Notice2025-09693
Monosodium Glutamate From the People's Republic of China: Final Affirmative Determination of Circumvention
Primary source
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Published
May 29, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that imports of monosodium glutamate (MSG) completed in Malaysia using glutamic acid produced in the People's Republic of China (China) are circumventing the antidumping duty (AD) order on MSG from China.
Full Text
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<title>Federal Register, Volume 90 Issue 102 (Thursday, May 29, 2025)</title>
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[Federal Register Volume 90, Number 102 (Thursday, May 29, 2025)]
[Notices]
[Pages 22702-22703]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-09693]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-992]
Monosodium Glutamate From the People's Republic of China: Final
Affirmative Determination of Circumvention
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
imports of monosodium glutamate (MSG) completed in Malaysia using
glutamic acid produced in the People's Republic of China (China) are
circumventing the antidumping duty (AD) order on MSG from China.
DATES: Applicable May 29, 2025.
FOR FURTHER INFORMATION CONTACT: Thomas Cloyd, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1246.
SUPPLEMENTARY INFORMATION:
Background
On February 21, 2025, Commerce published in the Federal Register
its Preliminary Determination that imports of MSG completed in Malaysia
using glutamic acid produced in China are circumventing the Order.\1\
Pursuant to section 781(e) of the Tariff Act of 1930, as amended (the
Act), on March 20, 2025, Commerce notified the U.S. International Trade
Commission (ITC) of its preliminary affirmative determination of
circumvention.\2\ The ITC did not request consultations with Commerce.
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\1\ See Monosodium Glutamate from the People's Republic of
China: Second Amended Final Determination of Sales at Less Than Fair
Value and Amended Antidumping Order, 80 FR 487 (January 6, 2015)
(Order); see also Monosodium Glutamate from the People's Republic of
China: Preliminary Affirmative Determination of Circumvention, 90 FR
10068 (February 21, 2025) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum (PDM).
\2\ See Commerce's Letter, ``Notification of Affirmative
Preliminary Determination of Circumvention,'' dated March 20, 2025.
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On April 28, 2025, CPF Legacy, LLC dba C. Pacific and JEFI
Enterprise (USA) Inc. (collectively, the U.S. Importers) and Ajinomoto
Health & Nutrition North America, Inc. (Ajinomoto NA) submitted case
briefs.\3\ On May 5, 2025, the U.S. Importers and Ajinomoto NA
submitted a letter in lieu of a rebuttal brief and a rebuttal brief,
respectively.\4\ On March 18, 2025, Commerce extended the deadline for
issuing the final determination in this circumvention inquiry until May
22, 2025.\5\
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\3\ See U.S. Importers' Letter, ``Importers' Administrative Case
Brief,'' dated April 28, 2025; see also Ajinomoto NA's Letter,
``Comments on Preliminary Determination,'' dated April 28, 2025.
\4\ See U.S. Importers' Letter, ``CPF & JEFI's Letter in Lieu of
Rebuttal Brief,'' dated May 5, 2025; see also Ajinomoto NA's Letter,
``Rebuttal Comments,'' dated May 5, 2025.
\5\ See Memorandum, ``Extension of Deadline for the Final
Determination in Circumvention Inquiry,'' dated March 18, 2025.
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For a summary of events that occurred since the Preliminary
Determination, as well as a full discussion of the issues raised by
parties for consideration in the final determination, see the Issues
and Decision Memorandum.\6\
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\6\ See Memorandum, ``Issues and Decision Memorandum for the
Circumvention Inquiry of the Antidumping Duty Order on Monosodium
Glutamate from the People's Republic of China,'' dated concurrently
with, and hereby adopted by, this notice (Issues and Decision
Memorandum).
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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 at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
Scope of the Order
The product covered by the scope of the Order is MSG from China.
For a full description of the scope of the Order, see Appendix I of
this notice.
Merchandise Subject to the Circumvention Inquiry
This circumvention inquiry covers MSG finished in Malaysia using
glutamic acid produced in China and subsequently exported from Malaysia
to the United States (inquiry merchandise).
Analysis of Comments Received
All issues raised in this inquiry are addressed in the Issues and
Decision Memorandum. A list of the issues raised is attached to this
notice as Appendix II. Based on our analysis of the comments received,
we made changes to the Preliminary Determination, as described below,
and at Comments 1 and 2 of the Issues and Decision Memorandum.
Methodology and Final Circumvention Determination
Commerce conducted this circumvention inquiry in accordance with
section 781(b) of the Act and 19 CFR 351.226. For this final
determination, Commerce relied on facts available under section 776(a)
of the Act, including facts available with adverse inferences (AFA)
under section 776(b) of the Act with respect to Ajinoriki, due to
Ajinoriki's failure to participate in Commerce's required on-site
verification of the information contained in Ajinoriki's questionnaire
responses. For further explanation of Commerce's decision to rely on
AFA with respect to Ajinoriki, see the Issues and Decision Memorandum.
As a result, in accordance with section 781(b) of the Act, Commerce
determines that the inquiry merchandise exported from Malaysia by
Ajinoriki is circumventing the Order. Furthermore, Commerce is applying
this affirmative determination of circumvention of the Order on a
country-wide basis. Also, because Commerce was unable to verify the
information which may support Ajinoriki's eligibility to certify, as
AFA, Ajinoriki is no longer eligible to certify that its shipments to
the United States of MSG, produced or exported by Ajinoriki do not
contain Chinese-origin glutamic acid. Finally, no other producer or
exporter of MSG has cooperated in this inquiry; as a result, Commerce
is applying this final affirmative determination of
[[Page 22703]]
circumvention on a country-wide basis. Thus, as a result of Commerce's
country-wide affirmative determination of circumvention, Commerce is
removing the certification process established in the Preliminary
Determination.\7\ In a future administrative review, companies may be
able to revisit the issue of eligibility for certifications of their
entries of inquiry merchandise.
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\7\ See Preliminary Determination, 90 FR at Appendix II.
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We have continued to apply the methodology relied upon for the
Preliminary Determination, including our use of AFA with respect to the
non-responsive companies: (1) Ajinoriki MSG Sdn Bhd; (2) Aruni
Enterprise M Sdn Bhd; (3) Habita Foods Industries Sdn Bhd; (4)
Delisauce World Foods Sdn Bhd; (5) Suntraco Food Industries Sdn Bhd;
(6) Yeo Hiap Seng (Malaysia) Berhad; (7) Bidor Kwong Heng Sdn Bhd; and
(8) Scigate Industries 002998063-A, pursuant to sections 776(a) and (b)
of the Act, for our final determination. As AFA, we continue to
determine that MSG exported to the United States by these non-
responsive companies are circumventing the Order. For a detailed
explanation of our determination, see the Preliminary Determination
PDM.
See the ``Suspension of Liquidation and Cash Deposit Requirements''
section, below, for details regarding suspension of liquidation and
cash deposit requirements.
Suspension of Liquidation and Cash Deposit Requirements
Based on the affirmative country-wide determinations of
circumvention, in accordance with 19 CFR 351.226(l)(3)(iii)(A) and (B)
and 19 CFR 351.227(l)(3)(iii), we will direct CBP to suspend
liquidation and require a cash deposit of estimated duties on all
unliquidated entries of MSG completed or assembled in Malaysia using
Chinese-origin glutamic acid, that were entered, or withdrawn from
warehouse, for consumption prior to 5/15/2024 (the date of initiation
of the circumvention inquiry), back to, and including, November 4,
2021,\8\ and (ii) that were entered, or withdrawn from warehouse, for
consumption on or after May 15, 2024.
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\8\ November 4, 2021, was the date Commerce's circumvention
regulations became effective. See Regulations To Improve
Administration and Enforcement of Antidumping and Countervailing
Duty Laws, 86 FR 52300 (September, 20, 2021).
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For all suspended U.S. entries of inquiry merchandise, the AD cash
deposit rate will be the cash deposit rate for the China-wide entity
(i.e., 56.54 percent).\9\ Commerce has established the following third-
country case number in the Automated Commercial Environment (ACE) for
such entries: Malaysia A-557-992-000.
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\9\ See Order.
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Cash deposits for entries of MSG from Malaysia already subject to
the Order should continue to be collected in accordance with existing
CBP instructions and Chinese ACE numbers for such entries: A-570-992.
These suspension of liquidation instructions and cash deposit
requirements will remain in effect until further notice.
Opportunity To Request an Administrative Review
Each year during the anniversary month of the publication of an AD
or CVD order, finding, or suspended investigation, an interested party,
as defined in section 771(9) of the Act, may request, in accordance
with 19 CFR 351.213, that Commerce conduct an administrative review of
that AD or CVD order, finding, or suspended investigation. Interested
parties who wish to request that Commerce conduct an administrative
review should wait until Commerce announces via the Federal Register
the next window during the anniversary month (e.g. November 2025) of
the Order to submit such requests.
Administrative Protective Order (APO)
This notice will serve as the only reminder to all parties subject
to an APO of their responsibility concerning the destruction 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 the terms of an
APO is a sanctionable violation.
Notification to Interested Parties
Commerce is issuing and publishing this notice in accordance with
sections 781(b) and 777(i) of the Act, and 19 CFR 351.226(g)(2).
Dated: May 22, 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 Order
The scope of this Order covers MSG, whether or not blended or in
solution with other products. Specifically, MSG that has been
blended or is in solution with other product(s) is included in this
scope when the resulting mix contains 15 percent or more of MSG by
dry weight. Products with which MSG may be blended include, but are
not limited to, salts, sugars, starches, maltodextrins, and various
seasonings. Further, MSG is included in this order regardless of
physical form (including, but not limited to, in monohydrate or
anhydrous form, or as substrates, solutions, dry powders of any
particle size, or unfinished forms such as MSG slurry), end-use
application, or packaging.
MSG in monohydrate form has a molecular formula of C5H8NO4Na-
H2O, a Chemical Abstract Service (CAS) registry number of 6106-04-3,
and a Unique Ingredient Identifier (UNII) number of W81N5U6R6U. MSG
in anhydrous form has a molecular formula of C5H8NO4Na, a CAS
registry number of l42-47-2, and a UNII number of C3C196L9FG.
Merchandise covered by the scope of this Order is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) at subheading 2922.42.10.00. Merchandise subject to the
Order may also enter under HTSUS subheadings 2922.42.50.00,
2103.90.72.00, 2103.90.74.00, 2103.90.78.00, 2103.90.80.00, and
2103.90.90.91. The tariff classifications, CAS registry numbers, and
UNII numbers are provided for convenience and customs purposes;
however, the written description of the scope 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. Use of Facts Otherwise Available and Application of Adverse
Inferences
V. Discussion of the Issues
Comment 1: Whether to Apply AFA to Ajinoriki
Comment 2: Whether Ajinoriki Should Be Ineligible for the
Certification Program
Comment 3: Whether Commerce Should Apply Antidumping Cash
Deposits Prior to the Date of the Initiation of the Circumvention
Inquiry
Comment 4: Whether the U.S. Importers Should Have Been Allowed
to Submit New Factual Information
Comment 5: Whether Commerce Should Reverse Its Circumvention
Finding
VI. Recommendation
[FR Doc. 2025-09693 Filed 5-28-25; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on May 29, 2025.
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