83 FR 54718 - Glycine From Japan: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 211 (October 31, 2018)

Page Range54718-54720
FR Document2018-23720

The Department of Commerce (Commerce) preliminarily determines that glycine from Japan is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is January 1, 2017, through December 31, 2017. Interested parties are invited to comment on this preliminary determination.

Federal Register, Volume 83 Issue 211 (Wednesday, October 31, 2018)
[Federal Register Volume 83, Number 211 (Wednesday, October 31, 2018)]
[Notices]
[Pages 54718-54720]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-23720]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-878]


Glycine From Japan: Preliminary Determination of Sales at Less 
Than Fair Value and Postponement of Final Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that glycine from Japan is being, or is likely to be, sold in the 
United States at less than fair value (LTFV). The period of 
investigation (POI) is January 1, 2017, through December 31, 2017. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable October 31, 2018.

FOR FURTHER INFORMATION CONTACT: Madeline Heeren or John McGowan, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-9179 or (202) 
482-3019, respectively.

SUPPLEMENTARY INFORMATION: 

[[Page 54719]]

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 April 25, 
2018.\1\ On August 21, 2018, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
October 24, 2018.\2\ 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 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 and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \1\ See Glycine from India, Japan, and Thailand: Initiation of 
Less-Than-Fair-Value Investigations, 83 FR 17995 (April 25, 2018) 
(Initiation Notice).
    \2\ See Glycine from India, Japan, and Thailand: Postponement of 
Preliminary Determinations of Antidumping Duty Investigations, 83 FR 
42259 (August 21, 2018).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Glycine 
from Japan'' 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 glycine from Japan. 
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. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\6\ 
Commerce is not preliminarily modifying the scope language as it 
appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 83 FR at 17996.
    \6\ See Memorandum, ``Glycine from India, Japan, the People's 
Republic of China and Thailand: Scope Comments Decision Memorandum 
for the Preliminary Determination,'' dated August 27, 2018 
(Preliminary Scope Decision Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Export price was calculated in accordance with 
section 772(a) of the Act. Normal value (NV) was calculated in 
accordance with section 773 of the Act for Yuki Gosei Kogyo Co., Ltd. 
(Yuki Gosei). Furthermore, pursuant to section 776(a) and (b) of the 
Act, Commerce has preliminarily relied upon facts otherwise available, 
with adverse inferences for Showa Denko K.K. (Showa Denko). For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    In this investigation, Commerce preliminarily assigned a rate based 
entirely on adverse facts available to Showa Denko. We did not 
calculate a company-specific rate for Nagase & Co., Ltd. (Nagase).\7\ 
The cash deposit rate requirements for Nagase will be determined 
consistent with the Suspension of Liquidation section of this notice. 
Therefore, the only rate that is not zero, de minimis or based entirely 
on facts otherwise available is the rate calculated for Yuki Gosei. 
Consequently, the rate calculated for Yuki Gosei is also assigned as 
the rate for all-other producers and exporters.
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    \7\ See Preliminary Decision Memorandum at 4-5, and 13-14.
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Preliminary Determination

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Yuki Gosei Kogyo Co., Ltd \8\...............................       53.66
Showa Denko K.K.............................................       86.22
All-Others..................................................       53.66
------------------------------------------------------------------------

Suspension of Liquidation
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    \8\ See Memorandum, ``Preliminary Determination Margin 
Calculation for Yuki Gosei Kogyo Co., Ltd.'' dated concurrently with 
this memorandum.
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    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. 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 equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows: 
(1) The cash deposit rate for the respondents listed above will be 
equal to the company-specific estimated weighted-average dumping 
margins determined in this preliminary determination; (2) if the 
exporter is not a respondent identified above, but the producer is, 
then the cash deposit rate will be equal to the company-specific 
estimated weighted-average dumping margin established for that producer 
of the subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters will be equal to the all-others estimated 
weighted-average dumping margin.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any 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).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last

[[Page 54720]]

verification report is issued in this investigation. Rebuttal briefs, 
limited to issues raised in case briefs, may be submitted no later than 
five days after the deadline date 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 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.
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    \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.

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 petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
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 September 18, 2018, pursuant to 19 CFR 351.210(e), Yuki Gosei 
and Nagase requested that Commerce postpone the final determination and 
that provisional measures be extended to a period not to exceed six 
months.\10\ 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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    \10\ See Letter from Yuki Gosei and Nagase, ``Glycine from 
Japan: Request to Postpone the Due Date for the Final 
Determination,'' dated September 18, 2018.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. 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 these imports 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: October 24, 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 merchandise covered by this investigation is glycine at any 
purity level or grade. This includes glycine of all purity levels, 
which covers all forms of crude or technical glycine including, but 
not limited to, sodium glycinate, glycine slurry and any other forms 
of amino acetic acid or glycine. Subject merchandise also includes 
glycine and precursors of dried crystalline glycine that are 
processed in a third country, including, but not limited to, 
refining or any other processing that would not otherwise remove the 
merchandise from the scope of this investigation if performed in the 
country of manufacture of the in-scope glycine or precursors of 
dried crystalline glycine. Glycine has the Chemical Abstracts 
Service (CAS) registry number of 56-40-6. Glycine and glycine slurry 
are classified under Harmonized Tariff Schedule of the United States 
(HTSUS) subheading 2922.49.43.00. Sodium glycinate is classified in 
the HTSUS under 2922.49.80.00. While the HTSUS subheadings and CAS 
registry number are provided for convenience and customs purposes, 
the written description of the scope of this investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional 
Measures
V. Scope Comments
VI. Application of Facts Available and Use of Adverse Inference
VII. All-Others Rate
VIII. Discussion of the Methodology
    A. Determination of Comparison Method
    B. Results of the Differential Pricing Analysis
IX. Date of Sale
X. Product Comparisons
XI. Export Price
XII. Normal Value
    A. Home Market Viability
    B. Level of Trade
    C. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    D. Calculation of NV Based on Comparison Market Prices
XIII. Currency Conversion
XIV. Conclusion

[FR Doc. 2018-23720 Filed 10-30-18; 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 October 31, 2018.
ContactMadeline Heeren or John McGowan, AD/ CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-9179 or (202) 482-3019, respectively.
FR Citation83 FR 54718 

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