Xanthan Gum From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review, Preliminary Determination of No Shipments, and Preliminary Partial Rescission of Antidumping Duty Administrative Review; 2014-2015, 54045-54047 [2016-19410]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)]
[Notices]
[Pages 54045-54047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19410]



[[Page 54045]]

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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 Antidumping Duty Administrative Review, Preliminary 
Determination of No Shipments, and Preliminary Partial Rescission of 
Antidumping Duty Administrative Review; 2014-2015

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: In response to requests from interested parties, the 
Department of Commerce (``the Department'') is conducting an 
administrative review of the antidumping duty order on xanthan gum from 
the People's Republic of China (``PRC''). The period of review 
(``POR'') is July 1, 2014, through June 30, 2015. The Department 
preliminarily: Found that mandatory respondent Neimenggu Fufeng 
Biotechnologies Co., Ltd. (aka Inner Mongolia Fufeng Biotechnologies 
Co., Ltd.)/Shandong Fufeng Fermentation Co., Ltd./Xinjiang Fufeng 
Biotechnologies Co., Ltd. (``Fufeng'') did not make sales of subject 
merchandise in the United States at prices below normal value (``NV'') 
during the POR; applied total adverse facts available to A.H.A. 
International Co., Ltd. and Deosen Biochemical Ltd./Deosen Biochemical 
(Ordos) Ltd. (``Deosen''); granted separate rates to CP Kelco 
(Shandong) Biological Company Limited and Shanghai Smart Chemicals Co., 
Ltd.; included Hebei Xinhe Biochemical Co., Ltd. as part of the PRC-
wide entity; and determined that three companies, Meihua Group 
International Trading (Hong Kong) Limited; Langfang Meihua Bio-
Technology Co., Ltd.; and Xinjiang Meihua Amino Acid Co., Ltd., had no 
reviewable U.S. sales during the POR. Additionally, the Department is 
preliminarily rescinding this administrative review with respect to 
Inner Mongolia Jianlong Biochemical Co., Ltd (``Inner Mongolia 
Jianlong''). If these preliminary results are adopted in the final 
results of this review, we will instruct U.S. Customs and Border 
Protection (``CBP'') to assess antidumping duties on all appropriate 
entries. Interested parties are invited to comment on these preliminary 
results.

DATES: Effective August 15, 2016.

FOR FURTHER INFORMATION CONTACT: Erin Kearney or Andrew Martinez, AD/
CVD Operations, Office IV, Enforcement & Compliance, International 
Trade Administration, Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0167 or (202) 482-3627, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the notice of initiation of this 
administrative review on September 2, 2015.\1\ For a complete 
description of the events that followed the initiation of this 
administrative review, see the Preliminary Decision Memorandum hereby 
adopted by this notice.\2\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 80 FR 53106 (September 2, 2015) 
(``Initiation Notice'').
    \2\ See ``Decision Memorandum for the Preliminary Results of the 
Second Antidumping Duty Administrative Review of Xanthan Gum from 
the People's Republic of China,'' (``Preliminary Decision 
Memorandum''), dated concurrently with this notice.
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Scope of the Order

    The scope of the order covers dry xanthan gum, whether or not 
coated or blended with other products. Further, 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 this 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.\3\
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    \3\ For a complete description of the scope of the order, see 
Preliminary Decision Memorandum.
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Tolling of Deadline of Preliminary Results of Review

    As explained in the memorandum from the Acting Assistant Secretary 
for Enforcement and Compliance, the Department has exercised its 
discretion to toll all administrative deadlines due to the recent 
closure of the Federal Government. All deadlines in this segment of the 
proceeding have been extended by four business days.\4\ As a result, 
the revised deadline for the preliminary results of this review was 
April 7, 2016. On April 4, 2016, the Department extended the deadline 
for the preliminary results to August 5, 2016.
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    \4\ See Memorandum to the Record from Ron Lorentzen, Acting 
Assistant Secretary for Enforcement & Compliance, ``Tolling of 
Administrative Deadlines As a Result of the Government Closure 
During Snowstorm Jonas'' (January 27, 2016).
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Methodology

    The Department is conducting this review in accordance with section 
751(a)(1)(B) of the Tariff Act of 1930, as amended (the ``Act''). The 
Department calculated export prices and constructed export prices, as 
appropriate, in accordance with section 772 of the Act. Given that the 
PRC is a non-market economy (``NME'') country, within the meaning of 
section 771(18) of the Act, the Department calculated NV in accordance 
with section 773(c) of the Act.
    For a full description of the methodology underlying the 
preliminary results of this review, see the Preliminary Decision 
Memorandum, which is hereby adopted by this notice.\5\ The Preliminary 
Decision Memorandum is a public document and is made available to the 
public 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 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 found at https://enforcement.trade.gov/frn/. The signed and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \5\ A list of topics discussed in the Preliminary Decision 
Memorandum is provided in the Appendix to this notice.
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Preliminary Determination of No Shipments

    Based on an analysis of CBP information and timely certifications 
of no shipments during the POR, the Department preliminarily determines 
that Meihua Group International Trading (Hong Kong) Limited, Langfang 
Meihua Bio-Technology Co., Ltd., and Xinjiang Meihua Amino Acid Co., 
Ltd. had no shipments and, therefore, no reviewable transactions during 
the POR. For additional information regarding this determination, see 
the Preliminary Decision Memorandum.
    Consistent with our practice in NME cases, the Department is not 
rescinding this administrative review for these companies, but intends 
to complete the review and issue appropriate instructions to CBP based 
on the final results of the review.\6\
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    \6\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694, 65694-95 (October 24, 2011) and 
the ``Assessment Rates'' section, below.
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Preliminary Partial Rescission of Antidumping Duty Administrative 
Review

    Inner Mongolia Jianlong's one sale during the POR is subject to 
both an

[[Page 54046]]

ongoing new shipper review and this administrative review. The 
Department preliminarily rescinded the new shipper review based on a 
finding that the sale was not a bona fide sale.\7\ Because the sale 
subject to this administrative review is the same sale preliminarily 
found to be a non-bona fide sale in the new shipper review, and there 
are no other reviewable sales by Inner Mongolia Jianlong during the 
POR, we are preliminarily rescinding this review with respect to Inner 
Mongolia Jianlong. For additional information regarding this 
determination, see the Preliminary Decision Memorandum.
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    \7\ See Memorandum to the File, ``Inner Mongolia Jianlong 
Biochemical Co., Ltd.'s New Shipper Review Analysis,'' dated 
concurrently with this notice.
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Preliminary Results of Review

    Based on record evidence, the Department preliminarily continues to 
treat Deosen Biochemical Ltd. and Deosen Biochemical (Ordos) Ltd. as a 
single entity for AD purposes. Furthermore, based on record evidence, 
the Department preliminarily finds that Neimenggu Fufeng 
Biotechnologies Co., Ltd. (aka Inner Mongolia Fufeng Biotechnologies 
Co., Ltd.), Shandong Fufeng Fermentation Co. Ltd., and Xinjiang Fufeng 
Biotechnologies Co., Ltd. are affiliated and should be treated as a 
single entity for AD purposes. For additional information, see the 
Preliminary Decision Memorandum.
    In addition to the mandatory respondents, we preliminarily 
determine that CP Kelco (Shandong) Biological Company Limited and 
Shanghai Smart Chemicals Co., Ltd. also demonstrated their eligibility 
for a separate rate in this administrative review. Consistent with the 
Department's practice, we preliminarily assigned these companies a rate 
equal to the simple average of the weighted-average dumping margins 
assigned to the mandatory respondents in this review.\8\
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    \8\ See Preliminary Decision Memorandum. Because only two 
weighted-average dumping margins were assigned to the individually 
examined respondents for these preliminary results, using a weighted 
average of these two rates risks disclosure of business proprietary 
information. Therefore we calculated a simple average of the rates 
assigned to Fufeng and Deosen.
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    Because Hebei Xinhe Biochemical Co. Ltd. did not submit a separate 
rate application or separate rate certification, or make a claim that 
it had no exports, sales, or entries of subject merchandise during the 
POR by the deadline established in the Initiation Notice, we 
preliminarily find that it failed to establish its entitlement to a 
separate rate and that it, therefore, remains a part of the PRC-wide 
entity.\9\ The rate previously established for the PRC-wide entity is 
154.07 percent. This rate is not under review.\10\
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    \9\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 79 FR 51548, 51549 (August 29, 2014) (``All 
firms listed below that wish to qualify for separate rate status in 
the administrative reviews involving NME countries must complete, as 
appropriate, either a separate rate application or certification. . 
.'').
    \10\ See Preliminary Decision Memorandum. Pursuant to the 
Department's change in practice, the Department no longer considers 
the NME entity as an exporter conditionally subject to 
administrative reviews. See Antidumping Proceedings: Announcement of 
Change in Department Practice for Respondent Selection in 
Antidumping Duty Proceedings and Conditional Review of the Nonmarket 
Economy Entity in NME Antidumping Duty Proceedings, 78 FR 65963, 
65970 (November 4, 2013). Under this practice, the NME entity will 
not be under review unless a party specifically requests, or the 
Department self-initiates, a review of the entity. Because no party 
requested a review of the entity, the entity is not under review and 
the entity's rate is not subject to change.
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    Finally, we preliminarily determined that Deosen and A.H.A. 
International Co., Ltd. did not cooperate to the best of their ability 
in this administrative review, and as a result, we have based their 
dumping margins on adverse facts available for these preliminary 
results.\11\
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    \11\ See Preliminary Decision Memorandum.
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    The Department preliminarily determines that the following 
weighted-average dumping margins exist for the POR:

 
------------------------------------------------------------------------
                                                       Weighted-average
                      Exporter                          dumping margin
                                                           (percent)
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Neimenggu Fufeng Biotechnologies Co., Ltd. (aka                     0.00
 Inner Mongolia Fufeng Biotechnologies Co., Ltd.)/
 Shandong Fufeng Fermentation Co., Ltd./Xinjiang
 Fufeng Biotechnologies Co., Ltd....................
Deosen Biochemical Ltd./Deosen Biochemical (Ordos)                154.07
 Ltd................................................
A.H.A. International Co., Ltd.......................              154.07
CP Kelco (Shandong) Biological Company Limited......               77.04
Shanghai Smart Chemicals Co., Ltd...................               77.04
------------------------------------------------------------------------

Disclosure and Public Comment

    The Department intends to disclose to parties the calculations 
performed for these preliminary results within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). 
Interested parties may submit case briefs no later than 30 days after 
the date of publication of these preliminary results of review.\12\ 
Rebuttals to case briefs may be filed no later than five days after 
case briefs are filed, and all rebuttal comments must be limited to 
comments raised in the case briefs.\13\
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    \12\ See 19 CFR 351.309(c)(1)(ii).
    \13\ See 19 CFR 351.309(d).
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    Any interested party may request a hearing within 30 days of 
publication of this notice.\14\ Hearing requests should contain the 
following information: (1) The party's name, address, and telephone 
number; (2) the number of participants; and (3) a list of the issues to 
be discussed. Oral presentations will be limited to issues raised in 
the briefs. If a request for a hearing is made, parties will be 
notified of the time and date for the hearing to be held at the U.S. 
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 
20230.\15\
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    \14\ See 19 CFR 351.310(c).
    \15\ See 19 CFR 351.310(d).
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    Unless otherwise extended, the Department intends to issue the 
final results of this administrative review, which will include the 
results of its analysis of issues raised in the case briefs, within 120 
days of publication of these preliminary results, pursuant to section 
751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and CBP shall assess, antidumping duties on all appropriate entries 
covered by this review.\16\ The Department intends to issue appropriate 
assessment instructions to CBP 15 days after the

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publication of the final results of this review.
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    \16\ See 19 CFR 351.212(b)(1).
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    For each individually examined respondent in this review whose 
calculated weighted-average dumping margin in the final results of 
review is above de minimis (i.e., greater than or equal to 0.5 
percent), the Department intends to calculate importer- (or customer) 
specific assessment rates, in accordance with 19 CFR 351.212(b)(1).\17\ 
Where the respondent reported reliable entered values, the Department 
intends to calculate importer- (or customer) specific ad valorem rates 
by aggregating the dumping margins calculated for all U.S. sales to the 
importer (or customer) and dividing this amount by the total entered 
value of the sales to the importer (or customer).\18\ Where the 
Department calculates an importer- (or customer) specific weighted-
average dumping margin by dividing the total amount of dumping for 
reviewed sales to the importer (or customer) by the total sales 
quantity associated with those transactions, the Department will direct 
CBP to assess importer- (or customer) specific assessment rates based 
on the resulting per-unit rates.\19\ We will instruct CBP to assess 
antidumping duties on all appropriate entries covered by this review 
when the importer-specific assessment rate is above de minimis. Where 
either the respondent's weighted average dumping margin is zero or de 
minimis, or an importer (or customer-) specific ad valorem or per-unit 
rate is zero or de minimis, the Department will instruct CBP to 
liquidate appropriate entries without regard to antidumping duties.\20\ 
For entries that were not reported in the U.S. sales database submitted 
by a company individually examined during this review, and any 
suspended entries that entered under an exporter's case number however 
the Department determined that the exporter had no shipments of subject 
merchandise, the Department will instruct CBP to liquidate such entries 
at the PRC-wide rate.\21\
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    \17\ See Antidumping Proceedings: Calculation of the Weighted 
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101 (February 14, 2012) 
(``Final Modification'').
    \18\ See 19 CFR 351.212(b)(1).
    \19\ Id.
    \20\ See Final Modification at 8103.
    \21\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694 (October 24, 2011), for a full 
discussion of this practice.
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    In accordance with section 751(a)(2)(C) of the Act, the final 
results of this review shall be the basis for the assessment of 
antidumping duties on entries of merchandise covered by the final 
results of this review and for future deposits of estimated duties, 
where applicable.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise from the PRC entered, or withdrawn 
from warehouse, for consumption on or after the publication date, as 
provided 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 the cash deposit rate of zero will 
be established for that company); (2) for previously investigated or 
reviewed PRC and non-PRC exporters 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 PRC 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 PRC-wide 
entity, which is 154.07 percent; and (4) for all non-PRC exporters of 
subject merchandise that have not received their own rate, the cash 
deposit rate will be the rate applicable to the PRC exporter(s) that 
supplied that non-PRC 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)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this POR. Failure to comply with this 
requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213.

    Dated: August 5, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

1. Summary
2. Background
3. Scope of the Order
4. Selection of Respondents
5. Preliminary Determination of No Shipments
6. Preliminary Partial Rescission of Antidumping Duty Administrative 
Review
7. Application of Adverse Facts Available and Selection of Adverse 
Facts Available Rate
8. Single Entity Treatment
9. Discussion of Methodology
    a. Non-Market Economy Country
    b. Separate Rates
    c. Surrogate Country
    d. Date of Sale
    e. Comparisons to Normal Value
    f. U.S. Price
    g. Normal Value
    h. Currency Conversion
10. Recommendation

[FR Doc. 2016-19410 Filed 8-12-16; 8:45 am]
 BILLING CODE 3510-DS-P