Notice2025-05886

2,4-Dicholorphenoxyacetic Acid From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value

Primary source

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Published
April 7, 2025

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) determines that 2,4-dicholorphenoxyacetic 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.

Full Text

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<title>Federal Register, Volume 90 Issue 65 (Monday, April 7, 2025)</title>
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[Federal Register Volume 90, Number 65 (Monday, April 7, 2025)]
[Notices]
[Pages 14964-14966]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05886]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-160]


2,4-Dicholorphenoxyacetic Acid From the People's Republic of 
China: Final Affirmative Determination of Sales at Less Than Fair Value

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
2,4-dicholorphenoxyacetic 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.

DATES: Applicable April 7, 2025.

FOR FURTHER INFORMATION CONTACT: Matthew Palmer, 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.

SUPPLEMENTARY INFORMATION:

Background

    On November 14, 2024, Commerce published its Preliminary 
Determination in the in the Federal Register and invited interested 
parties to comment.\1\ For a complete description of the events that 
followed the Preliminary Determination, see the Issues and Decision 
Memorandum.\2\ The Issues and 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 Issues and 
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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    \1\ See 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, 89 FR 89963 (November 14, 2024) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of 2,4-Dicholorphenoxyacetic Acid from the People's 
Republic of China,'' dated concurrently with, and hereby adopted by, 
this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product 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

    We received no comments from interested parties on the scope of the 
investigation as it appeared in the Preliminary Determination. 
Therefore, we made no changes to the scope of the investigation from 
that published in the Preliminary Determination for the Final 
Determination.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), Commerce conducted verification of the sales and factors of 
production

[[Page 14965]]

information submitted by Thai Harvest Ltd. (Thai Harvest).\3\ We used 
standard verification procedures, including an examination of relevant 
sales and accounting records, and original source documents provided by 
Thai Harvest.
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    \3\ See Memorandum, ``Verification of Thai Harvest Ltd.,'' dated 
January 28, 2025.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs submitted by 
interested parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of the issues addressed in the Issues 
and Decision Memorandum is attached to this notice as Appendix II.

Changes Since the Preliminary Determination

    Based on a review of the record and comments received from 
interested parties regarding the Preliminary Results, and in 
consideration of Commerce's verification findings, we determine that 
Thai Harvest's submitted information is incomplete and unreliable, 
warranting the application of facts available pursuant to section 
776(a) of the Act. Further, due to the company's failure to act to the 
best of its ability, we find that Thai Harvest has significantly 
impeded Commerce's review and that application of an adverse inference 
(AFA) is warranted pursuant to section 776(b) of the Act. Accordingly, 
as Commerce determines that Thai Harvest's responses in this proceeding 
are unverifiable and the application of AFA appropriate, we conclude 
that the respondent did not demonstrate eligibility to qualify for a 
separate rate in this review and, thus, is considered a part of the 
China-wide entity for the final determination.\4\ There were no 
additional changes to Commerce's Preliminary Determination.
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    \4\ For a full description of these changes, see the Issues and 
Decision Memorandum.
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China-Wide Entity and Use of AFA

    In this final determination, consistent with the Preliminary 
Determination,\5\ Commerce continues to find that the use of facts 
otherwise available, with adverse inferences, is warranted in 
determining the dumping rate for the China-wide entity, pursuant to 
sections 776(a) and (b) of the Act. There is no new information on the 
record that would cause us to reconsider our decision in the 
Preliminary Determination. Thus, we made no changes to our analysis or 
to the China-wide entity's dumping margin for the final determination. 
For a full description of the methodology underlying Commerce's final 
determination, see the Issues and Decision Memorandum.
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    \5\ See Preliminary Determination PDM at 11-13.
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Combination Rates

    In the Initiation Notice,\6\ 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.\7\ In this investigation, we 
preliminarily calculated producer/exporter combination rates for the 
sole entity that was found to be eligible for a separate rate (i.e., 
Thai Harvest). However, as explained above, we determine that Thai 
Harvest is no longer eligible for a separate rate in this final 
determination and, as a result, all entities are now found to be part 
of the China-wide entity. As a result, Commerce had no need to 
calculate producer/exporter combination rates for this final 
determination.
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    \6\ See Initiation Notice, 89 FR at 89963.
    \7\ 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="https://access.trade.gov/Resources/policy/bull05-1.pdf">https://access.trade.gov/Resources/policy/bull05-1.pdf</a>.
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Final Determination

    Commerce determines that the following estimated weighted-average 
dumping margin exists for the period, July 1, 2023, through December 
31, 2023:

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                                                               Weighted-average
                     Producer/exporter                          dumping margin      Cash deposit rate (adjusted
                                                                  (percent)       for subsidy offsets) (percent)
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China-Wide Entity \8\......................................            * 127.21                        * 126.58
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* Rate based on facts available with adverse inferences.

Disclosure
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    \8\ We continue to determine that the application of facts 
available with an adverse inference is warranted with respect to 
mandatory respondent Shandong Weifang Rainbow Chemical Co., Ltd. 
(Weifang Rainbow). In addition, we find that the application of 
facts available with an adverse inference is warranted with respect 
to the other mandatory respondent, Thai Harvest. Accordingly, we are 
not granting a separate rate to either Weifang Rainbow or Thai 
Harvest and consider the respondents to be part of the China-wide 
entity.
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    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a final determination within five days of 
its public announcement or, if there is no public announcement, within 
five days of the date of publication of this notice in accordance with 
19 CFR 351.224(b). However, because Commerce applied AFA to the 
mandatory respondents in this investigation in accordance with section 
776 of the Act, and the applied AFA rate is based solely on the 
Petition, there are no calculations to disclose.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of subject merchandise, 
as described in Appendix I of this notice, which were entered, or 
withdrawn from warehouse, for consumption, on or after November 14, 
2024, the date of publication of the Preliminary Determination in the 
Federal Register. These suspension of liquidation instructions will 
remain in effect until further notice.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), upon publication of this notice, we will instruct CBP to 
require a cash deposit for estimated antidumping duties for such 
entries as follows: (1) for all Chinese exporters of subject 
merchandise, the cash deposit rate will be equal to the estimated 
dumping margin established for the China-wide entity; and (2) for all 
third country exporters of subject merchandise, the cash deposit rate 
is also the cash deposit rate applicable to the China-wide entity. 
These suspension of liquidation instructions will remain in effect 
until further notice.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of export 
subsidies countervailed in a companion

[[Page 14966]]

countervailing duty (CVD) proceeding, when CVD provisional measures are 
in effect. Accordingly, where Commerce has made a final affirmative 
determination for countervailable export subsidies, Commerce offsets 
the estimated weighted-average dumping margin by the appropriate CVD 
rate. Commerce has continued to adjust the cash deposit rate for export 
subsidies in the companion CVD investigation by the appropriate export 
subsidy rate as indicated in the above chart. However, the suspension 
of liquidation of provisional measures in the companion CVD case has 
been discontinued; \9\ therefore, we are not instructing CBP to collect 
cash deposits based upon the adjusted estimated weighted-average 
dumping margin for those export subsidies at this time.
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    \9\ See 2,4-Dichlorophenoxyacetic Acid From the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination, 89 FR 74906 (September 13, 2024); 
see also section 703(d) of the Act, which states that the 
provisional measures may not be in effect for more than four months, 
which in the companion CVD case is 120 days after the publication of 
the preliminary determination, or January 11, 2025 (i.e., last day 
provisional measures are in effect).
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U.S. International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination of sales at LTFV. 
Because Commerce's final determination is affirmative, in accordance 
with section 735(b)(2) of the Act, the ITC will determine, within 45 
days, whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports of 
2,4-D. If the ITC determines that material injury or threat of material 
injury does not exist, this proceeding will be terminated, all cash 
deposits posted will be refunded, and suspension of liquidation will be 
lifted. If the ITC determines that such injury does exist, Commerce 
will issue an antidumping duty order directing CBP to assess, upon 
further instruction by Commerce, antidumping duties on all imports of 
the subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed in the ``Continuation of Suspension of 
Liquidation'' section above.

Administrative Protective Order (APO)

    This notice will serve as the only reminder to parties subject to 
an APO of their responsibility concerning the disposition of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or destruction 
of APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation subject to sanction.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: March 31, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Changes Since the Preliminary Determination
IV. Application of Facts Available and Use of Adverse Inferences
V. Discussion of the Issue
    Comment 1: Whether to Apply Total Adverse Facts Available (AFA) 
to Thai Harvest Ltd. (Thai Harvest)
    Comment 2: Whether Thai Harvest is Eligible for a Separate Rate
    Comment 3: Whether to Grant Thai Harvest's Byproduct Offset
    Comment 4: Whether to Continue to Use the Republic of 
T[uuml]rkiye (T[uuml]rkiye) as the Surrogate Country
    Comment 5: Whether to Revise the Surrogate Value (SV) for 
Jiangxi Tianyu Chemical Co., Ltd. (Jiangxi Tianyu)'s Liquid Sodium 
Hydroxide Input
    Comment 6: Whether to Use the Concentration-Adjusted ChemAnalyst 
Data to Value Jiangxi Tianyu's Chloroacetic Acid Input
    Comment 7: Whether to Use the Average Market-Economy Unit Price 
for the Phenol SV Calculation
    Comment 8: Whether to Continue to Apply AFA to Shandong Weifang 
Rainbow Chemical Co., Ltd. (Weifang Rainbow)
VI. Recommendation

[FR Doc. 2025-05886 Filed 4-4-25; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on April 7, 2025.

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