUS subheadings are provided
for convenience and customs purposes, the written description of the
merchandise covered by this investigation is dispositive.
[FR Doc. 2025-00259 Filed 1-8-25; 8:45 am]
BILLING CODE 3510-DS-P
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