Notice2025-00865
Vanillin 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
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
January 16, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that vanillin 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 October 1, 2023, through March 31, 2024. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 90 Issue 10 (Thursday, January 16, 2025)</title>
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[Federal Register Volume 90, Number 10 (Thursday, January 16, 2025)]
[Notices]
[Pages 4720-4723]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-00865]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-172]
Vanillin 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 vanillin 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 October 1, 2023,
through March 31, 2024. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable January 16, 2025.
FOR FURTHER INFORMATION CONTACT: Claudia Cott or Bryan Hansen, AD/CVD
Operations, Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4270 or (202) 482-3683,
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 July 1,
2024.\1\ On July 22, 2024, Commerce tolled certain deadlines in this
investigation by seven days.\2\ On October 22, 2024, Commerce postponed
the preliminary determination of this investigation.\3\ The deadline
for the preliminary determination is now January 8, 2025.
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\1\ See Vanillin from the People's Republic of China: Initiation
of Less-Than-Fair Value Investigation, 89 FR 54424 (July 1, 2024)
(Initiation Notice).
\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\3\ See Vanillin from the People's Republic of China:
Postponement of Preliminary Determination in the Less-Than-Fair
Value Investigation, 89 FR 84330 (October 22, 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 Appendix II 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 accessed directly
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 Investigation of Sales at Less Than
Fair Value of Vanillin from People's Republic of China,'' dated
concurrently with and hereby adopted by this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is vanillin 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, i.e., scope.\6\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice. As a result, Commerce is not preliminarily modifying
the scope language as it appeared in the Initiation Notice. 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 54424.
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[[Page 4721]]
Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices and
constructed export prices in accordance with sections 772(a) and (b) of
the Act, respectively. Because China is a non-market economy (NME)
within the meaning of section 771(18) of the Act, Commerce has
calculated normal value (NV) 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. For a full description
of the methodology underlying Commerce's preliminary determination, see
the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\7\ 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.\8\ In this investigation, we assigned a
producer/exporter combination rate for the companies that are listed in
the ``Preliminary Determination'' and eligible for separate rates.
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\7\ Id.
\8\ 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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Separate Rates
We preliminarily granted a separate rate to certain separate rate
respondents that we did not select for individual examination.\9\ In
calculating the rate for non-individually examined separate rate
respondents in an NME LTFV investigation, Commerce normally looks to
section 735(c)(5)(A) of the Act, which pertains to the calculation of
the all-others rate in a market economy LTFV investigation, for
guidance. Pursuant to section 735(c)(5)(A) of the Act, normally this
rate shall be an amount equal to the weighted-average of the estimated
weighted-average dumping margins established for those companies
individually examined, excluding zero and de minimis dumping margins,
and any dumping margins based entirely under section 776 of the Act.
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\9\ See the Preliminary Decision memorandum for additional
details.
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Commerce calculated an individual estimated weighted-average
dumping margin for Jiangxi Brother Pharmaceutical Co., Ltd. (Jiangxi
Brother) that is not zero, de minimis, or based entirely on facts
otherwise available. Thus, the weighted-average dumping margin
calculated for Jiangxi Brother is the basis to determine the weighted-
average dumping margin for the non-examined, separate rate companies in
this investigation.\10\ See the table below in the ``Preliminary
Determination'' section of this notice.
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\10\ See Memorandum, ``Calculation of the Dumping Margin for
Respondents Not Selected for Individual Examination,'' dated January
8, 2025.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Cash deposit rate
Weighted-average (adjusted for
Exporter Producer dumping margin subsidy offsets)
(percent) (percent)
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Jiangxi Brother Pharmaceutical Co., Ltd... Jiangxi Brother 186.20 186.15
Pharmaceutical Co., Ltd.
Chongqing Thrive Fine Chemicals Co., Ltd.. Chongqing Thrive Fine 186.20 186.15
Chemicals Co., Ltd.
HongKong Wictive Merchants Co., Ltd....... Kunshan Asia Aroma Corp., 186.20 186.15
Ltd.
Kunshan Asia Aroma Corp., Ltd............. Kunshan Asia Aroma Corp., 186.20 186.15
Ltd.
Mianyang Sunshine Bio-Tech Co., Ltd....... Mianyang Sunshine Bio-Tech 186.20 186.15
Co., Ltd.
Shanghai Fuxin Fine Chemical Co., Ltd..... Jiaxing Zhonghua Chemical 186.20 186.15
Co., Ltd.
Shenzhen Siyomicro Bio-Tech Co., Ltd...... Shenzhen Siyomicro Bio-Tech 186.20 186.15
Co., Ltd.
Wuxi Lotus Essence Co., Ltd............... Jiaxing Zhonghua Chemical 186.20 186.15
Co., Ltd.
Xiamen Bestally Biotechnology Co., Ltd.... Xiamen Oamic Biotech Co., 186.20 186.15
Ltd.
China-Wide Entity......................... ............................ * 379.87 379.82
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* This rate is based on facts available with adverse inferences.
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries 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
Chinese 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 Chinese 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,
[[Page 4722]]
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 the CVD
provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis it performed in connection with this preliminary
determination within five days of the 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.
Public Comment
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than seven days after the date on which the last verification
report is issued in this investigation.\11\ A timeline for the
submission of case briefs and written comments will be notified to
interested parties at a later date. 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.\12\ 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.\13\
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\11\ Case and rebuttal briefs submitted in response to this
preliminary determination should not include scope-related issues.
See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for general
filing requirements).
\12\ 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).
\13\ 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.\14\
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 public executive 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).\15\
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\14\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\15\ 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 in the Federal Register.
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. Parties should confirm the date,
time, and location of the hearing two days before the scheduled date.
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 petitioner. 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 December 24, 2024, Jiangxi Brother requested that Commerce
postpone the final determination and that the provisional measures be
extended to a period not to exceed six months, respectively.\16\ 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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\16\ See Jiangxi Brother's Letter, ``Request to Postpone Final
Determination,'' dated December 24, 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).
[[Page 4723]]
Dated: January 8, 2025.
Steven Presing,
Acting Deputy Assistant Secretary for Policy and Negotiations.
Appendix I
Scope of the Investigation
The merchandise covered by the investigation is vanillin, with
the molecular formula C<INF>8</INF>H<INF>8</INF>O<INF>3</INF> or
C<INF>9</INF>H<INF>10</INF>O<INF>3</INF>. For purposes of this
investigation, vanillin consists of natural vanillin, synthetic
vanillin, bio-sourced synthetic vanillin (biovanillin) (each also
known as 4-Hydroxy-3-methoxybenzaldehyde), and ethylvanillin (also
known as 3-Ethoxy-4-hydroxybenzaldehyde). Vanillin covered by this
investigation is a chemical compound with the Chemical Abstracts
Service (CAS) number 121-33-5 or 121-32-4. Vanillin is covered by
the investigation regardless of whether it is in a crystalline
powder or crystal form. Vanillin is covered by the scope of the
investigation, irrespective of purity, particle size, or physical
form.
Merchandise subject to the investigation is specified within the
Harmonized Tariff Schedule of the United States (HTSUS) under
subheading 2912.41.0000 and 2912.42.0000. The HTSUS subheadings and
CAS registry numbers are provided for convenience and customs
purposes only. The written description of the merchandise covered by
the investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Discussion of the Methodology
V. Adjustment Under Section 777(A)(f) of the Act
VI. Adjustment to Cash Deposit Rates for Export Subsidies in the
Companion Countervailing Duty Investigation
VII. Recommendation
[FR Doc. 2025-00865 Filed 1-15-25; 8:45 am]
BILLING CODE 3510-DS-P
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