83_FR_23988 83 FR 23888 - Sodium Gluconate, Gluconic Acid and Derivative Products From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination

83 FR 23888 - Sodium Gluconate, Gluconic Acid and Derivative Products From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 100 (May 23, 2018)

Page Range23888-23890
FR Document2018-10566

The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of sodium gluconate, gluconic acid and derivative products (GNA products) from the People's Republic of China (China). The period of investigation is January 1, 2016, through December 31, 2016. Interested parties are invited to comment on this preliminary determination.

Federal Register, Volume 83 Issue 100 (Wednesday, May 23, 2018)
[Federal Register Volume 83, Number 100 (Wednesday, May 23, 2018)]
[Notices]
[Pages 23888-23890]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10566]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-072]


Sodium Gluconate, Gluconic Acid and Derivative Products From the 
People's Republic of China: Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of sodium gluconate, gluconic acid and derivative products 
(GNA products) from the People's Republic of China (China). The period 
of investigation is January 1, 2016, through December 31, 2016. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable May 23, 2018.

FOR FURTHER INFORMATION CONTACT: Robert Galantucci or Jonathan Hill, 
AD/CVD Operations, Office IV, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: 202-482-2923 or 202-482-
3518, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on January 4, 
2018.\1\ Commerce exercised its discretion to toll all deadlines 
affected by the closure of the Federal Government from January 20 
through January 22, 2018.\2\ On February 7, 2018, Commerce published 
its postponement of the deadline for the preliminary determination of 
the investigation for the full 130 days permitted under section 
703(c)(1)(A) of the Act and 19 CFR 351.205(b)(2) until May 2, 2018.\3\
---------------------------------------------------------------------------

    \1\ See Sodium Gluconate, Gluconic Acid, and Derivative Products 
From the People's Republic of China: Initiation of Countervailing 
Duty Investigation, 83 FR 499 (January 4, 2018) (Initiation Notice).
    \2\ See Memorandum, ``Deadlines Affected by the Shutdown of the 
Federal Government,'' dated January 23, 2018. (Tolling Memorandum). 
All deadlines in this segment of the proceeding have been extended 
by 3 days.
    \3\ See Sodium Gluconate, Gluconic Acid and Derivative Products 
From the People's Republic of China: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 83 FR 5401 
(February 7, 2018).
---------------------------------------------------------------------------

    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\4\ A list of topics discussed 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 (AD) and Countervailing 
Duty (CVD) Centralized Electronic Service System (ACCESS). ACCESS is 
available to registered users at http://access.trade.gov, and is 
available to all parties in the Central Records Unit, Room B8024 of the 
main Department of Commerce building. In addition, a complete version 
of the Preliminary Decision Memorandum can be accessed directly at 
http://enforcement.trade.gov/frn/. The signed and electronic versions 
of the Preliminary Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination: Countervailing Duty Investigation of 
Sodium Gluconate, Gluconic Acid and Derivative Products from the 
People's Republic of China,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are sodium gluconate, 
gluconic acid and derivative products 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, we set 
aside a period of time in our Initiation Notice for parties to raise 
issues regarding product coverage, and encouraged all parties to submit 
comments within 20 calendar days of the signature date of that notice. 
We received several comments concerning the scope of the AD and CVD 
investigations of GNA products from China.
    We are currently evaluating the scope comments filed by interested 
parties. We intend to issue our preliminary decision regarding the 
scope of the AD and CVD investigations in the preliminary determination 
of the companion AD investigation, which is due for signature on July 
2, 2018. We will incorporate the scope decisions from the AD 
investigation into the scope of the final CVD determination after 
considering any relevant comments submitted in case and rebuttal 
briefs.

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, We preliminarily determine that there is a subsidy, 
i.e., a financial contribution by an ``authority'' that confers a 
benefit on the recipient, and that the subsidy is specific.\5\ For a 
full description of the methodology underlying our

[[Page 23889]]

preliminary conclusions, see the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------

    We note that, in making these findings, we relied on facts 
otherwise available. Additionally, because we find that the mandatory 
respondents did not act to the best of their ability to respond to our 
requests for information, and therefore impeded this investigation, we 
drew an adverse inference where appropriate in selecting from among the 
facts otherwise available.\6\
---------------------------------------------------------------------------

    \6\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of GNA products 
from China, based on a request made by PMP Fermentation Products, Inc. 
(the petitioner).\7\ Consequently, the final CVD determination will be 
issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than September 17, 2018.\8\
---------------------------------------------------------------------------

    \7\ See Letter from the petitioner, ``Countervailing Duty 
Investigation of Sodium Gluconate, Gluconic Acid and Derivative 
Products From the People's Republic of China: PMP's Request to Align 
the Countervailing Duty Final Determination with the Companion 
Antidumping Final Determination,'' dated April 12, 2018.
    \8\ See Sodium Gluconate, Gluconic Acid, and Derivative Products 
From the People's Republic of China: Postponement of Preliminary 
Determination in the Less-Than-Fair-Value Investigation, 83 FR 19050 
(May 1, 2018).
---------------------------------------------------------------------------

Adverse Facts Available

    In accordance with sections 776(a)(1), 776(a)(2), and 776(b) of the 
Act, we applied facts otherwise available with an adverse inference to 
assign countervailable subsidy rates to non-cooperative mandatory 
respondents Qingdao Dongxiao Enterprise Co., Ltd. (Qingdao Dongxiao), 
Shandong Fuyang Biotechnology Co. (Fuyang), Shandong Kaison Biochemical 
Co Ltd (Kaison), and Tongxiang Hongyu Chemical Co., Ltd. (Hongyu 
Chemical). Hongyu Chemical, Kaison and Qingdao Dongxiao did not respond 
to Commerce's request for necessary information, and therefore impeded 
this investigation. Accordingly, we drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.
    With respect to Fuyang, we find that certain of Fuyang's 
submissions remain incomplete, or conflict with other record evidence. 
We find the use of facts available is appropriate because Fuyang did 
not provide Commerce with necessary information in the form and manner 
requested and otherwise impeded the proceeding. Furthermore, we find 
that Fuyang failed to act to the best of its ability in providing 
Commerce with the requested information, thereby warranting the 
application of an adverse inference. For further information, see ``Use 
of Facts Otherwise Available and Adverse Inferences'' in the 
Preliminary Decision Memorandum.\9\
---------------------------------------------------------------------------

    \9\ Section 782(i) of the Act requires Commerce to verify a 
respondent's data as part of an investigation. However, because we 
are preliminarily applying adverse facts available, pursuant to 
sections 776(a) and (b) of the Act, to each of the respondents, we 
do not intend to conduct verification in this investigation.
---------------------------------------------------------------------------

All-Others Rate

    With respect to the all-others rate, section 705(c)(5)(A) of the 
Act provides that if the countervailable subsidy rates established for 
all exporters and producers individually investigated are determined 
entirely in accordance with section 776 of the Act, Commerce may use 
any reasonable method to establish an all-others rate for exporters and 
producers not individually investigated. In this case, as noted above, 
the rates assigned to Fuyang, Hongyu Chemical, Kaison and Qingdao 
Dongxiao are based entirely on facts otherwise available, with an 
adverse inference, pursuant to section 776 of the Act. There is no 
other information on the record with which to determine an all-others 
rate. Accordingly, pursuant to section 705(c)(5)(A)(ii) of the Act, we 
are using ``any reasonable method'' to establish the all-others rate, 
and have established the all-others rate by applying the 
countervailable subsidy rates assigned to mandatory respondents Fuyang, 
Hongyu Chemical, Kaison and Qingdao Dongxiao.
    Commerce summarizes its preliminary countervailable subsidy rates 
in the table below:

------------------------------------------------------------------------
                                                                Subsidy
                      Producer/exporter                          rate
                                                               (percent)
------------------------------------------------------------------------
Qingdao Dongxiao Enterprise Co., Ltd........................      194.67
Shandong Fuyang Biotechnology Co............................      194.67
Shandong Kaison Biochemical Co Ltd..........................      194.67
Tongxiang Hongyu Chemical Co., Ltd..........................      194.67
All-Others..................................................      194.67
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of all entries of GNA products from China as 
described in the scope of the investigation entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Public Comment

    Interested parties may submit case and rebuttal briefs, as well as 
request a hearing. Case briefs may be submitted no later than 30 days 
after the publication of this preliminary determination in the Federal 
Register, and rebuttal briefs, limited to issues raised in the case 
briefs, may be submitted no later than five days after the deadline for 
case briefs. Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this investigation are 
encouraged to submit with each argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities.
    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 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 the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If 
Commerce's final determination is affirmative, the ITC will make its 
final determination before the later of 120 days after the date of this 
preliminary determination or 45 days after Commerce's final 
determination.

[[Page 23890]]

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: May 2, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers all grades of sodium 
gluconate, gluconic acid, liquid gluconate, and glucono delta 
lactone (GDL) (collectively, GNA products), regardless of physical 
form (including, but not limited to substrates; solutions; dry 
granular form or powders, regardless of particle size; or as a 
slurry). The scope also includes GNA products that have been blended 
or are in solution with other product(s) where the resulting mix 
contains 35 percent or more of sodium gluconate, gluconic acid, 
liquid gluconate, and/or GDL by dry weight.
    Sodium gluconate has a molecular formula of 
NaC6H11O7. Sodium gluconate has a 
Chemical Abstract Service (CAS) registry number of 527-07-1, and can 
also be called ``sodium salt of gluconic acid'' and/or sodium 2, 3, 
4, 5, 6 pentahydroxyhexanoate. Gluconic acid has a molecular formula 
of C6H12O7. Gluconic acid has a CAS 
registry number of 526-95-4, and can also be called 2, 3, 4, 5, 6 
pentahydroxycaproic acid. Liquid gluconate is a blend consisting 
only of gluconic acid and sodium gluconate in an aqueous solution. 
Liquid gluconate has CAS registry numbers of 527-07-1, 526-95-4, and 
7732-18-5, and can also be called 2, 3, 4, 5, 6-pentahydroxycaproic 
acid-hexanoate. GDL has a molecular formula of 
C6H10O6. GDL has a CAS registry 
number of 90-80-2, and can also be called d-glucono-1,5-lactone.
    The merchandise covered by the scope of this investigation is 
currently classified in the Harmonized Tariff Schedule of the United 
States (HTSUS) under subheadings 2918.16.1000, 2918.16.5010, and 
2932.20.5020. Merchandise covered by the scope may also enter under 
HTSUS subheadings 2918.16.5050, 3824.99.2890, and 3824.99.9295. 
Although the HTSUS subheadings and CAS registry numbers are provided 
for convenience and customs purposes, the written description of the 
merchandise is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. New Subsidy Allegation
VI. Alignment
VII. Injury Test
VIII. Application of the CVD Law to Imports from China
IX. Attribution of Subsidies
X. Use of Facts Otherwise Available and Adverse Inferences
XI. Calculation of the All-Others Rate
XII. ITC Notification
XIII. Recommendation

[FR Doc. 2018-10566 Filed 5-22-18; 8:45 am]
 BILLING CODE 3510-DS-P



                                               23888                       Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices

                                               occurred and the subsequent assessment                  SUMMARY:  The Department of Commerce                  Decision Memorandum is a public
                                               of doubled antidumping duties.                          (Commerce) preliminarily determines                   document and is on file electronically
                                                                                                       that countervailable subsidies are being              via Enforcement and Compliance’s
                                               Administrative Protective Order
                                                                                                       provided to producers and exporters of                Antidumping (AD) and Countervailing
                                                 This notice also serves as a reminder                 sodium gluconate, gluconic acid and                   Duty (CVD) Centralized Electronic
                                               to parties subject to administrative                    derivative products (GNA products)                    Service System (ACCESS). ACCESS is
                                               protective order (APO) of their                         from the People’s Republic of China                   available to registered users at http://
                                               responsibility concerning the return or                 (China). The period of investigation is               access.trade.gov, and is available to all
                                               destruction of proprietary information                  January 1, 2016, through December 31,                 parties in the Central Records Unit,
                                               disclosed under APO in accordance                       2016. Interested parties are invited to               Room B8024 of the main Department of
                                               with 19 CFR 351.305(a)(3), which                        comment on this preliminary                           Commerce building. In addition, a
                                               continues to govern business                            determination.                                        complete version of the Preliminary
                                               proprietary information in this segment                                                                       Decision Memorandum can be accessed
                                                                                                       DATES: Applicable May 23, 2018.
                                               of the proceeding. Timely written                                                                             directly at http://enforcement.trade.gov/
                                               notification of the return/destruction of               FOR FURTHER INFORMATION CONTACT:
                                                                                                       Robert Galantucci or Jonathan Hill, AD/               frn/. The signed and electronic versions
                                               APO materials, or conversion to judicial                                                                      of the Preliminary Decision
                                               protective order, is hereby requested.                  CVD Operations, Office IV, Enforcement
                                                                                                       and Compliance, International Trade                   Memorandum are identical in content.
                                               Failure to comply with the regulations
                                               and the terms of an APO is a                            Administration, U.S. Department of                    Scope of the Investigation
                                               sanctionable violation.                                 Commerce, 1401 Constitution Avenue
                                                 We are issuing and publishing this                    NW, Washington, DC 20230; telephone:                     The products covered by this
                                               notice in accordance with sections                      202–482–2923 or 202–482–3518,                         investigation are sodium gluconate,
                                               751(a)(1) and 777(i)(1) of the Act and 19               respectively.                                         gluconic acid and derivative products
                                               CFR 351.213(h).                                         SUPPLEMENTARY INFORMATION:
                                                                                                                                                             from China. For a complete description
                                                                                                                                                             of the scope of this investigation, see
                                                 Dated: May 17, 2018.                                  Background                                            Appendix I.
                                               Gary Taverman,
                                                                                                          This preliminary determination is                  Scope Comments
                                               Deputy Assistant Secretary for Antidumping              made in accordance with section 703(b)
                                               and Countervailing Duty Operations,
                                                                                                       of the Tariff Act of 1930, as amended                    In accordance with the preamble to
                                               performing the non-exclusive functions and
                                               duties of the Assistant Secretary for                   (the Act). Commerce published the                     Commerce’s regulations, we set aside a
                                               Enforcement and Compliance.                             notice of initiation of this investigation            period of time in our Initiation Notice
                                                                                                       on January 4, 2018.1 Commerce                         for parties to raise issues regarding
                                               Appendix                                                exercised its discretion to toll all                  product coverage, and encouraged all
                                               List of Topics Discussed in the Issues and              deadlines affected by the closure of the              parties to submit comments within 20
                                               Decisions Memorandum                                    Federal Government from January 20                    calendar days of the signature date of
                                               I. Summary                                              through January 22, 2018.2 On February                that notice. We received several
                                               II. Background                                          7, 2018, Commerce published its                       comments concerning the scope of the
                                               III. Scope of the Order                                 postponement of the deadline for the                  AD and CVD investigations of GNA
                                               IV. Discussion of the Issues                            preliminary determination of the                      products from China.
                                                  Comment 1: Use of Prolamsa’s Revised                 investigation for the full 130 days
                                                     Databases                                                                                                  We are currently evaluating the scope
                                                                                                       permitted under section 703(c)(1)(A) of               comments filed by interested parties.
                                                  Comment 2: Revision of POR in Prolamsa’s
                                                     Margin Program                                    the Act and 19 CFR 351.205(b)(2) until                We intend to issue our preliminary
                                                  Comment 3: Proper CONNUMs to Use in                  May 2, 2018.3                                         decision regarding the scope of the AD
                                                     Prolamsa’s Margin Program                            For a complete description of the                  and CVD investigations in the
                                                  Comment 4: Prolamsa’s Warehousing                    events that followed the initiation of                preliminary determination of the
                                                     Expenses                                          this investigation, see the Preliminary               companion AD investigation, which is
                                                  Comment 5: AFA Rate for Maquilacero                  Decision Memorandum.4 A list of topics
                                                  Comment 6: Maquilacero Liquidation                                                                         due for signature on July 2, 2018. We
                                                                                                       discussed in the Preliminary Decision                 will incorporate the scope decisions
                                                     Instructions                                      Memorandum is included as Appendix
                                               V. Recommendation                                                                                             from the AD investigation into the scope
                                                                                                       II to this notice. The Preliminary                    of the final CVD determination after
                                               [FR Doc. 2018–11031 Filed 5–22–18; 8:45 am]
                                               BILLING CODE 3510–DS–P                                     1 See Sodium Gluconate, Gluconic Acid, and
                                                                                                                                                             considering any relevant comments
                                                                                                       Derivative Products From the People’s Republic of     submitted in case and rebuttal briefs.
                                                                                                       China: Initiation of Countervailing Duty
                                                                                                       Investigation, 83 FR 499 (January 4, 2018)
                                                                                                                                                             Methodology
                                               DEPARTMENT OF COMMERCE
                                                                                                       (Initiation Notice).
                                                                                                          2 See Memorandum, ‘‘Deadlines Affected by the
                                                                                                                                                               Commerce is conducting this
                                               International Trade Administration                                                                            investigation in accordance with section
                                                                                                       Shutdown of the Federal Government,’’ dated
                                               [C–570–072]                                             January 23, 2018. (Tolling Memorandum). All           701 of the Act. For each of the subsidy
                                                                                                       deadlines in this segment of the proceeding have      programs found countervailable, We
                                                                                                       been extended by 3 days.                              preliminarily determine that there is a
                                               Sodium Gluconate, Gluconic Acid and                        3 See Sodium Gluconate, Gluconic Acid and
                                               Derivative Products From the People’s                   Derivative Products From the People’s Republic of
                                                                                                                                                             subsidy, i.e., a financial contribution by
                                               Republic of China: Preliminary                          China: Postponement of Preliminary Determination      an ‘‘authority’’ that confers a benefit on
daltland on DSKBBV9HB2PROD with NOTICES




                                               Affirmative Countervailing Duty                         in the Countervailing Duty Investigation, 83 FR       the recipient, and that the subsidy is
                                               Determination and Alignment of Final                    5401 (February 7, 2018).                              specific.5 For a full description of the
                                                                                                          4 See Memorandum, ‘‘Decision Memorandum for
                                               Determination With Final Antidumping                                                                          methodology underlying our
                                                                                                       the Preliminary Affirmative Determination:
                                               Duty Determination                                      Countervailing Duty Investigation of Sodium
                                                                                                       Gluconate, Gluconic Acid and Derivative Products        5 See sections 771(5)(B) and (D) of the Act
                                               AGENCY:  Enforcement and Compliance,                    from the People’s Republic of China,’’ dated          regarding financial contribution; section 771(5)(E)
                                               International Trade Administration,                     concurrently with, and hereby adopted by, this        of the Act regarding benefit; and section 771(5A) of
                                               Department of Commerce.                                 notice (Preliminary Decision Memorandum).             the Act regarding specificity.



                                          VerDate Sep<11>2014   17:33 May 22, 2018   Jkt 244001   PO 00000   Frm 00005   Fmt 4703   Sfmt 4703   E:\FR\FM\23MYN1.SGM   23MYN1


                                                                            Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices                                                        23889

                                               preliminary conclusions, see the                        did not provide Commerce with                                    Commerce will direct U.S. Customs and
                                               Preliminary Decision Memorandum.                        necessary information in the form and                            Border Protection (CBP) to suspend
                                                  We note that, in making these                        manner requested and otherwise                                   liquidation of all entries of GNA
                                               findings, we relied on facts otherwise                  impeded the proceeding. Furthermore,                             products from China as described in the
                                               available. Additionally, because we find                we find that Fuyang failed to act to the                         scope of the investigation entered, or
                                               that the mandatory respondents did not                  best of its ability in providing                                 withdrawn from warehouse, for
                                               act to the best of their ability to respond             Commerce with the requested                                      consumption on or after the date of
                                               to our requests for information, and                    information, thereby warranting the                              publication of this notice in the Federal
                                               therefore impeded this investigation, we                application of an adverse inference. For                         Register. Further, pursuant to 19 CFR
                                               drew an adverse inference where                         further information, see ‘‘Use of Facts                          351.205(d), Commerce will instruct CBP
                                               appropriate in selecting from among the                 Otherwise Available and Adverse                                  to require a cash deposit equal to the
                                               facts otherwise available.6                             Inferences’’ in the Preliminary Decision                         rates indicated above.
                                               Alignment                                               Memorandum.9
                                                                                                                                                                        Public Comment
                                                  As noted in the Preliminary Decision                 All-Others Rate
                                               Memorandum, in accordance with                             With respect to the all-others rate,                             Interested parties may submit case
                                               section 705(a)(1) of the Act and 19 CFR                 section 705(c)(5)(A) of the Act provides                         and rebuttal briefs, as well as request a
                                               351.210(b)(4), Commerce is aligning the                 that if the countervailable subsidy rates                        hearing. Case briefs may be submitted
                                               final CVD determination in this                         established for all exporters and                                no later than 30 days after the
                                               investigation with the final                            producers individually investigated are                          publication of this preliminary
                                               determination in the companion AD                       determined entirely in accordance with                           determination in the Federal Register,
                                               investigation of GNA products from                      section 776 of the Act, Commerce may                             and rebuttal briefs, limited to issues
                                               China, based on a request made by PMP                   use any reasonable method to establish                           raised in the case briefs, may be
                                               Fermentation Products, Inc. (the                        an all-others rate for exporters and                             submitted no later than five days after
                                               petitioner).7 Consequently, the final                   producers not individually investigated.                         the deadline for case briefs. Pursuant to
                                               CVD determination will be issued on                     In this case, as noted above, the rates                          19 CFR 351.309(c)(2) and (d)(2), parties
                                               the same date as the final AD                           assigned to Fuyang, Hongyu Chemical,                             who submit case briefs or rebuttal briefs
                                               determination, which is currently                       Kaison and Qingdao Dongxiao are based                            in this investigation are encouraged to
                                               scheduled to be issued no later than                    entirely on facts otherwise available,                           submit with each argument: (1) A
                                               September 17, 2018.8                                    with an adverse inference, pursuant to                           statement of the issue; (2) a brief
                                               Adverse Facts Available                                 section 776 of the Act. There is no other                        summary of the argument; and (3) a
                                                                                                       information on the record with which to                          table of authorities.
                                                 In accordance with sections 776(a)(1),                determine an all-others rate.
                                               776(a)(2), and 776(b) of the Act, we                                                                                        Pursuant to 19 CFR 351.310(c),
                                                                                                       Accordingly, pursuant to section
                                               applied facts otherwise available with                                                                                   interested parties who wish to request a
                                                                                                       705(c)(5)(A)(ii) of the Act, we are using
                                               an adverse inference to assign                                                                                           hearing, limited to issues raised in the
                                                                                                       ‘‘any reasonable method’’ to establish
                                               countervailable subsidy rates to non-                                                                                    case and rebuttal briefs, must submit a
                                                                                                       the all-others rate, and have established
                                               cooperative mandatory respondents                       the all-others rate by applying the                              written request to the Assistant
                                               Qingdao Dongxiao Enterprise Co., Ltd.                   countervailable subsidy rates assigned                           Secretary for Enforcement and
                                               (Qingdao Dongxiao), Shandong Fuyang                     to mandatory respondents Fuyang,                                 Compliance, U.S. Department of
                                               Biotechnology Co. (Fuyang), Shandong                    Hongyu Chemical, Kaison and Qingdao                              Commerce, within 30 days after the date
                                               Kaison Biochemical Co Ltd (Kaison),                     Dongxiao.                                                        of publication of this notice. Requests
                                               and Tongxiang Hongyu Chemical Co.,                         Commerce summarizes its                                       should contain the party’s name,
                                               Ltd. (Hongyu Chemical). Hongyu                          preliminary countervailable subsidy                              address, and telephone number, the
                                               Chemical, Kaison and Qingdao                            rates in the table below:                                        number of participants, whether any
                                               Dongxiao did not respond to                                                                                              participant is a foreign national, and a
                                               Commerce’s request for necessary                                                                              Subsidy    list of the issues to be discussed. If a
                                               information, and therefore impeded this                            Producer/exporter                           rate      request for a hearing is made, Commerce
                                               investigation. Accordingly, we drew an                                                                       (percent)   intends to hold the hearing at the U.S.
                                               adverse inference where appropriate in                  Qingdao Dongxiao Enterprise                                      Department of Commerce, 1401
                                               selecting from among the facts                            Co., Ltd ...................................          194.67   Constitution Avenue NW, Washington,
                                               otherwise available.                                    Shandong Fuyang Biotechnology                                    DC 20230, at a time and date to be
                                                 With respect to Fuyang, we find that                    Co ............................................       194.67   determined. Parties should confirm by
                                               certain of Fuyang’s submissions remain                  Shandong Kaison Biochemical                                      telephone the date, time, and location of
                                               incomplete, or conflict with other                        Co Ltd .....................................          194.67   the hearing two days before the
                                               record evidence. We find the use of facts               Tongxiang Hongyu Chemical
                                                                                                         Co., Ltd ...................................          194.67
                                                                                                                                                                        scheduled date.
                                               available is appropriate because Fuyang
                                                                                                       All-Others ....................................         194.67   International Trade Commission
                                                 6 See sections 776(a) and (b) of the Act.                                                                              Notification
                                                 7 See Letter from the petitioner, ‘‘Countervailing    Suspension of Liquidation
                                               Duty Investigation of Sodium Gluconate, Gluconic          In accordance with section                                        In accordance with section 703(f) of
                                               Acid and Derivative Products From the People’s                                                                           the Act, Commerce will notify the
                                                                                                       703(d)(1)(B) and (d)(2) of the Act,
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                                               Republic of China: PMP’s Request to Align the
                                               Countervailing Duty Final Determination with the
                                                                                                                                                                        International Trade Commission (ITC) of
                                               Companion Antidumping Final Determination,’’              9 Section 782(i) of the Act requires Commerce to               its determination. If Commerce’s final
                                               dated April 12, 2018.                                   verify a respondent’s data as part of an                         determination is affirmative, the ITC
                                                 8 See Sodium Gluconate, Gluconic Acid, and            investigation. However, because we are                           will make its final determination before
                                               Derivative Products From the People’s Republic of       preliminarily applying adverse facts available,
                                               China: Postponement of Preliminary Determination        pursuant to sections 776(a) and (b) of the Act, to
                                                                                                                                                                        the later of 120 days after the date of this
                                               in the Less-Than-Fair-Value Investigation, 83 FR        each of the respondents, we do not intend to                     preliminary determination or 45 days
                                               19050 (May 1, 2018).                                    conduct verification in this investigation.                      after Commerce’s final determination.


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                                               23890                       Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices

                                               Notification to Interested Parties                           from China                                       351.221(c)(1)(i), on November 13, 2017,
                                                                                                       IX. Attribution of Subsidies                          Commerce published a notice of
                                                 This determination is issued and                      X. Use of Facts Otherwise Available and
                                               published pursuant to sections 703(f)                                                                         initiation of an administrative review of
                                                                                                            Adverse Inferences                               the antidumping duty order on raw
                                               and 777(i) of the Act and 19 CFR                        XI. Calculation of the All-Others Rate
                                               351.205(c).                                             XII. ITC Notification
                                                                                                                                                             flexible magnets from China.3 This
                                                                                                       XIII. Recommendation                                  administrative review covers QPP’s
                                                 Dated: May 2, 2018.                                                                                         suppliers, Som International Limited
                                               Gary Taverman,                                          [FR Doc. 2018–10566 Filed 5–22–18; 8:45 am]
                                                                                                                                                             and Wenzhou Haibao Printing Co., LTD,
                                               Deputy Assistant Secretary for Antidumping              BILLING CODE 3510–DS–P
                                                                                                                                                             during the period September 1, 2016,
                                               and Countervailing Duty Operations,                                                                           through August 31, 2017. On January
                                               performing the non-exclusive functions and                                                                    16, 2018, QPP withdrew its request for
                                               duties of the Assistant Secretary for                   DEPARTMENT OF COMMERCE
                                               Enforcement and Compliance.
                                                                                                                                                             an administrative review.4
                                                                                                       International Trade Administration                    Rescission of Review
                                               Appendix I
                                                                                                       [A–570–922]                                             Pursuant to 19 CFR 351.213(d)(1),
                                               Scope of the Investigation
                                                                                                                                                             Commerce will rescind an
                                                  The scope of this investigation covers all           Raw Flexible Magnets From the                         administrative review if the party that
                                               grades of sodium gluconate, gluconic acid,              People’s Republic of China:                           requested the review withdraws its
                                               liquid gluconate, and glucono delta lactone             Rescission of Antidumping Duty
                                               (GDL) (collectively, GNA products),                                                                           request within 90 days of the
                                                                                                       Administrative Review; 2016–2017                      publication date of the notice of
                                               regardless of physical form (including, but
                                               not limited to substrates; solutions; dry               AGENCY:  Enforcement and Compliance,                  initiation of the requested review. QPP
                                               granular form or powders, regardless of                 International Trade Administration,                   withdrew its review request with
                                               particle size; or as a slurry). The scope also          Department of Commerce.                               respect to Som International Limited
                                               includes GNA products that have been                                                                          and Wenzhou Haibao Printing Co., LTD,
                                               blended or are in solution with other                   SUMMARY: The Department of Commerce
                                                                                                       (Commerce) is rescinding its                          before the 90-day deadline, and no other
                                               product(s) where the resulting mix contains                                                                   party requested an administrative
                                               35 percent or more of sodium gluconate,                 administrative review of raw flexible
                                               gluconic acid, liquid gluconate, and/or GDL             magnets from the People’s Republic of                 review of the antidumping duty order.
                                               by dry weight.                                          China (China) based on the timely                     Therefore, in accordance with 19 CFR
                                                  Sodium gluconate has a molecular formula             withdrawal of all requests for review,                351.213(d)(1), we are rescinding this
                                               of NaC6H11O7. Sodium gluconate has a                    for the period of review (POR)                        administrative review in its entirety.
                                               Chemical Abstract Service (CAS) registry
                                               number of 527–07–1, and can also be called
                                                                                                       September 1, 2016, through August 31,                 Assessment
                                               ‘‘sodium salt of gluconic acid’’ and/or                 2017.                                                   Commerce will instruct U.S. Customs
                                               sodium 2, 3, 4, 5, 6 pentahydroxyhexanoate.             DATES: Applicable May 23, 2018.                       and Border Protection (CBP) to assess
                                               Gluconic acid has a molecular formula of                FOR FURTHER INFORMATION CONTACT:                      antidumping duties on all appropriate
                                               C6H12O7. Gluconic acid has a CAS registry               Ariela Garvett or Maliha Khan, AD/CVD                 entries of raw flexible magnets from
                                               number of 526–95–4, and can also be called              Operations, Office IV, Enforcement and
                                               2, 3, 4, 5, 6 pentahydroxycaproic acid. Liquid                                                                China. Antidumping duties shall be
                                               gluconate is a blend consisting only of                 Compliance, International Trade                       assessed at rates equal to the cash
                                               gluconic acid and sodium gluconate in an                Administration, U.S. Department of                    deposit of estimated antidumping duties
                                               aqueous solution. Liquid gluconate has CAS              Commerce, 1401 Constitution Avenue                    required at the time of entry, or
                                               registry numbers of 527–07–1, 526–95–4, and             NW, Washington, DC 20230; telephone:                  withdrawal from warehouse, for
                                               7732–18–5, and can also be called 2, 3, 4, 5,           (202) 482–3609 and (202) 482–0895,                    consumption in accordance with 19
                                               6-pentahydroxycaproic acid-hexanoate. GDL               respectively.                                         CFR 351.212(c)(1)(i). Commerce intends
                                               has a molecular formula of C6H10O6. GDL has                                                                   to issue appropriate assessment
                                               a CAS registry number of 90–80–2, and can               SUPPLEMENTARY INFORMATION:
                                               also be called d-glucono-1,5-lactone.                                                                         instructions to CBP 15 days after the
                                                                                                       Background                                            date of publication of this notice in the
                                                  The merchandise covered by the scope of
                                               this investigation is currently classified in             On September 1, 2017, Commerce                      Federal Register.
                                               the Harmonized Tariff Schedule of the                   published in the Federal Register a                   Notification to Importers
                                               United States (HTSUS) under subheadings                 notice of ‘‘Opportunity to Request
                                               2918.16.1000, 2918.16.5010, and                         Administrative Review’’ of the                          This notice also serves as a final
                                               2932.20.5020. Merchandise covered by the                antidumping duty order on raw flexible                reminder to importers for whom this
                                               scope may also enter under HTSUS                                                                              review is being rescinded of their
                                               subheadings 2918.16.5050, 3824.99.2890,
                                                                                                       magnets from China for the above POR.1
                                                                                                       On October 2, 2017, in accordance with                responsibility under 19 CFR
                                               and 3824.99.9295. Although the HTSUS
                                                                                                       section 751(a) of the Tariff Act of 1930,             351.402(f)(2) to file a certificate
                                               subheadings and CAS registry numbers are
                                               provided for convenience and customs                    as amended (the Act), and 19 CFR                      regarding the reimbursement of
                                               purposes, the written description of the                351.213(b), Commerce received a timely                antidumping duties prior to liquidation
                                               merchandise is dispositive.                             request from Qwik Picz Photo Booth,                   of the relevant entries during this
                                                                                                       LLC (QPP) to conduct an administrative                review period. Failure to comply with
                                               Appendix II                                             review.2                                              this requirement could result in the
                                                                                                         Pursuant to this request, and in                    Secretary’s presumption that
                                               List of Topics Discussed in the Preliminary
                                               Decision Memorandum                                     accordance with 19 CFR                                reimbursement of the antidumping
                                                                                                                                                             duties occurred and the subsequent
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                                               I. Summary
                                                                                                          1 See Antidumping or Countervailing Duty Order,
                                               II. Background
                                                                                                       Finding, or Suspended Investigation; Opportunity         3 See Initiation of Antidumping and
                                               III. Scope Comments                                     to Request Administrative Review, 82 FR 41595         Countervailing Duty Administrative Reviews, 82 FR
                                               IV. Scope of the Investigation                          (September 1, 2017).                                  52268 (November 13, 2017) (Initiation Notice).
                                               V. New Subsidy Allegation                                  2 See Letter from QPP, ‘‘Raw Flexible Magnets         4 See Letter from QPP, ‘‘Raw Flexible Magnets
                                               VI. Alignment                                           from the PRC; A–570–922; Request for Review by        from the PRC; A–570–922; Withdraw Request for
                                               VII. Injury Test                                        Qwik Picz Photo Booth, LLC,’’ dated October 2,        Review by Qwik Picz Photo Booth, LLC,’’ dated
                                               VIII. Application of the CVD Law to Imports             2017.                                                 January 16, 2018.



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Document Created: 2018-05-22 23:49:10
Document Modified: 2018-05-22 23:49:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesApplicable May 23, 2018.
ContactRobert Galantucci or Jonathan Hill, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 202-482-2923 or 202-482- 3518, respectively.
FR Citation83 FR 23888 

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