Sodium Gluconate, Gluconic Acid and Derivative Products From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination, 23888-23890 [2018-10566]
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Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices
occurred and the subsequent assessment
of doubled antidumping duties.
Administrative Protective Order
This notice also serves as a reminder
to parties subject to administrative
protective order (APO) of their
responsibility concerning the return or
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3), which
continues to govern business
proprietary information in this segment
of the proceeding. Timely written
notification of the return/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.
We are issuing and publishing this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Act and 19
CFR 351.213(h).
Dated: May 17, 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
List of Topics Discussed in the Issues and
Decisions Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Discussion of the Issues
Comment 1: Use of Prolamsa’s Revised
Databases
Comment 2: Revision of POR in Prolamsa’s
Margin Program
Comment 3: Proper CONNUMs to Use in
Prolamsa’s Margin Program
Comment 4: Prolamsa’s Warehousing
Expenses
Comment 5: AFA Rate for Maquilacero
Comment 6: Maquilacero Liquidation
Instructions
V. Recommendation
[FR Doc. 2018–11031 Filed 5–22–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
daltland on DSKBBV9HB2PROD with NOTICES
[C–570–072]
Sodium Gluconate, Gluconic Acid and
Derivative Products From the People’s
Republic of China: Preliminary
Affirmative Countervailing Duty
Determination and Alignment of Final
Determination With Final Antidumping
Duty Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
AGENCY:
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Jkt 244001
The Department of Commerce
(Commerce) preliminarily determines
that countervailable subsidies are being
provided to producers and exporters of
sodium gluconate, gluconic acid and
derivative products (GNA products)
from the People’s Republic of China
(China). The period of investigation is
January 1, 2016, through December 31,
2016. Interested parties are invited to
comment on this preliminary
determination.
DATES: Applicable May 23, 2018.
FOR FURTHER INFORMATION CONTACT:
Robert Galantucci or Jonathan Hill, AD/
CVD Operations, Office IV, Enforcement
and Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
202–482–2923 or 202–482–3518,
respectively.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
This preliminary determination is
made in accordance with section 703(b)
of the Tariff Act of 1930, as amended
(the Act). Commerce published the
notice of initiation of this investigation
on January 4, 2018.1 Commerce
exercised its discretion to toll all
deadlines affected by the closure of the
Federal Government from January 20
through January 22, 2018.2 On February
7, 2018, Commerce published its
postponement of the deadline for the
preliminary determination of the
investigation for the full 130 days
permitted under section 703(c)(1)(A) of
the Act and 19 CFR 351.205(b)(2) until
May 2, 2018.3
For a complete description of the
events that followed the initiation of
this investigation, see the Preliminary
Decision Memorandum.4 A list of topics
discussed in the Preliminary Decision
Memorandum is included as Appendix
II to this notice. The Preliminary
1 See Sodium Gluconate, Gluconic Acid, and
Derivative Products From the People’s Republic of
China: Initiation of Countervailing Duty
Investigation, 83 FR 499 (January 4, 2018)
(Initiation Notice).
2 See Memorandum, ‘‘Deadlines Affected by the
Shutdown of the Federal Government,’’ dated
January 23, 2018. (Tolling Memorandum). All
deadlines in this segment of the proceeding have
been extended by 3 days.
3 See Sodium Gluconate, Gluconic Acid and
Derivative Products From the People’s Republic of
China: Postponement of Preliminary Determination
in the Countervailing Duty Investigation, 83 FR
5401 (February 7, 2018).
4 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Affirmative Determination:
Countervailing Duty Investigation of Sodium
Gluconate, Gluconic Acid and Derivative Products
from the People’s Republic of China,’’ dated
concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
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Sfmt 4703
Decision Memorandum is a public
document and is on file electronically
via Enforcement and Compliance’s
Antidumping (AD) and Countervailing
Duty (CVD) Centralized Electronic
Service System (ACCESS). ACCESS is
available to registered users at 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 accessed
directly at https://enforcement.trade.gov/
frn/. The signed and electronic versions
of the Preliminary Decision
Memorandum are identical in content.
Scope of the Investigation
The products covered by this
investigation are sodium gluconate,
gluconic acid and derivative products
from China. For a complete description
of the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the preamble to
Commerce’s regulations, we set aside a
period of time in our Initiation Notice
for parties to raise issues regarding
product coverage, and encouraged all
parties to submit comments within 20
calendar days of the signature date of
that notice. We received several
comments concerning the scope of the
AD and CVD investigations of GNA
products from China.
We are currently evaluating the scope
comments filed by interested parties.
We intend to issue our preliminary
decision regarding the scope of the AD
and CVD investigations in the
preliminary determination of the
companion AD investigation, which is
due for signature on July 2, 2018. We
will incorporate the scope decisions
from the AD investigation into the scope
of the final CVD determination after
considering any relevant comments
submitted in case and rebuttal briefs.
Methodology
Commerce is conducting this
investigation in accordance with section
701 of the Act. For each of the subsidy
programs found countervailable, We
preliminarily determine that there is a
subsidy, i.e., a financial contribution by
an ‘‘authority’’ that confers a benefit on
the recipient, and that the subsidy is
specific.5 For a full description of the
methodology underlying our
5 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
E:\FR\FM\23MYN1.SGM
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Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices
preliminary conclusions, see the
Preliminary Decision Memorandum.
We note that, in making these
findings, we relied on facts otherwise
available. Additionally, because we find
that the mandatory respondents did not
act to the best of their ability to respond
to our requests for information, and
therefore impeded this investigation, we
drew an adverse inference where
appropriate in selecting from among the
facts otherwise available.6
Alignment
As noted in the Preliminary Decision
Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the
final CVD determination in this
investigation with the final
determination in the companion AD
investigation of GNA products from
China, based on a request made by PMP
Fermentation Products, Inc. (the
petitioner).7 Consequently, the final
CVD determination will be issued on
the same date as the final AD
determination, which is currently
scheduled to be issued no later than
September 17, 2018.8
Adverse Facts Available
In accordance with sections 776(a)(1),
776(a)(2), and 776(b) of the Act, we
applied facts otherwise available with
an adverse inference to assign
countervailable subsidy rates to noncooperative mandatory respondents
Qingdao Dongxiao Enterprise Co., Ltd.
(Qingdao Dongxiao), Shandong Fuyang
Biotechnology Co. (Fuyang), Shandong
Kaison Biochemical Co Ltd (Kaison),
and Tongxiang Hongyu Chemical Co.,
Ltd. (Hongyu Chemical). Hongyu
Chemical, Kaison and Qingdao
Dongxiao did not respond to
Commerce’s request for necessary
information, and therefore impeded this
investigation. Accordingly, we drew an
adverse inference where appropriate in
selecting from among the facts
otherwise available.
With respect to Fuyang, we find that
certain of Fuyang’s submissions remain
incomplete, or conflict with other
record evidence. We find the use of facts
available is appropriate because Fuyang
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6 See
sections 776(a) and (b) of the Act.
7 See Letter from the petitioner, ‘‘Countervailing
Duty Investigation of Sodium Gluconate, Gluconic
Acid and Derivative Products From the People’s
Republic of China: PMP’s Request to Align the
Countervailing Duty Final Determination with the
Companion Antidumping Final Determination,’’
dated April 12, 2018.
8 See Sodium Gluconate, Gluconic Acid, and
Derivative Products From the People’s Republic of
China: Postponement of Preliminary Determination
in the Less-Than-Fair-Value Investigation, 83 FR
19050 (May 1, 2018).
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Jkt 244001
did not provide Commerce with
necessary information in the form and
manner requested and otherwise
impeded the proceeding. Furthermore,
we find that Fuyang failed to act to the
best of its ability in providing
Commerce with the requested
information, thereby warranting the
application of an adverse inference. For
further information, see ‘‘Use of Facts
Otherwise Available and Adverse
Inferences’’ in the Preliminary Decision
Memorandum.9
All-Others Rate
With respect to the all-others rate,
section 705(c)(5)(A) of the Act provides
that if the countervailable subsidy rates
established for all exporters and
producers individually investigated are
determined entirely in accordance with
section 776 of the Act, Commerce may
use any reasonable method to establish
an all-others rate for exporters and
producers not individually investigated.
In this case, as noted above, the rates
assigned to Fuyang, Hongyu Chemical,
Kaison and Qingdao Dongxiao are based
entirely on facts otherwise available,
with an adverse inference, pursuant to
section 776 of the Act. There is no other
information on the record with which to
determine an all-others rate.
Accordingly, pursuant to section
705(c)(5)(A)(ii) of the Act, we are using
‘‘any reasonable method’’ to establish
the all-others rate, and have established
the all-others rate by applying the
countervailable subsidy rates assigned
to mandatory respondents Fuyang,
Hongyu Chemical, Kaison and Qingdao
Dongxiao.
Commerce summarizes its
preliminary countervailable subsidy
rates in the table below:
Producer/exporter
Subsidy
rate
(percent)
Qingdao Dongxiao Enterprise
Co., Ltd ...................................
Shandong Fuyang Biotechnology
Co ............................................
Shandong Kaison Biochemical
Co Ltd .....................................
Tongxiang Hongyu Chemical
Co., Ltd ...................................
All-Others ....................................
194.67
194.67
194.67
194.67
194.67
Suspension of Liquidation
In accordance with section
703(d)(1)(B) and (d)(2) of the Act,
9 Section 782(i) of the Act requires Commerce to
verify a respondent’s data as part of an
investigation. However, because we are
preliminarily applying adverse facts available,
pursuant to sections 776(a) and (b) of the Act, to
each of the respondents, we do not intend to
conduct verification in this investigation.
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Commerce will direct U.S. Customs and
Border Protection (CBP) to suspend
liquidation of all entries of GNA
products from China as described in the
scope of the investigation entered, or
withdrawn from warehouse, for
consumption on or after the date of
publication of this notice in the Federal
Register. Further, pursuant to 19 CFR
351.205(d), Commerce will instruct CBP
to require a cash deposit equal to the
rates indicated above.
Public Comment
Interested parties may submit case
and rebuttal briefs, as well as request a
hearing. Case briefs may be submitted
no later than 30 days after the
publication of this preliminary
determination in the Federal Register,
and rebuttal briefs, limited to issues
raised in the case briefs, may be
submitted no later than five days after
the deadline for case briefs. Pursuant to
19 CFR 351.309(c)(2) and (d)(2), parties
who submit case briefs or rebuttal briefs
in this investigation are encouraged to
submit with each argument: (1) A
statement of the issue; (2) a brief
summary of the argument; and (3) a
table of authorities.
Pursuant to 19 CFR 351.310(c),
interested parties who wish to request a
hearing, limited to issues raised in the
case and rebuttal briefs, must submit a
written request to the Assistant
Secretary for Enforcement and
Compliance, U.S. Department of
Commerce, within 30 days after the date
of publication of this notice. Requests
should contain the party’s name,
address, and telephone number, the
number of participants, whether any
participant is a foreign national, and a
list of the issues to be discussed. If a
request for a hearing is made, Commerce
intends to hold the hearing at the U.S.
Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230, at a time and date to be
determined. Parties should confirm by
telephone the date, time, and location of
the hearing two days before the
scheduled date.
International Trade Commission
Notification
In accordance with section 703(f) of
the Act, Commerce will notify the
International Trade Commission (ITC) of
its determination. If Commerce’s final
determination is affirmative, the ITC
will make its final determination before
the later of 120 days after the date of this
preliminary determination or 45 days
after Commerce’s final determination.
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Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices
Notification to Interested Parties
This determination is issued and
published pursuant to sections 703(f)
and 777(i) of the Act and 19 CFR
351.205(c).
Dated: May 2, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations,
performing the non-exclusive functions and
duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation covers all
grades of sodium gluconate, gluconic acid,
liquid gluconate, and glucono delta lactone
(GDL) (collectively, GNA products),
regardless of physical form (including, but
not limited to substrates; solutions; dry
granular form or powders, regardless of
particle size; or as a slurry). The scope also
includes GNA products that have been
blended or are in solution with other
product(s) where the resulting mix contains
35 percent or more of sodium gluconate,
gluconic acid, liquid gluconate, and/or GDL
by dry weight.
Sodium gluconate has a molecular formula
of NaC6H11O7. Sodium gluconate has a
Chemical Abstract Service (CAS) registry
number of 527–07–1, and can also be called
‘‘sodium salt of gluconic acid’’ and/or
sodium 2, 3, 4, 5, 6 pentahydroxyhexanoate.
Gluconic acid has a molecular formula of
C6H12O7. Gluconic acid has a CAS registry
number of 526–95–4, and can also be called
2, 3, 4, 5, 6 pentahydroxycaproic acid. Liquid
gluconate is a blend consisting only of
gluconic acid and sodium gluconate in an
aqueous solution. Liquid gluconate has CAS
registry numbers of 527–07–1, 526–95–4, and
7732–18–5, and can also be called 2, 3, 4, 5,
6-pentahydroxycaproic acid-hexanoate. GDL
has a molecular formula of C6H10O6. GDL has
a CAS registry number of 90–80–2, and can
also be called d-glucono-1,5-lactone.
The merchandise covered by the scope of
this investigation is currently classified in
the Harmonized Tariff Schedule of the
United States (HTSUS) under subheadings
2918.16.1000, 2918.16.5010, and
2932.20.5020. Merchandise covered by the
scope may also enter under HTSUS
subheadings 2918.16.5050, 3824.99.2890,
and 3824.99.9295. Although the HTSUS
subheadings and CAS registry numbers are
provided for convenience and customs
purposes, the written description of the
merchandise is dispositive.
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Appendix II
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. New Subsidy Allegation
VI. Alignment
VII. Injury Test
VIII. Application of the CVD Law to Imports
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from China
IX. Attribution of Subsidies
X. Use of Facts Otherwise Available and
Adverse Inferences
XI. Calculation of the All-Others Rate
XII. ITC Notification
XIII. Recommendation
[FR Doc. 2018–10566 Filed 5–22–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–922]
Raw Flexible Magnets From the
People’s Republic of China:
Rescission of Antidumping Duty
Administrative Review; 2016–2017
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) is rescinding its
administrative review of raw flexible
magnets from the People’s Republic of
China (China) based on the timely
withdrawal of all requests for review,
for the period of review (POR)
September 1, 2016, through August 31,
2017.
DATES: Applicable May 23, 2018.
FOR FURTHER INFORMATION CONTACT:
Ariela Garvett or Maliha Khan, 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) 482–3609 and (202) 482–0895,
respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On September 1, 2017, Commerce
published in the Federal Register a
notice of ‘‘Opportunity to Request
Administrative Review’’ of the
antidumping duty order on raw flexible
magnets from China for the above POR.1
On October 2, 2017, in accordance with
section 751(a) of the Tariff Act of 1930,
as amended (the Act), and 19 CFR
351.213(b), Commerce received a timely
request from Qwik Picz Photo Booth,
LLC (QPP) to conduct an administrative
review.2
Pursuant to this request, and in
accordance with 19 CFR
1 See Antidumping or Countervailing Duty Order,
Finding, or Suspended Investigation; Opportunity
to Request Administrative Review, 82 FR 41595
(September 1, 2017).
2 See Letter from QPP, ‘‘Raw Flexible Magnets
from the PRC; A–570–922; Request for Review by
Qwik Picz Photo Booth, LLC,’’ dated October 2,
2017.
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351.221(c)(1)(i), on November 13, 2017,
Commerce published a notice of
initiation of an administrative review of
the antidumping duty order on raw
flexible magnets from China.3 This
administrative review covers QPP’s
suppliers, Som International Limited
and Wenzhou Haibao Printing Co., LTD,
during the period September 1, 2016,
through August 31, 2017. On January
16, 2018, QPP withdrew its request for
an administrative review.4
Rescission of Review
Pursuant to 19 CFR 351.213(d)(1),
Commerce will rescind an
administrative review if the party that
requested the review withdraws its
request within 90 days of the
publication date of the notice of
initiation of the requested review. QPP
withdrew its review request with
respect to Som International Limited
and Wenzhou Haibao Printing Co., LTD,
before the 90-day deadline, and no other
party requested an administrative
review of the antidumping duty order.
Therefore, in accordance with 19 CFR
351.213(d)(1), we are rescinding this
administrative review in its entirety.
Assessment
Commerce will instruct U.S. Customs
and Border Protection (CBP) to assess
antidumping duties on all appropriate
entries of raw flexible magnets from
China. Antidumping duties shall be
assessed at rates equal to the cash
deposit of estimated antidumping duties
required at the time of entry, or
withdrawal from warehouse, for
consumption in accordance with 19
CFR 351.212(c)(1)(i). Commerce intends
to issue appropriate assessment
instructions to CBP 15 days after the
date of publication of this notice in the
Federal Register.
Notification to Importers
This notice also serves as a final
reminder to importers for whom this
review is being rescinded 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
Secretary’s presumption that
reimbursement of the antidumping
duties occurred and the subsequent
3 See Initiation of Antidumping and
Countervailing Duty Administrative Reviews, 82 FR
52268 (November 13, 2017) (Initiation Notice).
4 See Letter from QPP, ‘‘Raw Flexible Magnets
from the PRC; A–570–922; Withdraw Request for
Review by Qwik Picz Photo Booth, LLC,’’ dated
January 16, 2018.
E:\FR\FM\23MYN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 100 (Wednesday, May 23, 2018)]
[Notices]
[Pages 23888-23890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10566]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-072]
Sodium Gluconate, Gluconic Acid and Derivative Products From the
People's Republic of China: Preliminary Affirmative Countervailing Duty
Determination and Alignment of Final Determination With Final
Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of sodium gluconate, gluconic acid and derivative products
(GNA products) from the People's Republic of China (China). The period
of investigation is January 1, 2016, through December 31, 2016.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable May 23, 2018.
FOR FURTHER INFORMATION CONTACT: Robert Galantucci or Jonathan Hill,
AD/CVD Operations, Office IV, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: 202-482-2923 or 202-482-
3518, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on January 4,
2018.\1\ Commerce exercised its discretion to toll all deadlines
affected by the closure of the Federal Government from January 20
through January 22, 2018.\2\ On February 7, 2018, Commerce published
its postponement of the deadline for the preliminary determination of
the investigation for the full 130 days permitted under section
703(c)(1)(A) of the Act and 19 CFR 351.205(b)(2) until May 2, 2018.\3\
---------------------------------------------------------------------------
\1\ See Sodium Gluconate, Gluconic Acid, and Derivative Products
From the People's Republic of China: Initiation of Countervailing
Duty Investigation, 83 FR 499 (January 4, 2018) (Initiation Notice).
\2\ See Memorandum, ``Deadlines Affected by the Shutdown of the
Federal Government,'' dated January 23, 2018. (Tolling Memorandum).
All deadlines in this segment of the proceeding have been extended
by 3 days.
\3\ See Sodium Gluconate, Gluconic Acid and Derivative Products
From the People's Republic of China: Postponement of Preliminary
Determination in the Countervailing Duty Investigation, 83 FR 5401
(February 7, 2018).
---------------------------------------------------------------------------
For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\4\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
via Enforcement and Compliance's Antidumping (AD) and Countervailing
Duty (CVD) Centralized Electronic Service System (ACCESS). ACCESS is
available to registered users at 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 accessed directly at
https://enforcement.trade.gov/frn/. The signed and electronic versions
of the Preliminary Decision Memorandum are identical in content.
---------------------------------------------------------------------------
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination: Countervailing Duty Investigation of
Sodium Gluconate, Gluconic Acid and Derivative Products from the
People's Republic of China,'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are sodium gluconate,
gluconic acid and derivative products from China. For a complete
description of the scope of this investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations, we set
aside a period of time in our Initiation Notice for parties to raise
issues regarding product coverage, and encouraged all parties to submit
comments within 20 calendar days of the signature date of that notice.
We received several comments concerning the scope of the AD and CVD
investigations of GNA products from China.
We are currently evaluating the scope comments filed by interested
parties. We intend to issue our preliminary decision regarding the
scope of the AD and CVD investigations in the preliminary determination
of the companion AD investigation, which is due for signature on July
2, 2018. We will incorporate the scope decisions from the AD
investigation into the scope of the final CVD determination after
considering any relevant comments submitted in case and rebuttal
briefs.
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, We preliminarily determine that there is a subsidy,
i.e., a financial contribution by an ``authority'' that confers a
benefit on the recipient, and that the subsidy is specific.\5\ For a
full description of the methodology underlying our
[[Page 23889]]
preliminary conclusions, see the Preliminary Decision Memorandum.
---------------------------------------------------------------------------
\5\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------
We note that, in making these findings, we relied on facts
otherwise available. Additionally, because we find that the mandatory
respondents did not act to the best of their ability to respond to our
requests for information, and therefore impeded this investigation, we
drew an adverse inference where appropriate in selecting from among the
facts otherwise available.\6\
---------------------------------------------------------------------------
\6\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigation of GNA products
from China, based on a request made by PMP Fermentation Products, Inc.
(the petitioner).\7\ Consequently, the final CVD determination will be
issued on the same date as the final AD determination, which is
currently scheduled to be issued no later than September 17, 2018.\8\
---------------------------------------------------------------------------
\7\ See Letter from the petitioner, ``Countervailing Duty
Investigation of Sodium Gluconate, Gluconic Acid and Derivative
Products From the People's Republic of China: PMP's Request to Align
the Countervailing Duty Final Determination with the Companion
Antidumping Final Determination,'' dated April 12, 2018.
\8\ See Sodium Gluconate, Gluconic Acid, and Derivative Products
From the People's Republic of China: Postponement of Preliminary
Determination in the Less-Than-Fair-Value Investigation, 83 FR 19050
(May 1, 2018).
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Adverse Facts Available
In accordance with sections 776(a)(1), 776(a)(2), and 776(b) of the
Act, we applied facts otherwise available with an adverse inference to
assign countervailable subsidy rates to non-cooperative mandatory
respondents Qingdao Dongxiao Enterprise Co., Ltd. (Qingdao Dongxiao),
Shandong Fuyang Biotechnology Co. (Fuyang), Shandong Kaison Biochemical
Co Ltd (Kaison), and Tongxiang Hongyu Chemical Co., Ltd. (Hongyu
Chemical). Hongyu Chemical, Kaison and Qingdao Dongxiao did not respond
to Commerce's request for necessary information, and therefore impeded
this investigation. Accordingly, we drew an adverse inference where
appropriate in selecting from among the facts otherwise available.
With respect to Fuyang, we find that certain of Fuyang's
submissions remain incomplete, or conflict with other record evidence.
We find the use of facts available is appropriate because Fuyang did
not provide Commerce with necessary information in the form and manner
requested and otherwise impeded the proceeding. Furthermore, we find
that Fuyang failed to act to the best of its ability in providing
Commerce with the requested information, thereby warranting the
application of an adverse inference. For further information, see ``Use
of Facts Otherwise Available and Adverse Inferences'' in the
Preliminary Decision Memorandum.\9\
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\9\ Section 782(i) of the Act requires Commerce to verify a
respondent's data as part of an investigation. However, because we
are preliminarily applying adverse facts available, pursuant to
sections 776(a) and (b) of the Act, to each of the respondents, we
do not intend to conduct verification in this investigation.
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All-Others Rate
With respect to the all-others rate, section 705(c)(5)(A) of the
Act provides that if the countervailable subsidy rates established for
all exporters and producers individually investigated are determined
entirely in accordance with section 776 of the Act, Commerce may use
any reasonable method to establish an all-others rate for exporters and
producers not individually investigated. In this case, as noted above,
the rates assigned to Fuyang, Hongyu Chemical, Kaison and Qingdao
Dongxiao are based entirely on facts otherwise available, with an
adverse inference, pursuant to section 776 of the Act. There is no
other information on the record with which to determine an all-others
rate. Accordingly, pursuant to section 705(c)(5)(A)(ii) of the Act, we
are using ``any reasonable method'' to establish the all-others rate,
and have established the all-others rate by applying the
countervailable subsidy rates assigned to mandatory respondents Fuyang,
Hongyu Chemical, Kaison and Qingdao Dongxiao.
Commerce summarizes its preliminary countervailable subsidy rates
in the table below:
------------------------------------------------------------------------
Subsidy
Producer/exporter rate
(percent)
------------------------------------------------------------------------
Qingdao Dongxiao Enterprise Co., Ltd........................ 194.67
Shandong Fuyang Biotechnology Co............................ 194.67
Shandong Kaison Biochemical Co Ltd.......................... 194.67
Tongxiang Hongyu Chemical Co., Ltd.......................... 194.67
All-Others.................................................. 194.67
------------------------------------------------------------------------
Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of all entries of GNA products from China as
described in the scope of the investigation entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Public Comment
Interested parties may submit case and rebuttal briefs, as well as
request a hearing. Case briefs may be submitted no later than 30 days
after the publication of this preliminary determination in the Federal
Register, and rebuttal briefs, limited to issues raised in the case
briefs, may be submitted no later than five days after the deadline for
case briefs. Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this investigation are
encouraged to submit with each argument: (1) A statement of the issue;
(2) a brief summary of the argument; and (3) a table of authorities.
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. If
Commerce's final determination is affirmative, the ITC will make its
final determination before the later of 120 days after the date of this
preliminary determination or 45 days after Commerce's final
determination.
[[Page 23890]]
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: May 2, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation covers all grades of sodium
gluconate, gluconic acid, liquid gluconate, and glucono delta
lactone (GDL) (collectively, GNA products), regardless of physical
form (including, but not limited to substrates; solutions; dry
granular form or powders, regardless of particle size; or as a
slurry). The scope also includes GNA products that have been blended
or are in solution with other product(s) where the resulting mix
contains 35 percent or more of sodium gluconate, gluconic acid,
liquid gluconate, and/or GDL by dry weight.
Sodium gluconate has a molecular formula of
NaC6H11O7. Sodium gluconate has a
Chemical Abstract Service (CAS) registry number of 527-07-1, and can
also be called ``sodium salt of gluconic acid'' and/or sodium 2, 3,
4, 5, 6 pentahydroxyhexanoate. Gluconic acid has a molecular formula
of C6H12O7. Gluconic acid has a CAS
registry number of 526-95-4, and can also be called 2, 3, 4, 5, 6
pentahydroxycaproic acid. Liquid gluconate is a blend consisting
only of gluconic acid and sodium gluconate in an aqueous solution.
Liquid gluconate has CAS registry numbers of 527-07-1, 526-95-4, and
7732-18-5, and can also be called 2, 3, 4, 5, 6-pentahydroxycaproic
acid-hexanoate. GDL has a molecular formula of
C6H10O6. GDL has a CAS registry
number of 90-80-2, and can also be called d-glucono-1,5-lactone.
The merchandise covered by the scope of this investigation is
currently classified in the Harmonized Tariff Schedule of the United
States (HTSUS) under subheadings 2918.16.1000, 2918.16.5010, and
2932.20.5020. Merchandise covered by the scope may also enter under
HTSUS subheadings 2918.16.5050, 3824.99.2890, and 3824.99.9295.
Although the HTSUS subheadings and CAS registry numbers are provided
for convenience and customs purposes, the written description of the
merchandise is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. New Subsidy Allegation
VI. Alignment
VII. Injury Test
VIII. Application of the CVD Law to Imports from China
IX. Attribution of Subsidies
X. Use of Facts Otherwise Available and Adverse Inferences
XI. Calculation of the All-Others Rate
XII. ITC Notification
XIII. Recommendation
[FR Doc. 2018-10566 Filed 5-22-18; 8:45 am]
BILLING CODE 3510-DS-P
