Notice2025-13322

Erythritol from 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

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Published
July 16, 2025

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) preliminarily determines that erythritol 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 April 1, 2024, through September 30, 2024. Interested parties are invited to comment on this preliminary determination.

Full Text

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<title>Federal Register, Volume 90 Issue 134 (Wednesday, July 16, 2025)</title>
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[Federal Register Volume 90, Number 134 (Wednesday, July 16, 2025)]
[Notices]
[Pages 31962-31965]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13322]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-192]


Erythritol from 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 erythritol 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 April 1, 2024, 
through September 30, 2024. Interested parties are invited to comment 
on this preliminary determination.

DATES: Applicable July 16, 2025.

FOR FURTHER INFORMATION CONTACT: Brian Smith or Hannah Lee, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-1766 or (202) 
482-1216, respectively.

[[Page 31963]]


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 January 2, 
2025.\1\ On May 7, 2025, Commerce postponed the preliminary 
determination of this investigation and the deadline is now July 11, 
2025.\2\
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    \1\ See Erythritol From the People's Republic of China: 
Initiation of Less-Than-Fair-Value Investigation, 90 FR 1957 
(January 10, 2025) (Initiation Notice).
    \2\ See Erythritol From the People's Republic of China: 
Postponement of Preliminary Determination of Antidumping Duty 
Investigation, 90 FR 19269 (May 7, 2025).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ 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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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of Erythritol from the 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 erythritol 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,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice.\6\ For a summary of the product coverage 
comments and rebuttal responses submitted to the record for this 
investigation, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\7\ 
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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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice.
    \6\ See Icon Foods, Inc.'s Letter, ``Request for Amended Scope 
Language,'' dated May 9, 2025; see also Sanyuan's Letter, ``Scope 
Comments,'' dated May 9, 202;, and Cargill, Incorporated Letter, 
``Rebuttal Scope Comments'' dated May 23, 2025.
    \7\ See Memorandum, ``Less-Than-Fair-Value and Countervailing 
Duty Investigations of Erythritol from the People's Republic of 
China: Preliminary Scope Decision Memorandum,'' dated concurrently 
with this preliminary determination (Preliminary Scope Decision 
Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Pursuant to sections 776(a) and (b) of the Act, 
Commerce preliminarily has 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,\8\ 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.\9\
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    \8\ See Initiation Notice, 90 FR at 1961.
    \9\ 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://enforcement.trade.gov/policy/bull05-1.pdf">https://enforcement.trade.gov/policy/bull05-1.pdf</a>.
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Separate Rates

    We have preliminarily granted a separate rate to certain companies 
that we did not select for individual examination.\10\ In calculating 
the estimated weighted-average dumping margin for non-individually 
examined separate rate companies in a non-market economy 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. The estimated weighted-average dumping 
margins in this preliminary determination are based entirely under 
section 776 of the Act. In an investigation where no estimated 
weighted-average dumping margins other than zero, de minimis, or those 
determined entirely under section 776 of the Act have been established 
for individually examined respondents, in accordance with section 
735(c)(5)(B) of the Act, Commerce typically calculates a simple average 
of the dumping margins alleged in the petition and applies the results 
to all other producers and exporters not individually examined.\11\ 
Therefore, in this preliminary determiantion, we are applying the 
simple average of the dumping margins alleged in the petition to the 
non-individually examined companies eligible for a separate rate. The 
simple average of the dumping margins allged in the Petition is 371.62 
percent.\12\
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    \10\ See the Prelimimary Decision Memorandum for additional 
details.
    \11\ See, e.g., Certain Preserved Mushrooms from Spain: Final 
Affirmative Determination of Sales Less Than Fair Value, 88 FR 18120 
(March 27, 2023).
    \12\ The dumping margins alleged in the Petition are 270.00 
percent, 305.86 percent, 393.28 percent, 438.32 percent, and 450.64 
percent. See Initiation Notice, and accompanying Checklist, 
``Antidumping Duty Investigation Initiation Checklist,'' dated 
January 2, 2025, at 7.
    \13\ The China-wide entity includes Dongxiao Biotechnology Co., 
Ltd. (Dongxiao) and Shandong Sanyuan Biotechnology Co., Ltd. 
(Sanyuan) the two producers selected as mandatory respondents in 
this investigation. See Preliminary Decision Memorandum at 2.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

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                                                                                     Estimated     Cash deposit
                                                                                     weighted-    rate (adjusted
                   Exporter                                 Producer                  average       for subsidy
                                                                                  dumping margin     offsets)
                                                                                     (percent)       (percent)
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Beijing Refine Biology Co., Ltd...............  Chuzhou Refine Biology Co., Ltd.          371.62          371.53

[[Page 31964]]

 
Hunan Nutramax Inc............................  Hunan Nutramax Inc..............          371.62          371.53
Shandong Newnature Biotechnology Co., Ltd.....  Shandong Sanyuan Biotechnology            371.62          371.53
                                                 Co., Ltd.
China-Wide Entity \13\........................  ................................          450.64          450.64
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* This rate is based on facts available with adverse inferences.

Suspension of Liquidation and Cash Deposit Requirements

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of subject merchandise as described in the scope of the investigation 
section 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 for estimated antidumping duties 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 China 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 China 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 above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits for estimated antidumping duties 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 and cash deposit 
requirements will remain in effect until further notice.

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a preliminary 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 
preliminarily applied AFA to the China-wide entity, including the 
mandatory respondents, in this investigation, in accordance with 
section 776 of the Act, and the applied AFA rate is based solely on the 
information included in the Petition, there are no calculations to 
disclose.\14\
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    \14\ Id.
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Verification

    Because the two mandatory respondents in this investigation did not 
provide information requested by Commerce, and Commerce preliminarily 
determines that both of the mandatory respoondents have been 
uncooperative, verification will not be conducted.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than 30 
days after the date of publication of this preliminary determination in 
the Federal Register. 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.\15\ 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.\16\
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    \15\ 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).
    \16\ 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 briefs 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.\17\ 
Further, we request that interested parties limit their executive 
summary of each issue to no more than 450 words, not including 
citations. We intend to use the 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 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).\18\
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    \17\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \18\ 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. Requests

[[Page 31965]]

should contain: 1) the party's name, address, and telephone number; 2) 
the number of participants and whether any participant is a foreign 
national; and 3) 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.

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 petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for postponement of a final antidumping 
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 June 16 and 17, 2025, pursuant to 19 CFR 351.210(e), both 
mandatory respondents, Dongxiao and Sanyuan, requested that Commerce 
postpone the final determination and that provisional measures be 
extended to a period not to exceed six months.\19\ 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 
exporters account 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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    \19\ See Dongxiao's Letter, ``Dongxiao's Request to Postpone 
Final Determination,'' dated June 16, 2025; see also Sanyuan's 
Letter, ``Request for Postponement of Final AD Determination,'' 
dated June 17, 2025.
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U.S. International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the 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 the subject 
merchandise are materially injuring, or threaten material injury to, 
the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).

    Dated: July 11, 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 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 and the CAS 
registry number are provided for convenience and customs purposes, 
the written description of the merchandise covered by this 
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. Adjustments to Cash Deposit Rates for Export Subsidies in the 
Companion Countervailing Duty Investigation
VII. Recommendation
[FR Doc. 2025-13322 Filed 7-15-25; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on July 16, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.