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
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Issuing agencies
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.
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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.
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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
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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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