Notice of Initiation of Countervailing Duty Investigation: Citric Acid and Certain Citrate Salts from the People's Republic of China, 26960-26963 [E8-10516]

Download as PDF 26960 Federal Register / Vol. 73, No. 92 / Monday, May 12, 2008 / Notices merchandise; and (4) the cash deposit rate for all other manufacturers or exporters will continue to be 8.11 percent, the all–others rate established in the LTFV investigation. See Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order: Carbon and Certain Alloy Steel Wire Rod from Canada, 67 FR 65944 (October 29, 2002). These deposit requirements, when imposed, shall remain in effect until publication of the final results of the next administrative review. Notification to Interested Parties This notice also serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Department’s presumption that reimbursement of the antidumping duties occurred and the subsequent assessment of doubled antidumping duties. This notice also serves as a reminder to parties subject to administrative protective orders (APOs) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305, which continues to govern business proprietary information in this segment of the proceeding. Timely written notification of the return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation. This notice is issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act. Dated: May 5, 2008. David M. Spooner, Assistant Secretaryfor Import Administration. Appendix – Issues and Decision Memorandum rwilkins on PROD1PC63 with NOTICES Comment 1: Adjustment to Pension Liabilities Comment 2: Adjustment to General & Administrative Expenses Comment 3: Arm’s–Length Program Product Characteristic Variable Names Comment 4: Level of Trade Comment 5: Offsetting for U.S. Sales that Exceed Normal Value [FR Doc. E8–10514 Filed 5–9–08; 8:45 am] BILLING CODE 3510–DS–S VerDate Aug<31>2005 17:54 May 09, 2008 Jkt 214001 DEPARTMENT OF COMMERCE International Trade Administration (C–570–938) Notice of Initiation of Countervailing Duty Investigation: Citric Acid and Certain Citrate Salts from the People’s Republic of China Import Administration, International Trade Administration, Department of Commerce. EFFECTIVE DATE: May 12, 2008 FOR FURTHER INFORMATION CONTACT: David Neubacher, Scott Holland, and Shelly Atkinson, AD/CVD Operations, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482–5823, (202) 482–1279, and (202) 482–0116, respectively. AGENCY: SUPPLEMENTARY INFORMATION: The Petition On April 14, 2008, the Department of Commerce (the ‘‘Department’’) received a petition filed in proper form by Archer Daniels Midland Company, Cargill, Inc., and Tate and Lyle Americas, Inc. (the ‘‘petitioners’’), domestic producers of citric acid and certain citrate salts (‘‘citric acid’’). On April 22, 2008, the Department received a supplement to the petition alleging several additional subsidy programs. In response to the Department’s requests, the petitioners provided timely information supplementing the petition on April 24, 2008 and April 28, 2008. In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (‘‘the Act’’), the petitioners allege that manufacturers, producers, or exporters of citric acid in the People’s Republic of China ( the ‘‘PRC’’), receive countervailable subsidies within the meaning of section 701 of the Act and that such imports are materially injuring, or threatening material injury to, an industry in the United States. The Department finds that the petitioners filed the petition on behalf of the domestic industry because they are interested parties as defined in section 771(9)(C) of the Act and the petitioners have demonstrated sufficient industry support with respect to the countervailing duty investigation (see ‘‘Determination of Industry Support for the Petition’’ section below). Period of Investigation The period of investigation is January 1, 2007, through December 31, 2007. PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 Scope of the Investigation The scope of this investigation includes all grades and granulation sizes of citric acid, sodium citrate, and potassium citrate in their unblended forms, whether dry or in solution, and regardless of packaging type. The scope also includes blends of citric acid, sodium citrate, and potassium citrate; as well as blends with other ingredients, such as sugar, where the unblended form(s) of citric acid, sodium citrate, and potassium citrate constitute 40 percent or more, by weight, of the blend. The scope of this investigation also includes all forms of unrefined calcium citrate, including dicalcium citrate monohydrate, and tricalcium citrate tetrahydrate, which are intermediate products in the production of citric acid, sodium citrate, and potassium citrate. The scope of this investigation includes the hydrous and anhydrous forms of citric acid, the dihydrate and anhydrous forms of sodium citrate, otherwise known as citric acid sodium salt, and the monohydrate and monopotassium forms of potassium citrate. Sodium citrate also includes both trisodium citrate and monosodium citrate, which are also known as citric acid trisodium salt and citric acid monosodium salt, respectively. Citric acid and sodium citrate are classifiable under 2918.14.0000 and 2918.15.1000 of the Harmonized Tariff Schedule of the United States (‘‘HTSUS’’), respectively. Potassium citrate and calcium citrate are classifiable under 2918.15.5000 of the HTSUS. Blends that include citric acid, sodium citrate, and potassium citrate are classifiable under 3824.90.9290 of the HTSUS. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise is dispositive. Comments on Scope of Investigation During our review of the petition, we discussed the scope with the petitioners to ensure that it is an accurate reflection of the products for which the domestic industry is seeking relief. Moreover, as discussed in the preamble to the regulations (Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)), we are setting aside a period for interested parties to raise issues regarding product coverage. The Department encourages all interested parties to submit such comments within 20 calendar days of the publication of this notice. Comments should be addressed to Import Administration’s Central Records Unit (‘‘CRU’’), Room 1117, U.S. Department of Commerce, 14th Street E:\FR\FM\12MYN1.SGM 12MYN1 Federal Register / Vol. 73, No. 92 / Monday, May 12, 2008 / Notices and Constitution Avenue, NW, Washington, DC 20230. The period of scope consultations is intended to provide the Department with ample opportunity to consider all comments and to consult with parties prior to the issuance of the preliminary determinations. rwilkins on PROD1PC63 with NOTICES Consultations Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department invited representatives of the Government of the PRC for consultations with respect to the countervailing duty petition. The Department held these consultations in Beijing, China, with representatives of the Government of the PRC on April 28, 2008. See the Memorandum to The File, entitled, ‘‘Consultations with Officials from the Government of the People’s Republic of China’’ (April 28, 2008) on file in the CRU of the Department of Commerce, Room 1117. Determination of Industry Support for the Petitions Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) at least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, the Department shall: (i) poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A), or (ii) determine industry support using a statistically valid sampling method. Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers as a whole of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs the Department to look to producers and workers who produce the domestic like product. The International Trade Commission (‘‘ITC’’), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both the Department and the ITC must apply the same statutory definition regarding VerDate Aug<31>2005 17:54 May 09, 2008 Jkt 214001 the domestic like product (section 771(10) of the Act), they do so for different purposes and pursuant to a separate and distinct authority. In addition, the Department’s determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law. See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 U.S. 919 (1989). Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this subtitle.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation,’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioners do not offer a definition of domestic like product distinct from the scope of the investigation. Based on our analysis of the information submitted on the record, we have determined that citric acid and certain citrate salts (unrefined calcium citrate, sodium citrate, and potassium citrate) constitute a single domestic like product and we have analyzed industry support in terms of that domestic like product. For a discussion of the domestic like product analysis in this case, see the Countervailing Duty Investigation Initiation Checklist: Citric Acid and Certain Citrate Salts from the People’s Republic of China (PRC), Industry Support at Attachment II (PRC Initiation Checklist) on file in the Central Records Unit (CRU), Room 1117 of the main Department of Commerce building. Our review of the data provided in the petition, supplemental submissions, and other information readily available to the Department indicates that the petitioners have established industry support. First, the petition established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, the Department is not required to take further action in order to evaluate industry support (e.g., polling). See Section 702(c)(4)(D) of the Act. Second, the domestic producers have met the statutory criteria for industry support under section 702(c)(4)(A)(i) of the Act because the domestic producers (or PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 26961 workers) who support the petition account for at least 25 percent of the total production of the domestic like product. Finally, the domestic producers have met the statutory criteria for industry support under section 702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) who support the petition account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Accordingly, the Department determines that the petition was filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act. See PRC Initiation Checklist at Attachment II (Industry Support). The Department finds that the petitioners filed the petition on behalf of the domestic industry because they are interested parties as defined in section 771(9)(C) of the Act and they have demonstrated sufficient industry support with respect to the countervailing duty investigation that they are requesting the Department initiate. See PRC Initiation Checklist at Attachment II (Industry Support). Injury Test Because the PRC, is a ‘‘Subsidies Agreement Country’’ within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to this investigation. Accordingly, the ITC must determine whether imports of the subject merchandise from the PRC materially injure, or threaten material injury to, a U.S. industry. Allegations and Evidence of Material Injury and Causation The petitioners allege that imports of citric acid and certain citrate salts from the PRC are benefitting from countervailable subsidies and that such imports are causing or threatening to cause, material injury to the domestic industry producing citric acid and certain citrate salts. The petitioners contend that the industry’s injured condition is illustrated by the reduced market share, reduced production and capacity utilization, reduced employment, underselling and price depressing and suppressing effects, lost revenue and sales, a decline in financial performance, and an increase in import penetration. The Department has assessed the allegations and supporting evidence regarding material injury, threat of material injury, and causation, and the Department determines that these allegations are properly supported by adequate evidence and meet the statutory requirements for initiation. See E:\FR\FM\12MYN1.SGM 12MYN1 26962 Federal Register / Vol. 73, No. 92 / Monday, May 12, 2008 / Notices PRC Initiation Checklist at Attachment III. We are including in our investigation the following programs alleged in the petition to have provided countervailable subsidies to producers and exporters of the subject merchandise in the PRC: Preferential Lending 1. Government Policy Lending Program rwilkins on PROD1PC63 with NOTICES 2. Funds provided for the rationalization of the citric acid industry 3. Discounted loans for export– oriented industries 4. Loans provided pursuant to the Northeast Revitalization Program Grant Programs 5. State Key Technology Renovation Program Fund 6. National level grants to loss– making state–owned enterprises 7. ‘‘Famous Brands’’ Program Income Tax Programs 8. ‘‘Two Free, Three Half’’ program 9. Reduced income tax rates for foreign–investment enterprises based on location 10. Income tax exemption program for export–oriented foreign–investment enterprises 11. Tax benefits to foreign–investment enterprises for certain reinvestment of profits 12. Reduced income tax rate for high or new technology enterprises 13. Reduced income tax rate for technology or knowledge intensive foreign–investment enterprises 14. Preferential income tax rate for research and development at foreign–investment enterprises 15. Preferential tax programs for encouraged industries 16. Preferential tax policies for township enterprises 17. Income tax credits on purchases of domestically produced equipment Indirect Tax Programs and Import Tariff Program 18. Value added tax rebate for purchases by foreign–investment enterprises of domestically produced equipment 19. Value added tax and duty exemptions on imported equipment 20. Excessive value added tax rebates on exports Provincial/Local Subsidy Programs 21. Provincial level grants to loss– making state–owned enterprises 22. Local income tax exemption and reduction program for ‘‘productive’’ foreign–investment enterprises Anhui Province: 23. Reduced income tax rates for VerDate Aug<31>2005 17:54 May 09, 2008 Jkt 214001 encouraged industries in Anhui Province 24. Provision of land for less than adequate remuneration in Anhui Province Guangdong Province: 25. Funds for ‘‘outward expansion’’ of industries in Guangdong Province Jiangsu Province: 26. Income tax exemption for foreign– investment enterprises located in Jiangsu Province 27. Preferential tax programs for enterprises located in the Su Qian Economic Development Zone 28. Provision of land for less than adequate remuneration in the Su Qian Economic Development Zone 29. Provision of electricity for less than adequate remuneration in the Su Qian Economic Development Zone Liaoning Province: 30. Loans and interest subsidies pursuant to the Liaoning Province’s five-year framework Shandong Province: 31. Local and income tax exemptions and reductions for firms located in Qilu Chemicals Industry Park Shanxi Province: 32. Preferential tax program for enterprises located in Shanxi Province 33. Funding for enterprises under the Shanxi Province 10th Five-year Plan Shenzhen City: 34. Export interest subsidy funds for enterprises located in Shenzhen City Zhejiang Province: 35. Export interest subsidy funds for enterprises located in Zhejiang Province 36. Exemptions and reductions in taxes and fees for chemical research and development institutions located in Zhejiang Province 37. Provision of land for less than adequate remuneration for enterprises located in Hangzhou Bay Fine Chemical Park 38. Provision of electricity for less than adequate remuneration for enterprises located in Hangzhou Bay Fine Chemical Park For further information explaining why the Department is investigating these programs, see China Initiation Checklist. We are not including in our investigation the following programs PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 alleged to benefit producers and exporters of the subject merchandise in the PRC: Provision of Goods and Services- for Less Than Adequate Remuneration by the GOC 1. Water The petitioners allege that through the program of rationalization, the GOC has promoted differential water rates to favored citric acid producers within the Chinese chemicals industry, despite China’s limited water resources and the water–intensive nature of the citric acid industry. Petitioners have not sufficiently alleged the elements necessary for the imposition of a countervailing duty and did not support the allegation with reasonably available information. Consequently, we do not plan to investigate this program. 2. Land The petitioners allege that the GOC provides citric acid producers with land grants and/or reduced land costs. Petitioners have not sufficiently alleged the elements necessary for the imposition of a countervailing duty and did not support the allegation with reasonably available information. Consequently, we do not plan to investigate this program. 3. Electricity and natural gas The petitioners allege that Chinese citric acid producers benefit from government–provided electricity and natural gas at subsidized prices. The GOC controls and sets prices for electricity and natural gas. The petitioners note that the GOC acknowledged in its WTO accession documents that it provides subsidies on energy inputs to ‘‘special industry sectors.’’ The government has also recently identified the citric acid industry as a high polluting industry and non–backward producers as ‘‘preferred,’’ and has committed to ending preferential policies to those companies. Thus, the petitioners allege that the remaining citric acid producers will continue to receive energy subsidies available to certain sectors. Petitioners have not sufficiently alleged the elements necessary for the imposition of a countervailing duty and did not support the allegation with reasonably available information. Consequently, we do not plan to investigate this program. Income Tax Programs 4. Preferential tax program for enterprises in Beijing Municipality Petitioners allege that the Beijing Municipality provides subsidies to develop the fine chemical industry, which includes the citric acid industry. E:\FR\FM\12MYN1.SGM 12MYN1 Federal Register / Vol. 73, No. 92 / Monday, May 12, 2008 / Notices rwilkins on PROD1PC63 with NOTICES Petitioners have not sufficiently alleged the elements necessary for the imposition of a countervailing duty and did not support the allegation with reasonably available information. Consequently, we do not plan to investigate this program. 5. Preferential tax program for enterprises in Chongqing Municipality In accordance with the West Revitalization Project, the GOC offers encouraged industries in the Chongqing Municipality a preferred tax rate of 15%. Petitioners allege further that fine chemical companies located in the Chongqing Chemical Industrial Park are eligible for additional benefits. Petitioners have not sufficiently alleged the elements necessary for the imposition of a countervailing duty and did not support the allegation with reasonably available information. Consequently, we do not plan to investigate this program. 6. Preferential tax program for enterprises in Shandong Province Petitioners allege that municipal governments encourages the development of the chemical industry by granting tax reductions and exemptions for companies located in chemical parks such as Qilu Chemical Industry Park. Petitioners have not sufficiently alleged the elements necessary for the imposition of a countervailing duty and did not support the allegation with reasonably available information. Consequently, we do not plan to investigate this program. Application of the Countervailing Duty Law to the PRC The Department has treated the PRC as a non–market economy (‘‘NME’’) country in all past AD investigations and administrative reviews. In accordance with section 771(18)(C)(i) of the Act, any determination that a country is an NME country shall remain in effect until revoked by the administering authority. See, e.g., Tapered Roller Bearings and Parts Thereof, Finished and 10 Unfinished, (‘‘TRBs’’) From the People’s Republic of China: Preliminary Results of 2001– 2002 Administrative Review and Partial Rescission of Review, 68 FR 7500, 7500– 1 (February 14, 2003), unchanged in TRBs from the People’s Republic of China: Final Results of 2001–2002 Administrative Review, 68 FR 70488, 70488–89 (December 18, 2003). In the final affirmative CVD determination on coated free sheet paper from the PRC, the Department determined that the current nature of the PRC economy does not create obstacles to applying the necessary VerDate Aug<31>2005 20:23 May 09, 2008 Jkt 214001 criteria in the CVD law. See Coated Free Sheet Paper from the People’s Republic of China: Final Affirmative Countervailing Duty Determination, 72 FR 60645 (October 25, 2007), and the accompanying Issues and Decision Memorandum at Comment 1. Therefore, because Petitioners have provided sufficient allegations and support of their allegations to meet the statutory criteria for initiating a CVD investigation of citric acid from the PRC, initiation of a CVD investigation is warranted in this case. For further information, see CVD Initiation Checklist. Respondent Selection For this investigation, the Department expects to select respondents based on U.S. Customs and Border Protection data for U.S. imports during the POI. We intend to make our decision regarding respondent selection within 20 days of publication of this Federal Register notice. The Department invites comments regarding the CBP data and respondent selection within seven calendar days of publication of this Federal Register notice. Distribution of Copies of the Petition In accordance with section 702(b)(4)(A)(i) of the Act, a copy of the public version of the petition has been provided to the Government of the PRC. As soon as and to the extent practicable, we will attempt to provide a copy of the public version of the petition to each exporter named in the petition, consistent with 19 CFR 351.203(c)(2). ITC Notification We have notified the ITC of our initiation, as required by section 702(d) of the Act. Preliminary Determination by the ITC The ITC will preliminarily determine, within 25 days after the date on which it receives notice of the initiation, whether there is a reasonable indication that imports of subsidized citric acid from the PRC are causing material injury, or threatening to cause material injury, to a U.S. industry. See section 703(a)(2) of the Act. A negative ITC determination will result in the investigation being terminated; otherwise, the investigation will proceed according to statutory and regulatory time limits. This notice is issued and published pursuant to section 777(i) of the Act. PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 26963 Dated: May 5, 2008. David M. Spooner, Assistant Secretaryfor Import Administration. [FR Doc. E8–10516 Filed 5–9–08; 8:45 am] BILLING CODE 3510–DS–S DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration RIN: 0648–XH73 Gulf of Mexico Fishery Management Council; Public Hearings National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Notice of a public hearing. AGENCY: SUMMARY: The Gulf of Mexico Fishery Management Council (Council) will convene a public hearing on Aquaculture Amendment. DATES: The hearing will convene at 6 p.m. on Wednesday, May 28, 2008 and conclude no later than 9 p.m. ADDRESSES: This hearing will be held at the Radisson Hotel, 3820 N. Roosevelt Blvd. Key West, FL 33040. Council address: Gulf of Mexico Fishery Management Council, 2203 North Lois Avenue, Suite 1100, Tampa, FL 33607. FOR FURTHER INFORMATION CONTACT: Wayne Swingle, Executive Director; telephone: (813) 348–1630. SUPPLEMENTARY INFORMATION: The Gulf of Mexico Fishery Management Council (Council) is preparing an amendment which will require persons to obtain a permit from NMFS to participate in aquaculture by constructing an aquaculture facility in the EEZ of the Gulf of Mexico. Each application for a permit must comply with many permit conditions related to record keeping and operation of the facility. These permit conditions will assure the facility has a minimal affect on the environment and on other fishery resources. Compliance with the conditions will be evaluated annually for the duration of the permit as the basis for renewal of the permit for the next year. Copies of the Amendment a can be obtained by calling the Council office at (813) 348–1630. Although non-emergency issues not contained in this agenda may come before this group for discussion, those issues may not be the subject of formal action during this hearing. Action will be restricted to those issues specifically identified in this notice and any issues arising after publication of this notice E:\FR\FM\12MYN1.SGM 12MYN1

Agencies

[Federal Register Volume 73, Number 92 (Monday, May 12, 2008)]
[Notices]
[Pages 26960-26963]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-10516]


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DEPARTMENT OF COMMERCE

International Trade Administration

(C-570-938)


Notice of Initiation of Countervailing Duty Investigation: Citric 
Acid and Certain Citrate Salts from the People's Republic of China

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

EFFECTIVE DATE: May 12, 2008

FOR FURTHER INFORMATION CONTACT: David Neubacher, Scott Holland, and 
Shelly Atkinson, AD/CVD Operations, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-5823, (202) 482-1279, and (202) 482-0116, respectively.

SUPPLEMENTARY INFORMATION:

The Petition

    On April 14, 2008, the Department of Commerce (the ``Department'') 
received a petition filed in proper form by Archer Daniels Midland 
Company, Cargill, Inc., and Tate and Lyle Americas, Inc. (the 
``petitioners''), domestic producers of citric acid and certain citrate 
salts (``citric acid''). On April 22, 2008, the Department received a 
supplement to the petition alleging several additional subsidy 
programs. In response to the Department's requests, the petitioners 
provided timely information supplementing the petition on April 24, 
2008 and April 28, 2008.
    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (``the Act''), the petitioners allege that manufacturers, 
producers, or exporters of citric acid in the People's Republic of 
China ( the ``PRC''), receive countervailable subsidies within the 
meaning of section 701 of the Act and that such imports are materially 
injuring, or threatening material injury to, an industry in the United 
States.
    The Department finds that the petitioners filed the petition on 
behalf of the domestic industry because they are interested parties as 
defined in section 771(9)(C) of the Act and the petitioners have 
demonstrated sufficient industry support with respect to the 
countervailing duty investigation (see ``Determination of Industry 
Support for the Petition'' section below).

Period of Investigation

    The period of investigation is January 1, 2007, through December 
31, 2007.

Scope of the Investigation

    The scope of this investigation includes all grades and granulation 
sizes of citric acid, sodium citrate, and potassium citrate in their 
unblended forms, whether dry or in solution, and regardless of 
packaging type. The scope also includes blends of citric acid, sodium 
citrate, and potassium citrate; as well as blends with other 
ingredients, such as sugar, where the unblended form(s) of citric acid, 
sodium citrate, and potassium citrate constitute 40 percent or more, by 
weight, of the blend. The scope of this investigation also includes all 
forms of unrefined calcium citrate, including dicalcium citrate 
monohydrate, and tricalcium citrate tetrahydrate, which are 
intermediate products in the production of citric acid, sodium citrate, 
and potassium citrate. The scope of this investigation includes the 
hydrous and anhydrous forms of citric acid, the dihydrate and anhydrous 
forms of sodium citrate, otherwise known as citric acid sodium salt, 
and the monohydrate and monopotassium forms of potassium citrate. 
Sodium citrate also includes both trisodium citrate and monosodium 
citrate, which are also known as citric acid trisodium salt and citric 
acid monosodium salt, respectively. Citric acid and sodium citrate are 
classifiable under 2918.14.0000 and 2918.15.1000 of the Harmonized 
Tariff Schedule of the United States (``HTSUS''), respectively. 
Potassium citrate and calcium citrate are classifiable under 
2918.15.5000 of the HTSUS. Blends that include citric acid, sodium 
citrate, and potassium citrate are classifiable under 3824.90.9290 of 
the HTSUS. Although the HTSUS subheadings are provided for convenience 
and customs purposes, the written description of the merchandise is 
dispositive.

Comments on Scope of Investigation

    During our review of the petition, we discussed the scope with the 
petitioners to ensure that it is an accurate reflection of the products 
for which the domestic industry is seeking relief. Moreover, as 
discussed in the preamble to the regulations (Antidumping Duties; 
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)), 
we are setting aside a period for interested parties to raise issues 
regarding product coverage. The Department encourages all interested 
parties to submit such comments within 20 calendar days of the 
publication of this notice. Comments should be addressed to Import 
Administration's Central Records Unit (``CRU''), Room 1117, U.S. 
Department of Commerce, 14th Street

[[Page 26961]]

and Constitution Avenue, NW, Washington, DC 20230. The period of scope 
consultations is intended to provide the Department with ample 
opportunity to consider all comments and to consult with parties prior 
to the issuance of the preliminary determinations.

Consultations

    Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department 
invited representatives of the Government of the PRC for consultations 
with respect to the countervailing duty petition. The Department held 
these consultations in Beijing, China, with representatives of the 
Government of the PRC on April 28, 2008. See the Memorandum to The 
File, entitled, ``Consultations with Officials from the Government of 
the People's Republic of China'' (April 28, 2008) on file in the CRU of 
the Department of Commerce, Room 1117.

Determination of Industry Support for the Petitions

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A), or (ii) determine industry support using a 
statistically valid sampling method.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (``ITC''), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product (section 771(10) of the Act), they do so for different 
purposes and pursuant to a separate and distinct authority. In 
addition, the Department's determination is subject to limitations of 
time and information. Although this may result in different definitions 
of the like product, such differences do not render the decision of 
either agency contrary to law. See USEC, Inc. v. United States, 132 F. 
Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United 
States, 688 F. Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 
1989), cert. denied 492 U.S. 919 (1989).
    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this subtitle.'' Thus, the reference point from which the 
domestic like product analysis begins is ``the article subject to an 
investigation,'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioners do not 
offer a definition of domestic like product distinct from the scope of 
the investigation. Based on our analysis of the information submitted 
on the record, we have determined that citric acid and certain citrate 
salts (unrefined calcium citrate, sodium citrate, and potassium 
citrate) constitute a single domestic like product and we have analyzed 
industry support in terms of that domestic like product. For a 
discussion of the domestic like product analysis in this case, see the 
Countervailing Duty Investigation Initiation Checklist: Citric Acid and 
Certain Citrate Salts from the People's Republic of China (PRC), 
Industry Support at Attachment II (PRC Initiation Checklist) on file in 
the Central Records Unit (CRU), Room 1117 of the main Department of 
Commerce building.
    Our review of the data provided in the petition, supplemental 
submissions, and other information readily available to the Department 
indicates that the petitioners have established industry support. 
First, the petition established support from domestic producers (or 
workers) accounting for more than 50 percent of the total production of 
the domestic like product and, as such, the Department is not required 
to take further action in order to evaluate industry support (e.g., 
polling). See Section 702(c)(4)(D) of the Act. Second, the domestic 
producers have met the statutory criteria for industry support under 
section 702(c)(4)(A)(i) of the Act because the domestic producers (or 
workers) who support the petition account for at least 25 percent of 
the total production of the domestic like product. Finally, the 
domestic producers have met the statutory criteria for industry support 
under section 702(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the petition. Accordingly, the Department determines that the petition 
was filed on behalf of the domestic industry within the meaning of 
section 702(b)(1) of the Act. See PRC Initiation Checklist at 
Attachment II (Industry Support).
    The Department finds that the petitioners filed the petition on 
behalf of the domestic industry because they are interested parties as 
defined in section 771(9)(C) of the Act and they have demonstrated 
sufficient industry support with respect to the countervailing duty 
investigation that they are requesting the Department initiate. See PRC 
Initiation Checklist at Attachment II (Industry Support).

Injury Test

    Because the PRC, is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from the PRC materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioners allege that imports of citric acid and certain 
citrate salts from the PRC are benefitting from countervailable 
subsidies and that such imports are causing or threatening to cause, 
material injury to the domestic industry producing citric acid and 
certain citrate salts. The petitioners contend that the industry's 
injured condition is illustrated by the reduced market share, reduced 
production and capacity utilization, reduced employment, underselling 
and price depressing and suppressing effects, lost revenue and sales, a 
decline in financial performance, and an increase in import 
penetration. The Department has assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, and 
causation, and the Department determines that these allegations are 
properly supported by adequate evidence and meet the statutory 
requirements for initiation. See

[[Page 26962]]

PRC Initiation Checklist at Attachment III.
    We are including in our investigation the following programs 
alleged in the petition to have provided countervailable subsidies to 
producers and exporters of the subject merchandise in the PRC:
    Preferential Lending
    1. Government Policy Lending Program
    2. Funds provided for the rationalization of the citric acid 
industry
    3. Discounted loans for export-oriented industries
    4. Loans provided pursuant to the Northeast Revitalization Program
    Grant Programs
    5. State Key Technology Renovation Program Fund
    6. National level grants to loss-making state-owned enterprises
    7. ``Famous Brands'' Program
    Income Tax Programs
    8. ``Two Free, Three Half'' program
    9. Reduced income tax rates for foreign-investment enterprises 
based on location
    10. Income tax exemption program for export-oriented foreign-
investment enterprises
    11. Tax benefits to foreign-investment enterprises for certain 
reinvestment of profits
    12. Reduced income tax rate for high or new technology enterprises
    13. Reduced income tax rate for technology or knowledge intensive 
foreign-investment enterprises
    14. Preferential income tax rate for research and development at 
foreign-investment enterprises
    15. Preferential tax programs for encouraged industries
    16. Preferential tax policies for township enterprises
    17. Income tax credits on purchases of domestically produced 
equipment
    Indirect Tax Programs and Import Tariff Program
    18. Value added tax rebate for purchases by foreign-investment 
enterprises of domestically produced equipment
    19. Value added tax and duty exemptions on imported equipment
    20. Excessive value added tax rebates on exports
    Provincial/Local Subsidy Programs
    21. Provincial level grants to loss-making state-owned enterprises
    22. Local income tax exemption and reduction program for 
``productive'' foreign-investment enterprises
    Anhui Province:
    23. Reduced income tax rates for encouraged industries in Anhui 
Province
    24. Provision of land for less than adequate remuneration in Anhui 
Province
    Guangdong Province:
    25. Funds for ``outward expansion'' of industries in Guangdong 
Province
    Jiangsu Province:
    26. Income tax exemption for foreign-investment enterprises located 
in Jiangsu Province
    27. Preferential tax programs for enterprises located in the Su 
Qian Economic Development Zone
    28. Provision of land for less than adequate remuneration in the Su 
Qian Economic Development Zone
    29. Provision of electricity for less than adequate remuneration in 
the Su Qian Economic Development Zone
    Liaoning Province:
    30. Loans and interest subsidies pursuant to the Liaoning 
Province's five-year framework
    Shandong Province:
    31. Local and income tax exemptions and reductions for firms 
located in Qilu Chemicals Industry Park
    Shanxi Province:
    32. Preferential tax program for enterprises located in Shanxi 
Province
    33. Funding for enterprises under the Shanxi Province 10th Five-
year Plan
    Shenzhen City:
    34. Export interest subsidy funds for enterprises located in 
Shenzhen City
    Zhejiang Province:
    35. Export interest subsidy funds for enterprises located in 
Zhejiang Province
    36. Exemptions and reductions in taxes and fees for chemical 
research and development institutions located in Zhejiang Province
    37. Provision of land for less than adequate remuneration for 
enterprises located in Hangzhou Bay Fine Chemical Park
    38. Provision of electricity for less than adequate remuneration 
for enterprises located in Hangzhou Bay Fine Chemical Park
    For further information explaining why the Department is 
investigating these programs,
    see China Initiation Checklist.
    We are not including in our investigation the following programs 
alleged to benefit producers and exporters of the subject merchandise 
in the PRC:

Provision of Goods and Services- for Less Than Adequate Remuneration by 
the GOC

    1. Water
    The petitioners allege that through the program of rationalization, 
the GOC has promoted differential water rates to favored citric acid 
producers within the Chinese chemicals industry, despite China's 
limited water resources and the water-intensive nature of the citric 
acid industry. Petitioners have not sufficiently alleged the elements 
necessary for the imposition of a countervailing duty and did not 
support the allegation with reasonably available information. 
Consequently, we do not plan to investigate this program.
    2. Land
    The petitioners allege that the GOC provides citric acid producers 
with land grants and/or reduced land costs. Petitioners have not 
sufficiently alleged the elements necessary for the imposition of a 
countervailing duty and did not support the allegation with reasonably 
available information. Consequently, we do not plan to investigate this 
program.
    3. Electricity and natural gas
    The petitioners allege that Chinese citric acid producers benefit 
from government-provided electricity and natural gas at subsidized 
prices. The GOC controls and sets prices for electricity and natural 
gas. The petitioners note that the GOC acknowledged in its WTO 
accession documents that it provides subsidies on energy inputs to 
``special industry sectors.'' The government has also recently 
identified the citric acid industry as a high polluting industry and 
non-backward producers as ``preferred,'' and has committed to ending 
preferential policies to those companies. Thus, the petitioners allege 
that the remaining citric acid producers will continue to receive 
energy subsidies available to certain sectors. Petitioners have not 
sufficiently alleged the elements necessary for the imposition of a 
countervailing duty and did not support the allegation with reasonably 
available information. Consequently, we do not plan to investigate this 
program.

Income Tax Programs

    4. Preferential tax program for enterprises in Beijing Municipality
    Petitioners allege that the Beijing Municipality provides subsidies 
to develop the fine chemical industry, which includes the citric acid 
industry.

[[Page 26963]]

Petitioners have not sufficiently alleged the elements necessary for 
the imposition of a countervailing duty and did not support the 
allegation with reasonably available information. Consequently, we do 
not plan to investigate this program.
    5. Preferential tax program for enterprises in Chongqing 
Municipality
    In accordance with the West Revitalization Project, the GOC offers 
encouraged industries in the Chongqing Municipality a preferred tax 
rate of 15%. Petitioners allege further that fine chemical companies 
located in the Chongqing Chemical Industrial Park are eligible for 
additional benefits. Petitioners have not sufficiently alleged the 
elements necessary for the imposition of a countervailing duty and did 
not support the allegation with reasonably available information. 
Consequently, we do not plan to investigate this program.
    6. Preferential tax program for enterprises in Shandong Province
    Petitioners allege that municipal governments encourages the 
development of the chemical industry by granting tax reductions and 
exemptions for companies located in chemical parks such as Qilu 
Chemical Industry Park. Petitioners have not sufficiently alleged the 
elements necessary for the imposition of a countervailing duty and did 
not support the allegation with reasonably available information. 
Consequently, we do not plan to investigate this program.

Application of the Countervailing Duty Law to the PRC

    The Department has treated the PRC as a non-market economy 
(``NME'') country in all past AD investigations and administrative 
reviews. In accordance with section 771(18)(C)(i) of the Act, any 
determination that a country is an NME country shall remain in effect 
until revoked by the administering authority. See, e.g., Tapered Roller 
Bearings and Parts Thereof, Finished and 10 Unfinished, (``TRBs'') From 
the People's Republic of China: Preliminary Results of 2001-2002 
Administrative Review and Partial Rescission of Review, 68 FR 7500, 
7500-1 (February 14, 2003), unchanged in TRBs from the People's 
Republic of China: Final Results of 2001-2002 Administrative Review, 68 
FR 70488, 70488-89 (December 18, 2003).
    In the final affirmative CVD determination on coated free sheet 
paper from the PRC, the Department determined that the current nature 
of the PRC economy does not create obstacles to applying the necessary 
criteria in the CVD law. See Coated Free Sheet Paper from the People's 
Republic of China: Final Affirmative Countervailing Duty Determination, 
72 FR 60645 (October 25, 2007), and the accompanying Issues and 
Decision Memorandum at Comment 1. Therefore, because Petitioners have 
provided sufficient allegations and support of their allegations to 
meet the statutory criteria for initiating a CVD investigation of 
citric acid from the PRC, initiation of a CVD investigation is 
warranted in this case. For further information, see CVD Initiation 
Checklist.

Respondent Selection

    For this investigation, the Department expects to select 
respondents based on U.S. Customs and Border Protection data for U.S. 
imports during the POI. We intend to make our decision regarding 
respondent selection within 20 days of publication of this Federal 
Register notice. The Department invites comments regarding the CBP data 
and respondent selection within seven calendar days of publication of 
this Federal Register notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A)(i) of the Act, a copy of 
the public version of the petition has been provided to the Government 
of the PRC. As soon as and to the extent practicable, we will attempt 
to provide a copy of the public version of the petition to each 
exporter named in the petition, consistent with 19 CFR 351.203(c)(2).

ITC Notification

    We have notified the ITC of our initiation, as required by section 
702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 25 days after the date 
on which it receives notice of the initiation, whether there is a 
reasonable indication that imports of subsidized citric acid from the 
PRC are causing material injury, or threatening to cause material 
injury, to a U.S. industry. See section 703(a)(2) of the Act. A 
negative ITC determination will result in the investigation being 
terminated; otherwise, the investigation will proceed according to 
statutory and regulatory time limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: May 5, 2008.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E8-10516 Filed 5-9-08; 8:45 am]
BILLING CODE 3510-DS-S