83 FR 40229 - Xanthan Gum From the People's Republic of China: Preliminary Results of the Antidumping Duty Administrative Review, and Preliminary Determination of No Shipments; 2016-2017

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 157 (August 14, 2018)

Page Range40229-40232
FR Document2018-17412

The Department of Commerce (Commerce) preliminarily determines that certain exporters for which this review was requested did make sales of subject merchandise at prices below normal value (NV) during the period of review (POR) July 1, 2016, through June 30, 2017. We invite interested parties to comment on these preliminary results.

Federal Register, Volume 83 Issue 157 (Tuesday, August 14, 2018)
[Federal Register Volume 83, Number 157 (Tuesday, August 14, 2018)]
[Notices]
[Pages 40229-40232]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-17412]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-985]


Xanthan Gum From the People's Republic of China: Preliminary 
Results of the Antidumping Duty Administrative Review, and Preliminary 
Determination of No Shipments; 2016-2017

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that certain exporters for which this review was requested did make 
sales of subject merchandise at prices below normal value (NV) during 
the period of review (POR) July 1, 2016, through June 30, 2017. We 
invite interested parties to comment on these preliminary results.

DATES: Applicable August 14, 2018.

FOR FURTHER INFORMATION CONTACT: Aleksandras Nakutis or Eli Lovely, AD/
CVD Operations, Office IV, Enforcement

[[Page 40230]]

and Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 
(202) 482-3147 and (202) 482-1593, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This administrative review is being conducted in accordance with 
section 751(a) of the Tariff Act of 1930, as amended (the Act). On July 
3, 2017, Commerce published in the Federal Register a notice of 
opportunity to request an administrative review of the antidumping duty 
(AD) order on xanthan gum from the People's Republic of China 
(China).\1\ Commerce published the notice of initiation of this 
administrative review on September 13, 2017.\2\ On January 23, 2018, 
Commerce exercised its discretion to toll all deadlines affected by the 
closure of the Federal Government from January 20 through 22, 2018.\3\ 
Commerce extended the preliminary results deadline until August 3, 
2018.\4\
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    \1\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity To Request Administrative 
Review, 82 FR 30833 (July 3, 2017).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 82 FR 42974 (September 13, 2017).
    \3\ See Memorandum to James Maeder, Associate Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations 
performing the duties of Deputy Assistant Secretary for Antidumping 
and Countervailing Duty Operations, ``Xanthan Gum from the People's 
Republic of China: Extension of Deadline for Preliminary Results of 
Administrative Review,'' dated March 14, 2018.
    \4\ See Memorandum to James Maeder, Associate Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations 
performing the duties of Deputy Assistant Secretary for Antidumping 
and Countervailing Duty Operations, ``Xanthan Gum from the People's 
Republic of China: Extension of Deadline for Preliminary Results of 
Antidumping Duty Administrative Review,'' dated March 14, 2018.
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Scope of the Order

    The product covered by the order includes dry xanthan gum, whether 
or not coated or blended with other products. Xanthan gum is included 
in this order regardless of physical form, including, but not limited 
to, solutions, slurries, dry powders of any particle size, or unground 
fiber.
    Merchandise covered by the scope of the order is classified in the 
Harmonized Tariff Schedule of the United States at subheading 
3913.90.20. This tariff classification is provided for convenience and 
customs purposes; however, the written description of the scope is 
dispositive. A full description of the scope of the order is contained 
in the Preliminary Decision Memorandum.\5\
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    \5\ For a complete description of the Scope of the Order, see 
``Decision Memorandum for the Preliminary Results in the Fourth 
Antidumping Duty Administrative Review of Xanthan Gum from the 
People's Republic of China,'' (Preliminary Decision Memorandum) from 
James Maeder, Associate Deputy Assistant Secretary for Antidumping 
and Countervailing Duty Operations, performing the duties of Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to 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, dated concurrently with, and hereby 
adopted by, this notice.
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Preliminary Determination of No Shipments

    On October 10, 2017 and October 13, 2017, Jianlong Biotechnology 
Co., Ltd. (Jianlong) (previously known as Inner Mongolia Jianlong 
Biochemical Co., Ltd. (IMJ)), and A.H.A. International Co., Ltd. (AHA), 
respectively, timely filed certifications that they had no exports, 
sales, or entries of subject merchandise during the POR. Based on an 
analysis of the U.S. Customs and Border Protection (CBP) information 
and Jianlong's, IMJ's, and AHA's no shipment certifications, Commerce 
preliminarily determines that Jianlong, IMJ, and AHA had no shipments, 
and, therefore, no reviewable transactions, during the POR.\6\ For 
additional information regarding this determination, see the 
Preliminary Decision Memorandum.
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    \6\ See Memorandum to The File, ``Antidumping Duty 
Administrative Review of Xanthan Gum from the People's Republic of 
China: Automated Commercial System Shipment Query,'' dated September 
15, 2017; see also Memorandum to The File, ``Xanthan gum from China 
(A-570-985),'' dated June 14, 2018.
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    Consistent with our practice in non-market economy (NME) cases, 
Commerce is not rescinding this administrative review with respect to 
Jianlong, IMJ, or AHA for which it has preliminarily found no shipments 
during the POR, but intends to complete the review, and issue 
appropriate instructions to CBP based on the final results of the 
review.\7\
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    \7\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694 (October 24, 2011) (NME AD 
Assessment) and the ``Assessment Rates'' section, below.
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(1)(B) of the Act. We calculated, where applicable, export price 
and constructed export price for the mandatory respondents Neimenggu 
Fufeng Biotechnologies Co., Ltd. (a.k.a., Inner Mongolia Fufeng 
Biotechnologies Co., Ltd.), Xinjiang Fufeng Biotechnologies Co., Ltd., 
and Shandong Fufeng Fermentation Co., Ltd. (collectively Fufeng) and 
Meihua Group International Trading (Hong Kong) Limited, Langfang Meihua 
Biotechnology Co., Ltd., and Xinjiang Meihua Amino Acid Co., Ltd. 
(collectively Meihua) in accordance with section 772 of the Act. 
Because China is an NME country within the meaning of section 771(18) 
of the Act, we calculated NV in accordance with section 773(c) of the 
Act.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum, which is hereby 
adopted by 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 https://access.trade.gov, and 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 Preliminary 
Decision Memorandum and the electronic version of the Preliminary 
Decision Memorandum are identical in content. A list of topics included 
in the Preliminary Decision Memorandum is provided at the Appendix to 
this notice.

Preliminary Results of Review

    Consistent with prior segments of this proceeding, we have 
continued to treat Fufeng as a single entity and Meihua as a single 
entity pursuant to 19 CFR 351.401(f)(1)-(2). For additional 
information, see the Preliminary Decision Memorandum.
    Additionally, Commerce preliminary determines that the information 
placed on the record by Fufeng, Meihua, and the other companies listed 
in the rate table below demonstrates that these companies are entitled 
to separate rate status. However, we preliminarily determine that Hebei 
Xinhe Biochemical Co., Ltd. did not demonstrate their entitlement to 
separate rates status. Therefore, we are preliminarily treating Hebei 
Xinhe Biochemical Co., Ltd. as part of the China-wide entity. For 
additional information, see the Preliminary Decision Memorandum.
    The statute and Commerce's regulations do not address what rate to 
apply to respondents not selected for individual examination when 
Commerce limits its examination in an administrative review pursuant to 
section 777A(c)(2) of the Act. Generally,

[[Page 40231]]

Commerce looks to section 735(c)(5) of the Act, which provides 
instructions for calculating the all-others rate in an investigation, 
for guidance when calculating the rate for non-selected respondents 
that are not examined individually in an administrative review. Section 
735(c)(5)(A) of the Act states that the all-others rate should be 
calculated by averaging the weighted-average dumping margins for 
individually-examined respondents, excluding rates that are zero, de 
minimis, or based entirely on facts available. Where the rates for the 
individually examined companies are all zero, de minimis, or based 
entirely on facts available, section 735(c)(5)(B) of the Act provides 
that Commerce may use ``any reasonable method'' to establish the all 
others rate. In this instant, we have assigned the rate calculated to 
Fufeng (i.e., 1.18 percent) to all separate rate entities.
    Commerce preliminarily determines that the following weighted-
average dumping margins exist for the period July 1, 2016, through June 
30, 2017:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                        Exporter                              dumping
                                                              margin
                                                             (percent)
------------------------------------------------------------------------
Meihua Group International Trading (Hong Kong) Limited/             0.00
 Langfang Meihua Biotechnology Co., Ltd.,/Xinjiang
 Meihua Amino Acid Co., Ltd.............................
Neimenggu Fufeng Biotechnologies Co., Ltd. (aka Inner               1.18
 Mongolia Fufeng Biotechnologies Co., Ltd.)/Shandong
 Fufeng Fermentation Co., Ltd./Xinjiang Fufeng
 Biotechnologies Co., Ltd...............................
CP Kelco (Shandong) Biological Company Limited..........            1.18
Deosen Biochemical Ltd./Deosen Biochemical (Ordos) Ltd..            1.18
Shanghai Smart Chemicals Co., Ltd.......................            1.18
------------------------------------------------------------------------

Disclosure and Public Comment

    Commerce intends to disclose the calculations performed for these 
preliminary results of review within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). Case 
briefs or other written comments may be submitted to the Assistant 
Secretary for Enforcement and Compliance no later than 30 days after 
the publication of these preliminary results of review, unless the 
Secretary alters the time limit.\8\ Rebuttal briefs, limited to 
responding to issues raised in case briefs, may be submitted no later 
than five days after the deadline for case briefs.\9\ Pursuant to 19 
CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or 
rebuttal briefs in this review 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.
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    \8\ See 19 CFR 351.309(c).
    \9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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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 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.
    Unless otherwise extended, Commerce intends to issue the final 
results of this administrative review, which will include the results 
of our analysis of the issues raised in the case briefs, within 120 
days of publication of these preliminary results in the Federal 
Register, pursuant to section 751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuance of the final results of review, Commerce will 
determine, and CBP shall assess, antidumping duties on all appropriate 
entries covered by this review.\10\ Commerce intends to issue 
appropriate assessment instructions to CBP 15 days after the 
publication of the final results of this review. We will calculate 
importer-specific assessment rates equal to the ratio of the total 
amount of dumping calculated for examined sales with a particular 
importer to the total entered value of the sales in accordance with 19 
CFR 351.212(b)(1).\11\ Where either the respondent's ad valorem 
weighted-average dumping margin is zero or de minimis, or an importer-
specific ad valorem assessment rate is zero or de minimis,\12\ we will 
instruct CBP to liquidate the appropriate entries without regard to 
antidumping duties.
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    \10\ See 19 CFR 351.212(b)(1).
    \11\ We applied the assessment rate calculation method adopted 
in Antidumping Proceedings: Calculation of the Weighted-Average 
Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101 (February 14, 2012).
    \12\ See 19 CFR 351.106(c)(2).
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    For the respondents that were not selected for individual 
examination in this administrative review but which qualified for a 
separate rate, the assessment rate will be equal to the weighted-
average dumping margin assigned to the respondents in the final results 
of this review.\13\
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    \13\ See Drawn Stainless Steel Sinks from the People's Republic 
of China: Preliminary Results of the Antidumping Duty Administrative 
Review and Preliminary Determination of No Shipments: 2014-2015, 81 
FR 29528 (May 12, 2016) and accompanying Decision Memorandum at 10-
11; unchanged in Drawn Stainless Steel Sinks from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review; Final Determination of No Shipments; 2014-2015, 81 FR 54042 
(August 15, 2016).
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    For entries that were not reported in the U.S. sales databases 
submitted by the companies individually examined during this review, 
Commerce will instruct CBP to liquidate such entries at the China-wide 
rate. In addition, if we continue to find that Jianlong, IMJ, and AHA 
had no shipments of subject merchandise during the POR, any suspended 
entries of subject merchandise from either Jianlong, IMJ, or AHA will 
be liquidated at the China-wide rate.\14\
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    \14\ For a full discussion of this practice, see NME AD 
Assessment.
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Cash Deposit Requirements

    The following cash deposit requirements will be effective for all 
shipments of xanthan gum from China entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
notice of the final

[[Page 40232]]

results of this administrative review, as provided for by section 
751(a)(2)(C) of the Act: (1) For the companies listed above that have a 
separate rate, the cash deposit rate will be that rate established in 
the final results of this review (except, if the rate is zero or de 
minimis, then a cash deposit rate of zero will be required); (2) for 
previously investigated or reviewed China and non-China exporters not 
listed above that received a separate rate in a prior segment of this 
proceeding, the cash deposit rate will continue to be the existing 
exporter-specific rate; (3) for all China exporters of subject 
merchandise that have not been found to be entitled to a separate rate, 
the cash deposit rate will be the rate for the China-wide entity, which 
is 154.07 percent; and (4) for all non-China exporters of subject 
merchandise that have not received their own rate, the cash deposit 
rate will be the rate applicable to China exporter(s) that supplied 
that non-China exporter. These deposit requirements, when imposed, 
shall remain in effect until further notice.

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) to file a certificate 
regarding the reimbursement of antidumping and/or countervailing duties 
prior to liquidation of the relevant entries during this review period. 
Failure to comply with this requirement could result in the Secretary's 
presumption that reimbursement of antidumping and/or countervailing 
duties occurred and the subsequent assessment of double antidumping 
duties.
    We are issuing and publishing these preliminary results of review 
in accordance with sections 751(a)(l) and 777(i)(l) of the Act and 19 
CFR 351.213.

    Dated: August 3, 2018.
James Maeder,
Associate Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations performing the duties of Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Review
IV. Extension of the Preliminary Results
V. Scope of the Order
VI. Selection of Respondents
VII. Duty Absorption
VIII. Preliminary Determination of No Shipments
IX. Single Entity Treatment
X. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Separate Rates
    C. Separate Rate Analysis
    1. Wholly Foreign-Owned Applicant
    2. Joint Ventures Between Chinese and Foreign Companies or 
Wholly Chinese-Owned Companies
    a. Absence of De Jure Control
    b. Absence of De Facto Control
    3. Companies Not Receiving a Separate Rate
    D. Dumping Margin for the Separate Rate Companies Not 
Individually Examined
    E. Surrogate Country
    1. Same Level of Economic Development
    2. Significant Producers of Identical or Comparable Merchandise
    3. Data Availability
    F. Date of Sale
    G. Comparisons to Normal Value
    1. Determination of Comparison Method
    2. Results of the Differential Pricing Analysis
    H. U.S. Price
    1. Export Price
    2. Constructed Export Price
    3. Value-Added Tax
    I. Normal Value
    1. Factor Valuations
    1. Direct and Packing Materials
    2. Energy
    3. Labor
    4. Movement Services
    5. Financial Ratios
    J. Currency Conversion
XI. Recommendation

[FR Doc. 2018-17412 Filed 8-13-18; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
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 August 14, 2018.
ContactAleksandras Nakutis or Eli Lovely, 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) 482-3147 and (202) 482-1593, respectively.
FR Citation83 FR 40229 

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